[rayiner]

Trade secrets you share with other companies are fragile rights. Do you want to invest a ton of money into a company built on a property right that could evaporate at any moment? Re: meaningful advancements, I think MPEG is a decent example, as well as some wireless companies (it's really hard to draw a clean line when it comes to wireless, because a lot of techniques could easily be implemented on a general purpose computer or in an ASIC).

As for RAMBUS, the memory industry is an interesting example. They all work on developing memory technologies, then pool the patents. The patents function to prevent free-riding on the collective effort by any particular company. The wireless industry works similarly (LTE, etc).

I don't mean to argue that the law should protect particular business models. But I think in the abstract, it's useful to be able to bundle up the fruits of some R&D into something that can be the subject of market transactions. I think it's worked amazingly for the semiconductor industry in the model of ARM, for example. The law can provide a mechanism for doing that. I don't think trade secrets are quite it, and I think we're really seeing the limitations of patents for that in the software realm, but I think there needs to be something. Otherwise, it'll be a race to see who can outsource most effectively to China because that's what matters when ideas can't be protected.