Will Kryptiq patent stand in the way of reform?

By | December 23, 2008, 7:06am PST

Summary: Patents may validate a method, but that means other methods must also be available. Patented technology should not be made a standard or you’re raising health care costs for everyone.

Kryptiq logoKryptiq, a Portland company that specializes in electronic communication complying with HIPAA, says it has a patent in how it moves that data.

The patent covers a method for encrypting data on a server so that the data hosting it does not actually have direct access to the decrypted data. This protects the data from interception or from capture by a hacker without the decryption key.

On the surface, not a bad thing. And Kryptiq is highly admired for both its systems and customer wins. It is acquiring rivals and moving forward.

The question is what it does with the patent. If the patent acts as a differentiator, a reason for a hospital group to choose Kryptiq instead of something else, that’s one thing.

If Kryptiq seeks to make its system a standard, that’s something else.

It’s vital that health care IT standards be open, that there be no gatekeepers, nothing to prevent free and open competition among vendors.

Patents may validate a method, but that means other methods must also be available. Patented technology should not be made a standard or you’re raising health care costs for everyone.

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Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years. At the present moment I run only a personal blog in addition to my ZDNet open source blog. DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air. My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist since 1978, and has covered technology since 1982. He launched the Interactive Age Daily, the first daily coverage of the Internet to launch with a magazine, in September 1994.
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RE: Will Kryptiq patent stand in the way of reform?
DaveOz 2nd Apr 2009
Or course it won't stand in the way of reform. If every innovation in health care were free all incentives to innovate would be removed. One reason for reform is to lower costs and electronic medical records does lower costs. If you were a hospital would you pay a dime for a patent to save a dollar ? Who wouldn't ?
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Suppose a patented idea is the best idea?
Anton Philidor 23rd Dec 2008
A patent is government enforcement of a reward for an idea lasting a limited period of time. Having and disseminating good ideas is beneficial to everyone, and paying for a patent is an ordinary part of doing business.

So software patyents are in principle good things.

If a patented idea is providing an ideal solution to a problem, then avoiding the patented idea means reducing the effectiveness of other products.

You might argue that a standards-setting organization shouldn't advocate paying money for standards because that increases the likelihood of manipulating the standards-setting outcome for commercial advantage. As shown vividly by the attempt to enforce ODF.

But do you have any difficulty with a patented idea becoming a de facto standard because every competitor has to include the idea as part of a solution acceptable to the market?
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How are software patents different? Well let's start with another "novel" idea. Large landowners lobby for a new law that allows ownership of the space directly above your land. Hey, why not? It's your land. Now landowners can have dominion over what has been theirs all along. It works for every landowner too so no one is left out. Now, any hot air balloon, small plane, jet airliner, Space Shuttle or geosynchronous satellite can be levied a toll by the landowner directly below. This will generate millions. But only for the largest landowners who have the means to monitor their holdings. Small guys who only have an acre or two are out of luck.

You might argue that the nouveau riche this scheme creates will "invest" their wealth and thereby generate new opportunities. Right. The reason this theft of the public airways will never come to pass hinges on the fundamental differences between land and the space above the land. Patents are for things that occupy space. Computer programs don't occupy space. They are written like stories or recipes. The copyright system works quite well for that kind of "property", unless of course you have something to hide.
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Yes
DanaBlankenhorn 23rd Dec 2008
Unless the patent is made royalty-free it should not
be part of a mandated standard. That's my point.
Or course it won't stand in the way of reform. If every innovation in health care were free all incentives to innovate would be removed. One reason for reform is to lower costs and electronic medical records does lower costs. If you were a hospital would you pay a dime for a patent to save a dollar ? Who wouldn't ?

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