'"That doesn't make any sense," replies Matusow [of Microsoft]. "There's no logic to it. Why would you patent something in a space where you know there is prior art? There would be litigation, and you would know you couldn't be successful."'
Three reasons:
1) The US Patent Office does not seem very good with software prior art and appears to turn out software patents at an enormous rate whether they are valid or not.
2) It is important to shareholders that Microsoft gets more patents every year. They have a stated aim that they intend to massively increase their patent portfolio. Every patent counts whether it is a valid patent or not. Almost NO software patents are ever tested in court.
3) Even if your patent is a rubbish patent, the costs for someone to disprove your patent are not insignificant. Most small companies cannot even afford to challenge an obviously bad patent since, in a patent action, each side carries its own costs. They may go bankrupt before they win. If you doubt this then check out the story of the patent for FM radio and how RCA's patent action contributed to the death of Edwin Armstrong, FM radio's inventor.
With those factors working in your favour, why not patent everything in sight? It is more likely to work for you than against you even if your patent is worthless.
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