Techdirt is reporting that Jon Dudas, head of the US Patent Office, is lamenting the continuing quality drop in patent submissions. Unfortunately, while this problem is finally getting the attention it deserves, the changes being implemented don’t seem to be offering the correct solution. “When you set up a system that rewards people for not actually innovating in the market (but just speculating on paper), then of course, you’re going to get more of that activity. When you set up a system that rewards those people to huge levels, well out of proportion with their contribution to any product, then of course you’re going to get more of that activity. When you set up a system that gives people a full monopoly right that can be used to set up a toll booth on the natural path of innovation, then of course you’re going to get more of that activity. When the cost of getting a patent is so much smaller than the potential payoff of suing others with it, then of course you’re going to get more of that activity. The fact that Dudas is just noticing this now, while still pushing for changes that’ll make the problem worse is a real problem. Patents were only supposed to be used in special cases. The fact that they’ve become the norm, rather than the exception is a problem, and it doesn’t seem like anyone is seriously looking into fixing that.”

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Filed under: Deals, Industry, Competitive strategy, Viacom (VIA), CBS Corp ‘B’ (CBS)

Viacom’s (NYSE: VIA) Paramount studio, MGM, and Lionsgate (NYSE: LGF) want their own pay Television channel. That means Viacom will cut ties with Showtime, owned by CBS (NYSE: CBS). MGM and Lionsgate will also break with the CBS property. The deal is more interesting since Sumner Redstone is chairman of both CBS and Viacom.

According to The New York Times, “The deal raises the question of how Showtime will fill the feature film portion of its programming slate. Showtime pays more than $100 million a year to the studios to show their movies.”

The new channel could end up ruining Showtime, hurting the CBS financials, and setting up new competition for HBO, but it is a sign of the times. Studios are seeing more and more premium video going to the internet. Some of that content is pirated. It is a cinch the new channel will be a better economic deal for the studios involved. They need the money.

The $100 million budget film used to be uncommon. Now it seems to be the norm. Studios which cannot bring in more revenue though new distribution deals may see their P&L’s falter, so they’re aggressively changing their revenue models, even if it means slicing the throats of old friends.

Douglas A. McIntyre is an editor at 247wallst.com.

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jcasman writes “CNet is covering an announcement from Japanese Linux provider Plat’Home on a low-cost, super tough Linux-based server, now available in the US, that can handle extreme heat and cold. ‘The OpenMicroServer is kind of an “extreme” use server pushing the boundaries for normal, low-cost hardware. In a 624-day endurance test, the OpenMicroServer performed normally under 122 degree F conditions. The unit also employs a power efficient AMD Alchemy (MIPS) CPU and precise part placement based on thermo-fluid analysis to reach semi-hermetic construction.’”

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lisah writes “Several colleges across the country went head-to-head in San Antonio, Texas last weekend at the National Collegiate Cyber Defense Competition to see which team could ideal protect their networks against attacks. In a modern day version of Steal the Flag, the teams duked it out using identical network setups that included a Cisco router and five servers. In the end, Baker College took the champion’s title from last year’s winner, Texas A & M University.”

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conan1989 writes to tell us that a recent report from the Standish Group is claiming that open source is costing the traditional software market somewhere in the neighborhood of $60 billion per year in revenue. “MySQL Marten Mickos has often spoken of “taking a $10 billion market and making it a $3 billion market.” If you consider that open source has taken out $60 billion of traditional software revenues there will be a bloodletting in the proprietary world soon enough. It’s a great time to be an open source company.”

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Filed under: Design, World wide web, Blogging, Web services, web 2.0

Six Apart, the company behind the Moveable Type and TypePad blogging platforms is moving into the services and advertising businesses.

Last week the company purchased Apperceptive, a company with experience developing attractive blogs and web sites. Now anyone can sign up for assistance with their own blog at the Six Apart services page. The company is offering a variety of packages covering such things as pre-launch blog design, and tune-ups for existing sites. Each package will set you back $200, and you’ll need to be using TypePad to take advantage of the services, but there’s also a $200 migration package if you want to switch platforms.

Six Apart is also launching an advertising network that will group similar web sites in order to attract huge name advertisers. Other blog advertising networks like Federated Media do the same thing, but Federated Media typically only accepts huge name blogs. It’ll be interesting to see if Six Apart can open up the process to smaller web sites.

[via TechCrunch]

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Narrative Fallacy writes “The Transportation Security Administration has announced that it’s beginning pilot tests of millimeter wave scanning technology at Los Angeles International Airport (LAX) and John F. Kennedy International Airport (JFK) that grant TSA personnel to see concealed weapons and other items that might be hidden beneath clothes. TSA Administrator Kip Hawley says that that the potentially revealing body scans (YouTube) would not be stored and that 90% of passengers subject to secondary screening opt for a millimeter wave scan over a pat-down. The agency added that security officers viewing the scans would do so remotely, where they will not be able to recognize passengers but will be able to trigger an alarm if needed. The bureau also stated that a blurring algorithm is applied to passengers’ faces in scanned images as an additional privacy protection.”

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Oleg.salenko points out a ComputerWorld story with some bad news for Russia’s wireless users, which starts out “Business travelers to Russia might want to keep their laptops and iPhones well-concealed — not from muggers, necessarily, but from the country’s recently formed regulatory super-agency, Rossvyazokhrankultura (short for the Russian Mass Media, Communications and Cultural Protection Service)… Rossvyazokhrankultura’s interpretation of current law holds that users must register any electronics that use the frequency involved in Wi-Fi communications, said Vladimir Karpov, the deputy director of the agency’s communications monitoring division, according to an English commentary provided by website The Other Russia.”

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I Don’t Believe in Imaginary Property writes “A US District Court in the Southern District of California has found the Copyright Remedy Clarification Act to be unconstitutional. That act is what removes the sovereign immunity for infringement that state workers have in their official capacity, something many argued would jeopardize universities with liability for faculty infringement, not to mention other say agencies. In a rather dense legal ruling (PDF), the Court found that the Clarification Act wasn’t a valid exercise of congressional power under the 14th Amendment. For those of you who have totally no idea what I just said, I recommend either being glad that a small piece of copyright law may soon bite the dust, or hoping that NYCL will explain this better.”

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Amy Bennett writes “Move over police scanner and most-wanted poster. The Greater Manchester Police force has created a Facebook application to collect leads for investigations. The application delivers a real-time feed of police news and appeals for information. A ‘Submit Intelligence’ link takes a Facebook user to the police Web site where they have the ability to anonymously submit tips. Another link leads to the videos on YouTube featuring information on the police force, ongoing investigations and other advisories.” As reader groschke writes, though, “Their access to user data raises significant civil liberties problems. They might be able to see more of your data than your friends or network members can — and you also expose your friends’ data when you add the application. All without needing a subpoena or warrant.”

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