Very good news: “Exhaustion doctrine” strongly supported by Supreme Court

SC overturns Lexmark’s patent win on used printer cartridges. Since the 17th century, restricting resale has been “against Trade and Traffique.”

Source: Supreme Court overturns Lexmark’s patent win on used printer cartridges | Ars Technica

Summary: once a product is sold, the original patent holder can’t control how it is subsequently used.

Not the only seller.

Today’s ruling is a win for many tech companies, with companies like Vizio, Dell, Intel, LG Electronics, HTC, and Western Digital all taking the side of Impression Products. [the winner] …The companies on Lexmark’s side, no surprise, were heavy licensers of patents, including tech giants like Qualcomm, IBM, Nokia, and Dolby. Biotechnology and pharmaceutical groups also supported Lexmark. Those lineups largely mirror industry divisions over Congressional debates around reforming patent laws, with the pro-Impression companies favoring user-friendly changes to patent laws, and the pro-Lexmark companies wanting more changes that favor patent owners.

I often gripe about the Supreme Court’s seeming “go with the big $” jurisprudence. But in this case, there was plenty of corporate power on both sides. And the 7-1 verdict means it was not a close call.

Automation and the Future of Work – Lecture Notes 2017

One of my students reported that he was having trouble finding my lecture notes from this course, so I am putting them in one place. I will update this for the last few classes.

 Topic  Date of class  File name+link
Final projects;
Diffusion of innovation;
financial evaluation;
technology life cycles
 May 15, 17 A+W 2017 May 17 Bohn adoption

3 cases of service automation  May 8   Internet of things
Human expertise
& AI in medicine
April 17   Q+W week 3 medicine
 Trends in employment  April 4  A+W17 Bohn April 4

Some of the aviation discussions are not yet here.

Lots of technology policy stories this weekend

There are lots of technology-policy-related stories this weekend.  The first three concern about excess market power in tech markets, and its effects. The remaining three are miscellaneous subjects at the intersection of technology, policy, and politics.

Suggestion: If a newspaper is refusing to let you read an article, you can often get it by searching for it (on Google – irony alert, see one of the stories below), and visiting from the search result.

And a humble brag: Only the last of these stories directly concerns He Who Must Not Be Named. Nor did I mention Juicero, whose idiocy I tweeted about when it first came to market.

Is It Time to Break Up Google?

In just 10 years, the world’s five largest companies by market capitalization have all changed, save for one: Microsoft. Exxon Mobil, General Electric, Citigroup and Shell Oil are out and Apple, Alphabet (the parent company of Google), Amazon and Facebook have taken their place.

They’re all tech companies, and each dominates its corner of the industry: Google has an 88 percent market share in search advertising, Facebook (and its subsidiaries Instagram, WhatsApp and Messenger) owns 77 percent of mobile social traffic and Amazon has a 74 percent share in the e-book market. In classic economic terms, all three are monopolies.

Continue reading

Overwhelmed Yamato mulls exit from Amazon’s same-day delivery service 

Same-day delivery for Amazon ” is taking an increasing toll on Yamato’s drivers because of the high volume of nighttime deliveries.”

The company had been considering partly terminating contracts with major clients who refused to accept raised shipping fees or deferring delivery days during peak periods.

Source: Overwhelmed Yamato mulls exit from Amazon’s same-day delivery service | The Japan Times

Package delivery is one of the only employment categories that is increasing as retailing moves more toward the Internet. But as this article implies,  we will see more change in how retailers and deliverers manage the last step in the B-to-C supply chain. Why doesn’t Yamato raise its prices?

Why doesn’t Yamato raise its prices? Perhaps they don’t want to compete with other delivery services in late night delivery?

Ridiculous: “Why Oxfam is getting it wrong about poverty” – CapX

Bilge from a right-wing pseudo-intellectual. I’ve never heard of this guy before, but he seems to be an expert in deception rather than analysis.

As it’s Davos time, Oxfam has issued its traditional demand for a handout.  Their wealth report this year informs us that a mere eight people have more wealth than the bottom 50 percent of the world’s population. This is entirely true of course. But Oxfam’s solution is that we should take it from the rich and […]Source: Why Oxfam is getting it wrong about poverty – CapX

This is an example of deceptive reasoning. Here’s my quick analysis:

Worstall writes:

>The result is that entrepreneurs get to keep some 3 per cent of the value of their creations. The other 97 per cent of the value flows to us consumers out here.
>Poverty exists and obviously we’d prefer that it didn’t. That’s why we need more rich people not fewer: because we need someone to create value for the rest of us to consume.

So he is equating “rich people” to “entrepreneurs” to “creators of value.” If only that were true. Although a small number of tech entrepreneurs get most of the publicity (Steve Jobs, Bill Gates, etc), most of the giant corporate profits are coming from increasing market power/decreasing competition in many markets. For example, few outside the industry think that the “financial services” industry (e.g. investment banking) creates value comparable to the huge profits it makes.

He is also using misdirection to imply that Sam Walton’s heirs were the entrepreneurs who created Walmart’s economic value!

Finally, he keeps using a “3 percent” number to imply that “the masses” get 97 percent of increasing economic value, and the ultra-rich get only 3 percent. In fact median income has not grown for several decades. While the overall GDP has doubled in the last 30 years, the extra income has gone entirely to the upper ten percent. (Median household income rose by 8% in the last 30 years.)

A slightly different way of measuring. Compare black and red lines.


So the blog post is a dishonest piece of fallacious reasoning. Is this typical of the Adam Smith Institute, where he is apparently based? Is this the average reasoning level of right-wing intellectuals today?

By the way, I’m sure there are problems with Oxfam’s report – just not the ones he claims.

Why Elon Musk’s New Strategy Makes Sense — Really??

Claim: “The history of architectural innovation is on his side. Source: Why Elon Musk’s New Strategy Makes Sense” by Joshua Gans

I’ve seen many people encouraging Musk’s integration of Solar City with Tesla, but it strikes me as a weak move. There is some synergy between electric cars and home PV, but electric energy is mostly fungible. Only if local utilities use really dumb pricing schemes for solar power would it be useful to bypass them if you have an EV. (Admittedly, many utilities do exactly that.)

Second, his closing argument contradicts a lot of other analysis.  I have not read Gans book. But he writes that:

As I outline in my book, The Disruption Dilemma, the companies that have thrived in the face of architectural disruption of this kind are those that have kept all the parts close and in control rather than spread them out.

But, “keeping all the parts under your control” rules out 99% of startups. And it also seems historically incorrect. IBM, when it started the IBM-PC revolution, did so by surrendering control of almost everything, including the OS, processor, hard drive, and applications. IBM made all of these things for its mainframes, but it revolutionized the industry by NOT controlling them for personal computers. And this was certainly architectural disruption – the shift from a closed to an open architecture.

I’ll have to look at his book. Or ask my friend Liz Lyons down the hall, who was his student.