Priceline Founder: Our Patent System Is Broken

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Dec. 2 (Bloomberg) -- Priceline founder Jay Walker discusses his plans to launch a no-fault licensing system for patents. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

No-fault patent licensing system.

There is a giant problem in the united states.

And it is affecting everybody.

We have spent billions on creative industries.

But the licensing system is totally broken in the united states.

99% of all patents generate not one dollar a patents.

The vast majority of inventions have no licensing revenue.

The only way to get that in america is to sue.

That makes sense for a small amount.

But for 99% of inventions we need something private, effective, and simple.

What is the actual tactic?

How do you do it?

I have created a public company.

We are going to create a series of algorithms for a no-fault patenting system.

By the end of next year, you will be a will to go, as a user, and say look, i don't want to have a problem.

What can i license without having a big problem?

As an inventor, you will say, i am not getting any money now.

If i do this, it may be worth it.

It is the same with radio stations.

Everybody give a little.

It works for everybody.

We need to innovate.

We innovate in america.

But we have no innovation about innovation itself.

Everybody is hurting everybody.

But you know all we need, we need new thinking?

As part of this new thinking, is there an argument to be made that because you are starting with scratch, you're able to accumulate all of this information related to this to make it possible to do this?

Will make that possible is a new bargain between patent users, opinions, and inventors.

Do you want to get into a trial by jury?

Or do you want to cut out the lawyers and reach an agreement that works for everybody?

That works in no-fault divorces.

It will work in patent arguments too.

We spend so much money arguing about whether your patent covers my pen or doesn't cover my pen.

We can take a lot of the costs out.

I the end of the next year we can create a simple system.

You have a lot of experience with patents.

I have over 700 patents.

I have a lot of experience as an inventor.

In the last 10 years, i have spent over $50 million of my money ended.

I run a research and development lab.

I have been able and out-of- court.

I am the right kind of person to do this.

-- i have been in and out-of- court.

I am the right kind of person to do this.

We need better audits and services.

We need better competitors.

It is bad for america that all of these patterns are frozen, and nobody is licensing anything.

That sounds like a great rational argument.

But when you talk about pulling costs out of the current system, it is going to someone now.

It is going to no one.

Most people can't afford a lawsuit.

If you invent glasses, you can't afford a lawsuit.

If i use your patent, and they take it from you, you can't sue me.

Only people in private jets can sue people.

This is money that we are not spending on lawyers.

This is not happening at all.

What needs to happen in the next 90 days.

-- days?

This text has been automatically generated. It may not be 100% accurate.

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