IMHO patents are useful for things where you spend a ton of money researching something, but the implementation is rather straightforward. Think of the secret Coke or Pepsi recipes, I would imagine very hard and expensive to develop but easy to produce once you know what to do.
Compare that to something like AWS and the equation is basically flipped. Figuring out what to do is not that difficult compared to actually doing it, Amazon could probably open source all of their cloud offerings tomorrow and outside a handful of very capable actors, implementing another AWS would be next to impossible.
Lots of things in tech are flipped on their head like that, you can describe the idea and functions of Uber at a high level on a back of a napkin, but good luck actually implementing and doing so successfully.
That's why personally I think patents should be abolished in the tech space, they just don't help anyone except the owners of the patent but they don't help in the way people actually intended it to. Here it's not like Cove lost out on being a huge cloud player because Amazon stole the idea behind S3 and DynamoDB, they just "own" the idea and are trying to extract money from Amazon.
Coke’s recipe is protected by Trade Secret, not patents. If you can figure out how to reverse engineer Coke 1:1 on your own, you can sell the resulting product. Coke is only protected from people selling their recipe to competitors.
Patents are only useful if they are actually enforced, through lawsuits and lawyers. The amount of time and money spent on patent lawsuits as opposed to innovation is a form of deadweight cost and must be factored in any argument for or against patents.
What patents give is a seat at the negotiation table. It is not by itself a business model.
Compare that to something like AWS and the equation is basically flipped. Figuring out what to do is not that difficult compared to actually doing it, Amazon could probably open source all of their cloud offerings tomorrow and outside a handful of very capable actors, implementing another AWS would be next to impossible.
Lots of things in tech are flipped on their head like that, you can describe the idea and functions of Uber at a high level on a back of a napkin, but good luck actually implementing and doing so successfully.
That's why personally I think patents should be abolished in the tech space, they just don't help anyone except the owners of the patent but they don't help in the way people actually intended it to. Here it's not like Cove lost out on being a huge cloud player because Amazon stole the idea behind S3 and DynamoDB, they just "own" the idea and are trying to extract money from Amazon.