WhyNot?

Committing not to Sue

Category: Intellectual Property
Responses: 1 (1 in support, 0 neutral, 0 in opposition)
Number of views: 1217
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One of the stumbling blocks to idea implementation is that manufacturers are worried that if they use one of the ideas on this site they will be sued for astronomical amounts after the fact by the person who posted the idea. We favor reasonable compensation for ideas, but we want to discourage innovators from filing nuisance suits trying to hold up implementers for unreasonable amounts.

[This risk is real. Taco Bell ended up being ordered to pay $42 million to two men who claimed they came up with the idea for the fast-food giant's Chihuahua ad campaign. See article here.]

lokani24, Dec 12 2003

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1. Committing WHAT not to sue?2. There is a lot of very sound argument that patents are now stifling commerce. The big combines buy up anything likely and then spen millions sniffing around for potential infringements.3. If Taco Bell is a fast food company, I'm glad it got a samck.

Lance Bombardier, Dec 16 2003

We propose adding the following Intellectual Policy statement at the bottom of the home web page: “Intellectual Policy: We encourage anyone using these ideas to enter into separate agreements to reasonably compensate the people who post. But the purpose of this site is to provide an open source platform for ideas. Please do not post, if you intend to later sue for compensation. For details click here. [Here would be highlighted link which would lead to this more formal statement: People who post to this site promise not to sue based on the use of their ideas unless they have entered into an express separate written contract that includes a hand-written signature of the person using the idea.]

An alternative to this “commitment not to sue” policy, would be a version where the innovator would propose a compensation cap – say 5% of revenue capped at $50,000. A condition of being able to read the idea (or possibly of using the site) is that the reader would legally commit to paying the amount requested if the reader ended up using the idea. We are reluctant to add this capped compensation option to the site, because it is cumbersome and offputting for some of the “open source community.”

Ian Ayres, Dec 26 2003

Copyright © Barry Nalebuff & Ian Ayres