Subject: Re: Tom W. Bell paper
From: <stephen@xemacs.org>
Date: Mon, 4 Sep 2006 12:59:09 +0900

Don Marti writes:

 > So first Intel, AMD, VIA, Sun would all break out
 > their energy-efficiency research into separate
 > securities, then you'd have to short all of them,
 > or someone would have to set up a mutual fund for you
 > to short?  And then there's the transaction costs of
 > the patent system as well as the transaction costs
 > of trading multiple securities per public company?
 > I don't see how this wouldn't have way more
 > transaction costs than the Bell proposal.

It does.  But it has a critical feature that the Bell proposal lacks:
a flow of funds into, rather than out of, actual R&D activity.

Nobody has yet proposed a plausible scenario for the Bell proposal to
get funds to flow into R&D, except for your proposal of "invent then
buy claims."  But that's ethically, and under current law, fraud
(insider trading).  The ethics won't change, and I doubt the law will,
either.

Steve