FTC Speaks Out Against Import Bans, Growing Number of Patent Claims
In the letter, the FTC stats that instances where companies try to block competing firms from importing their products into the U.S. could cause "substantial harm to U.S. competition, consumers, and innovation."
What's more, even just the "threat of a hold-up can deter innovation by increasing costs and uncertainty for other industry participants, including those engaged in inventive activity. It can also distort investment and harm consumers by breaking the connection the value of an invention and its reward -- a connection that is the cornerstone of the patent system," the FTC wrote.
In other words, the FTC seems fully aware that patent law, or at least the way it's carried out in court, is totally out of whack and working against the best interest of consumers. What set off the FTC's tirade is a potential ban on Microsoft's Xbox 360 console over standards-essential patents, in which Microsoft is accused of infringing on four Motorola owned patents.