The conference heard a compelling perspective on software patents from Guenther Schmalz, director of IP for Europe for SAP, the largest European software maker and the third-largest software maker in the world. SAP burst on the scene in the early1970s, like Microsoft moving into areas of software that IBM had no interest in commoditizing. For years SAP grew and grew and had no patents. Now they're ramping up a major patent office with a few dozen attorneys around the world. Why? "Times have changed," Schmalz said. In the early days, SAP's competitors were way behind, but now competitors are everywhere. Patents are the only way for SAP to ensure returns on its development investment, he said, adding that copyright is no solution, as the actual writing of code only makes up about 20% of the development of software.

"Those who drive innovation need patents," he said. "Those who don't imitate."

posted by Patrick Ross @ 6:45 AM | Digital Europe 2006, Patents, Software

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