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PatentBooks, Inc.
1155 Kelly Johnson Boulevard, Suite 400,
Colorado Springs, Colorado 80920 USA
office +1.719.325.5000 fax +1.719.632.5175
www.patentbooksinc.com
	
  
	
  
Rationale	
  for	
  the	
  Pontifical	
  Council	
  for	
  Justice	
  and	
  Peace	
  Endorsing	
  PatentBooks	
  
	
  
Dear	
  Cardinal	
  Turkson	
  and	
  Father	
  Czerny,	
  
This	
  is	
  a	
  follow	
  up	
  note	
  regarding	
  Cardinal	
  Turkson’s	
  comment	
  to	
  me	
  at	
  the	
  Catholic	
  University	
  of	
  
America’s	
  October	
  2014	
  event,	
  “Liberty	
  and	
  Solidarity:	
  Living	
  the	
  Vocation	
  of	
  the	
  Business	
  Leader”	
  
regarding	
  his	
  endorsement	
  of	
  the	
  PatentBook	
  business	
  model	
  on	
  behalf	
  of	
  the	
  Pontifical	
  Council	
  for	
  
Justice	
  and	
  Peace.	
  Although	
  Cardinal	
  Turkson	
  did	
  not	
  specifically	
  state	
  to	
  me	
  the	
  reason	
  for	
  his	
  
endorsement	
  comment,	
  perhaps	
  it	
  had	
  something	
  to	
  do	
  with	
  his	
  knowledge	
  of	
  Catholic	
  Social	
  Teaching	
  
and	
  his	
  new	
  understanding	
  of	
  PatentBooks.	
  My	
  understanding	
  of	
  Catholic	
  Social	
  Teaching	
  suggests	
  that	
  
PatentBooks	
  supports	
  its	
  four	
  pillars	
  as	
  follows:	
  
1.	
  Dignity	
  of	
  the	
  Human	
  Person.	
  Human	
  persons	
  invent	
  things.	
  Human	
  persons	
  use	
  good	
  inventions	
  to	
  
improve	
  their	
  lives.	
  Patents	
  are	
  the	
  societal	
  contract	
  that	
  grants	
  full	
  ownership	
  of	
  an	
  invention	
  to	
  the	
  
inventor	
  for	
  20	
  years	
  in	
  exchange	
  for	
  the	
  inventor’s	
  complete	
  public	
  disclosure	
  of	
  how	
  to	
  reproduce	
  the	
  
invention.	
  An	
  inventor	
  should	
  be	
  compensated	
  fairly	
  for	
  the	
  use	
  of	
  their	
  patents.	
  Patent	
  users	
  need	
  an	
  
efficient	
  way	
  to	
  pay	
  for	
  the	
  use	
  of	
  others’	
  patents	
  to	
  facilitate	
  honest	
  commerce.	
  Payment	
  mechanisms	
  
should	
  be	
  easy,	
  reasonably	
  priced,	
  and	
  uniform	
  for	
  all.	
  	
  
Pope	
  Emeritus	
  Benedict	
  XVI	
  addressed	
  the	
  need	
  for	
  a	
  more	
  efficient	
  mechanism	
  for	
  intellectual	
  property	
  
commerce	
  in	
  his	
  encyclical	
  Caritas	
  in	
  Veritate,	
  specifically	
  in	
  the	
  Preamble,	
  sections	
  7	
  and	
  9,	
  and	
  again	
  in	
  
Chapter	
  Two,	
  section	
  22.	
  Efficient	
  sharing	
  and	
  compensation	
  for	
  patents	
  can	
  alleviate	
  many	
  of	
  the	
  ills	
  
described	
  in	
  Chapter	
  Two,	
  while	
  accelerating	
  global	
  human	
  development.	
  
PatentBooks	
  allow	
  any	
  patent	
  owner	
  to	
  list	
  their	
  patent	
  for	
  free,	
  while	
  retaining	
  full	
  ownership	
  of	
  the	
  
patent.	
  PatentBooks	
  allow	
  patent	
  users	
  to	
  pay	
  a	
  single	
  reasonable	
  price	
  to	
  use	
  all	
  the	
  patents	
  in	
  the	
  
PatentBook,	
  buffet-­‐style,	
  via	
  a	
  simple	
  online	
  transaction.	
  Patent	
  users	
  buy	
  the	
  freedom	
  to	
  use	
  any	
  
patented	
  invention,	
  and	
  patent	
  owners	
  receive	
  compensation	
  based	
  on	
  the	
  relative	
  value	
  of	
  their	
  
patents	
  versus	
  all	
  the	
  other	
  patents	
  in	
  that	
  PatentBook.	
  
2.	
  Common	
  Good.	
  	
  The	
  widespread	
  use	
  of	
  patents	
  enables	
  all	
  humans	
  to	
  improve	
  their	
  lives.	
  	
  I	
  write	
  this	
  
letter	
  on	
  a	
  battery-­‐operated	
  laptop	
  computer	
  with	
  an	
  LCD	
  display	
  connected	
  to	
  the	
  Internet	
  via	
  a	
  
satellite	
  from	
  my	
  ranch	
  in	
  the	
  mountains	
  of	
  Colorado.	
  I	
  will	
  send	
  it	
  to	
  you	
  via	
  email.	
  You	
  are	
  likely	
  to	
  
read	
  my	
  letter	
  on	
  a	
  similar	
  device	
  in	
  a	
  reverse	
  sequence.	
  This	
  happens	
  because	
  many	
  people	
  have	
  had	
  
the	
  courage	
  and	
  societal	
  trust	
  to	
  patent	
  their	
  inventions.	
  	
  This	
  is	
  good	
  not	
  only	
  for	
  you	
  and	
  me,	
  but	
  for	
  
both	
  the	
  developing	
  and	
  developed	
  world.	
  
  	
   	
  
	
  
PatentBooks, Inc.
Page	
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  of	
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Unfortunately,	
  many	
  patent	
  users	
  have	
  not	
  paid	
  the	
  patent	
  owners	
  for	
  using	
  their	
  patents.	
  It	
  is	
  not	
  
because	
  patent	
  users	
  are	
  dishonest.	
  It	
  is	
  because	
  the	
  products,	
  services,	
  and	
  systems	
  we	
  use	
  today	
  are	
  
so	
  complicated	
  and	
  use	
  so	
  many	
  patents	
  that	
  it	
  is	
  virtually	
  impossible	
  to	
  pay	
  patent	
  owners	
  directly.	
  
We	
  live	
  at	
  a	
  unique	
  point	
  in	
  human	
  history	
  where	
  the	
  Internet	
  enables	
  instant	
  global	
  communications,	
  
machine	
  translation	
  software	
  allows	
  people	
  of	
  different	
  languages	
  to	
  understand	
  one	
  another	
  and	
  
business	
  models	
  for	
  intellectual	
  property	
  transactions,	
  i.e.	
  iTunes®,	
  have	
  been	
  successful.	
  	
  
Our	
  unique	
  contributions	
  to	
  the	
  patent	
  license	
  marketplace	
  includes	
  the	
  patent	
  evaluation	
  criteria	
  called	
  
TAEUSworks,	
  the	
  knowledge	
  of	
  what	
  patents	
  are	
  included	
  in	
  a	
  product	
  or	
  service,	
  and	
  our	
  reputation	
  for	
  
excellence	
  with	
  the	
  Global	
  1000	
  corporations	
  and	
  world	
  governments.	
  Our	
  criteria	
  have	
  been	
  created	
  
over	
  the	
  past	
  couple	
  of	
  decades	
  as	
  we	
  have	
  evaluated	
  most	
  of	
  the	
  world’s	
  largest	
  corporations	
  patent	
  
portfolios.	
  We	
  have	
  decided	
  to	
  offer	
  these	
  patent	
  evaluation	
  criteria	
  to	
  the	
  world,	
  free	
  of	
  charge,	
  to	
  help	
  
establish	
  a	
  more	
  efficient	
  global	
  patent	
  licensing	
  market	
  that	
  can	
  begin	
  to	
  resemble	
  the	
  efficiencies	
  of	
  
the	
  global	
  real	
  estate	
  market.	
  	
  	
  
Today,	
  patent	
  owners	
  seek	
  restitution	
  and	
  compensation	
  via	
  governmental	
  legal	
  systems.	
  This	
  is	
  highly	
  
inefficient,	
  expensive,	
  and	
  risky;	
  enabling	
  only	
  very	
  wealthy	
  patent	
  owners	
  to	
  receive	
  compensation.	
  
Others	
  have	
  learned	
  how	
  to	
  manipulate	
  current	
  legal	
  systems,	
  crushing	
  new	
  businesses	
  and	
  
unreasonably	
  enriching	
  select	
  individuals	
  and	
  lawyers.	
  
The	
  solution	
  that	
  best	
  supports	
  the	
  common	
  good	
  is	
  market-­‐based	
  systems	
  localized	
  to	
  products,	
  patent	
  
owners	
  and	
  patent	
  users	
  within	
  national	
  boundaries,	
  i.e.	
  PatentBooks.	
  
St.	
  Paul	
  references	
  the	
  One	
  Body	
  of	
  Christ	
  and	
  all	
  the	
  different	
  skills	
  and	
  gifts	
  that	
  work	
  together	
  for	
  
success	
  in	
  1	
  Corinthians	
  Chapter	
  12	
  and	
  Romans	
  Chapter	
  12.	
  Patent	
  owners	
  that	
  publish	
  to	
  PatentBooks	
  
get	
  paid	
  efficiently,	
  allowing	
  them	
  to	
  invent	
  more.	
  Innovators	
  that	
  subscribe	
  to	
  PatentBooks	
  enjoy	
  the	
  
right	
  to	
  use	
  any	
  patents	
  they	
  want	
  to,	
  with	
  complete	
  freedom	
  to	
  operate.	
  	
  The	
  rest	
  of	
  the	
  world	
  enjoys	
  
using	
  the	
  product,	
  services,	
  and	
  systems	
  these	
  groups	
  create.	
  
PatentBooks	
  enable	
  superabundance.	
  	
  
3.	
  Subsidiarity.	
  PatentBooks	
  support	
  the	
  sharing	
  of	
  patented	
  inventions	
  at	
  the	
  lowest	
  possible	
  
transaction	
  level,	
  specifically	
  the	
  individual	
  inventor	
  and	
  the	
  patent	
  user.	
  	
  Any	
  inventor	
  anywhere	
  can	
  
publish	
  his	
  patent	
  to	
  a	
  PatentBook	
  for	
  free,	
  easily	
  receiving	
  compensation	
  according	
  to	
  the	
  quality	
  of	
  his	
  
patent	
  in	
  the	
  context	
  of	
  all	
  the	
  other	
  PatentBook	
  patents.	
  Patent	
  users	
  receive	
  the	
  opportunity	
  to	
  be	
  
honest,	
  paying	
  for	
  all	
  the	
  patents	
  they	
  might	
  consider	
  using	
  in	
  their	
  product	
  or	
  service,	
  without	
  fear	
  of	
  
litigation.	
  The	
  transaction	
  is	
  easy,	
  fairly	
  priced,	
  and	
  everyone	
  pays	
  the	
  same	
  price.	
  
God	
  made	
  the	
  Earth	
  and	
  put	
  a	
  lot	
  of	
  good	
  things	
  here.	
  	
  In	
  His	
  most	
  profound	
  act	
  of	
  creation,	
  God	
  made	
  
humans,	
  and	
  granted	
  them	
  dominion	
  over	
  all	
  His	
  creation.	
  Everything	
  was	
  fine	
  until	
  The	
  Fall.	
  Since	
  then,	
  
humans	
  have	
  had	
  to	
  invent	
  or	
  discover	
  the	
  good	
  things	
  God	
  placed	
  here,	
  a	
  little	
  bit	
  at	
  a	
  time.	
  	
  
  	
   	
  
	
  
PatentBooks, Inc.
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When	
  a	
  human	
  discovers	
  or	
  invents	
  something	
  new,	
  he	
  and	
  others	
  may	
  benefit	
  from	
  the	
  discovery.	
  A	
  
patent	
  is	
  a	
  public	
  disclosure	
  of	
  the	
  discovery	
  or	
  invention	
  so	
  that	
  society	
  as	
  a	
  whole	
  can	
  benefit	
  from	
  the	
  
invention.	
  The	
  patent	
  is	
  a	
  societal	
  contract	
  between	
  an	
  inventor	
  and	
  the	
  rest	
  of	
  society.	
  The	
  contract	
  is	
  
simply	
  this:	
  in	
  exchange	
  for	
  completely	
  disclosing	
  the	
  recipe	
  of	
  reproducing	
  the	
  invention,	
  society	
  grants	
  
the	
  inventor	
  all	
  rights	
  to	
  that	
  invention	
  for	
  a	
  fixed	
  period	
  of	
  time,	
  currently	
  20	
  years.	
  	
  
Innovators	
  that	
  create	
  useful	
  new	
  products	
  and	
  services	
  combine	
  hundreds	
  and	
  thousands	
  of	
  
inventions,	
  discoveries,	
  and	
  patents	
  disclosed	
  by	
  many	
  humans	
  from	
  all	
  over	
  the	
  world.	
  	
  Given	
  the	
  
complexity	
  of	
  the	
  useful	
  new	
  products	
  and	
  services	
  we	
  enjoy	
  today,	
  licenses	
  from	
  all	
  these	
  patent	
  
owners	
  are	
  required.	
  Most	
  innovators	
  are	
  honest,	
  when	
  provided	
  the	
  chance	
  to	
  be	
  honest,	
  and	
  would	
  
license	
  all	
  the	
  patents	
  if	
  the	
  transaction	
  was	
  simple,	
  reasonably	
  priced,	
  and	
  everyone	
  paid	
  the	
  same	
  
amount.	
  Licensing	
  all	
  these	
  patents	
  via	
  individual	
  patent	
  owners	
  is	
  virtually	
  impossible,	
  because	
  there	
  
are	
  so	
  many	
  of	
  them.	
  	
  
Patent	
  owners,	
  by	
  virtue	
  of	
  their	
  public	
  disclosure	
  of	
  their	
  patent,	
  enjoy	
  both	
  the	
  right	
  to	
  allow	
  others	
  to	
  
use	
  their	
  patented	
  inventions,	
  or	
  to	
  exclude	
  them	
  from	
  the	
  patented	
  invention’s	
  use.	
  Patent	
  litigation	
  
today	
  enforces	
  the	
  right	
  of	
  the	
  patent	
  owner	
  to	
  exclude	
  others	
  from	
  using	
  the	
  patented	
  invention.	
  This	
  
one-­‐sided	
  perspective	
  fosters	
  greed	
  and	
  conflict,	
  and	
  is	
  not	
  beneficial	
  to	
  society.	
  The	
  sole	
  focus	
  on	
  
exclusion	
  is	
  contrary	
  to	
  the	
  societal	
  contract	
  that	
  is	
  the	
  foundation	
  of	
  patents,	
  i.e.	
  sharing	
  of	
  an	
  
invention	
  with	
  society.	
  	
  
Good	
  ideas	
  will	
  always	
  be	
  copied	
  to	
  improve	
  economic	
  conditions.	
  A	
  brief	
  economic	
  history	
  of	
  the	
  world	
  
is	
  as	
  follows.	
  The	
  United	
  States	
  was	
  formed	
  in	
  1776,	
  and	
  grew	
  by	
  copying	
  other	
  ideas	
  and	
  developing	
  
some	
  of	
  its	
  own	
  up	
  to	
  World	
  War	
  I,	
  roughly	
  150	
  years.	
  In	
  1945,	
  after	
  World	
  War	
  II,	
  both	
  Japan	
  and	
  
Germany	
  were	
  economically	
  devastated,	
  but	
  by	
  1995,	
  just	
  50	
  years	
  later,	
  both	
  were	
  economically	
  
significant.	
  South	
  Korea	
  witnessed	
  Japan’s	
  success,	
  and	
  repeated	
  it	
  from	
  1970	
  to	
  2000,	
  and	
  reducing	
  the	
  
time	
  from	
  50	
  to	
  just	
  30	
  years.	
  Taiwan	
  did	
  the	
  same	
  in	
  25	
  years,	
  and	
  the	
  China	
  became	
  economically	
  
significant	
  in	
  15	
  years.	
  This	
  cycle	
  of	
  economic	
  development	
  will	
  continue	
  to	
  decrease	
  with	
  
improvements	
  in	
  communications	
  and	
  transportation	
  technologies.	
  New	
  systems	
  must	
  be	
  created	
  to	
  
enable	
  the	
  intellectual	
  property	
  owners	
  to	
  be	
  fairly	
  compensated	
  for	
  others	
  use	
  of	
  their	
  intellectual	
  
property.	
  PatentBooks	
  is	
  such	
  a	
  system.	
  	
  	
  
Human	
  society	
  determined	
  that	
  clean	
  water	
  and	
  electricity	
  are	
  important	
  to	
  life.	
  Ideas	
  are	
  just	
  as	
  
important	
  to	
  life,	
  perhaps	
  even	
  more	
  so.	
  In	
  developed	
  areas	
  of	
  the	
  world,	
  humans	
  have	
  banded	
  
together	
  to	
  create	
  electric	
  and	
  water	
  utility	
  companies,	
  which	
  deliver	
  electricity	
  and	
  water	
  efficiently	
  to	
  
customers	
  who	
  all	
  basically	
  pay	
  the	
  same	
  rate	
  for	
  only	
  the	
  amount	
  of	
  electricity	
  and	
  water	
  they	
  
consume.	
  PatentBooks	
  brings	
  “utility	
  company”	
  efficiency	
  to	
  patent	
  licensing.	
  
PatentBooks	
  simply	
  eliminate	
  the	
  friction	
  and	
  high	
  cost	
  of	
  patent	
  licensing	
  and	
  litigation.	
  PatentBooks	
  is	
  
a	
  Good	
  Business	
  that	
  provides	
  a	
  platform	
  for	
  efficient	
  legal	
  access	
  to	
  all	
  the	
  world’s	
  patented	
  
technologies	
  while	
  highlighting	
  and	
  compensating	
  the	
  world’s	
  inventors	
  fairly	
  for	
  a	
  minimum	
  cost.	
  	
  
  	
   	
  
	
  
PatentBooks, Inc.
Page	
  4	
  of	
  6	
  
	
  
Solidarity.	
  Human	
  persons	
  working	
  together	
  with	
  charity	
  in	
  truth	
  in	
  an	
  open	
  marketplace	
  improve	
  the	
  
lives	
  of	
  all	
  human	
  persons.	
  Human	
  persons	
  developed	
  methods	
  of	
  delivering	
  clean	
  water	
  and	
  electricity	
  
so	
  that	
  individuals	
  and	
  businesses	
  no	
  longer	
  must	
  provide	
  their	
  own.	
  Businesses	
  and	
  homes	
  in	
  the	
  
developed	
  world	
  just	
  “connect	
  to	
  the	
  grid.”	
  	
  
The	
  most	
  important	
  factor	
  in	
  human	
  development	
  is	
  the	
  sharing	
  of	
  ideas.	
  Patents	
  are	
  society’s	
  best	
  
method	
  for	
  documenting	
  and	
  sharing	
  inventions,	
  yet	
  compensation	
  mechanisms	
  for	
  using	
  patents	
  have	
  
not	
  kept	
  pace	
  with	
  the	
  rapid	
  massive	
  inclusion	
  of	
  tens	
  of	
  thousands	
  of	
  inventions	
  into	
  useful	
  products	
  
and	
  services.	
  
Patent	
  ownership	
  includes	
  both	
  the	
  right	
  to	
  exclude	
  and	
  the	
  right	
  to	
  include,	
  just	
  as	
  a	
  glass	
  of	
  water	
  may	
  
simultaneously	
  both	
  half-­‐empty	
  and	
  half-­‐full.	
  Patent	
  licensing	
  today	
  focuses	
  solely	
  on	
  the	
  patent	
  
owner’s	
  right	
  to	
  exclude.	
  	
  This	
  one-­‐sided	
  bias	
  stifles	
  human	
  creativity	
  and	
  has	
  massively	
  slowed	
  the	
  rate	
  
of	
  human	
  development,	
  especially	
  in	
  the	
  last	
  20	
  years.	
  Because	
  of	
  the	
  complexity	
  of	
  today’s	
  products,	
  
services,	
  and	
  systems,	
  and	
  the	
  massive	
  volume	
  of	
  human	
  creative	
  activity	
  documented	
  in	
  patents,	
  
current	
  patent	
  licensing	
  systems	
  are	
  unworkable.	
  The	
  best	
  evidence	
  of	
  this	
  unworkability	
  is	
  patent	
  
litigation.	
  Patent	
  litigation	
  and	
  its	
  injunctive	
  power	
  is	
  the	
  ultimate	
  step	
  in	
  a	
  patent	
  licensing	
  system	
  
focused	
  on	
  exclusion.	
  Patent	
  trolls	
  appear,	
  as	
  the	
  financial	
  incentive	
  to	
  extort	
  compensation	
  by	
  paying	
  a	
  
high	
  fee	
  to	
  avoid	
  the	
  even	
  higher	
  costs	
  and	
  distraction	
  of	
  patent	
  litigation	
  loom	
  large.	
  	
  
Since	
  a	
  patent	
  is	
  a	
  public	
  disclosure	
  of	
  an	
  invention,	
  the	
  natural	
  predisposition	
  should	
  be	
  to	
  focus	
  on	
  the	
  
patent	
  owner’s	
  right	
  to	
  include	
  others,	
  provided	
  there	
  is	
  a	
  reasonable	
  easy	
  mechanism	
  for	
  both	
  the	
  
patent	
  user	
  to	
  pay	
  for	
  patent	
  usage	
  and	
  the	
  patent	
  owner	
  to	
  be	
  compensated	
  for	
  the	
  use	
  of	
  his	
  patents.	
  
A	
  patent	
  licensing	
  system	
  focused	
  on	
  a	
  patent	
  owner’s	
  right	
  to	
  include	
  others,	
  as	
  long	
  as	
  those	
  patent	
  
users	
  pay	
  for	
  patent	
  usage,	
  benefits	
  everyone.	
  Fear	
  of	
  patent	
  litigation	
  disappears,	
  allowing	
  creativity	
  to	
  
flourish,	
  resulting	
  in	
  fair	
  trade	
  between	
  inventors	
  and	
  innovators,	
  and	
  massive	
  grown	
  in	
  employment	
  
and	
  economic	
  activity	
  for	
  all	
  human	
  persons.	
  	
  	
  
PatentBooks	
  provide	
  the	
  licensing	
  platform	
  for	
  innovators	
  to	
  pay	
  for	
  other’s	
  patents	
  in	
  an	
  easy,	
  fair,	
  
uniform	
  way,	
  and	
  provide	
  compensation	
  for	
  all	
  patent	
  owners,	
  at	
  the	
  lowest	
  possible	
  transaction	
  cost.	
  	
  
PatentBooks	
  allow	
  all	
  human	
  persons	
  to	
  align	
  their	
  unique	
  personal	
  interests	
  with	
  that	
  of	
  all	
  other	
  
human	
  persons	
  in	
  an	
  industry,	
  eliminating	
  patent	
  litigation	
  by	
  reducing	
  the	
  cost,	
  complexity,	
  and	
  
extortion-­‐based	
  incentives	
  of	
  current	
  patent	
  licensing.	
  
We	
  sincerely	
  appreciate	
  the	
  Cardinal’s	
  support	
  and	
  prayers	
  for	
  PatentBooks.	
  If	
  there	
  is	
  any	
  other	
  
information	
  we	
  can	
  provide,	
  please	
  let	
  us	
  know.	
  	
  	
  
Sincerely,	
  
	
  
Art	
  Nutter	
  
A	
  Catholic	
  
  	
   	
  
	
  
PatentBooks, Inc.
Page	
  5	
  of	
  6	
  
	
  
And	
  Chairman/CEO	
  of	
  PatentBooks,	
  Inc.	
  
	
  
	
  
  	
   	
  
	
  
PatentBooks, Inc.
Page	
  6	
  of	
  6	
  
	
  

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PatentBooksExplanation

  • 1.     PatentBooks, Inc. 1155 Kelly Johnson Boulevard, Suite 400, Colorado Springs, Colorado 80920 USA office +1.719.325.5000 fax +1.719.632.5175 www.patentbooksinc.com     Rationale  for  the  Pontifical  Council  for  Justice  and  Peace  Endorsing  PatentBooks     Dear  Cardinal  Turkson  and  Father  Czerny,   This  is  a  follow  up  note  regarding  Cardinal  Turkson’s  comment  to  me  at  the  Catholic  University  of   America’s  October  2014  event,  “Liberty  and  Solidarity:  Living  the  Vocation  of  the  Business  Leader”   regarding  his  endorsement  of  the  PatentBook  business  model  on  behalf  of  the  Pontifical  Council  for   Justice  and  Peace.  Although  Cardinal  Turkson  did  not  specifically  state  to  me  the  reason  for  his   endorsement  comment,  perhaps  it  had  something  to  do  with  his  knowledge  of  Catholic  Social  Teaching   and  his  new  understanding  of  PatentBooks.  My  understanding  of  Catholic  Social  Teaching  suggests  that   PatentBooks  supports  its  four  pillars  as  follows:   1.  Dignity  of  the  Human  Person.  Human  persons  invent  things.  Human  persons  use  good  inventions  to   improve  their  lives.  Patents  are  the  societal  contract  that  grants  full  ownership  of  an  invention  to  the   inventor  for  20  years  in  exchange  for  the  inventor’s  complete  public  disclosure  of  how  to  reproduce  the   invention.  An  inventor  should  be  compensated  fairly  for  the  use  of  their  patents.  Patent  users  need  an   efficient  way  to  pay  for  the  use  of  others’  patents  to  facilitate  honest  commerce.  Payment  mechanisms   should  be  easy,  reasonably  priced,  and  uniform  for  all.     Pope  Emeritus  Benedict  XVI  addressed  the  need  for  a  more  efficient  mechanism  for  intellectual  property   commerce  in  his  encyclical  Caritas  in  Veritate,  specifically  in  the  Preamble,  sections  7  and  9,  and  again  in   Chapter  Two,  section  22.  Efficient  sharing  and  compensation  for  patents  can  alleviate  many  of  the  ills   described  in  Chapter  Two,  while  accelerating  global  human  development.   PatentBooks  allow  any  patent  owner  to  list  their  patent  for  free,  while  retaining  full  ownership  of  the   patent.  PatentBooks  allow  patent  users  to  pay  a  single  reasonable  price  to  use  all  the  patents  in  the   PatentBook,  buffet-­‐style,  via  a  simple  online  transaction.  Patent  users  buy  the  freedom  to  use  any   patented  invention,  and  patent  owners  receive  compensation  based  on  the  relative  value  of  their   patents  versus  all  the  other  patents  in  that  PatentBook.   2.  Common  Good.    The  widespread  use  of  patents  enables  all  humans  to  improve  their  lives.    I  write  this   letter  on  a  battery-­‐operated  laptop  computer  with  an  LCD  display  connected  to  the  Internet  via  a   satellite  from  my  ranch  in  the  mountains  of  Colorado.  I  will  send  it  to  you  via  email.  You  are  likely  to   read  my  letter  on  a  similar  device  in  a  reverse  sequence.  This  happens  because  many  people  have  had   the  courage  and  societal  trust  to  patent  their  inventions.    This  is  good  not  only  for  you  and  me,  but  for   both  the  developing  and  developed  world.  
  • 2.         PatentBooks, Inc. Page  2  of  6     Unfortunately,  many  patent  users  have  not  paid  the  patent  owners  for  using  their  patents.  It  is  not   because  patent  users  are  dishonest.  It  is  because  the  products,  services,  and  systems  we  use  today  are   so  complicated  and  use  so  many  patents  that  it  is  virtually  impossible  to  pay  patent  owners  directly.   We  live  at  a  unique  point  in  human  history  where  the  Internet  enables  instant  global  communications,   machine  translation  software  allows  people  of  different  languages  to  understand  one  another  and   business  models  for  intellectual  property  transactions,  i.e.  iTunes®,  have  been  successful.     Our  unique  contributions  to  the  patent  license  marketplace  includes  the  patent  evaluation  criteria  called   TAEUSworks,  the  knowledge  of  what  patents  are  included  in  a  product  or  service,  and  our  reputation  for   excellence  with  the  Global  1000  corporations  and  world  governments.  Our  criteria  have  been  created   over  the  past  couple  of  decades  as  we  have  evaluated  most  of  the  world’s  largest  corporations  patent   portfolios.  We  have  decided  to  offer  these  patent  evaluation  criteria  to  the  world,  free  of  charge,  to  help   establish  a  more  efficient  global  patent  licensing  market  that  can  begin  to  resemble  the  efficiencies  of   the  global  real  estate  market.       Today,  patent  owners  seek  restitution  and  compensation  via  governmental  legal  systems.  This  is  highly   inefficient,  expensive,  and  risky;  enabling  only  very  wealthy  patent  owners  to  receive  compensation.   Others  have  learned  how  to  manipulate  current  legal  systems,  crushing  new  businesses  and   unreasonably  enriching  select  individuals  and  lawyers.   The  solution  that  best  supports  the  common  good  is  market-­‐based  systems  localized  to  products,  patent   owners  and  patent  users  within  national  boundaries,  i.e.  PatentBooks.   St.  Paul  references  the  One  Body  of  Christ  and  all  the  different  skills  and  gifts  that  work  together  for   success  in  1  Corinthians  Chapter  12  and  Romans  Chapter  12.  Patent  owners  that  publish  to  PatentBooks   get  paid  efficiently,  allowing  them  to  invent  more.  Innovators  that  subscribe  to  PatentBooks  enjoy  the   right  to  use  any  patents  they  want  to,  with  complete  freedom  to  operate.    The  rest  of  the  world  enjoys   using  the  product,  services,  and  systems  these  groups  create.   PatentBooks  enable  superabundance.     3.  Subsidiarity.  PatentBooks  support  the  sharing  of  patented  inventions  at  the  lowest  possible   transaction  level,  specifically  the  individual  inventor  and  the  patent  user.    Any  inventor  anywhere  can   publish  his  patent  to  a  PatentBook  for  free,  easily  receiving  compensation  according  to  the  quality  of  his   patent  in  the  context  of  all  the  other  PatentBook  patents.  Patent  users  receive  the  opportunity  to  be   honest,  paying  for  all  the  patents  they  might  consider  using  in  their  product  or  service,  without  fear  of   litigation.  The  transaction  is  easy,  fairly  priced,  and  everyone  pays  the  same  price.   God  made  the  Earth  and  put  a  lot  of  good  things  here.    In  His  most  profound  act  of  creation,  God  made   humans,  and  granted  them  dominion  over  all  His  creation.  Everything  was  fine  until  The  Fall.  Since  then,   humans  have  had  to  invent  or  discover  the  good  things  God  placed  here,  a  little  bit  at  a  time.    
  • 3.         PatentBooks, Inc. Page  3  of  6     When  a  human  discovers  or  invents  something  new,  he  and  others  may  benefit  from  the  discovery.  A   patent  is  a  public  disclosure  of  the  discovery  or  invention  so  that  society  as  a  whole  can  benefit  from  the   invention.  The  patent  is  a  societal  contract  between  an  inventor  and  the  rest  of  society.  The  contract  is   simply  this:  in  exchange  for  completely  disclosing  the  recipe  of  reproducing  the  invention,  society  grants   the  inventor  all  rights  to  that  invention  for  a  fixed  period  of  time,  currently  20  years.     Innovators  that  create  useful  new  products  and  services  combine  hundreds  and  thousands  of   inventions,  discoveries,  and  patents  disclosed  by  many  humans  from  all  over  the  world.    Given  the   complexity  of  the  useful  new  products  and  services  we  enjoy  today,  licenses  from  all  these  patent   owners  are  required.  Most  innovators  are  honest,  when  provided  the  chance  to  be  honest,  and  would   license  all  the  patents  if  the  transaction  was  simple,  reasonably  priced,  and  everyone  paid  the  same   amount.  Licensing  all  these  patents  via  individual  patent  owners  is  virtually  impossible,  because  there   are  so  many  of  them.     Patent  owners,  by  virtue  of  their  public  disclosure  of  their  patent,  enjoy  both  the  right  to  allow  others  to   use  their  patented  inventions,  or  to  exclude  them  from  the  patented  invention’s  use.  Patent  litigation   today  enforces  the  right  of  the  patent  owner  to  exclude  others  from  using  the  patented  invention.  This   one-­‐sided  perspective  fosters  greed  and  conflict,  and  is  not  beneficial  to  society.  The  sole  focus  on   exclusion  is  contrary  to  the  societal  contract  that  is  the  foundation  of  patents,  i.e.  sharing  of  an   invention  with  society.     Good  ideas  will  always  be  copied  to  improve  economic  conditions.  A  brief  economic  history  of  the  world   is  as  follows.  The  United  States  was  formed  in  1776,  and  grew  by  copying  other  ideas  and  developing   some  of  its  own  up  to  World  War  I,  roughly  150  years.  In  1945,  after  World  War  II,  both  Japan  and   Germany  were  economically  devastated,  but  by  1995,  just  50  years  later,  both  were  economically   significant.  South  Korea  witnessed  Japan’s  success,  and  repeated  it  from  1970  to  2000,  and  reducing  the   time  from  50  to  just  30  years.  Taiwan  did  the  same  in  25  years,  and  the  China  became  economically   significant  in  15  years.  This  cycle  of  economic  development  will  continue  to  decrease  with   improvements  in  communications  and  transportation  technologies.  New  systems  must  be  created  to   enable  the  intellectual  property  owners  to  be  fairly  compensated  for  others  use  of  their  intellectual   property.  PatentBooks  is  such  a  system.       Human  society  determined  that  clean  water  and  electricity  are  important  to  life.  Ideas  are  just  as   important  to  life,  perhaps  even  more  so.  In  developed  areas  of  the  world,  humans  have  banded   together  to  create  electric  and  water  utility  companies,  which  deliver  electricity  and  water  efficiently  to   customers  who  all  basically  pay  the  same  rate  for  only  the  amount  of  electricity  and  water  they   consume.  PatentBooks  brings  “utility  company”  efficiency  to  patent  licensing.   PatentBooks  simply  eliminate  the  friction  and  high  cost  of  patent  licensing  and  litigation.  PatentBooks  is   a  Good  Business  that  provides  a  platform  for  efficient  legal  access  to  all  the  world’s  patented   technologies  while  highlighting  and  compensating  the  world’s  inventors  fairly  for  a  minimum  cost.    
  • 4.         PatentBooks, Inc. Page  4  of  6     Solidarity.  Human  persons  working  together  with  charity  in  truth  in  an  open  marketplace  improve  the   lives  of  all  human  persons.  Human  persons  developed  methods  of  delivering  clean  water  and  electricity   so  that  individuals  and  businesses  no  longer  must  provide  their  own.  Businesses  and  homes  in  the   developed  world  just  “connect  to  the  grid.”     The  most  important  factor  in  human  development  is  the  sharing  of  ideas.  Patents  are  society’s  best   method  for  documenting  and  sharing  inventions,  yet  compensation  mechanisms  for  using  patents  have   not  kept  pace  with  the  rapid  massive  inclusion  of  tens  of  thousands  of  inventions  into  useful  products   and  services.   Patent  ownership  includes  both  the  right  to  exclude  and  the  right  to  include,  just  as  a  glass  of  water  may   simultaneously  both  half-­‐empty  and  half-­‐full.  Patent  licensing  today  focuses  solely  on  the  patent   owner’s  right  to  exclude.    This  one-­‐sided  bias  stifles  human  creativity  and  has  massively  slowed  the  rate   of  human  development,  especially  in  the  last  20  years.  Because  of  the  complexity  of  today’s  products,   services,  and  systems,  and  the  massive  volume  of  human  creative  activity  documented  in  patents,   current  patent  licensing  systems  are  unworkable.  The  best  evidence  of  this  unworkability  is  patent   litigation.  Patent  litigation  and  its  injunctive  power  is  the  ultimate  step  in  a  patent  licensing  system   focused  on  exclusion.  Patent  trolls  appear,  as  the  financial  incentive  to  extort  compensation  by  paying  a   high  fee  to  avoid  the  even  higher  costs  and  distraction  of  patent  litigation  loom  large.     Since  a  patent  is  a  public  disclosure  of  an  invention,  the  natural  predisposition  should  be  to  focus  on  the   patent  owner’s  right  to  include  others,  provided  there  is  a  reasonable  easy  mechanism  for  both  the   patent  user  to  pay  for  patent  usage  and  the  patent  owner  to  be  compensated  for  the  use  of  his  patents.   A  patent  licensing  system  focused  on  a  patent  owner’s  right  to  include  others,  as  long  as  those  patent   users  pay  for  patent  usage,  benefits  everyone.  Fear  of  patent  litigation  disappears,  allowing  creativity  to   flourish,  resulting  in  fair  trade  between  inventors  and  innovators,  and  massive  grown  in  employment   and  economic  activity  for  all  human  persons.       PatentBooks  provide  the  licensing  platform  for  innovators  to  pay  for  other’s  patents  in  an  easy,  fair,   uniform  way,  and  provide  compensation  for  all  patent  owners,  at  the  lowest  possible  transaction  cost.     PatentBooks  allow  all  human  persons  to  align  their  unique  personal  interests  with  that  of  all  other   human  persons  in  an  industry,  eliminating  patent  litigation  by  reducing  the  cost,  complexity,  and   extortion-­‐based  incentives  of  current  patent  licensing.   We  sincerely  appreciate  the  Cardinal’s  support  and  prayers  for  PatentBooks.  If  there  is  any  other   information  we  can  provide,  please  let  us  know.       Sincerely,     Art  Nutter   A  Catholic  
  • 5.         PatentBooks, Inc. Page  5  of  6     And  Chairman/CEO  of  PatentBooks,  Inc.      
  • 6.         PatentBooks, Inc. Page  6  of  6