As we watch the U.S. still deep in economic turmoil, there are many fingers pointing in various directions trying to assign blame.

Clearly one primary aspect of what has now become a systemic failure of the U.S. economy, is the trend over recent decades toward making money through whatever (usually legal, but frequently unethical) schemes seem possible, rather than as a natural benefit of building useful products and providing quality services.

Wall Street and the insurance industries, with the support of their political minions in Congress and elsewhere, are masters at this evil game, and contributed mightily to pulling our country -- and the rest of the world -- to the brink of global depression. The puppet-masters of these plans bask in ever increasing luxury, while many of the rest of us can't even afford basic medical care.

But beyond Wall Street per se, the patent wars are another example of how our economy has gone terribly wrong.

Patents were created as a means to encourage innovation and production, not as a handy mechanism for protection rackets and extortion. These are strong words, but the dictionary definitions seem to fit the way some players in this realm are behaving.

The battles over smartphone patents and Android are an obvious example. There are two main reasons for buying patents in bulk. One is to attack other entities and to try to wring money out of them. The other is to try protect yourself from such attacks.

There are light-years of difference between how Microsoft and Google have approached this area.

Google hasn't been running around demanding vast patent-related payments related to Android. Google appears to have purchased patents in this space not just to help protect itself from patent-related attacks, but to also help protect Android developers and consumers from the unwarranted penalties and costs associated with patent extortion.

Microsoft, on the other hand, has reverted "true to form" -- back to the same kind of nasty sensibilities and shenanigans that had it forcing monopolistic contracts on PC manufacturers relating to the Windows OS on a take it or leave it basis.

And Microsoft still maintains much of their ingratiating "frat boy" attitude as well.

Microsoft's lead corporate communications spokesman initially responded yesterday to Google's complaints (regarding a new predatory patent licensing agreement with Samsung) by characterizing Google's statement as "Waaaah."

In a followup tweet he then referred to Microsoft's official blog statement regarding the agreement, which invokes the ghosts of Old Chicago (unfortunately, an increasingly familiar set of ghosts these days).

Its title -- Our Licensing Deal with Samsung: How IP Drives Innovation and Collaboration is Orwellian "doublespeak" aplenty -- given that these sorts of agreements result from fears of bloodthirsty patent holders wielding patents like weapons to block innovation.

This line from Microsoft's posting is of special note: "To them, we say this: look at today’s announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn’t this provide a clear path forward?"

In other words, "Everyone else in the neighborhood is paying us so -- ya' know -- so, nothing, uh bad will happen to 'em. If you know what's good for ya', you'll see the clear path forward so that, uh, you don't suffer any unfortunate, uh, accidents or whatnot."

Somewhere in the great beyond, the spirit of Al Capone is smiling, and nodding his head in recognition. "Hey, those Microsoft boys are my kind of people!"

Capice?

--Lauren--