You can still be the first to bring a product to market and you have the people who will have the best knowledge because they developed it. Also don't underestimate the willingness of people to _want_ to research. And lets not forget that companies in Europe do not have software patents (yeah, some gray area still exists...) and still do research, so we already know the software world won't break down without software patents.

And while your arguments are still valid to a certain extend - it has to be evaluated against the costs of the patent system and the benefits you'll get from erasing the patent system. For example right now every startup-up is in danger of running into patent troubles unless they start pair-coding with a lawyer. People avoid looking at patents because they are scared of treble damages and people avoid coding optimal solutions trying to work around patents. Companies can block each other and managers and investors are in a constant state of risk that their coders will violate patents (mostly without even knowing it). Patents are no longer used to boost innovation, but they are used primarly as a weapon.

I completely agree that the current system is broken. I just disagree that we should abolish the system entirely. Some very smart people saw this need and I don't think they were wholly wrong.

Personally, I think the problem with patents is the are of the "who did it first" variety when they should only be of the "no one would have come up with this without me" kind.

That is, if your "idea" involves scribbling something obvious down and sending off for a patent as soon as possible (e.g. this new in-App purchase patent is a good example) then it shouldn't be patentable. For me, I would see something patentable in how Apple did the iPad. Everyone was trying things in the tablet space for years but it wasn't until the iPad that we all finally got it.

I would also make patents shorter and non-renewable. Renewable patents are just a monopoly on ideas.