1. 1 Patent Outcome Region (t = 80%) a b c

2. 2 Quality Improvements in the POR (t = 80%)

3. 3 The Good, the Bad… (t = 100%)

4. 4 All Patents Are Not Equally Good (t = 100%)

5. Socially Optimal Policy (t = 100%) Best Patent Policy

6. POR Volume (length, height, and width) POR (length = 100%) POR (length = 2%)

7. Social Optimal Policy (for each patent length) r t s POR (length = 100%) POR (length = 2%)

8. 8 Should Software Patents Be Shorter?

9. 9 Impact of the Innovator’s Production Efficiency on the POR