The patent system in this country is just screwed up beyond belief and repair. It's a serious problem that's hurting industries in this country and preventing them from coming up with new ideas and innovation.
Care to explain? As a patent attorney I hear a lot of folks making the same claim, but rarely do those individuals have any substance to back it up.
FWIW, the basic premise of patent law ("Congress shall have power . . . To promote the progress of. . . useful arts, by securing for limited times to. . . inventors the exclusive right to their respective. . . discoveries.") is in the constitution, and is based on the provision of exclusive rights to inventors. Since that time, IP has been treated as property that can be freely transferred between parties.
That being said, the major complaint I hear about the patent system is about how patents prevent others from innovating. This is a typical comment made when some news source (NPR, CBS, etc.) reports on a particular patent case where some big company sued a smaller company for patent infringement and won. Many folks seem to think that this is somehow inherently wrong, and stifles innovation. But given the origins and intent of the patent law, I believe that the opposite is true. Specifically, I believe that the patent law as presently formulated operates specifically as intended by the founding fathers. That is, it provides exclusive rights to inventors for a limited time period, AND it encourages creativity and invention by providing motivation in the market place for companies and individuals to seek out alternative methods of accomplishing a goal. Moreover, the trailing return to the storehouse of public knowledge (i.e., the contribution of expired patents and published applications to the public) is enormous.
As to the patent "system" as a whole, there is no question that the examination process could be improved. Unfortunately, most of those improvements cannot be implemented by the USPTO, as it has relatively limited agency authority (don't beleive me? Read up on the Tafas v. Dudas challenge to the PTO's rulemaking authority in 2007-2009). Thus, if significant changes to the examination process are to be made, they must be implemented by federal legislation.
You may be interested to know that in the past 3-4 months, the Senate and the House have each passed bills that are aimed at reforming certain aspects of the patent system. Those bills have some common provisions, so there is some expectation that we will see patent reform legislation passed this year.
Unfortunately, there is not much in either bill that will be perceived by the public as being aimed providing an immediate improvement to patent quality. The one exception is that one (perhaps both) bills would add a post allowance (maybe post grant) review process that would allow the public to submit prior art against to be issued (or newly issued) patents. This is similar to the opposition proceeding that is currently used in Europe. Apart from that change, however, there is little in either bill that smacks of improvements to patent quality apart from (if my recollection is correct) terms that would limit or eliminate raids on the PTO's funding. In the past, congress has appropriated funds that were paid by inventors into the patent system (and which were intended to support the examination function) and applied the to other government programs. Those raids have hamstrung the ability of the USPTO to hire and train examiners, which has lead to further increases in the application backlog and increased pressure on the USPTO to move through cases (all of which lead to decreases in patent quality).