"But a company like Google has the resources to fight dubious patents. When the average patent case is costing $5 million and up, the real cost is to the small companies, the startups."
Startups have been resistant to this so far by following pg's advice of simply ignoring patents until you're big enough to matter. If things keep going as they are though the ecosystem could seriously be disrupted. If that ever happens it could be disastrous for SV and possibly the US in general as it seems there can only be one true startup hub, once you lose it it's probably gone.
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