The line is drawn where the invention stops being a part of the useful arts, and an algorithm on its own is not useful, but a system using a new algorithm is indeed useful, and that's where the distinction between algorithms and software lies.
Patent thickets are indeed an issue, but they've been an issue several times in the past and the world didn't stop turning. See http://www.ft.com/cms/s/2/69a96688-b776-11e2-841e-00144feabd... for a brief discussion. I completely agree the patent system is not perfect, but I do believe it's important to allow the small guy to come up with new inventions, be it software or not, and be able to protect themselves from having the big guy steal their ideas with nothing in return.
The patent system is a man made system, and all man made systems will be exploited by man if it is in their best interest, and that's exactly what big corporations are doing. But without the system, the little guy stands absolutely no chance against the big guy and with it they do. This is how innovation is encouraged by the patent system. You bet your arse that when a small company funded by those here gets their ideas stolen that people here will be up in arms. But if they have parents, they have a real method of recourse, whereas without, all they can do is call them out on it, but have no guarantee that they'll get anything at all. Without the patent system, we'd get rid of patent trolls, but we'd being in the much worse "Idea theifs", who steal the work done with other's time and investment to produce products for their own profit.
Patent thickets are indeed an issue, but they've been an issue several times in the past and the world didn't stop turning. See http://www.ft.com/cms/s/2/69a96688-b776-11e2-841e-00144feabd... for a brief discussion. I completely agree the patent system is not perfect, but I do believe it's important to allow the small guy to come up with new inventions, be it software or not, and be able to protect themselves from having the big guy steal their ideas with nothing in return.
The patent system is a man made system, and all man made systems will be exploited by man if it is in their best interest, and that's exactly what big corporations are doing. But without the system, the little guy stands absolutely no chance against the big guy and with it they do. This is how innovation is encouraged by the patent system. You bet your arse that when a small company funded by those here gets their ideas stolen that people here will be up in arms. But if they have parents, they have a real method of recourse, whereas without, all they can do is call them out on it, but have no guarantee that they'll get anything at all. Without the patent system, we'd get rid of patent trolls, but we'd being in the much worse "Idea theifs", who steal the work done with other's time and investment to produce products for their own profit.