Joel Jameson, the founder of Silicon Economics, Inc. is suing the FASB. He filed for a patent for his invention called “EarningsPower Accounting,” and claims that the FASB has infringed upon the patent. Jameson claims that his invention is a patented method developed by the company to improve the accuracy, validity, and usefulness of financial statements. SEI’s attorney claims that “FASB’s unlawful attempt to appropriate SEI’s intellectual property undermines innovation and competition, and harms the US economy.
1. Look at the actual filing. According to the suit, what are the problems with FASB’s standard setting process and how did these cause harm?
2. Based on the sources below, what will Mr. Jameson’s invention address as a significant factor in the recent economic crisis?
3. What is your opinion about Mr. Jameson’s chances to prevail in this action? Support your reasoning.
Ketz, J.E. (2010). The Accounting Cycle: Silicon Economics v. FASB, Accounting Smart Pros, May 6 (Retrievable online at http://accounting.smartpros.com/x69458.xml)
Northern District of California, U.S. District Court (actual filing). (2010). Silicon Economics, Inc. v. FASB, May 5 (Retrievable online at http://www.siliconeconomics.com/pdfs/Complaint_SEI_v_FASB1.pdf)
PR Newswire – Europe (2010).FASB Defendant in Suit Alleging Antitrust Violations and Patent Misappropriation, iStockAnalyst, May 6 (Retrievable online at http://www.www.istockanalyst.com/article/viewiStockNews/articleid/4094646)
Anonymous. (2010). Financial Accounting Standards Board Sued Over Rights To Commenter’s Thoughts, Anti-trust Today, May 18 (Retrievable online at http://www.antitrusttoday.com/category/antitrust-law-and-monopolies/)