From my understanding of Paul Graham's Article http://paulgraham.com/msftpatent.html, IP doesn't have much affect on digital products/services. For example, youtube, tinyurl, groupon, kickstarter all have been copied. Does it not infringe IP. Can you give examples where an IP is infringed & where it is not
Is it True?
Patents are even less of a worry for free software. Even Microsoft is constrained by public opinion. Can you imagine the stink it would raise if Microsoft tried to shut down an open-source project for patent infringement? I've never heard of any company, big or small, trying to shut down an open-source project over a patent.
How is it done?
However, if you're worried about ideas being taken out of circulation by being patented, the thing to do is publish every idea you have as soon as you have it. No one can patent an idea that has already been published by someone else.
why he feels Server-Based Applications won't have a problem.
And if you want to start a startup and are worried about getting caught in a web of patents, build a server-based application. That kind of project is far too messy and hands-on for anyone to get very far into it in a corporate R&D department.