The US Patent system fails the software industry because it actually discourages software innovation. The problem arises because patent laws and institutions have created patent-based property rights with fuzzy boundaries that cause excessive litigation. Prof. Meurer will present empirical evidence from his recent book (co-authored by James Bessen), Patent Failure, which quantifies the cost to innovators caused by inadvertent patent infringement, and suggest reforms that are needed to make patents work more like a property system should.