Intel's Grove: Something foul in Silicon Valley

Grove spoke after receiving a lifetime achievement award at the 37th annual National Inventors Hall of Fame induction ceremony gala. The awards, sponsored by nonprofit Invent Now, also recognized 15 pioneers in the semiconductor and related industries.Grove called this a break from past practice. "The most important invention of our industry, the invention of the transistor, was licensed by AT&T for $25,000," he said. "This allowed the transistor industry to develop and become a flourishing manufacturing industry in the United States."

Speaking to a diverse Silicon Valley audience that included Gordon Moore (founder of both Fairchild Semiconductor and Intel); Ted Hoff (co-inventor of the microprocessor); Carver Mead (VLSI concept); Intel CEO Paul Otellini; and Apple co-founder Steve Wozniak, Grove said the patent system is slouching toward the model that precipitated the financial crisis in the U.S. Not today, in his eyes. "The patent product brings financial derivatives to mind," he said. "Derivatives have a complex relationship with an underlying asset. While there's nothing wrong with them in principle, their unfettered use has damaged the financial services industry and possibly the entire economy.