Note that the rules are different (and probably less broken) elsewhere in the world. However, the US market has a tendency to affect people outside its borders and force the system on others via treaties.
But right now, one option for non-US software startups is to sell only to Europe and counties with sane patent systems.
"... However, the US market has a tendency to affect people outside its borders and force the system on others via treaties. ..."
That is an understatement ~ "IIPA would rather people "pirate" than switch to legal competitors" ~ http://www.digital-copyright.ca/node/5115 The http://www.iipa.com/ represent publishers, music, picture, entertainment software, business software. All American
What specific rules do you refer to? I'm not under the impression that things have ever been any better elsewhere. Europe does recognize "prior user rights," which is a step in the right direction, but (at least in the UK) it still requires that the prior user have taken a significant step towards commercialization to benefit. I don't think that would really help US software startups.
In a summarising comment: "The best choice [for web video] will always be a deeply patent-encumbered format until someone gets rid of software patents. There is no other feasible solution."
It's great to know that the he's given up on patents but for once I'd like one of these guys to propose a workable way to actually get rid of them.
I myself have no clue how you could go about it. But saying they have to go without proposing a way to get rid of them doesn't actually help the issue very much.
But right now, one option for non-US software startups is to sell only to Europe and counties with sane patent systems.