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Is there any reason the algorithm couldn't remain a trade secret?

Reverse engineering.

And is there any possible scenario where the long term good that comes from this patent will outweigh the long term good that will come from untethered innovation?

Perhaps. In those situations where there would otherwise be no commercial development at all without the prospect of the monopoly a patent affords. In software, I would posit that there's more good that comes from the innovation.




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