In a report in The New York Times this week, judges, scholars and executives said that in technology fields, “the marketplace for new ideas has been corrupted by software patents used as destructive weapons.” But certainly the protections for intellectual property – like pharmaceuticals, movies and other inventions – also fuel creativity, in part by giving investors enough confidence to open their wallets.

On balance, does intellectual property law encourage or discourage innovation?

Pharmaceuticals and movies are made by organizations that have huge budgets.

The small, defensible company doesn't have the pockets to defend itself.

The rule seems to be: Get big fast, or risk being sued out of existence.

but is that good?

I suppose that's what they mean when they say "secured enough funding to weather short-term disruptions"...

Yes, that's exactly what they mean.