I cant really see you accepting the idea of discrimination - I mean if it's allowed one way, it'll be allowed the other. Mind you, saying that, there might be a workaround...
-tomos
The reason for it is that Fortune 500 companies are the top 500 companies in the world in terms of profitability- Company #500 on the 2012 list was showing 4.something billion dollars in profit, while the #1 had over 110 billion dollars.
Copyrights and patents were designed to protect individuals and small businesses from their larger competitors. Do the top 500 companies in the world really need that protection too, when they are almost unrivaled in capability as it is?
I think it would be better implemented as that fortune 500s could still own patents and copyrights, thus they would also be able to create new ones or buy them from people. But they would not be able to enforce them while on that year's Fortune 500 list- thus if becoming a Fortune 500 caused them to lose enough profits that the following year they aren't anymore, their IP would be enforceable again.
But it would do a great deal to eliminate such things as companies buying patents just to hide them from the public, as smaller innovators would then be free to expand on those concepts and if it annoyed the big companies enough they could simply attempt to out-compete their smaller rivals, or buy them out.
The end result would be a major boost to innovation, as smaller companies would be free to invent and develop while larger companies would have a greater incentive to continue improving their technology so as to maintain their edge over the imitations.
Companies like Microsoft who are notorious for poor quality product would very quickly lose out without a major R&D turnaround, because fortune 500 and backyard programmer alike would be able to develop drastically improved alternatives that are plug in compatible.
And it would really put a lid on the scale of this whole IP legal mess we have, because the worst offenders would suddenly no longer have the authority to pursue such things.
The obvious workaround is to simply divide up the big companies into smaller ones, because then they wouldn't be as likely to be Fortune 500. But as a side effect, their amount of pooled wealth and political sway would be greatly reduced on top of the encouraged competition.
I've yet to actually come up with any ill effects of this, if you can think of one please name it.