Riginslinger, a number of things wrong with your example of "theft" detailed in your post of 19 Apr 07 - 11:39 AM, based on the premise that Genius A developes a computer program that lets blind people speak into a mic that produces text on a page to e-mail to somebody.

"He takes his idea to Microsoft, who encourages Genius A to continue development and takes him to lunch, but they don't make him an offer. Then, after several months, when nothing develops with Microsoft, Genius A gets a bunch of his friends together, produces the product, and puts it on the market." - Riginslinger

If that is what Genius A does he's badly advised and not such a genius. He would first start his company, let fall a few leaks in the right quarters regarding what his product is, then "Microsoft" would come to him. Done the way you describe Genius A has got nothing to sell.

"In 3 to 4 months, Genius A is broke, and Microsoft picks up his patents and equipment in a "distress sale" situation, and a few weeks after that, Microsoft comes out witht exact same product they picked up from Genius A, but with their own name on it. Microsoft makes a fortune to add to the billions they already have."

On the premise that the idea is Genius A's, there is no reason whatsoever for Genius A to transfer intellectual ownership of that idea to the company he sets up, again he would be extremely ill-advised to do so. Therefore there would be nothing for "Microsoft" to buy when Genius A's company folds.