The problems with the USPTO are well publicized. The USPTO grants patents on software that actually prevent creativity and innovation. The USPTO grants patents on business processes which are all to often simple and obvious techniques.

The most famous example is the Amazon patent for one click purchases. Then there is the Eolas' patent on embedding components into web pages.

I think the USPTO can be fixed with one simple word: accountability. Provide the public with the name and email address of the USPTO agent that approves each patent. The number of poorly understood, poorly researched, or blantantly obvious patents would certainly decline. Who would approve the one-click patent if he knew his name would be public record on every news site pounding the drums of poor patents, not to mention the feeding frenzy from Slashdot's enthusiastic crowd.