So if I design a CPU that has a couple of op-codes that are carefully designed to implement that functionality then because it uses software then it works round the patent?
No the hardware in the CPU falls under the patent not the software using the hardware; the people making the CPU have to license the patent. Or would you claim that one can't write software for this CPU without taking a license on the patent ?
With all patents it's possible for multiple people to come up with the solution, the patent system rewards the person who files first. It's assumed they are the ones that put the most effort and money into it.
Effort and money is not related to patentability; see
this for one of the requirements. A patent has to be more than some (tough) engineering and being first. And yes, I do think this rule is not applied strict enough. Problem is that there is not enough incentive for an examiner to be very strict, agreeing with a patent proposal is easier than back-and-forth bickering.
Let me tell you I went through this mumbo-jumbo a few times and am listed as inventor on a few patent (the rights are with my employer though). But this only enforced my belief something is terribly wrong in the current patent system.
Because people talk as if software patents are the only bad ones out there, just because you can find a bad software patent doesn't mean that they are all bad.
As said before, for software copyright is enough to drive innovation and lack of patents won't stop people writing software as they can't earn back their investment. In software, patents are hampering innovations and favoring the behemoths. Even very smart programmers don't need or deserve a 20 year monopoly on their ideas in the fast-paced software world.