Per Bylund, “Intellectual Property versus the Unrealized,” Mises Wire (06/25/2026) (below).
Related
- Per Bylund: Intellectual Property: Innovation Should Serve Consumers, Not Producers
- Bylund: The Minarchist Statist Hangups: Anarchist Statelessness and Abolution of Intellectual Property
- Austrian Economics Center and Hayek Institute Support IP Socialism and 2026 World IP Day Coalition
- Milton Friedman (and Rothbard) on the Distorting and Skewing Effect of Patents
- Intellectual Property Advocates Hate Competition
- IP Law and “Market Failure”
- David Friedman on Intellectual Property (and Market Failure)
- Tucker: IP: It’s a market failure argument
- Tabarrok and Murphy: Why Are US Drug Prices So High?
- Related C4SIF posts
- The Problem with Intellectual Property, Part III
Per links in this article to his article “Ozempic Sat Unused for Decades Because Invention Is Not Enough,” The Daily Economy (June 25, 2026) (“Pfizer knew GLP-1s worked in 1990, but didn’t see their potential. The 30-year detour shows entrepreneurship matters as much as raw invention.”). This is also good, but a couple quibbles. In a few places he refers to ideas being “stolen”:
Business history is filled with cases in which inventors appear to have been deprived of the rewards of their discoveries. Many great inventions were, in some sense, stolen ideas commercialized by someone other than their inventors. … Some unethical behavior, fraud, exploitation, and outright stealing certainly does exist in these stories.
He links to 10 famous inventions that come from stolen ideas and The epic, decades-long battle between Ford and a small-time inventor. The latter gives the example of Robert Kearns, who invented the intermittent windshield wiper and showed it to Ford, who then allegedly “stole” it from Kearns. But as I have pointed out, it is impossible to “steal” ideas; ideas cannot be owned. Loaded terms like theft, stealing, ripping off, pirating, even “taking” are all inaccurate and imprecise. In a free market and a free society, peaceful activities like learning, copying, emulating, and competing are of course permissible as of right. It is true that in our quasi-statist world, the statist positive law corrupts natural, organic, evolved private law, which involves only offenses that are malum in se, with artificial fiat legislation, which creates offenses which are merely malum prohibitum. So copying someone’s idea is not “stealing” at all, even if the corrupt, legislated fiat law makes it an offense. But this is still not theft; it is a made up offense called infringement. Even the courts recognize this: as the US Supreme Court wrote in Dowling vs United States,
interference with copyright does not easily equate with theft, conversion, or fraud. The Copyright Act even employs a separate term of art to define one who misappropriates a copyright: “[…] an infringer of the copyright.”
It is understandable that dishonest advocates of IP socialism want to muddy the waters and use loaded terms with negative connotations to describe what is simply peaceful behavior—learning, copying, emulating, competing—as stealing, but when even the courts concede that these offense are not actually theft or stealing but only a made-up tort of “infringement,” we free-market opponents of IP socialism should not use the socialists’ dishonest and inaccurate terminology.
Related
- Copying, Patent Infringement, Copyright Infringement are not “Theft”, Stealing, Piracy, Plagiarism, Knocking Off, Ripping Off
- Lacalle on China and IP “Theft”
- More of the “China is Stealing Our IP” nonsense
- All-In Podcast Concern over China and IP “Theft”
- A Libertarian Theory of Contract: Title Transfer, Binding Promises, and Inalienability, at n.31
- The Problem with Intellectual Property, Part III.A.3
- Owning Ideas, Owning Bitcoin, Owning Fiat Dollars
- Another way to explain the problem with IP: Resources v. Knowledge; Ownership v. Possession
- Munger on Property Rights in Words and Information
- other posts and articles on the impossibility of “owning ideas“
Intellectual Property versus the Unrealized
Per Bylund • Mises Wire • 06/25/2026
W
hy would anyone invest large sums of capital into creating something new of uncertain income? This question captures the core of the argument for intellectual property, or the legal protection of inventors’ ideas from being copied and put to broader use. The simple logic appears intuitive and therefore persuasive, but does not stand up to scrutiny. Why? Because it applies to all entrepreneurship, which is always an investment in something of uncertain value. Yet this does not seem to stop entrepreneurs. Or, rather, it moderates which entrepreneurial projects are undertaken so that the craziest ideas are not pursued unless they are potentially very profitable. [continue reading…]




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