Related:
- Jeffrey A. Tucker on Intellectual Property (April 13, 2025)
Jeff Tucker’s Ideas, Free and Unfree: A Book Commentary is a fantastic compilation of his commentary on Boldrin and Levine’s Against Intellectual Monopoly. (It’s also in his book It’s a Jetsons World: Private Miracles & Public Crime (2011).) The full article is here; archived comments from the blog are below.
[Against Intellectual Monopoly • By Michele Boldrin and David K. Levine • Cambridge University Press, 2010 • 306 pages]
“This book helped me see the world more clearly and understand so much that had previously remained cloudy.”
- Introduction
- A Book That Changes Everything
- Authors: Beware of Copyright
- What is Your Attitude Toward IP?
- The Universals of IP Theorizing
- Does Monopoly Create Wealth?
- Does Innovation Require Property in Ideas?
- Seen and Unseen Cost of Patents
- The Book and Music Killers
- Back to Basics on Property and Competition
- Fallacy Run Amok
- The Hoax of Invention History
- Do Patents Save Our Lives?
- The Mercantilism of Our Time
Update: Kinsella, Authors: Don’t Make the Buddy Holly Mistake and Jeffrey A. Tucker, Authors: Beware of Copyright (also in his Bourbon for Breakfast, along with related chapters: “”If You Believe in IP, How Do You Teach Others?”, “Is Intellectual Property the Key to Success?”, “Books, Online and Off,” and “Mises.org in the Context of Publishing History.”
March 18, 2011 at 8:42 am-
Hey Jeff,
I’m putting this into the epub format, I have done 7 of 10 chapters. Would you be interested in putting it up here at the Mises Institute?
March 18, 2011 at 10:36 am
March 18, 2011 at 4:23 pm-
Jeff,
There are so many issues I would like to take up with you on this article, but in the interest of time, I’ll highlight this one:
Imitation in economic affairs is essential for development, since nothing is ever perfect right out of the box, and society is constantly changing.
In order to make this an anti-IP argument, you would need to demonstrate that IP laws prevent this from happening. You can only do this by a logical conflation of “ideas” about economic affairs, and the “expression” of the actual business operation of these affairs.
For example, presumably at some time in the past an enterprising person hit on the idea of cooking more than is needed for the immediate family and selling the excess production to those who prefer to paying to cooking; the idea of a restaurant was born. If what you said here was true under IP laws, then for the protected period no one else could own the ideas of “restaurant”. Look around, this is clearly not the case. Any strip mall in American clearly demonstrates the abundant variations on theme. There is little danger that Taco Bell will be confused with McDonalds. Each are unique imitations of the “idea” of restaurant, though each are also completely original “expressions” of the idea.
Likewise by conflating “ideas” with “original works” you claim that under IP laws, “ideas are unfree”. This is a total equivocation and factual fallacy. You are a victim of Kinsella’s propaganda about the non-scarcity of ideas being a reason that the operation of IP laws are illegitimate. They are no such thing, at least for this reason he and you claim.
March 18, 2011 at 5:10 pm-
Wildberry,
In order to make this an anti-IP argument, you would need to demonstrate that IP laws prevent this from happening.
Let’s skip over the obvious and let me ask you this: what’s the difference between creating copies and imitating?
If what you said here was true under IP laws, then for the protected period no one else could own the ideas of “restaurant”.
According to current laws, you are mostly right (there is always some sort of exception). However, the example still matches the theoretical justifications for IP that the proponents thereof formulate. You have all the components present: the act which is considered “original” and people who are influenced by it and acting in a similar way. Why should the economic principles underlying the example with a restaurant be different than if the “original” was a book?
There is little danger that Taco Bell will be confused with McDonalds.
If there was such a danger, would that mean that one of them can sue the other? Why? Shouldn’t it be the customer that is the victim?
Likewise by conflating “ideas” with “original works” you claim that under IP laws…
Unless you can show me an example of an idea that is detached from a physical phenomenon, the objection makes no sense.
You are a victim of Kinsella’s propaganda about the non-scarcity of ideas being a reason that the operation of IP laws are illegitimate.
Whether IP laws are legitimate or not is of a secondary importance. What is of primary importance that the proponents thereof cannot provide a coherent theory explaining them.
March 18, 2011 at 5:52 pm-
WB, read the book. I believe you’d find that we are at least a century behind technologically than we would be without IP laws.
And I know the above is a bald assertion (and it’s meant to be), so read the book to find out!
March 18, 2011 at 6:28 pm-
“You are a victim of Kinsella’s propaganda about the non-scarcity of ideas being a reason that the operation of IP laws are illegitimate. They are no such thing, at least for this reason he and you claim.”
Oh that bastard Kinsella and his propaganda!
I actually reached exactly the same conclusion that Kinsella did before I ever read any of his writings, or the writings of any other anti-IP libertarians. Scarcity, which is more accurately called rivalry, is the reason why property rights exist and how goods become economized.
Over and over I have heard IP proponents say, “nuh uh” to this. Yet none of them have been able to come up with a single example of the use of an idea ever being rivalrous, nor do they respond with their own explanation of why property rights exist.
So easy to condemn, so hard to create.
IP proponents have no property rights theory, they just ad hoc postulate what is wrong with the property rights theories that are presented. Case in point, you simply say, “They are no such thing, at least for this reason he and you claim”, and leave it at that. I beg to differ. Ideas are non-rivalrous, they will always be non-rivalrous, and that means there are no property rights in ideas. That is because rivalry is a necessary condition for conflict to arise over the use of goods, and property rights exist only to resolve conflicts over the use of goods. Where there are no conflicts, this is no property, nor are the property rights. Property is about exclusion, and you simply cannot exercise exclusion over the use of an idea.
“Likewise by conflating “ideas” with “original works””
Once again, as I have pointed out over and over, you make use of a concept that has no definition, which is “original work”. I can already anticipate your response, which is, “I don’t have to define it, the law does that and you can look it up.” Suffice to say this is pretty lame, since it would be trivially easy for you to copy and paste this definition and shut us up for good, of course if it actually existed.
There is no definition of “original work”. You can stipulate definitions all day, but stipulative definitions don’t establish anything, they only clarify one’s use of language. You have never provided a definition of original work that isn’t completely arbitrary, and you never will because it doesn’t exist. Another usual response to this charge, which is even lamer than the previous one, is to say “nothing is ever clearly defined so this isn’t a problem”. I find it difficult to make a serious response to this.
To reiterate, “original work” is an empty vessel of language that gets filled up by those who use it on a per-case basis, differently every time. It has no definition.
March 19, 2011 at 4:15 am-
sweatervest,
I actually reached exactly the same conclusion that Kinsella did before I ever read any of his writings, or the writings of any other anti-IP libertarians.
By the way, I reached a precursor to this realisation also several years before I even knew anything about the Austrian School. It was during one of the times when there was an effort to push software patents through the European Parliament. I protested because the introduction of software patents would have expropriated the rights that I had through copyright. What’s the point of software patents when software is already covered by copyright, I asked. It was obvious to me already that these are mutually exclusive, even though I tended to approach economic questions from a utilitarian perspective. Later after being exposed to Stephan’s writings I realised that the same can be said about copyright: what’s the point of copyright when “original works” are already covered by physical property rights? It was a natural evolution.
Even many IP proponents realise this self-contradictions in their claims, just their brains stop in the middle of the argument. Must be cognitive dissonance.
March 19, 2011 at 1:07 pm-
@sweatervest March 18, 2011 at 6:28 pm
Certainly at this point I am not afraid of reading yet another article or book making the same case on the same arguments.
What I don’t know how to do is to get a response that is actually relevant to what I’m raising. Let’s give you a try.
Yet none of them have been able to come up with a single example of the use of an idea ever being rivalrous, nor do they respond with their own explanation of why property rights exist.
We can discuss the concept of property another time. For now let’s just agree that if you own property, you have monopoly rights in its exclusive possession and use. “Ownership” means “dominion and control”.
Let’s discuss the subject matter of IP, specifically Copyright, as you raise below.
Do you realize that if you argue that “ideas are free”, you are making the EXACT SAME ARGUMENT as IP law does? How do you argue against something for doing exactly what it DOES NOT DO?I am asking what your basis is for conflating “ideas” and “original work”. If “ideas are free” and IP laws do not contradict that notion, why do I have to come up with an example that tries to prove something that is not true, and is not the subject of IP laws in the first place?
IP proponents have no property rights theory, they just ad hoc postulate what is wrong with the property rights theories that are presented. Case in point, you simply say, “They are no such thing, at least for this reason he and you claim”, and leave it at that.
First, I don’t speak for anyone and no one speaks for me. I you want to take issue with something I said, go for it. Otherwise, leave me out of your generalizations.
My general theme here is the willingness to abandon discretion between one thing and another in order to support a conclusion. It is the fallacy of conflation and equivocation.
Second, I don’t know if you read anything else I’ve posted here, but I reject homesteading as the only POSSIBLE way for property rights to arise. Even if I didn’t, I can’t get you off the notion that “ideas are free” and so ideas can’t be property. Who but you and other opponents claim they are property? Not me.
I beg to differ. Ideas are non-rivalrous, they will always be non-rivalrous, and that means there are no property rights in ideas.
See, I get it. Now make your argument against IP without using “ideas are free”.
Once again, as I have pointed out over and over, you make use of a concept that has no definition, which is “original work”. I can already anticipate your response, which is, “I don’t have to define it, the law does that and you can look it up.” Suffice to say this is pretty lame, since it would be trivially easy for you to copy and paste this definition and shut us up for good, of course if it actually existed.
OK, let’s start with this. This is quoted directly from the Copyright Act.
§ 101. Definitions
“Literary works” are works, other than audiovisual works, expressed in words, numbers, or other verbal or numerical symbols or indicia, regardless of the nature of the material objects, such as books, periodicals, manuscripts, phonorecords, film, tapes, disks, or cards, in which they are embodied.
§ 102. Subject matter of copyright: In general
(a) Copyright protection subsists, in accordance with this title, in original works of authorship fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. Works of authorship include the following categories:
(1) literary works;
(2) musical works, including any accompanying words;
(3) dramatic works, including any accompanying music;
(4) pantomimes and choreographic works;
(5) pictorial, graphic, and sculptural works;
(6) motion pictures and other audiovisual works;
(7) sound recordings; and
(8) architectural works.(b) In no case does copyright protection for an original work of authorship extend to any idea, procedure, process, system, method of operation, concept, principle, or discovery, regardless of the form in which it is described, explained, illustrated, or embodied in such work.
There is no definition of “original work”.
The requirement of “originality” has two facets: First, the author must have engaged in some intellectual endeavor of her own, and not just have copied from a preexisting source. Second, in addition to being the author’s independent creation, the work must exhibit a minimal amount of creativity.
The application of this “arbitrary” standard has been well established in case law. For example see Feist Publications, Inc. v. Rural Telephone Service Co, Inc. 499 U.S. 340 (1991) where it was ruled that white pages listings were not “original” because they lacked the creative component.
Case law also has established that short phrases, slogans, etc. are not subject to copyright protection.
§102(b) is designed specifically in service of one of the two primary objectives of Copyright law; to protect the public domain. To this end, ideas etc. are specifically excluded from protection. In addition, once something enters the public domain, regardless of how it gets there, it can NEVER be removed.
Kinsella says,
“Ideas” is just a synonym for patterns, information, knowledge. IP does in fact grant property rights in some ideas, but not in all of them. This is not controversial. So waht if the law disclaims it? The copyright law protects the expression of an idea, and patent protects the underlying functional aspect of ideas. This is just another way of saying IP does protect rights in (some) ideas. Thank God it does not protect all ideas, but only a subset.
Although this a major waffle, Kinsella does finally admit that there is a DISTINCTION here between the concept of “idea” and IP protection of “(some) ideas”. I am simply saying that that distinction is important. If you are going to oppose IP, do it for what it DOES, not for what it clearly and explicitly AVOIDS DOING.
To reiterate, “original work” is an empty vessel of language that gets filled up by those who use it on a per-case basis, differently every time. It has no definition.
Still think so? If you want to argue against the concept and ideal of IP, just take an original work, say Gone with the Wind, and argue that it is nothing more than an idea, and is therefore exempt from protection, and you will have completely dismantled Copyright legitimacy. Go for it.
You and Peter may be proud of yourselves for anticipating Kinsella’s position and then recognizing your established view in his works, but without reference to what actually exists and how it operates, you are just making stuff up and telling yourself how smart you are to oppose the very straw man you construct. Not exactly an epic accomplishment, IMHO.
March 21, 2011 at 7:44 am-
Scarcity, which is more accurately called rivalry, is the reason why property rights exist and how goods become economized. Over and over I have heard IP proponents say, “nuh uh” to this. Yet none of them have been able to come up with a single example of the use of an idea ever being rivalrous, nor do they respond with their own explanation of why property rights exist.
Your consistent use of the words “them” and “they” is a bit troubling – I will agree it is a lot of fun to attack imagined enemies that exist in your own head, they are much easier to beat that real ones. But it does not really advance the debate much.
As for this sentence which you regard as so self-evident that only obtuse morons could disagree – “Scarcity, which is more accurately called rivalry, is the reason why property rights exist and how goods become economized” – I believe it contains three distinct elemtents, and i disagree with two of them and find the last incoherent.
IP proponents have no property rights theory, they just ad hoc postulate what is wrong with the property rights theories that are presented.
Schulman has a property rights theory – “logorights”. You can disagree of course – I personally don’t favour this approach myself as it happens – but it is a coherent theory and worthy if debate, I would defend that aspect of it. If you do disagree, why not read it and post some comments to demonstrate how he has “no property rights theory” to speak of and how it is “ad hoc” etc. so as to start an actual debate about something concrete instead of pining and howling into the sky about how lame are those who don’t seem to share your absolute 100% conviction that ancap is heaven on earth.
Ideas are non-rivalrous, they will always be non-rivalrous, and that means there are no property rights in ideas. That is because rivalry is a necessary condition for conflict to arise over the use of goods, and property rights exist only to resolve conflicts over the use of goods. Where there are no conflicts, this is no property, nor are the property rights. Property is about exclusion, and you simply cannot exercise exclusion over the use of an idea.
I make no apologies for not being convinced byt this “argument”. Can you precisely articulate your argument for non-ancappers? I’m doing a bit of a survey. You appear to be with Peter, for whom “vagueness” is a big problem – is this correct?
March 21, 2011 at 9:28 am-
Kid Salami,
Schulman has a property rights theory – “logorights”. You can disagree of course – I personally don’t favour this approach myself as it happens – but it is a coherent theory and worthy if debate, I would defend that aspect of it.
I respectfully disagree. Schulman’s theory has at least two problems. The first one is that, just like almost all IP proponents, it does not address the problem that it expropriates physical property. The second one, which I have not formulated earlier but referred to in examples and questions, is that that the violations of property depend on the intent, rather than the action, of the potential violator. That’s a big scientific no-no.
March 21, 2011 at 11:01 am-
“The first one is that, just like almost all IP proponents, it does not address the problem that it expropriates physical property.”
It is impossible to “address” this problem with an ancapper.
“The second one, which I have not formulated earlier but referred to in examples and questions, is that that the violations of property depend on the intent, rather than the action, of the potential violator. That’s a big scientific no-no.”
Can you clarify this complaint? For example, let’s start with Kinsella’s words (as usual) from “Causation and aggression”:
“Intent matters because without intent there is no action and without action there is no actor to whom we may impute legal responsibility. If A did not intend to do anything at all, then we cannot determine that A’s actions caused the death of B—because A took no action. Intent is a necessary ingredient in human action; if there is no intent, then there is no action, only behavior: involuntary physical movements guided by deterministic causal relations.”
So firstly, do you agree with Kinsella’s argument? If not, maybe you could say how. If you do agree, how would you square your complaint “the violations of property depend on the intent, rather than the action, of the potential violator”.
March 21, 2011 at 11:45 am-
Kid Salami,
It is impossible to “address” this problem with an ancapper.
You misunderstand. All I need is for the IP proponents to admit it.
Can you clarify this complaint?
Hopefully, see below.
So firstly, do you agree with Kinsella’s argument?
I am not 100% sure, but let’s just say for the time being yes.
My point is that the intent cannot determine whether rights are violated. It can only determine who the person responsible is, and/or what the appropriate compensation/punishment would be. That is why, for example, the law differentiates between murder, manslaughter, negligent homicide and so on. Based on Kinsella’s article, you could argue that in case of killing in self-defence it’s the original attacker (who subsequently died) who is responsible for his own death (cue obligatory Terry Pratchett quote about suicide in Ankh-Morpork).
Some IP proponents (e.g. Schulman) argue, for example, that copying for educational or satirical purposes is ok, but not for profit. Why? Should we then be allowed to steal or kill for educational or satiric purposes too? The argument makes no sense.
March 21, 2011 at 12:46 pm-
@The Kid Salami March 21, 2011 at 11:01 am
I have been following your exchanges closely.
“The first one is that, just like almost all IP proponents, it does not address the problem that it expropriates physical property.”
It is impossible to “address” this problem with an ancapper.
The argument as I understand it is that limiting the use of property for infringing acts of “copying” is an “appropriation” of private property.
First, this depends on assuming that the enforcement is an act of aggression, which requires an assumption that no rigt exists in the “aggressor” in the first place.
Second, it equivocates that “limits on use” equates to “appropriation of property”. As I’ve pointed out, all property works exactly the same, even Kinsella agrees with this, yet he continues to state it this way. A bat cannot be used to bash in my brains. Limiting this use does not mean I have claimed your bat as mine. This argument makes no sense in the fist place, so I don’t know how you could argue against it.
So I agree, to go around this track one more time is idiotic.
Can you tell me where you pulled the Kinsella quote? I have this argument with him earlier using the concepts of actual and proximate cause. What he is talking about here is proximate cause; the connection of an act or object of injury, and the liability for it by a specific person.
Based on this quote, he seems to be contradicting what he said to me. I’d like to run it down.
Regards,
March 21, 2011 at 1:08 pm-
Peter
“You misunderstand. All I need is for the IP proponents to admit it.”
It’s true – of course. But it is a request bit of a “when did you stop beating your wife” type request. If I don’t accept the NAP, then yes I agree that I advocate “aggressive” action against people who have not committed a border invasion. Anyone for a law against, say, blackmail is advocating the same thing. I think that you can’t advocate your view and simultaneously be for an advanced division of labour society.
“My point is that the intent cannot determine whether rights are violated. It can only determine who the person responsible is, and/or what the appropriate compensation/punishment would be….Some IP proponents (e.g. Schulman) argue, for example, that copying for educational or satirical purposes is ok, but not for profit. Why? Should we then be allowed to steal or kill for educational or satiric purposes too? The argument makes no sense.”
I think that’s pretty clear. I don’t agree though, for well documented reasons (I still don’t see anything other than the NAP in a cheap moustache-glasses type disguise), so there is not much more to say until I present an actual coherent theory.
March 21, 2011 at 1:16 pm-
Wildberry
“The argument as I understand it is that limiting the use of property for infringing acts of “copying” is an “appropriation” of private property.”
This is my understanding also. I agree that it makes no sense – it is assuming its conclusion. In fact, it simply IS a conclusion.
“Can you tell me where you pulled the Kinsella quote? I have this argument with him earlier using the concepts of actual and proximate cause. What he is talking about here is proximate cause; the connection of an act or object of injury, and the liability for it by a specific person.”
Paper is here
http://mises.org/journals/qjae/pdf/qjae7_4_7.pdf
It makes sense when read on its own. However, the reasoning contradicts many other things he has written – so if you have other instances, I won’t be surprised.
March 21, 2011 at 1:24 pm-
I stumbled upon this exchange the other day, between Reisman and Kinsella regarding trademarks, which I thought was interesting if anyone wants to read it. Reisman makes a couple of points that I would make myself.
http://blog.mises.org/7409/trademark-and-fraud/
And the scenario he puts to Kinsella involving Oskar Lange made me laugh out loud.
March 21, 2011 at 1:42 pm
March 21, 2011 at 2:01 pm
March 21, 2011 at 2:22 pm-
Stephan Kinsella March 21, 2011 at 1:42 pm
You just dont grok it yet. You will, you will. You will be assimilated.
Yes, resistence is futile. LOL
March 21, 2011 at 3:56 pm-
@Stephan Kinsella March 21, 2011 at 1:42 pm
This is what “I” think:First, the flashing of your life in your photo album while I’m trying to read is a little distracting, but whatever….
Second, the very first exchange explains Kid Salami’s comment about why it is impossible to discuss this “outside the circle” of your ancap logical structure.
If IP really were a valid right, then a person *would* have “a right to use *force* against another to prevent them from using *their own property* to reproduce the aforementioned creator’s work”. That’s what the word “property” implies! For instance, let’s say that you own a gun. Let’s say that I own a dog. By virtue of my ownership of the dog, I *do* have the right to use force against you to prevent you from using your own property (your gun) in any way you might wish (e.g. if you wish to shoot *my* dog with *your* gun). Similarly, any property right implies the right to use force to limit what another can do with their own property.
Sure. And if chattel slavery were valid, the whipping of one’s slave would not be aggression. And if pigs had wings they could fly. But chattel slavery is not valid, and pigs do not have wings–and IP is also not valid
Which all amounts to the following type of exchange: “You did too!” “No, I didn’t!” “Did too!” “Nah uh!”, etc. etc. etc.
If IP rights existed, protecting them would not be aggression. If they don’t exist, it would be. Yawn…
Thing is they DO exist (in reality) and you think they shouldn’t. Well we can argue all day, but until you win (we all live in Ancap bliss), they do and they will, and most people see the common-sense principle embodied in them. One day you will wake up and realize you have been living on the dark side, Borg notwithstanding. (Sorry to mix metaphors…)
As for the second link, I select this illustration of the futility of resistance:
It does not assume that ONLY scarce things are property, but it assumes that scarce things ARE property–don’t we all agree on this? The one that is up for debate is property in anything else. My contention is that assigning rights in non-scarce things necessarily undermines rights in scarce things. Since we all agree with rights in scarce things, we should oppose the type of rights-inflation that undermines this.
Surda:
any theory of property restricts the way some people may act.Let’s be precise here. It is the nature of scarcity that restricts how people may act.
Property is scarce, it is the nature of scarcity that restricts how people may act, so it is the nature of property that restricts how people may act. Right. Glad we got that cleared up.
To distinguish IP from other property, you argue that it is non-scarce. Your argument assumes your conclusion because of your equivocation of “ideas” and “IP”. If we assume that IP is non-scarce because “ideas are free” then I would have to agree with your statement about property in non-scarce things and that IP is not and cannot be property.
However, if we decouple the “ideas are free” argument from the anti-IP narrative, (as you recently have acquiesced that SOME ideas are protected under IP while others are not), then we can see that an original work is NOT synonymous with “idea”. If an original work is distinguished FROM “ideas” in the context of IP laws, then these works ARE scarce by your definition, since their natural occurrence is limited and use is rivalrous. So the whole scarcity argument against IP drops away as soon as you stop equivocating on the “ideas are free SO IP is also free” narrative.
If original works of authorship are scarce, you cannot claim they are non-scarce simply because the cost of copying is rendered low by the use of digital technology. The low cost of copying is all the more reason to recognize the property rights in IP, not to deny them. In contrast, land is impossible to copy. An original manuscript that has never been shared is easy to copy, yet you admit openly that both are property. Therefore ease or difficulty in copying is not the critical distinction between one type of property and another. It is scarce BECAUSE it is subject to exclusivity of ownership; i.e. use and possession. That is merely the definition of property and the rights embodied in its ownership, in general.
You continue to argue that even though the original manuscript is property, and rights to copy can be limited by contract, once a non-party obtains a copy, no matter how this is done, the property rights of the author suddenly vanish! Why? Because ideas are free and ideas are non-scarce, and so to grant property rights in the non-scarce is a reallocation of the property rights of others! Ooops! How did “ideas are free” sneak back into this?
If you abandon the narrative that “ideas are free”, the entire anti-IP argument falls apart. That is why I have been pressing you on it so hard. It is the ultimate fallacy in your case.
March 25, 2011 at 4:22 am-
Hello Kid Salami,
I think that’s pretty clear.
What is clear? That it should not be permitted to violate rights for educational/satirical purposes? Well then that invalidates IP as a large chunk of IP proponents define it.
I don’t agree though,
With what?
I still don’t see anything other than the NAP in a cheap moustache-glasses type disguise…
Ok, then should the intent of an action influence whether rights were violated or not?
March 25, 2011 at 6:53 am-
Wildberry,
Your argument assumes your conclusion because of your equivocation of “ideas” and “IP”.
Your theory assumes your conclusion that ideas are distinct from the media they are reflected in. I refuted that assumption many times, by using set theory, propositional logic and reductio ad absurdum. Not only that, but there are even IP proponents who agree with me (although they fail to follow their own argument into the logical conclusion). Stranger, for example, says that in “fallacy #2″. Silas, before he was banned, admitted this too.
Without a solid foundation in logic, all the voluminous constructs you produce are meaningless.
March 21, 2011 at 1:48 pm-
Kid Salami,
But it is a request bit of a “when did you stop beating your wife” type request.
It would be, if the IP proponents did not insist on a self-contradiction.
If I don’t accept the NAP, then yes I agree that I advocate “aggressive” action against people who have not committed a border invasion.
This is all correct. So, all I need from IP proponents is to admit that they at least partially don’t agree with ownership of physical goods and that from the perspective of someone who does, IP is always theft. That should not be so hard. But apparently, it is very difficult emotionally (due to cognitive dissonance). Instead of admitting this, IP proponents produce all kinds of nonsense.
March 22, 2011 at 5:18 am-
Peter – I don’t know what your point is, you are going round in circles. The defintion of “theft” in ancap world will remain exactly the same once we introduce a law against, say, libel?
Of course not. Say someone commits the crime of libel and is fined – you are saying he has then had money taken from him and this is “theft”. This is not the same definition of “theft” as in ancap world. Once we introduce the possibility of non-invasions being crimes then people can have their goods “taken from them under threat of force” yes – in ancap world this is theft, in the world where libel is a crime and this is in response to committing this crime, then this is legitimate.
March 22, 2011 at 7:50 am
March 22, 2011 at 8:29 am-
“Uh, yes, this is the very problem with IP rights, and rights in any non-scarce things: it undermines and cuts into rights in material resources. ”
I understand the argument, it is clear. But this is also the argument against, say, libel – making libel a crime “undermines and cuts into rights in material resources”. I agree. This has nothing to do with IP per se – it is just adherence to the NAP.
So my attempt to break down the anti-IP case into
a) the arguments which hold against all rigths that “cut[s] into rights in material resources” (ie. adherence to the NAP).
b) those that apply only to patents or copyrights or trademarks (and that might take place between two people in whose framework libel, for example, is a crime but who differ on IP).is simply an attempt to clarify the situation.
March 24, 2011 at 5:40 am-
Kid Salami,
Peter – I don’t know what your point is, you are going round in circles.
No, I’m not.
The defintion of “theft” in ancap world will remain exactly the same once we introduce a law against, say, libel?
I don’t understand. It’s up to the IP proponents to formulate the definitions, not for me. That’s my whole point. If they formulate them in a self-contradictory manner, it’s their problem and I’m pointing it out.
Say someone commits the crime of libel and is fined – you are saying he has then had money taken from him and this is “theft”. This is not the same definition of “theft” as in ancap world.
I don’t understand. My argument would be (in case of libel) that if someone advocates physical property rights, protection against libel is always theft, or in another words, protection against libel always takes precedence over physical property rights. If my hypothetical opponent agrees, then it’s fine. But they don’t, they make up loads of crap instead.
Once …. then this is legitimate.
Of course. But that does not mean that you can present this based on a self-contradictory theory. You understand it correctly and can phrase it correctly. But the proponents of these weird theories typically don’t understand that.
March 24, 2011 at 6:52 am-
“My argument would be (in case of libel) that if someone advocates physical property rights, protection against libel is always theft..”
You say “always theft”. I get it, I’m not trying to “convert” you I’m just being clear that you reject any approach that is not “let’s see who owns what tangible object and consider this AND ONLY THIS”. We are at a fork in the road (because although you and Kinsella call this an “argument”, I suggest that it is NOT worthy of this name).
March 24, 2011 at 8:25 am-
Kid Salami,
We are at a fork in the road (because although you and Kinsella call this an “argument”, I suggest that it is NOT worthy of this name.
This is a very good metaphor. Allow me to use is to explain my argument then. We’re at a fork in the road, and I’m saying: hey guys, there’s a fork. You need to choose where to go. And IP opponents say: behold the magic, one, two, three and there is no fork.
March 24, 2011 at 9:20 am-
Should have been “IP proponents”.
March 25, 2011 at 5:59 am-
Peter – like I said, there is nowhere else our debate can go on this particular topic of rights violations. Where we differ is clear.
March 21, 2011 at 1:56 pm
March 19, 2011 at 8:41 pm
March 19, 2011 at 11:35 pm-
Copyright, at least as it was originally conceived, protects original expressions; but patents are about ideas – and that’s why patents are unconditionally evil. Copyright ,OTOH, might be for good or for evil, depending on what exactly it protects.
The fundamental problem here is that it is impossible to draw a clear line between ideas and their expression, at least not in all cases, which gives both pro- and con- IP people a tool to push their agendas (and also to confuse patents and copyrights).Take an example: Given a book ‘harry potter’ , what should be (not is) protected from unauthorized copying
1 ) the original text
2 ) translation into foreign language
3 ) inexact retelling of the text (but of considerable size, say an adaptation for movie plot)
4 ) the plot
5 ) the characters
6 ) the idea of wizard boy studying in given school
7 ) names devised by the author
8 ) movie made from the book
…….
could be more.
Where to draw the line? I think, many people would disagree on where exactly.
March 20, 2011 at 1:55 am-
I think WB would agree that were IP protection to be enforced, but privately and voluntarily, that is, without a state, said protection would not be nearly as damaging as IP protection as it is enforced today.
Said protection would, naturally, be limited since it would probably occur among contracting parties, and subject to market forces.
March 20, 2011 at 3:08 am-
There would be no such thing as ‘IP protection’ without state intervention.
The only thing resembling them would be formal voluntary contractual obligations between parties. These agreements would only affect the people agreeing to them and have no affect on controlling the execution of ideas by third parties.
March 20, 2011 at 3:51 am-
So I can rob your house because I never signed any contract with about what’s your property?
March 20, 2011 at 6:07 am-
If you want to get shot in the face then that would be a good way to go about accomplishing it.
It also has nothing to do at all with anything I was talking about.
March 20, 2011 at 3:54 am-
Without state intervention, “IP protection” is simply theft. So the question is, how much would it be tolerated?
March 20, 2011 at 4:07 am-
“The only thing resembling them would be formal voluntary contractual obligations between parties. These agreements would only affect the people agreeing to them and have no affect on controlling the execution of ideas by third parties.”
Do you agree that a dispute resolution organisation in ancap world could insist that you agree, as one of the terms when you sign up, that when you find something in the street that is a candidate for having been “copyrighted” (which here means registering yourself as the author of something with your DRO ), you take it in and see if it belongs to a fellow member of this DRO.
If it does, you hand it over – if not, you can go nuts with it (maybe you are compensated too buy the author). Also, say you can’t breach the “copyright” of fellow DRO members in any other ways.
If people want this – and I personally believe for many items that they may, that there is just something that you instictively feel you possess when you write, say, a novel – then this could become policy of the most popular DROs. Not copyright as it is now but indirect “formal voluntary contractual obligations between parties”. If it took hold and almost all the DROs used it, then you’d essentially have to respect just like you have to respect normal property rights.
Do you think this is plausible? Do you have any objection to it?
March 20, 2011 at 6:06 am-
Do you agree that a dispute resolution organisation in ancap world could insist that you agree, .
If people want to submit themselves to that then that is fine. I wouldn’t though. I would recommend heavily against any business or individual agreeing to submit to such a organization.
What is the upside of it? What would be the financial benefit for me or a business to agree to such a thing?
March 20, 2011 at 6:26 am-
Businesses and individuals who produce works which can be encoded in a final complete form (novels and plays, engineering and architectural drawings, software etc.) might form their own DRO and thereby agree between themselves to respect each others “copyright”.
No’one else of course has to join. But they could try to get people who don’t want any such “copyrighting” (and want to just copy drawings and software as they feel like it) to use this new DRO during negatiations for new contracts (ie. we’ll provide you with this design provided that you join the DRO of our choice, else you’ll have to go elsewhere). Others who produce similar works but don’t join this DRO because they think IP is inhibiting will then compete against them and try to take the business of those who want to be free to copy. At the end, some business models will be left standing and some will be dead.
They might succeed, they might not. It might be more efficient for the market to do this, it might not – we’d find out in ancap world.
March 20, 2011 at 6:59 am-
They might succeed, they might not. It might be more efficient for the market to do this, it might not – we’d find out in ancap world.
What your describing is a industry cabal. Or a trust or whatever you want to call it. Which in itself is fine, but they don’t last very long in a free market.
Effectively your creating a industrial association that forbids to do business with companies that engage in activity that does not conform to the best financial interest of the association. Given there is a long history of these sort of things it’s fairly obvious how it would play out.
March 20, 2011 at 7:06 am-
“What your describing is a industry cabal. Or a trust or whatever you want to call it. Which in itself is fine, but they don’t last very long in a free market. ”
I don’t believe I am describing one of these but…
“Given there is a long history of these sort of things it’s fairly obvious how it would play out.”
Can you give me some examples?
March 20, 2011 at 8:32 am-
Kid Salami,
This suits me perfectly – let the people who want to live by the restrictions of IP try to find innovative ways to convince others to do the same. Absolutely, there could be some DRO’s that require their members to abide by these restrictions. People that support IP can then, if they so choose, give preferable pricing to those DRO’s, or refuse to deal with people with different DRO’s, or whatever they want to try. I’m not sure it’d work, myself, but I am completely in favour of a free market that allows people to try.
Personally, I wouldn’t sign up to a pro-IP DRO if there was a regular DRO available, but I wouldn’t stop anyone else from doing so.
March 20, 2011 at 9:13 am-
Can you give me some examples?
I can’t think of anything notable off the top of my head. If you look around Mises for people discussion antitrust laws and such things you can find information on it.
March 20, 2011 at 11:50 am-
Kid Salami,
Do you agree that a dispute resolution organisation in ancap world could insist that you agree, as one of the terms when you sign up, that when you find something in the street that is a candidate for having been “copyrighted” (which here means registering yourself as the author of something with your DRO ), you take it in and see if it belongs to a fellow member of this DRO.
Based on my analysis of the theories provided by IP proponents, such a rule would be either overly specific and thus having little practical effect, or be overly generic and thus causing confusion regarding which acts are violations and which are not, thereby creating a market disadvantage for the said DRO. So the whole premise is highly dubious.
March 20, 2011 at 12:21 pm-
Kid Salami,
But they could try to get people who don’t want any such “copyrighting” (and want to just copy drawings and software as they feel like it) to use this new DRO during negatiations for new contracts (ie. we’ll provide you with this design provided that you join the DRO of our choice, else you’ll have to go elsewhere).
Unless you agree with the very specific definition of IP these DROs provide, from your perspective these DROs is essentially a mafia. If we assume that mafias would not prosper very much in anarchocapitalism, why should IP-supporting DROs?
March 20, 2011 at 2:10 pm-
“…let the people who want to live by the restrictions of IP try to find innovative ways to convince others to do the same.”
If people think it benefits only a small number at the expense of the rest, they won’t do it. If they “like” a society where people “own” the text of novels, maybe it will. I’m not sure what would or could happen either (I’m even more confused as to how this suggestion makes me an IP fascist in the eyes of some…).
“I can’t think of anything notable off the top of my head. If you look around Mises for people discussion antitrust laws and such things you can find information on it.”
I don’t want “information” on it – I can think of examples too, I’m not a moron. I wanted your examples so I could point out where they might differ from what I’m suggesting to show why I can’t rule it out with as much certainty as you.
“Based on my analysis of the theories provided by IP proponents, such a rule would be either overly specific and thus having little practical effect, or be overly generic and thus causing confusion regarding which acts are violations and which are not, thereby creating a market disadvantage for the said DRO. So the whole premise is highly dubious.”
So it should be really crystal clear, something like, erm, block’s reply to Van Dun about encirclement:
http://libertarianpapers.org/articles/2010/lp-2-4.pdf
Suppose that Mr. B fully intends to homestead the entire area, A+B….What are the size limitations on B (+A)? this issue is not unrelated to the one concerning how intensive or extensive must the homesteading be, in order to count as a justification of ownership. According to Rothbard (), this depends upon the culture, the common practices, the history of the area, and can legitimately vary depending upon these considerations. For example, the land is better watered, on average, and more fertile, east of the Mississippi, than west of it. Therefore, the tradition is likely to be a requirement of more intensive homesteading and farming east of this river than west of it.
Similarly, the optimal size of the farm holding is likely to follow this pattern. For example, if Mr. B initially enclosed 160 acres in Louisiana, or 1600 acres in New Mexico, this would be far more reasonable than the reverse.9 If Mr. B somehow places a fence around the entire U.S., and then starts homesteading it, working from the south to the north as in our previous example, then Mr.
C would be entirely justified in breaking through the fence, say, in North Dakota, and working south.
Let us now return to the case where Mr. B placed the fence around (a reasonable sized) B (+A). Only instead of working from the south to the north, he began at the perimeter fence, and worked his way inwardly, toward A. After a week or so, we may suppose that Mr. B had now covered the
entire terrain, B, and was continuing inwardly to A. At this precise point in time, Mr. C breaks through already homesteaded land in B, and starts erecting a path toward A, on the ground that Mr. B is a forestaller of A. My point is that as long as Mr. B is in the process of homesteading the entire area A+B, has already planted his crops in B, then Mr. C is in the wrong. How long should this process take? What are the time limitations? Again, it is a matter of context. It should depend upon custom, the terrain, history, etc. as in the case of the intensivity of the homesteading. For
example, 100 years is way too long. But Mr. B need not rush, and plant all of his 160 (or 1600) acres in one day either. It is another continuum issue as to precisely how much time Mr. B has at his disposal before it would be justified for he must build, or allow to be built, a path in B to allow Mr. A, or Mr. C to begin homesteading in area A.Or can we conclude that, once again, demands are being made on copyright law that are WAY in excess of those made with regard to laws about tangible property.
“from your perspective these DROs is essentially a mafia”
i don’t see this. if people don’t like the condition, they use another DRO. No’one is threatening anyone.
March 21, 2011 at 9:42 am-
Kid Salami,
So it should be really crystal clear, something like, erm, block’s reply to Van Dun about encirclement:
I have a problem with Block’s reply. Homesteading happens in 3D, not in 2D or 1D.
Or can we conclude that, once again, demands are being made on copyright law that are WAY in excess of those made with regard to laws about tangible property.
I’m not sure what that means. We however can hopefully agree that:
– most IP proponents want to keep some sort of physical property rights
– IP is more complicated than physical propertyi don’t see this. if people don’t like the condition, they use another DRO. No’one is threatening anyone.
If you assume that “pro-IP” DROs stick to their own customers and don’t prosecute non-members, then what you have from an economic point of view is a non-compete agreement (cartel). Without the ability to prosecute non-members, a cartel cannot keep its position long term, because all members can gain by cheating. For example, they can just outsource to another company that is with a different DRO. So again, it’s a no-go.
March 22, 2011 at 5:37 am-
“I’m not sure what that means. We however can hopefully agree that:
– most IP proponents want to keep some sort of physical property rights
– IP is more complicated than physical property”Yes, I agree. My point is that if you rule out an argument for IP (arbitrariness and lack of clarity) with a criticism that can reasonably be levelled at Block’s arguments about tangible property theory, then this is a weak criticism.
“If you assume that “pro-IP” DROs stick to their own customers and don’t prosecute non-members, then what you have from an economic point of view is a non-compete agreement (cartel). Without the ability to prosecute non-members, a cartel cannot keep its position long term, because all members can gain by cheating. For example, they can just outsource to another company that is with a different DRO. So again, it’s a no-go.”
Framing the problem as you have, I agreed. But I’m not so sure there are two clear sides fighting with each other – what if a critical mass of people “like” the idea of people retaining control over novels and drawings and so on that they created (even if they themselves do not expect to gain from this directly). In this case this is not so obvious and the question of whether it takes hold or not becomes an empirical one.
March 22, 2011 at 7:51 am-
Kid Salami,
I appreciate the effort you’re putting in here, it is certainly helping me follow the arguments. To that end, is it fair to characterise your position as asking the following questions?
1) Does every conceivable system of property rights which abides by the NAP necessarily thereby exclude IP?
2) If one rejects the NAP, are there any other justifiable reasons for excluding IP?
3) Is it possible to develop a coherent system of property rights which achieves the stated aims of IP (the “good ones”, not the unnatural monopolies and censorship) without contradicting the NAP?
4) Is it possible that a society might develop where a system like IP was voluntarily accepted by a critical mass of people, which made it into a sort of custom, without violating other property rights, simply because nobody would deal with a person who wouldn’t sign the non-compete contract?I hope you see that this is not an attempt to insult you, just to help me follow the discourse. If the above is accurate, please see my thoughts below.
1) I believe so, but I can’t prove it, obviously. When I think of IP, I am specifically referring to the dogma of prosecuting people who, through whatever non-violent means, own property that bears some arbitrary level of similarity to property you own, even if those people didn’t agree upfront not to own property similar to yours. I think the important bit there is the “through whatever non-violent means” bit – if your property system has a basis in the NAP, you shouldn’t use violence to prevent non-violence.
2) I like the NAP because to me it does seem to be coherent, and logically consistent. It seems a good basis to build a system of property rights on. In fact, I don’t know of another basis which does not have some sort of internal contradiction, or some silliness (like, in any conflict over scarce resources, the victor is he who is tallest). What bases would you consider as valid for the purposes of assumption?
3) I don’t think we’ve successfully been able to separate the good effects of IP from the bad, because IP as I referred to it in my response to 1) rests on something I consider bad (violating the NAP). I don’t think protecting the monopoly of the author can be enforced using violence in an NAP world, meaning that it cannot be entrenched in property rights. That does not mean that it can’t be customary though – using social ostracism or somesuch to maintain these monopolies is justifiable, in my view.
4) Yes, it’s possible that such a thing might happen. I would prefer that it did not, I think social and market ostracism should be reserved for actual crimes like rape and murder, but that’s just an aesthetic preference.I hope I have not misrepresented you here. Please feel free to correct me.
March 22, 2011 at 9:13 am-
Colin – I see your points but you’ll forgive me if I don’t spend the time to correct your interpretations of my view and then answer your comments while mentally adjusting them based on the corrections…. If you want to ask me specific questions about my actual words then I’ll certainly answer.
March 22, 2011 at 9:34 am-
Kid Salami,
Fair enough. Was I close though? I’m hoping that if I can synthesise the position of each of the “camps” in this debate, I can see where the camps are “talking past” each other. There seems to be a great deal of “As I’ve explained before” and “which you don’t seem to understand” and “trying to pin you down” and so on in these comment threads. The first step is to collect the salient points of each camp. Next will be to try find the sticky differences, and investigate them.
I started by asking you rather arbitrarily, simply because you have the most neutral “writing voice” right now. In future, I will withhold my comments.
March 23, 2011 at 11:55 pm-
@ Kid Salami – March 20, 2011 at 4:07 am
Your approach here is new and I like it. Your question of whether some form of IP could still exist in an ANCAP society is a very good one and I certainly believe it is possible. In fact I think it is probable that some of this would occur particularly between businesses in specific industries whereby they recognise a mutual benefit from doing so
The cartel-type objections could be diminished if dispute resolution organisations made the use of their services conditional on this as you’ve suggested. Insurance companies could also do something similar.
The huge distinction between your approach here and the more usual statutory IP approach is that now it would be consented to by all parties involved and would be controlled in a free-market manner (ie. not just at the behest of the loudest lobby groups and foisted on all in a very unlibertarian manner).
March 24, 2011 at 5:15 am-
Kid Salami,
My point is that if you rule out an argument for IP (arbitrariness and lack of clarity) with a criticism that can reasonably be levelled at Block’s arguments about tangible property theory, then this is a weak criticism.
And my point is that unless an IP proponent completely rejects physical property, then he his argument fails due to parsimony.
what if a critical mass of people “like” the idea of people retaining control over novels and drawings and so on that they created
That still does not fix the logical errors in the claims of IP proponents, therefore keeps the contradiction and with it the impossibility of implementing it. Now, purely hypothetically, these issues are fixable. However, as I said previously, the reactions I get from IP proponents do not indicate this is likely.
March 20, 2011 at 2:49 pm-
@Daniel March 20, 2011 at 1:55 am
From an ethical viewpoint, private or government enforcement is not relevant. If the right exists in IP, then enforcement is a “technical problem” (to quote Kinsella) that can be addressed in a number of ways.
Protection of any right should be limited and proportionate, with protections against prosecution of the innocent.
Contracts can be and are used both within and outside the context of both IP and government enforcement.
I am attempting to restrict the discussion to the ethics of property rights in IP, while maintaining a fair reading of the law and its operation. I am not advocating the correct “technical solution” at this point.
March 20, 2011 at 3:03 am-
Copyright, at least as it was originally conceived, protects original expressions; but patents are about ideas
Copyright as it was originally conceived was used as a mechanism for censorship. The only people that were allowed to copy documents were ones that registered with the state and allowed official censors to vet documents before they were released to the public.
Once that was abolished then copyright made a second appearance as the great publishing businesses, which were created through this censorship mechanism, saw their profits erode as authors and smaller publishers could by pass them. Those publishing houses campaigned for copyright once again so that they could control the market. As a result authors were forced to go through them because they had access to the markets and the markets were forced to go to the big publishing houses because they owned all the copyrights.
What your talking about is probably the third or forth iteration in copyrights.
Basically everybody has been lying about the origins and purposes of copyright.
Even to this day the true use/effect of copyrights have much more to do about larger businesses controlling markets rather then making authors profitable.
March 18, 2011 at 6:23 pm-
@Daniel March 18, 2011 at 5:52 pm
Daniel. I’m sure I would find it provocative, so I’ll make you a deal.
I will buy and read your book if you will post how the dollars I spend on it find their way back to you and in what proportion (approximately), and where these allocations are currently subject to your rights in IP. I mean if I spend $20, and you get $1, what happens to the rest, and how would it have worked in the absense of IP.
I will be very interested in both that information and how you support your assessment of where “we would be without IP laws”. I’m willing to buy your book to find out the latter.
Deal?
March 18, 2011 at 6:30 pm-
Haha so in other words you won’t read it. Clever! Victory by default…
Scared to crack this book open!?
March 18, 2011 at 7:36 pm-
March 18, 2011 at 8:30 pm-
He is, and it’s not my book, I’m just putting it into epub to make it more (even more) ubiquitous
That is a reward unto itself :]
March 22, 2011 at 10:03 am-
Taking IP laws to the natural conclusion, is it morally permissible to be reading these comments, which are original ideas (if there is such a thing) from each of you, without first paying to do so?
March 22, 2011 at 6:47 pm-
Shut up.
March 25, 2011 at 2:04 pm-
Wildberry
I would like to clarify a few things. First, you support the notion that IP is property. Is that your position?
Sione
March 25, 2011 at 3:10 pm-
I support the principle of recognizing limited property rights in IP, as defined under the relevant statutes.
I say it that way because IP rights, like any other property right, operates within the legal framework of that subject matter. Real propertty operates under property law. IP operates under IP law, personal rights operate under tort law, etc. In general, however, IP rightrs operate as any other property right, especially with regard to exclusive use, or “property monopoly”.
Second, you have to accept the subject matter of say, copyrights, as it is defined in the statute. Otherwise, we have to argue about things like whether “ideas” are “IP”.
Is that sufficient for your purposes?
March 25, 2011 at 9:17 pm-
Wildberry
That’s interesting.
Are individual rights, such as the property right, derived from legal statute?
Shouldn’t the law be a written codification based upon individual rights?
Sione
March 25, 2011 at 10:59 pm-
Sione March 25, 2011 at 9:17 pm
Are individual rights, such as the property right, derived from legal statute?
Of course not. First comes ethics. IP rights are derived from the ethics of self-ownership and the private ownership of the means of production.
Then comes contracts. Cooperating humans can agree on arrangements which establish and define how certain property rights operate. Most here agree that IP rights in contracts are legitimate.
Then comes economics. Producers must be producers for an internal economy. Output equals income.
Next comes common law adjudication of disputes about the above. This forms precedents and these get integrated into social conventions.
Finally comes laws, which ideally encode the above and apply generally (no privity of contract required) as an operation of property rights.
Shouldn’t the law be a written codification based upon individual rights?
We seem to be in agreement about this.
So, rather than have to re-define IP, I find it convenient to just refer to the definitions in the law and debate the pros and cons while giving a fair reading of the existing laws and how they operate.
I have come to the opposite conclusion of Kinsella. I tend to alighn more consistently with Mises than Rothbard or Rand. I am a big fan of Kathleen Touchstone.
March 26, 2011 at 2:29 am-
Wildberry,
IP rights are derived from the ethics of self-ownership and the private ownership of the means of production.
IP opponents (some of them at least), however, also claim that the rejection of IP is based on the concept of self-ownership and private property. How do you explain that?
Producers must be producers for an internal economy.
As I said before, without IP the amount of “internalisation” is not zero and with IP it is not 100%. So why is this an argument for IP?
Output equals income.
This is impossible to reach in any system, since causality extends to infinity. Furthermore, how do you measure output?
I find it convenient to just refer to the definitions in the law…
As I explained many times, the definitions provided by law do not match the theories provided by IP proponents.
debate the pros and cons while giving a fair reading of the existing laws and how they operate.
Very well then. What are the pros and con of existing IP laws?
March 30, 2011 at 7:38 am
March 30, 2011 at 9:26 am-
@Stephan Kinsella March 30, 2011 at 7:38 am
“Though some speak exclusively of tangible and non tangible goods, I prefer to talk of material and immaterial goods. See, for instance, Stephan Kinsella, “Against Intellectual Property,” Journal of Libertarian Studies 15, no. 2 (Spring 2001): 2. The point about material goods is not that they are tangible, for some are not. For instance, atoms and many other small material units are not tangible; they are identifiable only indirectly, though this does not prevent us from calling them material.”
As you know, the significance of the terms is relative to the statutes and case law. Bouillon, and Surda for that matter, introduce this term to blur the distinction that is being made.
For example Matt470 is struggling with whether digital media is tangible or intangible. He thinks of them as intangible in relation to the copyrights, but By Bouillon’s standard, it would be “material”, even though we cannot observe them directly.As you know, tangibility is defined in terms of whether the intangible is “fixed in a tangible medium”. As you also know, digital media is considered a tangible fixation because with a computer they are perceptible, and therefore tangible. This is why copyright law interprets copying digital media “copying” for infringement purposes.
Therefore, to be consistent with the argumentation, tangible/intangible should be used in the treatment of these concepts within the context of IP.
April 6, 2011 at 5:22 am-
Kid Salami,
here you have it black on white: J. Neil Schulman does not think that IP contradicts physical property:
http://blog.mises.org/16319/the-origins-of-libertarian-ip-abolitionism/comment-page-1/#comment-770318There goes your claim about him having a good argument.
Cheers.
April 11, 2011 at 1:03 pm-
@matt470 April 11, 2011 at 9:08 am
Matt, I’m posting here to defeat those reply indents…
It’s taken me a while to gather my patience to have another crack at this but for some reason that hit me while I was driving today, I thought I would…
I’m surprised you have not weighed in here: http://blog.mises.org/16319/the-origins-of-libertarian-ip-abolitionism/comment-page-1/#comments
IP proponents vehemently reject homesteading (prior vs later distincion) as the source of all property rights yet then dive straight into offering protection to creations precisely because they were the first in to get the work protected
I’m trying to cut to the chase here. I do not reject homesteading, which is one way to claim property rights. I reject the notion that this is the ONLY way to do so. Also, I believe, by your (and other’s) admission that the author has full property ownership rights in an original manuscript by virtue of the principles of self-ownership and the private ownership of the means of production, that this issue is therefore moot.
We are talking about the transfer of those rights, and whether it is a “lease or a sale”, in effect:
Opponents say that when they buy a book, they have acquired complete title to all property rights for everything printed on the pages.
Proponents say that rights are bundled and alienable, and they cannot be independently transferred without consent.
Because both the author and the “future copier” are claiming ownership rights to the same “work” to use my preferred term, or “information object” or logos, or “Media Carried Object”, or whatever you settle on as an acceptable term, that object is rivalrous. There is a conflict of ownership claims; a classic property problem.
Property rights being a human device, we could from this point, go in two directions; 1) we could agree with your position; once an author disclosed his work to the public (which is the goal of his action of writing it), it becomes property in the public domain, like ideas and air. This has certain benefits, like you and others describe; OR 2) we could establish property rights in the “work”, in which case the owner of the property could enforce exclusive use rights, which means his output (work) equals income (exchange for consideration). This has the standard benefits of all other property rights.
As Mises explained (if you insist, I’ll look up the exact quote), either approach has its own set of problems. If you go with 1) the author is producing for an external economy. In the absence of property rights, the transaction costs of internalizing this externality (contracting with each consumer, security, enforcement, etc.) are high and uncertain. If you go with 2), eventually title passes down forever, like land, and you end up with an endless accumulation of property rights that cover more and more “works”. This has a stifling effect on the “free” use of intellectual works over time.
The solution we have(i.e. copyrights) is intended to be a compromise between these competing goals; rules of private property, and protection of the “public domain”. Therefore, a scheme of limited property rights, and an extensive fair use doctrine was developed.
You cannot argue for 1) at the exclusion the issue with 2) and vice versa. There are reciprocal effects of IP rights.
Why not throw caution to the wind and try extricating yourself from the warm, reassuring smell of the herd and see whether voluntarism, civil society and free markets can allow creativity to flourish along with everything else in life under these conditions?
I am not timid, and have no problem going boldly where no man has gone before. But I am not a fool, either. (despite what you may have heard here, LOL!) I’m not prone to jump on board a train heading over the cliff. I have been at this debate for about a year or so. I have had to learn Kinsella’s argument and rely on my understanding of the black letter IP laws in order to become informed enough to engage here, and am now pretty much convinced that Kinsella’s argument only holds up if you equivocate the meaning and operation of the law, ignore the economic issues raised by Mises and Hayek, and are willing to bend your own principles to reach the conclusion you have decided is “right”. That is my opinion, for what’s it’s worth.
April 12, 2011 at 9:43 am-
@Wildberry
Yeah I somehow unintentionally missed that other article and thread that you linked. Probably no great loss to those involved in it

I think what you’ve said above sums up the arguments quite well and with reasonable fairness to the side you oppose.
I also think there is some truth in saying that I am determined to build my argument around the conclusion I have decided is “right” although I wouldn’t consider I’m achieving this through bending my own principles. I think there is a lot to be said for what just feels “right” and in my experience, it is these areas in life where the extra questions must be asked and new paradigms imagined/considered that may in fact result in one’s principles being in perfect alignment with this gut feeling. Of course it doesn’t always work this way, but it was this discovery that led me to Austrian economics and to libertarian philosophy… so much of it felt right and close examination of the principles involved showed that they are solid and not being bent for expediency.
I’m not going to argue with much of what you’ve said here, it’s the clearest I’ve seen you write and it boils it down to our few areas of disagreement that help form our conclusions but I’ll make a couple of points:
I think you conflate rivalrous goods with economic rivalry. A Mises quote you posted somewhere above highlights that he doesn’t consider IP as being a rivalrous good. The rivalry you refer to is analagous to perhaps the rivalry between the US industrial north vs the agrarian south prior to the civil war over tariffs and other protectionist measures. Sure there is rivalry regarding who gets the advantages or gets to keep more of the spoils because there are livelihoods at stake but this doesn’t make a tariff a rivalrous good. IP is not rivalrous in the sense (and this is one Mises is using if I read him correctly) that you explain below to Walt D….
If you give me your idea, you still have yours and now you have one, so thay are not scarce or rivalrous.
Now I can see you use the term “idea” in that statement and it makes sense in the context of what you’re explaining to Walt but I don’t think the principle of that statement changes if you substitute the words “original works” in place of “ideas”.
There is a conflict of ownership claims; a classic property problem.
Yes and no. The conflict over ownership claims is undeniable in our current system but had we not ever introduced the principle and laws of IP a bit over 200 years ago or so (and remembering the reasons for the introduction of the initial legislation were not the same as why you argue for IP today) I have my doubts that people would consider owning the immaterial separately from the material goods involved and therefore perhaps it really isn’t a classic property problem. Clearly I can never prove this and I guess I’m not 100% convinced with it but I dislike referring to it as a “classic property problem” when for many thousands of years IP certainly wasn’t considered property.
No argument with the rest. Cheers.
April 12, 2011 at 11:00 am-
@ matt470 April 12, 2011 at 9:43 am
I’m not going to argue with much of what you’ve said here, it’s the clearest I’ve seen you write and it boils it down to our few areas of disagreement that help form our conclusions but I’ll make a couple of points:
Practice makes perfect?
I think you conflate rivalrous goods with economic rivalry.
Well, this is a point of contention. If you wanted to provide an explaination, I would be happy to respond. I think one implies the other.
I don’t think the principle of that statement changes if you substitute the words “original works” in place of “ideas”.
I do. Ideas are not scarce (at least in principle) and “original works” are. Someone has to expend capital goods to produce them. They are only “free” when the original is produced. if it is indeed “original” then no copies can exist without this original existing first. Making copies makes it less scarce, yes, but then all production makes goods less scarce.
Regards,
April 12, 2011 at 12:59 pm-
Wildberry,
Ideas are not scarce (at least in principle) and “original works” are. Someone has to expend capital goods to produce them.
Sure. And they are free to keep them, sell them, lend them under restrictive contracts or do anything else they want with them. “Problem” solved.
April 12, 2011 at 3:25 pm-
@ Peter Surda April 12, 2011 at 12:59 pm
Are you familiar with the Coase Theorem?
Therein lies the solution to the “problem”.
April 11, 2011 at 1:27 pm-
“Ideas are free?”
How can ideas be free – an idea implies human action. Surely you have to be alive to have an idea? Staying alive requires energy – probably around 4 million joules per day (~1000 food calories). Energy is not free. Food is not free. Whether it was Jonas Salk or Albert Einstein, their ideas were not free.
April 11, 2011 at 3:17 pm-
Walt D.
I think you missed the sarcasm.
“ideas are free” is Kinsella’s/Tucker’s argument, equivacating “idea” with “IP”. Ideas are free, because an idea cannot be owned. IP is not and it can. There is an important distinction.
April 11, 2011 at 9:29 pm-
So “ideas are free” does not mean that free in the sense that they can be acquired for zero cost or zero effort? Rather the sense that “ideas are free” meaning that they have inalienable rights? Nobody has the right to enslave an idea?
April 11, 2011 at 11:25 pm-
Walt D.
Sorry, you have missed a big issue in this debate, apparently.
“Ideas are free” is not my argument. That is the Kinsella special. It goes like this: Ideas are free. They cannot be owned by anyone because they are non-scarce and non-rivalrous. If you give me your idea, you still have yours and now you have one, so thay are not scarce or rivalrous. Therfore any law that tries to own ideas is wrong. IP laws are about owning ideas, so IP is wrong”
Here is the problem: Ideas are specifically and explicity excluded from IP law. They are excluded right in the language of the statute. It is unreasonable, and one could argue dishonest coming from an IP lawyer, to oppose something for doing what is specifically seeks to avoid.
So you can see, the “ideas are free” argument, while it makes good sense, is not an argument against IP because IP does not attempt to protect ideas in the first place. It is a fallacy of equivocation because “idea” does not equal “IP”.
Free as in “free to roam around and be used and enjoyed by anyone and everyone wthout being owned by anyone”, free.
See?
April 12, 2011 at 10:36 am-
Ideas are not free, that’s not the argument. The argument is that ideas are not property. You guys keep associating labor value with the argument, not recognizing how fallacious that position is. Just because you put energy into acquiring an idea, doesn’t make it property any more than someone spending a lot of time courting another individual OWNS THEIR LOVE.
Action CAN occur with property, but action cannot be property on its own. When you mix ideas with property, now you have a property right, but you only have that property right, because property is now involved.
Wildberry, I missed your response (if there was one) to my previous request for a debate in the Mises Community. You clearly have the time and interest to discuss this topic, and I fashion myself as being very competent at both discourse and this subject, so I will ask again.
Would you be willing to debate me in a 2 man discussion in the Mises Community?
April 12, 2011 at 11:05 am
April 12, 2011 at 1:00 pm-
@ DixieFlatline April 12, 2011 at 10:36 am
I agree, it is not THE argument, it is ONE argument.
It is ironic that I spent weeks objecting to the equivocation and referring to the statute in my complaint that it is unreasonable to oppose a law for doing what it specifically seeks to avoid. Finally, Kinsella allows that OK, it is not ALL ideas, just some! Now you say it is beside the point?
If you cannot discriminate between a pick-up line and writing a book, I’m not sure where you are coming from.
I have never argued that “action” is property. Don’t attribute what someone else says to me. As for this:
When you mix ideas with property, now you have a property right, but you only have that property right, because property is now involved.
I don’t know what you are trying to say.
As to your debate, sorry I don’t know what you mean. The idea of a structured debate environment that is different than this blog forum is a good idea, although I don’t think is a matter just for you and I to settle. I have no idea what you intend, specifically, or how it would work. Why not write an article with your proposal, and that can start a new thread?
April 12, 2011 at 10:43 am-
I find it very ironic that you took that long to explain what IP is not trying to protect, and offered no insight what-so-ever to what it is trying to protect!
Oh I know, I just need to go read whatever statute you are talking about (don’t worry, it’s my responsibility to find that out too) and see how much sense IP really makes.
Saying IP does not try to protect ideas admits that it is a state-run scheme to steal peoples’ physical property (i.e. recording devices, manufacturing goods, etc.) using frivolous claims to ownership that contradict the homestead principle.
April 12, 2011 at 10:56 am-
If “IP” does not refer to ideas, then to what does it refer? The claim to ownership of patterns on physical objects because you created that same pattern on a physical object you own?
I don’t think such a conception is even worth debating. You said above that you don’t think homesteading is the only way to acquire property, which literally means homesteading is never a way to acquire property because it is possible than another person will make a better claim of ownership to it later. Ownership doesn’t mean you own it for a little bit, it means you own it until you decide to give it up.
Furthermore, you have left totally unanswered 1) why there is any reason to admit other ways of acquiring property than homesteading and 2) in precisely what cases a claim to ownership can beat a homesteading claim. This is what is so dangerous and tyrannical about these formulations of property rights. You leave out all the details that are crucial to deciding when and where a violation happened, so that the only option left is to ask you or some other “official” (like the statutory law) on a per-case basis who’s wrong.
As I say every time, you haven’t offered a theory of property rights that supports your case. In fact, you haven’t even criticized other property rights thoeries, you’ve just coldly stated that you disagree with them. We keep hearing about how we get stuff wrong, and there’s no insight into what’s right.
It’s easy to say “you’re wrong”. It’s hard to discover actual error. How in the world is IP not about owning ideas, and how is it not simply absurd to claim there is a way to acquire property other than homesteading?
April 12, 2011 at 1:32 pm-
@sweatervest April 12, 2011 at 10:56 am
The concept is “original work of authorship”. If you can’t understand that intuitively, I can think of a few ways to help you.
1) write a novel, a short one, say 150 pages. When you are finished, type it up and proofread it and rewrite it and correct all the errors, cut out what you don’t need, add what you left out, invent characters, convey a sense of beginning, middle and end, and when you are done, you will have a manuscript of your novel. That is “it”. Or…
2) Read about it in the law itself and understand the terms that are defined, and how they operate against real facts. Or…
3) keep asking people here to explain it to you, and remain puzzled when you get different interpretations of the subject matter, depending on who you read.
Beyond that, I don’ t know how I can help you.
April 12, 2011 at 1:10 pm-
@sweatervest April 12, 2011 at 10:43 am
Oh I know, I just need to go read whatever statute you are talking about (don’t worry, it’s my responsibility to find that out too) and see how much sense IP really makes.
Or, you can just proudly cling to your ignorance about the very thing you are so opposed to. I am just saying that when you create a straw man by attributing things to IP laws that don’t exist, it is reasonable for me to object and point you to a way to verify whether what I’m saying is true. It is not reasonable to doubt the veracity of what I’m saying, and to refuse to verify it. Do you want to learn about Austrian economics by asking a blogger here to explain it to you?
Saying IP does not try to protect ideas admits that it is a state-run scheme to steal peoples’ physical property (i.e. recording devices, manufacturing goods, etc.) using frivolous claims to ownership that contradict the homestead principle.
I have said or admitted no such thing. Your one sentence here contains at least 4 assumptions which are all, at the very least, debatable. Stating them as conclusions is not an argument for or against anything.
April 11, 2011 at 9:41 pm-
“I believe you’d find that we are at least a century behind technologically than we would be without IP laws.”
Hard to believe – if this were the case the USSR and China (who had no IP laws for most of the 20th Century) would be a century ahead of the US and Europe technologically.
April 12, 2011 at 12:17 am-
Zing!
April 12, 2011 at 10:40 am-
While the claim is a stretch, obviously the lack of any meaningful property rights are what has undone China and the USSR, not IP specifically. But that sort of makes the point for the against IP crowd. Arbitrary property rights regimes cannot calculate and create chaos. As Kinsella has pointed out many times, much of the US patent volume is based around companies trying to acquire leverage against one another rather than actually trying to innovate anything great in the marketplace.
The internet is a fantastic environment to see how less IP plays out. There is almost no meaningful enforcement online, and there is an explosion of ideas and expression from nearly every participant. This wouldn’t be possible under the tightly regulated regime that IP supporters endorse. One only has to look at the lack of creativity in the B&M world to see the difference.
April 12, 2011 at 10:44 am-
So, what, the only difference between the U.S. and China/USSR is intellectual property laws?
What’s hard to believe or even take seriously is the claim that illegalizing certain types of peaceful production leads to more production.
April 13, 2011 at 3:37 am-
@Wildberry
I think you conflate rivalrous goods with economic rivalry.
Well, this is a point of contention. If you wanted to provide an explaination, I would be happy to respond. I think one implies the other.
See Mises again under his heading “The External Economies of Intellectual Creation”:
The extreme case of external economies is shown in the “production” of the intellectual groundwork of every kind of processing and constructing. The characteristic mark of formulas, i.e., the mental devices directing the technological procedures, is the inexhaustibility of the services they render. These services are consequently not scarce, and there is no need to economize their employment. Those considerations that resulted in the establishment of the institution of private ownership of economic goods did not refer to them. They remained outside the sphere of private property not because they are immaterial, intangible, and impalpable, but because their serviceableness cannot be exhausted.
Mises says it is “because their serviceableness cannot be exhausted” which equates to their non-scarce and non-rivalrous nature (which he is saying is the critical attribute as opposed to the claim that it is due to their immaterial-ness). That is, my use of a certain intellectual good doesn’t prevent your use of it or any other party’s. This is clearly different from saying that my use of the intellectual good is rivalrous with it’s creator’s because the creator wants me to pay him a royalty and yet I don’t want to. The rivalry here IS NOT rivalry in the actual good but rivalry in the cash that he’s claiming he is owed by me (and I’m rejecting his claim). Hence why I made the distinction between rivalrous goods and economic rivalry. I also used a tariff example when I explained this so I did try to elaborate on what I meant by this distinction.
You say ideas are non scarce yet original works are scarce. So just how exactly is an original work’s serviceableness exhausted? Why does Mises state with absolute clarity that technical manuals and formulas (both protectable under current IP laws) are NOT scarce yet you claim original works are? Where are the differences in production costs between Mises’ tech manuals and formulas and your original works that make the prior goods not scarce and the latter good scarce?
I can’t imagine you’ll be able to adequately make this distinction but please, go ahead.
April 13, 2011 at 10:43 am-
@matt470 April 13, 2011 at 3:37 am
Why does Mises state with absolute clarity that technical manuals and formulas (both protectable under current IP laws) are NOT scarce yet you claim original works are? Where are the differences in production costs between Mises’ tech manuals and formulas and your original works that make the prior goods not scarce and the latter good scarce?
Here is the rest of that section:
The External Economies of Intellectual Creation
The extreme case of external economies is shown in the “production” of the intellectual groundwork of every kind of processing and constructing. The characteristic mark of formulas, i.e., the mental devices directing the technological procedures, is the inexhaustibility of the services they render. These services are consequently not scarce, and there is no need to economize their employment. Those considerations that resulted in the establishment of the institution of private ownership of economic goods did not refer to them. They remained outside the sphere of private property not because they are immaterial, intangible, and impalpable, but because their serviceableness cannot be exhausted.
People began to realize only later that this state of affairs has its drawbacks too. It places the producers of such formulas–especially the inventors of technological procedures and authors and composers–in a peculiar position. They are burdened with the cost of production, while the services of the product they have created can be gratuitously enjoyed by everybody. What they produce is for them entirely or almost entirely external economies.
If there are neither copyrights nor patents, the inventors and authors are in the position of an entrepreneur. They have a temporary advantage as against other people. As they start sooner in utilizing their invention or their manuscript themselves or in making it available for use to other people (manufacturers or publishers), they have the chance to earn profits in the time interval until everybody can likewise utilize it. As soon as the invention or the content of the book are publicly known, they become “free goods” and the inventor or author has only his glory.
The problem involved has nothing to do with the activities of the creative genius. These pioneers and originators of things unheard of do not produce and work in the sense in which these terms are employed in dealing with the affairs of other people. They do not let themselves be influenced by the response their work meets on the part of their contemporaries. They do not wait for encouragement.[13]
It is different with the broad class of professional intellectuals whose services society cannot do without. We may disregard the problem of second-rate authors of poems, fiction, and plays and second-rate composers and need not inquire whether it would be a serious disadvantage for mankind to lack the products of their efforts. But it is obvious that handing down knowledge to the rising generation and [p. 662] familiarizing the acting individuals with the amount of knowledge they need for the realization of their plans require textbooks, manuals, handbooks, and other nonfiction works. It is unlikely that people would undertake the laborious task of writing such publications if everyone were free to reproduce them. This is still more manifest in the field of technological invention and discovery. The extensive experimentation necessary for such achievements is often very expensive. It is very probable that technological progress would be seriously retarded if, for the inventor and for those who defray the expenses incurred by his experimentation, the results obtained were nothing but external economies.
Patents and copyrights are results of the legal evolution of the last centuries. Their place in the traditional body of property rights is still controversial. People look askance at them and deem them irregular. They are considered privileges, a vestige of the rudimentary period of their evolution when legal protection was accorded to authors and investors only by virtue of an exceptional privilege granted by the authorities. They are suspect, as they are lucrative only if they make it possible to sell at monopoly prices. [14]. Moreover, the fairness of patent laws is contested on the ground that they reward only those who put the finishing touch leading to practical utilization of achievements of many predecessors. these precursors go empty-handed although their main contribution to the final result was often much more weighty than that of the patentee.
It is beyond the scope of catallactics to enter into an examination of the arguments brought forward for and against the institution of copyrights and patents. It has merely to stress the point that this is a problem of delimitation of property rights and that with the abolition of patents and copyrights authors and inventors would for the most part be producers of external economies.For me to go through this and address every point that I highlighted in this section is beyond what is practical here. However, there are two issues I will address: Scarcity and External Economies.
First, I do not dispute that both ideas and “works” inexhaustible in the service they render. However, I argue what is really a minor point; original works are scarce.
The “intellectual groundwork” Mises refers to is based upon the use of knowledge and ideas that exist in the public domain. In the case of a factory, this intellectual groundwork makes possible a product, whose property characteristics are not disputed, and which is clearly scarce by your thinking.
In the case of an author, the process of writing is this groundwork, the manuscript is the product. There is nothing scarce about the process of drawing ideas, facts, formulas, etc, from the non-scarce public domain. However no later replication is possible without the initial production of the original work. Its production and existence at that moment, before it has ever been copied is ultimately scarce, (there is only one in the universe). Because it is a tangible, material object, it could be transferred as with any other scarce good at that moment in time.
This explains why even Kinsella admits that the author owns the manuscript. I conclude therefore, that scarcity alone is not sufficient to determine whether property rights, a human device, are legitimate. If scarcity is your criteria, then the author is in possession of a scarce good, and as a property owner, has the right to transfer it under any conditions he wishes.
So, even using the concept of scarcity, it is reasonable to acknowledge that an original work is “property”. The more important question is, should we define it as property in the market? Do the rights in this property operate like all other property, that the rights of use are exclusive, and property represents a bundle of rights that can be alienated and limited under conditions of sale and/or license? How do we deal with the “economic rights” of this original product/property?
The rest of Mises’s writing here is about monopolies and external economies. Go to the section about monopolies footnoted here to understand what he says about equivocating the two connotations of “monopoly”.
He leaves the section, not by resolving the “drawbacks of this state of affairs”, but by pointing out that treating the work of authors and inventors as non-scarce “ideas” MEANS that producers of such goods will be producing for external economies. That is the drawback.
From here, I refer to the Coase Theorem, to understand what to do about the “public choice” problem of externalities. If you don’t want to read Coase, check out David Friedman’s book, Law’s Order, available online. He gives a great summary of the issues and how to look at the economics of law in relation to internalizing externalities.
The problem I have, when all is said and done, is that Kinsella advocates creating the externality, such that authors, by doing that very thing for this which the authors produced as the product of his privately owned means, namely offering it for sale and distribution, he merely finds that he is producing for “free-riders”.
By abolishing IP without acknowledging the consequences of the fact that humans will not act to produce for external economies, given a choice, he ignores the economic issues that result, namely that “that with the abolition of patents and copyrights authors and inventors would for the most part be producers of external economies.
Regards,
April 14, 2011 at 4:02 am-
@Wildberry
Fair comments. I also agree with yourself and Kinsella that the original manuscript is scarce and this is where it gets interesting for both sides of this debate yet doens’t really help us move on. Let me try and explain why I say this..
If you don’t mind, I’ll return to JNS’s (assuming it was his) “bucket” analogy where the material manuscript is the bucket, the work fixed on it is the immaterial contents of the bucket.
We all seem to agree without an initial “bucket” there is nothing that is protectable or could be considered property. I raised a query before though for things like short poems or songs that are easily remembered and then are perhaps only ever shared verbally (i.e. without a fixation) – does the current law not seek to protect these things because of the inherent difficulty in determining the veracity of a claim of originality or authorship without them or could there be another reason? This question may seem a little obscure but I think it is still both interesting and relevant to the debate because we’re both trying to work back to the fundamental principles of IP.
It then comes down alienability of the bucket from what it carries. The anti IP folks say that these things cannot simultaneously have two seperate property titles (a title for the bucket and one for what it contains) because the new property title in the intellectual good will have redistributive effects on other existent property titles. We accept that the value offering of the combined good perhaps (and really in all likelihood) is predominantly a function of what is in the bucket and not the bucket but this fact in itself does not make it proper to alienate it into two separate and distinct property titles. It is for this reason that we are ok with contracts that recognise the value of the contents of the bucket separate from the bucket but not giving them a universal and far reaching property title.
At any rate, the consumer will pay a price for the bucket that closely resembles how they value what it holds not simply a price for the bucket regardless of its contents. This is why I think it is unfair for some IP proponents to suggest that IP opponents either:
a) don’t recognise the difference in value between an empty bucket and a bucket carrying an original work (I suggest this difference is similar to me selling my house in a decrepid state or painted with a beautifully manicured garden… property title is the same but value offering is different and accounted for in sale price)
b) think authors should be entitled to nothing and that anybody is welcome to steal from them (although clearly we have disagreements around this “steal” definition depending on how property rights are defined).
c) there would be virtually no noticeable effects on how creators could be rewarded for their external economiesHowever no later replication is possible without the initial production of the original work. Its production and existence at that moment, before it has ever been copied is ultimately scarce, (there is only one in the universe). Because it is a tangible, material object, it could be transferred as with any other scarce good at that moment in time.
I agree with this, even the first sentence of it. This also explains why an author does have the ability to at least make some income from their work, albeit perhaps (even quite likely) significantly less than in an IP protected environment.
I’ve run myself out of time for now but wrapping-up quickly I would say that I agree that without IP legislation there is a predicament with production for external economies but I don’t like the property title in intellectual creations solution. I do not see why that is the only possible solution to this issue.
Thanks for you suggestion of David Friedman’s book – I’ll endeavour to have a look at it.
Regards.
April 15, 2011 at 1:53 pm-
@matt470 April 14, 2011 at 4:02 am
…does the current law not seek to protect these things because of the inherent difficulty in determining the veracity of a claim of originality or authorship without them or could there be another reason? This question may seem a little obscure but I think it is still both interesting and relevant to the debate because we’re both trying to work back to the fundamental principles of IP.
I would say no, that is not the objective of the law. It is a two-part objective: 1) to internalize the benefits of authorship to the author (i.e. incentive) and 2) to protect the public domain of ideas, etc. and facilitate public disclosure.
The exclusion of ideas, short phrases, slogans, etc. is because they are in the public domain, and do not rise to the level of “original work requiring a creative endeavor” to warrant exclusion from the public domain. Being to generous with the public domain would lead to all of the horrors that IP proponents claim in the “ideas are free” line of reasoning. The law recognizes and acknowledges this problem, and is designed to achieve some reasonable balance between protecting too much (ideas) and too little (no protection for original works).
To understand how the law operates to achieve this balance, you would have to learn something about the law. Short of that, let’s say that the principle of balancing competing interests has some utility for both sides.
It then comes down alienability of the bucket from what it carries. The anti IP folks say that these things cannot simultaneously have two seperate property titles (a title for the bucket and one for what it contains) because the new property title in the intellectual good will have redistributive effects on other existent property titles.
But this is not really true, is it? Let’s say property ownership of land is absolute. What does that actually mean? One thing it means is that any and all economic rights of that land belong to the owner. These economic rights can be alienated and traded as separate things. For example, I can sell the land itself, while retaining mineral rights. The mineral rights are one of the economic rights bundled together in the concept of “property ownership”. This is a universal rule of property. I could sell you a watch on the condition that you would only read the time during business hours, while retaining the right to the rest of the day. That is not meaningful in the case of a watch, but there is no principle of property rights that would prevent us from making such an agreement.
The issue is, why should IP operate in a completely different way than other property? There is no justification for that, as far as I can see, unless you just “made the rule” in order to arrive at the conclusion you want to reach; i.e. IP is “special property” that doesn’t involve a bundling of economic rights.
But this in not true. JNS recently described a list of economic rights associated with copyrights: rights to print, to movies, to translations, to paper back, hardcover, ePub, etc. Each economic right is negotiated as a part of the deal, and the owner can transfer those rights individually, or retain them while transferring others. This is precisely how all property rights operate in the open market. However, in order to do this, you must own the property in the first place. Once that is settled, then the “bundle” ownership is also settled, and can be the subject of a voluntary trade agreement.
We accept that the value offering of the combined good perhaps (and really in all likelihood) is predominantly a function of what is in the bucket and not the bucket but this fact in itself does not make it proper to alienate it into two separate and distinct property titles. It is for this reason that we are ok with contracts that recognise the value of the contents of the bucket separate from the bucket but not giving them a universal and far reaching property title.
I think you are getting lost in your analogy. No one is suggesting (I don’t think) that the owner of a manuscript would negotiate to sell off the paper it is written on while retaining the work that is printed upon it. To sell the work without the paper (carrier) would amount to a sale of copyright. It is sufficient to recognize that the work is what is being traded as it appears on the paper, which paper has a nominal value on its own. It object that is generating the subjective value held by the traders is the work.
However, if you think in terms of economic rights, you can see that in a contract situation between two parties, the owner could bundle the work and the paper (carrier in JNS’s terminology) as a unit, while retaining certain economic rights in the work. I think both sides even agree to the legitimacy of that, as long as it is accomplished within the context of a party-to-party contract.
In the case that is cited on the anti-IP side, someone who is not a party to the contract doing something that was prohibited to the parties to the contract (i.e. copying and distributing, or publically performing, etc.) is not bound. That is the real point of divergence between the two views.
In attempting to make a rule about how that situation is handled, you would have to refer back to the transaction, and make a determination of whether the authors rights were going to be recognized as property, thus binding all parties even those outside the contract, or as a strict contract issue, in which case you would have to rely on another theory. Although convoluted and high cost, trade secret, or interference with contract could be utilized and arrive at the same outcome.
For example, if one of the parties released the contents of the work in violation of the contract, liability would be assessed against the person who improperly released it. The problem then becomes whether the injured party can actually be compensated adequately for the loss. If not, then likely an injunction would issue, in which case the “innocent” third party would be enjoined from further use. It is a very costly way to arrive at the same outcome. This why, ultimately, it is a problem of externalities, and why the Coase Theorem applies.
At any rate, the consumer will pay a price for the bucket that closely resembles how they value what it holds not simply a price for the bucket regardless of its contents. This is why I think it is unfair for some IP proponents to suggest that IP opponents either:
a) don’t recognize the difference in value between an empty bucket and a bucket carrying an original work (I suggest this difference is similar to me selling my house in a decrepid state or painted with a beautifully manicured garden… property title is the same but value offering is different and accounted for in sale price)I think this is an analogy distinguishing a good story from a badly written one, and so makes a different point; all house for sale compete with all other houses for sale, and by analogy, all books compete with other books.
b) think authors should be entitled to nothing and that anybody is welcome to steal from them (although clearly we have disagreements around this “steal” definition depending on how property rights are defined).
Or to put it in more neutral terms, the author releases his work with the understanding that once he does, he is transferring the work into the public domain, and he no longer has any title to the economic rights from having once owned the manuscript.
c) there would be virtually no noticeable effects on how creators could be rewarded for their external economies
If b) were true, the possession of economic right of the private ownership of the manuscript would have to be recalculated, so that the author would need to make his economic calculations and develop his business plan based on this “new” reality. This is a matter of some considerable speculation.
It is not a difficult thought experiment, though, to place yourself in the shoes of such an author, and realize that if you are going to achieve anything close to the outcome you would have had under copyrights, it was going to come at a very high transaction cost. The higher the transaction cost and the lower the return form output, the less attractive the business plan becomes; economics 101.
However no later replication is possible without the initial production of the original work. Its production and existence at that moment, before it has ever been copied is ultimately scarce, (there is only one in the universe). Because it is a tangible, material object, it could be transferred as with any other scarce good at that moment in time.
I agree with this, even the first sentence of it. This also explains why an author does have the ability to at least make some income from their work, albeit perhaps (even quite likely) significantly less than in an IP protected environment.
I think there is little doubt about this, but like I said, it is a matter for speculation, since we can’t run a sociological experiment.
I’ve run myself out of time for now but wrapping-up quickly I would say that I agree that without IP legislation there is a predicament with production for external economies but I don’t like the property title in intellectual creations solution. I do not see why that is the only possible solution to this issue.
After thinking about what you have said here, I think you have a limited concept (no offense intended) of what property rights are and how they operate.
While much time and attention has been paid to the justification for recognizing property rights (or not), very little has been paid to the issues of the economic of law introduced by Coase. If you look at that issue, I think you will see that there is more than one way to get from point A to point B. You can accomplish much of the things with contracts that you can with property rights, and so you have to understand why one would be more efficient over the other in a particular set of circumstances.
Friedman’s book takes off exactly at this point.
Regards,
April 18, 2011 at 2:10 am-
@ Wildberry
Your response smacks of elitism again. One does not need to be a lawyer to have an opinion on what constitutes just law. I’m not offended as it is simply an irrelevant critism that adds no value to our debate. It is a tactic that you use prolifically when you’re unable to clearly state your position (or clearly refute the position of others) on a fundamental principles level. Any law not based on underlying principles that are able to be discussed in plain language is clearly unjust and not worthy of discussion.
Your first paragraphs either knowingly or involuntarily completely ignores the point of my question. The crux of my question is to do with the need for fixation onto a tangible medium in order to be recognised as property under copyright law. According to Wildberry…
The exclusion of ideas, short phrases, slogans, etc. is because they are in the public domain, and do not rise to the level of “original work requiring a creative endeavor” to warrant exclusion from the public domain.
This explaination is incongruous with the requirment for fixation. Poems and song lyrics (as my original example pointed out and yet you ignored) are subject to copyright if fixed on a tangible medium but then not able to be copyrighted if they haven’t been fixed on a tangible medium (eg. transferred verbally). Yet your response infers that song lyrics become an “original work requiring a creative endeavor” by the process of fixation itself.
It seems you want to play games with this one. It would be far easier and more logical just to accept that the requirement for fixation is in the statute to verify the voracity of the originality and the true creator of the work.
Separating rights to mineral wealth from the land itself is quite different from separating “economic rights” in IP. The glaring difference is in the rivalrous nature of the material goods “land itself” and “mineral wealth” – we cannot both grow crops on the same piece of land or both mine the same mineral from the ground in the same location. With the intellectual work fixed on a book we can both use it at the same time (admittedly not with the original manuscript but once the good has been distributed beyond this). I can transfer the intellectual content from an original work I have access to into my possession (and at my cost) without having any effect on that original work (save any loss of special monopoly priveleges had they been granted). This sticking point has not changed for either of us in quite some time and seems unlikely to.
April 18, 2011 at 12:29 pm-
@matt470 April 18, 2011 at 2:10 am
Your response smacks of elitism again. One does not need to be a lawyer to have an opinion on what constitutes just law. I’m not offended as it is simply an irrelevant critism that adds no value to our debate. It is a tactic that you use prolifically when you’re unable to clearly state your position (or clearly refute the position of others) on a fundamental principles level. Any law not based on underlying principles that are able to be discussed in plain language is clearly unjust and not worthy of discussion.
I am offended a bit by your accusation of elitism. You feel I’m talking down to you? I didn’t say you needed to be a lawyer, but I think it is unreasonable of you to insist that I not make reference to something that exists to try to further your understanding of my meaning. Why do you feel entitled to dismiss something I say simply because I am referring to a particular way of defining things that is consistent with existing law?
My objective is not to appeal to authority, but to explain my position, and for you to offer your acceptance or objection to what I am intending to convey. That is the basis for communication.
However, this is not a perfect communication channel, and I suppose I am capable of misunderstanding what you are getting at. Feeling that what one is saying is not understood by those reading and responding to it here is a common experience.
This is what you asked:
…does the current law not seek to protect these things because of the inherent difficulty in determining the veracity of a claim of originality or authorship without them or could there be another reason?
…
If you want to not be misunderstood, try asking more clearly. It is unreasonable for you to assume your question was so clear that the only explanation for misunderstanding is my arrogance. If the shoe fits…
I am responding to the “another reason” part of your question.
If you are not asking about how a distinction can be made between “ideas” and “original works” but rather the requirement for fixation, then I think this is so obvious that I may have assumed this is not what you were really asking.
Anyway, my answer to that question is that we cannot deal with things we can’t know. By definition, a work without fixation is unknowable; i.e. intangible. The law uses the concept of rights in the “intangible work” in order to deal with different forms of fixation. As I understand Neil, he says that the fixation creates a tangible object with “identity”, and that once fixed, it is always fixed somewhere. Therefore he deals with it as a “material object”. In my view this is simply two ways of saying the same thing; that the work is protectable as property because at the point at which it is fixed, it clearly is a property object that is owned by the author. I arrive at the same conclusion using the principles of “self-ownership” and “private ownership of the means of production” principles. All roads lead to the same destination.
From that point on, we are no longer talking about the natural rights of property, since they have already arisen, and all sides acknowledge that the work is property, and can be dealt with through the mechanism of contract, but only to the extent that only the parties to the contract are bound. In my way of thinking, only things that are “owned” can be the subjects of a contract, and something that is owned is in fact property, in that it is an object for which the party has exclusive rights to use and/or possession.
One “property” of property, is that ownership of an object means ownership of all the bundles of rights that are contained in the ownership of that object. This is why in a contract we can release title to some part of the property (mineral rights) without also transferring other parts (the right to live on the land and exclude trespassers). This is a fundamental principle of property rights.
You and other opponents to IP insist that the device of property rights are unavailable to the author, and any transfer amounts to a complete transfer of the rights in the work. This is a decree by fiat. You simply define your theory of property in a way that says that IF an object is subject to low-cost replication and its service is inexhaustible, in the way that an idea ins inexhaustible in the service it renders, then ALL information must follow this principle and be exempt from economic and legal treatment as property.
I disagree.
By your logic, a book would remain property as long as it was never copied.
If we grant absolute rights of disclosure to the author, then likely, private libraries (i.e. the “church” or “information priesthoods”) would be the only way knowledge could be accessed. You solve the problem of disclosure by simply denying the right to public access. OK, that’s one way to go. OR…You can grant unlimited property rights in the author, and over the centuries, all information and knowledge eventually becomes private property; there is no concept of the public domain. OR…
You can assign the right of disclosure to everyone, so disclosure is mandatory and information products always becomes part of the public domain. In this case the author would be producing, for the most part, for external economies. He may, of course, simply choose not to produce.
Each approach creates other problems. This is the public choice problem we must face.
That is where we are. To understand my argument, you must leave the discussion of natural rights, and switch to an economic analysis that involves economic rights, externalities, transaction costs and efficient outcomes.
It seems you want to play games with this one.
I think we can have a good discussion, but it is arrogant of you to assume something other than the difficulties of communication on such a difficult topic. How about you assume the best motives instead of the worst?
It would be far easier and more logical just to accept that the requirement for fixation is in the statute to verify the voracity of the originality and the true creator of the work.
I don’t really know what you are trying to say, especially the way you seem to be using the work “originality, but I suppose, if I properly assume your meaning, this is part of the purpose; tracing the origination of a work to an original author using principles of causation.
But it is also helpful in the enforcement of property rights in the work, because by dealing only with the fixations, you can rely on standard property theories in assigning ownership and liability rights. Laws can only deal with what it knows. The more it has to know and the more difficult it is to know it, the less effectively a law can do its intended job.
Separating rights to mineral wealth from the land itself is quite different from separating “economic rights” in IP. The glaring difference is in the rivalrous nature of the material goods “land itself” and “mineral wealth”
I get this, so it is not necessary to keep returning to an explanation. You are holding that the impossibility of simultaneous use is the single criteria that determines whether property rights are available to deal with economic issues. I view this as simply assuming a particular conclusion. I believe if you review the comments of Kid Salami, you will see that he understands the anti-IP position in the same way.
Mises understands this and presents the problem as an externality in a very few paragraphs. His first principles are these:
1)Property is a human device
2) Works of authorship (for convenience, as currently defined as the subject of copyrights) function in the same way as ideas (although there is clearly a meaningful distinction between the two), in the sense that once you possess them, you possess the “factory” to copy them at low cost. Their serviceability is inexhaustible.
3) Either of the two pathways you take from this point creates its own set of problems:
a) if you permit no property rights in the author and permit unlimited replication, then the author, for the most part, is producing for an external economy.
b) If you permit absolute property rights in the author, then the public domain eventually disappears, and the public exchange of knowledge is curtailed, for the most part.
Deciding what path to take are the economic policy problems of public choice, the Coase problem of externalities, and the principle of efficient outcomes. Friedman deals with this topic in contemporary terms that is very understandable and useful.
Unless you are willing to examine that type of analysis, then you are stuck at the point where you merely insist that works, because they can be copied as easily as ideas, are nothing more than ideas that belong in the public domain, and therefore any author that produces a work, and releases it, has by your definition released it into the public domain.
I believe that we have a right to choose how we want to handle our affairs, and have the right to self government, and the right to establish rules that protect property interests as a way to make public choice decisions.
You have a much more restricted view; that there a few rules that everyone must follow all the time in order to be “free”. From a philosophical vantage point, I see your world-view a being much more restricted in overall liberty than mine. I think you hold the opposite view, that you are serving the purpose of greater liberty.
If you really want to resolve that difference, we will have to face the actual problems of public choice, and deal with the facts as they are, and not has one might imagine them to be. I think this is particularly difficult for someone who holds the strong belief in advance that any solution that requires laws is excluded, because laws imply the state, and the state is the antithesis of liberty. To quote Kinsella, “We have IP because we have the state”.
If you simply insist that you have defined property in a way that ALWAYS excludes information products, then I agree, there is little left to discuss. You have excluded the principle of property from the realm of possible answers to the problem Mises defines. You have selected an ideology which you simply require the world to conform to.
April 19, 2011 at 9:54 am-
@Wildberry
My apologies for the offense, perhaps I too quickly presumed your intentions were an appeal to authority as you say.
If you are not asking about how a distinction can be made between “ideas” and “original works” but rather the requirement for fixation, then I think this is so obvious that I may have assumed this is not what you were really asking.
Yes it was a question that I thought had an obvious answer but I wanted to get your take on it. I was not asking for reasons of distinguishing ideas from original work because I accept what you’ve previously argued on this; notwithstanding my opinion that difficulties will often arise in deciding where exactly to draw the line between the two. I’m not even sure exactly where I was going with that question in the first place but I guess I was more interested in whether from a legal point of view the tangible fixation is only relevant for evidentiary value. Let’s move on…
Mises understands this and presents the problem as an externality in a very few paragraphs. His first principles are these:
1)Property is a human device
2) Works of authorship (for convenience, as currently defined as the subject of copyrights) function in the same way as ideas (although there is clearly a meaningful distinction between the two), in the sense that once you possess them, you possess the “factory” to copy them at low cost. Their serviceability is inexhaustible.
3) Either of the two pathways you take from this point creates its own set of problems:
a) if you permit no property rights in the author and permit unlimited replication, then the author, for the most part, is producing for an external economy.
b) If you permit absolute property rights in the author, then the public domain eventually disappears, and the public exchange of knowledge is curtailed, for the most part.
My preference is for “a” and then see what solutions the market offers. Authors are free to engage in lawful activities that make duplication difficult and it is easy to see this potentially being far easier in a digital ebook age (but equally the possibility of it becoming accessible in an unauthorised manner and then replicated rapidly are also real). For some strange reason this fits well with my principles and feels more libertarian to me. I accept the result may not achieve a pareto improvement but then I don’t really rate such a thing. I haven’t had a chance to read Coase yet but I will have a look.
April 19, 2011 at 10:52 am-
@matt470 April 19, 2011 at 9:54 am
We’re good. This is a difficult format, so some benefit of the doubt is appropriate.
Yes, this is the standard Ancap position (without meaning to imply what you may believe).Since we cannot design social experiments, we have to speculate and rely on reason and analysis.
Coase provides a breakthrough in the analysis of externalities, and for this he won the Nobel prize. David Friedman wrote more recently on this and other related subjects. In order for the market to “come up with something” it must operate on the given rules, otherwise no calculation is possible.
No property rights in IP is such an assumption, so you would have to formulate a thought experiment and look at the issues. Mises starts us out by pointing out the existence of the externality problem. Most economists looked at the problem of simply imposing some regulation that internalizes the externality.
Coase showed that the issue of externalities was a function of transaction costs. If the transaction costs were low, (i.e. a contract between two parties with clear and compelling interests on both sides) then there is no need, or it doesn’t really matter how you assign rights as long as they are reciprocal. The Coase model is a train that throws sparks causing fires, and farmers adjoining the tracks who have their crops burned. We need trains and we need crops. If the transaction costs are high (not one farmer but 100′s of farmers), you run into other problems, like the public choice/holdout and free-rider problems.
In this case, the use of property rights produces the more efficient outcome. Fundamentally, this is the basis for the statement that property is a human device, and that in the case of a work or authorship, property rights is the preferred solution to the problem of public choice.
FYI, the pubic choice problem is that 2a) produces externalities for the author, and 2b) produces a limitation on the protection of the public domain and access to works.
This is a problem concerning the economics of law, and is the area of study that Coase was involved in. He was an economist that studied case law and made observations about what the common law had done and why. From this work he developed the Coase Theorem. It is an academic specialization, like economics or law by themselves, but attempts to look at the economic impacts of laws and tries to answer the question, “What is a good law?”.
Regards,
April 20, 2011 at 1:17 am-
@ Wildberry
I accept what you say above and agree that there are problems with externalities in not allowing property rights in IP. I will need to read some of Coase (or Friedman’s take on it) in order to go any further in this debate – which I’ll hopefully undertake in the coming few days off (Easter).
Regards.
April 20, 2011 at 8:28 am-
Friedman is much easier to read.
Anyway, good luck.
Regards, Matt.
April 26, 2011 at 10:01 am-
I read Friedman on Coase and I think it is good work. It is not until he ‘plays out’ some of the scenarios under the different ways of handling externalities that it becomes pretty clear and sensible that having well defined property rights does lead to more optimal solutions.
I’m not entirely sold on his point about cases where there are high transaction costs that regulation may prove the better solution because I think the “free-rider” problem can be over emphasised (I acknowledge of course that the problem exists – it’s the just the extent of it that I question). In fairness, having not read Coase himself, I wouldn’t stress this objection too strongly.
I can see why you’ve referred to Coase within our IP discussion but it doesn’t really solve our disagreement on a fundamental level. To decide to classify something as property in order to optimise a solution in dealing with its externalities does not necessarily make it a just classification. For example we could classify ideas as property in order to optimise solutions for their originator’s externalities and it would be hard to disagree with simply by referring to Coase (although the high transaction cost issue may be a bit of an out).
Anyway, you’ll be happy to note that I’ve changed my position somewhat. I think on a fundamental level it is perhaps reasonable to have some limited form of copyright but I would stress the word limited and then highlight it and perhaps then underline it for good measure. Yes it is a system that some would argue already is limited but I think it is ridiculously out of whack with its purpose.
I think that copyright is perhaps the best justification for IP and that other types of IP like patents are far more sinister. The industry I work in uses a vast array of patenting techniques to prolong protections and keep competitors out of highly profitable markets well past the point of R&D recovery costs and future incentivisation. In so many cases its like the goose that lays the golden egg. One such way is to patent a new product, then patent it’s use pattern and then pattern it’s manufacturing method and we end up with a maze of partially overlapping but seemingly ever extending patents.
In fairness to the IP opponents, I think many of their arguments are strong and well thought out and particularly around the issue of arbitrariness. I also don’t think having IP is a justification for the state (as in AJ Nock’s distinction between government and state). I am more a minarchist than anarchist but not because the arguments for ancap are weak (I like a lot of Rothbard’s and Hoppe’s work) but because I find them hard to reconcile with human nature in the way someone like Mencken so well describes (the warm reassuring smell of the herd…).
The eternal problem with limited government is the same as limited copyright or IP – who is responsible for the job of creating and policing the limits. Just have a look at how well the US is going at keeping within it’s constitution limits.
Regards.
April 26, 2011 at 11:45 am-
@matt470 April 26, 2011 at 10:01 am
I read Friedman on Coase and I think it is good work. It is not until he ‘plays out’ some of the scenarios under the different ways of handling externalities that it becomes pretty clear and sensible that having well defined property rights does lead to more optimal solutions.
Good. I look forward to reading about how this perspective affects your arguments. It will be refreshing for me, I think.
I’m not entirely sold on his point about cases where there are high transaction costs that regulation may prove the better solution because I think the “free-rider” problem can be over emphasised (I acknowledge of course that the problem exists – it’s the just the extent of it that I question). In fairness, having not read Coase himself, I wouldn’t stress this objection too strongly.
If you read Freidman , you probably don’t need to read Coase to get the idea. The free-rider problem is dependent on the facts of the controversy. It can be huge, or only a small factor, depending.
I can see why you’ve referred to Coase within our IP discussion but it doesn’t really solve our disagreement on a fundamental level. To decide to classify something as property in order to optimise a solution in dealing with its externalities does not necessarily make it a just classification. For example we could classify ideas as property in order to optimise solutions for their originator’s externalities and it would be hard to disagree with simply by referring to Coase (although the high transaction cost issue may be a bit of an out).
What is our disagreement on a fundamental level? On this other thread, which I hope you are following, ( http://blog.mises.org/16570/cordato-and-kirzner-on-intellectual-property/comment-page-1/#comment-774492 ) about all the opponents have agreed that an author who has never shared his manuscript, could recreate copyright statutes by contract, making the unauthorized disclosure to a third party a condition for payment of a performance bond.
Of course, the cost of that bond would have to be added to each transaction, in addition to the cost of reading and negotiating and executing what amounts to a “publisher’s contract” for every customer buying a book. Then there are the costs of enforcement under contract theory, where the problems would be large because of the incentives for fraud (the party to the contract “leaks” the contents in an indictable way, and there is no cause of action against the third party.) This cost also has to be figured into the price.
The net result is that there is no efficient solution available under contract law exclusively. The book cannot be transferred to the party who values it most (the public) in the absence of a property rights to the work. That is the lesson of Coase.
Interestingly, you could arrive at the same result by placing the right in either party (author or public) as long as the one with the right paid the other for their costs. So if you said that the public had a right to access, and the author had a right to disclosure on a consumer by consumer basis, then traders will arrive at the efficient solution (a price that both are willing to accept).
But also true, as you look at Friedman’s work, is that there are more than one way to approach the problem. The best solution is elegant and intelligent. (Have you seen the TED piece on restoring dry waterways posted by Tucker recently?)
Anyway, you’ll be happy to note that I’ve changed my position somewhat. I think on a fundamental level it is perhaps reasonable to have some limited form of copyright but I would stress the word limited and then highlight it and perhaps then underline it for good measure. Yes it is a system that some would argue already is limited but I think it is ridiculously out of whack with its purpose.
It is not necessary for me to argue that copyright is perfect, any more than it is necessary to argue that the US Federal Government is perfect in order to support a concept of a libertarian right to self-government; far from it.
But the fundamental question remains; is there a legitimate right of the author to what he produces? From that answer, as a first principle, you can debate endlessly what approach and the limits of those rights should take, as we should.
I think that copyright is perhaps the best justification for IP and that other types of IP like patents are far more sinister. The industry I work in uses a vast array of patenting techniques to prolong protections and keep competitors out of highly profitable markets well past the point of R&D recovery costs and future incentivisation. In so many cases its like the goose that lays the golden egg. One such way is to patent a new product, then patent it’s use pattern and then pattern it’s manufacturing method and we end up with a maze of partially overlapping but seemingly ever extending patents.
First, I agree with you about copyrights. That is why I have focused on that as the case to test the fundamental issues. Second, while I know much less about patents, I agree with you. We are not producing an efficient outcome. We can do better. What we are doing is wasteful. But mercantilism in general is wasteful. It is always wrong to intervene in the operation of the free market. However, it is a different matter to throw out the baby with the bathwater (even if you do so because you believe it is Rosemary’s baby), because we know that not EVERY baby is so cursed.
The ability to distinguish between one thing and another is a monumentally important aspect of having and keeping liberty.
In fairness to the IP opponents, I think many of their arguments are strong and well thought out and particularly around the issue of arbitrariness. I also don’t think having IP is a justification for the state (as in AJ Nock’s distinction between government and state). I am more a minarchist than anarchist but not because the arguments for ancap are weak (I like a lot of Rothbard’s and Hoppe’s work) but because I find them hard to reconcile with human nature in the way someone like Mencken so well describes (the warm reassuring smell of the herd…).
Arbitrariness is the main issue, and why this subject (as is all laws at the margins of those “fuzzy lines” that Friedman refers to) is so contentious. IP opponents have selected some strong arguments, but strong is not right. I have learned that what seems strong can become pretty weak when you dig deeper. That is what I have been doing here. I did not start out trying to prove my case one way or the other. I simply took the adversarial position in order to foster debate, and have reached a point where I have a pretty strong sense of where I stand and why.
As to the distinction between State and (self-) government, I agree completely. Cooperating humans will develop institutions of self-government. These institutions are subject to mercantilist attack. Lack of vigilance and a lack of clarity between one things and another is a tool of mercantilism. I am opposed to it in every instance. Political power should not be ceded to special interests of any kind. Being able to distinguish between a libertarian right to self government and mercantilism in any form, is a critical distinction, and making it (and explaining it) is not easy. I am trying to improve in this endeavor.
The eternal problem with limited government is the same as limited copyright or IP – who is responsible for the job of creating and policing the limits. Just have a look at how well the US is going at keeping within it’s constitution limits.
The answer is inconvenient and inescapable; we are. If we are pursuing an ideal of self-government, we can’t ignore the “self” part. Unjust laws should be opposed. We have the power to do so, but we are not well organized to wage the battle. That is the problem. It is a big one, and quite frankly, when I first started coming to this site, I had expectations of greater common ground that I’ve discovered. These debates about IP are simply a vehicle for exploring that situation.
I hope to see you more often on these pages.
Best regards,
April 26, 2011 at 11:18 pm-
Wildberry,
The ability to distinguish between one thing and another is a monumentally important aspect of having and keeping liberty.
So stop confusing, stop using vague language and stop running away from debates.




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