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Shughart’s Defense of IP

From the Mises blog; archived comments below.

See also Independent Institute on The “Benefits” of Intellectual Property Protection.

Shughart’s Defense of IP

01/29/2010

Free-market economist Professor William F. Shughart II attempts to defend the need for IP in “Ideas Need Protection,” The Baltimore Sun (Dec. 21, 2009) (previously published in the Christian Science Monitor; reprinted below). Subtitled “Abolishing Intellectual-property, Patents Would Hurt Innovation: A Middle Ground Is Needed,” the piece suffers from flaws found in others defenses of intellectual monopoly and pattern privilege. For example, Professor Shughart writes:

Article I, Section 8, of the Constitution explicitly delegates to Congress authority “to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.”

While it is true that copyright and patent are constitutional, this does not make these laws just. What the artificial law-writing coup-leaders wrote a document designed to help the state seize more power is simply not relevant to the normative question of whether there should be IP.

Pro-patent law arguments rest on the assumption that the patent system generates overall wealth–that its benefits are greater than its costs–without ever making this case. Instead, they point to ways that the patent system benefits some people, and never bother to even try to tally up the costs to make sure it’s a net positive. In other words, they don’t even take their own justifications seriously. Shughart makes the same mistake:

Developing and successfully commercializing new products and technologies typically requires large investments of time and treasure. Most research and development (R&D) investments end in failure.

Granting a temporary monopoly to the rare breakthrough is necessary, therefore, to provide its inventor with an opportunity to earn a return on the investment that led to the new idea–and to encourage additional such investments. Such protection is especially important in the pharmaceutical industry, where, in its absence, new drugs could be duplicated by competitors, and the incentive to invest would disappear, stifling the discovery process.

The word “therefor” is unwarranted; this is a non sequitur. Later on in the piece, he writes:

Incentives matter. Although there may be a passionate few who don’t require payment for contributing to the common pool of knowledge, technological advancement will be much more rapid if an explicit economic payoff is available.

Much more rapid–? How much more? Who knows? The IP advocates don’t. So how do they know it justifies the cost?I found this to be an refreshing admission of the stifling effect mercantilist intellectual monopoly has on the spread of ideas:

To paraphrase the late economist Joan Robinson, patents and copyrights slow down the diffusion of new ideas for a reason: to ensure there will be more new ideas to diffuse …1

Unfortunately, he supports these laws anyway. Shughart also candidly and explicitly admits the monopoly character of of patent and copyright:

Granting a temporary monopoly to the rare breakthrough is necessary…

(Some IP advocates get very irked when patents are called monopolies. For example (as noted in Are Patents “Monopolies”?), patent attorney Dale Halling, in a piece entitled “The Myth that Patents are a Monopoly,” writes, “People who suggest a patent is a monopoly are not being intellectually honest and perpetuating a myth to advance a political agenda.” But it is common for IP advocates to acknowledge this. For example, Richard Epstein writes “Patented goods are subject to a lawful monopoly created by the state in order to induce their creation … The legal monopoly granted by the patent is the only mechanism that allows the producer to recover those fixed costs….” And Objectivist IP attorney Murray Franck has argued that “if the creator’s rights are not protected, his survival is jeopardized. If another can market his creation, the creator is deprived of the money he would otherwise earn.” See also my comments here, noting that even the Supreme Court and other federal courts slip up and admit the monopoly character of IP on on a regular basis.)

Consider this argument our author makes:

It is true that other means exist for creative people to profit from their effort. In the case of copyright, authors can charge fees for reading their works to paying audiences. Charles Dickens did this, but his heavy schedule of public performances in the United States, where his works were not protected by copyright, arguably contributed to his untimely death.

Can Shughart really be arguing that we need copyright, for otherwise another potential Charles Dickens might drop dead early? (This reminded me of a bizarre argument made by patent attorney Gene Quin, noted in this post. In an online discussion, IP opponent David Koepsell had mentioned “that in the 19th and early 20th centuries, two of the most innovative countries on earth (The Netherlands and Switzerland) had no patent systems at all.” In response, Quinn says: “Thank goodness the Swiss did have a Patent Office. That is where Albert Einstein worked and during his time as a patent examiner came up with his theory of relativity.” So … we need a state-granted monopoly system … so that Albert Einstein could have had a job in Switzerland. What does one even say in response to such an “argument”?)

Professor Shughart continues:

The hard questions are: What kinds of ideas should be eligible for patent and copyright protection, and how long should that protection last?”

What’s needed is a middle ground. Even if we can all agree that intellectual property is an important social commodity, one size doesn’t fit all in the modern Digital Age.

While a 20-year monopoly may be appropriate for new drugs, it may not be appropriate for software, a new electronic game or, as Justice Sonia Sotomayor seemed to suggest during questioning in the Bilski case, a new “speed-dating service.”

A 20-year patent monopoly on a method for speed-dating may not be appropriate?! How would Justice Sotomayor know, really?

As for there being “hard questions”–who can answer them? And if “we need a middle ground”–even though we have no evidence to know where the “optimum” is–how can we achieve this? Who can do it? Shughart’s answer: Congress and the courts:

Rather than abolishing patent and copyright protection for some categories of intellectual property, Congress and the courts should consider varying the length for which exclusive monopoly privileges are granted, depending on the expected commercial vitality of the creative work. [emphasis added]

The state is neither benevolent nor competent (well, they are good at two things: destruction, and propaganda). There is no reason to believe Congress or the courts want, or are equipped, to find the “right” answers to such questions. (As J.H. Huebert observes about government courts: “In general, judges and those who appoint them have no reason to want to limit government. … Have not judges been responsible for some of the most outrageous expansions of government power? And, after all, are judges not a product of the same political system that gives us legislators and presidents? What president would appoint judges who would tell him he cannot do anything he wants? What Senators would confirm a judicial candidate who tells them that everything they have ever done in office is unconstitutional? The whole enterprise of libertarian constitutional theory ignores all we have learned from public choice economics about the incentives of government actors.”) There is no reason to trust state employees to determine the optimum length of patent and copyright monopolies for various types of inventions and artistic works, much less by using “the expected commercial vitality of the creative work” as a test.

***

Appendix:

N.B: My original draft was done in very sarcastic style. At the urging of some friends, I ultimately decided to rewrite it in more standard, serious, respectful, straight style. But for those who like a bit of humor, here’s the original sarcastic post:

Shughart’s IP Parody

In “Ideas Need Protection,” subtitled “Abolishing Intellectual-property, Patents Would Hurt Innovation: A Middle Ground Is Needed,” free-market economist William F. Shughart II has penned a wickedly funny parody of typical arguments in favor of IP. Brilliantly, he somehow managed to slip it by the editors of The Baltimore Sun as well the Christian Science Monitor, where it was first published, without either publication realizing it was a parody.

Shughart mocks the arguments typically given in defense of intellectual monopoly and pattern privilege, such as appeals to authority and positive law, when he writes:

Article I, Section 8, of the Constitution explicitly delegates to Congress authority “to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.”

Ha ha! As if what the artificial law-writing coup-leaders wrote a document designed to help the state seize more power is relevant to the normative question of whether there should be IP. Good one, Professor.

He goes on, mercilessly lampooning the intellectual monopolists:

Developing and successfully commercializing new products and technologies typically requires large investments of time and treasure. Most research and development (R&D) investments end in failure.

Granting a temporary monopoly to the rare breakthrough is necessary, therefore, to provide its inventor with an opportunity to earn a return on the investment that led to the new idea–and to encourage additional such investments. Such protection is especially important in the pharmaceutical industry, where, in its absence, new drugs could be duplicated by competitors, and the incentive to invest would disappear, stifling the discovery process.

I like this. First, he demonstrates how pro-patent law arguments rest on the assumption that the patent system generates overall wealth–that its benefits are greater than its costs–without ever making this case. Instead, they point to ways that the patent system benefits some people, and never bother to even try to tally up the costs to make sure it’s a net positive. In other words, they don’t even take their own justifications seriously. The point is reinforced by the totally unwarranted word “therefore” inserted above, in a blatant example of non sequitur. Revisiting this theme later on in the piece, our author writes:

Incentives matter. Although there may be a passionate few who don’t require payment for contributing to the common pool of knowledge, technological advancement will be much more rapid if an explicit economic payoff is available.

Much more rapid–? How much more? Who knows! The IP advocates don’t! “What are they jabbering about? How do they know?”, Shughart seems to be saying, if you read between the lines.

Professor Shughart has no doubt noted that although it gives IP advocates a case of the vapors if you call IP a “monopoly,” too many hapless IP advocates just seem unable resist admitting this. Thus, he writes:

To paraphrase the late economist Joan Robinson, patents and copyrights slow down the diffusion of new ideas for a reason: to ensure there will be more new ideas to diffuse … Granting a temporary monopoly to the rare breakthrough is necessary…

This is just a perfect impression of the typical blunder made by patent and copyright proponents when they inadvertently acknowledge the stifling effect mercantilist intellectual monopoly has on the spread of ideas. This is a very common faux pas of the monopolists, who forget to hide the fact that IP is, in fact, a monopoly. When IP’ers stray from the reservation like this, it really irks the organized pro-patent forces. For example (as noted in Are Patents “Monopolies”?), patent attorney Dale Halling, in a piece entitled “The Myth that Patents are a Monopoly,” writes,

People who suggest a patent is a monopoly are not being intellectually honest and perpetuating a myth to advance a political agenda.

But, as Shughart demonstrates, all too often the pro-monopoly forces can’t help themselves and inadvertently let the truth tumble out of their mouths. For example, we have pro-patent Richard Epstein (see Epstein and Patents), noting that

Patented goods are subject to a lawful monopoly created by the state in order to induce their creation … The legal monopoly granted by the patent is the only mechanism that allows the producer to recover those fixed costs….

And here we have Objectivist IP attorney Murray Franck arguing that “if the creator’s rights are not protected, his survival is jeopardized. If another can market his creation, the creator is deprived of the money he would otherwise earn.”

And see my comments here, noting that even the Supreme Court and other federal courts slip up and admit the monopoly character of IP on on a regular basis:

“Section 154 and related provisions [e.g. Sec. 271] obviously are intended to grant a patentee a monopoly only over the United States market….”; “Congress made the policy choice that the “carrot” of an exclusive market for the patented goods would encourage patentees to commercialize the protected inventions so that the public would enjoy the benefits of the new technology during the patent term in exchange for granting a limited patent monopoly. In other words, the public expected benefits during ‘the embarrassment of an exclusive patent as Jefferson put it.’”; “We hold that the disputed royalties provisions do not inappropriately extend the patent monopoly to unpatented parts of the patented system”; “A patentee, in demanding and receiving full compensation for the wrongful use of his invention in devices made and sold by a manufacturer adopts the sales as though made by himself, and therefore, necessarily licenses the use of the devices, and frees them from the monopoly of the patent.”; “The Florida statute is aimed directly at the promotion of intellectual creation by substantially restricting the public’s ability to exploit ideas that the patent system mandates shall be free for all to use. Like the interpretation of Illinois unfair competition law in Sears and Compco, the Florida statute represents a break with the tradition of peaceful coexistence between state market regulation and federal patent policy. The Florida law substantially restricts the public’s ability to exploit an unpatented design in general circulation, raising the specter of state-created monopolies in a host of useful shapes and processes for which patent protection has been denied or is otherwise unobtainable. It thus enters a field of regulation which the patent laws have reserved to Congress. The patent statute’s careful balance between public right and private monopoly to promote certain creative activity is a “scheme of federal regulation . . . so pervasive as to make reasonable the inference that Congress left no room for the States to supplement it.”; “Whatever weight is attached to the value of encouraging disclosure and of inhibiting secrecy, we believe a more compelling consideration is that a process patent in the chemical field, which has not been developed and pointed to the degree of specific utility, creates a monopoly of knowledge which should be granted only if clearly commanded by the statute. Until the process claim has been reduced to production of a product shown to be useful, the metes and bounds of that monopoly are not capable of precise delineation. It may engross a vast, unknown, and perhaps unknowable area. Such a patent may confer power to block off whole areas of scientific development, without compensating benefit to the public. The basic quid pro quo contemplated by the Constitution and the Congress for granting a patent monopoly is the benefit derived by the public from an invention with substantial utility. Unless and until a process is refined and developed to this point — where specific benefit exists in currently available form – there is insufficient justification for permitting an applicant to engross what may prove to be a broad field.”; “I agree with the Court that the question before us is a narrow one. Neither the future of scientific research, nor even the ability of respondent Chakrabarty to reap some monopoly profits from his pioneering work, is at stake. Patents on the processes by which he has produced and employed the new living organism are not contested. The only question we need decide is whether Congress, exercising its authority under Art. I, 8, of the Constitution, intended that he be able to secure a monopoly on the living organism itself, no matter how produced or how used.”

Anyway, Shughart must have noticed this habit of inadvertently admitting the true nature of the patent grant–a habit that makes fellow IP advocates grimace and exclaim, “Damn! He admitted it too!“–and imitated it here to perfection. “Those crazy patent guys,” Shughart seems to be saying, with a sly smile and a twinkle in his eye, “can’t get their story straight.”

Here’s another patentism Professor Shughart tackles. Sometimes IP advocates trot out the most ridiculous arguments when they have no other response available, such as this bizarre argument by patent attorney Gene Quinn (noted in this post). In an online discussion, IP opponent David Koepsell had mentioned “that in the 19th and early 20th centuries, two of the most innovative countries on earth (The Netherlands and Switzerland) had no patent systems at all.” In response, Quinn says:

Thank goodness the Swiss did have a Patent Office. That is where Albert Einstein worked and during his time as a patent examiner came up with his theory of relativity.

You got that? We need a state-granted monopoly system … so that Albert Einstein could have had a job in Switzerland. I mean, what does one even say in response to this, which is not even a pretense at serious argument? Our observant author must have noticed this and other such arguments, which he is clearly mocking here:

It is true that other means exist for creative people to profit from their effort. In the case of copyright, authors can charge fees for reading their works to paying audiences. Charles Dickens did this, but his heavy schedule of public performances in the United States, where his works were not protected by copyright, arguably contributed to his untimely death.

See? We better have copyright–you don’t want another potential Charles Dickens to drop dead early, do you?

Professor Shughart continues:

The hard questions are: What kinds of ideas should be eligible for patent and copyright protection, and how long should that protection last?”

What’s needed is a middle ground. Even if we can all agree that intellectual property is an important social commodity, one size doesn’t fit all in the modern Digital Age.

While a 20-year monopoly may be appropriate for new drugs, it may not be appropriate for software, a new electronic game or, as Justice Sonia Sotomayor seemed to suggest during questioning in the Bilski case, a new “speed-dating service.”

The IP advocate is here portrayed as unable to even definitively object to a 20-year patent monopoly on a method for speed-dating–”it may not be appropriate”! And the part about “these are hard questions” … who can answer them, oh who?– and “we need a middle ground”–even though we have no evidence to know where the “optimum” is. But wait for it–Congress might know! –

Rather than abolishing patent and copyright protection for some categories of intellectual property, Congress and the courts should consider varying the length for which exclusive monopoly privileges are granted, depending on the expected commercial vitality of the creative work. [emphasis added]

Shughart is so right here: the proponents of intellectual monopoly, like all interventionists, do indeed have an utterly misplaced, naive faith in the state’s benevolence and competence. Why, let’s have Congress should figure this out! Oh, I’m in stitches. And the courts–yeahhhhh, they’ll do a great job–the same courts witheringly described here by J.H. Huebert:

In general, judges and those who appoint them have no reason to want to limit government. … Have not judges been responsible for some of the most outrageous expansions of government power? And, after all, are judges not a product of the same political system that gives us legislators and presidents? What president would appoint judges who would tell him he cannot do anything he wants? What Senators would confirm a judicial candidate who tells them that everything they have ever done in office is unconstitutional? The whole enterprise of libertarian constitutional theory ignores all we have learned from public choice economics about the incentives of government actors.

I will close by noting my favorite line of this sparklingly humorous essay: to determine the right length of patent and copyright monopolies for various types of inventions and artistic works, Congress should be not only trusted to want to do this, but should use “the expected commercial vitality of the creative work” as the test! Oh, man. I’m crying.

Archived comments:

{ 30 comments… read them below or add one }

Lars January 29, 2010 at 6:31 am

Not to give credit, when credit is due, is a Bad Thing. To take credit of a discovery, from the man who has traveled over montains, stormy of waters, has overcome financial troubles, carried on despite mistrust from other people, to reach this discovery, is a Bad Thing. I think so.

Maybe this is off topic? Or?

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newson January 29, 2010 at 6:40 am

of course, the utilitarian question of cost-benefit is moot if one accepts the impossibility of interpersonal utility comparisons.

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Joshua January 29, 2010 at 8:20 am

Stephan: Your comment: “Unfortunately, he supports these laws anyway. Shughart also candidly and explicitly admits the monopoly character of of patent and copyright:” is formatted like it is quoted from Shughart’s article.

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Russ January 29, 2010 at 8:32 am

newson wrote:

“of course, the utilitarian question of cost-benefit is moot if one accepts the impossibility of interpersonal utility comparisons.”

According to your logic, one also cannot say that not having normal property rights is worse than having normal property rights. Does anyone here actually believe that? Impossibility of interpersonal utility comparisons or no, consequences do matter, and have to be taken into account by anybody who wants to be taken seriously.

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bob January 29, 2010 at 10:49 am

“Although there may be a passionate few who don’t require payment for contributing to the common pool of knowledge”

Complete straw man. The absence of patent law doesn’t mean that the creation of public knowledge cannot be done on a for-profit basis. Most open source software specifically proves this.

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Silas Barta January 29, 2010 at 11:45 am

Actually, sarcasm and quick wit are my job. Watch me show how Stephan_Kinsella’s latest argument fails. Here is his post, making the same arguments, but against all libertarian property rights.

***

While it is true that property law is constitutional, this does not make these laws just. What the artificial law-writing coup-leaders wrote a document designed to help the state seize more power is simply not relevant to the normative question of whether there should be property.

Pro-poperty law arguments rest on the assumption that the property system generates overall wealth — that its benefits are greater than its costs — without ever making this case. Instead, they point to ways that the property system benefits some people, and never bother to even try to tally up the costs to make sure it’s a net positive. In other words, they don’t even take their own justifications seriously. Kinsella makes the same mistake:

Producing useful products typically requires large investments of time and treasure. Most business ventures end in failure.

Granting a monopoly to those who are able to purchase property is necessary, therefore, to provide producers with an opportunity to earn a return on the investment that led to the products — and to encourage additional such investments. Such protection is typically important to the mass production and heavy machinery industries, where, in its absence, new cars and factories could simply be seized by competitors, and the incentive to do large-scale investment would disappear, stifling the structure of production.

The word “therefore” is unwarranted; this is a non sequitur. Later on in the piece, he writes:

Incentives matter. Althought there may be a passionate few who don’t require payment for giving stuff away for free, economic production will be much more rapid if an explicit economic payoff is available.

Much more rapid–? How much more? Who knows? The property advocates don’t. So how do they know it justifies the cost?

I found this to be a refreshing admission of the stifling effect mercantilist fee-simple physical monopoly has on the spread of wealth:

Th paraphrase the late economist Karl Marx, property rights slow down the ability to seize wealth for a reason: to ensure that there will be more wealth to diffuse…

Unfortunately, he supports these laws anyway. Kinsella also candidly and explicitly admits the monopoly character of property law:

Granting exclusive rights to those who homstead a resource is ncessary…

Some property advocates get very irked when property is called a monopoly. For example, property shill Michael Dell, in a piece intitled “The Myth that Property is a Monopoly,” writes, “People who suggest property is a monopoly are not being intellectually honest and perpetuating a myth to advance a political agenda.” But it is common for property advocates to acknowledge this. For example, Henry George writes “Land is subject to lawful monopoly created by the state in order to induce its productive use… The legal monopoly granted by the property title is the only mechanism that allows the producer to cover the fixed costs in producing…”

Consider this argument our author makes:

It is true that other means exist for producers to profit from their effort. In the case of dancing, authors can dance on the street for donations. Billy the Homeless guy did this, but somehow it didn’t work out.

Can Kinsella really be arguing that we need property, for otherwise another potential great dancer might drop dead early? (This reminded me of a bizarre argument made by property shill Warrent Buffet. In a discussion, property liberator Ralph Nader had mentioned “that in the 19th and early 20th centuries, two of the most productive countries on earth, Sweden and Argentina, had extensive welfare states, depriving people of most of the substance of property rights.” In response, Buffet says, “Thank goodness Sweden did have a welfare state. That is how Alfred Nobel got off his feet after bad times, eventually establishing the Nobel Prize.” So … we need a property-wrecking welfare state-monopoly system … so that Alfred Nobel could have a gotten a start in business!” What does one even say in response to such an “argument”?)

Mr. Kinsella continues:

The hard questions are: What kinds of goods should be elegible for property rights, and how far should such rights extend?

What’s needd is a middle ground. Even if we can all agree that property is an important social commodity, one size doesn’t fit all in the modern information age.

While rights up to 50,000 feet in the air may be appropriate for an airport, it may not be appropriate for a farm, a race course, or a residential area.

A 50,000 feet zone for a residential area may not be appropriate?! How would anyone know, really?

As for there being “hard questions” — who can answer them? And if “we need a middle ground” — even though we have no evidence to know where the “optimum” is — how can we achieve this? Who can do it? Kinsella’s answer: MORE property rights, and the courts:

Rather than abolishing property law for some categories of goods, courts should vary the amount for which property monopolies extend, depending on the expected commercial vitality of the property.[emphasis added]

The courts are neither benevolent nor compenent (well, they are good at two things: telling people what to do, and justifying themselves through propaganda). There is no reason to believe the courts want, or are equipped, to find the “right” answers to such questions. There is no reason to trust courts to determine the optimum extend of property right monopolies for various types of property, much less by using “the expected commercial vitality of the creative work” as a test.

***

Stephan_Kinsella’s screeds: not as hard, or insightful, as you might think.

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Silas Barta January 29, 2010 at 11:49 am

@Russ:

According to your logic, one also cannot say that not having normal property rights is worse than having normal property rights. Does anyone here actually believe that? Impossibility of interpersonal utility comparisons or no, consequences do matter, and have to be taken into account by anybody who wants to be taken seriously.

THANK YOU! You hit the nail on the head here. This post could have been written by me (except maybe without the elegant brevity).

Posts like these exemplify why I can respect Russ despite his persistent opposition to IP, and why I believe he helps advance the debate rather than muddle it.

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Peter Surda January 29, 2010 at 12:08 pm

Dear Russ,

> According to your logic, one also cannot say that
> not having normal property rights is worse than
> having normal property rights.
Strictly speaking, this is correct. However, in my opinion, that is not the issue.

The feature of exclusivity is inherent in rival goods, regardless of the legal system. The “creation” of property rights by the legal system does not change that, they merely distribute who gets the cut. However, exclusivity of non-rival goods is not an inherent feature of them. IP is therefore truly an artificial construct.

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Russ January 29, 2010 at 2:59 pm

Peter,

My previous post was simply a response to newson’s comment on interpersonal utility. His comment seemed to be a way of wriggling out of any discussion of consequences, disguised in Austrian jargon to make it more palatable, so I thought it had to be addressed.

I agree that IP is artificial, but so is central heating, and I’m not give that up if I can help it. Artificial isn’t always bad.

Silas,

Thanks for the kind words. I’m not sure how elegant the post was, though. I couldn’t figure out a way to say it without the double negative.

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Russ January 29, 2010 at 3:22 pm

My idea on utility and IP is simple. IP allows people to rest on their laurels. Take patents, for example. Let’s say somebody come up with a way of doing something that is much more efficient than any other way. Barring the invention of a yet better way, the inventor gets a lock on the market for 17 years (that is still the length of patent protection, yes?). So he could do nothing innovative for 17 years before he has to worry about competition. If there were no IP, he would get a slight edge in the market before his idea was copied by competitors. He would have to continue innovating to retain the edge.

The main objection to the previous paragraph is that, due to the costs of research and development, the new idea would not be developed at all without IP. It just wouldn’t be worth it. This is possible. But without IP, those ideas that are produced will spread faster and benefit everybody sooner, because we’ll use our resources more intelligently. Could this systemic difference make the economy so much wealthier that the costs of research and development would be much lower?

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Mark Hubbard January 29, 2010 at 3:37 pm

My idea on utility and IP is simple. IP allows people to rest on their laurels. Take patents, for example.

Well, no, take my car for example. That allows me to ‘rest on my laurels’, allowing me to drive to work rather than walk off my beer pot.

That’s the dumbest (and yet another utilitarian) argument against IP I’ve seen yet Russ.

You have property rights, or you don’t. The first makes individual freedom possible, the second destroys it.

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mpolzkill January 29, 2010 at 3:46 pm

Wow, is it just me or is Hubbard the most obtuse guy that’s ever stuck around here for more than two comments?

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Russ January 29, 2010 at 3:57 pm

It’s not just you. Wow, finally, something the two of us can agree on. *grin*

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Russ January 29, 2010 at 4:02 pm

Mark Hubbard wrote:

“Well, no, take my car for example. That allows me to ‘rest on my laurels’, allowing me to drive to work rather than walk off my beer pot.”

I’m sorry, I know this isn’t civil, but I couldn’t pass it up.

I thought a car allows you to rest on your arse. I guess this means that you can’t tell your arse from your laurels.

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Bill in StL January 29, 2010 at 10:21 pm

I’m still on the fence. Against IP is that intangible property is non-scarce, so exclusion isn’t required for the owner’s consumption. For IP is the obvious point that it is the product of a person’s labor.

As easily as one can argue that IP stifles innovation by allowing creators to take it easy, one can say the lack of it would dissuade them from ever entering the field.

Although reducing the owner’s utility is the common reason I’ve heard for the right to exclude material property, no one suggests that trespass or borrowing of material property would be acceptable in the rare situations where such temporary trespass does not reduce the owner’s utility.

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newson January 30, 2010 at 1:48 am

to russ:
given that state coercion imposes costs on unwilling payers, a utilitarian has to come up to the impossible task of proving that the hurt to some brought about by these imposts is outweighed by the relief brought to others, net transaction costs of enforcement.

of course, this argument applies equally well to physical property, leading to the question, why should i pay for protection to your person and belongings, when that money could go towards my own.

…and so we return to the familiar anarchist-minarchist dance.

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Deefburger January 30, 2010 at 9:19 am

“I agree that IP is artificial, but so is central heating, and I’m not give that up if I can help it. Artificial isn’t always bad.”

Except when it is an attempt to overcome by law the nature of the thing it purports to change.

Most of you I expect understand the mechanism of observation. As an observer you have means to be aware of the observed. In physical reality this means is usually associated with light and electro-magnetism. When you and I observe the same object, we see it via the awareness of light.

But when we talk of ideas, thoughts, and patterns, we are observing non-physical reality, what the legalese call intangibles. I can not help but notice that in some cases, the observed object is considered exclusive domain for the purpose of claiming property, but then the same object is claimed as “stollen” when observed by others and re-expressed.

Metaphysically, there is a problem also with the idea of exclusive creation in IP. If the observed non-physical object can not be manipulated, controlled, or altered in any way through direct contact with the object, then the object can only be observed. If the object can only be observed, then there must exist within our minds a means of being aware of that object, and a means for that object to be seen within our minds. If we can see it, then we can observe it. But would not the observed have to exist as an object in the first place prior to it’s being seen?

Creative thought, then is discovery, not creation.
The implications of observational metaphysics are that the non-physical reality is populated with objects of possibility, objects that exist a priori to their observation. Creative thought, then, must be similar to the finding a path up a mountain. The path exists prior to it’s discovery.

To prove this conjecture false, you would have to prove that the thought-space of your mind is different from the thought-space of my mind. If that is so, then, your ideas are un-knowable to me at any time, because they are contained in an exclusive space, owned by you, and controlled by you, and observable only to you.

If this is true, then you have no claim on any thought I have. That thought-space is just as exclusive for me as yours is for you. What claim then can be made on the objects within my mind that just happens to appear to be the same as the objects within your mind?

You have a catch-22. A paradox of logic in any attempt to prove ownership. You can only prove the need for protection if you admit the object you are protecting is metaphysically shared in the first place. And if you choose exclusive observation and exclusive thought-space, then you have no need for protection and no claim on any other individual’s thought-space.

Any takers?

REPLY

Josh S January 30, 2010 at 8:15 pm

To turn the tables a bit, open-source development is not a good example because it has, so far, largely failed to usurp competition whose products require large aggregations of capital.

While I hear a lot of negative statements (there shouldn’t be a government, there shouldn’t be IP, there shouldn’t be laws, etc), I’d like to see a positive statement on how something might occur. So let me ask a very direct question:

Some modern video games require tens of millions of dollars to produce. Turning a profit on such a venture requires selling millions of units at between $50 and $100 apiece, depending on the territory. Now, it seems to me that if we had no IP law, such entertainment products would not be made at all. And in fact, there are countries that functionally have no IP law (like Brazil and China), and the producers simply do not operate there. So, for the anti-IP people, here is the question:

Will the product exist at all? Making copies of the same quality as the original is technologically trivial. It seems to me that the possibility of recouping a $10m investment vanishes if the creator does not have exclusives rights over production and distribution.

If your answer is “yes,” how can someone turn a profit in this environment? Please be thorough–do you think you could spend even $1m developing a game and profit by selling it in Brazil?

If your answer is “no,” is the conclusion then that said product is a waste of resources; e.g. any product that is not worth producing in a world where there is no copyright or patent is simply wasteful.

REPLY

Bill in StL January 31, 2010 at 9:32 am

Deefburger:

“If the observed non-physical object can not be manipulated, controlled, or altered in any way through direct contact with the object…”

Where does this assertion come from? I don’t see how you get to it. If you’re talking about intangible property, let’s say a song, it can be manipulated. Just have two different singers sing it.

“Creative thought, then is discovery, not creation.”

On some level, yes, an artist has to discover the combination of sensory input that will produce the desired emotional response in the observer, but is that work not still his unique creation?

REPLY

Stephan Kinsella January 31, 2010 at 9:41 am

Silas, your failed analogy helps to show what is wrong with IP. Thanks.

“While it is true that property law is constitutional, this does not make these laws just. What the artificial law-writing coup-leaders wrote a document designed to help the state seize more power is simply not relevant to the normative question of whether there should be property.”

Actually, to make the proper analogy, you’d have to say that just because the Constitution authorizes property in material things does not mean it’s justifified. But the constitution does not do this. It only empowers a federal government with enumerated powers. It presupposes the states already exist, and that private property rights already exist. Analogy FAIL.

“Pro-property law arguments rest on the assumption that the property system generates overall wealth”

This is not true. Another fail. We are not all utilitarians, you know.

REPLY

Deefburger January 31, 2010 at 10:31 am

@Josh S

Your example is a good one. Video games require special hardware to operate, which affects the situation. However, creation of product is not trivial, even though copying of the creation is. The problem for the entrepreneur is the same in either case. Law does not prevent the action that the law prohibits. So whether law exists or not, the successful monetization of a product depends upon the plans to distribute and sell.

For video games, it would make sense for the company to give away downloadable copies of incomplete story lines, and then sell the remainder to those who wish to play the rest. Most people will buy from a reputable source, because they are wary of code that might harm their systems. If you download a freebie from EA, you will likely go back to the originator to purchase and download the full version. Failure to do this is an opening for fraudulent or even destructive code entering your system.

Lack of legal forces does not effect the market in a negative way. Reputable distribution sites will become the main sources of content, as is happening now in the news arena.

The questions of how to monetize the created product and distribute it are entrepreneurial questions. The philosophical question is whether or not the pattern can be owned and shared at the same time, and whether or not the use of positive rights is justified. A conflict of principals arises when the physical property nature and the laws surrounding that nature are applied to non-physical objects, which have a very different nature from physical objects.

Whether or not an entrepreneur or “creator” can monetize the non-physical is secondary to the philosophical question of whether or not non-physical objects can be owned in the first place. The true nature of non-physical objects has to be clearly understood before any law regarding their existence can be considered.

What most people are having trouble with is the very different nature of non-physical objects. They are not scarce, they are not confined, and they are not inaccessible to any one, and they can not be made to be inaccessible without threat of force, and even then, they can not be forced out of other minds except by death, and even that is in question if one considers there to be some “life” after death.

But as you can see by the numerous posts, most people are not considering the true nature of the thing they are trying to sell. Entrepreneurship is about considering this nature thoroughly and formulating a plan to market. Failure of the entrepreneur to properly consider this nature will result in failure to market. But this is not the issue with IP. The IP issue arises because of an attempt to force nature upon the non-physical that does not exist and to enforce the decreed scarcity upon the general populace for the purpose of monetization via secular law and physical enforcement.

If this is to be allowed, and even justified, then there is nothing to stop an enterprising corporation, group or author from using the law to force monetization of anything they deem to be physical.

Stephen Hawking remarked in a program I saw yesterday that he should have copy written the theory of everything and then charged everyone for the right to exist. This is exactly the problem of trying to make non-physical objects physical by decree. You may have the best intents, but the real world results of your decree are problems, not capabilities.

Non-physical material reality is larger, more expansive, less restricted and longer lasting than the physical reality sub-set it is associated with. Trying to make the non-physical objects in this reality physical is like trying to play checkers with stars. It doesn’t work. You can’t do it, even if you say you can by law.

And just because the non-physical object is copied into a physical form, does not make the non-physical object suddenly exclusively physical and exclusively yours. You can’t put the genie into the bottle in the first place. You can only say the genie is in there, and even then it is only a physical expression of the genie. To prove it, you have to open the bottle and reveal the genie. Now you can’t put him back in, because he wasn’t in there in the first place! Only a physical representation of him, a copy. The original genie is still an existent object in the non-physical reality you saw him in in the first place. He didn’t go anywhere just because you said so.

Non-physical material objects are the basis of our knowledge. Any one can visit this knowledge at any time if they so wish. Transmission of information is the transmission of “coordinates” that lead to the non-physical object. The unique expression of these “coordinates” is valued by others if the information is good and leads directly to a personal experience of the non-physical object.

What then is important to us is not just the coordinates, or the experience, but the originator of the expression, and the skill with which the originator constructs the expression. This is the value of authorship. If we want to have the experience of that story, that painting, that sculpture, that invention, then we seek out the originator of those things and value that individual for their ability to express.

THAT is what the libertarian entrepreneur will monetize, at least if he is rationally examining the true natures of the things and people he is selling and selling to.

REPLY

Beefcake the Mighty January 31, 2010 at 10:45 am

Too many pro-IP’ers, when they aren’t making dubious utilitarian arguments, resort to analogies which are
superficially plausible but substantially vacuous.  Take for instance the claim that, just as a gun owner
is restricted from how he uses his gun by, say, a homeowner into whose house the gun owner could shoot
his bullets, so too are owners of factors of production restricted by how they use those factors by someone
who first thought of a way to arrange those factors.

First, let’s note that the question of ownership is completely separate from the question of what range
of justifiable uses is available to some property owner.  The gun owner absolutely and unconditionally
owns his gun, regardless of how he may justifiably use it (he still owns the gun even if his shooting of
bullets into someone’s house qualifies as aggression).  Second, the question isn’t IF such restrictions Â
on property owners exist (clearly they do), but rather WHY such restrictions exist.Â

In the gun owner-home owner example, the question comes down to first use.  The fact of first use is
what makes the gun holder and owner, and what makes the house occupier an owner, and why the house
owner is justified in restorting to defensive force against a shooter and seeking compensation (in some form)
from him.Â

In the other example, first use is completely absent from the claim of the non-owner of the factors to
restrict how the owner of the factors uses those factors (based on the former having first thought up some
way of using these factors).  Indeed, the the former is in essence asserting propery rights over the factors, Â
something the home owner in the previous example does not do in relation to the gun.  Now, defenders of
IP are free to put forth a theory of property rights NOT based on first use, and of course address the
criticisms of such alternative theories that are readily available in the libertarian literature (by Rothbard,
Hoppe, Kinsella, and many, many others).  As far as I know, they have never done such a thing.  Far
easier to put forth bad analogies, I guess.

Also, since this is the time of year where most people break their New Year’s resolutions, I might as
well say:  Silas, go back to molesting cats or whatever the fuck you usually do.  Asswipe.

REPLY

Deefburger January 31, 2010 at 11:20 am

@Bill in StL

“Where does this assertion come from? I don’t see how you get to it. If you’re talking about intangible property, let’s say a song, it can be manipulated. Just have two different singers sing it.”

The singing of the song is the physical expression of the non-physical object, the song. This ability to express, both in the written form of the song, as well as the performance is valuable, as is illustrated by the market for concerts, as well as the market for material to perform.

But these expressions become memories of the non-physical object they are expressions of, when they are observed and enjoyed by the audience. What can not be done is to erase this memory from the observers that follow, or the non-physical object that they were led to by the performance of the song.

As far as the assertion of non manipulation and control is concerned, any thing you can “see” in your mind is seen via some form of awareness. In order for you to be aware of any thing, the thing must exist prior to your observation of it, no matter how unique your point of view. You can only observe non-physical reality.

“On some level, yes, an artist has to discover the combination of sensory input that will produce the desired emotional response in the observer, but is that work not still his unique creation?”

Yes it is. The physical manifestation of expression of view of the non-physical is both an ability and a skill that is, at the time of observation, a valuable ability and skill. I do not say that the observation and the expression of the observation is invaluable. What I am saying is that it is necessary to understand what part of the experience is physical, and therefore can be real property, and what is non-physical. Even if the experience is new to those who experience the expression, the non-physical object is still existent as a non-physical object, in spite of the creation of a physical representation of it.

As concious human beings we exist in two overlapping realities. One is physical and obeys physical natural laws. The other is non-physical and obeys non-physical natural laws.

Non-physical reality is a realm of discovery. Physical reality is a realm of expression and physical limitations. In both cases, objects are being, dasein. What their nature is depends upon which reality they exist in. Some, like yourself, exist in both simultaneously. The job of the philosopher is to reveal which ones are which.

Criminalizing natural behaviour is a recipe for conflict. Inventing legal damages for acts that have no possibility of actual damage is a false justification for use of force. So we must be clear on what we are talking about, and what the nature is of the thing we wish to monetize, as well as the nature of the people we wish to sell to.

REPLY

Deefburger January 31, 2010 at 12:42 pm

@Bill in Stl

“Although reducing the owner’s utility is the common reason I’ve heard for the right to exclude material property, no one suggests that trespass or borrowing of material property would be acceptable in the rare situations where such temporary trespass does not reduce the owner’s utility.”

Borrowing and trespass of physical material objects do reduce the utility for the owner. It is this precise circumstance that Bastiat uses in his defence of interest. There are two different valuations and two different costs involved in the lease of either a tool or money. One is the loss of utility for a time, the other is the actual utility of the thing itself.

IP has only one utility, and that is as a model, a memory, a knowledge. Beyond that, there is no loss of utility when it is shared. There is no justification for interest or lease. It is not physical. It is not scarce.

REPLY

Russ February 1, 2010 at 1:23 am

Deefburger wrote:

“Russ wrote: “I agree that IP is artificial, but so is central heating, and I’m not give that up if I can help it. Artificial isn’t always bad.”

Except when it is an attempt to overcome by law the nature of the thing it purports to change.”

If we have radio rights, then that is an attempt to make radio transmissions into something that they naturally aren’t. We want radio transmissions to be uninterfereable, so they can be used as a means of creating a communications channel. But by the nature of radio waves, that can’t be done naturally. So we institute a law that says that radio spectrum is property, and that (plus enforcement of said law, when necessary) solves the problem.

The moral of the story is, artificial isn’t always bad. Granted, trying to get around the nature of something could have unforeseen problems, so we have to be careful when we do this. But I don’t think it’s a stopper, in and of itself.

Beefcake the Mighty wrote:

“In the gun owner-home owner example, the question comes down to first use. The fact of first use is what makes the gun holder an owner, and that makes the house occupier an owner, and why the house owner is justified in restorting to defensive force against a shooter and seeking compensation (in some form) from him. ”

The “first use” rule may very well be what makes the owner an owner. But you’re breaking your own rule, and not looking at the WHY of all this. The “first use” rule is just procedural rule we have come up with for deciding who gets property. It’s not *why* we came up with the concept of property in the first place. Why we came up with the concept of property in the first place is because it’s a useful way of resolving disputes. In other words, we came up with it because it’s useful. It always eventually comes down to utility, even though you don’t want to admit that.

REPLY

Beefcake the Mighty February 1, 2010 at 6:55 am

Russ,

I didn’t discuss the “why” part because it has already been more than adequately laid out elsewhere (eg by Kinsella).

It is a great source of frustration and annoyance that so many on the pro-IP side are ignorant of the basic issues of libertarian property rights theory.

REPLY

Deefburger February 1, 2010 at 9:11 am

@Russ

The radio spectrum argument is put forth a lot as an example of IP but the radio spectrum is a real and natural phenomenon in physical reality. The spectrum itself is limited to variation in signal strength, frequency and wavelength, the physical properties of light.

As long as the rules correctly account for the physics of light, then allocation can both be observed and utilized fairly by all.

But to create a limitation that does not exist, to impose a limitation where there is no need for one, is where the problem arises in creation of limits on non-physical objects. They do not have the limitations that the physical radio spectrum has. The physics of radio defines the limits, the scarcity of spectrum, the distance from the transmitter to the receiver, relative separation of transmission sources, etc. etc. Non-physical reality has none of these physical limitations.

The better analogy is in the claiming of stars. They are observable to all, but reachable and controllable by none. This is not the case with the radio spectrum. I can control radio “space” by transmitting on one of the scarce frequencies. By doing so, I trespass upon any overlapping signal in my area (physical space, scarce frequency). This is physics. This is physical material reality.

By contrast, I cannot trespass in non-physical reality. I have no control over any part of it. I can only observe. I can direct my intent to see some part of it, but I cannot change any part of it I see. I can look somewhere else to see something similar, but I cannot change that object either. I can observe the objects there, but I cannot see anyone else observing. I can see but I cannot be seen. I have no non-physical transmitter to affect change there as far as I can tell, and therefore no means of preventing any one else from observing there as well. No physics of limitation, means no means of limiting.

Applying the rational of physical limitation on an object in a space that has no physical limits, is like trying to rope a cloud. You can pass all the laws and amendments you want concerning the roping of clouds, and it will only create problems for people who use rope. It will have no effect on the clouds whatsoever.

REPLY

Bill in StL February 1, 2010 at 4:36 pm

I agree that in most cases, borrowing and trespass do reduce the owner’s utility. I’m saying that, in the exceptional situations where they do not, they’re still wrong. From that, I don’t think the owner’s right to exclude stems from his loss of utility, but is more fundamental.

The question I’m still working on is, what is that more fundamental right, and should it apply to IP?

REPLY

Deefburger February 1, 2010 at 9:59 pm

“I agree that in most cases, borrowing and trespass do reduce the owner’s utility. I’m saying that, in the exceptional situations where they do not, they’re still wrong. From that, I don’t think the owner’s right to exclude stems from his loss of utility, but is more fundamental.

The question I’m still working on is, what is that more fundamental right, and should it apply to IP?”

What is more fundamental than the utility of knowledge? It’s presence? It has no mass. It’s appearance? It’s in your mind. What you can do with it in physical reality is use it to manipulate physical reality to meet your needs in physical reality. It’s non-physical. It’s utility is absolutely fundamental to it’s being, it’s Dasein. So what are you looking for? Substance? Apply it to the physical reality. Presence? Write it down or draw it. Utility? MAKE SOMETHING USEFUL!

That is the utility value of IP. But you can’t claim ownership of knowledge. Nobody owns knowledge that is known by more than one individual. The Knowledge, the Secret is the Genie. Tell someone and the bottle pops open. The Genie is not limited by physical reality. The Genie is only limited by the bottle opener. Once loose, there is no putting him back. Only forgetting will erase the event from reality. Some will be forgotten, and no one will benefit. Others will be remembered, and all will benefit from the memory.

The only other “fundamental” you can name is the value it has if you wish to believe in a legal fiction. But you can wish the Genie is yours all you want, you can believe that the object, in spite of it’s nature, is exclusively yours. By law and proclamation the Genie is yours to sell to the highest bidder. If you believe the legal fiction, then you create a prohibition on thought and the utility of that thought. You create criminals out of normal people and everyone around you is trying to steal what can’t be lost, except by forgetting.

And you see the results of this belief. And still you pine for the great “value” created by this fiction. That elusive fundamental that supports the belief. Perhaps it is your god given right to own a Genie. Perhaps it is. Say it enough times and it might come true.

The magic is not in the things we make, but in the metaphysics of the Genie. The Knowledge is Non-Physical. The Utility is Physical. The Knowledge is infinitely reproducible and limited only by the number of minds that can hold it. The Utility of it is limited only by the means available to apply the Knowledge in physical reality.

So, as a libertarian, do you create a legal fiction and monetize the fictional value, or do you accept reality on it’s face, and monetize the thinker? Last time I checked, I got paid for my time, product and skill, and the application of my knowledge in physical reality. Most of the time, the knowledge was key. But it was the application of it that unlocked the real value, not the key itself. The key was not physical. The utility of it was.

REPLY

Etaoin Shrdlu August 1, 2010 at 3:28 am

We are not all utilitarians, you know.

So, you’d rather go with what doesn’t work?

Societies that protect IP rights have tended to produce major useful innovations and to have successful economies; examples include Britain and the United States, and Argentina up until Peron got into power. Societies that don’t protect IP rights, or that stop protecting IP rights, have tended towards economic stagnation; examples include Thailand, the good old USSR, and post-Peron Argentina.

Of course, part of that may be because societies that don’t protect IP rights also don’t protect any other property rights. One could posit that a lack of protection for IP rights is a sort of canary-in-the-coalmine indicator for whether a society is dysfunctional. In fact, I so posit.

***

William Shughart, “Ideas Need Protection,” The Baltimore Sun (Dec. 21, 2009)

Ideas Need Protection

Abolishing Intellectual-property Patents Would Hurt Innovation

A Middle Ground Is Needed

December 21, 2009|By William F. Shughart II

OXFORD, Miss -O. – Would you spend countless hours developing a novel business method if you knew you couldn’t protect it with a patent? Most of us wouldn’t.

Yet before the U.S. Supreme Court is a case that could have severe consequences for the incentives that fuel such job-creating innovations.

While a ruling in Bilski and Warsaw v. Kappos isn’t expected until next spring, let’s hope the court doesn’t fall prey to the arguments of Harvard Law School professor Lawrence Lessig and other supporters of the “open source” movement in computer software.

They contend that intellectual property rights – which extend 20 years beyond the date a patent is issued – erect barriers to technological progress, discouraging collaboration and slowing economic growth.

In the Wikipedia age, it may seem that lots of people are happy to work free of charge for the common good. But the reality is that new ideas are scarce, and their discoverers, as our Founding Fathers recognized, merit protection from those who seek to gain from their intellect, investments and hard work without just compensation.

Article I, Section 8, of the Constitution explicitly delegates to Congress authority “to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.”

Developing and successfully commercializing new products and technologies typically requires large investments of time and treasure. Most research and development (R&D;) investments end in failure.

Granting a temporary monopoly to the rare breakthrough is necessary, therefore, to provide its inventor with an opportunity to earn a return on the investment that led to the new idea – and to encourage additional such investments. Such protection is especially important in the pharmaceutical industry, where, in its absence, new drugs could be duplicated by competitors, and the incentive to invest would disappear, stifling the discovery process.

To paraphrase the late economist Joan Robinson, patents and copyrights slow down the diffusion of new ideas for a reason: to ensure there will be more new ideas to diffuse.

It is true that other means exist for creative people to profit from their effort. In the case of copyright, authors can charge fees for reading their works to paying audiences. Charles Dickens did this, but his heavy schedule of public performances in the United States, where his works were not protected by copyright, arguably contributed to his untimely death.

Contributors to open-source software can gain personally from enhanced reputations in their tightknit communities. Inventors may also rely on secrecy (Coca-Cola’s unpatented formula has never been duplicated) or simply take advantage of competitive lead time – making a profit before copycats enter the market.

The U.S. Patent and Trademark Office, overwhelmed by the large volume of applications that it receives every day, tends to err on the side of granting new patents and copyrights, shifting resolution of predictable disputes to trial lawyers and the courts.

The hard questions are: What kinds of ideas should be eligible for patent and copyright protection, and how long should that protection last?

What’s needed is a middle ground. Even if we can all agree that intellectual property is an important social commodity, one size doesn’t fit all in the modern Digital Age. While a 20-year monopoly may be appropriate for new drugs, it may not be appropriate for software, a new electronic game or, as Justice Sonia Sotomayor seemed to suggest during questioning in the Bilski case, a new “speed-dating service.”

Rather than abolishing patent and copyright protection for some categories of intellectual property, Congress and the courts should consider varying the length for which exclusive monopoly privileges are granted, depending on the expected commercial vitality of the creative work.

It is certainly true that, as contemplated by the 1998 Sonny Bono Copyright Term Extension Act, the authors of books, Walt Disney characters and computer software will not likely be deterred from being creative if their children or grandchildren are denied royalty payments. Science and engineering is a different story.

Incentives matter. Although there may be a passionate few who don’t require payment for contributing to the common pool of knowledge, technological advancement will be much more rapid if an explicit economic payoff is available.

William F. Shughart II, a senior fellow with The Independent Institute in Oakland, Calif., is the F.A.P. Barnard Distinguished Professor of Economics at the University of Mississippi. This article was originally published in The Christian Science Monitor.

  1. Robinson’s comment that is being paraphrased is: “A patent is a device to prevent the diffusion of new methods before the original investor has recovered profit adequate to induce the requisite investment. The justification of the patent system is that by slowing down the diffusion of technical progress it ensures that there will be more progress to diffuse … Since it is rooted in a contradiction, there can be no such thing as an ideally beneficial patent system, and it is bound to produce negative results in particular instances, impeding progress unnecessarily, even if its general effect is favourable on balance.” Joan Robinson, “Technical Progress,” in The Accumulation of Capital (Basingstoke, UK: Palgrave Macmillan, 1956): p. 87. See also Nick Johnson, Quote of the week: Joan Robinson on the paradox of patents (Dec. 4, 2023). [↩]
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Copying Is Not Theft — remixed (song and video)

Copying Is Not Theft — remixed (song and video) archived comments below. (Hat tip Jules Jeffrey)

 

archived comments

 

{ 293 comments… read them below or add one }

Russ January 18, 2010 at 5:19 pm

austronaut wrote:

“if my house purchase was a contract (signed, witnessed) and noone else signed the purchase contract it would be against convention to see my locked front door as just an inconvienient barrier to entry?”

I don’t believe so, no. The convention here is called “property rights”, which I believe in. A contract is not necessary to protect one’s normal property rights.

“if a sticker on a software box says “EULA!! property of stinkysoft: by exchanging money for this information-laden disk you are given limited usage (meaning you cant use the disk in a way that would facillitate copying) but….but since there was no contract (signed and/or witnessed) it is just an improper convention on the part of stinkysoft…..”

That is my belief, yes. Others here disagree, of course. It all depends on which “conventions” (normal property rights, contractual rights, copyright, patent rights, IP rights) you consider proper rights.

Reply

Brian Macker January 18, 2010 at 5:34 pm

“I gave an explanation, several times, why causality is not a sufficient condition to claim ownership.”

I must have missed it. Nothing by itself is sufficient to claim ownership of something, so I don’t see your point.

My claim is based on a prior established ownership, and a causal connection of using my owned resource as a factor of production in another.

I own A and raw materials B. If I use A on B to produce C, then obviously I own C. The question arises, what if some other party uses my property A to produce E, with his own raw materials D. Now we have an issue of joint ownership that needs to be settled.

Obviously we both causally contributed to the creation of E. Also it is obvious that ownership in E isn’t going to always be judged to be 50/50. Sometimes one factor of production is responsible for far more of the value of an object. Thus ownership of the object should be heavily weighted to one owner or the other.

There will also be issues of whether the other actor commingled our resources accidentally, intentionally, or maliciously. I will skip such issues.

In such a dispute the judge (or the process of common law) will have to decide the best way to settle the dispute.

If someones child accidentally took someone elses diamonds to decorate their play dough sculpture it is obvious that the owner of the diamonds is going to have the majority ownership stake in the art work. The question then is how to recompense the parties. Most likely the diamonds will be picked out of the play dough and given back to the owner, and the play dough returned to the child owner.

Perhaps the child is the scion of Bill Gates and he loves it so much he is willing to pay ten times the going rate for the diamonds for the, in his eyes, masterpiece. In that case maybe the artwork isn’t destroyed, 9/10ths of the value attributed to the child and a cash settlement is made in recompense for the diamonds, the owner willing.

Normally would not be just to judge the child 50% ownership because frankly no play dough sculpture is likely to be worth as much as a pile of diamonds. In fact it would be judged next to worthless. If there is one dollars worth of play dough in with $10,000 you can see my point, the child’s labor being worth next to nothing.

That was an example of production where the goods are consumed in the process (and also it turns out are easily separable).

There are other means of production where one of the goods (or several) are more durable and act as a template while the other raw material(s) are consumed. I’m assuming the labor (another factor of production) is owned by the person who combines them.

Now even for the durable goods there is consumption going on. Molds do wear out, as do CDs and DVDs.

The value of the produced good is usually of greater value of the factors of production. Sometimes much greater.

As I pointed out in prior comments a DVD or CD is a very cheap factor of production with little value, as is the labor, and computer wear needed to churn out a copy of a piece of software. What contributes most to the value of the copy by far is the template used to create it. In the case of software the original.

So if I own a piece of software A, and you own a blank CD, D, then unauthorized use my A and your D, to produce a copy E, then we have a joint ownership in E. An ownership in this case where the vast majority of the value is causally due to my property. If my software is worth $99.90 a copy and blank CDs go for ten cents a pop. Then I own 99.9% of the copy.

So causality can be used here to determine ownership rights given prior ownership rights.

Furthermore, if the copying was done maliciously, that is, you intended to steal my 99.9% ownership by doing the copy in secret then absconding with it, then there is a question as to whether you should have any title at all in the CD. My costs in discovering and prosecuting this will surely exceed ten cents. So when brought before a judge he is very likely to entirely discount the software pirates production costs entirely.

Now things are even more clear than that. The judge in the case of the diamond/playdough sculpture would never treat it as a amorphous mass of which the diamond owner was 99.99% owner. I wouldn’t ask that it be placed in some machine to scrape just, .01 percent of it’s surface to hand back to the child (potentially damaging imbedded diamonds). He wouldn’t hand the kid some playdough and diamond dust.

No, he would understand and disambiguate the component contributions, and try to separate them to the best of his ability.

In the case of the software copy the value that is contributed by the original is in the pattern of ones and zeros imbedded in it’s surface. Whereas the value of the blank CD is just that, some plastic in the shape of a CD.

If the copying was accidentally done by me then what a Judge would do to make both parties whole would be to hand the copy over to me, and require me to buy you a new blank CD. If however the copying was due to your negligence, I would get the copy of the software, and you would get nothing.

It’s really the pattern aspect of the CD of which I am 100% owner because I am the 100% causal factor in. The process would not have generated that pattern without my CD.

Suppose that before I discover you that you’ve made the unauthorized copy, you make a copy of the copy, and repeat. Does that mean that by the zillionth copy your proportion of ownership should go up? Well no, the value of the copies is due to the pattern portion, which is all due to my property, all along the chain of copies.

Notice that there I have not discussed any agreements, copyright hasn’t even been invented.

So causality combined with ownership is important to establishing ownership in unauthorized copies. In causality I include factors of production, who acts, and their intentions.

Causality sure may not be sufficient but it is necessary to establishing ownership in the copy.

Ownership over one factor of production is insufficient to establish ownership in the produced good. Owning a blank CD, as a factor of production, is insufficient to establish full ownership over the produced good, the software copy.

Nor does the fact that I have a CD with some unique piece of software in any way restrict you from doing what you want with your blank CD, other than not using my property without my permission.

Suppose I wrote, Mackersoft Word. I make a single copy on a CD and never sell it. That in no way hinders your use of any blank CD you ever buy.

It’s only if you somehow misappropriate Mackersoft Word, that there would ever be a problem with one of your blank CDs being converted into a copy.

So now the only remaining question is, how does copyright work. Simple. I sell copies of the CD but retain my ownership rights in the physical pattern on the CD. The buyers who get the copies are not sole owners. They are only joint owners.

The joint ownership is not homogeneous. The buyer, for instance, has the normal property right of control over destruction. He can destroy the physical copy at any time, which also happens to destroy my interest at the same time. The buyer also has ownership over any use, other than as a factor of production in copying.

If an unauthorized copy is made of the copyrighted co-owned disk then, again the vast majority of the value of the copy is due to the value inherent in the ability to copy, which is wholly owned by the copyright owner by contract.

Thus the total value in any pirated copies due to causal factors will adhere to the copyright owner. The pirate, by using the unauthorized copy, or selling it will be stealing property that is not wholly his, and which is ownership claim is minuscule if not totally erased by his malfeasance.

The copyright owner owns all the calves generated form the cow (of which he is co-owner).

Now the question is, what if the cow is a bull, and the bull escapes an impregnates a cow across the street on some other farm. That is the case of the Russ’s freely visible wheel, and as you can see the bull owner does not have a as strong an ownership claim over the calf that is produced. The bull is analogous to the patent and patents don’t work so well.

Worse for patents. It’s pretty damn clear that the unique pattern of bits inherent to Microsoft Word can be used as proof in court of origination.

Patents, on the other hand, are an attempt to control patterns that are likely to be discovered independently. Mere existence of something that looks like a copy is not clear proof that a copy was made from an item covered by the patent.

Patents attempt to own a platonic idea. Like the idea of using a fishing net. One doesn’t have to use a prior fishing net as a factor of production in a new one. Nor is the idea of a fishing net unique enough that one could prove that it was copied from someone else. Perhaps they saw a spider web and got the idea from that.

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Brian Macker January 18, 2010 at 5:42 pm

“The correct argument against Brian is much simpler. A Macker copyright is in effect simply *asserting* “You cannot do such and such with this property, even after I transfer it to you. This condition is viral, and applies to anybody who receives this property, no contract required. Even if this property is abandoned and then homesteaded, these limitations still apply to the homesteader.” Well, that’s nice and all, but just asserting something doesn’t make it so, and creating something doesn’t give him that right.”

It’s no more a simple assertion than mineral rights are a simple assertion. I own the original copy. I go to sell it but not in whole. I am now a coowner with the buyer.

You can’t homestead something where you know the correct owner. If you found my wallet with my name on it you can’t homestead. Also you cannot abandon what you do not own. Since the buyer is merely a coowner of the copyrighted software, he may abandon his portion of ownership but that does not mean the other owner has abandoned his.

I may buy a piece of land encumbered by prior mineral rights ownership by Phil. I may well abandon my ownership rights in the land. That doesn’t mean that Phil has abandoned his coownership, he still owns the mineral rights.

Copyright ownership is no more “viral” or based on “mere assertion” than mineral right ownership.

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Russ January 18, 2010 at 5:50 pm

Brian Macker wrote:

“Patents attempt to own a platonic idea.”

Believe it or not, I agree with this completely. The problem, of course, is that I can’t think of anything that’s more of a Platonic idea than an integer (a simple counting number). And yet, all “digital content” is just that; an integer . Any piece of software, digital multimedia file, ebook, etc., is just an integer (or a series of integers, if it’s more than one file). Or if you ignore the file system formatting, the entire content of a CD, DVD, or hard drive could be easily construed as just one single integer. Granted, these integers are very, very, very large. Granted, it would be very difficult to “stumble” upon these numbers by chance. But still, they are just integers.

This would seem to me to mean that a copyright on digital media is an attempt to own a platonic idea.

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Russ January 18, 2010 at 5:56 pm

Brian Macker wrote:

“I may buy a piece of land encumbered by prior mineral rights ownership by Phil. I may well abandon my ownership rights in the land. That doesn’t mean that Phil has abandoned his coownership, he still owns the mineral rights.”

I have never bought property involving mineral rights, so I’m not sure, but don’t the contracts involved in the buying of such land specify that you are not buying the mineral rights inherent in the land?

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Alexander S. Peak January 18, 2010 at 7:12 pm

As someone who used to believe in copyrights, and who in fact believed that a copyright over a given idea could last infinitely if (A) the “owner” lives forever or (B) the “owners,” without fail, transfer “ownership” to future generations through gift or through writing a will, I can understand why many of you might be afraid to come to reject the pro-IP position.

Here’s what did it for me, ultimately.

We agree with Rothbard that you cannot own another person, or the will of another person, or the mind of another person, or anything inside the mind of another person, right?

It is for this reason that Rothbard, correctly, rejected the validity of anti-libel and anti-slander laws. A person’s “reputation” is something that only exists within the minds of others, and since nobody has a right to control the minds of others, therefore nobody has a “right” to her or his reputation.

But once a person reads something, does not the content enter the person’s mind? I have read Ayn Rand’s Anthem, and it has therefore entered my mind, as is George Orwell’s 1984 and Aldous Huxley’s Brave New World. And no matter how much one may try, one cannot nonviolently remove this content from my head. They only imaginable way to remove this content is through aggressing against me (e.g., murdering me).

Further, as Kinsella has pointed out, advocacy of IP entails an opposition to the inviolability of property in physical things. The state considers Vonnegut’s Slaughterhouse-Five to be under “copyright,” which in effect means that if I want to take MY justly-acquired pen and MY justly-acquired paper and to write on it the words from that book, or even to write on it a story similar to the story in that book, the state may come and beat me down, imprison me, or steal from me. But why? It’s my paper, it’s my pen. I am not aggressing against Vonnegut in copying the book; but the state will certainly aggress against me if it catches me doing it.

I came around to rejecting IP when I realised that IP is theft. It violates natural law and the nonaggression axiom. It has no legitimate place in a libertarian society.

It took me a while to accept this, so I understand if you’re afraid. Take your time, but do think about it. Give it a great deal of thought. Go back and forth; consider both sides.

And, once you’ve finally made up your mind on the matter one way or the other, question yourself some more.

Best regards,
Alex Peak

P.S. Loved the video.

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Russ January 18, 2010 at 7:30 pm

Alexander S. Peak wrote:

“Further, as Kinsella has pointed out, advocacy of IP entails an opposition to the inviolability of property in physical things.”

I hate to be a Silas, but advocacy of radio broadcasting rights also entails an opposition to the inviolability of property in physical things.

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Mark Hubbard January 18, 2010 at 8:43 pm
Peter Surda January 19, 2010 at 5:12 am

Dear Brian,

my argument against causality leading to ownership is that if it was true, all positive externalities and all causally related activities would become property violations. Children would become property of their parents. Soviet Union, by inspiring Ayn Rand’s work, would co-own Atlas Shrugged. The one asking a question would co-own an answer.

The issue is more apparent with immaterial goods than material. Even if we make the argument more strict by “going back” from “causality” to “use”, there is no way to determine what activity constitutes “use” of an immaterial good and what doesn’t. Let’s say I test 1000 of 2000 previously known possible protein combinations and determine that they do not possess a certain feature and then publish the results. Another researcher reads the article and starts testing the other 1000. Does that mean he “used” my work? That would mean that not only does the information present in an immaterial good constitute the use, but, absurdly, that the information absent from immaterial good constitutes its use. How about I take a book and write another one, by negating the contents of the original? For example: “Harry Potter was not the son of Lily and James. He did not have a scar on his forehead. His uncle and aunt loved him very much. Voldemort was not Tom Riddle. He did not try to kill Harry. Harry and Malfoy were best friends ever.”. Is that use? Logically, it is the exact opposite.

The “use” of an immaterial good is a metaphor. It does not actually reflect an empirical occurrance.

In summary, I consider this approach invalid, as it does not lead to demarcation of the property boundaries.

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Curt Howland January 19, 2010 at 7:44 am

Pro-IP-Lib,

First, I find your “you didn’t do enough labor” argument to be abominable. Is it really just the labor theory of value that you depend upon?

I say that because your idea of “enough” is not anyone else’s idea of “enough” and never will be. So all the “labor theory of value” does is increase contention.

You wrote,

“And the “non-scarcity” argument is not appropriate here. If it was truly non-scarce, you would just move on and find a substitute from the supply of limitless IP, you wouln’t need to copy theirs.”

Your assertion that non-scarcity isn’t “appropriate here” is false.

No one has ever said that creation is non-scarce. Creativity may very well be the most scarce of all attributes, and I’m all for people trading their production for anything and everything they can get for it (completely ignoring any “labor theory of value” since value is entirely subjective).

What is not scarce is the ideas themselves.

Any particular pyramid is the property of its owner, no one disputes that. Yet the Egyptian who came up with the pyramid is owed NOTHING by the builder of the Luxor hotel, just as there is no violation of property rights by any Mayan who built pyramids in Mexico, because the idea “pyramid” is in fact non-scarce once it has been created.

No one is going to deny his selling the idea for however much he got for it, because no one is saying inventors are somehow not allowed to profit from their invention.

I can use the set of words “It was a dark and stormy night” infinitely without depriving anyone else of that same set of words. Ideas themselves are non-scarce.

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Michael A. Clem January 19, 2010 at 8:33 am

What Mark Hubbard can’t seem to grasp is that while downloading his e-book without paying him may well be wrong, it is not “theft”, because it is not scarce and it is not property. He and others seem to think that the anti-IP’ers are all for some kind of collective “anything goes” philosophy, when that is far from the truth. Justice, like any high ideal or concept, requires a firm grounding in reality and percepts. Basing law on the idea that ideas are property is bound to lead to conceptual errors and injustices, as the occasional blog post here at Mises indicates.

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Shay January 19, 2010 at 2:15 pm

I agree, Michael. The most common slur he used was a variation on “street gang”. A street gang in my understanding goes and attacks others and deprives them of things. They are aware of this deprivation, that their gain is another’s loss. So he really seems to think that we believe that copying is theft, that copying deprives the other, and that we simply deny this for personal gain without feeling guilty. I feel sorry for him. It’s as if he stumbled into this conceptual error, started getting very angry any time he thought about the topic, and now can’t even examine it rationally in order to correct the error. He’s like the monkey with its hand stuck in the bottle because it won’t let go of the cherry inside, even though that’s what’s keeping its hand from fitting through the bottle’s mouth.

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Alexander S. Peak January 19, 2010 at 3:37 pm

Dear Russ,

As long as one assumes photon frequencies to be less than physical, unlike the photons themselves (which are, despite their wave-like nature and lack of mass, physical), then yes, you’re right–my response is not perfect. Certainly we would not want to lump broadcast bands in which IP, despite both being non-physical, since broadcast bands have a natural scarcity unlike pure ideas.

Yours,
Alex Peak

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39n119w January 19, 2010 at 5:00 pm

“….since broadcast bands have a natural scarcity unlike pure ideas.”

i guess this is so. the idea of the conestoga wagon now has had well over a century to accumulate itself in various conciousness….yet you dont see to many of them on the roads. the idea itself may be ever more prevalent but the instatiation of it has diminished

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39n119w January 19, 2010 at 5:06 pm

“….since broadcast bands have a natural scarcity unlike pure ideas.”

additionally, do broadcast bands only have a natural scarcity to the point that the transmission apparatus can deliniate them?
would that be significantly different than the idea originator ideas being understood and replicated by others.

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Brian Macker January 20, 2010 at 5:28 pm

“my argument against causality leading to ownership is that if it was true, all positive externalities and all causally related activities would become property violations. Children would become property of their parents. Soviet Union, by inspiring Ayn Rand’s work, would co-own Atlas Shrugged.”

You are arguing against a straw man. No one is saying that causality leads to ownership. In that case why limit it to positive externalities? If you think my argument merely boils down to causality then why not argue, “Brian, If you shit on my lawn that doesn’t mean you own it.”

You really are that far off track. In fact I gave you an example of a positive externality, my prized bull knocking up your substandard cow, where I would not have ownership.

I already stated this is not merely about causation, and it certainly isn’t merely about externalities. Your argument falls flat.

You want me to use the same arguments against property rights? OK, you claim that the reason you can claim ownership in land is because you improve it. Well that can’t be the case because. 1) I could come over an trim your hedges, improving them. Does that mean I own them? 2) My improvments to my own property will via externalities increase the value of your property, therefore improving it. Does that mean I own your property.

Do you think the fact that cutting your bushes in an unauthorize manner has anything to do with your position, or the fact that you already own the bushes?

Part of the issue here is that the book the third party is copying is already owned, and not by him. He can’t just use it without permission. That is a trespass just like my trimming your bushes without permission is.

By trimming your bushes I’ve mixed my labor/property with yours, without permission. Copying a book without permission mixes the labor/property of one person with another without permission.

You can’t seem to see the forest for all the trees.

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Brian Macker January 20, 2010 at 7:29 pm

Alex Peak,

We agree with Rothbard that you cannot own another person, or the will of another person, or the mind of another person, or anything inside the mind of another person, right?

Right. But agreeing not to do something as part of a contract is not the same as someone owning a piece of your mind.

Suppose you were an artist and a beautiful woman contracted you to paint her nude, but only from a certain perspective, not showing her privates. As part of the job you sign a contract never to create any figure or image in her nude likeness again from memory.

Now you certainly will remember what she looks like nude, and may even be able to make a reasonable copy. However that doesn’t mean that you are a slave or that she owns anything inside your mind.

Had she not posed nude for you then you never would have been able to draw an accurate nude of her in the first place. So it’s not like the outcome of the exchange has left you any poorer in that regard. You aren’t less free after the exchange.

She certainly doe not own your mind as she has absolutely no way to prevent you from thinking whatever you want.

You can think about her all you want. You can describe her to others. Whatever. The only thing that is restricted by the contract is your right to paint an unauthorized nude, or drawing, or sculpture.

If you really really feel you must painter her nude again you can always ask to pay her, or get her release.

You have agreed to do one thing for money and it need not occupy any of your time for the rest of your life.

“It is for this reason that Rothbard, correctly, rejected the validity of anti-libel and anti-slander laws. A person’s “reputation” is something that only exists within the minds of others, and since nobody has a right to control the minds of others, therefore nobody has a “right” to her or his reputation.”

Well I think Rothbard is wrong for the right reason. Defamation laws should not be about owning ones reputation. They should be about fraudulent interference in the right to freedom of association. If someone maliciously lies about, say the local butcher, saying that he keeps his scales out of balance, then that fraudulently interferes in both the butchers and the customers right to free association.

It’s a crime for the same reason that yelling fire in a uncrowded theater would be. You’ve interfered in a transaction using fraud.

“But once a person reads something, does not the content enter the person’s mind? I have read Ayn Rand’s Anthem, and it has therefore entered my mind, as is George Orwell’s 1984 and Aldous Huxley’s Brave New World.”

Not in exactly the same way that direct copying would. Unless you are a idiot savant or something. Copying a book is not something you do from memory. Same is even more true of software.

“And no matter how much one may try, one cannot nonviolently remove this content from my head. They only imaginable way to remove this content is through aggressing against me (e.g., murdering me).”

Why on earth would the copyright holder want to remove whatever you happen to remember from your head. The whole point of selling the book to you is so you will read it.

When Microsoft sells you word they expect you to copy it to your computer. There are certain types of copying that are allowed by copyright.

“Further, as Kinsella has pointed out, advocacy of IP entails an opposition to the inviolability of property in physical things.”

Incorrectly.

“The state considers Vonnegut’s Slaughterhouse-Five to be under “copyright,” which in effect means that if I want to take MY justly-acquired pen and MY justly-acquired paper and to write on it the words from that book, or even to write on it a story similar to the story in that book, the state may come and beat me down, imprison me, or steal from me. “

Well cross off the steal because that’s a loaded word in this context. Extracting restitution is not stealing.

The state as an agent of the copyright owner or the owner can prevent you from using the book as a factor of production in making a copy yes. What’s your point?

“But why? It’s my paper, it’s my pen.”

So? I own a pen and paper. There are many things I can’t do with them, like write on someone elses wall, or stuff it into the tail pipe of their car.

“I am not aggressing against Vonnegut in copying the book; but the state will certainly aggress against me if it catches me doing it.”

This is a false claim. You are agressing against Vonnegut’s property, by using it for a purpose for which he did not give you permission. He is part owner of the book which you are copying.

“I came around to rejecting IP when I realised that IP is theft.”

This is a unsupported assertion.

Although I’ve heard the argument upon which it is based. The argument goes that I own the pen and paper and yet you, the copyright holder, are preventing me from doing what I want with them. Since ownership is the right to control you have stolen from me.

This is nonsense. There can be many restrictions on how you use your property that do not amount to theft. You can’t smoke in my house but that doesn’t amount to a theft of your cigarettes.

So you want to use your pen and paper to copy Anthem. Ayn Rand has prevented this somehow, so now you claim theft. Well what if the way she prevented it was to never have written the book? What if she wrote the book but never sold it to you? Are those theft? Has she in any meaningful way reduced the scope of activities you can take with your pen and paper? Of course not. It’s not stealing.

So, now suppose she lets you read the book on the condition that you don’t copy it while it is in your possession. That doesn’t steal your pen and paper either. It just stops you from doing one activity that involves her property.

“It violates natural law and the nonaggression axiom. It has no legitimate place in a libertarian society.”

“It took me a while to accept this, so I understand if you’re afraid.”

Huh? I’m not afraid. I reject these arguments because they are wrong.

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Brian Macker January 20, 2010 at 7:49 pm

Russ,

“So it’s OK to copy an idea that doesn’t involve words or numbers, but it’s not OK to copy to copy one that does? Hmmm, odd, and seemingly a bit arbitrary.”

It is not the least bit arbitrary.

Stop with the “ideas” nonsense. A book isn’t the equivalent of “an idea”. An idea is a platonic concept, that lives a some kind ghost on a parallel platonic universe of “reals”.

A book is a physical object that encodes a very complex pattern that is unique enough that without an original you could spend a quadrillion years writing and never reproduce it. You need the object to copy it.

In fact, you get caught selling a book called “Harry Potter and the Philosopher’s Stone” that contains the same words as J. K, Rowlings book then we know you copied it, and did not write it yourself.

Because of that it is easy to prove in court that you got hold of a physical copy of the book and made a copy.

This is not something that is possible if you invent the wearing your underwear on the outside of your pants. You might just of thought that up on your own.

The odds of you writing an identical book on your own is so minuscule that it’s an impossibility.

“I have never bought property involving mineral rights, so I’m not sure, but don’t the contracts involved in the buying of such land specify that you are not buying the mineral rights inherent in the land?”
Yes, but don’t have this fetish about what is in the contract, because the legal convention could be the opposite.

For example, when selling land the assumption might be that one never gets the mineral rights. We do that for the space above the land. You don’t own the airspace over your land. In some places you don’t own the water rights, in some you do.

There are all sorts of conditions on rental contract, retail sales, and contractor contracts, that are not spelled out in each contract, but are part of general legal conventions.

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Peter Surda January 21, 2010 at 4:45 am

> No one is saying that causality leads to ownership.
Actually, some IP proponents are. It was unclear to me that this is not your argument, so I apologise for the misunderstanding. I most definitely do not claim that I consider the assumption correct, on the contrary, I consider it absurd.

My another point is however that there is no distinction between immaterial good and causality. You seem to be asserting that there is one.

> Part of the issue here is that the book the third party
> is copying is already owned, and not by him.
Part of the issue is that one cannot distinguish between that which you claim is “owned” and an externality. Neither are empirical phenomena. If you can claim ownership about something that you cannot observe or measure, why can’t you claim ownership about other things that you can neither observe nor measure either?

> By trimming your bushes I’ve mixed my
> labor/property with yours, without permission.
This is all well and good, however the results of trimming versus non-trimming are empirically distinguishable.

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Brian Macker January 21, 2010 at 8:16 am

“Actually, some IP proponents are.”

No they are not. They claim to own the platonic ideas. They are saying, “I created an idea, and therefore I own it”. They don’t care whether you also created the idea independently. Their argument doesn’t depend on whether there is any causal connection between the two. All they care about is that they invented it first and got to the patent office first.

If I independently invent something there is no causal connection from what I did to what the patent holder did, and they are not using that argument.

“My another point is however that there is no distinction between immaterial good and causality. You seem to be asserting that there is one.”

You are going to have to clarify what you mean by both. What is an “immaterial good”? I assumed by that you mean a platonic ideal. Like a “circle”.

“Part of the issue is that one cannot distinguish between that which you claim is “owned” and an externality. Neither are empirical phenomena.”
I don’t think you realize what empirical means. If I swing my fist and hit you in the face that’s an externality and it’s quite empirical.

” If you can claim ownership about something that you cannot observe or measure, why can’t you claim ownership about other things that you can neither observe nor measure either?”
You are responding to a sentence where the claim is ownership of a book. How is a book something that cannot be observed or measured?

You are not getting it. The property owned is the book. A physical object, and not some ghostly immaterial thing. It is co-owed by the copyright holding author and the book buyer. The book and the words in it are physical entities that are empirically observable and testable. For example, one can look at two books, read them, and see if they are the same, or different.

The contents of the book are not magic. There is an actual physical arrangement in the real world of ink on the pages. Books don’t have immaterial souls.

“This is all well and good, however the results of trimming versus non-trimming are empirically distinguishable.”
As are two different books, a blank DVD from one containing MS Word, a blank book from one that has words and pictures, etc.

If you make a copy of MS Word the results of the copying verse non-copying are empirically distinguishable. You had to use MS Word to make the copy, and you didn’t own it for that purpose, someone else did. Thus you are stealing a factor of production, and the most important to the generated value of the copy.

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Peter Surda January 21, 2010 at 8:58 am

Dear Brian,

> No they are not.
They (some, not all) most definitely do. The most evident example is Kerem Tibuk.

> You are going to have to clarify what you mean by
> both. What is an “immaterial good”? I assumed by
> that you mean a platonic ideal. Like a “circle”.
Yes. There is no way to distinguish between those “properties” covered by IP laws, and an externality in general.

> I don’t think you realize what empirical means. If I
> swing my fist and hit you in the face that’s an
> externality and it’s quite empirical.
But swinging your fist is not a platonic ideal, it is an something that actually happens and can be observed independently. Such an example is not covered by my claim. Are you sure you understand what I’m talking about?

> You are responding to a sentence where the claim is
> ownership of a book. How is a book something that
> cannot be observed or measured?
You can own “a book”. But you can’t own the immaterial aspects of that book in an exclusive, unique way. You may very well forbid those you have a contract with any soft of activity (I disagree with Russ on this), but there is no reason why third parties should be bound by restrictions with regards to immaterial aspects of the objects and activities covered by that contract.

> For example, one can look at two books, read them,
> and see if they are the same, or different.
Any empirical observation will unmistakingly tell you that they are different objects. They are only “the same” if your interpretation does not reveal significant differences. Both your interpretation and significance are subjective. Why do you consider the fact that there are two of them insignificant? There is no reason to make that conclusion.

> The contents of the book are not magic. There is an
> actual physical arrangement in the real world of ink
> on the pages. Books don’t have immaterial souls.
Yet, the contents (as in the letters) are empirically distinct objects. Furthermore, even if you use the same font, the imperfections in printing process create differences. You automatically assume that these differences are irrelevant. There is no reason to make this conclusion.

> As are two different books, a blank DVD from one
> containing MS Word, a blank book from one that has
> words and pictures, etc.
This is only because there is another physical element that is present in one and absent in another case. If the only difference between two objects is that one features the immaterial good and one does not, there is no empirical difference between them. You are probably confused because the objects you are comparing are noticeably different already.

I made two other examples. One was Jay Lakner’s stick figure drawing that he made after reading Harry Potter. Is it a use of Harry Potter or not? The only way to know is to follow Jay’s thought processes. There is no other way to determine whether it is or not.

Second one was a book summary (I’ll repeat it here):
—————
This book is a story of a bright boy. He had trouble getting along with his family, but one day was selected for special (yet so far almost unmanifested) skills and sent to an elite school. The school allows him to hone his skills. He excels in combat disciplines and demonstrates great leadership abilities. Meanwhile, the world is being threatened by a powerful enemy. The enemy was temporarily beaten some time ago, but is planning a comeback. It is said that the special skills that the boy possesses are the only way to defeat the enemy. In the end, he defeats the enemy, but finds out that he had been skillfully manoeuvred into the confrontation by his own mentor.
————-

Unless you heard this example before, you probably think this is a summary of Harry Potter. However, I claim you are wrong, it is not a summary of Harry Potter but Ender’s Game. How do you determine whether I’m right? There is no empirical way to do that. It could be either, both or neither. The only way to know is to know my thoughts I had while writing the summary.

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Brian Macker January 22, 2010 at 5:54 pm

Peter,

If you don’t understand that the words I am typing right now exist and can be empirically compared to the next sentence to see if they are the same then I am done discussing this with you.

If you don’t understand that the words I am typing right now exist and can be empirically compared to the prior sentence to see if they are the same then I am done discussing this with you.

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Peter Surda January 22, 2010 at 6:12 pm

I don’t understand what is your example supposed to prove. You seem to be under the impression that I claim that it is impossible to conclude difference. I claim that it is impossible to conclude identity.

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Brian Macker January 22, 2010 at 8:07 pm

Well then I hope you are not a TSA agent, because there is going to be some awful long lines while you ponder the photos on the passports.

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Peter Surda January 23, 2010 at 7:05 am

Dear Brian,

how about you address the actual arguments I made? You are mixing unrelated things. In order to determine whether a photo refers to a certain person, we do not need to determine whether they are metaphysically identical, or whether the photo is a “copy” of the individual. The similarities that are produced by our brain while looking at the individual and the photo are functionally sufficient for the desired purpose. Indeed, we are aware that the photo and the individual are distinct objects and not the same one. We are aware that a photo is created by using a camera to capture the light that was reflected by the individual at some previous time, and that the effect is very similar to that which happens in our eyes. We do not need to conclude that they are “metaphysically same”, just that they are “similar enough for practical purposes”.

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Brian Macker January 23, 2010 at 3:40 pm

“how about you address the actual arguments I made?”

You aren’t making arguments anymore. You are just being obtuse, making ridiculous examples, and bringing up orthogonal issues.

People know they are making copies of Microsoft Word, The Lion King, or Harry Potter when they do so.

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Jordan Viray January 26, 2010 at 4:51 pm

Brian Macker said:

”
‘If you saw my products on display and went home and duplicated them, there wouldn’t be any damages.’

So you think that someone can just look at a copy of Microsoft Word sitting in it’s package on a shelf, and then walk home and copy it? I don’t think so.

No, no one says that.”

Wrong. If someone had a mousetrap on display and went home and copied it, indeed there would be no damages. Someone might not have the ability, as is the case of boxed software sitting on a shelf) to copy, but the copying is fine.

“To copy something you need to get your hands on a physical instantiation of it, which is somebody elses property, not yours. The only way you could get one of your own is to buy encumbered with copying restrictions.”

Wrong. Technically you don’t need a physical instantiation and so your definition of copying is wrong. What if I downloaded the patent documents for a mousetrap? Guess what? I could copy it without needing a physical instantiation of it.

“No one acting in their own self interest is going to spend a million dollars developing software and let you buy a copy for one hundred bucks with full ownership rights. They would only sell you partial ownership, retaining the ownership of the right to copy to themselves.”

Your imagination fails here. Some companies spend money developing software and GIVE it away AND give full rights to it. Just because it is inconceivable to you does not make it impossible in real life. That’s the problem with people thinking they know better than the millions of entrepreneurs in the free-market.

“If you steal it, or violate the copyright holders property rights, to make a copy then you are using it unauthorized as a factor of production in the copy.”

You are already assuming theft / a violation of the copyright holders property rights is intrinsic to copying. But the anti-IP crowd denies that copying is theft or a violation of property rights. Now if you meant stealing as in physically going to a store and stealing a boxed copy of Microsoft Word, then there is a misunderstanding. NO ONE HERE is advocating that kind of trespass since it would physically deprive the owner of that object.

“It’s the same as if you broke into a factory at night, stole a mold, used it to make a bunch of copies with your personal raw materials, then returned the mold before the morning. Even though the imposition on the actual owner seems negligible you have still stolen the factor of production. This establishes co-ownership rights of the object you created by the person who owned the mold.”

No one here is advocating physical trespass. What if I didn’t break into the factory and made my own mold from one of their physical products? I have not stolen the factor of production but would there still be co-ownership? Of course not. The crime in your statement is physical trespass and physical theft, not the copying.

“It would then be up to a judge to decide what the ownership ratio was in the copied objects. In the case of computer software the value contributed by the raw materials and copying labor is minimal. A CD costs ten cents, and hard disk space is even cheaper. The run time on your computer is of negligible cost. Almost the entire value is due to the factor of production owned by the copyright holder.”

Really? We should let a judge decide ownership ratios? The value should be partially determined by the raw materials and copying labor? Let’s say that a piece of software cost $100 to develop and I make a copy on a disc made of diamond costing $9,000 and pay a technician $1,000 to do that. Does the ownership ratio turn to 100:1 in my favor? I don’t think so but some judge might basing his decision on your flawed criteria.

Honestly, do you really think defending government intervention in favor of a labor theory of value is going to last ten seconds on Mises.org?

“The software pirate is producing copies that the copyright holder has ownership rights in because of the unauthorized use of a factor of production. In order to right this wrong and make the copyright holder whole again some restitution is in order.

The pirate has invested perhaps .11 cents in the production value of the copy, while the copyright holders value contribution is the full sales price of the software minus .11 cents, and that’s per copy.”

Thus, one option for the court is to force the pirate to pay the copyright holder almost the full value for every copy, plus court costs, and other enforcement costs needed to track down the pirate. ”

Right. So if I invest $10,000 to make a copy while the full sales price is $100, the copyright holder’s value contribution is negative $9,900? And since the ratio of ownership is 100:1 in my favor, the court should force the “copyright holder” to pay me $9,900. Absurd.

“Also, potentially a penal fine proportional to the risk of getting caught to be paid to the copyright holder.

The extra costs that need to be expended to catch the pirate will easily wipe out any material investments he had made when the copying process is easy. While the harder the copying process is the longer the object being copied will have to have been misused as a factor of production.”

Irrelevant considering your premises are wrong.

“Thus the straight out thief who steals someone’s copy of a software, slips in into his computer, copies it, then returns it secretly is not somehow doing less damage. What he is in fact doing is contributing less value as a factor of production in the copy.”

Of course they are doing less damage. If someone breaks into my house (a wrong) and steals my wrench and then returns it without my knowing, that is less damaging than if he steals it and I know about it. Your contorted arguments are blocking common sense reasoning.

“Suppose it took a full week to copy a CD. Then the theft to make a copy becomes more obviously a burden on the person stolen from, but it also makes the value added to the copy by the pirate rise in value. It becomes a wash when it comes time to decide who has more interest in the copy. Sure the pirate invested a week in the copy, but he also stole use of the software CD for a whole week.”

The thing is that the physical CD is stolen. The owner does not have use of it. That is physical theft and no one condones that. Further, since most software installs to the hard drive, I would not be denied use of that software except if I wanted to install it. I don’t know where my XP CD is, but I can tell you that I haven’t used it in years. If someone had stolen it and spent a week to make a copy, it is clear who has more interest in the copy. Hint: it’s the thief who invested a week to do it. So does that make it right? No. Physical trespass is wrong. Copying itself, on the other hand, is fine.

“The issue of copyrights isn’t merely about Platonic ideals, it’s about physical instantiations of real objects, and factors of production, along with co-ownership of those objects.”

Wrong again. I downloaded Windows 7. It’s not a physical object but a magnetic pattern on my hard drive (or an electrical pattern on an SSD). So copyright cannot be intrinsically related to “physical instantiations of real objects”. It is also absurd, at least in your presentation, that it should be intrinsically related to factors of production or co-ownership.

“If you bought land without the mineral rights and those are retained by someone else then you do not own the minerals on “your” property. Should you try to mine those minerals then you would be stealing. Likewise when you buy software but not the copying rights to that software then you are not allowed to make copies, or you are stealing that use from the person who retained those rights. Which puts you in the same exact position as an actual theft who stole a physical CD.”

No it does not. Did you even watch the animation? An actual thief who steals my physical Office CD 1) has physically trespassed and 2) denies me full use of that CD. If I share my CD drive with Office in it over a network 1) they have not physically trespassed and 2) they have not denied me full use of that CD. That’s the huge difference that the pro-IP crowd continually fail to see.

“Keep in mind that all software in the world exists as physical entities, actual copies, in some form or another. It never exists as a Platonic ideal. Thus to copy you must be misusing some physical object. ”

Wrong. Counterexample: If I have thought up a program, that software is not a physical entity. Your conclusion therefore does not follow.

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Bryon White January 27, 2010 at 8:59 am

As a starving artist, I can honestly say that I encourage people that enjoy my music to reproduce and distribute it to their friends. I would much rather people pay me for my artistic contribution, but that’s not always the case. For people that make hundreds of thousands of dollars selling record, this constitutes a loss of money. For people like me, it means that more people know about my creative property (yes, it is property. I made it, therefore it is mine) and hopefully it also means they’ll be more likely to come see me perform and shell out ten bucks to watch me do it live. The more people want to steal my record, the better chance I have of actually making money off t-shirts and concerts. I’m not saying it’s right, and I definitely don’t agree with blatant theft of creative property, but it’s going to happen. With all the small minded people that use the internet as a substitute for daily life, there will always be people that refuse to educate themselves on intellectual property and blatantly try to pass off the work of others as their own. It is these people that are truly lower forms of life, the ones who attempt to claim glory for something that another person has done.

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mpolzkill January 27, 2010 at 9:16 am

Bryon:

“With all the small minded people that use the internet as a substitute for daily life…”

This is an internet phenomenon? I’m trying to better understand what you’re refering to here:

“…there will always be people that refuse to educate themselves on intellectual property and blatantly try to pass off the work of others as their own”

It seems you are conflating music fans who file share with musicians? Are you only talking about sampling-artists or other musicians too? For example example, a band like Led Zeppelin who incorporated thousands of ideas by old blues artists, super-charged it and repackaged the gumbo for presentation to young white kids who mainly didn’t know any better?

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mpolzkill January 27, 2010 at 10:08 am

Bryon,

I’m not terribly clear either, let me try that again:

It seems you are conflating file sharing music fans with musicans, perhaps? Are you only talking about artists who sample or other musicians too? For example:, a band like Led Zeppelin who incorporated thousands of ideas by old blues artists, super-charged them and repackaged the gumbo for presentation to young white kids who mainly didn’t know any better? Are Jimmy Page and Robert Plant or say, Michael Bolton “lower forms of life” for this reason?

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Brian Macker January 31, 2010 at 10:42 am

“Wrong.”

Actually I was right since I was talking about MS Word, not a mousetrap in a clear plastic wrapper.

” If someone had a mousetrap on display and went home and copied it, indeed there would be no damages.”

No kidding. If I wear my baseball cap backwards and you copy it there would be no damages either. Your example, doesn’t apply to copyright. I’m not defending patents. You on the other hand are trying to use objections that properly apply to patents in an attempt to claim the invalidity of copyright. Which is wrong.

You didn’t however properly address anything I had to say. Many in the anti-IP crowd conflate patents with copyright. They conflate that to which copyright could conceivably apply to that which it couldn’t. I’m addressing copyright, and in fact you are wrong if you think you can copy Microsoft word at a glance.

“Wrong. Technically you don’t need a physical instantiation and so your definition of copying is wrong. What if I downloaded the patent documents for a mousetrap? Guess what? I could copy it without needing a physical instantiation of it.”

Again you are talking patents, not copyright. In fact, everything in this world is a physical instantiation, even the description provided in a patent is physically instantiated.

In fact a detailed enough description in another form is in fact a copy. So the patent registration would be a copy, a physical copy. That’s true even if it is non-functional in the copy. For example, MS word copied to your computer can do word processing, whereas the description on a DVD, a physical instantiation, cannot do word processing.

The definition of copying I am using is the one that would be applicable to copyrights. For example, if someone were to publicly display something that is easy to replicate then copyright couldn’t apply.

It is you who is using a ridiculous definition of “copying” in order to throw the baby out with the bathwater. I’ve used a definition that is appropriate because it is a definition that requires trespass against the owner of the copyright. There is no trespass in the case of viewing someone wearing a hat backwards, or seeing publicly displayed goods like a mousetrap.

In fact your entire comment is one long overextended effort to misunderstand everything I have written. So I will not waste my time responding to the rest of it.

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Jordan Viray February 2, 2010 at 1:44 am

“Actually I was right since I was talking about MS Word, not a mousetrap in a clear plastic wrapper.”

Nope, still wrong. AR said that there would be no problem if someone duplicated a product on display and YOU responded by pointing out the impossibility of duplicating MS Word. I pointed out that your response fails to answer his argument since there clearly are cases where duplication IS possible.

“Your example, doesn’t apply to copyright. I’m not defending patents. You on the other hand are trying to use objections that properly apply to patents in an attempt to claim the invalidity of copyright. Which is wrong.”

Nope. The distinction between copyright and patent is irrelevant in the example. The item being copied could be a piece of sheet music which does fall under copyright law and there still would be no damages. As the page title suggests – copying is not theft.

“You didn’t however properly address anything I had to say. Many in the anti-IP crowd conflate patents with copyright. They conflate that to which copyright could conceivably apply to that which it couldn’t. I’m addressing copyright, and in fact you are wrong if you think you can copy Microsoft word at a glance.”

No one thinks they can copy Microsoft Word at a glance, your suggestion otherwise clearly shows your failure to grasp the arguments presented. You think many of us are equivocating terms when the distinction is irrelevant.

“Again you are talking patents, not copyright. In fact, everything in this world is a physical instantiation, even the description provided in a patent is physically instantiated.”

Again you are making useless distinctions. In fact, both are intellectual property and therefore fair game for copying.

“In fact a detailed enough description in another form is in fact a copy. So the patent registration would be a copy, a physical copy. That’s true even if it is non-functional in the copy. For example, MS word copied to your computer can do word processing, whereas the description on a DVD, a physical instantiation, cannot do word processing.”

My comment was meant to be addressed to AP, not you. My mistake.

“The definition of copying I am using is the one that would be applicable to copyrights. For example, if someone were to publicly display something that is easy to replicate then copyright couldn’t apply.”

Easy to replicate? Like sheetmusic? Where copyright DOES apply?

“It is you who is using a ridiculous definition of “copying” in order to throw the baby out with the bathwater. I’ve used a definition that is appropriate because it is a definition that requires trespass against the owner of the copyright. There is no trespass in the case of viewing someone wearing a hat backwards, or seeing publicly displayed goods like a mousetrap.”

If there is no baby in the bathwater, you wishing there were does not make it so. Physical trespass is wrong against the owner of a “copyright” or not. Now your definition of copying “requires trespass against the owner of the copyright” to which I had already responded by stating that physical trespass is wrong whereas copying is not. By your definition, copying is always wrong since it requires trespass but that is clearly not always the case.

“In fact your entire comment is one long overextended effort to misunderstand everything I have written. So I will not waste my time responding to the rest of it.”

I assure you that I am trying to understand what you have written most earnestly and with a pure heart. Perhaps you will not fail to respond properly next time.

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Sammy D March 4, 2010 at 8:00 pm

This whole thing is simple. I own the book, I sell you the rights to keep and read the book, but I don’t sell you the rights to use the book to write down the exact words written in the book. If you do use the book to do that, you have violated the contract, and I can obtain the damages specified in section A. Also according to section B, any authorized or unauthorized copy of the book you make shall also be constrained by this exact contract regardless of whether or not it has also been written in this book, and I shall retain the rights to that copy as I do this copy. (Thus if any copy is ever made, it will also be under this contract, so it won’t be able to be copied without this contract also applying). By buying this book, you agree to this contract.

Simple, concise, and in keeping with all the contracts and natural law that we libertarians love so much.

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Noah March 4, 2010 at 9:09 pm

Sammy,

I overhear someone reading the book out loud. I am not aware of any preexisting contract between author, and I do not agree to be bound by it before I hear this booking being read aloud. I repeat what I hear in my book. Did I violate a contract I am a party to?

In your example, what if a child, a minor, reads the contractually purchased book and repeats some of the contents in their own writing (assuming the child is old enough to read and write). At what point did the child become bound by the contract (the contract they did not agree to or even become aware of)?

check out this audio book: http://blog.mises.org/2010/02/against-intellectual-property-audiobook-version/

It’s under a 2 hour “read” (i.e. listen); it’ll clear up when a contract is valid, in this context, and when it is a stretch.

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Sammy D March 4, 2010 at 10:37 pm

Well the parent would be responsible for what ever the minor did, so that’s a useless conflation (just as I’m responsible for what ever my bull does in public). If the child is an orphan and is taking care of itself, then it is no longer a minor.

Second, the person who is reading it out loud is probably breaking the public reading part of the contract in the book, so it too can be stopped. Now I don’t think that I can justify stopping the person hearing it from repeating it, but that should be fairly easy to prove in court that he either did or did not use the book in order to reproduce it, depending on the likely hood of somebody being able to hear the entire thing, and then how much they reproduce of it word for word in another book. You can’t however hire or ask someone to read the book to you and then copy it, since clearly that is you (corporate group, conspiracy, etc.) using the book in order to copy it.

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Sammy D March 4, 2010 at 11:02 pm

I’d also like to note: It is not whether or not you know about the contract, It’s that the book is owned by someone, and even though they have expressly forbidden it’s use in copying itself, they don’t have to. I don’t get to shoot at your house until you forbid it. It is immediately known that I should not shoot at your house, no contract necessary. It is also immediately known that I don’t allow the use of my book to copy it (unless given permission). I own the rights to use my book to copy it, and I’m not selling you the right to do that. I am only allowing you to read it and keep it in your house (and perhaps lend it with this contract still intact with them). This fact is known by the average person that can read a copyright symbol. And that’s what the law should be, would be, and is based around. The average person.

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Noah March 5, 2010 at 9:17 am

We’re getting closer.

I agree, forget the minor thing. It’s just adding confusion.

So to make sure I am not misreading you, what are we proving in court?

” Now I don’t think that I can justify stopping the person hearing it from repeating it, but that should be fairly easy to prove in court that he either did or did not use the book in order to reproduce it, depending on the likely hood of somebody being able to hear the entire thing, and then how much they reproduce of it word for word in another book.”

To me this means that the person overhearing, and not agreeing to a contract, is not guilty of any violation. If this is what you mean, then I agree with you.

“You can’t however hire or ask someone to read the book to you and then copy it, since clearly that is you (corporate group, conspiracy, etc.) using the book in order to copy it.”

I didn’t say that. Nonetheless, I agree that hiring someone to agree to a contract and break it for you is not permissible. On this point we also agree.

Have you had a chance to listen to the book yet? It is a good one, and nice and short too.

We are all in favour of contracts. The issue here is that you can’t just “declare” a contract into existence, and bind me by it, if I have not agree to be a party to it. If I do purchase a book from you, and agree to a contract, then I am bound by that contract. My wife, my family, friends and co-workers are not bound by that contract (they cannot be expected to unlearn things that I agreed to never teach them).

Here are a few more goodies:

“It is not whether or not you know about the contract, It’s that the book is owned by someone, and even though they have expressly forbidden it’s use in copying itself, they don’t have to.”

I cannot be bound by a contract that I am not a party to.

“I don’t get to shoot at your house until you forbid it. It is immediately known that I should not shoot at your house, no contract necessary.”

In my scenario, it is not broadly forbidden to overhead things and repeat them. In your scenario (and libertarian theory) it is broadly forbidden to commit an act of aggression against a person or their property (shooting at them falls into this category). If, however, it is generally accepted that I may shoot at your house, lets assume that it’s an activity you find “fun” and welcome the community to participating in shooting at you and your home. Lets assume surprise shooting at that. You cannot broadly permit this and then secretly in your bathroom whisper “deal’s off” and then charge me with an offence. As far as I understood your instructions, the deal was that shooting is permitting.

Back to IP, as far as I understand it, hearing things in the street and repeating them is broadly permitted and accepted, regardless of whether or not someone coped a c and a circle onto a document somewhere.

“I own the rights to use my book to copy it, and I’m not selling you the right to do that. I am only allowing you to read it and keep it in your house (and perhaps lend it with this contract still intact with them).”

We’re assuming rights are divisible. Now we’re leaving the realm of contract and have landed right back into discussing just what property rights are. Trust me, that audio book covers this topic better than I can.

“This fact is known by the average person that can read a copyright symbol. And that’s what the law should be, would be, and is based around. The average person.”

Not quite. The law currently concerns not communicating thoughts from your head if said thoughts have been declared copyrighted by someone else. You have to remember the “in whole or in part”. Even if I think up a phrase, that someone else has written and copyrighted, me “thinking up” this phrase does not entitle me to any right or ownership under current copyright laws. In fact, it makes me a criminal if I communicate the thought.

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Sammy D March 5, 2010 at 8:43 pm

Rights to property are divisible. If this were not the case, I’d be able to sue you for sending radio signals from you broadcast tower into my land. That is not however the case. I don’t own the rights to the radio signals in the vicinity of my home if I haven’t used it yet. If someone else uses it first, then they properly own the radio signal space in and around my house and can do with it as they please, assuming it doesn’t interfere with the rights I’ve already obtained there (e.g. Melt my house with radio waves). Another example would be a home owners association. The home owners association owns the right to set rules about appearance on all the houses within that association. When you sell your house to someone out side of the home owners association, even though they haven’t signed the contract to enter into it, they still have to abide by those rules because they still own the rights to set those rules, and the you couldn’t sell those rights because you didn’t own them. So yes, you can own only partial rights to property. When a land lord sells his apartments, the new owners can’t kick out the people who live there until their lease is up because the residents own the right to live there until the specified time ends. Because what literally happened was the original land lord said “I hereby transfer the right to live in this apartment for X amount of time provided Y conditions are met”. As long as those residents meet Y conditions, they own the right to live there. So yes you absolutely can divide up rights to property. And it can get as demarcated as the original owner wants.

“I cannot be bound by a contract that I am not a party to.”

Contracts are merely ways to record how property rights have been split up, and conditions on which those rights are to be transfered. You can not transfer other peoples rights to yourself without them having “hereby” stated that they have given them to you. And once you have “hereby” stated that you have given property rights to another, you cannot undo it without their “hereby” stating that they reject ownership, not fulfilling the requirements, or “hereby” returning it. The author does own the right to use the book to copy it, and conversely, the right to not have it used to be copied. If you do that and they haven’t given you permission, you have violated their rights. Now, there is only the question of what ‘use’ means. If hearing somebody read it as they walk by on the street doesn’t mean ‘use’, then they haven’t violated those rights. I don’t have the answer to that.

“Back to IP, as far as I understand it, hearing things in the street and repeating them is broadly permitted and accepted, regardless of whether or not someone coped a c and a circle onto a document somewhere.”

I agree with the whole shooting at the house thing (I forgot to add “unless given permission”), but that c inside a circle (properly) means don’t use this book to copy it. If it doesn’t say that or give any indication, then it is incumbent upon you to find out if you have permission to do so. Just as it is incumbent upon you to if you find a wallet, try and find the person who owns it to see if you can keep it, or not pick it up because it isn’t yours. If it is indeed impossible to find the owner, then you can homestead it and do so. If you don’t find the person who owns it, and then start copying, if and when they find out about it, they can claim ownership of it without compensation just as I can of my wallet that you found. I can also claim any copies made, because any copy made using my property are justly my property. And I can again, claim those copies without compensation. Why is this the case? Just at it is the case that “when in doubt, don’t shoot at a house, because if you do, the owner can seek retribution” It is also the case that “when in doubt, don’t copy an entire book, because if you do, the owner can seek retribution” and proper retribution is ownership of the copies without compensation.

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Noah March 7, 2010 at 4:30 pm

So I take it you didn’t listen to the audio book?

It really does break that matter down quite clearly. Have a listen and if you still disagree, let me know where.

Your examples seem well thought out but you’re missing this element of copyright:

If you come up with a phrase or series of words used together in a row, under current copyright law you own that “pattern”. You can include it in a book, or sell/retain your copyright. But if I follow a few months later and use the same words in together in a row, I am now in violation of copyright law.

In this example above, there is no purchase of the book. You may have sold one copy and I am in no way aware of it and have not overheard anyone. Why do you own the right to those words in a row and not I? Further, if this is truly a natural law, and these are rights that you own and I do not (there is no contract as you have stated above “Contracts are merely ways to record how property rights have been split up”), why can I not own the same rights, what has changed so drastically since you wrote those words down?

Noah March 8, 2010 at 11:34 am

Oh wait… I thought about this a little longer. I think I’m confusing my argument by focusing on when or how the so called theft occurs. I would do better if I were to discuss “what is property”, intellectual or physical and when/how “ownership” occurs.

Oh well, next time I’ll lead in with this. Great discussion though, thanks for the well thought out responses (even though I disagree, the debate is always helpful).

Cheers

newson March 6, 2010 at 8:55 am

mpolzkill has probably seen “rip: a remix manifesto” where it’s perfectly clear that led zeppelin “stole” some riffs from earlier performers, ditto rolling stones etc.

it’s a great antidote to all the mickey-mouse clubbers
http://thepiratebay.org/torrent/4873370/RIP__A_Remix_Manifesto_-_Xvid

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mpolzkill March 6, 2010 at 11:11 am

Thanks for the link, Newson. I saw a promo for that, but I haven’t seen the film. I know about Zeppelin’s massive borrowings and wholesale appropriations because I’m a musician. I was one of those suburban white kids who didn’t know any better, but as I pursued music further I came to realize that those guys probably never had a half-way original musical idea in their lives. I say half-way because no one has what could be called original musical ideas, *they* were just outrageously derivative. I was kind of agreeing with Bryon (I think, he never did make things clear): straight appropriation of entire sounds and songs without crediting your source *is* obnoxious. I’m glad you brought up the Stones. IMO, they were far more artistic and ultimately creative in the usage of their borrowings. They also gave credit where it was due and helped introduce this ignorant suburban kid to the source materials.

Another example is Jake and Elwood Blues: the Blues Brothers. Almost completely devoid of musical talent, totally derivitive, a critical joke; but (if they were all still alive) ask James Brown, Ray Charles, Aretha Franklin and Cab Calloway how they liked John Belushi and Dan Akroyd “using them” while simultaneously re-igniting their (at the time, 1980 or so) moribund careers and introducing millions of kids to their genius.

(and *they* didn’t spring fully formed out of some kind of musical Eden. You also could have asked Ray Charles about Nat Cole and all the nearly unknown American gospel greats from his childhood.)

Reply

 

Read more: Copying Is Not Theft — remixed (song and video) — Mises Economics Blog http://blog.mises.org/11464/copying-is-not-theft-remixed-song-and-video/#ixzz0kHXgMneA

 

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Mark Hubbard January 17, 2010 at 4:50 pm

Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind.

Capitalism: The Unknown Ideal “Patents and Copyrights,” Capitalism: The Unknown Ideal,

All you seek to do is justify running your file sharing programs to plunder the wealth of individuals.

Re-examine your premises.

Reply

Brian Macker January 17, 2010 at 4:53 pm

AR,

“You claims that copying requires violation of physical property is so absurd that I can hardly imagine how you could believe it.”

Refrain from using the word absurd until you understand the full position. You are on a site, Mises org, in which the writings of Rothbard are published. Get familiar with them because they violate your claims to absurdity. Seems unlikely that the many people who think this way came up with an absurd idea independently.

The reason it seems absurd is because you are ignorant of the full argument, which is kinda hard to put into a comment on a blog.

The fact of the matter is that with Microsoft Word you would need to get your hands on a copy in order to copy it. To even have a look at the interface requires you to have an authorized copy. What is absurd is believing you could copy it without access to it or someone who has access to it.

I am NOT claiming that for every possible scenario with everything covered by current copyright or patent law. In reality both laws as currently written are way to wide in scope. I’m only pointing it out for that one case for now, software. Once you understand that we can then work in the direction of getting you to understand other cases.

Software used to be protected only by copyright. Which would also prevent reverse engineering via looking at the interface or the object code, because you need physical possession to do that. However to have valid physical possession you need to have agreed to the copyright terms at time of purchase. You are bound as an employee of a company that owns the software, if you are using it.

Therefore it is impossible to copy without possession, or sanctioned and therefore covered use.

Patents are a different issue. Someone can mention to you that Microsoft created a word processor that wraps text automatically to the next line. It does not require that they copy the software in any meaningful sense to tell you this. Also they do not need to hand you a copy of the software for you to create your own software with this feature.

Copyright doesn’t prevent this kind of “copying” which really is not the same meaning. To confuse the two is to equivocate.

Later, and I disagree with this, programmers were allowed to patent software “inventions”. So if Microsoft patents “word wrap” that is a different thing that copyright. It’s no based on physical copying, but is an attempt to own a Platonic idea.

Of course, Platonic ideas can be arrived at independently (for example “one click”) and it is ridiculous to try to prevent others from do so. Patents are obviously wrong because the patent holder can restrict others who in fact invented something before the person who filed the patent.

BTW, back when software could only be copyrighted, companies attempted to get around this by having one division (or company) buy software and then write a description of the features, which was then sold to a sister company, or handed to another division. Then that description was used to write a new piece of software from scratch.

Sometimes it involved reverse engineering the actual object code into a description (which is really just a direct violation of the copy right).

Both ways are really just sneaky legal attempts to violate the copyright agreement.

These attempts was thwarted merely by adding to the software agreement that no reverse engineering of object code, or features would be attempted in order to produce a similar product.

In the case of catchy tunes, well that is problematic, and I don’t have the time to get into it. I think the case is clear for software, and books.

Like in many areas of law, and morality there are fuzzy boundaries like the question of when a man is bald? Often reasoning is not enough and the issue of which conventions should be taken is more a matter of strategy, legal costs, and social consequences than one of right and wrong.

Clearly, a musician should have the right to the fruits of his labor if he takes proper precautions to prevent forced duplication of his song into others minds.

I think this might be handled via contract. Before you are allowed to be trained in music (or join a school that does so) you might be required to agree to obey copyright rules with regard to music, before you attend a concert the same might be required, or buy a radio. (In a non-libertarian society it then may make more sense to just make this a legal convention across the whole society to cut down on transaction costs.)

I think copyrighting characters is ridiculous. I don’t think it would be right to be able to copyright the idea of a boy who talks with his stuffed bear, ala Winnie the Pooh.

One might trademark Winnie the Pooh, but that would not be copyright and is an entirely different issue.

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Russ January 17, 2010 at 5:11 pm

Brian Macker wrote:

“Actually the physical device does prevent access by one user while another one is using it. Computer memory is not a broadcast medium.”

Oh, please. More disingenuousness. When I say that my use of an ebook does not prevent another from using his copy of the same ebook, I am of course referring to *COPIES*. Another person can use his *COPY* of the ebook at the same time that I use my *COPY*. Sheesh!

“The fact of the matter is that with Microsoft Word you would need to get your hands on a copy in order to copy it. To even have a look at the interface requires you to have an authorized copy. What is absurd is believing you could copy it without access to it or someone who has access to it.”

So what? How does this violate normal property rights or contractual rights? If you don’t steal somebody’s CD or DVD to make a copy of it, how is that a violation of their property rights? If I copy a friend’s DVD (with his permission), then I’ve not violated anyone’s normal property rights. Do you say that the DVD is not *really* his, but he only has limited rights to use it? OK, show me a contract that he has *signed* before he got the DVD, saying that he has agreed only to purchase limited rights to the DVD.

The only other way you could say this is wrong is to assume IP rights, which is assuming the existence of that which we are arguing about; begging the question, as SK puts it.

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Brian Macker January 17, 2010 at 5:20 pm

AR,

“Even an example argued about further up contradicts your assertion: a hypothetical, original pyramid somebody built, which it was argued would be protected by IP against anyone who tried to copy it. “

It does not contradict my position. I was only talking about copyright. You apparently still don’t understand copyright even as written now. You can’t copyright a shape you place in plain view of the general public.

Do I need to possess the pyramid in order to copy its shape? Obviously not. I am perplexed as to why you think my concept applies, that’s truly absurd.

BTW, originality has very little role in my conception of copyright. It just doesn’t matter whether I originated the idea that is inherent in the object I own or not. All that need apply is that I am owner of the object.

For example, I might uncover some ancient book, and homestead it. It is the only known copy. So I copyright the work, and start selling copies.

Now suppose you start selling copies also. There are two possibilities. 1) You copied one of the copies I own copying rights to. or 2) You dug up an ancient copy of the book on your own, homesteaded it, and started copying it.

In case, 1) I would have the right to stop you from selling your unauthorized copies. In case, 2) I do not have a valid claim. If it is case 2) you could produce your found original ancient copy to prove your case against me.

There is labor in this case of searching for and finding original manuscripts. It is not however the labor itself that establishes ownership. Ownership can be established in any of the traditional ways, by trade, homesteading, etc.

You could not homestead a text that is not an ancient lost one because the true ownership of the copyright on the text was never abandoned or lost.

It is possible for the copying right owner and the physical owner to become disjoint. For example, the copyright owner may accidentally lose all originals. In which case he would have to go to one of the owners of the physical copies to bargain for the right to copy the physical book. He might pay cash or might have to bargain away some of his copy right. This isn’t such a big problem because it is highly unlikely anyone would know he lost the originals, and he could probably just by an old copy at a used book store.

I thought about this in far greater depth on this subject than anyone who I have ever read that has published on it.

“You cannot build something in plain view and hold everyone who sees it to a contract you think you are entitled to.”

I agree 100% with this sentence, as did Rothbard in his writings. I am not responsible for the misunderstanding of others nor their faulting beliefs and arguments. Even if they seem to be “on my side”.

For example, I believe in natural rights, and that they have some objectivity, but I would never do so on the basis of claiming they were god given. Therefore when stand up comics like George Carlin claim that rights don’t exist, “We made them up like the boogie man”, because it the same scam as claiming they came from god, such claims do not work against my position. Certainly his sarcasm works against the “god given rights” crowd but not my position on natural rights, and how they arise.

Similarly complains about pyramids being in plain sight don’t apply to my claims. Like Rothbard I claim you can only copyright what you take due diligence to keep private (which include private by copyright contract).

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Brian Macker January 17, 2010 at 5:36 pm

“Oh, please. More disingenuousness.”

I assure you that I believe what I am claiming most earnestly and with a pure heart.

“When I say that my use of an ebook does not prevent another from using his copy of the same ebook, I am of course referring to *COPIES*. Another person can use his *COPY* of the ebook at the same time that I use my *COPY*. Sheesh!”

But you were claiming the copying process was not rivalrous, which is false. You said, “‘When somebody copies your ebook, that does not deny you the use of your copy of the ebook.”. In fact, it does deny use during the copying process. You said “WHEN”.

If you meant to say something else then I suggest you reword instead of accusing me of being dishonest.

If you meant “after” then you should have said.
“”After somebody copies your ebook, that does not deny you the use of your copy of the ebook.”

I say, a big “So what”. If I wear your diamond ring when you aren’t wearing it that does not deny your use of it either. The problem with the copying issue is that both copies are mine, the one I have and the one you made. You used my copy, as a productive input to produce yours, and during that time you were copying I was denied access to my copy. Plus you had no right to use my copy in the first place. The entire value of your copy is due to me, not you. I own it.

“If I copy a friend’s DVD (with his permission), then I’ve not violated anyone’s normal property rights.”

That’s the problem. It’s impossible for your friend to give you permission. He is contractually bound not to to copy the CD himself or hand it out to others for copying. This is simple to understand.

Your friend doesn’t have normal property rights in the copy of Microsoft Word he has. It is a special kind of ownership that does not include full control over the object in question.

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Brian Macker January 17, 2010 at 5:58 pm

“The only other way you could say this is wrong is to assume IP rights, which is assuming the existence of that which we are arguing about; begging the question, as SK puts it.”

I only need assume property rights and contract rights. One then writes up a copyright contract to divide up property rights in an object. Now you have a copyright right that is based on both.

There are no mysterious “IP rights” involved.

Because of misunderstandings in this area people believe there are only two sides to the argument, the IP side and the anti-IP side. That’s not true.

Rothbard and I are both anti-IP in that we do not believe that anyone can own platonic ideals. We are both pro-IP in that we think copyright contracts are valid.

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Russ January 17, 2010 at 6:14 pm

Brian Macker

“I only need assume property rights and contract rights. One then writes up a copyright contract to divide up property rights in an object. Now you have a copyright right that is based on both.

There are no mysterious “IP rights” involved.”

Really? Hmmm… strange. I’ve bought software before, and I cannot remember ever having had to sign a contract before receiving the medium. That being the case, I can’t understand how the manufacturers of the media can claim that I do not have full rights to the media (including the software on it).

There may not be “mysterious” IP rights involved, but there do seem to be mysterious implicit contracts, which people apparently can agree to without even necessarily being aware that they are doing so. Or mysterious “end user license agreement dialogues” that are somehow binding, even if they are only agreed to after the media and money have changed hands, not before. Quite mysterious indeed.

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Peter Surda January 17, 2010 at 6:18 pm

Brian:
I think the label “copyright contract” is an oxymoron, copyright and contracts are disjunct sets.

Let’s say that I sell an ebook and in the contract it says that the right to copy is reserved. Unlike some other IP opponents (Bala and Russ come to mind), I think such a contract is valid. However, there is still no way it can bind a third party. Let’s say that the buyer copies it and gives the copy to a third party. In my opinion, the first buyer violated the contract and would be liable for damages. However, I have no contract with the third party, therefore he is under no obligation to follow my wishes with regards to the ebook. This is where copyright would be necessary.

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Jay Lakner January 17, 2010 at 6:49 pm

Mark Hubbard wrote:
“I proved Ayn’s ultimate logic in my aesthetics post before learning Ayn’s ultimate stance as being the same as my own.”

Ok now I feel sorry for you. You don’t understand what a “proof” is. It reminds me of John Donohue’s “proof” that Bala is not an Objectivist.

“Bala’s conclusions are wrong and mis-represent Objectivism is a gross fashion.”

You have demonstrated again and again that you don’t even understand Bala’s reasoning, mainly because you don’t understand the fundamentals of Objectivism.

“And his arguing, and yours Jay, for you never actually mentioned Ayn’s position in your posts until I posted same, you have both been dishonest.”

I have been dishonest?
If you had one tenth of a brain you would realise that I have not put forward MY opinion on the matter one way or the other. Go back and read my posts in this thread, slowly.
All I have done is merely demonstrated your irrationallity. I have never once said “Bala is correct” or “Rand is correct”. I have only tried to explain to you that you do not understand either of their positions.
I have not tried to educate you on the subject. I have advised you over and over to go and educate yourself. In what parallel Universe have I been dishonest???

“You both profess to be followers of a philosophy, you intellectualised that philosophy into a position whereby you sanction theft, and in a way that would alienate the business community, and then you did not have the ethical base to stand back and re-examine your premises on that point.”

When did I profess to be a follower of a philosophy? You do not know my opinions on the matter. I have not revealed them to you.
I can tell you now that I am not an Objectivist. I have never been an Objectivist. If being an Objectivist requires that I become an arrogant, dim-witted, abusive, whim worshipping, statist, antagonistic forum troll then please excuse me if I pass on the decision to become an Objectivist.

“For me, if I had found myself sanctioning theft of property, then I would have to have assumed I was either interpreting the philosophy wrong, or the philosophy was not the freedom loving thing I thought it was and thus re-examined my relationship with it.”

There you go again. You are making an unjustified assumption … YOU ARE ASSUMING THAT PATTERNS AND IDEAS ARE A FORM OF PROPERTY. Bala has demonstrated, from fundamental Objectivist premises, that patterns and ideas should NOT be considered a form of property. You must refute Bala’s reasoning before you can justifably call it “theft”.

“I’m not impressed.”

I am very impressed … with my own patience.

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Mark Hubbard January 17, 2010 at 7:10 pm

You’re a slippery sod Jay.

You said: Otherwise, all you are doing is giving Objectivists a bad name.

and:

Unfortunately it has now gotten to the point where most of the people I regularly chat to use the term “Objectivist” as an insult.

Well, why do you care given:

I can tell you now that I am not an Objectivist. I have never been an Objectivist.

Want to explain the contradiction?

This site’s attitude to IP is poison for the business community: nothing quicker will scare them off. I certainly wouldn’t be writing contracts with most of the people on this thread, including the patent lawyer who apparently doesn’t believe in patents (am I right?).

Again:

But here’s the real thing for me.

You both profess to be followers of a philosophy, you intellectualised that philosophy into a position whereby you sanction theft, and in a way that would alienate the business community, and then you did not have the ethical base to stand back and re-examine your premises on that point.

For me, if I had found myself sanctioning theft of property, then I would have to have assumed I was either interpreting the philosophy wrong, or the philosophy was not the freedom loving thing I thought it was and thus re-examined my relationship with it.

… what is your philosophy then.

YOU ARE ASSUMING THAT PATTERNS AND IDEAS ARE A FORM OF PROPERTY

Yes, see my aesthetics post.

Bala claims to be an Objectivist, yet:

Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind.

Ayn Rand – Capitalism: The Unknown Ideal “Patents and Copyrights,”

All the anti-IP’ers on this thread seek to do is justify running your file sharing programs to plunder the wealth of individuals.

He needs to re-examine his premises.

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Mark Hubbard January 17, 2010 at 7:24 pm

You’re a slippery sod Jay.

You said: Otherwise, all you are doing is giving Objectivists a bad name.

and:

Unfortunately it has now gotten to the point where most of the people I regularly chat to use the term “Objectivist” as an insult.

Well, why ‘unfortunately’? Why do you care given:

I can tell you now that I am not an Objectivist. I have never been an Objectivist.

Want to explain the contradiction?

This site’s attitude to IP is poison for the business community: nothing quicker will scare them off. I certainly wouldn’t be writing contracts with most of the people on this thread, I couldn’t trust you to honour them. And have I heard correctly, Kinsella is a patent lawyer who apparently doesn’t believe in patents?

Again:

But here’s the real thing for me.

You both profess to be followers of a philosophy [strike Jay from that apparently, he is philosophy unknown at this juncture – you [Bala] intellectualised that philosophy into a position whereby you sanction theft, and in a way that would alienate the business community, and then you did not have the ethical base to stand back and re-examine your premises on that point.

For me, if I had found myself sanctioning theft of property, then I would have to have assumed I was either interpreting the philosophy wrong, or the philosophy was not the freedom loving thing I thought it was and thus re-examined my relationship with it.

… what is your philosophy then.

YOU ARE ASSUMING THAT PATTERNS AND IDEAS ARE A FORM OF PROPERTY

Yes, see my aesthetics post.

Bala claims to be an Objectivist, yet:

Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind.

Ayn Rand – Capitalism: The Unknown Ideal “Patents and Copyrights,”

All the anti-IP’ers on this thread seek to do is justify running file sharing programs to plunder the wealth of individuals.

He needs to re-examine his premises.

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Mark Hubbard January 17, 2010 at 7:29 pm

(An administrator might want to take out the double up. It’s getting a bit glitchy in here.)

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Bala January 17, 2010 at 7:39 pm

Mark Hubbard,

When you say this

” Bala claims to be an Objectivist, yet:

Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind.

Ayn Rand – Capitalism: The Unknown Ideal “Patents and Copyrights,” ”

you reveal the notion that ONLY someone who agrees 100% with Ayn Rand’s conclusions is an Objectivist. Therein lies 1 reason for you to check your premises.

” Which ‘begs the question’: Bala (and Jay) – as an Objectivist, what is your position on Rand, and this essay? ”

My position should have been clear to anyone with half a brain. I see the essay as poorly argued because it does not present a justification for treating ideas and patterns as property but raises it (the treatement) to the level of fundamental premises which it is not.

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Brian Macker January 17, 2010 at 7:59 pm

Russ,

“Really? Hmmm… strange. I’ve bought software before, and I cannot remember ever having had to sign a contract before receiving the medium.”

The contract is on the seal, and when the software is installed you have to click the “I agree” button.

This is mostly done to reduce transaction costs. I’m sure if you are willing to pay extra you can fly out to Microsoft headquarters, and meet with a representative, and some lawyers to do it the old fashioned way.

You are well aware of the conventions and are free to return your software for a full refund if you don’t agree to the terms.

We can restructure society to require a formal signing, but the current perfectly valid legal structure works differently and you are damn well aware of it. Nothing mysterious at all.

Who is being disingenuous?

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Mark Hubbard January 17, 2010 at 8:10 pm

My position should have been clear to anyone with half a brain. I see the essay as poorly argued because it does not present a justification for treating ideas and patterns as property

Cross post:

Your posts are surely gibberish, Bala, just a random ‘pattern’. Or are you saying they have a meaning that uniquely attaches to you, the writer of them? Do you ‘own’ the meaning of those words in the ‘pattern’ as you have laid them down, or are you channeling them from some mystical other?

Yes, Rand ‘owns’ the ‘pattern’ of Atlas Shrugged.

Shakespeare ‘owns’ the ‘pattern’ of King Lear.

Those works express their unique minds, thoughts, philosophies, that which we all recognise as coming from them.

Do you believe in the entity of the individual, or is that just some sort or ‘construct’ in your thieving mind? You deny the existence of the individual mind.

Again, Lacan, Foucault, Derrida, and fellow nihilists: friends of yours?

[How’s your file sharing going? Good library being plundered is there?]

Without some type of equivalent of IP:

What commercial laboratory could exist without the ability to patent, hence profit, from their research? None – we would be utterly reliant on government funded research. No IP = Big State for scientific research.

What use would any business have investing money in R & D: none, you can’t patent/profit from the R & D, you’d be a moron to do it.

Would any of us from around the world be debating this issue today on this forum without IP. No. There would be no computer operating system.

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Bala January 17, 2010 at 8:17 pm

Mark Hubbard,

(cross post) my response to the above…

What’s especially interesting is that of the two of us arguing out here, it is I who have read Ayn Rand’s essay “Patents and Copyrights” prior to starting this discussion. It is indeed very interesting that you even got into a discussion without even knowing what Ayn Rand had said on the issue.

Does that say a lot about your approach? It does, to me and (I am sure) any other intellectually honest person reading this thread.

Once again, could you please drop the question begging and address my core argument?

Incidentally, I did not say that language is a set of visual-auditory symbols. Rand did in “Introduction to Objectivist Epistemology”, expanded 2nd edition, page 10, lines 20-21. Could you please read that too before being derisive and making a fool of yourself (as you are doing now)?

Continued use of words like “own”, “ownership” and “thieving” when the very “property” status of ideas and patterns is in question is nothing more than more question begging. You are not making your argument any stronger.

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Brian Macker January 17, 2010 at 8:24 pm

“However, there is still no way it can bind a third party.”

Sure there is, via property rights.

Let’s say that the buyer copies it and gives the copy to a third party.

So the third party has now received stolen property. As I have said the copyright owner retains ownership rights in the copy made and I explained how that arises in detail. The copy is the property,not of the buyer but of the copyright holder. When the buyer gives that copy away to a third party he is selling or giving away stolen property. That is a concept of property rights.

In my opinion, the first buyer violated the contract and would be liable for damages.
He certainly would.

However, I have no contract with the third party, therefore he is under no obligation to follow my wishes with regards to the ebook.

He is bound to respect your wishes with regard to your property. He can’t just receive stolen goods and do as he wishes with it. Should he use that copy to make even more copies then he will be using your property as a productive good to produce even more copies that you will have ownership interest in.

Plus, he should be perfectly aware of the concept of copyright. Just like the guy who buys some TVs off the back of the truck, he should know as any reasonable person should, that the goods are stolen. He needs to take due diligence to make sure he’s not getting a deal that is too good to be true.

If you are third party buyer of DVDs of the latest movie releases from a guy on the street at $5 a pop then you are damn well aware you are receiving stolen goods.

This is where copyright would be necessary.”

No, that aspect is covered by simple property rights and thief. It would be no different from if the “buyer” hadn’t bought the book at all, and no copyright contract existed. If this “buyer” is instead a stealer and makes a copy then gives it to a third party then the third party has received stolen goods and is still not allowed to use the copy in any way. It’s not his. The thief had no right to give it to him.

Such stealing will tend to reduce the amount of goods produced for the market. Any software only has a certain amount of value for single use. There are very few people in the world that could justify paying for the creation of a word processing software product from scratch for single use. Maybe J. K. Rowling, but not your typical secretary.

If we fail to respect and enforce contract and property rights in these cases then software and books will in many cases only be produced if some single buyer, or coop could be formed that is willing to pay a one shot fee for the book or software.

Sure some people will write for the pure pleasure but that is a far smaller number.

The total market value of a book or software may be hundreds of millions, and yet any single buyer or potential coop may only value it at a few hundred dollars. If the actual production costs are higher than a few hundred it will not be written.

Furthermore, the creation of books and software is risky business. For every title that succeeds and repays investors there are tens or hundreds that fail. So that risk must be paid for. Now that hundreds of millions I mentioned doesn’t seem like such a big profit when writing the software costs a million, and 99 out of one hundred titles fail.

Copyright allows for more efficiency in the market. It allows the satisfaction of far more voluntary transactions than would otherwise be possible by reducing transaction barriers and costs.

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Mark Hubbard January 17, 2010 at 8:35 pm

Last cross post – anyone wanting to follow this will have to go to http://www.solopassion.com

Continued use of words like “own”, “ownership” and “thieving” when the very “property” status of ideas and patterns is in question is nothing more than more question begging. You are not making your argument any stronger.

I’ve kept demonstrating to you why IP is property – and the definition for why is in the Rand quote given below on this thread. You are simply in denial.

What is especially interesting is that of the two of us arguing out here, it is I who have read Ayn Rand’s essay “Patents and Copyrights” prior to starting this discussion. It is indeed very interesting that you even got into a discussion without even knowing what Ayn Rand had said on the issue. Does that say a lot about your approach? It does, to me and (I am sure) any other intellectually honest person reading this thread.

Not particularly interesting, I’m a busy man. I’ve shown great honesty: at the start of this thread I said that if Objectivism was against the notion of IP then I would have to reassess my relationship to it. (Up until this point I’ve had no other point of conflict with Objectivism.)

Consider that to your own ‘well read’ position, knowing Rand’s writings, that she was for copyright, you call yourself an Objectivist, yet you would still gleefully rip her estate off by downloading her work and spreading it to all and sundry for no recompense. What does that make you?

Hint, it starts with t, then an h …

And by the way, as stated, my reasoning got me to the same position as Rand without having read her.

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Mark Hubbard January 17, 2010 at 8:38 pm

DON’T STEAL THIS ARTICLE
On the Libertarian Critique of Intellectual Property*

by Greg Perkins

See: http://www.dianahsieh.com/blog/2006/05/dont-steal-this-article.html

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Brian Macker January 17, 2010 at 9:02 pm

If you’ve ever read story line for “The Fountain Head” then you wouldn’t use Ayn Rand as a exemplar for understanding property rights and intellectual property rights.

What possible sane justification could Roarke have for blowing up other peoples physical property, not because it copied his designs, but specifically because the buildings were not proper copies. So flawed were the building that in fact that values of Roarke’s ideas were completely ruined in his view.

If I wrote a word process that worked and then someone else tried to copy mine but failed to even make word wrap function I wouldn’t even care. I certainly wouldn’t feel justified in blowing up the computer upon which he created the software, and especially if I was feeding him ideas about how I wrote my word processor.

Rand’s non-fiction philosophy is flawed, but her fiction is insane. She has an originator fetish.

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Russ January 17, 2010 at 10:38 pm

Brian Macker wrote:

“The contract is on the seal, and when the software is installed you have to click the “I agree” button.”

The seal does not constitute a contract, in my book. And since I bought the medium, without signing a contract, before I clicked OK, as far as I am concerned that “I agree” button is not a valid contract either. The copy of the software is already mine when I click the button, so it’s just a meaningless nuisance.

“This is mostly done to reduce transaction costs.”

Yes, it reduces transaction costs. It also, unfortunately for MS, makes the contract invalid, as far as I am concerned.

“You are well aware of the conventions and are free to return your software for a full refund if you don’t agree to the terms.”

Bwahahaha!!!! I didn’t know you had such a sense of humor! Say I buy a house, and when I enter the house I open the storm door and there is a sticker on the inner door saying that the house is not really mine; I just have the right to live in it, as long as I don’t change the interior decorations. It also says that if I open the door, I agree to the contract. And say that this has become a custom recognized by law. Is that a morally valid contract? I certainly don’t think so!

“Who is being disingenuous?”

I am not being disingenuous at all. I am not claiming that I don’t know about the sticker “contracts” or the EULA “contracts”, or that I don’t know the current law regarding them. I’m just saying I don’t consider them valid contracts.

BTW, in “The Fountainhead”, the reason Roark blows up the Cortlandt building is because Peter Keating broke his promise (a verbal contract) that the building would be built as designed.

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Brian Macker January 17, 2010 at 11:43 pm

You are playing games. So if you don’t think software contracts are valid then stop buying the software, and stop clicking the EULA. We have to have some kind of legal conventions, you can’t just make up your own, and live in your own alternate universe.

If the convention for binding contracts were to shake hands twice and spit into the wind and you did that then it’s pretty clear you are trying to pull a fast one when you renege on the agreement. You can argue all you want about how silly it is but that is the convention.

You break the seal, you click the EULA, and you’ve agreed to the terms.

What’s so special about making squiggly lines using ink on a piece of paper? The only reason I can see it being special to the courts is that it provides verifiable evidence you read a contract (or claimed to) and agreed to it.

Well breaking the seal and clicking the EULA serves that same exact purpose.

Apparently you think a contract can be assumed in the case of mere spoken words in the case of Roark, why not written words of the EULA verified with a click?

Besides you are just quibbling. We could make the convention that you have to sign a contract right at the store before you take delivery of the software, or whatever other means satisfies your legal fetishes. In which case, what I’ve said about copyright holds. One need only come up with a satisfactory means to agree to the contract, and copyright as I laid it out has a natural rights based justification.

On The Fountainhead:

I’m aware of the promise made to Roark but there was no quid pro quo for the owners of the buildings, he made the promise in secret, and Roark new the guy was a weak willed chump. The buildings were not owned by Keating, nor were they advertised as the work of Roark. By what twisted logic can C blow up A’s building because of a promise to B.

Someone could make a secret agreement with Monica Lewinsky that she influence Clinton to build his Presidential library in a certain fasion, but that wouldn’t give that someone the right to blow the library up, even if Lewinsky delivered a blow job to influence Bill in that direction.

It was also a batshit crazy plot line to believe that a jury would have let Roark off on such a theory. Maybe a jury packed with randroids, but not any sane jury. Even Tim Nichols had a more sane justification for blowing up a building that Roark, and he didn’t get off.

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Brian Macker January 18, 2010 at 12:00 am

“It also says that if I open the door, I agree to the contract. And say that this has become a custom recognized by law. Is that a morally valid contract?”

If the conditions are ones that are morally valid to agree to by signing then why wouldn’t they be “morally” valid upon opening the door.

I could see your complaint if there was fraud involved and you couldn’t back out of the contract. Like if the paper says, you actually owe me twice as much chump, and I’m not giving you your money back.

Your example is kinda strange because supposedly you already sat down with the real estate agent and signed a contract. One would think such conditions would already be included. If there were a valid reason such as reduced transaction costs for posting a paper at the door, which you could walk away from, and recover your money, then what possible moral objection could you have.

What possible moral objection do you have to the current conventions regarding software. You certainly aren’t being defrauded. Sure the first time you come across the convention there is a learning curve but that is the case with lots of legal conventions.

hey include taxes in posted gas station prices. Do you think you don’t have to pay for your groceries because the convention is not to include taxes in the marked prices? You saw the posted prices in the isle, you did all the work of collecting the groceries, and now you get to the checkout line and they surprise you with an 8.5% increase on what you thought you agreed to. Guess what, you can leave the cart their and walk out the store if you want.

Likewise you can return the software.

Do you think Microsoft has somehow swindled you by adding an EULA, and one you have openly admitted to knowing about up front?

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austronaut January 18, 2010 at 1:17 am

“The contract is on the seal, and when the software is installed you have to click the “I agree” button.”

The seal does not constitute a contract, in my book….”

is there a difference in a fundamental state of an agreement and a contract?

what makes a locked front door to a house mean “dont enter…private property” is i didnt sign on to the non-entry contract…a convention?

if i said “hey, lesser person…convention here says i can buy and sell you.”

could that also be a contract….a HumanSlaveryUserContract??

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Peter Surda January 18, 2010 at 2:02 am

Brian:
And now we are back to the original issue. You can only bind a third party via the “stolen goods” metaphor if you recognise that immaterial goods are exclusive, non-unique, property. I challenge all three (exclusive, non-unique and property) premises, I don’t see how they logically follow from anything.

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austronaut January 18, 2010 at 2:07 am

or at least the form of agreement as discussed in the eula and a contract?

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David January 18, 2010 at 2:35 am

I’ve never commented on an IP discussion here or anywhere. I never considered the topic until I read one of Kinsella’s posts (don’t remember which one.) And I am definitely not an Objectivist (nor anti-Objectivist.)

But here’s what I know to be true after reading almost all 200+ comments on this thread and the 70+ comments on the thread that Bala linked to up top:

He constructed an argument that ideas and patterns are not property since they do not require exclusivisity. I, like a fool, have been reading comment after comment hoping, wishing that one person could defeat his argument.

Nor can I defeat his argument. I am forced to conclude that he is right.

Bala’s critical thinking skills also compel me to give Objectivism a second look.

Thank you, Bala.

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Mark Hubbard January 18, 2010 at 3:23 am

Oh for Christ’s sake David, Bala is the prince of burglars. He is an ignoble little pissant thief, the end of capitalism and freedom. Grow up.

Read Perkins article:

http://www.dianahsieh.com/blog/2006/05/dont-steal-this-article.html

Read the whole SOLO thread, I dare you:

http://www.solopassion.com/node/7285

Or are you, also, just a shitty ignoble, thieving little file sharer/stealer looking of for justification of your larceny?

This site is poison to the advancement of freedom, to laissez-faire, to contract and all that is honest and noble, to the capitalist system itself.

It is an affront to decent, freedom loving individuals: and remember, Bala the Burglar and Kinsella have no concept of the individual, thus of freedom of same.

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Mark Hubbard January 18, 2010 at 3:23 am

Oh for Christ’s sake David, Bala is the prince of burglars. He is an ignoble little pissant thief, the end of capitalism and freedom. Grow up.

Read Perkins article:

http://www.dianahsieh.com/blog/2006/05/dont-steal-this-article.html

Read the whole SOLO thread, I dare you:

http://www.solopassion.com/node/7285

Or are you, also, just a shitty ignoble, thieving little file sharer/stealer looking of for justification of your larceny?

This site is poison to the advancement of freedom, to laissez-faire, to contract and all that is honest and noble, to the capitalist system itself.

It is an affront to decent, freedom loving individuals: and remember, Bala the Burglar and Kinsella have no concept of the individual, thus of freedom of same.

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Mark Hubbard January 18, 2010 at 3:30 am

Oh for Christ’s sake David, Bala is the prince of burglars. He is an ignoble little pissant thief, the end of capitalism and freedom. Grow up.

Read Perkins article:

http://www.dianahsieh.com/blog/2006/05/dont-steal-this-article.html

Read the whole SOLO thread, I dare you:

http://www.solopassion.com/node/7285

Or are you, also, just a shitty ignoble, thieving little file sharer/stealer looking of for justification of your larceny?

This site is poison to the advancement of freedom, to laissez-faire, to contract and all that is honest and noble, to the capitalist system itself.

It is an affront to decent, freedom loving individuals: and remember, Bala the Burglar and Kinsella have no concept of the individual, thus of freedom of same.

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David January 18, 2010 at 6:20 am

Mark Hubbard ,

What is the point of directing insulting comments like that towards me?

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Russ January 18, 2010 at 9:01 am

Brian Macker wrote:

“You are playing games.”

No, Brian, I’m not just playing games. Contracts aren’t just arbitrary squiggly lines on paper. They are *PROOF* that you have agreed to certain terms, and without that proof there is no *CONTRACT*! That’s why, in a lot of places, verbal contracts are not enforceable; because they’re not provable. That’s the whole point of a signed contract!

I have already explained my objection to sticker contracts. It would be as if I invited you to my home, and on the lower right hand corner of my door, there is a little sticker that says “By entering this door, all your stuff are belong to Russ”. This would obviously be non-binding in any sane court. And even if you knew it was there, I couldn’t prove that without having a signed piece of paper, digital signature, etc.

And once I have a pattern on my physical property, without having signed a contract to get it there, all bets are off. Since it’s now on my property, this “instantiation” of the pattern (to use Silas’ term) is mine, and I can do as I please with it, including ignoring EULA screens. It would just as much be my right to remove the EULA screen, but I choose not to do that, simply because it would be too much work.

And I’m not living in an alternate world. I know full well that this interpretation would not fly in a court of law. So what? I’m not allowed to disagree with the government? I’m supposed to just shut up and love Big Brother?

austronaut wrote:

“what makes a locked front door to a house mean “dont enter…private property” is i didnt sign on to the non-entry contract…a convention?”

Yes. The convention is called “private property”. It’s up to pro-IP people to prove that patterns or ideas qualify, which I don’t think they’ve done. This is why current IP laws are silly. If the patterns were actually property, then the sticker contracts and EULAs wouldn’t be necessary, since you don’t need a contract with another person to protect your rights to your own property from him. In a sane world, the EULAs and sticker contracts would be considered an admission that the patterns *aren’t* intellectual “property”.

David,

Don’t worry about Mark Hubbard. Ignore him. He’s intellectually bankrupt. He has no actual logical arguments for his position. He fervently believes, nay, KNOWS, that he is objectively correct, but he can’t prove it. In fact, he doesn’t think he needs to prove it. His fervent belief is enough, just like with a religious fanatic. And if somebody questions the One True Belief, all he knows how to do is name-call and insult people. It’s a good thing we’re not in the same physical location with him, or he’d probably start “breaking some eggs”.

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Russ January 18, 2010 at 9:39 am

Brian Macker wrote:

“Do you think Microsoft has somehow swindled you by adding an EULA, and one you have openly admitted to knowing about up front?”

No, I don’t think they’ve “swindled” me. I don’t think there is fraud involved. I just don’t think that a contract limiting use of property should be considered binding unless there is a way of positively proving in a court of law (e.g. a signature of some sort) that the contract was consented to before the goods and money were exchanged. That’s what the concept of a contract is all about; it gives the ability to prove that the parties involved voluntarily consented to something, and justifies the force of law being used to make the contract binding. I don’t think implicit contracts, such as a sticker or EULA, meet that qualification, and as such, there is insufficient jsutification for using the force of law to enfore them. The whole concept of an implicit contract is dirty pool, as far as I am concerned. Or as Q from Star Trek would call it; “legal trickery”. It’s a corruption of the Anglo-Saxon legal tradition.

And if having to get people to sign actual binding contracts increases the costs for the software companies, well, that’s tough. They’re already making twice the profit margin of “Big Oil” by making something that’s almost trivially easy to “manufacture” once developed. What, they want *everything* to be handed to them on a silver platter? Who’s living in a fantasy world now?

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Peter Surda January 18, 2010 at 9:42 am

Dear Russ,

I respectfully disagree with your assessment of contractual restrictions. I believe that it is not the depth of the restrictions that is relevant, rather the “meeting of minds” and the attempts to deceive (or lack thereof). It basically means that a contract only occurs when both involved parties’ understanding of the contract contents coincides. This is how common law handles contracts (at least in the continental Europe). Otherwise, there is either no contract at all or fraud.

If someone places a stick on the back side of their door, the entree clearly wasn’t aware of the contents of the contract, so there is none. If I claim to sell apples but actually sell rocks, it’s a fraud. If I write a license agreement, its validity depends on whether it is clear to the user prior to him handing out money that the contract only involves limited rights. Since it is nowadays unusual to transfer full rights when selling software, it is more likely that the contract is considered valid. If you know that the programmer would probably not be willing to sell full rights, but pretend not to know when buying the software, then it is you who is committing fraud. Of course, in the absence of IP, even this is insufficient to bind third parties.

I agree with your assessment of Mark Hubbard though.

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Russ January 18, 2010 at 10:21 am

Peter Surda wrote:

“…Since it is nowadays unusual to transfer full rights when selling software, it is more likely that the contract is considered valid. If you know that the programmer would probably not be willing to sell full rights, but pretend not to know when buying the software, then it is you who is committing fraud….”

But that is where a real contract comes in handy, doesn’t it? If I sign a contract for use of your software, then claim that I didn’t know that meant that I was not allowed to copy it for free, then you have a contract with my name on it that says otherwise. You can then say that if I wasn’t aware of the terms before signing, it’s my fault for not doing my due diligence.

Also, there’s lots of software out there that does allow full rights to *copy*; just not full rights to *modify* the code (e.g. putting your name in the credits in place of the actual authors) or *conceal* the source (e.g. GNU public licensed software). Of course, I don’t consider a GPL to be a valid contract either….

“…Of course, in the absence of IP, even this is insufficient to bind third parties.”

True. And if I buy software from a store, and then throw away the envelope with the sticker, make a copy of the CD and throw away the original, how could anyone prove that I am not a third party who found the copied CD “on the side of the road”? I’m not saying that’s moral. I’m just saying that it’s impossible to prove that I violated a contract, even an implicit sticker contract. And once I “pick up” the CD “from the side of the road”, the CD is my property full and clear, and the EULA contract inside is irrelevant. If a court says that I violated a contract, when it can obviously never prove that, then that’s bad law.

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Brian Macker January 18, 2010 at 10:42 am

Brian:
“And now we are back to the original issue. You can only bind a third party via the “stolen goods” metaphor if you recognise that immaterial goods are exclusive, non-unique, property.”

The stole goods are all physical. Pay attention. At no point did I reference any immaterial goods. Holy cow.

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Peter Surda January 18, 2010 at 11:09 am

@Russ:
I think you’re exaggerating the importance of written contracts. In general, the law recognises verbal contracts or even tacit contracts (I am not sure this is the correct legal term). While if you have a signed contract, you would have it easier to persuade the judge, there is no necessity for a specific form. There are certain exceptions, for example, a marriage contract requires two witnesses (again, in continental Europe, in US one might be sufficient, I am not an expert in this area).

@Brian:
Can you please clarify which physical goods were stolen? It is true that the original buyer violated the contract. But the physical goods remain with him. They are not with the third party, so the third party couldn’t have stolen them.

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Russ January 18, 2010 at 11:21 am

Peter Surda wrote:

“I think you’re exaggerating the importance of written contracts. In general, the law recognises verbal contracts or even tacit contracts (I am not sure this is the correct legal term).”

Well, I know from painful personal experience that verbal contracts are not always enforced. It may be dishonorable to not admit that you have agreed to a verbal contract, but that is not the point. The point is, if somebody doesn’t admit that he agreed to one, and there are no witnesses, there is no way for a judge to prove that an agreement was consented to. Using force to bind people to an agreement is a very dicey thing. It’s like playing with fire. That’s why the law *should* have to make very sure that the terms of a contract were actually consented to before using force. That may not be the way the law actually is, mind you, but that’s the way I think it should be.

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Peter Surda January 18, 2010 at 11:44 am

Russ,

in a way, you are correct. I’m just pointing out that the validity needs to be assessed on a per-case basis. Of course, it is much easier to screw people over if there is only a verbal contract and no witnesses, but there is no principal reason to require a signed contract in all cases. It depends.

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Russ January 18, 2010 at 12:19 pm

Peter,

I think a verbal contract is acceptable if there are witnesses. With respect to IP, though, the point remains that there must be some way of *proving* beyond a reasonable doubt that the parties involved *consented* to the terms of the contract *before* the exchange of goods and money took place.

Note the emphasis on *proving* and *consent*. Even if you think it’s a reasonable expectation that the buyer knew about the sticker contract, so what? A real contract is not just about proving that a person *knew* of the contract, but that he *consented* to its terms. The idea that a person implicitly consents by buying and keeping the item seems to be mere legal trickery to me. There’s no proof of consent. It seems to me that in a truly *free* land, proof of consent should be required before using the force of law to bind a person to a contract.

The reason I keep harping on *before* is, if the exchange has already taken place with no contract in place, and then a EULA screen is presented, it’s too late. The goods are already exchanged, and belong to the current owner full and clear if no contract limiting use was agreed to beforehand. This rules out EULAs, even if you have every reason to expect that one will be there.

This is all beside the point, though. We both agree that contracts aren’t binding on 3rd parties without true IP, so a contractual pseudo-IP will never be both a libertarian and effective way of preventing copying. Only true IP could be that, if a libertarian justification for it could be formulated.

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Brian Macker January 18, 2010 at 1:25 pm

Peter,

“Can you please clarify which physical goods were stolen? It is true that the original buyer violated the contract. But the physical goods remain with him. They are not with the third party, so the third party couldn’t have stolen them.”

Ok, I see you are not getting it. I own the copies. I gave a long description of why my labor was the causal factor in the copies existing, a factor of production, and how I retained my ownership. How I gained this ownership and why my ownership claim is the strongest. Perhaps some analogies will help.

Suppose a industrial woodchipper normally sells for $10000 and I make a deal with you to sell if for $1000 if you deliver all wood the wood chips it produces to me for the lifetime of the machine, and that this deal is binding on any resale of the machine. Then I own any wood chips that chipper produces as a factor of production. Plain and simple.

So you can see how this works right? Now suppose the wood chipper doesn’t produce wood chips, but new wood chippers. You feed in dead trees and out pop more wood chippers. Same deal but the agreement is that I own all wood chippers it produces. Then I would own all resulting wood chippers.

Well there are goods that act like this. For example, cows. Suppose you are a dairy farmer and I sell you a special breed of cow that I create that produces ten times the normal amount of milk. However, instead of charging you ten times the normal cost for a cow, I charge you only twice but with the restriction that you don’t have to breed the cow but if you do then I own all the calves, and furthermore any calf produced by any artificial means also.

Now if the cow is uses as a factor of production to produce any calves, by any means those calfs are mine. If you produce calfs (copy the cow) then try to keep those, or sell them you are stealing my stuff.

Furthermore, it may be that over time it has been found that it is almost never the case that anyone who sells cows wants to contract for sale on any other terms. The cows get branded with special brands, and are often sold with their tubes tied.

It may even become the assumed custom that a cow sale means, you only get to use the cow for milk production and meat, if branded a special way. It may be so unusual to sell a cow with free copying rights that it requires a special contract to be signed in order to prove that someone would be so stupid as to sell their cow this way.

That is the situation with books. Who in their right mind spends a year, or even five writing a book only to sell the first one for a mere $30 bucks along with the right to reproduce and sell at will. Next to nobody.

So the convention has become the opposite, the mere writing of a book means that as author you are the copyright owner. You might want to register the book you wrote for independent proof but that doesn’t establish your ownership. The fact you created it establishes that ownership, and that is all you have to prove, by any means possible. The only other convention we have is that when we sell it we put a copyright notice on it.

Everyone is well aware of these conventions. If you buy a book and want to do so on other terms then well you can call up the author and ask him to purchase a copy with full rights for reproduction. That’s done all the time too. You can purchase copyrights. Of course he isn’t going to sell for $30. He’ll probably want more like $100,000.

I also don’t understand this whole, “I never signed an agreement” by some people who wish to steal the product of other people. Especially when the social conventions are well known.

You know, I never signed an agreement saying would stay off other peoples property when they are not using it. That’s just a convention also, nothing I agreed to. Do I have to sign a contract with every single person on the planet to keep them off the lawn? Of course not. The better convention is the default convention.

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Russ January 18, 2010 at 2:03 pm

Brian Macker wrote:

“You know, I never signed an agreement saying would stay off other peoples property when they are not using it. That’s just a convention also, nothing I agreed to. Do I have to sign a contract with every single person on the planet to keep them off the lawn? Of course not. The better convention is the default convention.”

Yes, the default convention for normal property is property rights, sure. But the difference between patterns, ideas and normal property makes it such that using the normal property convention for ideas and patterns becomes problematic. Do we really have an obligation to pay Ogg the Caveman’s descendants a royalty every time we sell something with a wheel on it? Do we really have to pay Zog the Caveman’s family a royalty every time we use the number three? Or Bill Gates for whatever large integer is burned into the .ISO image for Windows Vista? How about Harold Black’s family every time somebody builds a negative feedback amplifier? Or Rudolf Kalman’s family every time somebody uses a Kalman filter? Or Marconi’s family (or Tesla’s, or Popov’s, or Fessenden’s, as you prefer) everytime a radio broadcast is made? It seems to me that there are some problems here with considering these things the same as normal material property; for one, it would bog down creativity and free enterprise just a mite.

“I also don’t understand this whole, “I never signed an agreement” by some people who wish to steal the product of other people. Especially when the social conventions are well known.”

The fact that copying is currently illegal is certainly well known; that doesn’t mean people are even close to universally acknowledging it as a valid social convention, as normal property rights are, or else file sharing wouldn’t be so commonplace. (Actually, even normal property rights are not such a solid social convention, sadly, or people wouldn’t feel that it’s acceptable to vote themselves other peoples’ money.)

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Brian Macker January 18, 2010 at 2:19 pm

Russ,

Well it’s worse for your position than you imagine, because there doesn’t need to be any EULA, or seal to break, in order for a copyright consent to be implicit in a purchase. The EULA and seal are mostly about other issues, not the default copyright rules. The default is that the author of software, or books owns the copying rights unless they forfeit them explicitly.

“And if I buy software from a store, and then throw away the envelope with the sticker, make a copy of the CD and throw away the original, how could anyone prove that I am not a third party who found the copied CD “on the side of the road”? I’m not saying that’s moral. I’m just saying that it’s impossible to prove that I violated a contract, even an implicit sticker contract. And once I “pick up” the CD “from the side of the road”, the CD is my property full and clear, and the EULA contract inside is irrelevant. If a court says that I violated a contract, when it can obviously never prove that, then that’s bad law.”

Absolutely emphatically wrong. You think pretending you found it by the side of the road is immoral but that stealing property you found by the side of the road isn’t.

Here you are talking about your concerns about morality and it’s clear you don’t even understand the simple concept of lost property. Just because you find something on the side of the road doesn’t mean you own it. You are not thinking like a reasonable moral person. You have to take due care in finding the proper owner.

I used to work as a bellhop and one day I looked down at the floor of the elevator and there was a roll of cash in a rubber band. It was not in a wallet and had no identification. Did I think that meant it was mine? Of course not. It was obviously somebodies because nature doesn’t tend to spit out wads of cash (or software CDs) but I certainly knew it wasn’t mine.

I figured that it was either another bellhops wad, because it was a bunch of singles, or a hotel guests. So I went back to the bell station and asked around if anyone was missing anything. One guys said, “Yes, I lost my roll.” So I said, “Describe it”. He described it correctly and I handed it over to him.

I never assumed that the money was mine. Had I not found the owner I would have gone to the police.
Lost property is not unowned property. You can only homestead lost property after due care in finding the owner.

Well in the case of a piece of software laying on the side of the road there are two co-owners. The owner of the copying rights of that particular software copy, and the use owner of that particular copy. Now after due diligence you may not be able to find the “use owner” who bought it, but you certainly can find the copyright owner because it’s written right on the CD. It will say Copyright 2001-2003 Microsoft Corporation.

You can certainly homestead the use ownership of the CD that you found. However you can’t homestead the copyright ownership.

You keep asking, “How can you prove, how can you prove”. Well society has recognized that it is very unlikely that someone is going to do hundreds of thousand of dollars of effort and just hand it over to someone else free and clear to copy at will. To prevent lots of freeloaders attempting to steal other people’s labor product they have made the legal convention such that the excuse doesn’t work.

Do you really think that you can just find a copy of Microsoft Windows 2007 and now you are in the software business? You think you can now set up a factory for disk duplication? What possible moral justification do you have for believing that? You think you get to steal hundreds of millions just because you found something by the side of the road? What, you think you earned it?

BTW, if you take a purse of a park bench that was left there and don’t try to find the owner that is theft. The convention is that you have to make an effort to find the owner. That’s to prevent people who see someone that left their purse on a bench for a moment from stealing it, and then if caught claiming, “but I thought it was lost.”

There was a string of purse and other thefts in one mall so the police left a purse out in the open unattended and waited. When anybody took in and tried to leave without looking for an owner, or turning it in to lost & found, they charged them with the theft. It stopped the crime wave. I also heard of a case where they were doing this with IPods.

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Brian Macker January 18, 2010 at 2:22 pm

“Do we really have an obligation to pay Ogg the Caveman’s descendants a royalty every time we sell something with a wheel on it?”

No. Were are you getting these ridiculous ideas? Copyrights don’t cover wheels.

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Russ January 18, 2010 at 2:38 pm

Brian Macker wrote:

When I talked about finding something by the side of the road, I meant something like a coach outside somebody’s home meant to be thrown away. Something like this has been abandoned by the previous owner, and can be homesteaded without going through the usual process of looking for the rightful owner. Sorry, I thought this was obvious. Maybe “social conventions” in your neck of the woods are different? *grin*

(BTW, when I find a lost object like a cell phone or whatever, I take it to the appropriate lost and found.)

“You keep asking, “How can you prove, how can you prove”. Well society has recognized that it is very unlikely that someone is going to do hundreds of thousand of dollars of effort and just hand it over to someone else free and clear to copy at will.”

Umm, Brian, society also recognizes the fact that it is OK to take away half of my money every year, and until relatively recently recognized that the ownership of fellow human beings was OK. Heck, until very recently, society has recognized that it was OK to yank its own youth out of their homes and force them into mortal combat. I’m not terribly interested in what “society recognizes” from a philosophical point of view. I’m not completely unswayed by arguments involving tradition or cultural evolution, but I’m not a mindless conservative or collectivist who lets tradition or society think for me.

BTW, ever checked out Linux and GNU? There have to be millions of man hours in that software alone, and they are a small part of the Open Source software out there. It’s all freely copyable. (They do put different terms in place, like you *must* make the source code available for any modifications you distribute, but it’s not done with a strict profit motive.)

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Russ January 18, 2010 at 2:42 pm

Brian Macker wrote:

“Copyrights don’t cover wheels.”

OK, so you’re not for patents? Just copyrights?

Assuming this is the case…

So it’s OK to copy an idea that doesn’t involve words or numbers, but it’s not OK to copy to copy one that does? Hmmm, odd, and seemingly a bit arbitrary.

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Peter Surda January 18, 2010 at 2:50 pm

Brian:
I gave an explanation, several times, why causality is not a sufficient condition to claim ownership.

With the rest of your argument, I congratulate you, this is a very tough one. However, I believe I can counter it. Your argument relies on the ability to uniquely identify the immaterial good in question. As I previously showed, there is significant doubt that it is possible to uniquely identify immaterial goods. Consider my counterexample. Let’s say that the contract about the wood chips or the calves would stipulate that in case those were sold, it would be you who gains 100% of the sales. The naughty buyer would indeed sell some of those, however give a proportion of the received money to a third party. We both agree that this would make the naughty buyer liable for damages to you. However, the third party would be under no obligation with respect to you, and as long as the naughty buyer didn’t mind, the third party would be able to do as he pleases with the money. Even if the naughty buyer went bankrupt you still would not have any recourse. The issue can be further demonstrated by showing that there is no “the” money, just like there is no “the” book (apart from the physical instance thereof). They are both “a”, an abstraction, characteristic or feature. There is no recourse to third parties with regards to the abstract.

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Russ January 18, 2010 at 3:15 pm

Peter Surda wrote:

“There is no recourse to third parties with regards to the abstract.”

You’re thinking in terms of contracts; Brian is not. He is saying that a copyright is a simple right, like property rights, and not a derived right based on contract. (A Macker copyright is not contractual pseudo-IP. It is effectively “true” IP, even though he doesn’t call it that. *wink wink nudge nudge*) So, unlike a contract, a copyright would be binding on third parties, just like normal property rights, if Brian were correct.

The correct argument against Brian is much simpler. A Macker copyright is in effect simply *asserting* “You cannot do such and such with this property, even after I transfer it to you. This condition is viral, and applies to anybody who receives this property, no contract required. Even if this property is abandoned and then homesteaded, these limitations still apply to the homesteader.” Well, that’s nice and all, but just asserting something doesn’t make it so, and creating something doesn’t give him that right.

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austronaut January 18, 2010 at 4:47 pm

this is somewhat confusing.

if my house purchase was a contract (signed, witnessed) and noone else signed the purchase contract it would be against convention to see my locked front door as just an inconvienient barrier to entry?

if a sticker on a software box says “EULA!! property of stinkysoft: by exchanging money for this information-laden disk you are given limited usage (meaning you cant use the disk in a way that would facillitate copying) but….but since there was no contract (signed and/or witnessed) it is just an improper convention on the part of stinkysoft…..just like a convention where selling and buying lesser peoples would take place??

iow, does the eula that is referred to establish a convention the same way as a locked front door on a house where noone else has contracted to purchase the house…so entering the house wold be there own convention.

does the nature then of information and data here come into play??

where somone copied my disk and thus was part of no convention or contract and everyone still has their own data and information??

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austronaut January 18, 2010 at 4:54 pm

bu it guess if the stinkysoft disk i was in possesion of was stolen, it would be me and not stinkysoft trying to get restitution.

when a car is rented it is returned to the rental company but i wasnt aware of disks going back to software companies or where software companies brought their own disks to computers to install data and then took them back with them.

to the extent that propertizes information i am not sure.

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← Previous Comments

{ 293 comments… read them below or add one }

pro-IP-libertarian January 16, 2010 at 10:06 pm

newson-

hey, do i ask you to pay for a lock for my apartment? now do you understand? i lock my own place, and feed my own guard-dog, i don’t shake down my neighbours to pay for a sentry.

Yet you likely would call the police if someone broke that lock and got in, which you certainly shake me down to pay for.

That said, I would be amenable to discuss reducing government IP enforcement, as long as I could form associations for enforcement and sue the stuffing out of you civilly.

Reply

Bala January 16, 2010 at 10:13 pm

pro-IP-libertarian,

” That said, I would be amenable to discuss reducing government IP enforcement, as long as I could form associations for enforcement and sue the stuffing out of you civilly. ”

Isn’t this what this discussion is all about? If free markets were to figure out a way to enforce an IP regime as a means of rewarding producers of ideas and patterns, why would anyone be opposed to it?

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Stranger January 16, 2010 at 10:13 pm

Shay wrote: “But, let’s say you are given monopoly money. That’s obviously not a real dollar, so you aren’t mislead. Or say you’re given a CD-R copy of the music CD with a Sharpie-written title, or a photocopy of the book. Surely you don’t think those are the “real” thing. I take it you don’t consider these a problem, since monopoly money doesn’t devalue the dollar, it being a distinct thing from it.”

Of course they are the real thing if people are willing to accept them as the real thing. If people could not tell the difference between monopoly dollars and U.S. dollars, clearly those who print monopoly dollars would be able to earn enormous wealth at the expense of the people who produce real dollars.

Someone else said that copy-rights means that giving away your copy to a friend is stealing, but this is absurd. This is the same as giving your friend a genuine dollar! The IP producer has decided to produce a good in strictly limited supply and is only concerned with preserving this limit. The copy-right is therefore bound to the media, not the user. If the IP producer sold you a license, then you are stealing by including your friend in your license, or more accurately, you are an accomplice in your friend’s theft. (He has not been allowed to access this information.)

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pro-IP-libertarian January 16, 2010 at 10:25 pm

AR-

Just like everyone else, their rights to income are limited to their right to freely exchange with others.

Right, but no forced or unagreed to exchanges. If you owned a store and I simply took all your product that isn’t exactly free exchange.

If nobody is willing to give you money for your art, you are not entitled to money simply because you have created something.

But you have agreed that their product has value by using your time and resources to copy it. (Although this is not to be confused with the labor needed for production, copying is not production.) You just don’t want to agree on a price and purchase it, or not agree on a price and not purchase it.

And the “non-scarcity” argument is not appropriate here. If it was truly non-scarce, you would just move on and find a substitute from the supply of limitless IP, you wouln’t need to copy theirs.

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pro-IP-libertarian January 16, 2010 at 10:39 pm

Bala-

Isn’t this what this discussion is all about? If free markets were to figure out a way to enforce an IP regime as a means of rewarding producers of ideas and patterns, why would anyone be opposed to it?

Free markets have already figured out a way to enforce the IP regime – IP law. Both civil and criminal. I haven’t studied government enforcement to know how necessary or aprropriate it is, so I can’t speak on that. I do believe civil IP law is a good idea.

Most anti-IP people want to do away with both civil and criminal enforcement because they claim that IP is not really property. I disagree with this pretty strongly.

The anti-IP proposals that I have seen for replacements – electronic tip jars, sole reliance on advertising, patronage, etc. – haven’t seemed like very effective substitutes. They are either unilateral (one side deciding on price/acceptance), unrealistic, unenforceable, unprofitable, or some combination of those factors. The current IP regime is bilateral and enforceable so I think it is much more fair and in congruence with libertarian principles and values.

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Bala January 16, 2010 at 10:57 pm

pro-IP-libertarian,

” Free markets have already figured out a way to enforce the IP regime – IP law. ”

If you call the IP regime a product of a free market, I am shell-shocked and speechless.

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DixieFlatline January 16, 2010 at 11:06 pm

Pro-IP that made me laugh. I suppose the war on Iraq and Federal Reserve are also products of the free market by your reasoning. Both are creations of the state legal regime.

Legal positivism. Some days it seems like we are so far from a genuine revolution in ideas.

@Stranger,

I’ve already refuted your argument about counterfeit money (contract fraud). Copyright has nothing to do with violation of contract, unless one has explicitly contracted with the content creator.

Try again. I’m sure you have a third argument within you.

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Russ January 16, 2010 at 11:23 pm

pro-IP-libertarian wrote:

“And the “non-scarcity” argument is not appropriate here. If it was truly non-scarce, you would just move on and find a substitute from the supply of limitless IP, you wouln’t need to copy theirs.”

Oh, please, now you’re just being disingenuous. You know as well as I do that that isn’t what “scarce” means in this context. In this context, “scarce” means that there *could* be an effectively unlimited supply of the pattern or idea, since it is so easily copyable. It doesn’t mean you can pluck the pattern or idea out of the air.

“The current IP regime is bilateral and enforceable so I think it is much more fair and in congruence with libertarian principles and values.”

Except that it tells people they can’t do things with their own property, even though the “thiefs” are not taking away anything from the IP owners except the opportunity to make the profit they would like to make.

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Stranger January 16, 2010 at 11:39 pm

“Oh, please, now you’re just being disingenuous. You know as well as I do that that isn’t what “scarce” means in this context. In this context, “scarce” means that there *could* be an effectively unlimited supply of the pattern or idea, since it is so easily copyable. It doesn’t mean you can pluck the pattern or idea out of the air.”

There also *could* be an unlimited supply of money, but that is not desirable for anyone but counterfeiters.

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AR January 16, 2010 at 11:43 pm

pro-IP-libertarian: If you owned a store and I simply took all your product that isn’t exactly free exchange.

Yes, but if I tried to bring you to court over it I would be able to list actual damages, namely the loss of my property: the products themselves. If you saw my products on display and went home and duplicated them, there wouldn’t be any damages. At worse, I could say that you caused “lost sales,” but that’s a spurious claim because I do not own potential future transactions. Even if your actions directly caused me to go out of business, it would be no more of a crime than when cheap Chinese labor puts American steel workers out of a job, which I would hope everyone here recognizes as just a part of life that people have to deal with.

The part where scarcity comes in is in assessing damages, not, as you say, whether or not somebody else benefits from it. People can get free value out of a lot of things without violating somebody elses rights, like if an amateur beekeeper moved next door to someone, who then decided to plant crops that require pollination. The fact that they couldn’t have grown those crops without the prior work of the beekeeper does not at all imply that the beekeeper can claim damages.

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newson January 17, 2010 at 12:19 am

oftentimes the software knocks back blog post with standard links. shorten them first with this tool, and they should get through the bug-screen.

http://bit.ly/

mark hubbard rightly deserves to be censured, and is dreaming if he thinks he’s being censored.

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Kerem Tibuk January 17, 2010 at 1:55 am

Strangers argument about counterfeiting is a valid argument and hasnt been answered by the IP socialists yet.

It doesnt matter what should have been done in the past, or what should be in the future but today fiat money is used.

Fiat money, is not a contract.

Fiat money is not a receipt for anything.

Fiat money is not a money substitute but money itself.

Fiat money is money.

And in theory this fiat money system can go on forever without destroing itself and it can even serve better than gold or any commodity.

All it has to be done is to keep the supply as constant as possible. If the authority responsible about the money stops inflating and fractional reserve banking is outlawed the money today can serve its function forever.

The problem is of course given human and state nature this is highly unlikely and who ever is in control of the money is going to inflate the money supply and with the fiat money he can easily do it. What makes gold good money is it restrains anyone from increasing the supply easily.

Lets say we have FED made of of super humans, or aliens without human temptations and they really keep the money supply as constant as they can.

In that case counterfeiting is just copying, which should be ok for an IP socialist.

What if the money holders lose purchasing power when a counterfeiter does his job? They are not entitled to a specific purchasing power are they?

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Nate Y January 17, 2010 at 3:00 am

I swear. Every time I read the comments on these IP posts the arguments from the Pro-IP crowd just make my brain hurt because the logic (if there is any) is so twisted and tortured.

The barter analogy and the “Star Trek” replicator hypothetical completely obliterate the pro-IP stance.

Done and done.

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Bala January 17, 2010 at 4:11 am

Russ,

If you are around, I am in the middle of an intense discussion out here

http://www.solopassion.com/node/7285#comment-83368

and feel that your stepping in can do a lot of good. Would you be interested?

Thanks.

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Jay Lakner January 17, 2010 at 5:00 am

Mark Hubbard wrote:
“And that sanctions theft? What a ludicrous argument.”
and
“No post from the theft camp has addressed this, because you can’t. You may want a second hander society where there are no writers, artists, et al, but a site supporting the work of von Mises is a damned strange place in which to find myself mixing with a coven of thieves and shysters.”
and
“As I have said, arguments for theft are just so much sophistry.”
and
“But really, I’m interested in the ethics of stealing, what are they please.”
and
“No, that’s where you depart from both logic and morality”
and
“Your comprehension is as loose as your morality”
and
“You carry on enjoying the plundering of another’s wealth”
and
“Honest traders are going to starve in your second-handers market. Don’t go thinking you’re advocating a free market, or anything so noble and good.”
and
“I don’t have the heart to stay with this thread. It’s quite sickening.”
and
“that’s the point the file stealers don’t want to deal with.”
and
“And don’t go thinking the Objectivist position is to sanction this theft: it’s not.”
and
“my novel is not a damned ‘pattern’, it is property. Bloody hell.”
and
“No, Objectivism is precisely against the stealing of another’s property. You advocate the initiation of force and fraud.”
and
“I don’t consider you an Objectivist, Bala, I’m afraid you belong to that unethical street gang called file stealers, along with Russ. I despise you and your ilk: you are the barrier to the free society I wish to live in, not the harbinger of it.”
and
“Mises would be turning in his grave.”
and
“I’m not impressed.”
and
“Another drone.”
and
“leaves you standing in your undies in front of the crowd.”
and
“A morality of man qua man prescribes the theft of property an an immorality.”
and
“Yet you think you can thieve the ebook based on pseudo -intellectual trickery.”
and
“Monopoly? Pfui. Scratch the surface of a file sharing gangster and you get illogical nonsense. You might salve your conscience but you are deluding yourself and advocating a user society where in this case the producer is slave to you and your gang.”
and
“Copying files is theft of property is immoral. You cannot rationalise any other position.”
and
“As I said, file stealers: you’re just a street gang of the worse sort. Tribal, enemies of freedom.”
and
“Bala, it appears I’m not the first one to see you for what you are: anarchist, enemy of freedom because the enemy of capitalism: you need to drop the Objectivist claim, you do that philosophy a disservice.”
and
“But that doesn’t sanction theft, you thief.”
and
” You represent and advocate the slavery of the producer to the tyranny of the many. Are you comfortable sitting there?”
and
“music sales are more and more denied them through the theft of the file stealing gang.”
and
“the file sharing street gang have taken over the major part of it so it no longer represents a market, just a lawless anarchy where, therefore, no freedom is possible.”
and
“the fantasist nihilism of anarchy”
and
“the sophistry of saying once you copy my electronic file I’m still left with it being just that, sophistry”
and
“What the anti-IP fools (there’s another for you shay) are advocating is less choice.”

Hasn’t it occurred to anyone (apart from Shay) that Mark Hubbard is clearly not interested in a civil and logical discussion? It seems pretty clear that he is only here to antagonise and ridicule.

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Bala January 17, 2010 at 5:25 am

Jay Lakner,

I can understand what he is doing and saying. He thinks he holds the moral high ground. The truth is otherwise, but how is he to realise it?

Would you believe it if I said that for all his vehemence on the “legitimacy” of IP, he has not read (till date) Ayn Rand’s essay on Intellectual Property? He accepted as much out here

http://www.solopassion.com/node/7285#comment-83380

(Sorry that I am too technologically challenged to direct you straight to that comment of his)

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Jay Lakner January 17, 2010 at 6:02 am

Bala,

Well I don’t get it.
Why would someone argue with such conviction if they have not first thoroughly aquainted themself with the subject they’re arguing about?
Why would someone start antagonising and ridiculing those who disagree if they don’t even understand the fundamentals premises of the subject?

This kind of thing seems to be common too. Someone gains part-knowledge of a subject and then thinks they will be able to logically out-reason people who have been studying it for years. And when the holes in their arguments are revealed they resort to repetition, question begging, name-calling and general antagonism.
People can be such strange creatures sometimes.

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Bala January 17, 2010 at 6:10 am

Jay Lakner,

” Why would someone argue with such conviction if they have not first thoroughly aquainted themself with the subject they’re arguing about?
Why would someone start antagonising and ridiculing those who disagree if they don’t even understand the fundamentals premises of the subject? ”

Search me. The “religious” fervour of the half-trained human robot can be surprisingly intense.

” People can be such strange creatures sometimes. ”

Indeed.

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Bala January 17, 2010 at 6:54 am

Jay Lakner,

Just re-checked Mike Hubbard’s blog on solopassion.com.

Thanks a ton. You said just what I wanted to but didn’t want to for fear of being called more names.

Actually, I am challenging them to prove me wrong but quite interestingly, every single one of them is just avoiding it. They all just want to go off on a tangent and engage in more name calling and labelling. Just goes to show that they probably do not have a counter-argument to offer.

Once again, thanks.

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Jay Lakner January 17, 2010 at 7:08 am

Bala,

No problems :)

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Kurt January 17, 2010 at 8:37 am

Theft – Definition of Theft

“A person is guilty of theft if: he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it.”

Reference: Section 1 of the UK Theft Act 1968.

The operative word here is PERMANENTLY!

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Stephan Kinsella January 17, 2010 at 9:36 am

Hubbard’s Solopassion blogpost is here. Most Objectivists seem totally incapable of discussing this idea, or that of anarchy, coherently or rationally.

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Bala January 17, 2010 at 10:06 am

Stephan,

The important take-home from the discussion on Hubbard’s blogpost is that Objectivists (at least the ones out there) were unable to refute the point that IP is contradictory to Objectivist principles. As they seem to be the most fervent supporters of IP, the logical next step should be to escalate the issue by publishing an article that attempts to break down the orthodox Objectivist position on IP.

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Shay January 17, 2010 at 12:37 pm

Stranger,

You originally argued that people against IP are IP-inflationists, wanting to inflate the supply of intellectual works, similar to how governments printing fiat money inflate the supply and devalue the currency.

I replied that unlike fiat money, intellectual works have inherent value, so inflating their supply doesn’t reduce their inherent value, rather it increases real wealth, because of their inherent value being unaffected.

You then argued that like counterfeit money, counterfeit books and CDs devalue the actual product, because they are indistinguishable to most buyers they increase the quantity of the product available and thus decrease their value.

I replied that Monopoly money (from the game Monopoly) looks quite different from real money and doesn’t devalue real money, and that likewise, a photocopy of a book or a CD-R copy of a music CD in a generic case look quite different from the original book or music CD.

You then replied that a photocopy of a book or CD-R are the real thing because people desire them.

Does this mean at you concede both my points above? You seem to be making each of your arguments without regard for consistency with the previous. I feel like each time it’s a different person replying to me. It’s not a big deal, since the practice is always useful.

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Brian Macker January 17, 2010 at 1:02 pm

“If you saw my products on display and went home and duplicated them, there wouldn’t be any damages.”

So you think that someone can just look at a copy of Microsoft Word sitting in it’s package on a shelf, and then walk home and copy it? I don’t think so.

To copy something you need to get your hands on a physical instantiation of it, which is somebody elses property, not yours. The only way you could get one of your own is to buy encumbered with copying restrictions.

No one acting in their own self interest is going to spend a million dollars developing software and let you buy a copy for one hundred bucks with full ownership rights. They would only sell you partial ownership, retaining the ownership of the right to copy to themselves.

If you steal it, or violate the copyright holders property rights, to make a copy then you are using it unauthorized as a factor of production in the copy.

It’s the same as if you broke into a factory at night, stole a mold, used it to make a bunch of copies with your personal raw materials, then returned the mold before the morning. Even though the imposition on the actual owner seems negligible you have still stolen the factor of production. This establishes co-ownership rights of the object you created by the person who owned the mold.

It would then be up to a judge to decide what the ownership ratio was in the copied objects. In the case of computer software the value contributed by the raw materials and copying labor is minimal. A CD costs ten cents, and hard disk space is even cheaper. The run time on your computer is of negligible cost. Almost the entire value is due to the factor of production owned by the copyright holder.

The software pirate is producing copies that the copyright holder has ownership rights in because of the unauthorized use of a factor of production. In order to right this wrong and make the copyright holder whole again some restitution is in order.

The pirate has invested perhaps .11 cents in the production value of the copy, while the copyright holders value contribution is the full sales price of the software minus .11 cents, and that’s per copy.

Thus, one option for the court is to force the pirate to pay the copyright holder almost the full value for every copy, plus court costs, and other enforcement costs needed to track down the pirate. Also, potentially a penal fine proportional to the risk of getting caught to be paid to the copyright holder.

The extra costs that need to be expended to catch the pirate will easily wipe out any material investments he had made when the copying process is easy. While the harder the copying process is the longer the object being copied will have to have been misused as a factor of production.

Thus the straight out thief who steals someone’s copy of a software, slips in into his computer, copies it, then returns it secretly is not somehow doing less damage. What he is in fact doing is contributing less value as a factor of production in the copy.

Suppose it took a full week to copy a CD. Then the theft to make a copy becomes more obviously a burden on the person stolen from, but it also makes the value added to the copy by the pirate rise in value. It becomes a wash when it comes time to decide who has more interest in the copy. Sure the pirate invested a week in the copy, but he also stole use of the software CD for a whole week.

The issue of copyrights isn’t merely about Platonic ideals, it’s about physical instantiations of real objects, and factors of production, along with co-ownership of those objects.

If you bought land without the mineral rights and those are retained by someone else then you do not own the minerals on “your” property. Should you try to mine those minerals then you would be stealing. Likewise when you buy software but not the copying rights to that software then you are not allowed to make copies, or you are stealing that use from the person who retained those rights. Which puts you in the same exact position as an actual theft who stole a physical CD.

Keep in mind that all software in the world exists as physical entities, actual copies, in some form or another. It never exists as a Platonic ideal. Thus to copy you must be misusing some physical object.

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Brian Macker January 17, 2010 at 1:11 pm

Russ,
‘When somebody copies your ebook, that does not deny you the use of your copy of the ebook.”

Actually the physical device does prevent access by one user while another one is using it. Computer memory is not a broadcast medium.

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Brian Macker January 17, 2010 at 1:20 pm

I don’t like how the video shows the copying process as non-intrusive. Also it depicts the copiers in most cases being the owners who then give it away.

In the first instance the character on the right steals the lefts nose, makes a copy and hands the copy back to the original nose holder. What if he wants his own nose back, and not the copy? What about the fact that his nose was used without permission to make a copy? Should the fact of his ownership of that factor of production mean he has ownership claims in the copy to begin with? Of course it does.

The second instance of copying in this video is NOT a violation of copyright because the owner of the legs on the left makes a copy of his own legs and freely gives them to the character on the right. So it doesn’t serve as an example against copyrights at all.

There are many other copies made by the owners handed freely back and forth throughout the rest of the video.

The copy of the bike is ridiculous. You can’t copy a bike while someone is riding it by just grabbing an yanking. It would be intrusive to copy in reality. You’d have to ask the person to get off the bike, then start taking measurements, testing the alloys, sampling the tread pattern by means of a molding compound, etc.

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Mark Hubbard January 17, 2010 at 1:56 pm

I see the moderation issue was possibly a glitch.

The below is a cross-post of my last post to SOLO:

http://www.solopassion.com/node/7285#comment-83392

The issue of property

Somehow there is such a fundamental issue here. The street gang Bala is part of – sorry Greego, I get your point, but this is theft, and they justify theft – make the following argument:

If on the other hand, you say that you own the contents of the book, you are then claiming ownership of a pattern.

Language as an auditory-visual ‘pattern’, and that no man can claim ownership of an idea. They repeat this over and over on Mises.

For me, this is the deep, fundamental issue. Think about what Bala means by this, it’s quite extraordinary.

It strikes at the core of individuality. It states Atlas Shrugged is a ‘mere’ pattern, unattributable to an individual mind, that Rand can lay claim to none of the ideas, the philosophy, expressed in it. What Bala is implying is that there is no art, more, no beauty, and certainly no individuality, for beauty and aesthetics must flow from the individual mind.

Bala and his ilk seem to me to be the ultimate collectivists, believing in the hive mind only, that we are all linked to some type of Borg mind, and can express no individuality, no ‘property in what we write, or the ideas we express’ because we cannot lay claim to having had ‘our own’ ideas.

A great piece of music will have antecedents, obviously, but most certainly is the product of an individual mind, otherwise we might as well all just listen to lift music.

A great book, all great literature, is the product of individual minds. That’s why, Bala, plagiarism is important to this argument: the ability to spot plagiarism, our own Witi, is proof there was a text and test of comparison to the writings of another individual, and that individual’s property.

I do not see books as patterns, I see them as property, and I can bind a purchaser to conditions of use when buying my property.

Bala represents to me evil. A collectivist, Borg nihilism where no individual mind can exist, thus the notion of individual liberty, therefore, anathema – and justifying the file sharing street gang to theft on a truly huge scale. An ugly world of no art, no beauty, no aesthetics.

I’m still thinking, reading, but those are my thoughts to date. But that Rand essay, anyone, a precis. Perhaps Bala is the one to give us that.

[Can someone in this room give a precis of Rand’s copyright-and-patents essay in Capitalism the Unknown Ideal please. I’ve so much work I don’t have time to look this out, yet, and this will be my single post of today. Feel free to cross post back to SOLO where I shall be debating the issues over the next week or so – I can’t spread myself across two sites]

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Jay Lakner January 17, 2010 at 2:21 pm

@Mark Hubbard,

Ayn Rand once wrote:

“The power to rearrange the combinations of natural elements is the only creative power man possesses. It is an enormous and glorious power–and it is the only meaning of the concept “creative.” “Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before.”

Basically, every idea, every arrangement, every intangible entity permitted by the laws that govern our Universe, are all patterns.

If you disagree then you are simply not an Objectivist.

Mark Hubbard,
You argue with emotionally charged intensity.
You argue with arrogance.
You insult.
You ridicule.
You antagonise.
And you don’t even know the starting premises of either side of the debate!

Please educate yourself first. You are embarrassing yourself when you make statements like: “Bala represents to me evil. A collectivist, Borg nihilism where no individual mind can exist, thus the notion of individual liberty, therefore, anathema – and justifying the file sharing street gang to theft on a truly huge scale.”

Everyone here can see you don’t have a clue what you’re saying. There are patient people on this site who are more than willing to explain both sides of the argument to you. If you admit to yourself that you don’t know everything and drop the superiority complex, we might be able to have an interesting and educational discussion. Otherwise, all you are doing is giving Objectivists a bad name.

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Georgi Popoff January 17, 2010 at 2:33 pm

Well Mark Hubbard, I really doubt the genius of your mind since I couldn’t find your books on thepiratebay.org or isohunt.com. I guess noone tought their time is worth sharing them. Therefore, the truly free exchange of ideas via sharing didn’t put any value on them, and the price you are chargnig people to read your unworthy ideas is the real theft here.

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Mark Hubbard January 17, 2010 at 2:36 pm

“The power to rearrange the combinations of natural elements is the only creative power man possesses. It is an enormous and glorious power–and it is the only meaning of the concept “creative.” “Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before.”

Basically, every idea, every arrangement, every intangible entity permitted by the laws that govern our Universe, are all patterns.

Refer to the body of my post, Jay. What of individuality – art, aesthetics?

That Rand essay was apparently her opinion on copyright and patents: what did she say specifically as to that please. Was she for or against a form of copyright?

Further:

Without some type of equivalent of IP:

What commercial laboratory could exist without the ability to patent, hence profit, from their research? None – we would be utterly reliant on government funded research. No IP = Big State for scientific research.

What use would any business have investing money in R & D: none, you can’t patent/profit from the R & D, you’d be a moron to do it.

Would any of us from around the world be debating this issue today on this forum without IP. No. There would be no computer operating system.

And no I won’t lose the vitriolic attitude to those advocating theft of property.

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Mark Hubbard January 17, 2010 at 2:39 pm

If you’ve read the thread Goergi you’d see I’m arguing from a hypothetical position. Although I have written a novel, last year, am even querying on it, although, you tell me, why should I bother if I can’t contract it’s use on purchase so as to protect my sale against file sharers?

Why? Why would I bother.

(Accounting gets me by in the meantime).

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Mark Hubbard January 17, 2010 at 2:44 pm

By the way Jay, that Rand quote speaks to individuality: to property in what one writes. Yes?

Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before.”

That’s uniqueness.

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Shay January 17, 2010 at 3:04 pm

“And no I won’t lose the vitriolic attitude to those advocating theft of property.”

This is the problem. You and I differ on how we see things, and this blog is for discussion of that. Many people here are moved by reasonable arguments, and would like nothing better than to have their current view shown wrong (not just claimed to be wrong, but shown so via a sound argument). Of course that requires that the arguer never believe himself infallible, and also be open to being shown wrong. But you assume anyone believing anything different than you is motivated by a petty desire to deprive others of things for personal gain. This prevents any merit of your view from being appreciated. If you really believe in IP, you do a disservice to it by giving it a bad image.

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Jay Lakner January 17, 2010 at 3:04 pm

Mark Hubbard wrote:
“And no I won’t lose the vitriolic attitude to those advocating theft of property.”

Do you understand that NOBODY and I mean NOT ONE SINGLE PERSON ON THIS SITE is advocating theft.

GET IT INTO YOUR BRAIN that, using fundamental premises and logical reasoning, there are great doubts as to whether patterns and ideas can be treated as “property” in the first place.

Bala’s line of reasoning gets to the heart of the matter. Rather than insulting him, maybe you should read what he has to say and then go and think about it, deeply.

I would have thought it to be logical to try to understand the other person’s point of view before insulting the hell out of them.

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Mark Hubbard January 17, 2010 at 3:11 pm

Address the issues in my aesthetics post Jay – uniqueness, proven in the Rand quote, speaks to the ability to take property in what one writes: works of art, including ideas, etc. Yes?

And another cross post from SOLO:

‘Thanks for your concern about my intellectual integrity Jay, but, if we’re worried about the image of Objectivists, then speaking as a professional in the business sector – which we are all reliant on for our prosperity and freedom – Objectivists telling the business community that they have no respect whatsoever for their IP and patents, indeed, sanction theft of same as being not unethical at all, I reckon are doing a whole lot more damage to the Objectivist movement than my gropings as I learn the ropes, so to speak.

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Mark Hubbard January 17, 2010 at 3:31 pm

Ayn Rand was ‘for’ copyright:

http://aynrandlexicon.com/lexicon/patents_and_copyrights.html

Quote: What the patent and copyright laws acknowledge is the paramount role of mental effort in the production of material values; these laws protect the mind’s contribution in its purest form: the origination of an idea. The subject of patents and copyrights is intellectual property.

… He can copyright the book in which he presents his discovery and he can demand that his authorship of the discovery be acknowledged, that no other man appropriate or plagiarize the credit for it—but he cannot copyright theoretical knowledge. Patents and copyrights pertain only to the practical application of knowledge, to the creation of a specific object which did not exist in nature—an object which, in the case of patents, may never have existed without its particular originator; and in the case of copyrights, would never have existed.

The government does not “grant” a patent or copyright, in the sense of a gift, privilege, or favor; the government merely secures it—i.e., the government certifies the origination of an idea and protects its owner’s exclusive right of use and disposal.

And apparently she was also for a minarchist IP system.

Which ‘begs the question’: Bala (and Jay) – as an Objectivist, what is your position on Rand, and this essay?

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Mark Hubbard January 17, 2010 at 3:33 pm

In the above the italics (quotation) should have gone down to ‘disposal’.

So, what’s the thieving response to this please. I think Bala and Jay need to front up on the subject of their Objectivism.

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Mark Hubbard January 17, 2010 at 3:39 pm

And I note that in your representation of Rand’s ‘pattern’ writings, Bala and Jay, you have dishonestly mis-represented her in the totality – per her actual position on copyright which was Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind. as I surmised in my aesthetics post above. (Just while we’re talking about giving Objectivism a bad name).

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Brian Macker January 17, 2010 at 3:39 pm

Newson,
“to some dude:
go read the classics. all of the marvels of ancient literature; now how is it possible that these arose in the absense of ip legislation?”

Copying was a laborious process back then that required the copier to retain control of the original for a long period of time. You needed the consent of the owner to do that. Writers often worked on commission to kings and since the full costs of writing we’re covered up front. Copyright is an innovation (like company stock) that allows for multiple buyers to fund a writer instead of one.

Also there were things called guilds, and they had rules their members had to follow. You had to join the guild in order to learn the trade secrets, the IP, and you were bound not to disclose them.

You weren’t even allowed to be a scribe in some societies without the consent of the ruler. So issues with unauthorized copying never arose.

So your question is the same as someone trying to sneak into a theater for a free showing using the excuse, “well how to they pay for TV shows”? Just because one payment model exists doesn’t invalidate all the others. If a King wishes to steal taxes from his subjects in order to fund Beethoven, and then distribute the music for free doesn’t mean that everyone has to follow that model.

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Jay Lakner January 17, 2010 at 3:45 pm

Mark Hubbard,

Bala simply points out that all intangible constructions are “merely” patterns. You use this to insult and antagonise Bala. Then when I point out that Ayn Rand said the exact same thing you try to assert that Ayn Rand meant something different.

They said the same thing. To insult one and praise the other is intellectually dishonest. Stop trying to mask your own ignorance. Stop trying to confuse the issue in order to save face.

Bala believes the starting premises of Ayn Rand. Bala and Ayn Rand believe the same thing. That is why Bala is an Objectivist.

The problem is that one line of logical reasoning (Ayn Rand’s reasoning) leads to the conclusion that copyright should exist while another line of logical reasoning (Bala’s reasoning) leads to the conclusion that copyright should not exist. You need to understand both before you can make a decision as to who is in error. This, you have not done.

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scott t January 17, 2010 at 3:45 pm

“If someone built a unique pyramid that was protected by IP it doesn’t take anything from your property. And it wouldn’t even exist without their efforts. You are free to desing your own pyramid. Or even modify the design enough so it wouldn’t be infringing.

Thinking you have the same claim on someone else’s labor as they do is dishonest.”

i dont see how a one person who built a pyramid and then another who builds a pyramid is making a clami on the same labor….of the pyramid-itecht??

unless you are saying the the pyarmid copy builder somehow used the design of the pyramid designer and the the design, the notion of of the thing, is the labor and that a double claim has been made on teh design-labor of the first pyramid?

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steban January 17, 2010 at 3:46 pm

“If someone built a unique pyramid that was protected by IP it doesn’t take anything from your property. And it wouldn’t even exist without their efforts. You are free to desing your own pyramid. Or even modify the design enough so it wouldn’t be infringing.

Thinking you have the same claim on someone else’s labor as they do is dishonest.”

i dont see how a one person who built a pyramid and then another who builds a pyramid is making a clami on the same labor….of the pyramid-itecht??

unless you are saying the the pyarmid copy builder somehow used the design of the pyramid designer and the the design, the notion of of the thing, is the labor and that a double claim has been made on teh design-labor of the first pyramid?

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Shay January 17, 2010 at 3:47 pm

Mark Hubbard, you should go back and read one of Bala’s original messages on this blog, along with his replies. You might be surprised at what he was advocating, and the business he runs, and reconsider your slander.

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steban January 17, 2010 at 3:56 pm

but i dont see how an increase of the physical value (another instance of) of a thing makes a dual claim on the labor of one (an original) thing.

i think the only exception to this might be with money.

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AR January 17, 2010 at 4:00 pm

Brian Macker: So you think that someone can just look at a copy of Microsoft Word sitting in it’s package on a shelf, and then walk home and copy it? I don’t think so.

To copy something you need to get your hands on a physical instantiation of it, which is somebody elses property, not yours. The only way you could get one of your own is to buy encumbered with copying restrictions.

I was thinking more along the lines of, say, a novel design for a desk. A competent craftsman could replicate such a thing even if they would never have designed such a desk on their own, thus violating the IP of the desk’s design.

Doing the same thing with software would be more difficult but not impossible, and would have the same effect. If the program in question were the first word processor ever, reading the features listed on the box and writing your own word processor that does all the same things would still be IP theft by your reasoning; it would just be more difficult.

You claims that copying requires violation of physical property is so absurd that I can hardly imagine how you could believe it. One of the most contentious areas of modern IP, music, can be duplicated by any sufficiently skilled musician who hears it on the radio, yet despite the artist throwing the music into the luminiferous aether to be heard by anyone with a radio, that would still be IP theft by pro-IP reasoning. Or do you mean to claim that tuning into radio waves passing thru your house is a contract with the original artists?

Even an example argued about further up contradicts your assertion: a hypothetical, original pyramid somebody built, which it was argued would be protected by IP against anyone who tried to copy it. You cannot build something in plain view and hold everyone who sees it to a contract you think you are entitled to.

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Mark Hubbard January 17, 2010 at 4:05 pm

Jay, after the event says:

The problem is that one line of logical reasoning (Ayn Rand’s reasoning) leads to the conclusion that copyright should exist while another line of logical reasoning (Bala’s reasoning) leads to the conclusion that copyright should not exist. You need to understand both before you can make a decision as to who is in error. This, you have not done.

I proved Ayn’s ultimate logic in my aesthetics post before learning Ayn’s ultimate stance as being the same as my own.

Bala’s conclusions are wrong and mis-represent Objectivism is a gross fashion. And his arguing, and yours Jay, for you never actually mentioned Ayn’s position in your posts until I posted same, you have both been dishonest.

You accuse me constantly of question begging, well you’re worse in that you’ve been context dropping.

But here’s the real thing for me.

You both profess to be followers of a philosophy, you intellectualised that philosophy into a position whereby you sanction theft, and in a way that would alienate the business community, and then you did not have the ethical base to stand back and re-examine your premises on that point.

For me, if I had found myself sanctioning theft of property, then I would have to have assumed I was either interpreting the philosophy wrong, or the philosophy was not the freedom loving thing I thought it was and thus re-examined my relationship with it.

I meant what I said in my aesthetics post: you believe in a Borg collectivist mind, the ultimate nihilism being the death of the individual and uniqueness. Ayn was ‘all about’ the very opposite: the best in man.

I’m not impressed.

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Brian Macker January 17, 2010 at 4:10 pm

mSS,

“OK, here’s one for the proIPers: You’re saying, it seems to me, that you can own market share for a product.”

No, we are saying we can retain part ownership in the goods we sell by contract.

“You write a book, put it out in ebook format, and you should retain the right to be the exclusive distributor (if you choose) of that book.”

We retain coownership in any copies. That is, the person who “buys” it is really only renting the copy for certain purposes, none of which includes the right to copy it for resale or free distribution.

“Basically, you own the market for the ebook.”
Not really if the terms of the sale includes the right of transfer. That is how paper books work. The buyers can resell the authorized copies. There is no reason you couldn’t some come up with such a mechanism for ebooks, although it is pointless because the value added by making the copy is actually minuscule. At least with the paper book the copying process adds some value.

“So then, why can’t any other business own it’s market share?”
Other businesses do completely own their market share. If I sell 10% of all donuts then I get paid for every one of those donuts that I produced.

With an original work like a novel the writers work is a productive input to every single copy of that novel. In fact almost the entire value of the copy can be traced to this original labor and not the copying process. This proportion of value due to the author only goes up with an increase in the ease of copying.

The same is not true for donuts. My labor is only part of the productive input to the donuts I make. My labor has zero productive input into the donuts my competitors make.

“If I am a baker, and you come into my town to open a competing bakery, why are you not agressing on my market share?”

Market share in that sense destroys the analogy. The thief of labor occurs in the copying process, via the unauthorized use of the book to copy. I can own the market in things I had a hand in creating.

You are now equivocating to a different meaning of market share. Instead of the term referring to all the items which the author had a productive input into producing you are now switching to the idea of a percentage of total sales of similar items. Items that do NOT have any causal connection with the person claiming a certain percentage of the market.

“What, in precise terms, is the difference?”

One is a claim of ownership over ones own labor value. The claim is made via freely agreed to contracts with the buyers, The claim is against only those books which the author has had productive input into, not all books. Nor is it a claim that buyers should value his book at a certain percentage of all books sold.

The other is a violation of the rights of others to free association, and trade. The buyers never consent to refrain from buying other peoples bagels when they purchase the claimants. The claimant has no possible ownership claims over the bagels produced by his competitors, and he isn’t even making such a claim. Unlike the other case there is a claim to ownership of a certain percentage of total sales of all bagels. No copyright holder claims to a right to a certain percent of all book sales receipts.

Totally different scenarios.

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Mark Hubbard January 17, 2010 at 4:30 pm

Final retort:

Every anti-IP thread here sanctions theft. (Rand would agree with that, Objectivism holds that).

The business community must be appalled, I know I am.

Rothbard was the anarchist and might have thought this, von Mises would not have, every such thread dishonours his name.

The aim of this site is to advance liberty … how do you advance liberty by advocating theft?

This is insane.

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Peter Surda January 17, 2010 at 4:35 pm

Dear Mark,

for all the talking you did, you avoided doing the important: demonstrating either the error in your opponents’ claims, or demonstrating the correctness of yours. While you may hold the opinion that you are right, you do not even attempt to prove it. Your emotions do not absolve you from the necessity of argumentation. You might not mind whether your opinion is logically defensible, but then please don’t pretend your emotions are logic.

I completely share Shay’s opinion, I would be delighted to tackle difficult counterarguments and would consider it a positive experience if my opponents persuaded me I’m incorrect. I am a firm believer in Popper’s principle of falsifiability. Regrettably, I don’t see this happening anytime soon. Even in cases where the IP-proponents attempt to argue, they follow the argumentation lines that have already been attempted by their predecessors, and whenever I counter with a difficult challenge, they avoid the confrontation or perform mental gymnastics that make me wonder if they are trying to fool me or themselves.

I understand that you believe you would lose a lot with the absence of IP. This might be true or not, but it has no effect on the validity of of arguments.

Read more: Copying Is Not Theft — remixed (song and video) — Mises Economics Blog http://blog.mises.org/11464/copying-is-not-theft-remixed-song-and-video/comment-page-4/#comments#ixzz0jYahM6es

 

Manuel Lora January 15, 2010 at 2:01 pm

Great.

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arti January 15, 2010 at 2:11 pm

one for me and one for you with the fbi slogan, nice video :)

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Manuel Lora January 15, 2010 at 2:19 pm

No, the FBI slogan is none for you and all for me.

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Manuel Lora January 15, 2010 at 2:19 pm

No, the FBI slogan is none for you and all for me.

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DD January 15, 2010 at 2:39 pm

Wow, that was great!

Who’s the artist? he or she should do more of these.

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Mark Hubbard January 15, 2010 at 5:11 pm

Mmm. I am a Libertarian, and an Objectivist, and have followed this great blog for some time, however, only really reading the economic articles. I’ve seen many IP posts but not had the time to do anything other than skim through the odd one, but from that, and this post, I have gleaned a fundamental disagreement I have with the position of some of the posters here on IP.

In this context, I don’t care about the ‘technical’ argument: copying is theft.

If I write a novel, then sell it as an ebook on line, then I am entitled to profit from the sales of it: it is the tangible product of my mind. Everyone who copies it without paying me is initiating fraud and denying me what is legitimately mine.

Yes?

Does this ‘site’ have a position on this issue?

Any other position is destroying the ability of artists and intellectuals, to list just some groups, to make a living under laissez-faire, and that’s repugnant, and wrong.

I don’t have time to argue the point here, although I did argue these issues with Cory Doctorow in 2004 on his blog. At that stage I was posting under the handle of ‘tribeless’ (I only post under my own name now): Doctorow’s original argument is at the start of the link, then my ‘disagreement’ follows, I think going through about three or four pages of comments – (um, that was five years ago, and I was posting hurriedly there also, so excuse the typos):

http://craphound.com/est/000041.html

(If the link doesn’t come out here as clicky you’ll have to copy and paste: sorry).

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Noah March 7, 2010 at 4:52 pm

Based on your Objectivist leanings, isn’t using the word Objectivist to describe your position on this subject a violation of Ayn Rands rights to her IP?

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Stranger January 15, 2010 at 5:41 pm

Anti-IP is just a new wave of inflationism, the belief that since media is cheap that we can print our way to wealth.

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Some dude January 15, 2010 at 5:45 pm

What if I agree to exchange my bicycle to a rabbit chick in exchange for money with the agreement that the rabbit chick will not “copy” it and give the copy to another rabbit?

If a third party “copies” the bike with permission from the rabbit chick then it is breech of contract. If a third party copies the bike without permission from the rabbit chick it is theft.

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Russ January 15, 2010 at 5:54 pm

Mark Hubbard wrote:

“If I write a novel, then sell it as an ebook on line, then I am entitled to profit from the sales of it: it is the tangible product of my mind.”

No, Mark, an ebook is pretty much by definition not “tangible”. And if you intend on making lots of money by selling something that is easily copied, then you simply have a poor business plan. It doesn’t matter whether the ebook is a product of your mind or not.

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Roberto Chiocca January 15, 2010 at 5:56 pm

Some Dude: in your example the property is not your idea, it’s a contract.
The fact that you built a pyramid first does not give you any rights over my rocks and land, I can still do as I please with my property, anything that you try to do to take some of my property for you or to prohibit me of using my property is a crime.
Great video!

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pro_IP_libertarian January 15, 2010 at 6:23 pm

Great video.

But copying someone else’s intellectual work and reselling it – or crowding out a market by giving free copies away – is theft.

It is premised on the absurdity that any member of the public with copying equipment has an equal claim to the creator’s work product, which is immoral, collectivist, and a violation of natural law principles.

Cute rabbits and cute song, though.

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newson January 15, 2010 at 6:26 pm

ip is just the new wave of monopoly, the belief that since taxpayers are paying, we can fence our way to wealth.

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pro-IP-libertarian January 15, 2010 at 6:30 pm

Robert Chiocca-

The fact that you built a pyramid first does not give you any rights over my rocks and land, I can still do as I please with my property, anything that you try to do to take some of my property for you or to prohibit me of using my property is a crime.

If someone built a unique pyramid that was protected by IP it doesn’t take anything from your property. And it wouldn’t even exist without their efforts. You are free to desing your own pyramid. Or even modify the design enough so it wouldn’t be infringing.

Thinking you have the same claim on someone else’s labor as they do is dishonest. When are you going to sign over your paycheck for your labor this week to me? It’s OK for you to take mine, right?

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pro-IP-libertarian January 15, 2010 at 6:34 pm

newson-

ip is just the new wave of monopoly, the belief that since taxpayers are paying, we can fence our way to wealth.

Anti-ip is the same old collectivism.

You have a monopoly on access to your house/apartment. When are you going to start letting the public in, you greedy “fencer”?

Everyone look, he’s FENCING!

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Shay January 15, 2010 at 6:41 pm

Stranger wrote, “Anti-IP is just a new wave of inflationism, the belief that since media is cheap that we can print our way to wealth.”

Fiat money has no inherent value. A hard drive full of intellectual works has significant inherent value over a freshly-formatted one. Critical distinction you missed.

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Stranger January 15, 2010 at 6:55 pm

“Fiat money has no inherent value.”

Then why do people exchange goods and services for it?

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Roberto Chiocca January 15, 2010 at 7:00 pm

“If someone built a unique pyramid that was protected by IP.”
If I didn’t sign any contract with the owner of that pyramid and even thought he let me see his work, that gives him no right over my property and yes, I can do anything I want, even the exact same pyramid. If I said that I invented that kind of construction I would be lying, and that’s not a crime, it’s just not moral.

“Thinking you have the same claim on someone else’s labor as they do is dishonest.”
But who built my pyramid was ME, you have no right over my property or work, so I do not own you anything(if you cry and get on your knees I can say to other people that you invented that, but you wouldn’t get anything either).

“When are you going to sign over your paycheck for your labor this week to me? It’s OK for you to take mine, right?”
If you want to give me yours I won’t complain but I will not give you my property if I don’t want to, and I don’t know how you got to this comparison.

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newson January 15, 2010 at 7:37 pm

to pro-ip libertarian:

hey, do i ask you to pay for a lock for my apartment? now do you understand? i lock my own place, and feed my own guard-dog, i don’t shake down my neighbours to pay for a sentry.

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Mark Hubbard January 15, 2010 at 8:10 pm

Russ said: No, Mark, an ebook is pretty much by definition not “tangible”. And if you intend on making lots of money by selling something that is easily copied, then you simply have a poor business plan. It doesn’t matter whether the ebook is a product of your mind or not.

And that sanctions theft? What a ludicrous argument.

newson wrote: hey, do i ask you to pay for a lock for my apartment? now do you understand? i lock my own place, and feed my own guard-dog, i don’t shake down my neighbours to pay for a sentry.

And what does that have to do with this argument?

I repeat: arguing for the sophistry that copying isn’t theft, is arguing for a second hander, user society. It destroys the ability of artists and intellectuals to make a living from their minds and their efforts under laissez-faire, and that’s repugnant.

No post from the theft camp has addressed this, because you can’t. You may want a second hander society where there are no writers, artists, et al, but a site supporting the work of von Mises is a damned strange place in which to find myself mixing with a coven of thieves and shysters.

Although I am heartened to see some on here do understand how IP is a property right, as important as the title to my home.

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RWW January 15, 2010 at 8:15 pm

No post from the theft camp has addressed this…

Your statements are unsubstantiated assertions and question-begging. There’s been nothing to address so far.

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Mark Hubbard January 15, 2010 at 8:20 pm

‘The ideas that change the intellectual climate of a given environment are those unheard of before. For these new ideas there is no other explanation than that there was a man from whose mind they originated.’

Ludwig von Mises – The Ultimate Foundation of Economic Science

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Mark Hubbard January 15, 2010 at 8:28 pm

RWW, do you agree that taking ‘copying is not theft’ to its logical conclusion will lead to a second hander society?

To answer that you have to convince me, to take one example, how does an author or a musician support himself with the products from his mind: books and songs, in an age when Internet sales govern the market?

This Christmas Amazon sold more ebooks that dead tree books.

As I stated on Doctorow’s blog, ‘at no other stage in human history has civilisation had anything like the computer, and thus,the ability for one person anywhere in the globe to share one file with billions.’

Copying is denying the writer/songster payment for his property that he has put in the market under a contract of copyright. Copying is thus most surely theft.

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RWW January 15, 2010 at 8:34 pm

Sorry, Mark, but you’re not going to get away with pushing some pitiful variant of the Labor Theory of Value here. That entitlement mentality, so typical of Randist thinking, is one of the largest factors that led to my own divorce from “Objectivism” as I gained a real understanding of economics and a consistent ethical system.

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RWW January 15, 2010 at 8:41 pm

My previous comment was in response to your previous comments.

RWW, do you agree that taking ‘copying is not theft’ to its logical conclusion will lead to a second hander society?

How about you try communicating like a human being instead of in meaningless emotional jargon?

…how does an author or a musician support himself with the products from his mind: books and songs, in an age when Internet sales govern the market?

While I am taken aback that a supposed “Objectivist” would be such a blatant consequentialist, the issue you raise has been addressed here ad nauseum. It betrays your lack of both imagination and willingness to do some basic background reading.

Copying is denying the writer/songster payment for his property…

If you’re referring to digital content, you’re begging the question.

…that he has put in the market under a contract of copyright.

Odd that I don’t recall having agreed to such a contract.

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Mark Hubbard January 15, 2010 at 8:44 pm

Your two posts now are short of detail RWW.

… as I gained a real understanding of economics and a consistent ethical system.

Explain to me the ethics of ‘copying is not theft’. Give me the benefits of your ‘real understanding’.

Do you look forward to living in a world where your only choice of music is the kid’s heavy metal band in the garage next door?

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RWW January 15, 2010 at 8:47 pm

Explain to me the ethics of ‘copying is not theft’.

Sorry, but when I am saying “Let people do X” and you are saying “We must forcefully prevent people from doing X,” the burden of the argument seems to be upon you. I eagerly await some meaningful argument.

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AR January 15, 2010 at 8:50 pm

What right do artists have to make a living? None whatsoever. Just like everyone else, their rights to income are limited to their right to freely exchange with others. If nobody is willing to give you money for your art, you are not entitled to money simply because you have created something.

But, as for the question of how artists would make a living, there would still be commissions, and people do value hearing a performance by the original artist in concert or owning the original hardcopy of a painting, so it wouldn’t be impossible. You just wouldn’t be able to censor the use of your own work.

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Mark Hubbard January 15, 2010 at 8:53 pm

‘Copying is denying the writer/songster payment for his property…

If you’re referring to digital content, you’re begging the question.

As I have said, arguments for theft are just so much sophistry.

And I started with a valid question, repeat: do you agree that taking ‘copying is not theft’ to its logical conclusion will lead to a second hander society?

Your answer – How about you try communicating like a human being instead of in meaningless emotional jargon? – in no way addressed the question.

But really, I’m interested in the ethics of stealing, what are they please.

Reply

Bala January 15, 2010 at 8:54 pm

Mark Hubbard,

” And that sanctions theft? What a ludicrous argument. ”

Actually, what’s ludicruous is calling it “theft”. When I steal your car, you do not have the car any more. This is an integral aspect of the concept “theft”. Where there is no “taking”, it is absurd to call it “theft”.

When I copy your idea, you are not deprived of your idea (I did not lobotomise you). So, how do you call it theft?

Reply

Bala January 15, 2010 at 8:55 pm

Mark Hubbard,

” do you agree that taking ‘copying is not theft’ to its logical conclusion will lead to a second hander society? ”

No. So where does that leave us?

Reply

AR January 15, 2010 at 8:56 pm

Do you look forward to living in a world where your only choice of music is the kid’s heavy metal band in the garage next door?

The spirit of creativity that would cause such bands to exist even in a hypothetical world without IP would also provide for every other imaginable taste in music.

The art of the Renaissance, and every period before, does predate copyright, you know.

Reply

Mark Hubbard January 15, 2010 at 8:59 pm

and you are saying “We must forcefully prevent people from doing X, …

Ludicrous.

Answer this:

I put an ebook online and the conditions of my site say you must pay me to download this. You simply copy and do not pay.

I put a dead tree book on the shelf of my bookshop, a price tag of $30 is on it. You walk in, pick up the book and walk out of my store without payment.

You will agree the second instance is theft. Why is the first instance not theft?

Reply

Bala January 15, 2010 at 8:59 pm

Mark Hubbard,

” I am a Libertarian, and an Objectivist ”

I claim to be an Objectivist too and have come to the conclusion (starting from Objectivist premises) that support for IP contradicts the basic principles of Objectivism. My conclusion is that supporting IP is tantamount to whim worshipping and evasion of reality – the two most serious acts of immorality that an Objectivist could commit.

Wish to debate that? I think it would help because it would dispose of all your objections.

Reply

Bala January 15, 2010 at 9:02 pm

Mark Hubbard,

” You will agree the second instance is theft. Why is the first instance not theft? ”

Because in the first instance, you still have the e-book while in the second, you do not have the dead tree book any more. That’s the simple difference you are failing to see.

Reply

Mark Hubbard January 15, 2010 at 9:05 pm

No, what you are failing to see is that your argument is, as I have said, a sophistry. You knew from reading the conditions of my site that I expected payment for the download, then you chose to copy and not pay. You consciously chose to steal ‘a copy’ of my ebook.

Reply

Mark Hubbard January 15, 2010 at 9:06 pm

Bala wrote:

I claim to be an Objectivist too and have come to the conclusion (starting from Objectivist premises) that support for IP contradicts the basic principles of Objectivism. My conclusion is that supporting IP is tantamount to whim worshipping and evasion of reality – the two most serious acts of immorality that an Objectivist could commit.

I need a lot more detail than that: explain please.

Reply

Bala January 15, 2010 at 9:17 pm

Mark Hubbard,

Sorry if this sounds presumptuous/lazy, but I have discussed this same issue in detail with another person who (like me) claims to be an Objectivist and takes a line similar to yours. The arguments are lengthy and involve a lot of typing effort (yours and mine). So, I request you to check out this thread (specifically my discussion with MichaelM) and then start our discussion.

http://blog.mises.org/archives/011323.asp

Thanks a ton.

Reply

Mark Hubbard January 15, 2010 at 9:30 pm

Cheers Bala. That is a long thread, I probably won’t have a chance to read it until next week, though I can’t see how it could change my position – I find arguments for copying, again, to always exist on sophistry. And for those arguing it, I don’t think they have fully reasoned the implications this has for a laissez-faire market in an electronic age.

And as I said above, someone going to my site, and despite the contract I have put on my site, they copying my ebook without payment regardless: that is the immorality.

But I’ll read that thread … and will be gone for some time in the meantime.

Reply

Bala January 15, 2010 at 9:45 pm

Mark Hubbard,

” And as I said above, someone going to my site, and despite the contract I have put on my site, they copying my ebook without payment regardless: that is the immorality. ”

Actually, you should have been more careful than to put your book in that format. I don’t actually need to “break into” your site to copy it. I could buy a copy legitimately and then copy it or let it be copied. That’s the point at which your argument becomes really weak.

Reply

Mark Hubbard January 15, 2010 at 10:01 pm

Actually, you should have been more careful than to put your book in that format. I don’t actually need to “break into” your site to copy it. I could buy a copy legitimately and then copy it or let it be copied. That’s the point at which your argument becomes really weak.

No, that’s where you depart from both logic and morality, as with Russ above. You’re saying that if I put my dead tree book on the table in a cafe then I deserve to have it stolen. And that would be stupid of me, but it does not change the fact that the person who stole it is an immoral thief committing an act of theft. The act of theft is not contingent on whether I use encryption for my ebook or not.

You were right above: this issue turns on morality.

Reply

Russ January 15, 2010 at 10:02 pm

Mark Hubbard wrote:

“And that sanctions theft? What a ludicrous argument.”

And you think that copying something that someone has left out in public constitutes theft? What a ludicrous argument.

“You knew from reading the conditions of my site that I expected payment for the download, then you chose to copy and not pay. You consciously chose to steal ‘a copy’ of my ebook.”

Teeheeehee…. I didn’t know that reading a web site constituted a legally binding contract. I don’t consider a nondisclosure contract binding if it is not signed before the information not to be disclosed is transferred.

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Mark Hubbard January 15, 2010 at 10:12 pm

And you think that copying something that someone has left out in public constitutes theft? What a ludicrous argument.

Your comprehension is as loose as your morality Russ. Read what I actually said.

Reply

Russ January 15, 2010 at 10:15 pm

Mark Hubbard wrote:

“No, that’s where you depart from both logic and morality, as with Russ above.”

You’ll find I don’t suffer moralizing fools such as yourself gladly. So fuck off, you self-righteous twit.

“You’re saying that if I put my dead tree book on the table in a cafe then I deserve to have it stolen. And that would be stupid of me, but it does not change the fact that the person who stole it is an immoral thief committing an act of theft.”

When someone takes your book from a table in a cafe, that denies you the use of that book. Therefore, that is theft. When somebody copies your ebook, that does not deny you the use of your copy of the ebook. Therefore, that is not theft. Surely such an obvious point is comprehensible even by you?

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DixieFlatline January 15, 2010 at 10:17 pm

Oh look, Stranger brought his pro-monopoly, pro-ltv position to the Mises blog.

Copying no more steals value than growing my own apples steals value from an orchard down the road.

@Bala, you are the most heroic Objectivist I know, because you have the courage to work from first principles, instead of repeating the dogmatic nonsense of cult worship. Cheers.

Reply

Mark Hubbard January 15, 2010 at 11:05 pm

So fuck off, you self-righteous twit.

Yes, that’s about the level of a file sharers argument. You carry on enjoying the plundering of another’s wealth, through your initiation of force Russ. But you’ll never be able to rationalise it. I guess it’s just about fooling yourself.

Dixie: I would have assumed the first principles of the cult of Objectivism would include ‘thou shalt not steal.’ Yes? As an Objectivist I certainly would’ve hoped so.

You talk of value, yet you don’t know what that is.

Still, you’ve proven one thing, it is possible to see a vacuum: here it is:

stranger brought his pro-monopoly, pro-ltv position to the Mises blog.

Pro-monopoly to support a writers ability to live off his own efforts – yeah right. Honest traders are going to starve in your second-handers market. Don’t go thinking you’re advocating a free market, or anything so noble and good.

I don’t have the heart to stay with this thread. It’s quite sickening.

Reply

Bala January 15, 2010 at 11:33 pm

Mark Hubbard,

” You were right above: this issue turns on morality. ”

Actually, the real moral question you are evading is whether ideas and patterns (your book, e- or otherwise, falls in that category) should be treated as “property”. It is only AFTER you acknowledge that they can be treated as “property” that you can even talk of “theft” and my act of copying your book as “thieving”.

It is this fundamental point that I am trying to address – that it is IMMORAL to treat ideas and patterns as “property”.

Let’s start from Objectivist fundamentals.

1. Man is a rational animal with a volitional consciousness.

2. Life is a sequence of self-generated self-sustaining actions. The purpose of all action is life itself and its sustenance.

3. Values are that which you act to gain or keep.

4. Man’s values are not automatic unlike those of other living beings. He needs to choose his values and then act to gain or geek them.

5. Man’s epistemology is reason. He uses his powers of reason to form concepts of existence and of causality within existence. He uses these to modify his environment and thus derive the values that will advance his life.

6. Man, in order to sustain his life, needs to act. The purpose of all such action is to gain the value needed to sustain it and to keep that which he has gained.

7. Man needs to be free to act as per the judgement of his rational mind in order to choose his values as well as the means to gain/keep them. To do this, he needs that force may not be initiated against him by other men as force is that which neuters volition and renders it impossible for man to act.

8. Rights are a moral concept defining and sanctioning man’s freedom of action in a social context.

9. Rights are a recognition of a particular condition of existence essential for the survival of man qua man, i.e., as identified above.

10. The Right to Life is nothing more than a recognition of the reality that for man to be able to survive qua man, no other man may initiate force against him.

11. To sustain his life qua man, man needs to be free to apply the values he has gained in the service of his life. This is the beginning of the moral concept “property”.

12. For man to be free to act to apply the values he has acquired in the service of his life, it is necessary that others do not act in a manner that deprives him of the freedom to act thus. This is the next step in the evolution of the concepts “property” and “property rights”.

“Property” thus is the moral concept that applies to the products of value that man acquires with the aim of applying them in the service of his life. The most important aspect of the concept “property” is that the owner should be free to act to apply the objects of value in the service of his life.

There are 2 categories of objects – material existents and concepts of and related to existence. Of the two, the former is “scarce” while the latter is not. The meaning of “scarce” here is that there is only 1 of a particular existent and therefore, if one man is in possession of a material object, another cannot. Therefore, if I have acquired a material object to apply it in the service of my life, your taking it deprives me of the freedom to act to apply it thus. The recognition of this condition of existence essential for the survival of man qua man is what we call the “right to exclude” that forms an integral part of the concept “right to property”. Without exclusion, it is impossible for man to have a concept of physical “property”. Hence, it is moral to treat physical objects as “property”.

Ideas and patterns, the 2nd category of existents, however, have the peculiar nature that they can be simultaneously used by any number of people without abridging the freedom of any of them to act to instantiate them. Therefore exclusivity is NOT NECESSARY for man to be free to act on them. Hence, there is no question of treating them as “property”. Any attempt to do so would be in violation of the basic Objectivist concept of Rights itself.

At the same time, ideas by THEIR very NATURE, are not amenable to exclusivity. Once an idea/pattern is instantiated and that object is sold, the idea screams out loud for anyone at all to grasp them. All it requires is a conscious human being acting as per his nature and forming concepts of existence and of causality within existence. This involves asking simple questions like “What is this?”, “How does this work?”, “How is this better than other known arrangements?”, etc.

To still insist that we should treat ideas and patterns as though exclusivity in them were possible, you would be guilty of evading the reality that they are not amenable to exclusion and acting to enforce exclusivity would be tantamount to worshipping your whim that they should be exclusive.

To say that the owner of the object that contains the instantiation should not do this is to demand that he lives a sub-human existence. If you further demand that he should not act to instantiate the idea that he has now obtained, you are once again demanding that he cease to live as a human being, i.e., act as per the judgement of his rational mind.

That would make you a supporter of the “right to enslave”, something no Objectivist would recognise as valid under any circumstances.

Thus, IP is contradictory to Objectivism.

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Some dude January 15, 2010 at 11:47 pm

I see lots of posts here and there asserting “copying isn’t theft” and whatnot. It’s nice, but I hardly ever see anything about how an economy without IP would function. How would it function? That’s great you are sticking to your principles, but what would the pragmatic effects be? I cannot envision a scenario where much of any intellectual material would be produced unless writing books for the hell of it is someone’s hobby.

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Mark Hubbard January 16, 2010 at 12:00 am

Great post ‘some dude’: that’s the point the file stealers don’t want to deal with.

And don’t go thinking the Objectivist position is to sanction this theft: it’s not.

Bala: Actually, the real moral question you are evading is whether ideas and patterns (your book, e- or otherwise, falls in that category) should be treated as “property”. It is only AFTER you acknowledge that they can be treated as “property” that you can even talk of “theft” and my act of copying your book as “thieving”.

Yes, it does turn ultimately on this, and yes, my novel is not a damned ‘pattern’, it is property. Bloody hell.

Thus, IP is contradictory to Objectivism.

No, Objectivism is precisely against the stealing of another’s property. You advocate the initiation of force and fraud.

MichaelM’s arguments in the link you gave above would be a pretty good fit for my own, vis a vis, my novel is property. Copying is theft. He argued the point well.

I don’t consider you an Objectivist, Bala, I’m afraid you belong to that unethical street gang called file stealers, along with Russ. I despise you and your ilk: you are the barrier to the free society I wish to live in, not the harbinger of it.

And to return to ‘some dude’s’ comment, which I have also made above: your attitude on a fundamental level would knock the feet out from under a laissez-faire market. Mises would be turning in his grave.

I’m not impressed.

Reply

newson January 16, 2010 at 1:01 am

to some dude:
go read the classics. all of the marvels of ancient literature; now how is it possible that these arose in the absense of ip legislation?

to mark hubbard:
citing the ten commandments is a bit rich. i don’t recall jesus ever fighting to preserve monopolies, even it meant settling for the “low” art you seem to despise. and i guess you’ve never picked up a coin in the street without thinking of yourself a thief.

Reply

AR January 16, 2010 at 1:41 am

Why do you all seem to assume that the amount of art being produced under a pro-IP regime is the ideal amount? Obviously granting special legal privileges to something will promote its production; how do you know that the market is not being lead to an irrationally high level of art production by the privileges of IP law?

In any case, if people start distributing your novel themselves, the only way to argue that you have suffered damages as a result would be to say that you were entitled to have people buy your book, which is absurd, and if there are no damages, there is no crime.

Just having labored at something doesn’t give you any right to anything except the product of the labor itself, which would be the original manuscript, not any subsequent copies others might produce with their own property. You cries of “theft” seem motivated mostly by having invested so much into something for which there is no solid business model without government intervention, like so many other would-be monopolists.

Reply

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“Reducing the Cost of IP Law,” Mises Daily (2010)

Related:

“Reducing the Cost of IP Law,” Mises Daily (Jan. 20, 2010) and Tabarrok’s Launching the Innovation Renaissance: Statism, not renaissance

Archived comments here, here, here, here, and reproduced below.

Reducing the Cost of IP Law

Mises DailyStephan Kinsella

[This paper is the conclusion of a two-part series. The first article was “Radical Patent Reform Is Not on the Way.”]

Anti-Eating Mouth Cage US Patent Issued in 1982

As I noted in Part 1, there is a growing clamor for reform of patent (and copyright) law, due to the increasingly obvious injustices resulting from these intellectual property (IP) laws.1  However, the various recent proposals for reform merely tinker with details and leave the essential features of the patent system intact. Patent scope, terms, and penalties would still be essentially the same.

How should the IP system be reformed? For those with a principled, libertarian view of property rights, it is obvious that patent and copyright laws are unjust and should be completely abolished.2  Total abolition is, however, exceedingly unlikely at present. Further, most people favor IP for less principled, utilitarian reasons. They take a wealth-maximization approach to policy making. They favor patent and copyright law because they believe that it generates net wealth — that the value of the innovation stimulated by IP law is significantly greater than the costs of these laws.3

What is striking is that this myth is widely believed even though the IP proponents can adduce no evidence in favor of this hypothesis. There are literally no studies clearly showing any net gains from IP.4  If anything, it appears that the patent system, for example, imposes a gigantic net cost on the economy (approximately $31 billion a year, in my estimate).5  In any case, even those who support IP on cost-benefit grounds have to acknowledge the costs of the system, and they should not oppose changes to IP law that significantly reduce these costs, so long as the change does not drastically reduce the innovation gains that IP purportedly stimulates. In other words, according to the reasoning of IP advocates, if weakening patent strength reduces costs more than it reduces gains, this results in a net gain.

In this paper I attempt to identify the most important changes that should be made to IP law to reduce its most egregious and significant costs, while not gutting its alleged innovation-stimulating effects. Keep in mind, however, that even the advocates of IP cannot show what its costs or alleged gains are; they provide no quantitative evidence but only intuition and qualitative reasoning. Thus, they cannot object if my suggestions also rely on common sense and extensive experience with the working of the existing IP system.

Moreover, given that virtually all empirical studies in this regard conclude that IP is either neutral or a net cost, the burden of proof should be on the IP advocate to show that a proposed change that clearly and significantly reduces costs should not be made. I will focus primarily on patent law, and also conclude more briefly with some proposed improvements to copyright and federal trademark law.

Costs and Benefits of IP Law

As noted above, the utilitarian or wealth-maximization arguments in favor of patent rights claim that a patent system is desirable because it does more good than harm — that it generates more wealth than it costs. The “wealth” purportedly generated is a result of the patent monopoly6  providing an incentive to innovate, and to disseminate knowledge that would otherwise be kept secret.

The idea is that, instead of keeping an invention as a trade secret, the inventor, in exchange for the limited monopoly on the invention, makes the information about it public in a published patent that others can learn from, even if they can’t yet use the patented device or process. And the promise of monopoly profits, or the reduction of free-rider effects, can incentivize innovation at the margins.7

But benefits are not enough. The standard argument for patents is that the system leads to a net benefit — that the benefits exceed the costs. While IP proponents may dispute the claim that a patent system produces no overall, unambiguous benefits to offset its costs (discussed further below), it cannot be denied that there are significant costs.

Note also that both costs and purported benefits are related to the “strength” of patent rights: the length of the patent term, the extent and type of penalties imposed on infringers, and the scope of patent rights. Stronger patents, according to the standard argument, will produce greater incentives to generate even more innovation-related wealth, but at increased cost. Conversely, weaker patents would impose fewer costs but would provide smaller incentives to disclose and innovate.

Patent proponents must, if only grudgingly, concede that diminishing returns are achieved at a certain point — that the “net” wealth produced by the patent system decreases as the marginal increase in costs exceeds the marginal increase in alleged benefits. Patent advocates, for example, do not advocate quintuple damages instead of treble damages, or capital punishment for willful infringement, or making the patent term 1,000 years, or increasing patent scope to include algorithms and abstract scientific discoveries. They implicitly believe that strengthening the patent system in this way would cost more than would be gained.

And yet patent advocates also resist reductions in patent strength, even though it is possible that the costs could fall more dramatically than the alleged benefits. Or, as one economist puts it, that we are “on the wrong side of the Laffer curve for innovation.”8

The costs of the patent system are widespread. Ridiculous patents are issued or filed and companies are enjoined from selling their products. Judgments are issued and settlements reached for billions of dollars.9

Untold hundreds of millions of dollars are spent annually on patent programs, largely for defensive purposes — to dissuade competitors from bringing a patent infringement lawsuit for fear of being hit with a similar counterclaim. Often, dominant competitors sue each other, and then back down, settling with a huge cross-license to each other’s patent portfolios. This gives them freedom to operate, but the threat to the smaller players remains.

Once again, as in the case of minimum-wage, social-security, and prounion laws, federal legislation works in favor of big business,10  and small companies or independent inventors are left out in the cold at the mercy of million-dollar patent suits filed by the business oligarchs. Or after one company prevails in a patent suit against a competitor, the wounded victim succumbs and is absorbed by the victor.11  Would that these millions of dollars could have been spent on salaries, R&D, equipment, or other capital investments instead, or simply been returned to shareholders in the form of dividends.

The possibility of being shut down by a competitor is a perennial threat to businesses, especially small companies, who cannot afford to spend millions of dollars defending a patent suit. High-tech startups are even more vulnerable: they often have very low cash or profits, making them even less able to defend a patent lawsuit; and because they use newer technology, they are also more likely to infringe patents. It is virtually impossible to be aware of all the patents that are out there, or that are about to emerge, or that have just been filed (and that are secret for 18 months after filing).

And even if one could identify all of the pertinent patents, there can be literally thousands of patent claims (the several defined inventions set forth in each patent that define the “metes and bounds” of protection granted by the patent) that could be a potential problem, and no definitive interpretation of any of them. Most claims have not been parsed by a court, and many are intentionally obscure or vague, having been drafted by highly skilled, crafty patent attorneys taking maximum advantage of ever-shifting, complex and arcane rules,12  and having been approved by understaffed government patent examiners unable to find all the relevant prior art.

And so companies do what they can but, in the end, they often just forge ahead, risking a patent suit (after all, a patent infringement lawsuit is not the only risk that entrepreneurs face), hoping not to be noticed, or hoping to be successful enough to accumulate the war chest needed to fight a patent suit or to have acquired enough of a patent arsenal to fight back or ward off such an attack in the first place. In some cases, no doubt, the nascent business is never formed; the would-be entrepreneur, sensing a dangerous patent thicket, steers clear of a given technology or business — thus leaving it to the techno-oligarchs (unseen costs are still costs, as Bastiat observed).13  Or a given company sticks to its current lines of business, afraid to venture into a heavily patented area. And so on. So much for innovation or entrepreneurial risk.

So the costs of the patent system are obvious and huge, if not easily quantifiable. Patent proponents themselves have no idea what the exact costs, or purported benefits, of the patent system are; they have no idea what the net benefit of the patent system is, or whether there even is a net benefit. We can identify some of the costs, but not all of them. It is, in any event, certain that there are tremendous costs to individuals, businesses, and the economy in general.14  As noted by Dell Inc., et al., in their amicus curiae brief to the Supreme Court in the Quanta Computer v. LG Electronics case,

[Patent] rights are intended to encourage innovation but come at a significant cost to other market participants and are “restrictive of a free economy” (United States v. Masonite Corp.… (1942)). Indeed, this Court recently recognized that when patent rights are not appropriately defined, “patents might stifle, rather than promote, the progress of useful arts.” KSR Int’l Co. v. Teleflex Inc.… (2007). [emphasis added]

And as pointed out by Allison et al.,

Inventors come up with a new idea, hire a lawyer, write a patent application, spend years in the arcane and labyrinthine procedures of the U.S. Patent and Trademark Office (PTO), get a patent, and then … nothing. Ninety-nine percent of patent owners never even bother to file suit to enforce their rights. They spend $4.33 billion per year to obtain patents, but no one seems to know exactly what happens to most of them. Call it “The Case of the Disappearing Patents.”15

One study suggests that American companies spend $11.4 billion a year on software patent litigation;16  another conservatively estimates that “the economic losses resulting from the grant of substandard patents can reach $21 billion per year by deterring valid research with an additional deadweight loss from litigation and administrative costs of $4.5 billion annually.”17  I have estimated the net cost of the American patent system to be at least $31 billion annually.18

Other costs include

  • “In Terrorem Effects” (deterring potential competitors or follow-on innovators from entering a field by the existence of patents owned by their competitors)
  • “Holdup Licensing” (patent owners might try to game the system by seeking to license even clearly bad patents for royalty payments small enough that licensees decide it is not worth going to court, likely costing in the hundreds of millions of dollars)
  • “Facilitating Collusion” (licensees might agree to pay royalties on patents they know are invalid as part of a scheme to cartelize an industry)19
  • Causing consumers to absorb monopoly prices over “inventions” that were already effectively common knowledge
  • Directing resources away from productive research and instead toward strategic accumulation of patents already filed over innovations already deployed
  • Diverting resources to “defensive patenting” or securing offensive “blocking patents”
  • Directing research away from areas of existing patents that should not have been granted
  • Directing resources toward acquiring and enforcing substandard patents and collecting royalties rather than other, more-productive fields of economic activity.20

Some argue that the patent system actually reduces net innovation — that the costs of the patent system are not only greater than its benefits, but that the patent system imposes costs and also reduces innovation.21  In other words, it is not only that the patent system imposes billions of dollars in costs, and that it is uncertain whether the extra innovation stimulated is worth more than this cost; it also seems likely that the patent system actually stifles and impedes innovation, adding injury to injury.

And this is just a smattering of the possible harms and costs of the patent system. If patent rights can be adjusted to significantly reduce these costs, without obviously reducing the benefits by a greater amount, then even utilitarian patent proponents should favor this change — unless they can demonstrate otherwise with sound reasoning or empirical data.

“Who can deny that, given the existing system, patent attorneys perform a valuable service? If we someday develop a cure for cancer, there will be no cancer doctors; this does not mean cancer specialists are not needed now, so long as there is cancer.”

Most natural-rights patent advocates, such as Ayn Rand, also oppose patent rights of infinite duration or scope. They do not believe patents should last forever, or that capital punishment should be imposed for infringement, for example. Instead, they favor some finite duration and scope for patent rights — 17 or so years of enforceability, and so on. Now, if these limits are arbitrary, the “principled” patent proponent has little basis to oppose moving patent boundaries in one direction or the other — a 12- or 28-year patent term is just as good (and as arbitrary) as a 17-year term.22  What inevitably happens is that the deontological or principled proponent of patent rights resorts to utilitarian standards to argue for drawing the line here as oppose to there. They, too, therefore, have no principled opposition to changes that significantly reduce the patent system’s costs.

As for patent skeptics and opponents, they, too, will endorse changes to the patent system that unambiguously reduce its costs. My proposals should find favor in the eyes of those who would like to abolish patents altogether. Someone who wants the patent term reduced from seventeen to zero years will be in favor of reducing the term to twelve years, for example. The proposals herein are thus analogous to arguing for a lower tax rate, no matter what type of tax is in place — as opposed to proposing tinkering with the tax system to make it more “fair” or efficient.23

So, it is uncontroversial that patents should not be “too easy” to get, nor should they be “too strong.” Even the Supreme Court, over a century ago, acknowledged that if patent monopolies are granted “for every trifling device, every shadow of a shade of an idea, which would naturally and spontaneously occur to any skilled mechanic or operator in the ordinary progress of manufactures,” then

such an indiscriminate creation of exclusive privileges tends rather to obstruct than to stimulate invention. It creates a class of speculative schemers who make it their business to watch the advancing wave of improvement, and gather its foam in the form of patented monopolies, which enable them to lay a heavy tax upon the industry of the country, without contributing anything to the real advancement of the arts. It embarrasses the honest pursuit of business with fears and apprehensions of concealed liens and unknown liabilities lawsuits and vexatious accountings for profits made in good faith.24

In other words, it’s a good thing if patent applicants face a high hurdle; if it’s difficult to obtain a patent, fewer patents on “trifling devices” will be granted.

The Silent Bar

Some patent attorneys balk at such critiques of the patent system. They take it personally, as if their career choice is under attack. But they should not. Who can deny that, given the existing system, patent attorneys perform a valuable service?25  By analogy, in a just society there would be no taxation, and thus no need for tax attorneys. But given the existence of taxation, tax attorneys provide a valuable service to there clients. If we someday develop a cure for cancer, there will be no cancer doctors; this does not mean cancer specialists are not needed now, so long as there is cancer. Nor are tax attorneys and oncologists expected to favor taxes or cancer.

Why, then, should patent attorneys be required to favor the current patent system as a policy matter, just because they are navigating the existing rules on behalf of their clients?26  The problem is not what patent attorneys do; it’s what they favor. Similarly, the problem with a protax tax attorney is not that he defends people from the IRS; it’s that he advocates a tax system. And everyone would object to a cancer doctor working to cause more people to have cancer.

And are my cynical views about patents really that isolated among the patent bar? Sure, most patent lawyers give lip service to the idea that patents are “necessary” to “promote innovation.” Yet almost none, in my experience, give any serious thought to this. Most, if they have any opinion at all, simply repeat the bromides they hear in law school and that courts and law professors repeat ad nauseum as if they are obvious, undisputed truths. Virtually all of them have been pickled in the wealth-maximization, law-and-economics ideas rife in law school. So they have a vague notion that the patent system is good because it encourages innovation. And innovation is a good thing, right? It adds value to the economy and improves our lives. Ceteris paribus, of course.

And there’s the rub — the ceteris paribus “gotcha.” Rarely do any patent advocates bother to ask whether the patent system’s costs are greater than its alleged benefits.27

Talk to a typical patent practitioner: he will almost unfailingly state his support for the patent system and “the inventor.” Innovation is good, he’ll say; so of course it should be protected, encouraged, and stimulated. But drill a bit deeper, ask him if he has any reasons for this other than what he has heard others say, and he’ll usually cave in, or change the subject. You quickly realize most of them just do not care. (It’s sort of like asking a public-school teacher why she favors public education. She claims to be in favor of it, but is not interested in coming up with a non-self-serving justification for it.)

For this reason, perhaps, almost none of them are even aware that no one seems to have ever established that the purported benefits of patents are greater than their costs. They do not know that whenever any attempt is made to estimate the costs of the patent system and to compare them to its benefits, the study is either inconclusive or concludes that the patent system is a net loss to the economy.28  They will reflexively repeat the standard propatent mantra if asked, but they really don’t care, or know, whether these purported justifications make any sense.

In a way, it is refreshing that patent attorneys do not care whether the patent system is really justifiable. Tax attorneys defend victims of a rapacious state without necessarily defending taxes — or even having an opinion about it. If you hire a tax attorney, you want an effective one, not one who has the right policy views.

Likewise with patent attorneys. They are a conservative lot — most are engineers in a former life — and don’t want to rock the boat. They don’t need to come out with a sophisticated stance on patent policy in order to represent clients. They don’t need to point out that the emperor has no clothes, or even figure this out in the first place. And clients really don’t care about this any more than they care whether their advocates read comics in private or what church they attend. It’s just not relevant.

Nevertheless, my experience would indicate that the propatent stance of the patent bar is not as uniform as surface appearances might indicate. To be sure, there are the expected, official, propatent comments by the “respectable,” establishment IP advocacy groups — the ABA, the AIPLA, Intellectual Property Owners Association, the various “IPLAs” — PIPLA, HIPLA, NYIPLA — and so on.

But if you press your average practitioner when the senior partner’s not listening, it’s not hard to get him to admit he’s just doing what he has to do to pay the mortgage. He doesn’t care about the system’s “legitimacy,” and doesn’t pretend to know much about it either, other than genuflecting when the IP priests tell him to. In fact, many display a refreshingly self-honest cynicism in this regard. It’s the kind of thing that many in the profession know but can’t say too loudly in polite company.

Take, for example, the results of this informal web poll I conducted a while back. The poll was circulated among both patent attorneys and libertarians (and others, such as Digg readers), in which 84 percent of respondents (at this writing) answered “Yes” to the question “Would you give up your right to sue others for patent infringement in exchange for immunity from all patent lawsuits?”

And consider the offhand comment in which a patent attorney admits, “Patents are intended to lure potential inventors into the business of innovation. The truth is, however, that very little is known about how patents really drive innovation.” Consider also a poignantly honest admission that was made by a patent attorney in an email to me in response to a letter in the trade magazine, IP Today.29 I had critiqued patent litigator Joseph Hosteny‘s defense of patent trolls — in particular his comment that “the patent system is necessary for there to be invention and innovation.” I had written,

There is … no conclusive evidence showing that the purported benefits of the patent system — extra innovation induced by the potential to profit from a patent; earlier-than-otherwise public disclosure of innovation — exceeds the significant and undeniable costs of the patent system.… Is the patent system “worth it”? Who knows? Apparently no one does. It seems to follow that we patent attorneys ought not pretend that we do.

In response I received an interesting email from a respected patent attorney, a senior partner in the IP department of a major national law firm who shall remain anonymous:

Stephan, Your letter responding to Joe Hosteny’s comments on Patent Trolls nicely states what I came to realize several years ago, namely, it is unclear that the U.S. Patent System, as currently implemented, necessarily benefits society as a whole. Certainly, it has benefited [Hosteny] and his [partners] and several of their prominent clients, and has put Marshall, Texas on the map; but you really have to wonder if the “tax” placed on industry by the System … is really worth it.30

It is my belief that there is at least tacit recognition by a nontrivial segment of the patent bar that they are participating in a scheme where wealth is transferred from “infringers” to “patentees,” with the patent practitioners extracting a healthy handling fee. They have no idea whether this system is “good for” the economy or society as a whole, nor do they care, despite giving lip service to the propatent yada yada.

This does not imply that companies can afford not to fight within the rules of the current system. They have to acquire patents if only for defensive reasons: to ward off patent infringement suits from competitors.

But the question at hand is what kind of changes ought to be made to improve the situation. Anything that can reduce the risks and costs faced by entrepreneurs and businesses ought to be given serious consideration. Most of all, market actors need freedom to operate — freedom to engage in business without fear of competitors using the power of the state to hobble them or shut them down.

Typical Proposals for Reform

Before laying out my own proposed changes, it is illuminating to note the reform proposals typically advanced. For example, James Bessen and Michael J. Meurer, in their book Patent Failure: How Judges, Bureaucrats, and Lawyers Put Innovators at Risk (Princeton, 2008), propose the following:

  • “Make patent claims transparent.”
  • “Make claims clear and unambiguous by enforcing strong limits against vague or overly abstract claims.”
  • “Make patent search feasible by reducing the flood of patents.”
  • “Besides improving notice, we also favor reforms to mitigate the harm caused by poor notice. These include an exemption from penalties when the infringing technology was independently invented and changes in patent remedies that might discourage opportunistic lawsuits.”

The group Public Knowledge proposes the following reforms to improve patent law and the patent-litigation process:

  • Raising the standard from determination of obviousness from the person having “ordinary skill” in the art to a person having “recognized skill” in the art.
  • Peer review of patent applications.
  • Permitting third parties to submit prior art, and rewarding them with fee reimbursement if successful.
  • Permitting post-grant review of patents by the USPTO prior to litigation.…
  • Removing the presumption of validity that issued patents enjoy.
  • Apportioning damages to be proportional to the value of the patent.
  • Allowing circuit courts other than the Federal Circuit to hear patent appeals.
  • Limiting litigation venues to those jurisdictions with a meaningful connection to one of the litigants.

Other proposals for reform abound.31

While some of these ideas would no doubt improve matters, most of them are at best minor, mere tinkering with the system. Making patent claims more “transparent” is a technical, elusive goal that still will not reduce the term or scope of patents, or the penalties imposed for infringement, for example. Of these suggestions, providing an independent inventor defense is best.

Proposed Improvements to Patent Law

Below are suggested reforms to the existing patent system that would, in my view, significantly reduce the costs and harm imposed by the patent system while not appreciably, or as significantly, reducing the innovation incentives and other purported benefits of the patent system. The changes proposed below are changes I believe would benefit high-tech companies as well as other companies that do not develop a great deal of patentable technology. I list these changes in generally descending order of importance.

Reduce the Patent Term

Companies face an immense patent thicket. In part this is due to the approximately 17-year patent term. It is not uncommon to come across patents issued 10 or 15 years earlier that pose a threat to one’s business. Many of these patents should not have been issued. Appeals for “improving patent quality” are likely to be futile or of minimal effect, as are the calls for improving government “efficiency” by presidential candidates every four years.

“This does not imply that companies can afford not to fight within the rules of the current system. They have to acquire patents if only for defensive reasons. But the question at hand is what kind of changes ought to be made to improve the situation.”

The patent term should be reduced to 5 or 7 years (from approximately 17–18 years now). (Amazon CEO Jeff Bezos actually proposes a 3–5 year term for business method and software patents.)32 Such a reduction would eliminate a huge portion of the patent threat that entrepreneurs and companies face, drastically reducing the costs borne by companies. There would be fewer lawsuits and fewer threats, lower insurance premiums, and reduced patent license fees and royalties. (Note: it is true that products such as pharmaceuticals and medical devices may be delayed for years by the FDA approval process. However, at least some of the time lost can be added to the patent term, so that such products would still have a patent coverage period once the product receives regulatory approval.)

Yet there would still be an incentive to file patent applications to obtain a 5–7 year monopoly on one’s idea. Would the incentive be reduced somewhat? Probably. But there is no reason to think the incentive would be drastically reduced, or that we would lose more marginal innovation and disclosure than would be saved.

Another twist would be to have a sliding scale, with longer terms granted for different types of subject matter (e.g., business methods, software, and pharmaceuticals). Such an approach would, obviously, be more complex and probably hopelessly unworkable. (See also the discussion of a petty patent system, below.)

Remove Patent Injunctions/Provide Compulsory Royalties

Paying royalties is one thing. This is similar to a tax. It impedes and puts a drag on efficiency. Worse still is the prospect of an injunction, which can simply shut a company down. Quite often this is what a competitor will seek. They do not want damages or money: they want to dominate the market and eliminate competition. Or the threat of injunction is used to basically wring money from an alleged infringer (e.g., the $600 million RIM (BlackBerry) had to pay, even though the patents were under appeal at the PTO, due to the threat of an injunction).

If the purpose of the patent system is to provide some incentive to innovators, then receiving a monetary payment should be sufficient. Patent injunctions should be abolished entirely. The only remedy should be an award of damages (for past infringement) or a compulsory license (ongoing royalties based on future “infringement”).

This would prevent patentees from shutting down competitors. At most, they could impose a small “tax.” Litigation costs, insurance premiums, and the ability of patentees to extract unreasonable royalties from alleged infringers would be radically curtailed. On the other hand, because patentees would still be able to seek reasonable royalties, there would still remain a substantial incentive to file for patents.

The compulsory licensing approach is not new. Some countries impose compulsory licensing on patentees who do not adequately “work” the patent.33 The United States already provides for compulsory licensing in certain cases, as the US government threatened to do in the Cipro anthrax drug case.34 Also, in the wake of the recent eBay case, some courts are awarding some form of ongoing royalty of compulsory license instead of an injunction. 35

Royalty Cap/Safe Harbor

A variation of this approach would be to set a cap on the total amount of royalties that any one company would have to pay for compulsory patent royalties (at least, for a given product) — for example, 5 percent. Thus, if one is sued by 3 different patentees, at most he has to pay 5 percent royalties on sales. If too many patent vultures hound an innocent businessman, he could simply throw his hands up, deposit his 5 percent royalty with some escrow agent and let them fight it out.

Update: Limit patent owners to suing only one victim

From Dave Jones, Executive Director of the High Tech Inventors Alliance: (( Industry Opposition to Patent Challenges. ))

So, tell you what, Brian, I’ll trade you one and done on the IPR side for one and done on the litigation side. Patent owners can only bring one case, preferably just against one defendant and then they’re done forever. And they can’t sue anybody. And then we can have one and done on the IPR side. I’d be happy to make that deal.

Reduce the Scope of Patentable Subject Matter

Currently, patents can be obtained for a wide array of inventions: pharmaceuticals, and any type of “useful” apparatus or method, including software and business methods. This is due to the broad wording of Section 101 of the US Patent Act,Download PDFwhich has been construed to mean that the “statutory subject matter” includes “anything under the sun that is made by man.”

Copyright already covers software. It should be excluded from the scope of patentable subject matter. Ditto “business methods.” (Business and software patents are relatively new anyway, so that excluding them from the scope of patentable subject matter is only rolling the clock back a decade or two.) In fact, the example most often given to show that patents are needed is pharmaceuticals. So, let’s eliminate patents for everything except pharmaceutical compounds — and reduce the term to 3–5 years. For a spoonful of sugar to help the medicine go down, the FDA should be abolished, and federal and state taxes and regulations eased.36

Provide for Prior-Use and Independent-Inventor Defenses

Under copyright law, someone who independently creates an original work similar to another author’s original work is not liable for copyright infringement, since the independent creation is not a reproduction of the other author’s work. Thus, as a defense a copyright defendant can try to show he never had access to the other’s work.

Patents, however, are different. As long as someone is an actual inventor of an invention (he did not learn about it from someone else), and the invention was not publicly known, he can obtain a patent for it. Someone who previously invented the same thing and is using the idea in secret can actually be liable for infringing the patent granted to the second inventor. Also, if a later person independently invents the same idea that was previously patented by another, this is also no defense. Prior use, or independent invention, is not a general defense. There is currently only a very limited “prior user” right (or “first inventor defense”), available to those who commercially used a “business method” before someone else patented it. 37

A defense should be provided for those who are prior users of, or who independently invent, an invention patented by someone else. This would greatly reduce the cost of the patent system since one difficulty faced by companies is that they do not know what patents they might infringe. If someone learns of an invention from another’s patent, at least they are aware of the risk and can possibly approach the patentee for a license.

But quite often a company independently comes up with various designs and processes while developing a product, which designs and processes had been previously patented by someone else. If the goal of patent law is to reward invention, it should be sufficient to permit patentees to sue people who actually learned of the idea from the patent — just as copyright infringement exists when someone reproduced another’s work but not when it is independently created.

One patent-reform bill originally proposed to broaden the existing prior-user defense by eliminating the business-method patent limitation so that users of all types of inventions would have been able to use the defense, but this was removed from later versions of the bill. A broad prior-user defense should be established, as well as an independent-inventor defense that even a later inventor could use. 38

Instantly Publish All Patent Applications

Until 1999, patent applications remained secret until they issued. Thus arose the problem of “submarine patents“: patents could remain pending in secret for decades — after industry had independently invented and widely adopted the technology — and then “emerge” like a submarine and extract heavy royalties from many companies. The 1995 amendments to patent law changed the patent term from 17 years from date issuance, to 20 years from the date of filing, to reduce this problem. And starting in 1999, US patent applications are now made public 18 months after filing, unless the applicant requests nonpublication and promises not to file the patent internationally.

Part of the “patent bargain” is that the state grants a limited monopoly to inventors in exchange for public disclosure of the invention. This is why patents are published. The publication of (most) patent applications at 18 months was an improvement, but should be changed to mandatory, instant publishing of all patent applications (with perhaps a minor delay for any national-security or foreign-filing-license clearance). This would help potential patent defendants by giving them more opportunity to be aware of potential patent threats a year and a half earlier. Patent applicants have to reveal their secrets at 18 months anyway, and are the ones requesting a state monopoly to use to sue people, so they have no grounds to complain about having to give a bit more fair notice to their potential victims.

Eliminate or Restrict Enhanced Damages

Under current law, if the patentee can prove the infringer “willfully” infringed, up to treble damages can be obtained. This is punitive. The patentee ought to be able to recover only actual damages, not three times that amount.39

Working/Reduction to Practice Requirement

Under current law, there is no requirement that an invention be actually reduced to practice before a patent is granted on it, or that it be “worked” after grant to maintain the patent in force. When a patent application is filed, this is considered to be a “constructive reduction to practice.” It would make it more difficult to obtain frivolous patents if the inventor had to make an actual, working model of the invention — and if the patented invention had to be actually worked or used by the patentee to stay in force.1

Provide for Advisory Opinion Panels

Under our current patent system, if a company becomes aware of patent that might be a problem, or is accused of infringing the patent, the company has only limited choices. It can ignore it, risking possible treble damages for willful infringement; it can try to negotiate a possibly expensive license, even though the patent’s claims may be ambiguous or its validity doubtful; or it can pay $30,000 or more for a patent opinion that may not do much good anyway.

A cheaper, more streamlined option ought to be introduced to permit a more authoritative opinion to be obtained that helps nail down the scope of the patent’s claims and whether or not the patent is valid. The UK introduced such a service a couple of years ago. Variations of this approach could be employed; as noted above, Public Knowledge proposes “peer review of patent applications,” “permitting third parties to submit prior art, and rewarding them with fee reimbursement if successful,” and “permitting post-grant review of patents by the USPTO prior to litigation.”

Losing Patentee Pays

In the US system, a victorious defendant in a patent-infringement lawsuit usually still pays for his legal defense, which may run in the millions of dollars. The system should be changed so that a patentee who loses an infringement suit must pay the defendant’s legal and other costs. The IPO recently proposed a loser-pays approach, but in my view, the defendant should never have to pay the fees of the patentee, since the defendant did not instigate the suit.

Expand Right to Seek Declaratory Judgments

Under current law, someone threatened with a patent lawsuit can bring a declaratory judgment (DJ) action to have a court decide the issue. The MedImmune decision made it easier for licensees to use a DJ action to challenge the validity of patents they had previously licensed. The Declaratory Judgment Act should be expanded to make it easier for potential infringers to bring an action against a patentee if there is any doubt by the potential infringer.

For example, if A is worried about violating B’s patent, A could request B to provide a written exoneration statement that it does not intend to sue A or request a license for a given product. If B does this, B is estopped from ever suing A for patent infringement with respect to that product. If B refuses to provide the statement within 30 days, then A has a right to seek a DJ. Better yet — A provides B a description of its product and demands an exoneration statement; if B does not provide one, it releases its right to sue A. This would give B 30 days to decide whether to admit to A that it intends to sue. If B makes this admission, this triggers A’s right to seek a DJ.

Exclude IP from Trade Negotiations

The United States routinely uses its international heft to coerce other states into adopting more draconian IP laws. This increases costs internationally for American and other companies.40

Other Changes

There are a host of changes that have been proposed. These include changing from a first-to-file to a first-to-invent system; reducing the scope of patent claims; 41 increasing PTO funding to “improve” the examination process; refining the criteria for injunctions to be granted; permitting postgrant challenge of patents or submission of prior art by third parties; implementing a “peer-to-patent” review system; and establishing a federal office to review PTO actions.42 Some have suggested adopting a utility model or “petty patent” system, in which patent applications are examined only minimally and receive narrower protection; this type of IP right is already available in some countries. 43 Many of these proposals are aimed at “improving patent quality” or other dubious goals. These changes are, by and large, of either doubtful or trivial value.

Nevertheless, some fairly minor or technical, but largely positive, changes could also be made, which I list only briefly here:

  • Increase the threshold for obtaining a patent 44
  • Increase patent filing fees to make it more difficult to obtain a patent
  • Make it easier to challenge a patent’s validity at all stages
  • Require patent applicants to specify exactly what part of their claimed invention is new and what part is “old” (e.g., by the use of European-style “characterized in that “claims)
  • Require patent applicants to do a search and provide an analysis showing why their claimed invention is new and nonobvious (patent attorneys really hate this one)
  • Limit the number of claims
  • Limit the number of continuation applications
  • Remove the presumption of validity that issued patents enjoy
  • Apportion damages to be proportional to the value of the patent

Copyright and Trademark

Of course, patent law is not the only area of IP law that could stand improvement. Examples of copyright45 and trademark46 abuse also abound. I will not discuss these matters in depth here, other than to briefly suggest a few proposals for reform.

Copyright

  • Radically reduce the term, from life plus 70 years to, say, 10 years
  • Remove software from copyright coverage (it’s functional, not expressive)
  • Require active registration and periodic re-registration (for a modest fee) and copyright notice to maintain copyright (today it is automatic, and it is often impossible to determine, much less locate, the owner), or otherwise make it easier to use “orphaned works“47
  • Provide an easy way to dedicate works to the public domain — to abandon the copyright the state grants authors48
  • Eliminate manifestly unjust provisions of the Digital Millennium Copyright Act (DMCA), such as its criminalization of technology that can be used to circumvent digital protection systems
  • Expand the “fair use“ defense and clarify it to remove ambiguity49
  • Provide that incidental use (e.g., buildings or sculptures appearing in the background of films) is fair use
  • Reduce statutory damages50

Trademark

  • Raise the bar for proving “consumer confusion”
  • Abolish “antidilution” protection
  • In fact, abolish the entire federal trademark law, as it is unconstitutional (the Constitution authorizes Congress to enact copyright and patent laws, but not trademark law)

* * * * *

This paper is the conclusion of a two-part series. The first article was “Radical Patent Reform Is Not on the Way.”

  • 1Kinsella, Radical Patent Reform Is Not on the Way, Mises Daily (Oct. 1, 2009).
  • 2See Kinsella, The Case Against IP: A Concise Guide, Mises Daily (Sept. 4, 2009).
  • 3Kinsella, There’s No Such Thing As a Free Patent, Mises Daily (Mar. 7, 2005).
  • 4Kinsella, Yet Another Study Finds Patents Do Not Encourage Innovation, Mises Blog (July 2, 2009).
  • 5Kinsella, What Are the Costs of the Patent System?Mises Blog (Sep. 27, 2007).
  • 6See Kinsella, Are Patents “Monopolies”?Mises Blog (July 13, 2009).
  • 7See Kinsella, There’s No Such Thing as a Free Patent; Corinne Langinier & GianCarlo Moschini, “The Economics of Patents: An Overview,” Working Paper 02-WP 293, Center for Agricultural and Rural Development, Iowa State University (2002) (discussing benefits and costs of patents, including “patents can promote new discoveries” and “patents can help the dissemination of knowledge”).
  • 8See Kinsella, “Libertarian Favors $80 Billion Annual Tax-Funded ‘Medical Innovation Prize Fund’” Mises Blog (Aug. 12, 2008). [What’s Worse: $80 Billion or $30 Million?; $30 Billion Taxfunded Innovation Contracts: The “Progressive-Libertarian” Solution]
  • 9See “Appendix: Examples of Outrageous Patents and Judgments,” in Kinsella, Radical Patent Reform Is Not on the Way.
  • 10For a recent example, UPS is currently lobbying Congress to enact legislation that would redefine its rival, FedEx, as a trucking company rather than the airline it started out as in an attempt to make it easier for the Teamsters union to unionize FedEx drivers and raise their wage rates—and of course FedEx’s cost structure. See Del Quentin Wilber & Jeffrey H. Birnbaum, Taking the Hill By Air and Ground: Shift in Congress Favors Labor, UPS Over FedEx, Washington Post (September 14, 2007). See also Murray N. Rothbard, Origins of the Welfare State in America, Mises.org (1996) (”Big businesses, who were already voluntarily providing costly old-age pensions to their employees, could use the federal government to force their small-business competitors into paying for similar, costly, programs…. [T]he legislation deliberately penalizes the lower cost, ‘unprogressive,’ employer, and cripples him by artificially raising his costs compared to the larger employer.… It is no wonder, then, that the bigger businesses almost all backed the Social Security scheme to the hilt, while it was attacked by such associations of small business as the National Metal Trades Association, the Illinois Manufacturing Association, and the National Association of Manufacturers. By 1939, only 17 percent of American businesses favored repeal of the Social Security Act, while not one big business firm supported repeal.… Big business, indeed, collaborated enthusiastically with social security.”); Llewellyn H. Rockwell, Jr., “The Economics Of Discrimination,” in Speaking of Liberty (2003), at 99 (”One way the ADA [Americans with Disabilities Act] is enforced is through the use of government and private ‘testers.’ These actors, who will want to find all the “discrimination” they can, terrify small businesses. The smaller the business, the more ADA hurts. That’s partly why big business supported it. How nice to have the government clobber your up-and-coming competition.”); Rothbard, For A New Liberty (2002), pp. 316 et seq.; Rothbard, The Betrayal of the American Right, 185-86 (2007) (”This is the general view on the Right; in the remarkable phrase of Ayn Rand, Big Business is ‘America’s most persecuted minority.’ Persecuted minority, indeed! To be sure, there were charges aplenty against Big Business and its intimate connections with Big Government in the old McCormick Chicago Tribune and especially in the writings of Albert Jay Nock; but it took the Williams-Kolko analysis, and particularly the detailed investigation by Kolko, to portray the true anatomy and physiology of the America scene. As Kolko pointed out, all the various measures of federal regulation and welfare statism, beginning in the Progressive period, that Left and Right alike have always believed to be a mass movement against Big Business, are not only backed to the hilt by Big Business at the present time, but were originated by it for the very purpose of shifting from a free market to a cartelized economy. Under the guise of regulations “against monopoly” and “for the public welfare,” Big Business has succeeded in granting itself cartels and privileges through the use of government.”); Albert Jay Nock, quoted in Rothbard, The Betrayal of the American Right, 22 (2007) (”The simple truth is that our businessmen do not want a government that will let business alone. They want a government they can use. Offer them one made on Spencer’s model, and they would see the country blow up before they would accept it.”). See also Timothy P. Carney, The Big Ripoff: How Big Business and Big Government Steal Your Money (2006).
  • 11See, e.g., Transocean v. GlobalSantaFe (S.D. Tex. Dec. 27, 2006) (permanent injunction granted in favor of plaintiff leads to acquisition of defendant by plaintiff).
  • 12As the US Supreme Court has noted, “[t]he specification and claims of a patent… constitute one of the most difficult legal instruments to draw with accuracy ….” Topliff v. Topliff (1892). While this would appear to be a compliment to the skills of patent practitioners, it is really a testament to the inherent subjectivity and ambiguity in patent law (and a bit of a commentary on the technical illiteracy of most attorneys — they’re a bit overimpressed with engineer-attorneys: after all, they can actually do basic algebra!).
  • 13See Frederic Bastiat, “That Which is Seen, and That Which is Not Seen“ (1850); also Jeff Tucker, Seen and Unseen Costs of Patents, Mises Blog (Jan. 29, 2009).
  • 14The US Constitution, Art. I, § 8, is based on such reasoning, in granting Congress the power “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” As for costs, see note 29, above, and the references collected in the section “Studies on the Costs of the Patent System” in Kinsella, Revisiting Some Problems With Patents, Mises Blog (Aug. 2, 2007); Ronald Bailey, The Tragedy of the Anticommons: Do patents actually impede innovation?, Reason (Oct. 2, 2007); An Open Letter From Jeff Bezos On The Subject Of Patents (March 2000); “The Parade of Horribles” section of “Peer to Patent”: Collective Intelligence and Intellectual Property Reform. See also Robert P. Merges & Richard R. Nelson, “On the Complex Economics of Patent Scope,” 90 Colum. L. Rev. 839 (1990); Edmund W. Kitch, “The Nature and Function of the Patent System,” 20 J.L. & Econ. 265 (1977); Mark Lemley, “The Economics of Improvement in Intellectual Property Law,” 75 Tex. L. Rev. 989, 1044–1051 (1997); Barnett, Cultivating the Genetic Commons.
  • 15John R. Allison, Mark A. Lemley, Kimberly A. Moore, R. Derek Trunkey, Valuable Patents. See also Mark A. Lemley, Rational Ignorance at the Patent Office, 95 Northwestern U. L. Rev. (2001).
  • 16“End Software Patents” Launches With Website and Report, The 271 Patent Blog (Feb. 28, 2008).
  • 17George S. Ford et al., Quantifying the Cost of Substandard Patents: Some Preliminary Evidence, Phoenix Center Policy Paper Number 30 (Sept. 2007) (”These estimates may be viewed as conservative because they do not take into account other economic costs from our existing patent system, such as the consumer welfare losses from granting monopoly rents to patent holders that have not, in the end, invented a novel product, or the full social value of the innovations lost.”); see also The cost of substandard patents, Technological Innovation and Intellectual Property blog (Feb. 21, 2008) and How Much Harm Do Bad Patents Do To The Economy?, Techdirt (Feb. 25, 2008).
  • 18Kinsella, What are the Costs of the Patent System?.
  • 19Mark A. Lemley, Rational Ignorance at the Patent Office, 95 Northwestern U. L. Rev. (2001).
  • 20See The Cost of Substandard Patents.
  • 21See Kinsella, Patents and Innovation, Mises Blog (Mar. 7, 2008), Revisiting Some Problems with Patents, and What Are the Costs of the Patent System?
  • 22To be clear: the US patent term, prior to amendments to the Patent Act in 1995, was 17 years from the date the patent issued. After 1995, patents are enforceable after they are issued, until 20 years from the date the application was filed. Since patents typically take two or three years to issue, the effective term of patents is still about 17 years. See also C. Michael White, “Why a Seventeen Year Patent,” 38 J. Pat. Off. Soc’y 839 (1956) (describing historical basis for seventeen-year term and proposing shortened terms).
  • 23On this see Llewellyn H. Rockwell, Jr., The Tax Reform Racket, observing that “The only tax plan anyone should trust is the most simple possible: the one that proposes to lower existing taxes.” See also Rockwell, Diversions; Rothbard, The Consumption Tax: A Critique, Power and Market, and The Myth of Neutral Taxation; Laurence Vance, The Fair Tax Fraud and Flat Tax Folly.
  • 24Atlantic Works v. Brady, 107 US 192, 200 (1882).
  • 25See Kinsella, Patent Lawyers Who Don’t Toe the Line Should Be Punished!Mises Blog (Sep. 29, 2009); idem, An Anti-Patent Patent Attorney? Oh my Gawd!StephanKinsella.com (July 12, 2009.
  • 26See Mike Masnick, Is It So Crazy For A Patent Attorney To Think Patents Harm Innovation?, Techdirt (Oct. 1, 2009) (discussed here).
  • 27See Kinsella, There’s No Such Thing as a Free Patent.
  • 28See Kinsella, Yet Another Study Finds Patents Do Not Encourage Innovation; idem, Revisiting Some Problems With Patents; Barnett, Cultivating the Genetic Commons, p. 1008 (”There is little determinative empirical evidence to settle theoretical speculation over the optimal scope and duration of patent protection.”) (citing D.J. Wright, “Optimal patent breadth and length with costly imitation,” 17 Intl. J. Industrial Org. 419, 426 (1999)); Merges & Nelson, “On the Complex Economics of Patent Scope,” pp. 868-70 (stating that most economic models of patent scope and duration focus on the relation between breadth, duration, and incentives to innovate, without giving serious consideration to the social costs of greater duration and breadth in the form of retarded subsequent improvement)); Tom W. Bell, Prediction Markets for Promoting the Progress of Science and the Useful Arts, 14 G. Mason L. Rev. (2006):
    “But [patents and copyrights] for the most part stimulate only superficial research in, and development of, the sciences and useful arts; copyrights and patents largely fail to inspire fundamental progress.… Patents and copyrights promote the progress of the sciences and useful arts only imperfectly. In particular, those statutory inventions do relatively little to promote fundamental research and development ….”
    And see Thomas F. Cotter, “Introduction to IP Symposium,” 14 Fla. J. Int’l L. 147, 149 (2002) (”Empirical studies fail to provide a firm answer to the question of how much of an incentive [to invent] is necessary or, more generally, how the benefits of patent protection compare to the costs.”); Mark A. Lemley, Rational Ignorance at the Patent Office, 95 Northwestern U. L. Rev. (2001), at p. 20 & n. 74:“The patent system intentionally restricts competition in certain technologies to encourage innovation. Doing so imposes a social cost, though the judgment of the patent system is that this cost is outweighed by the benefit to innovation.… There is a great deal of literature attempting to assess whether that judgment is accurate or not, usually without success. George Priest complained years ago that there was virtually no useful economic evidence addressing the impact of intellectual property.… Fritz Machlup told Congress that economists had essentially no useful conclusions to draw on the nature of the patent system.”See further Julie Turner, Note, “The Nonmanufacturing Patent Owner: Toward a Theory of Efficient Infringement,” 86 Cal. L. Rev. 179, 186-89 (1998) (Turner is dubious about the efficacy of the patent system as a means of inducing invention, and would argue against having a patent system if this were its only justification); F.A. Hayek, The Fatal Conceit: The Errors of Socialism (U. Chicago Press, 1989), p. 36:“The difference between [copyrights and patents] and other kinds of property rights is this: while ownership of material goods guides the use of scarce means to their most important uses, in the case of immaterial goods such as literary productions and technological inventions the ability to produce them is also limited, yet once they have come into existence, they can be indefinitely multiplied and can be made scarce only by law in order to create an inducement to produce such ideas. Yet it is not obvious that such forced scarcity is the most effective way to stimulate the human creative process. I doubt whether there exists a single great work of literature which we would not possess had the author been unable to obtain an exclusive copyright for it; it seems to me that the case for copyright must rest almost entirely on the circumstance that such exceedingly useful works as encyclopedias, dictionaries, textbooks, and other works of reference could not be produced if, once they existed, they could freely be reproduced.… Similarly, recurrent re-examinations of the problem have not demonstrated that the obtainability of patents of invention actually enhances the flow of new technical knowledge rather than leading to wasteful concentration of research on problems whose solution in the near future can be foreseen and where, in consequence of the law, anyone who hits upon a solution a moment before the next gains the right to its exclusive use for a prolonged period. [citing Fritz Machlup, The Production and Distribution of Knowledge (1962)]”See also Kinsella, Patents and Innovation (noting economic historian Eric Schiff’s conclusion that when the Netherlands and Switzerland temporarily abolished their patent systems, they experienced increased innovation; Petra Moser’s finding that countries without patent systems innovate just as much, if not more, than those with patent systems).
  • 29Elaboration in Kinsella, Miracle — An Honest Patent Attorney!Mises Blog (Sep. 7, 2006). It could be argued not only that the costs of the patent system are greater than its innovation-advancing benefits — but that it actually impedes innovation, so that a cost is being incurred to actually stifle innovation. See, e.g., Ronald Bailey, The Tragedy of the Anticommons: Do patents actually impede innovation?, Reason (Oct. 2, 2007); Barnett, Cultivating the Genetic Commons:
    “Broadly defined patents appear likely to exacerbate considerably the accessibility costs that attend any system of property rights. Extending any form of patent protection to biotechnological innovations obviously increases development costs for subsequent researchers and, depending on patent scope and duration, may reduce or eliminate some researchers’ incentives to improve upon existing innovations. This danger grows as patent size increases. If broad patents sufficiently inflate subsequent improvers’ accessibility costs, patent protection would fail a net social benefit test, since it would reduce the total stream of innovative output that exists in a world without any patent protection at all.”
  • 30Our anonymous correspondent continues:
    “Of course, anyone can point to a few start-up companies that, arguably, owe their successes to their patent portfolios; but over the last 35 years, I have observed what would appear to be an ever increasing number of meritless patents, issued by an understaffed and talent-challenged PTO examining group, being used to extract tribute from whole industries. I have had this discussion with a number of clients, including Asian clients, who have been forced to accept our Patent System and the “taxes” it imposes on them as the cost of doing business in the USA. I wish I had the “answer”. I don’t. But going to real opposition proceedings, special patent courts with trained patent judges, “loser pays attorney fees” trials, retired engineers/scientists or other experienced engineers/scientists being used to examine applications in their fields of expertise by telecommuting from their homes or local offices throughout the Country, litigating patent attorneys providing regular lectures to the PTO examiners on problems encountered in patent infringement cases due to ineffective or careless examination of patent applications, and the appointment of actually qualified patent judges to the CAFC, may be steps in the right direction.”
    See Kinsella, Miracle — An Honest Patent Attorney!
  • 31See e.g., the Council on Foreign Relations study, “Reforming the U.S. Patent System: Getting the Incentives Right,” at p. 33; the Innovation Alliance’s suggestions for patent reform; Patent Reform Act of 2009, Patently-O (March 3, 2009); Patent Reform 2009: Reactionary Causes, Patent Baristas (March 3, 2009); also note 2 to Kinsella, Radical Patent Reform Is Not on the Way.
  • 32An Open Letter From Jeff Bezos On The Subject Of Patents (March 2000). See also C. Michael White, “Why a Seventeen Year Patent,” 38 J. Pat. Off. Soc’y 839 (1956) (describing historical basis for seventeen-year term and proposing shortened terms); Barnett, Cultivating the Genetic Commons (”There is little determinative empirical evidence to settle theoretical speculation over the optimal scope and duration of patent protection.”) (citing D.J. Wright, “Optimal patent breadth and length with costly imitation,” 17 Intl. J. Industrial Org. 419, 426 (1999); Merges & Nelson, “On the Complex Economics of Patent Scope,” pp. 868–870 (stating that most economic models of patent scope and duration focus on the relation between breadth, duration, and incentives to innovate, without giving serious consideration to the social costs of greater duration and breadth in the form of retarded subsequent improvement)).
  • 33See, e.g., Mexico-Selected Compulsory Licensing, Government Use, and Notable Patent Exception Provisions — Mexico Industrial Property Law. In accordance with article 5.A.2 and 4 of the Paris Convention, the French Patent Law (Code de la Propriété Intellectuelle) provides five different reasons for compulsory licensing, including “Non working of invention during four years from filing” (see L. 613-11 to 14). See also similar provisions in Sections 13, 24 and 81 of the German Patent Law. English translations of many foreign laws may be found in WIPO’s Collection of Laws for Electronic Access.
  • 34See Ciprofloxacin: the Dispute over Compulsory Licenses; Tom Jacobs, Bayer, U.S. Deal on Anthrax Drug, Motley Fool (Oct. 25, 2001). See also Kinsella, Brazil and Compulsory Licenses, Mises Blog (June 8, 2007); Kinsella, Condemning Patents, Mises Blog (Feb. 27, 2005).
  • 35See cases cited in note 15 to “Radical Patent Reform Is Not on the Way.” See also Peter S. Menell, “Intellectual Property and the Property Rights Movement,” Regulation (Fall 2007) (arguing that patent rights are unlike property rights and should not automatically receive the same protections as real property rights do, such as injunctions, exclusivity, and inviolability); Julie Turner, Note, “The Nonmanufacturing Patent Owner: Toward a Theory of Efficient Infringement,” 86 Cal. L. Rev. 179, 186–89 (1998), arguing that“the patent system should not benefit those who would use a patent solely as a barrier to entry, without intent to pursue commercialization of the underlying technology — entities which I will call “nonmanufacturing patent owners.” While disclosure may have value, mere disclosure fails to justify the granting of a monopoly absent the patent owner’s intent to commercialize the disclosed invention. As a result, the patent enforcement system should adopt a scheme whereby nonmanufacturing patent owners receive monetary relief equivalent to the “disclosure value” of their patents.”For more discussion of this issue, see Merges & Nelson, “On the Complex Economics of Patent Scope,” at notes 6–7 and accompanying text (”All in all, the substantial amount of evidence now available suggests that compulsory patent licensing, judiciously confined to cases in which patent-based monopoly power has been abused … would have little or no adverse impact on the rate of technological progress ….”) (quoting F.M. Scherer, Industrial Market Structure and Economic Performance 456–57 (2d ed. 1980)). [For more on compulsory licensing, see Hickey, Kevin J.; Ward, Erin H., “The Role of Patents and Regulatory Exclusivities in Drug Pricing” (01/30/2024).]
  • 36See Kinsella, Snarky IP Comment, StephanKinsella.com (Sep. 5, 2009) (”Hey, I know — let’s trust the same government that imposes FDA costs, taxes, and regulatory roadblocks to set up a patent office to hand out patents to give you partial ownership of others’ property to incentivize you just enough to overcome the costs they imposed on you on the first place with the FDA and taxes and regulations. Beautiful! And if that’s not ‘enough’ incentive, establish a government panel of ‘experts’ to give you ‘enough’ of a reward paid by taxpayers. Beautiful! I like it!”).
  • 3735 USC § 273.
  • 38See Kinsella, Common Misconceptions about Plagiarism and Patents: A Call for an Independent Inventor Defense, Mises Blog (Nov. 21, 2009). The CFR study “Reforming the U.S. Patent System: Getting the Incentives Right“ recommends a prior-user right be adopted; Bessen & Meurer, in Patent Failure, recommend an independent inventor defense.
  • 39The CFR study “Reforming the U.S. Patent System: Getting the Incentives Right“ recommends making it more difficult to find willful infringement.
  • 40See Kinsella, IP Imperialism (Russia, Intellectual Property, and the WTO), Mises Blog (Sept. 22, 2006); idem, China, India like US Patent Reform, Mises Blog (Dec. 10, 2007).
  • 41See Merges & Nelson, “On the Complex Economics of Patent Scope“ (arguing that excessively broad patents can impede progress and hinder or block subsequent innovation, especially in science-based industries). See also Julie E. Cohen & Mark A. Lemley, Patent Scope and Innovation in the Software Industry, Cal. L. Rev. (2001); Barnett, Cultivating the Genetic Commons (quoted in note 29 above).
  • 42See Peer-to-Patent Review system, Patent Baristas (Oct. 1, 2007); PatentFizz.com (allows public comments on patents). See also the proposals of Public Knowledge proposes “Peer review of patent applications,” “Permitting third parties to submit prior art, and rewarding them with fee reimbursement if successful,” and “Permitting post-grant review of patents by the USPTO prior to litigation.”
  • 43See, e.g., Steve Seidenberg, Novel Ideas: PTO proposes a new suite of patent products to streamline applications, InsideCounsel (Jan. 2007); D.C. Toedt, “Reengineering the Patent Examination Process: Two Suggestions,” 81 J. Pat. & Trademark Off. Soc’y 462 (1999): (suggesting the creation of a convertible “low end” patent (CLEP) and conducing patent examinations as administrative trials); and Dave A. Wyatt, A Radical View On The Future Of Substantive Patent Examination, Henry Goh Intellectual Property Updates (Q1, 2006).
  • 44Economists Michele Boldrin & David K. Levine suggest amending the patent law to reverse the burden of the proof on patent seekers by granting patents only to those capable of proving that
    • • their invention has social value
      • a patent is not likely to block even more valuable innovations
      • the innovation would not be cost-effective absent a patent.

     See Cory Doctorow, “Economists call for patent and copyright abolition,” Boing Boing (March 11, 2009); see also Boldrin & Levine’s Against Intellectual Monopoly (2008).

  • 45See, e.g., RIAA Wants $1.5 Million Per CD Copied, Slashdot (Jan. 30, 2008); Ford Slaps Brand Enthusiasts, Returns Love With Legal Punch, AdRants (Jan. 14, 2008) (Ford Motor Company claims that they hold the rights to any image of a Ford vehicle, even if it’s a picture you took of your own car); Jacqueline L. Salmon, NFL Pulls Plug On Big-Screen Church Parties For Super Bowl, Washington Post (Feb. 1, 2008) (NFL prohibits churches from having Super Bowl gatherings on TV sets or screens larger than 55 inches); Internet pirates could be banned from web, Telegraph (Feb. 12, 2008) (British proposal to punish individuals who illegally download music by banning them from the Internet); John Tehranian, Infringement Nation: Copyright Reform and the Law/Norm Gap, Utah L. Rev. (forthcoming; SSRN); Cory Doctorow, Infringement Nation: we are all mega-crooks, Boing Boing (Nov. 17, 2007); Court Says You Can Copyright A Cease-And-Desist Letter, Techdirt (Jan. 25, 2008); Kinsella, Battling the Copyright Monster, Mises Blog (June 19, 2006); idem, Copyright Kills Amazing Music Project, Mises Blog (Jan. 2, 2008); idem, “Fair Use” and Copyright, Mises Blog (Aug. 17, 2007); idem, Copyrights and Dancing, Mises Blog (Feb. 20, 2007); idem, The “tolerated use” of copyrighted works, Mises Blog (Oct. 27, 2006); idem, Copyright and Birthday Cakes, Mises Blog (June 16, 2005); idem, Heroic Google Fighting Copyright Morass, Mises Blog (June 2, 2005); idem, Copyright Gone Mad, Mises Blog (Apr. 14, 2005); idem, Copyright and Freedom of Speech, Mises Blog (Nov. 8, 2004). See also Joost Smiers & Marieke van Schijndel, Imagine a World Without Copyright, International Herald Tribune (Sat. Oct. 8, 2005); Jessica Litman, Revising Copyright Law for the Information Age, 75 Oreg. L. Rev. 19 (1996); Kinsella, Copyrights in Fashion Designs?, Mises Blog (Sep. 27, 2006); Kinsella, Britain’s Copyright Laws, Based on a 300-Year-Old Statute, Desperately Need Reshaping for the Digital Age, Mises Blog (Nov. 2, 2006). For a humorous parody of copyright abuses by the RIAA, see CD Liner Notes of the Distant Present, Something Awful (Jan. 3, 2008).
  • 46See, e.g., Lou Carlozo, Teen’s charity name draws the McIre of McDonald’s, Wallet Pop (Jan. 17, 2010) (McDonadl’s claims Lauren McClusky’s use of “McFest” for the name of a series of charity concerts she puts on infringes its “McFamily” brand); Chip Wood, A Bully-Boy Beer Brewer, Straight Talk (Oct. 16, 2007); 9th Circuit Appeals Court Says Its Ok To Criticize Trademarks After All, Against Monopoly (Sept. 26, 2007); Kinsella, Trademarks and Free Speech, Mises Blog (Aug. 8, 2007); idem, Beemer must be next… (BMW, Trademarks, and the letter “M”), Mises Blog (Mar. 20, 2007); idem, Hypocritical Apple (Trademark), Mises Blog (Jan. 11, 2007); ECJ: “Parmesian” Infringes PDO for “Parmigiano Reggiano,”I/P Updates (Feb. 27, 2008); Mike Masnick, Engadget Mobile Threatened For Using T-Mobile’s Trademarked Magenta, Techdirt (Mar. 31, 2008).
  • 47See Kinsella, Improving Copyright Law: Baby Steps, Mises Blog (Feb. 24, 2005); Timothy Lee, Orphan Works Legislation Would Be A Small But Important Step Toward Copyright Reform, Techdirt (Apr. 29, 2008).
  • 48See Kinsella, “Copyright Is Very Sticky!“ Mises Blog (Jan. 14, 2009).
  • 49See Kinsella, World’s Fair Use Day, Mises Blog (Jan. 6, 2010); idem, “Fair Use” and Copyright; idem, The “Tolerated Use” of Copyrighted Works; idem, Copyright and Birthday Cakes; idem, Heroic Google Fighting Copyright Morass.
  • 50An example of an egregious award resulting from the current statutory damages scheme was the recent $220k verdict against Jammie Thomas for sharing 24 songs. The jury awarded $9,250 in statutory damages per song for 24 songs; it could have been up to $150,000 per song, or $3.6M. See Eric Bangeman, RIAA Trial Verdict Is In: Jury Finds Thomas Liable for Infringement, ars technica (Oct. 04, 2007).

Archived comments here, here, here, here, and reproduced below.

 

 

Comments (154) 

  • Curt HowlandCurt Howland

    So, 400+ messages on just the last two blog entries about so-called “intellectual” property, sadly very repetitive, I wonder how many this one will get?

    Those who wish to repeal I.P. are fighting against the emotional reaction that artists are entitled to these royalties. That it is somehow “theft”, with all the accompanying deprivation, if the artist does not receive all the monopoly profits they might get with statute I.P., without any way to determine what those might be or have been.

    The “labor theory of value” arguments ignore the fact that labor does not determine value, even though someone who put his all for years into the Great American Novel ends up receiving practically nothing in return. But they ignore the fact that even with statute I.P. enforcement, that kind of thing happens too.

    And those worried about blatant rip-offs don’t seem to consider that books like “The Sword of Shanara” get published and make lots of money, while “The Wind Done Gone”, an obvious parody that no one made any effort to pretend was anything else, gets slammed down because statute I.P. is arbitrary. Enforcement is on a whim, just like anti-trust and insider trading laws.

    Yet didn’t the author of “The Wind Done Gone” work hard? Make contribution? Invest their very soul in the project? But that doesn’t matter this time. Maybe he should have parodied Shakespeare instead, like “Shakespeare In Love”, since the statutes say that’s OK to do.

    Published: January 20, 2010 8:39 AM

  • Kerem TibukKerem Tibuk

    Curt,

    These are not “labor theory of value” but “labor theory of property”. I suggest you study a bit on the Lockean/Rothbardian theory of property a bit.

    Published: January 20, 2010 8:57 AM

  • Kerem TibukKerem Tibuk

    I say abolish all patent laws and let the courts decide if there was an aggression against property (unauthorized copying) or not.

    The burden of proof would of course fall on the accuser to show that the similar IP was in fact not independently discovered but copied.

    You do not need to register ownership of every bit of physical property and you do not need to register any IP either.

    Further as a more optimistic wish, I say abolish the state and all the legislation regarding every property.

    Property tangible or intangible is the outcome of human nature and not some social convention or state.

    Published: January 20, 2010 9:03 AM

  • RussRuss

    Kerem Tibuk wrote:

    “These are not “labor theory of value” but “labor theory of property”. I suggest you study a bit on the Lockean/Rothbardian theory of property a bit.”

    As should you. The Lockean labor theory of property applies to physical goods, not patterns or ideas. It is not at all obvious that the concept should extend to patterns or ideas.

    Kerem Tibuk wrote:

    “I say abolish all patent laws and let the courts decide if there was an aggression against property (unauthorized copying) or not.”

    Ummmm, if there are no IP laws, then how can a court interpret the non-existent law? And what about the notion in our law that the law should be knowable, because if one cannot know that the law is being broken, there can be no mens rea?

    Published: January 20, 2010 9:15 AM

  • GilGil

    There’s no point trying to argue for the watering down of I.P. protection – it’s the same arguments that would be used for its abandoment.

    On the other hand, people argue for I.P. in that it gives inventors and innovators a right to control and profit their works. S. Kinsella’s view that “I.P. stifles inventions and innovations” isn’t supported by any historical evidence. His arguments for the costs are akin to the costs of R.P. – idyllic private landowners would like to have no enforcement costs of their land from physical invaders or invaders who would use some sort of private court system to try to steal their land but it is a part of living in the real world, even in Anarchtopia.

    Published: January 20, 2010 9:16 AM

  • Kerem TibukKerem Tibuk

    Russ,

    “As should you. The Lockean labor theory of property applies to physical goods, not patterns or ideas. It is not at all obvious that the concept should extend to patterns or ideas.”

    If you understand how they came to the conclusion that private property is justifies, instead of memorizing some lines, you would see that the same logic applies to IP and it is very much obvious. That is why I suggest everyone to study it, to think about it instead of repeating some memorized lines, from some famous person.

    “”I say abolish all patent laws and let the courts decide if there was an aggression against property (unauthorized copying) or not.”

    Ummmm, if there are no IP laws, then how can a court interpret the non-existent law? And what about the notion in our law that the law should be knowable, because if one cannot know that the law is being broken, there can be no mens rea?”

    First there is no need for legislation for a law to exist. Laws are not made they are discovered.

    Secondly, even if there was legislation, one law regarding property is sufficient and that legislation can cover every property tangible or intangible. Do you need to write legislation for every type of property? One legislation for cars, another for houses, etc?

    Published: January 20, 2010 9:24 AM

  • RussRuss

    Dang it, my last post got eaten. OK, here we go again…

    Kerem Tibuk wrote:

    “If you understand how they came to the conclusion that private property is justified, instead of memorizing some lines, you would see that the same logic applies to IP…”

    It’s not at all the same. Mixing one’s labor with material gives one the right to *that* material. It does not give one the right to other material that other people have mixed their labor with in the same way.

    “First there is no need for legislation for a law to exist. Laws are not made they are discovered.”

    Even if this were true, which I don’t believe it is, letting the courts legislate from the bench would make the problem of “judicial activism” even worse than it is now.

    “Secondly, even if there was legislation, one law regarding property is sufficient and that legislation can cover every property tangible or intangible. Do you need to write legislation for every type of property? One legislation for cars, another for houses, etc?”

    Cars and houses are both material goods, so, no, of course separate laws are not needed for both. IP is not material, so the same laws don’t apply. Simply ignoring obvious distinctions such as this does not make them go away, Kerem.

    Published: January 20, 2010 10:06 AM

  • StrangerStranger

    Mr. Stephan Kinsella is the unchallenged expert of the strawman attack, devoting entire essays to denouncing patents, then sneaking in a completely incorrect attack on copyright into the bundle as if it were somehow self-evident that they go together. Of course they do not, they are entirely different, and it suffices to read Rothbard’s undergraduate-level Man Economy and State to see why.

    As if his reasoning were not ridiculous enough, in this case his proposal for reform of copyright increases the state’s violations of property instead of eliminating, as it still requires an administrative bureaucracy yet reduces the claim to property of the producer! The obvious reform is of course to eliminate registration entirely and grant copyright for perpetuity, as it is quite simple for any producer of information to demonstrate that he is the originator of a work.

    As long as the Mises institute continues to publish these ridiculous articles, it will dishonor the memory of Rothbard and Mises.

    Published: January 20, 2010 10:08 AM

  • RussRuss

    Stranger,

    My mother taught me not to talk to Strangers, but since it’s only the Internet, it should be safe enough…

    How are patents and copyrights completely different? They both seem familiar to me. After all, they both prevent one from copying something. Could you put it in a nutshell for somebody who doesn’t want to slog through MES?

    Published: January 20, 2010 10:27 AM

  • RussRuss

    Oops. Brain fart.

    “They both seem familiar to me.”

    Should be:

    “They both seem similar to me.”

    Published: January 20, 2010 10:30 AM

  • StrangerStranger

    The patent is incompatible with the free market precisely to the extent that it goes beyond the copyright. The man who has not bought a machine and who arrives at the same invention in­dependently, will, on the free market, be perfectly able to use and sell his invention. Patents prevent a man from using his in­vention even though all the property is his and he has not stolen the invention, either explicitly or implicitly, from the first in­ventor. Patents, therefore, are grants of exclusive monopoly priv­ilege by the State and are invasive of property rights on the mar­ket.

    The crucial distinction between patents and copyrights, then, is not that one is mechanical and the other literary. The fact that they have been applied that way is an historical accident and does not reveal the critical difference between them.[96]The cru­cial difference is that copyright is a logical attribute of property right on the free market, while patent is a monopoly invasion of that right.

    http://mises.org/rothbard/mes/chap10e.asp#7._Patents_Copyrights

    Published: January 20, 2010 10:34 AM

  • RussRuss

    “…Patents prevent a man from using his in­vention even though all the property is his and he has not *stolen* [emphasis added] the invention, either explicitly or implicitly, from the first in­ventor. Patents, therefore, are grants of exclusive monopoly priv­ilege by the State and are invasive of property rights on the mar­ket.”

    This simply *assumes* that copying an invention (as opposed to independently discovering it) is stealing. It is not. The inventor will still have his invention, as long as the original invention is only copied, and not stolen.

    “…copyright is a logical attribute of property right on the free market…”

    I also fail to see how this is true. Copying an object in no deprives the original owner of his original object. Hence, copying any object in no way violates the original owner’s property rights.

    I’m afraid Rothbard is simply mistaken here.

    Published: January 20, 2010 10:50 AM

  • NateNate

    Gil,

    You should check out the following daily article:

    http://mises.org/daily/3280

    for historical evidence that IP can stifle innovation.

    Published: January 20, 2010 10:55 AM

  • StrangerStranger

    I also fail to see how this is true. Copying an object in no deprives the original owner of his original object. Hence, copying any object in no way violates the original owner’s property rights.

    Strawman, as usual. The issue is not whether the original object has been taken away, but that it has been used in a way that its owner forbids. For this reason, copying violates property rights.

    Published: January 20, 2010 10:58 AM

  • Kerem TibukKerem Tibuk

    Yes Stranger, but you see Rothbard was confused when it came to IP. Mr Kinsella knows what is property and what is not and also can tell when Rothbard was confused.

    Actually Kinsella doesn’t have the balls to take on Rothbard head on challenging his natural law ethics. He instead sneaks his positivist property theory in with his IP socialism. Although he admits occasionally that he doesn’t think there are natural laws or believes that individuals have self ownership.

    Of course if he did honestly denounce natural law ethics, it would be very difficult for him to defend his position since natural law ethics is the strongest foundation for libertarianism and also the most consistent one.

    Published: January 20, 2010 11:04 AM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Kerem:

    “I say abolish all patent laws and let the courts decide if there was an aggression against property (unauthorized copying) or not.

    The burden of proof would of course fall on the accuser to show that the similar IP was in fact not independently discovered but copied.”

    This is question-begging, as is par for the course with IP proponents. It assumes the court would rule against someone if it could be shown they “copied” something. I.e., if they learned something! Kerem Tibuk does not seem to realize this would eviscerate patent law, since patent law does not require copying; in other words the system proposed by Tibuk would be called “anti-IP” by the IP shills and fascists. Further, his system would also be worse in that as the judge is going by some “copying” principle and not interpreting a statute, the terms would be infinite. At least copyright finally dies away–not Tibuk’s court-created legislation. To have any workable IP system would require a myriad of artificial rules. The judge would have to legislate from the bench. And other judges would not follow such dicta (for more on the role of judges and decentralized law-making see my Legislation and the Discovery of Law in a Free Society, esp. p. 176 et pass.).

    Actually Kinsella doesn’t have the balls to take on Rothbard head on challenging his natural law ethics. He instead sneaks his positivist property theory in with his IP socialism. Although he admits occasionally that he doesn’t think there are natural laws or believes that individuals have self ownership.

    Of course if he did honestly denounce natural law ethics, it would be very difficult for him to defend his position since natural law ethics is the strongest foundation for libertarianism and also the most consistent one.

    Tibuk, please watch your incivil tongue. And your comments are nonsense. I’ve long been a proponent of Rothbard’s libertarian ethics, including improvements to and extensions of it by Hoppe (as was Rothbard himself).

    Published: January 20, 2010 11:24 AM

  • Kerem TibukKerem Tibuk

    Kinsella,

    ” It assumes the court would rule against someone if it could be shown they “copied” something. I.e., if they learned something!”

    It doesnt assume anything. I am saying it should be that ways since copying without the consent of the owner is aggression against property.

    ” Kerem Tibuk does not seem to realize this would eviscerate patent law, since patent law does not require copying; in other words the system proposed by Tibuk would be called “anti-IP” by the IP shills and fascists. ”

    Which part of “abolish all patent legislation” don’t you understand. Patent laws are unjust laws. They wouldnt exist in a free society. And I don’t care what an IP socialist like yourself or an IP fascist that defends patents might say. Why don’t you read Rothbard where Stranger quoted above.

    “Further, his system would also be worse in that as the judge is going by some “copying” principle and not interpreting a statute, the terms would be infinite. At least copyright finally dies away–not Tibuk’s court-created legislation. ”

    Who says property rights should die after some arbitrary time? Of course property rights are infinite.

    “To have any workable IP system would require a myriad of artificial rules. The judge would have to legislate from the bench. And other judges would not follow such dicta (for more on the role of judges and decentralized law-making see my”

    Applying one law to different circumstances is not legislation from bench. It is called judgment. And we do not need to see your anything since you can not distinguish between legislation and judgement.

    “Tibuk, please watch your incivil tongue. And your comments are nonsense. I’ve long been a proponent of Rothbard’s libertarian ethics, including improvements to and extensions of it by Hoppe (as was Rothbard himself).”

    Do you believe in natural law and self ownership or not? If you don’t you are lying when you say you are proponent of Rothbard’s libertarian ethics.

    You may agree with some of his conclusions but that doesn’t mean you are a proponent. And hijacking natural law ethics, and injecting legal positivism in libertarianism is not an improvement of Rothbard’s theory. Not by Hoppe or certainly not by you

    Have some courage man. Maybe if you are honest and come clean you could be a worthy intellectual opponent and genuine debate can take place.

    Published: January 20, 2010 11:46 AM

  • DixieFlatlineDixieFlatline

    Stranger: Strawman, as usual. The issue is not whether the original object has been taken away, but that it has been used in a way that its owner forbids. For this reason, copying violates property rights.

    This is circular reasoning. You admit the the owner has not lost control of the property, and yet you claim that someone is using the property in a manner he forbids.

    Which is it?

    The question I am getting to, which you have less-than-artfully dodged in the community and on the blog, is where does this right to forbid originate, if he never lost control of his property at all?

    Really, this goes back to Stephan’s observation, that the property rights you propose (including some right of perpetual copyright which I will demonstrate to be nonsensical) are really rights over the property of others, and how that property may be used. You can’t know or prove that I know something, unless I translate it into some form of physical proof. So for all intents and purposes, any claims to property rights via IP you have would make, are claims over my physical property, not the contents of my mind. Your position is simply one of positivism.

    As to your notion of copyright in perpetuity, if that was the standard, then you would not be able to utilize any technology that you did not have explicit permission to use, including the English language (language is a technology) because if you used it without explicit permission, you would be a rights violator and thief.

    I have demonstrated to you, using your arguments, and quite publicly, explained, how your position is arbitrary and self-contradicting.

    Lastly, your claim about Rothbard is also self-contradicting, because copyright and patent are the same thing. If you claim I can produce the same item independently, how can you prove that I did not copy? It’s more circular reasoning.

    Much of Rothbard’s post-Objectivist natural rights libertarianism is arbitrary and confusing. This issue is (in my opinion) why Rand based Objectivist IP theory on her misunderstanding of how the American patent system worked. People try to fit square pegs into round holes when they have a commitment to ideology over truth.

    Published: January 20, 2010 12:22 PM

  • DixieFlatlineDixieFlatline

    Stephan, I am sure I am not the only person who has tired of the insults and poor social interaction from Kerem. It’s obvious he is here to troll these topics each day, simply remove his posts if they contain insults. He will have to stop being insulting if he wants his content to stick.

    I suspect he will ultimately lose interest in trolling when he is not getting an opportunity to debate in bad faith because he has shown little inclination to debate consistently and rationally.

    Likewise for the other folks who take the approach of petty ad hom.

    Published: January 20, 2010 12:25 PM

  • Nate YNate Y

    Stranger says:

    “Strawman, as usual. The issue is not whether the original object has been taken away, but that it has been used in a way that its owner forbids. For this reason, copying violates property rights.”

    The problem here is that after an exchange has happened, the original owner is no longer the owner. The person doing the copying is now the owner and is free to do what he/she wants with his/her just property.

    Published: January 20, 2010 12:27 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Kerem: yes, so you admit copyright should last forever. Good. So it’s very clear I was right, and that your system would even be worse than the current one; and it’s good that you are taking your ideas to their proper exteme: you are doing the argument from absurdity for me. THanks.

    “Do you believe in natural law and self ownership or not? If you don’t you are lying when you say you are proponent of Rothbard’s libertarian ethics.”

    Of course I believe in self-ownership; I’ve written a lot on this. As for natural law–sure, understood properly as having a hypothetical foundation (due to the is-ought gap) and grounded in an aspect of human nature–discursive justification, per Hoppe.

    Published: January 20, 2010 12:46 PM

  • StrangerStranger

    “The problem here is that after an exchange has happened, the original owner is no longer the owner. The person doing the copying is now the owner and is free to do what he/she wants with his/her just property.”

    Incorrect. The terms of the contract clearly stipulate limited rights to access the media, much like one who buys a home has limited rights to the land and the developer retains the other rights.

    Published: January 20, 2010 1:00 PM

  • Jay LaknerJay Lakner

    I agree with DixieFlatline.
    I grow tired of sifting through pointless insults trying to get to the meat of an argument. Sometimes I get so frustrated with the person I’m trying to debate with that I throw an insult or two back at them. I usually regret it later and apologise to the community, but I think everyone realises that nobody has infinite patience.
    Kerem is well known to initiate these sorts of skirmishes, which is a shame because his unusual viewpoint on many issues keeps me on my toes. (like when he proclaimed that all marriage contracts are invalid … that really got me thinking. I disagree with him wholeheartedly, but my understanding of the subject has increased greatly and I’m thankful that he made that claim) Kerem is not someone I want chased off this site. I just wish for him to lay off the slander.
    Some of our (self-proclaimed) Objectivist visitors have been somewhat rude. For example, John Donohue and Mark Hubbard. Objectivists in generally tend to argue with extreme passion and sometimes it’s difficult to determine the difference between a hostile post and an emotionally-charged post. Working out where to draw the line can be tricky.
    Whatever position is taken on deleting inappropriate posts, I just wish for it to be consistent.

    Published: January 20, 2010 1:06 PM

  • Nate YNate Y

    Stranger says:

    “Incorrect. The terms of the contract clearly stipulate limited rights to access the media, much like one who buys a home has limited rights to the land and the developer retains the other rights.”

    What contract? It seemed like you guys were talking about IP in general. Not about a specific transaction with a contract.

    Published: January 20, 2010 1:14 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    A warning to Kerem, Donohue, Hubbard–disagree all you want. But keep a civil tongue, or you’ll be booted.

    Published: January 20, 2010 1:14 PM

  • DixieFlatlineDixieFlatline

    Nate, you have exposed another chink in Stranger’s argument.

    Now he is arguing that property rights are based on contract, not on possession. This is typical of the people who shout “socialist” when it comes to IP. The capacity to redefine what copyright is several times a day, depending on the objections voiced to it.

    If copyright depends on contract, then there is no way to form a contract without consent, and so the copyright only extends to those who agree to the contract, no one else.

    In a free market, restrictive contracts are always undermined by less restrictive ones, and so it behooves someone else to offer the freest contract for his copyright that he can. LvMI is an example of this. They profit greatly from not enforcing their copyright, and enforcing their copyright would generate expenses they would not be able to recoup.

    The other element of Stranger’s latest error is that one can simply emulate the pattern which is copyrighted, and used by someone who has a contract. That is, unless they manage to keep the copyrighted idea secret, which again, diminishes its utility, creating opportunities for less restrictive contracts with lower per-use costs.

    The lesson to be learned from this is that when one starts with an irrational premise (property rights assigned to non-property) or a flawed conception of rights (property rights being contracts, contracts being implicit) the argument has been lost before it has begun.

    Published: January 20, 2010 1:36 PM

  • StrangerStranger

    “What contract? It seemed like you guys were talking about IP in general. Not about a specific transaction with a contract.”

    The contract that you yourself mentioned when you invoked the exchange of media before making this additional idiotic comment.

    Published: January 20, 2010 1:39 PM

  • NelsonNelson

    The comments were civil enough, challenging though they were. Booting Kerem would prove that his assertions couldn’t be countered with facts and logic so force must be used instead. This parallels the real world in that conflicts are resolved between tribes and nations via force, not reason. This is why the Rothbardian non-state utopia can not exist (sadly even among utopian anarchists it seems).

    Published: January 20, 2010 1:41 PM

  • DixieFlatlineDixieFlatline

    Nelson, no utopia can exist. Not even the Randian night watchman state, that is based on a contradictory premise.

    As to the civility of the comments, no one is questioning that the comments are uncivil, they clearly are at times. The assertions can and should be answered, but not when used as a vector to insult and berate. If Kerem is serious about his assertions and proving their worth, he will seek to debate in a manner conducive to discourse and interaction, not one which is anti-social.

    And lastly, the claim that booting him would prove his assertions is a logical fallacy. It is a non sequitur.

    This far the pro-IP crowd has made no headway in their arguments, and in the case of folks like Stranger, have lost ground with each new post.

    Published: January 20, 2010 1:46 PM

  • RussRuss

    I was prepared for long debate with Stranger, but Nate Y. has neatly anticipated every one of my responses.

    Nate Y wrote:

    “The problem here is that after an exchange has happened, the original owner is no longer the owner. The person doing the copying is now the owner and is free to do what he/she wants with his/her just property.”

    Amen, brother! Unless there is a contract between buyer and seller, with the buyer agreeing that he won’t copy the object, and also agreeing that he will require others buying the object from him to sign a similar contract, the buyer/new owner can copy the item if he wants.

    Nate Y wrote:

    “What contract?”

    Hallelujah, brother, Hallelujah! A sticker that say “You can’t copy this!” does not a contract make. Neither does a copyright notice inside a book.

    Published: January 20, 2010 1:51 PM

  • Jay LaknerJay Lakner

    Nelson,

    Kerem has a tendency to fall into an “attack the man, not the argument” mentality.

    For example I would consider the following quote to be inappropriate:
    “Actually Kinsella doesn’t have the balls to take on Rothbard head on challenging his natural law ethics. He instead sneaks his positivist property theory in with his IP socialism.”
    Kerem is not making an argument against Stephan’s position, he is making an argument against Stephan. It really irritates me when I see stuff like this. It’s unnecessary and counterproductive.

    I do sympathise with Kerem though. I’m sure everyone here understands what it’s like to be alone in an argument against many. It’s extremely frustrating. And Kerem all too often finds himself in that position here on Mises.org.
    The solution is to simply say “Here is the line, do not cross it” and then at least everyone knows where they stand. (the word “civil” is a bit too subjective for my tastes)

    Published: January 20, 2010 2:05 PM

  • MagnusMagnus

    Curt Howland: Those who wish to repeal I.P. are fighting against the emotional reaction that artists are entitled to these royalties.

    I came across an interesting analysis of just HOW the phenomenon of file-sharing of music has affected the revenue streams of artists and labels since 2004.

    Here’s the article, complete with helpful charts and stuff:

    http://labs.timesonline.co.uk/blog/2009/11/12/do-music-artists-do-better-in-a-world-with-illegal-file-sharing/

    File-sharing is an imperfect substitute for the abolition of IP, but file-sharing is the next best thing, I suppose, since it consists of the rampant disregard of IP protections, rendering IP protection of music all but unenforceable.

    The article shows that the artists’ revenues have increased, while the labels’ revenues have decreased.

    Suddenly, the plight of the artist who got robbed seems less … real. I don’t hear many people wringing their hands for the record label that makes slightly less than it otherwise would (other than the people who work at record labels).

    As marketing guy Gareth Kay pointed out:

    “Arguably, the last century of recorded music has been an anomaly in how we consume music and we’re going back to how we have always enjoyed it – live and together.”

    Published: January 20, 2010 2:12 PM

  • Nate YNate Y

    Stranger says:

    “The contract that you yourself mentioned when you invoked the exchange of media before making this additional idiotic comment.”

    What the?

    As if there’s a binding contract involved in every transaction. Give me a break.

    The barter analogy helps with this confusion. Suppose we live in a barter economy. You produce a book and I produce a disc of music. You want my disc and I want your book. We agree to trade. What was once yours is now mine and vice versa. Just as you were free to do whatever you wanted to do with your book, you are now free to do with the disc. Afterall, we traded and it now belongs to you.

    Published: January 20, 2010 2:41 PM

  • StrangerStranger

    “The barter analogy helps with this confusion. Suppose we live in a barter economy. You produce a book and I produce a disc of music. You want my disc and I want your book. We agree to trade. What was once yours is now mine and vice versa. Just as you were free to do whatever you wanted to do with your book, you are now free to do with the disc. Afterall, we traded and it now belongs to you. ”

    The information producer would never agree to trade without limited copyright. It may seem to you that because you do not have to sign a multiple page agreement at the checkout counter of HMV that you are not bound by a contract, but in fact the contract is inscribed on the product you purchased, hence denying that the seller is binding you to it is pure idiocy, and would be laughed out of court.

    Published: January 20, 2010 2:49 PM

  • Jay LaknerJay Lakner

    Magnus, unfortunately that article doesn’t factor in inflation. The true revenues to artist may not have changed at all, or maybe even lower.
    It would have been nice if they had of produced an inflation-adjusted version of that data, just to be sure.

    Published: January 20, 2010 2:52 PM

  • RussRuss

    Stranger wrote:

    “The information producer would never agree to trade without limited copyright.”

    That’s not true. Some people do exactly that. If the seller intends to limit the rights being sold, instead of selling the object with full rights, then he should explicitly make that clear with an explicit contract, and should assure that he has proof that the buyer consented to the terms of the contract.

    “It may seem to you that because you do not have to sign a multiple page agreement at the checkout counter of HMV that you are not bound by a contract, but in fact the contract is inscribed on the product you purchased, hence denying that the seller is binding you to it is pure idiocy, and would be laughed out of court.”

    I won’t go into this again, but no, a sticker or copyright notice is not a contract. So what if current law believes that the buyer is legally bound? There’s no debate about that; what we’re debating about is whether these laws are just. Appeals to the status quo are meaningless.

    Published: January 20, 2010 3:04 PM

  • AndrasAndras

    In the context of the arbitrariness of homesteading and “IP laws are to assist internalizing the external”, I think Kinsella’s proposal is a great start and compromise.
    Some technicality though: how do you intend to
    “Apportion damages to be proportional to the value of the patent”. What is the value of a patent?

    I have posted this on both parts when I saw the debate was also going on here.

    Published: January 20, 2010 3:27 PM

  • MagnusMagnus

    Magnus, unfortunately that article doesn’t factor in inflation. The true revenues to artist may not have changed at all, or maybe even lower.

    The more important information in the chart is that artists’ revenues and the labels’ revenues are going in opposite directions.

    The same rate of inflation applies to them both, of course. So, regardless of what’s happening in real terms, the industry’s total revenues are clearly being divided up among the various parties in new and changing percentages.

    I get tired of the hand-wringing about the poor artists — the Parable of the Popular-But-Starving Musician. I know why pro-IP people trot it out all the time — people clearly sympathize with artists more than they do with publishers and music labels.

    When it turns out, however, that artists are getting a bigger cut and labels are getting a smaller cut, it really takes the wind out of the sails of that particular type of pro-IP propaganda.

    Published: January 20, 2010 3:35 PM

  • Jay LaknerJay Lakner

    Magnus,

    File-sharing is clearly going to effect the record labels but it’s unclear what the effect on live performances is. If, via inflation-adjusted data, it is shown that there is no change in live-performance revenue while there’s a big drop in record label revenue, then the only conclusion one can draw is that file-sharing takes money away from artists. This is not the result I want to see. That’s why I’d like the data to be adjusted for inflation so we can see what is really going on.

    Published: January 20, 2010 3:47 PM

  • pro-IP-libertarianpro-IP-libertarian

    Stephan-

    Good articles. And this is coming from someone who is pro-IP and thought reading them was going to induce nausea. I agree with most of your recommendations as well.

    Published: January 20, 2010 5:37 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    It’s not at all the same. Mixing one’s labor with material gives one the right to *that* material. It does not give one the right to other material that other people have mixed their labor with in the same way.

    Assumes a “duplication is equivalent to production” framing. Duplication is not equivalent to production. If not for the labor and intellectual homesteading of the creator, the copier would not have the same product.

    Cars and houses are both material goods, so, no, of course separate laws are not needed for both. IP is not material, so the same laws don’t apply. Simply ignoring obvious distinctions such as this does not make them go away, Kerem.

    If you want your property rights in those goods recognized by the state, you better have deeds, titles, etc. Same with intangibles like corporations – if you want your equity recognized you better have your stock certificates. Same with IP.

    Published: January 20, 2010 5:50 PM

  • pro-IP-libertarianpro-IP-libertarian

    Stephan-

    Correction: I should say that I agree with most of your recommendations for improving the current patent system, not your recommendations for doing away with all forms of IP.

    Published: January 20, 2010 5:53 PM

  • Nate YNate Y

    What on Earth is “intellectual homesteading”?

    Seems similar to the concept of “sex with my imaginary girlfriend”.

    Published: January 20, 2010 6:01 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    This simply *assumes* that copying an invention (as opposed to independently discovering it) is stealing. It is not. The inventor will still have his invention, as long as the original invention is only copied, and not stolen.

    This reaches to the exlusion issue (beach house & llamas) discussed in the other thread. The duplication does effect the creator’s ability to use (including sell) his property.

    I’m afraid Rothbard is simply mistaken here.

    I think so too, but for a different reason. When real property is homesteaded we accept the state recognizing and granting a monopoly. Same for intellectual homesteading – IP. IP is even more flexible, since it allows someone who wants the property to license it, homestead similar use property themselves, or wait for it to expire. With real property homesteading if you want the production from a particular piece of property you are out of luck, and that is perpetual.

    Published: January 20, 2010 6:10 PM

  • RussRuss

    pro-IP-libertarian wrote:

    “Duplication is not equivalent to production. If not for the labor and intellectual homesteading of the creator, the copier would not have the same product.”

    Yeah. So? The copyer still used his own materials, which he owned, and did not steal the materials of the inventor. So there is no theft.

    “If you want your property rights in those goods recognized by the state, you better have deeds, titles, etc. Same with intangibles like corporations – if you want your equity recognized you better have your stock certificates. Same with IP.”

    OK. This somehow means that putting a copyright notice in a book actually means that people are not allowed to copy it?

    Published: January 20, 2010 6:11 PM

  • pro-IP-libertarianpro-IP-libertarian

    Nate Y-

    What on Earth is “intellectual homesteading”?

    Seems similar to the concept of “sex with my imaginary girlfriend”.

    It’s a natural law approach to IP rights discussed in another thread. Under a Lockean or natural law approach to physical property homesteading is when you acquire property by mixing it with your labor or enclosing it. Similarly, IP can be thought of as “intellectual homesteading”, or acquiring a property by mixing it with your labor – creation, design, planning, thinking, etc.

    It avoids some of the absurdities of the “duplication/copying is production” framing.

    Published: January 20, 2010 6:16 PM

  • RussRuss

    pro-IP-libertarian wrote:

    “The duplication does effect the creator’s ability to use (including sell) his property.”

    No, it doesn’t. It affects the creator’s desires (e.g. the desire to make money by selling the invention under monopoly protection). The creator can still make direct use of the property (e.g. he can still use the flux capacitor he invented to travel into the future).

    “Same for intellectual homesteading – IP.”

    The problem with “intellectual homesteading” is that it ignores the whole reason why homesteading is necessary; scarcity. Homesteading is a convention that deals with the problem of who gets what scarce goods by the simple expedient of “first come, first served”. But since IP is not scarce, the whole concept of homesteading is unnecessary with respect to it.

    “IP is even more flexible, since it allows someone who wants the property to license it, homestead similar use property themselves, or wait for it to expire.”

    I’ve never understood why people think that time-limiting the possession of IP is reasonable, but not for physical property. At least those who think that IP ownership should be perpetual are being consistent; absurd, but consistent.

    Published: January 20, 2010 6:22 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    Yeah. So? The copyer still used his own materials, which he owned, and did not steal the materials of the inventor. So there is no theft.

    Not quite. It would be pretty funny on the first day I parked my herd of llamas on the front lawn of your beach house. But something tells me after a week or so you would start to consider it something akin to theft. Same thing with me broadcasting my polka show over your showtunes show on the same radio frequency. Something tells me your advertisers would want listeners to actually hear their ads. These are the exclusion issues we discussed before.

    Published: January 20, 2010 6:25 PM

  • Nate YNate Y

    Russ says:

    “So what if current law believes that the buyer is legally bound? There’s no debate about that; what we’re debating about is whether these laws are just. Appeals to the status quo are meaningless.”

    We’re of the same mind.

    Published: January 20, 2010 6:40 PM

  • ShayShay

    Here’s an angle rarely touched on in these endless blog discussions: if IP really is property that’s worth a lot, why aren’t IP holders paying enormous property taxes each year on it?

    Published: January 20, 2010 6:41 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    The problem with “intellectual homesteading” is that it ignores the whole reason why homesteading is necessary; scarcity. Homesteading is a convention that deals with the problem of who gets what scarce goods by the simple expedient of “first come, first served”. But since IP is not scarce, the whole concept of homesteading is unnecessary with respect to it.

    No, IP is scarce. Otherwise you wouldn’t spend time copying it. If it wasn’t scarce if someone complained you would just go pluck a substitute from the tree of infinite IP.(The “tree of infinite IP” representing the non-scarcity.)

    Look at music file sharing. There are all these free services where musicians say you can have their music for free. Controversy over, right? You don’t have to copy anyone’s music without permission. But that’s the thing, not everyone wants the free music. They want to copy the music protected by IP. Why? Because a lot of it is good. Good IP is scarce.

    This confusion is all due to the “duplication/copying is equivalent to production” framing. Just because something is easily duplicated doesn’t mean that it isn’t scarce. Duplication is NOT production.

    I’ve never understood why people think that time-limiting the possession of IP is reasonable, but not for physical property. At least those who think that IP ownership should be perpetual are being consistent; absurd, but consistent.

    IP is a different kind of property. Technology changes, past a certain point in certain areas new IP has replaced or leapfrogged the old. That said, with some changes perpetuity could work as well.

    Published: January 20, 2010 6:43 PM

  • ACAC

    securinginnovation.com

    Published: January 20, 2010 6:46 PM

  • StrangerStranger

    “Here’s an angle rarely touched on in these endless blog discussions: if IP really is property that’s worth a lot, why aren’t IP holders paying enormous property taxes each year on it?”

    Because it doesn’t need to be connected to a road and sewage system?

    IP producers pay income and estate tax.

    Published: January 20, 2010 7:11 PM

  • MashuriMashuri

    Not quite. It would be pretty funny on the first day I parked my herd of llamas on the front lawn of your beach house. But something tells me after a week or so you would start to consider it something akin to theft.

    Talk about a straw man. A more accurate analogy would be you parking your herd of llamas on your own front lawn, with me then knocking on your door demanding a royalty because I parked a herd of llamas on my front lawn before you.

    Published: January 20, 2010 7:39 PM

  • VictorVictor

    I’m not ready to abolish all IP protections just yet, but I do agree that patent trolling can be abusive. I also agree that the procedure to obtain a patent in the United States is absurdly inefficient. So I would suggest the following reform:

    Abolish patent examinations and create a single, nationwide (or even multinational) invention registry, analogous to the trademark registry. An inventor could register his/her invention for a nominal fee, and then seek injunctive relief against persons who copy the invention — but only if the invention had been “placed into commerce” before or, say, two or three years after registry.

    I know, the two or three year window is arbitrary, and the definition of placing an invention into commerce might be a bit slippery — but this system would be absolutely transparent and would also get the government out of the business of reviewing patent applications and issuing letters patent.

    It would also eliminate the oppressive costs associated with filing and obtaining a letter patent.

    And it would curb patent trolling by requiring an inventor to bring his or her invention to market within a reasonable time after the idea is registered.

    Published: January 20, 2010 8:00 PM

  • RussRuss

    pro-IP-libertarian,

    In the context of IP, or anything else property-related, I understand “scarce” to mean that the item in question cannot be used at the same time by more than one person. In this sense, IP is not scarce, since more than one person can use it simultaneously.

    And don’t tell me that this isn’t true, because the creator cannot sell it as he intended if others copy it. I’ve addressed that before. That is not “use”; that is a business plan. A creator has every right to expect that he will be able to use his creation. He does not have every right to expect that he will be able to make a lot of money by monopolizing the right to copy it.

    Published: January 20, 2010 8:11 PM

  • StrangerStranger

    “In the context of IP, or anything else property-related, I understand “scarce” to mean that the item in question cannot be used at the same time by more than one person. In this sense, IP is not scarce, since more than one person can use it simultaneously. ”

    In that case, money is not scarce, and the banks should run 0% reserves. In fact they can spend all their depositors’ money, since obviously they are not using it at this time.

    Published: January 20, 2010 8:19 PM

  • RussRuss

    Stranger,

    *rolling eyes*

    OK, my bad. Scarce is when two people can’t *possess* the same item at the same time. Two people can have copies of the same information at the same time, which makes it effectively possessing the same IP at the same time, which makes IP not scarce.

    Why is it that the difference between intellectual “property” and normal property is so obvious, until people figure out that they can make obscene amounts of money by pretending that they’re the same thing?

    Published: January 20, 2010 8:44 PM

  • StrangerStranger

    “OK, my bad. Scarce is when two people can’t *possess* the same item at the same time. Two people can have copies of the same information at the same time, which makes it effectively possessing the same IP at the same time, which makes IP not scarce.”

    Okay, so I can print 1 trillion U.S. dollars copies since they are not scarce because two people can have copies at the same time.

    Inflationism at work.

    Published: January 20, 2010 8:50 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Pro-IP:

    “I agree with most of your recommendations as well.”

    Well, great!

    Victor:

    ” I’m not ready to abolish all IP protections just yet, but I do agree that patent trolling can be abusive.”

    Well, trolling is permitted. It’s not an abuse of the system. See my post Patent Trolls and Empirical Thinking. However, a working requirement (as I proposed) would reduce trolling.

    “I also agree that the procedure to obtain a patent in the United States is absurdly inefficient.”

    I don’t think it’s inefficient. Or rather, that’s not its problem. If anything it’s too cheap. Anyway we don’t want to make things the state should not be doing efficient. I don’t want more efficient tax collectors or narcotics police. If they have to exist I’d rather them be less effiicent. Same with the PTO.

    “So I would suggest the following reform:

    Abolish patent examinations and create a single, nationwide (or even multinational) invention registry, analogous to the trademark registry. An inventor could register his/her invention for a nominal fee, and then seek injunctive relief against persons who copy the invention — but only if the invention had been “placed into commerce” before or, say, two or three years after registry.”

    This is not a good idea. First, trademarks applications *are* substantively examined. If you don’t have substantive examination of the patent application you can’t know if it’s novel or non-obvious. So if you don’t know that, why would you allow an injunction, just because the patent covers your product? That doesn’t prove that it’s novel or non-obvious. I think what you have in mind is the idea of a petty patent, which I mention in my article. This patent is not examined, just registered; but then there is no presumption of validity. You have to sue on merits to get it recognized before you can get damages or an injunction. But as I note above, I am not sure the petty patent system make any significant improvement in the patent system–that is, that it will reduce its cost and injustice.

    “this system would be absolutely transparent and would also get the government out of the business of reviewing patent applications and issuing letters patent.”

    Giving someone a right to get an injunction for an idea which doesn’t have to be shown to be novel or non-obvious would make the system much more injust. It would result in even more patents issued.

    “It would also eliminate the oppressive costs associated with filing and obtaining a letter patent.”

    The costs are not oppressive. I wish they were higher. I wish they were infinite.

    “And it would curb patent trolling by requiring an inventor to bring his or her invention to market within a reasonable time after the idea is registered.”

    A working requirement would do this. Anyway, trolling is not the problem. It’s the *legitimate* use of the patent system.

    Published: January 20, 2010 9:25 PM

  • MagnusMagnus

    Okay, so I can print 1 trillion U.S. dollars copies since they are not scarce because two people can have copies at the same time.

    Your argument fails. If the bills you print were receipts for commodity money, then printing bills that were redeemable for specie you didn’t have would be fraud.

    If you are a government, however, you grant yourself the unilateral power to print bills that are redeemable for nothing but more paper, and then declare that you have the sole power to print them, and then declare that everyone must accept them as payment.

    None of which is remotely just, in a free market society or anywhere else.

    The fact that you are relying on such transparently false arguments tells me that you have no real solution to the core problem in your position on IP — that patterns are non-rivalrous.

    Published: January 20, 2010 9:41 PM

  • StrangerStranger

    The only problem with patents is that another inventor who independently arrives at the same invention cannot get the same protection. In fact he will be forbidden from independent production.

    Copyrights do not do this, and for this reason Rothbard supported them for the protection of inventions. They are also essentially cost-free to enforce since one never has to look up whether the invention has been registered before.

    Published: January 20, 2010 9:51 PM

  • StrangerStranger

    “Your argument fails. If the bills you print were receipts for commodity money, then printing bills that were redeemable for specie you didn’t have would be fraud.”

    But the people aren’t using the specie, so it doesn’t matter. It isn’t scarce.

    Published: January 20, 2010 9:53 PM

  • MagnusMagnus

    But the people aren’t using the specie, so it doesn’t matter. It isn’t scarce.

    In a free, non-fraudulent monetary system, the paper is a substitute for specie. Trading bills is a safer, more convenient method of trading specie.

    In a free, non-fraudulent economy, there is no such thing as the unique power to create by fiat a paper currency that’s redeemable for nothing and can be printed ad infinitum. Cartel banking, as we have today, requires the twin mandates that, under penalty of force, (a) everyone must accept such paper as money, and (b) no one else can print more.

    Specie is obviously rivalrous. Therefore, paper substitutes for specie are equally rivalrous. And risk-based notes that provide a right of re-payment in specie (or in its paper substitute) are also rivalrous.

    Published: January 20, 2010 10:34 PM

  • Curt HowlandCurt Howland

    Kerem Tibuk, you wrote,
    “These are not “labor theory of value” but “labor theory of property”. I suggest you study a bit on the Lockean/Rothbardian theory of property a bit.”

    You completely misunderstood to what I was referring. It wasn’t your “these” at all. Thank you for your suggestion, but it doesn’t fit the facts.

    Published: January 20, 2010 10:50 PM

  • Curt HowlandCurt Howland

    “copying without the consent of the owner is aggression against property.”

    Then the owner is more than welcome to keep that property away from others.

    To release that property, and then expect no one to learn from it, is insane.

    Published: January 20, 2010 10:56 PM

  • RussRuss

    Stranger,

    WTF does counterfeiting have to do with IP?

    Stranger wrote:

    “But the people aren’t using the specie, so it doesn’t matter. It isn’t scarce.”

    The specie would be scarce if it existed (and therefore were not fraud). Multiple people could not possess a given quantity of gold at the same time. I hope this won’t be taken as incivility, but your arguments are feeble.

    Stranger wrote:

    “The only problem with patents is that another inventor who independently arrives at the same invention cannot get the same protection. In fact he will be forbidden from independent production.

    Copyrights do not do this, and for this reason Rothbard supported them for the protection of inventions. They are also essentially cost-free to enforce since one never has to look up whether the invention has been registered before.”

    Firstly, how can you tell whether another person independently invented the invention, or copied it? People would just lie and say they re-invented it. Secondly, even if you could get around the first problem, in order to enforce such copyrights, you would still have to keep a registry of who was an independent co-inventor, so that they could be exempted from enforcement.

    Published: January 20, 2010 11:04 PM

  • Nate YNate Y

    Not to be a jackass but Stranger’s posts just keep getting…stranger.

    Hiyo!!

    Published: January 21, 2010 1:41 AM

  • DixieFlatlineDixieFlatline

    Stranger was always different but he really jumped the shark about a month or so ago.

    With regards to intellectual homesteading, is that when I mix my brain with my brain?

    If I already own my brain, how can I homestead it? Aren’t I already the defacto first owner, and perpetual owner under natural law already?

    The pro-IP folks continue to manufacture all sorts of abstractions to support and defend IP. What they cannot do is propose a consistent and rational property rights theory, and that is because all IP is a monopoly claim on the property of others.

    As Stephan has explained many times in painstaking detail, it’s illogical to claim an IP property right, if that property right interferes with existing non-IP property rights. To draw from Lockean homesteading, in order to override Lockean homesteading is contradictory.

    If IP rights trump my right to use my blank DVD as I wish, then I don’t have full control of my blank DVD now do I?

    And so the pro-IP crowd, proposes a property rights system, which undermines property rights.

    Is it any wonder that many pro-IP folks are also minarchists, and believe that the way to protect property rights, is to violate property rights with a monopoly state?

    Double think abounds. I swear I read this blog to see what sort of characters are online these days.

    Published: January 21, 2010 2:20 AM

  • Kerem TibukKerem Tibuk

    Regarding the civility of arguments on this blog please follow the link and read the exchanges between “Lord Buzungulus, Bringer of the Purple Light” “Silas Barta” and Kinsella’s reaction to the whole exchange as both a part of argument and a moderator.

    http://blog.mises.org/archives/011042.asp

    Published: January 21, 2010 3:31 AM

  • Kerem TibukKerem Tibuk

    I don’t want this to turn into a personal thing but Kinsella and I go back a while. He has some moral failings but I wont get into those.

    The problem is the logical fallacies he uses when he argues because that part is relevant to the ideas that are debated here.

    Kinsella mostly uses straw man in his arguments and he engages in debate on the comments section just to build his straw man.

    That is the reason he provokes Objectivists on IP. He knows Objectivist are sensitive to anarchism and use strong and emotional arguments. And he wants to build the straw man argument that “IP is not possible in a free society without a government” and “IP is an invention of the state and not a natural outcome”.

    Look at Mike Hubbard’s posts where he both denounces anarchy and IP socialism and you can see Kinsella succeeds on some level.

    Also the reason he engaged me on this thread is the same. To be build a different straw man.

    He perfectly knows that I find patent laws unjust and not compatible with property rights which includes IP as legitimate property.

    Notice where he says, “Kerem Tibuk does not seem to realize this would eviscerate patent law, since patent law does not require copying; ” as if I didnt say “abolish all the patent laws”. I am not proposing something that would cause another thing in the future. I am outright calling for the outcome.

    Also notice when he says “Kerem: yes, so you admit copyright should last forever”. as I didn’t say it outright that there can not be a time limit regarding property rights.

    The straw man here is, as if I am making contradicting arguments and he is the one catching me doing it. Also one of Kinsella s favorite straw man is, treat others like they approve every piece of IP legislation there is. You complain about the legislation too, but he answers you as if you are supporting the legislation just because you are not on the IP socialism band wagon.

    I debated many people here and I write extensively. I challenge anyone to find my contradictions. I will welcome anyone who does this because all my goal in this life is to remove my contradictions. That is why I became an anarcho capitalist from a minarchist.

    And that is why I am interested in IP: Not because I am obsessed with it, or my work is somehow related like being an artist or a patent attorney. I am interested in a general and just property theory and IP socialism contradicts it. The sad thing is instead of improving on Rothbards ethics, people here is putting a dynamite under it by this IP socialism.

    Also I find this banding together thing amusing. I am an an-cap that is also an atheist and I am well used getting people gang up on me. How many people do you think there are that share all my views?

    I don’t care about that a bit and I will never complain about it or become aggressive because of it. But I wont ask anyone who shares my views to back me up either. Because I care about ideas not winning an argument. As I said if someone can show me my inner contradictions I will be indebted to him.

    Published: January 21, 2010 3:53 AM

  • GilGil

    “If IP rights trump my right to use my blank DVD as I wish, then I don’t have full control of my blank DVD now do I?” – DixieFlatline

    If I can’t spray a hail of bullets into a crowd of innocent people then I don’t fully own my machine gun.

    Published: January 21, 2010 4:46 AM

  • Peter SurdaPeter Surda

    Dear pro-IP-libertarian:
    > Duplication is not equivalent to production.
    Duplication is a metaphor, it is not an empirical phenomenon.

    > … the copier would not have the same product.
    The only reason that you claim that it is “the same product” is that it appears “too similar” to you, or has the same utility. This is a result of subjective evaluation rather than objective reality.

    Published: January 21, 2010 4:56 AM

  • Peter SurdaPeter Surda

    Dear pro-IP-libertarian:
    > The duplication does effect the creator’s ability to
    > use (including sell) his property.
    So does the selling of substitutes, finding ways of increasing productivity or criticising the features of the product. It implies that the creator owns his market share.

    Published: January 21, 2010 4:59 AM

  • Peter SurdaPeter Surda

    Dear pro-IP-libertarian,
    > No, IP is scarce …
    This is why I dislike the word “scarce”. It leads to confusion. IP is non-rival, consumption does not decrease supply.

    Published: January 21, 2010 5:08 AM

  • Kerem TibukKerem Tibuk

    Peter,

    “The only reason that you claim that it is “the same product” is that it appears “too similar” to you, or has the same utility. This is a result of subjective evaluation rather than objective reality.”

    You keep claiming IP is not part of objective reality unlike a tangible thing, but I don’t think you know what you actually are implying.

    You are actually implying that if nobody ever read Harry Potter after Rowling wrote it, it wouldn’t exist. That is a far reach from the fact that if Rowling didn’t exist, Harry Potter wouldn’t exist.

    Do you think there is an independent source that proves whether a tangible thing exists or not, other than senses and human mind?

    If Harry Potter depends other humans minds to exist, why doesn’t an apple depend on the humans minds to exist?

    What qualities of tangible and intangible goods differ regarding their existence?

    I said this before.

    If you keep going on with this and apply it consistently you will need to reject objective reality in everything including your own existence. Maybe after that you may come to the conclusion that your ability to think proves your existence as a Frenchman did long ago or you may not and wonder if you really exist or not.

    Published: January 21, 2010 5:26 AM

  • Peter SurdaPeter Surda

    Dear Kerem,

    > You keep claiming IP is not part of objective reality
    > unlike a tangible thing, but I don’t think you know what
    > you actually are implying.
    I am afraid it is the opposite. You, who claims IP is a part of objective reality does not understand all the consequences that follow.

    > You are actually implying that if nobody ever read
    > Harry Potter after Rowling wrote it, it wouldn’t exist.
    No. I am implying that, apart from interpretations in people’s heads (whether Rowling or the readers), which are not empirical, Harry Potter does not exist. It is an abstraction, a metaphor, that we use to describe our thought processes.

    > Do you think there is an independent source that
    > proves whether a tangible thing exists or not, other
    > than senses and human mind?
    No, I don’t. However, we can assume that there is just one external reality (whether we know it’s features or not) independent of people. Whereas the thoughts of people are specific to each individual and always unique. To claim the contrary would be to allege that all people’s minds are connected in some sort of collective consciousness.

    > If Harry Potter depends other humans minds to exist,
    > why doesn’t an apple depend on the humans minds
    > to exist?
    Because apple, should it actually exist, is an external factor. Absent some assumptions, we obviously cannot know whether “the” apple is the same object for separate people, but that would mean each of us live in a different world. Such a theory is useless, we must therefore reject it.

    > What qualities of tangible and intangible goods differ
    > regarding their existence?
    The ones are external, the others internal.

    > If you keep going on with this and apply it
    > consistently you will need to reject objective reality in
    > everything including your own existence.
    Yes and no. As I said above, indeed absent certain assumptions we have no way of knowing that external reality is objective. However, that would invalidate a lot of useful things, such as the ability of humans to interact with each other. I am prepared to accept this axiom on the grounds of usefulness and the absence of alternatives. However, I am not prepared to make an assumption that humans share collective consciousness. The alternative sounds perfectly reasonable.

    Cogito ergo sum is, in my opinion, indeed sufficient to demonstrate the existence of self. Obviously, one cannot inductively demonstrate the existence of external from this axiom. But again, from the existence of the external, one cannot inductively demonstrate the identity of the internal among different people.

    Published: January 21, 2010 6:02 AM

  • Kerem TibukKerem Tibuk

    Peter,

    “No. I am implying that, apart from interpretations in people’s heads (whether Rowling or the readers), which are not empirical, Harry Potter does not exist. It is an abstraction, a metaphor, that we use to describe our thought processes.”

    Do you think there is a difference between the two proposition that says,

    “If Rowling didn’t exist Harry Potter doesn’t exist.”

    and

    “Even though Rowling already wrote Harry Potter, if any other person didn’t see it it doesn’t exist.

    It seems you are equating two different things. I want to make clear if there is a distinction between the two in your mind.

    “No, I don’t. However, we can assume that there is just one external reality (whether we know it’s features or not) independent of people. Whereas the thoughts of people are specific to each individual and always unique. To claim the contrary would be to allege that all people’s minds are connected in some sort of collective consciousness.”

    Firstly it is a non sequitur to claim that peoples minds must be connected in some sort of collective consciousness, from the possibility of production of exact copies of one thing. One source can be copied endlessly and we can easily claim they are the same as opposed being just similar. Copies are dependent on the source to exist but no collective consciousness is necessary. If we needed the whole society to produce (not reproduce but produce) the source then you might have had a point.

    And secondly, even if you think copies are unique in some way that doesnt change the fact that they are dependent on the source. Yes, after associating yourself with Harry Potter, you may form some unique memory or a slightly modified copy of the original in your head but you still need to associate yourself with Harry Potter.

    As I have pointed out before, this is the same as taking my apples and making yourself a unique apple pie. Yes you apple pie is unique because you mixed some of your own unique ingredients and other people who take the apples all can make unique apple pies different then yours. But this doesn’t change the fact that you needed my apples to make your apple pie in the first place.

    What you are claiming is, because you change the source slightly this negates my ownership all together, but this doesn’t follow causality. My ownership comes first. Copying can come only after and cause comes before the effect, not vice versa.

    Also the uniqueness of copies is not applicable to many things. There is nothing unique regarding a illegal copy of a song on your hard drive. The patterns of 0’s and 1’s is exactly the same. And even if you changed the encoding, the result is not unique at all. Some people may prefer to change the source in their copying but many do not want to. They want the exact same movie, or song and of course they dont want to pay for them.

    “Because apple, should it actually exist, is an external factor. Absent some assumptions, we obviously cannot know whether “the” apple is the same object for separate people, but that would mean each of us live in a different world. Such a theory is useless, we must therefore reject it.”

    IP if it means anything has to be externalized. So that difference is meaningless. And it is also useless to claim that IP is not part of the objective reality. If IP can cause a relevant change in the chain of causality it is part of the objective reality.

    “Yes and no. As I said above, indeed absent certain assumptions we have no way of knowing that external reality is objective. However, that would invalidate a lot of useful things, such as the ability of humans to interact with each other. I am prepared to accept this axiom on the grounds of usefulness and the absence of alternatives. However, I am not prepared to make an assumption that humans share collective consciousness. The alternative sounds perfectly reasonable.”

    You are making an arbitrary value judgment by claiming the acceptance of objective reality in tangible things are useful but acceptance of IP as a part of objective reality is not useful. There is no objective ( see you can not excape from objective reality) reason for the distinction.

    Published: January 21, 2010 6:34 AM

  • Peter SurdaPeter Surda

    Dear Kerem,

    > Do you think there is a difference between the two
    > proposition that says, …
    Yes, there is. First of all, both of them can be interpreted in multiple ways, so I need to reformulate them (see below). Furthermore the first one revolves around causality, and the other one around identity. These are two separate issues (as demonstrated on the analogy with a graph with two axes).

    > If Rowling didn’t exist Harry Potter doesn’t exist.
    The modified version lacking the ambiguity would be: If Rowling didn’t exist, then the books, movies, etc, wouldn’t exist either. This does not prove that she produced an immaterial good, what its extent is and whether she owns it.

    > Even though Rowling already wrote Harry Potter, if
    > any other person didn’t see it it doesn’t exist.
    The modified version would be: Even though Rowling already wrote Harry Potter, each individual’s interpretation of it is unique and distinct from the interpretation that is in Rowling’s head.

    > Firstly it is a non sequitur to claim that peoples minds
    > must be connected in some sort of collective
    > consciousness, …
    First of all, you are to a very small extent correct. There is no necessity for a collective consciousness, the alternative would be that all minds work exactly the same way. Again, an unproven and highly doubtful condition.

    > … from the possibility of production of exact copies
    > of one thing.
    The only reason one would have to claim it is exact is that it appears similar enough to him. There is no reason to believe that there is even such a thing as “exact” copy. That’s an unproven assumption (axiom). All the possible measurements available to him undoubtedly show that these are two distinct objects.

    > One source can be copied endlessly and we can
    > easily claim they are the same as opposed being
    > just similar.
    The hypothetical existence of exact copy is an axiom. To paraphrase yourself, you pulled it out of your ass. There is no reason for making that assumption, other than you need it for your theory to be valid. The danger of inductive reasoning.

    > Copies are dependent on the source to exist but no
    > collective consciousness is necessary.
    You jump from the issue of identity to the issue of causality. A separate issue, which so far you have not conclusively addressed. I am not addressing the rest of your post dealing with causality, because I deal with that elsewhere. Note, I do not claim that causality never leads to property, rather that it either sometimes doesn’t, or absurd conclusions follow. I reject the causality principle not because it is always false, but because it it sometimes false.

    > The patterns of 0’s and 1’s is exactly the same.
    Again, this only follows after one accepts the axiom that exactness. Which is, to paraphrase yourself, purely utilitarian and positivistic one.

    > IP if it means anything has to be externalized.
    This does not actually mean anything. This only means that there is a causal relationship between your thinking and an external object. This does not demonstrate the existence of any external immaterial good. Or, for that matter, the difference between an immaterial good and immaterial externality.

    > If IP can cause a relevant change in the chain of
    > causality it is part of the objective reality.
    Again, this only demonstrates a causal relationship. It does not demonstrate identity.

    > You are making an arbitrary value judgment by
    > claiming the acceptance of objective reality in
    > tangible things are useful but acceptance of IP as a
    > part of objective reality is not useful.
    This is the problem with inductive reasoning. I create an axiom, but you make three! I make mine that that which is empirically observable is objective. You make the axioms that:
    – that which is empirically observable is objective
    – that which you think but cannot observe is objective too
    – causality is a sufficient condition for ownership

    Published: January 21, 2010 7:20 AM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Kerem Tibuk:

    Regarding the civility of arguments on this blog please follow the link and read the exchanges between “Lord Buzungulus, Bringer of the Purple Light” “Silas Barta” and Kinsella’s reaction to the whole exchange as both a part of argument and a moderator.

    Tibuk, instead of devolving this to boring meta-arguments and distractions, just be civil. So much easier on everyone.

    I don’t want this to turn into a personal thing but Kinsella and I go back a while. He has some moral failings but I wont get into those.

    Ha! Thanks for this. You Objectivists just keep helping make yourself look like ridiculous cultist robots. Unbelievable.

     

    That is the reason he provokes Objectivists on IP. He knows Objectivist are sensitive to anarchism and use strong and emotional arguments.

    Why, why, how dare I use strong arguments that I know Objectivists won’t like. What am I, some big meanie?

    And he wants to build the straw man argument that “IP is not possible in a free society without a government” and “IP is an invention of the state and not a natural outcome”.

    Straw man? It’s a reasonable argument that a huge, state-created legislative scheme that never existed until the state, well, legislated it, would not be, um, legislated in a free society that did not have, um, legislation. Sort of like taxes, antitrust law, and the Patriot Act.

     

    He perfectly knows that I find patent laws unjust and not compatible with property rights which includes IP as legitimate property.

    How dare I disagree with an Objectivist!

    Notice where he says, “Kerem Tibuk does not seem to realize this would eviscerate patent law, since patent law does not require copying; ” as if I didnt say “abolish all the patent laws”.

    Oh, I can’t keep you IP fascists’ ad hoc “nuances” straight; there is no coherent reason to oppose patent but favor copyright (see Rand on this), or whatever imaginary system you think you have in your head that you think you think is legitimate.

     

    Also notice when he says “Kerem: yes, so you admit copyright should last forever”. as I didn’t say it outright that there can not be a time limit regarding property rights.

    Yes… you admitted you believe in extending copyright to infinity… and I said you admitted it, which was true… and now you are … upset that I truthfully stated a fact. Interesting. I think it’s worth saying you admitted it b/c it highlights to observers how utterly insane is the pro-IP view if you try to take it seriously. So thank you for engaging in your own reductio.

    I debated many people here and I write extensively. I challenge anyone to find my contradictions.

    Oh, there are many: pretending you support reason, while arguing like a robotic guppy; pretending you favor property rights, while supporting laws that undermine them; pretending you oppose the state, while favoring the (state) legislation needed to create copyright; favoring copyright but not patent (or do I have your contradiction backwards?); and so on.

    Published: January 21, 2010 10:56 AM

  • Nate YNate Y

    Gil says:

    “If I can’t spray a hail of bullets into a crowd of innocent people then I don’t fully own my machine gun.”

    So you seriously contend that digital media is as dear as a person’s body/life? The world must be a dark place under this mindset. The suffering and violations increase almost infinitely with this outlook.

    Published: January 21, 2010 11:14 AM

  • MagnusMagnus

    If I can’t spray a hail of bullets into a crowd of innocent people then I don’t fully own my machine gun.

    This is wrong, but more importantly, the way in which it is wrong highlights a major source of the errors committed by pro-IP thinking.

    It’s a basic principle of freedom that we are all free to do what we want with our property, up to the limit encountered when one interferes with others and their rights.

    In this case, the bullets interfere with the peoples’ use of their own bodies, which we can all agree they own. You can in general shoot your own gun however you want, but not in a way that the bullets hit innocent people.

    This is because the shooting of the gun and the uses that people make of their bodies are mutually exclusive — people can’t both be (a) healthy and (b) shot, at the same time. The bullets interfere with the use and enjoyment that people make of the bodies. Therefore, peoples’ bodies are, in a sense, rivalrous with flying bullets.

    The copying of a book doesn’t interfere with anything other than the author’s market share. The author still has his copy, which he can do with as he wants. Even if the copyist doesn’t sell the copy on the market, the idea behind copyright is that the copy displaces the purchased copy that someone (even the copyist) would have bought, if the desire for the book had not been satisfied with a copy.

    There’s no other possible form of interference with uses of property going on when a book (or song or whatever) is copied. The only effect of copying is on the market, or the potential sales, that the holder of the so-called IP right claims he was not able to make.

    It should be rather obvious that no one has a property interest in preserving a preferred market share. You don’t own your customers. You don’t have the right to interfere with other vendors’ opportunities to enter the market, and attempt to satisfy people’s market desires with alternative goods and services. Locking out the competition is the essential feature of an un-free market.

    None of the pro-IP crowd here has really addressed the nature of rivalrous objects and uses, and how that rivalrousness defines the scope of legitimate property rights.

    Also, despite all of Mr. Tibuk’s protestations about being so interested in finding the truth without contradiction, he still has not answered my prior question about his Robinson Crusoe scenario.

    Let’s say Friday comes to Crusoe’s island, and is allowed to stay there as a guest of Crusoe for some period of time, during which time Friday reads the short story Crusoe has written, learns to use Crusoe’s unique calendar, and observes Crusoe’s new and creative ways of productive farming and fishing.

    But, after a month or so, Crusoe tells Friday to leave, and being a great respecter of property, he does. Friday lands on the next island, where they welcome him openly. Friday then shares with the islanders all that he knows how to do, which is a lot. He shows them how to keep Crusoe’s special calendar, how to fish and farm better, etc. He recites from memory the short story that Crusoe wrote (and let him read), and the islanders incorporate it into their mythology and teach it to their children. Friday then dies of dysentery.

    Then, a year or so later, Crusoe paddles over to the second island, and discovers the various uses to which the islanders have put his writings and technologies.

    Does Crusoe have the right to use whatever force is necessary to prevent the islanders from farming, keeping a calendar and re-telling the story?

    Really? Because that’s what IP is — Crusoe rolling onto an island of people he never met, and busting up the joint because of all the “property” the islanders supposedly stole.

    Published: January 21, 2010 2:51 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Gil:

    “If I can’t spray a hail of bullets into a crowd of innocent people then I don’t fully own my machine gun.”

    The prohibition on your shooting bullets is not a limitation on your ownership of your gun. It’s a limitation on what action you can perform–whether the action uses your own gun and bullets or those of another person. Ownership has nothing to do with hit. (See my comments here.) The reason I may not shoot people (with whatever gun) is just a specific application of the genernal notion that I may not act so as to cause the invasion of the borders of another’s property; I may not invade their property borders; I may not interfere with the physical integrity of their property; I may not use their property without their consent. I may not trespass. All these things are actions that employ some means, of course, but the means need not be owned by me, and it is irrelevant whether they are (see also Intellectual Property and the Structure of Human Action). So the prohibition on my action is a result of presupposing the validity of property rights in scarce resources.

    For you to make an analogous case about IP, to argue that my putting a pattern on my own DVD may also be prohibited, you have to argue that the action itself is trespass. That is, that my impatterning my own DVD somehow invades the borders of someone else’s property right.

    There are only two ways this is so. First, if the DVD is not my property. But this is false, per assumption. The other way is if my action somehow invades the borders of some other scarce resource that another person owns. But clearly it does not. I am not interfering whatsoever in your abiltiy to use your own body and resources.

    The only remaining way out of this is to say well, it doesn’t trespass against any physical property you own, but it does trespass against your property in a certain idea, since it prevents you from using and exploiting that abstract, disembodied idea as you see fit–it uses the idea without your permission. And this is true. It does use the idea without your permission. But this is only trespass if you own the idea. Which is the question under consideration when IP rights is debated: so it’s merely a circular, question-begging assumption. It is a totally invalid argument.

    Published: January 21, 2010 2:59 PM

  • Silas BartaSilas Barta

    The prohibition on your shooting bullets is not a limitation on your ownership of your gun. It’s a limitation on what action you can perform–whether the action uses your own gun and bullets or those of another person …

    Any argument that merely involves relabeling things is an automatic fail.

    (Which includes the quoted one above)

    If I can’t do X with my machine gun, that is a limitation on my right to use the machine gun. It doesn’t matter if it arises from someone else’s rights, or the lack of a specific right to do X.

    If you want to make a crucial, insightful argument, these relabeling tricks just don’t work.

    Published: January 21, 2010 3:16 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Person,

    If I can’t do X with my machine gun, that is a limitation on my right to use the machine gun. It doesn’t matter if it arises from someone else’s rights, or the lack of a specific right to do X.

    If you want to make a crucial, insightful argument, these relabeling tricks just don’t work.

    Silas, the trick is in people who say that there is nothing wrong with IP’s infringement of property rights since after all, your property rights are limited in all sorts of ways. This is a common argument; and it is wrong.

    The reason I am not able to use my bullets to kill you is because using them in this manner invades the borders of your own property–your body. Using my blank DVD to impattern it in a certain way, however, does not use your body or other scarce resources, so you can’t say the two limitations are analogous. To make them analogous you have to presuppose that you own the pattern itself, which is question-begging.

    Now do you get it?

    Published: January 21, 2010 3:50 PM

  • Peter SurdaPeter Surda

    Grudgingly, I have to agree with Silas. The argument presented this way is circular. It might be in future possible for me or someone else to “fix” this problem, however so far the approach has failed.

    There is a slightly similar issue however, one that Silas has failed to address. The only way to conclude that trespass in IP occurred is to observe the trespasser. With rival goods, including EM transmissions, this is not necessary, because a trespass on those leads to an observable change occurring at objects in the rightful owners’ possession or at their premises. For example, a stolen car is observable by the lack of the car in the parking space. EM inteference is observable by receiving a different wave than the one expected.

    Besides the practical question of how to monitor everyone, there is a more fundamental problem. If the only way to conclude trespass is that the trespasser performs a certain action (regardless of his location), any action whatsoever can be claimed to be a trespass. Why is “copying” singled out as the only action that leads to such conclusion? Why not any writing? Why not any attempt to create a machine, or a drug? Why not laying on one’s bed? Or blowing one’s nose?

    Published: January 21, 2010 3:59 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Surda, what argument is circular? I disagree, if you are talking about mine about action etc. To say an action (or use of property, whatever) is prohibited because it infringes on the property of others, in typical cases such as trespass, does indeed presuppose the validity of property rights in scarce resources. It presupposes only that invasion of the borders of others’ owned scarce resources, is prohibited. Thus, if we assume both sides to the debate accept this, it does not follow that we have to accept that it’s okay to prohibit a use of property that does NOT amount to such trespass. This argument is not circular in the slightest. The argument simply points out that B does not follow from A.

    Published: January 21, 2010 4:28 PM

  • RussRuss

    I think that Gil’s point was; normal property rights also imply limitations on what others can do with their own property. Any right implies and imposes an obligation on others. That is why we should be so careful about discovering or inventing new “rights”, because every right involves a duty. That duty may be positive, or negative, but it is still there, lurking under the surface like the Loch Ness monster.

    EM spectrum rights infringe on peoples’ normal property rights, so by a strict application of normal property rights, we’d have to forego the usefulness of radio broadcasts as well. The only ways you can get around this problem are by 1) pretending that you’re homesteading something real, and so pretending that EM spectrum rights are the same as normal property rights, or 2) extending the concept of property to include exclusive use of EM spectrum.

    Similarly, any meaningful IP would have to extend the concept of property past that of (normal property+EM spectrum) rights. Arguing that IP is wrong because it violates normal property rights misses the whole point. When we debate IP, what we are debating is whether the concept of property should be extended past normal property rights or not.

    I think this opens up the concept of IP as conceivable, but it is not enough to justify it on its own. Something more is needed. I don’t believe that Silas’ IP=EM argument is sufficient to justify IP for reasons I went into in the last thread. I don’t think it’s any better than EM=normal property arguments.

    Published: January 21, 2010 4:46 PM

  • BalaBala

    Stephan,

    ” Why, why, how dare I use strong arguments that I know Objectivists won’t like. ”

    No. The problem is that Objectivists find your arguments flawed at their root (as I do too). I have said this before and I repeat that now – You are (in effect) assuming that only scarce (and hence physical) entities can be “property” in order to “prove” that ideas and patterns cannot be “property”.

    I have no love lost for Kerem Tibuk and find his “arguments” flawed at their root (as I find yours), but to use his flaws to hide your own is not very helpful.

    Published: January 21, 2010 6:28 PM

  • RussRuss

    Bala wrote:

    “…You are (in effect) assuming that only scarce (and hence physical) entities can be “property” in order to “prove” that ideas and patterns cannot be “property”.”

    I agree, Stephan. In Randian terms, you are smuggling in as an assumption that which is to be proved; that only scarce goods can qualify as property. In your own terms, you’re begging the question, every bit as much as you accuse others of doing.

    And in order to save EM rights, you assume that EM communication channels are goods, when really they are just an abstraction; they are no more real than patterns are.

    Published: January 21, 2010 7:00 PM

  • pro-IP-libertarianpro-IP-libertarian

    Mashuri-

    Talk about a straw man. A more accurate analogy would be you parking your herd of llamas on your own front lawn, with me then knocking on your door demanding a royalty because I parked a herd of llamas on my front lawn before you.

    That’s a stretch. Just illustrating how exclusion applies to this debate.

    What’s really great is you thinking you should be able to copy and sell someone else’s work because it “isn’t scarce”. Yet somehow you are able to profit by selling it (Huh? Thought it wasn’t scarce.) and you mysteriously only want to copy theirs, not someone who doesn’t object from the limitless supply. (Huh? If it isn’t scarce why can’t you just copy from someone that doesn’t care about you copying?)

    Published: January 21, 2010 10:39 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    In the context of IP, or anything else property-related, I understand “scarce” to mean that the item in question cannot be used at the same time by more than one person. In this sense, IP is not scarce, since more than one person can use it simultaneously.

    This is additional framing to support the “duplication is production” framing. Exclusion is a big component of other forms of property, like the real estate and radio frequency examples we discussed. If we took exclusion away from those forms of property all kinds of serious problems would result. You homestead real property so you can exclude others and profit/use/etc. You homestead intellectual property so you can exclude and profit/use/etc. as well.

    And don’t tell me that this isn’t true, because the creator cannot sell it as he intended if others copy it. I’ve addressed that before. That is not “use”; that is a business plan. A creator has every right to expect that he will be able to use his creation. He does not have every right to expect that he will be able to make a lot of money by monopolizing the right to copy it.

    And you can still use you beach house, just walk around the llamas and their droppings. It doesn’t matter if you want to make it a bed and breakfast and profit that way – that’s just your “business plan”. You just need to think of a better one. I’m sure with the right business plan you’ll be able to find guests that don’t mind llama droppings.

    Homesteading in real property has a natural rights foundation, homesteading in intellectual property does as well.

    Published: January 21, 2010 10:57 PM

  • RussRuss

    pro-IP-libertarian wrote:

    “What’s really great is you thinking you should be able to copy and sell someone else’s work because it “isn’t scarce”. Yet somehow you are able to profit by selling it (Huh? Thought it wasn’t scarce.)”

    Ummm… if you’re talking about something like a downloaded file, then why would anyone want to buy it from me after I download it? They could just as easily download it themselves.

    If you’re talking about copying an idea for an invention, then my selling would be selling *material* in the form of the invention, not just the idea itself. After all, anybody could also copy an idea, just as they could copy a file. And the *material* that I would sell is scarce, even by your standards, I would hope.

    “…and you mysteriously only want to copy theirs, not someone who doesn’t object from the limitless supply. (Huh? If it isn’t scarce why can’t you just copy from someone that doesn’t care about you copying?)”

    Huh? You’re making no sense now.

    Before, you mentioned a “tree of infinite IP”. Even if there were such a thing, you’d still have to go to the tree to pluck ideas. Instead, the “tree” is the inventor; he doesn’t have infinite IP, but maybe a few good ideas. So instead, to copy an idea, a person has to go to him (or rather, his inventions). That doesn’t make the IP scarce. It makes the “trees” scarce.

    I really don’t get this supposed moral objection to “stealing” an idea from somebody. When a person makes a material object, he may put a lot of work into it, just as a creator of IP would. Then he sells it and makes money off it. Once. Why can’t it be the same with IP? Why must an IP creator be allowed to sell his creation over and over again? After all, a creator of a material object only gets to sell it once.

    Published: January 21, 2010 10:58 PM

  • RussRuss

    pro-IP-libertarian wrote:

    “You homestead intellectual property so you can exclude and profit/use/etc. as well.”

    No. Normal property requires exclusivity to be used or possessed. But IP doesn’t require exclusivity for it to be possessed or used in a direct sense. If I am reading an ebook, for instance, that does not stop you from reading the ebook as well. Profit from monopoly selling of IP would require exclusivity; but profit is not a use, it is a desired outcome.

    “And you can still use you beach house, just walk around the llamas and their droppings. It doesn’t matter if you want to make it a bed and breakfast and profit that way – that’s just your “business plan”. You just need to think of a better one. I’m sure with the right business plan you’ll be able to find guests that don’t mind llama droppings.”

    Ah. But what if another person wants to “use” my beach house by tearing it down, dumping it into a land fill, and building a putt-putt golf course there? There cannot be a beach house and a golf course on the same exact stretch of land. This material possession must be held exclusively to get my desired use out of it. It is a “rivalrous” good. IP is not.

    It is as if you decide you like my beach house property, so use your Copy-anator (made by Doofenschmirtz Evil Incorporated, TM, Patent Pending), and instantly you are teleported to some parallel dimension where my beach house property is still there, but I’m not. You then tear down *your* new beach house, put up the putt-putt golf course, and I could not rightly object, because that does not deny me the use of my copy of the beach house property. If I should complain that I should be able to use the force of law to prevent you from using your Copy-anator, because I wanted to sell my beach house property to you for a profit, well… that’s tough for me. Who ever said that you are obliged to buy my property, when you could simply Copy-anate it?

    “Homesteading in real property has a natural rights foundation, homesteading in intellectual property does as well.”

    No. You’re ignoring the differences in nature of normal property and IP. Since their natures are so different, the rights attaching to them must be different too.

    Published: January 21, 2010 11:17 PM

  • pro-IP-libertarianpro-IP-libertarian

    Russ-

    Ummm… if you’re talking about something like a downloaded file, then why would anyone want to buy it from me after I download it? They could just as easily download it themselves.

    Just convenience, possibly liability. Like those guys that sell bootleg DVDs on the street.

    If you’re talking about copying an idea for an invention, then my selling would be selling *material* in the form of the invention, not just the idea itself. After all, anybody could also copy an idea, just as they could copy a file. And the *material* that I would sell is scarce, even by your standards, I would hope.

    Duplication still isn’t equivalent to production. You are simply claiming a more substantial copying equals production. The invention wouldn’t exist (in this form) without the actual production of the creator.

    Before, you mentioned a “tree of infinite IP”. Even if there were such a thing, you’d still have to go to the tree to pluck ideas. Instead, the “tree” is the inventor; he doesn’t have infinite IP, but maybe a few good ideas. So instead, to copy an idea, a person has to go to him (or rather, his inventions). That doesn’t make the IP scarce. It makes the “trees” scarce.

    Not necessarily. It makes good “trees” or inventors – and by extension their creations – scarce. Remember the music file example – there are plenty of free music services out there, yet still people want to copy the protected music because it is of good quality.

    I really don’t get this supposed moral objection to “stealing” an idea from somebody. When a person makes a material object, he may put a lot of work into it, just as a creator of IP would. Then he sells it and makes money off it. Once. Why can’t it be the same with IP? Why must an IP creator be allowed to sell his creation over and over again? After all, a creator of a material object only gets to sell it once.

    This reaches to the idea of IP as intellectual homesteading. And also the concept that duplication does not equal production. The creator creates (homesteads) something that did not exist before, the duplicator duplicates something that already did.

    As far as profit is concerned, why should you be able to rent out your beach house again and again? It’s because you have invested your time and/or capital in the property, you own it, and you have a right to exclude. And that’s why it’s akin to stealing if I park my llamas on it and prevent you from using it.
    ———
    Anyone else concerned-

    Won’t be able to respond anymore right now. Will try to get to other comments and responses later if people are still following the thread.

    Published: January 21, 2010 11:26 PM

  • RussRuss

    pro-IP-libertarian wrote:

    “Duplication still isn’t equivalent to production. You are simply claiming a more substantial copying equals production. The invention wouldn’t exist (in this form) without the actual production of the creator.”

    Well, yes and no. In one sense, duplication is equal to production. When GM or Ford *produce* cars, they’re not re-inventing every car. But I know what you mean. A duplicator doesn’t have to undergo the same labor as the original inventor, writer, whatever. I agree. My answer is a resounding… So what?

    “The invention wouldn’t exist (in this form) without the actual production of the creator.”

    Yes, I agree. Again, so what?

    “It makes good “trees” or inventors – and by extension their creations – scarce. Remember the music file example – there are plenty of free music services out there, yet still people want to copy the protected music because it is of good quality.”

    OK (although part of the reason for this is simply because radios don’t play these bands, so people don’t know about them, not because they’re not good). Anyway, even if you were right, so what?

    “The creator creates (homesteads) something that did not exist before, the duplicator duplicates something that already did.”

    You guessed it; so what? Calling it homesteading does nothing for me. I think “intellectual homesteading” is a legal fiction, just like I think EM spectrum homesteading is.

    Your argument does nothing to sway me. Call me immoral if you want to, I don’t care. If you want to sway me, you’re going to have to come up with a consequentialist argument to the effect that without IP, everyone (or at least pretty much everyone) will be worse off. Then I will be willing to accept the fiction of intellectual homesteading, just as I do the fiction of EM spectrum homesteading.

    Published: January 21, 2010 11:40 PM

  • Kerem TibukKerem Tibuk

    Russ,

    “I really don’t get this supposed moral objection to “stealing” an idea from somebody. When a person makes a material object, he may put a lot of work into it, just as a creator of IP would. Then he sells it and makes money off it. Once. Why can’t it be the same with IP? Why must an IP creator be allowed to sell his creation over and over again? After all, a creator of a material object only gets to sell it once.”

    Do you have a problem with conditional exchange, otherwise known as “renting”? Do you not think it is a valid exchange? Do you claim if a person rents some property all the conditions regarding the use of that property (including a time limit where he returns the property) is invalid? And do you think it is somehow wrong for a property owner to gain benefit from his property over and over again by keep renting it?

    And on this issue tangible and intangible property is not different. IP is both rented and sold once, depending on occasion. If you buy a copy of Harry Potter, you are actually renting it on certain conditions. And you pay 10 dollars for it.

    If you want Rowling to sell it only once, you could buy the whole property rights of Harry Potter but I dont know how many billions of dollar she would ask.

    I amazed to see people never ever, put a tangible property in the place of IP and try to think if it made sense while theorizing on IP. Silas Barta sometimes points this out to no avail.

    Published: January 22, 2010 12:44 AM

  • Kerem TibukKerem Tibuk

    “Surda, what argument is circular? I disagree, if you are talking about mine about action etc. To say an action (or use of property, whatever) is prohibited because it infringes on the property of others, in typical cases such as trespass, does indeed presuppose the validity of property rights in scarce resources. It presupposes only that invasion of the borders of others’ owned scarce resources, is prohibited. Thus, if we assume both sides to the debate accept this, it does not follow that we have to accept that it’s okay to prohibit a use of property that does NOT amount to such trespass. This argument is not circular in the slightest. The argument simply points out that B does not follow from A.”

    How is, “IP is not valid because it infringes on the property rights of others” is an independent argument when it depends on the never proven but often assumed assertion that only scarce things can be property?

    Published: January 22, 2010 12:49 AM

  • Kerem TibukKerem Tibuk

    Magnus,

    “It’s a basic principle of freedom that we are all free to do what we want with our property, up to the limit encountered when one interferes with others and their rights.”

    Yes your copying of my movie on your dvd interferes with my property rights regarding the movie.

    Just like you taking my apples and mix them with your property, sugar flour what not, and bake an apple pie.

    Apples are property and IP isn’t you say?

    Welcome to circularity. Otherwise known as assuming your conclusion.

    Published: January 22, 2010 12:55 AM

  • Kerem TibukKerem Tibuk

    Kinsella,

    “Regarding the civility of arguments on this blog please follow the link and read the exchanges between “Lord Buzungulus, Bringer of the Purple Light” “Silas Barta” and Kinsella’s reaction to the whole exchange as both a part of argument and a moderator.
    Tibuk, instead of devolving this to boring meta-arguments and distractions, just be civil. So much easier on everyone.”

    This is not a meta argument or a distraction. My civility has been questioned here and I showed the precedent that was set by you regarding the civility of arguments. Anyone who cares about civilty of debate here can go and check the exchange I linked.

    What you want actually is not civility but respect and I must say that is a very optimistic wish.

    “I don’t want this to turn into a personal thing but Kinsella and I go back a while. He has some moral failings but I wont get into those.
    Ha! Thanks for this. You Objectivists just keep helping make yourself look like ridiculous cultist robots. Unbelievable.”

    I am not an Objectivist. Although I respect Rand very much I know she was a bitter and unpleasant person (probably because of her life experiences) and also she was wrong on anarchy, IP and some other things. I am a natural law libertarian, and austrian an cap and if needed I prefer to be called Rothbardian.

    Also your attitude against Objectivist only shows your character. Your trying to ridicule and gang up on Objectivist is not different then neo cons ganging up on Ron Paul.

    “Oh, I can’t keep you IP fascists’ ad hoc “nuances” straight; there is no coherent reason to oppose patent but favor copyright (see Rand on this), or whatever imaginary system you think you have in your head that you think you think is legitimate.”

    Why don’t you see Rothbard on this. Stranger just quoted from MES above that show exactly why you would oppose patents but favor copyrights. You care more about what Rand thinks then Rothbard, and I am the Objectivist?

    “Yes… you admitted you believe in extending copyright to infinity… and I said you admitted it, which was true… and now you are … upset that I truthfully stated a fact. Interesting. I think it’s worth saying you admitted it b/c it highlights to observers how utterly insane is the pro-IP view if you try to take it seriously. So thank you for engaging in your own reductio.”

    English is not my mother tongue, but I thought “admitting” meant “finally coming clean after an effort to hide something”. That is your straw man. When I say outright what I meant, you still have the nerve to call that admitting as if you caught me.

    “Oh, there are many: pretending you support reason, while arguing like a robotic guppy; pretending you favor property rights, while supporting laws that undermine them; pretending you oppose the state, while favoring the (state) legislation needed to create copyright; favoring copyright but not patent (or do I have your contradiction backwards?); and so on.”

    These are just you assertions and nothing else. If you think that these are pointing out contradictions you have a long way to go to reach intellectual maturity.

    Now, why don’t you call on your fellow IP socialists to an Objectivist blog so they can get your back while you aggravate them?

    Published: January 22, 2010 1:11 AM

  • Nate YNate Y

    Kerem Tibuk ,

    Well at least you acknowledge that, under IP, nobody really buys, sells, exchanges, or trades. Nope. Under the crappy notion of IP, everybody rents. All exchanges come with strings attached. And the strings eventually become chains.

    The fact that you can’t see how this actually undermines property rights is astounding. The answer is right in front of your face man! You’re saying it. You’re using an argument that destroys the notion of IP (under IP essentially everything is rented or comes with conditions) in order to support it. Unreal. This is like someone arguing that the inability to calculate under Socialism actually strengthens the case for Socialism.

    Published: January 22, 2010 1:20 AM

  • Kerem TibukKerem Tibuk

    Well Nate if you do not want strings attached, just dont associate with yourself with people who wants strings attached.

    Or do you think you have right to IP, produced by other individuals?

    Also many IP is exchanged not rented. Very good and valuable IP is expensive so the volume of exchange is low and the volume of rent is high. But you can find a new coming talentless author and buy his IP for a relatively low price.

    I can find you the novel Jimmy Cricket and get all the rights for a penny, but you want Harry Potter dont you? And you dont want to pay do you?

    Published: January 22, 2010 1:31 AM

  • Kerem TibukKerem Tibuk

    A better analogy is of course software.

    You can get linux for free but you want Windows and you argue that you have right to Windows.

    Why is that Nate?

    Published: January 22, 2010 1:33 AM

  • Peter SurdaPeter Surda

    Dear pro-IP-libertarian,

    > Exclusion is a big component of other forms of
    > property, like the real estate and radio frequency
    > examples we discussed.
    The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.

    > If we took exclusion away from those forms of
    > property all kinds of serious problems would
    > result.
    Indeed, because these problems are the result of natural features of rival goods. Yet, if we took away exclusion from non-rival goods, apart from some revenue redistribution and some business models becoming unprofitable there are no other negative effects and a plethora of positive ones. The same results would occur when any artificial monopoly or redistribution scheme were cancelled.

    Published: January 22, 2010 1:42 AM

  • Kerem TibukKerem Tibuk

    Peter,

    “The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.”

    The relationship between an individual and the property he homesteads, doesn’t depend on the nature of the property but only on the nature of humans.

    Why?

    Because an effect can not come before the cause and homesteading, acquiring of property must necessarily come before any arbitrary conditions, thought of, argued, debated or put forth regarding the property owner and his property.

    Otherwise you would reach absurd conclusions.

    Like Peter claims exclusion can only be natural and not based on the decision of the owner. But this implies in the case of abundance of tangible goods, the owner, since there is really no need for natural exclusion, loses his right on the property.

    Imagine Crusoe and Friday. Crusoe worked so efficient and became so productive that he produced tangible goods more than he can possibly consume. And Friday just sat lazily.

    If Peters argument were true, then Crusoe would lose his ownership over the goods that he can not consume and Friday could claim that, just as Peter did. Because there would be no natural rivalry regarding the portion that exceeds Crusoe’s ability to consume other than “the artificial” rivalry initiated by Crusoe’s whim. If you are full to the point that you are going to explode if you ate more, then you are not a rival for the pie that is sitting on the table.

    Of course Peter uses the concepts “trade and use” when he says “It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good” and he thinks he has a escape route.

    But “use” is a very subjective verb. What is “use”?

    When an IP owner still has all the rights and no one copies his IP, can’t we say that in that exact state he is “using” his property, and unauthorized copying prevents him from that exact “use”?

    Or even with trade.

    If the ability to trade is an important aspect,

    Why is it different, when one can not trade a good when he is physically deprived of it, and when can not trade when the copies flood the market? Ability to trade depends on people valuing the good you want to trade, as much as it depends having the good to trade.

    Published: January 22, 2010 3:16 AM

  • Peter SurdaPeter Surda

    Dear Stephan,

    any theory of property restricts the way some people may act. And, if you have two theories that draw the property boundaries differently, each can claim of the other that it limits the way one can use their property. I think you are misled by the distinction between the material and immaterial. From the “meta-theoretical” point of view, there is no reason why this should be relevant.

    That being said, extending property into the immaterial creates a lot of questions and ambiguity which the proponents thereof need to address. Again, from the “meta theoretical level”, there is no reason to assume that exclusivity is an inherent feature of property, that there is such thing as the identity of immaterial goods, that causality always leads to property, that immaterial goods objectively exist despite not being empirically observable and that there is an objective way to define what “copying” is. There are other issues too, but these are my chief objections and so far the IP proponents have failed to provide a satisfactory explanation for any of them. In some individual cases, an IP proponent agrees with me that this or that claim is indeed unfounded.

    Published: January 22, 2010 3:33 AM

  • Peter SurdaPeter Surda

    Dear Kerem,

    > The relationship between an individual and the
    > property he homesteads, doesn’t depend on the
    > nature of the property but only on the nature of
    > humans.
    This is either incorrect or at least misleading.

    > Because an effect can not come before the
    > cause and homesteading, acquiring of property
    > must necessarily come before any arbitrary
    > conditions, thought of, argued, debated or put
    > forth regarding the property owner and his
    > property.
    This makes no sense to me. Of course the relationship depends on the features of the property. You probably mean that some aspects of the relationship do not depend on the features of the property. This is correct, but again which are those that depend and those that do not? You arbitrarily say that exclusivity is the one that does not depend. There is no reason to make this conclusion, unless you need it for you theory to be valid.

    > Otherwise you would reach absurd conclusions.
    Please elaborate.

    > … this implies in the case of abundance of
    > tangible goods, the owner, since there is really no
    > need for natural exclusion, loses his right on the
    > property.
    This is incorrect on several levels, I’ll begin from the end. Your analogy is not a proper match, because in the case of non-rival goods, nobody loses a right. Rather, he never acquires the right to that part that is “stolen” in the first place. It is a homesteading of the unowned by the “thief”. The other reason for the incorrectness is that abundance is a subjective matter. We have no way of knowing if currently the owner considers the resource to be abundant, and if this doesn’t change in the future. Indeed, even if the owner said that he considers it abundant, we have no way of guaranteeing that the abundance is a permanent state of affairs. The third reason is that it is only your interpretation that leads you to the conclusion that the “stolen” part is identical to (or a subset of) that which he already owns. This is not an observable occurrence. As I said several times and you failed to address, this only follows from another axiom whose only reason for being is that you need it for your theory to be correct.

    > But “use” is a very subjective verb. What is “use”?
    This is a very interesing remark from someone who bases his assumptions on the very subjective verb of “copying”.

    Indeed, you are correct. “Use” is subjective. You might recall that I said that with regards to immaterial goods, “use” is a metaphor because we cannot observe it. Even with rival goods, “use” is sometimes subjective and metaphoric. But in order for my theory to be correct, we do not need to determine the “upper” boundary (beyond which there is no use), rather the “lower” boundary (before which use is certain). However, because you base your theory on exclusivity, you need to determine the upper boundary. I claim that this is impossible. You would need to show the point beyond which causality ceases to lead to property, something that you so far avoided.

    > Why is it different, when one can not trade a
    > good when he is physically deprived of it, and
    > when can not trade when the copies flood the
    > market?
    Why indeed? Because in order for the trade to actually occur, both parties need to agree. The absence of agreement of one party leads to non-occurrence of the trade. It is not the non-occurrence of the trade per se that constitutes a right violation, rather only the non-occurrence of the trade despite the presence of a bilateral agreement.

    Published: January 22, 2010 4:07 AM

  • Kerem TibukKerem Tibuk

    Peter,

    “> The relationship between an individual and the
    > property he homesteads, doesn’t depend on the
    > nature of the property but only on the nature of
    > humans.
    This is either incorrect or at least misleading.

    > Because an effect can not come before the
    > cause and homesteading, acquiring of property
    > must necessarily come before any arbitrary
    > conditions, thought of, argued, debated or put
    > forth regarding the property owner and his
    > property.
    This makes no sense to me. Of course the relationship depends on the features of the property. You probably mean that some aspects of the relationship do not depend on the features of the property. This is correct, but again which are those that depend and those that do not? You arbitrarily say that exclusivity is the one that does not depend. There is no reason to make this conclusion, unless you need it for you theory to be valid.”

    Well Peter this is the danger of inductive reasoning.

    There is a natural thing called property. It is not a fantasy that we cooked up. We are analyzing after the fact. And it is a common mistake to get lost and forget what actually really happens when you sit down and theorize on it.

    Property must necessarily come out of homesteading. And for this to happen only one individual is needed. Crusoe, comes across a nature given resource and starts changing its nature and using it to stay alive. This way he start a relationship with the property he homesteads.

    This part is not a wishy washy theory, and not something that we wish to happen but what actually happened, and still happens at some parts of the world. And all the natural law dictates is this process above.

    Now after homesteading another human comes across the individual and his property.

    This individuals, Friday’s, arrival doesn’t, or shouldn’t change the relationship of Crusoe and his property. In fact it is what we call liberty if it doesn’t. Fridays action that are against the wishes of Crusoe, regarding the relationship between Crusoe and his property is what is called “aggression” and there is no objective definition of aggression other than this.

    Why?

    Because establishment of the relationship between Crusoe and his property, the homesteading, doesn’t rely on Friday or any other person. It is natural outcome of the interaction of an individual and a nature given resource..

    Up to this part there is no need to establish a difference between the tangible and the intangible or scarce or non scarce. It doesn’t matter for the property to be an apple or a poem.

    So any other condition regarding the legitimacy of property is purely arbitrary and irrelevant, and against the nature of property.

    “> … this implies in the case of abundance of
    > tangible goods, the owner, since there is really no
    > need for natural exclusion, loses his right on the
    > property.
    This is incorrect on several levels, I’ll begin from the end. Your analogy is not a proper match, because in the case of non-rival goods, nobody loses a right.”

    By the concept of “non-rival good” you are assuming your conclusion. Crusoe’s tangible property that is above the level of his consumption is a non-rival good as much as a novel is non-rival good. That is actually my point.

    “Rather, he never acquires the right to that part that is “stolen” in the first place. It is a homesteading of the unowned by the “thief”.”

    Are you denying the fact that a person, before sharing it with anyone else, can not acquire, or posses or own the poem he thought of? Then what is the meaning of these acquire, posses and own? And why can a person acquire a tangible but not intangible. Are we assuming our conclusion again?

    “The other reason for the incorrectness is that abundance is a subjective matter. We have no way of knowing if currently the owner considers the resource to be abundant, and if this doesn’t change in the future. Indeed, even if the owner said that he considers it abundant, we have no way of guaranteeing that the abundance is a permanent state of affairs.”

    Abundance of tangible goods are as subjective as non scarcity of IP. The essence of non scarce or non rival, is the fact that “the producer does not lose anything”. Well in the case of abundance the owner of the tangible goods do not lose anything either. We can even say he didn’t even own the excesses by the way of your thinking because he had no way of consuming or using it other than the subjective feeling which also would be true for IP:

    “The third reason is that it is only your interpretation that leads you to the conclusion that the “stolen” part is identical to (or a subset of) that which he already owns. This is not an observable occurrence. As I said several times and you failed to address, this only follows from another axiom whose only reason for being is that you need it for your theory to be correct.”

    I don’t really want to get into this because you are literally denying the concept of copying, and I don’t know what to say to that. Copying is an objective concept and it is very much possible and the essence of this great IP debate is the possibility of copying.

    You keep claiming that “you are not actually copying because we have no empirical evidence of the exactness” but I can say a similar thing regarding tangible property,

    “You can not actually claim the apple I took from you to be stolen from you because you can never be sure or empirically show that it was in deed the same apple. It only looks very similar to you”

    “> But “use” is a very subjective verb. What is “use”?
    This is a very interesing remark from someone who bases his assumptions on the very subjective verb of “copying”.

    Indeed, you are correct. “Use” is subjective. You might recall that I said that with regards to immaterial goods, “use” is a metaphor because we cannot observe it. Even with rival goods, “use” is sometimes subjective and metaphoric. But in order for my theory to be correct, we do not need to determine the “upper” boundary (beyond which there is no use), rather the “lower” boundary (before which use is certain). However, because you base your theory on exclusivity, you need to determine the upper boundary. I claim that this is impossible. You would need to show the point beyond which causality ceases to lead to property, something that you so far avoided.”

    Copying is a very objective and definable concept unlike use but I have already dealt with this.

    The rest I can not understand you point. You need to elaborate.

    “> Why is it different, when one can not trade a
    > good when he is physically deprived of it, and
    > when can not trade when the copies flood the
    > market?
    Why indeed? Because in order for the trade to actually occur, both parties need to agree. The absence of agreement of one party leads to non-occurrence of the trade. It is not the non-occurrence of the trade per se that constitutes a right violation, rather only the non-occurrence of the trade despite the presence of a bilateral agreement.”

    That is not the only requirement for trade to occur as I have said. For you to only focus on one show you are trying to find justifications for a conclusion you have already reached.

    Published: January 22, 2010 6:00 AM

  • Peter SurdaPeter Surda

    Dear Kerem,

    > There is a natural thing called property.
    Before there is property, there is the physical. Property requires people. The physical does not. Again, you are making an assumption although there shouldn’t be any need to.

    > It is not a fantasy that we cooked up.
    You consider this axiom to be relevant. I don’t.

    > We are analyzing after the fact. And it is a
    > common mistake to get lost and forget what
    > actually really happens when you sit down and
    > theorize on it.
    As you like to say with regards to other people’s theories, you are assuming what you want to prove.

    > Property must necessarily come out of
    > homesteading.
    This does not determine the scope and conditions of homesteading. This is just rephrasing.

    > And for this to happen only one individual is
    > needed.
    Again, this is just rephrasing. This does not explain anything.

    > Because establishment of the relationship
    > between Crusoe and his property, the
    > homesteading, doesn’t rely on Friday or any other
    > person.
    From my point of view, this is competely irrelevant (unlike e.g. Jay who argues with you about this). However, the features of that which you want to homestead indeed influence the aspects of the homesteading and the property.

    > Up to this part there is no need to establish a
    > difference between the tangible and the intangible
    > or scarce or non scarce. It doesn’t matter for the
    > property to be an apple or a poem.
    There already is one before even the people exist. If a horse eats an apple, that makes the apple uneatable by other animals. However when crows clap their beaks (to use Deefburger’s example), it does not prevent other crows from clapping their beaks in a similar manner. If they are in proximity to each other, they might get annoyed, just like some people do when others “steal” their books, but it does not mean that there is some inherent exclusive aspect in the clapping.

    > So any other condition regarding the legitimacy
    > of property is purely arbitrary and irrelevant, and
    > against the nature of property.
    Already your condition of a human existing is arbitrary.

    > By the concept of “non-rival good” you are
    > assuming your conclusion.
    I do not comprehend this. Are you denying that some goods are non-rival?

    > Crusoe’s tangible property that is above the level
    > of his consumption is a non-rival good as much
    > as a novel is non-rival good. That is actually my
    > point.
    I can only repeat myself. The conclusion is subjective. We have no way of knowing whether this is true and even if it was, if it’s permanent.

    > Are you denying the fact that a person, before
    > sharing it with anyone else, can not acquire, or
    > posses or own the poem he thought of?
    I do not deny this. However, I deny that this also means that he acquires and possesses other poems. You are assuming this does, you are assuming your conclusion.

    > Then what is the meaning of these acquire,
    > posses and own? And why can a person acquire
    > a tangible but not intangible.
    See above. They indeed can. However, this does not magically extend to anything else beyond that which is in his head. Just like ownership of an apple in my hand does not magically extend to the apple that another person is holding in his hands.

    > Abundance of tangible goods are as subjective as
    > non scarcity of IP.
    Kindly consult my previous posts for a demonstration that they aren’t. Alternatively, read below.

    > The essence of non scarce or non rival, is the
    > fact that “the producer does not lose anything”.
    Incorrect. That would be the value theory of property. Non-rivalry is defined in that the supply does not decrease through consumption. Not the value of the supply.

    > I don’t really want to get into this because you are
    > literally denying the concept of copying, and I
    > don’t know what to say to that.
    You don’t need to say anything, rather you can spend your time thinking about this. Try to apply your deductive reasoning to somehow come to the conclusion that identity of immaterial goods exists. Otherwise, it’s just an unfounded assumption. Or try to come up with a way of distinguishing “similarity” and “identity” that is different from “they appear so to me”.

    > Copying is an objective concept …
    I have said several times that if the only way to distinguish copying from non-copying is the thought processes of a specific person, then it cannot be objective. Furthermore I showed you examples where inded only the thought process of a single person determines whether something is a copy or not. Do you have trouble following this argumentation or are you rejecting it merely due to cognitive dissonance?

    > … and it is very much possible and the essence
    > of this great IP debate is the possibility of copying.
    This whole claim rests on an unfounded, utilitarian and positivistic assumption.

    > You can not actually claim the apple I took from
    > you to be stolen from you because you can never
    > be sure or empirically show that it was in deed the
    > same apple. It only looks very similar to you.
    You concentrate on a very minor aspect of the problem and miss the bigger picture. If you steal an apple, subsequently to that I observe the absence of the apple in the place where it was before. There is no need to know whether my neighbours hold an apple in their hands or what some arbitrary person on the other side of the planet was thinking. This of course is insufficient to determine who the thief was, but a theft (or a natural phenomenon leading to depletion of my resources) occurred nevertheless.

    > Copying is a very objective and definable concept
    > unlike use but I have already dealt with this.
    “Copying” is just as arbitrary as “use”.

    > The rest I can not understand you point. You
    > need to elaborate.
    This is odd, because I elaborated several times. You claim that causality always leads to property. I claim that it sometimes does not. So, are children the property of their parents? Is Atlas Shrugged co-owned by Soviet Union? As these are causally related, according to your theory, that must be correct.

    > That is not the only requirement for trade to occur
    > as I have said.
    I don’t understand this. I did not say that something was the only requirement for a trade to occur, but a necessary one. If your assumption was correct, it would mean that trades come to existence by unilateral declaration, in other words one “owns” their market share. Is this what you claim?

    > For you to only focus on one show you are trying
    > to find justifications for a conclusion you have
    > already reached.
    It is exactly the opposite. I am trying to find the lowest common denominator. My approach is to eliminate parts of theory until there is nothing more to remove without the theory losing applicability. You on the other hand build up arbitrary axioms and when it turns out that the concusions you want to reach are unreachable, you come up with another axiom.

    Published: January 22, 2010 7:30 AM

  • MagnusMagnus

    Magnus — “It’s a basic principle of freedom that we are all free to do what we want with our property, up to the limit encountered when one interferes with others and their rights.”

    Kerem Tibuk — Yes your copying of my movie on your dvd interferes with my property rights regarding the movie. Just like you taking my apples and mix them with your property, sugar flour what not, and bake an apple pie. Apples are property and IP isn’t you say? Welcome to circularity. Otherwise known as assuming your conclusion.

    Uh, no.

    My statement about how property rights generally work (that they are as broad as they can be, limited only by infringement) is a general proposition that applies to ANY kind of property right, even to IP, if IP were valid.

    This proposition is not circular because it is true for both IP and ordinary property.

    I mentioned it as a rebuttal to the oft-cited (and wholly erroneous) argument that because rights in things like machine guns are limited, it’s also OK to limit rights in paper and ink and blank DVDs.

    All property rights are limited. That limitation says nothing about the distinction between IP and ordinary property.

    My point, which you conveniently ignored again, is that the only so-called infringement that IP proponents can point to is an infringement on the author’s market share. Copying an article does not interfere with the author’s use of the original in any way.

    When are you going to answer my question about your Robinson Crusoe scenario? Can Crusoe legitimately travel to the second island and use force to stop the islanders, whom he never met, from using the ideas that Friday transmitted to them?

    Sooner or later, you’ll address the issue. I am an optimist that way.

    Published: January 22, 2010 9:10 AM

  • RussRuss

    Kerem Tibuk wrote:

    “Do you have a problem with conditional exchange, otherwise known as “renting”?”

    No, but renting generally involves a contract, which proves that the rentee agreed to the terms of the rentor. Also, only one person can rent an apartment at a time.

    “…If you buy a copy of Harry Potter, you are actually renting it on certain conditions. And you pay 10 dollars for it.”

    If there is no contract that I agreed to, then I didn’t rent the book. I bought it.

    Published: January 22, 2010 10:00 AM

  • RussRuss

    Kerem Tibuk wrote:

    “English is not my mother tongue, but I thought “admitting” meant “finally coming clean after an effort to hide something”. That is your straw man. When I say outright what I meant, you still have the nerve to call that admitting as if you caught me.”

    If you “admit” that X is true, that means that you “acknowledge the truth of” X. An admission of guilt is one possible connotation, but not necessarily what SK meant. I agree that sometimes SK can be a bit abrasive (can’t we all?). But I don’t think he was insulting you here in the way you think he was.

    He was just saying (I think) that you acknowledge that you believe in perpetual IP, which (he believes) is absurd. That’s the trouble with reductio ad absurdem arguments, I’ve found. After reducing something to “absurdity” (in your opinion), you find out that you’ve wasted your time, because the other person does not consider it absurd. He considers it having the integrity to stick to principles, no matter where they might lead.

    Published: January 22, 2010 10:25 AM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Russ:

    “…You are (in effect) assuming that only scarce (and hence physical) entities can be “property” in order to “prove” that ideas and patterns cannot be “property”.”

    I agree, Stephan. In Randian terms, you are smuggling in as an assumption that which is to be proved; that only scarce goods can qualify as property. In your own terms, you’re begging the question, every bit as much as you accuse others of doing.

    Kerem: “How is, “IP is not valid because it infringes on the property rights of others” is an independent argument when it depends on the never proven but often assumed assertion that only scarce things can be property?”

    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. Consider Guido Hülsmann’s comments in his 1997 article Knowledge, Judgment, and the Use of Property, p. 28:

    There can be no doubt that the effect of the increased scarcity of tin will rapidly spread throughout the whole economic system and influence not only all the uses of tin but also those of its substitutes, etc. This process is, however, not best characterized by a coordinative function of prices.

    The fundamental fact of scarcity implies that not every demand for tin can be satisfied. Some people have tin whereas others do not. An increased scarcity of tin implies that some market participants who otherwise could have benefited from tin are now of necessity prevented from using it. If a quantity of tin is sold, then the seller cannot sell it again, regardless of the exchange rate. There is simply no more of this tin left. Whether the seller takes notice of this or not is immaterial. He cannot sell what is no longer in his possession. Moreover, tin does not become scarcer and then this fact can come to be known to someone and lead to adaptations. Rather it is the other way around. The very fact that demand increases means that someone already knows of a more value-productive employment of tin.

    (I discuss this also at note 9 and accompanying text of my Knowledge, Calculation, Conflict, and Law.)

    Now, the fact of scarcity is part of the world. It is this which limits how we can act. The fact is that if there is a scarce resource, A and B cannot both use it at the same time. If they can, there is no scarcity, and no conflict. Conflict can only arise when there is scarcity, and conflict can only be conflict over the use of scarce resources. People say there is conflict over religion, etc., say–nonsense. Religion is the reason why A wants to kill or control B’s body, perhaps, but the conflict is over B’s body–a scarce resource.

    The only question is whether the use of scarce resources will be conflict-free or not. If there are no property rules then the use of scarce resources is precarious and people will waste time in violent struggle rather than in productive use of resources.

    To avoid such conflict and permit peaceful, productive use of scarce resources, property rules can assign ownership to identifiable individuals. As I have explained in What Libertarianism Is, all political and legal systems assign property rights–someone is assigned the legal right to control each particular scarce resource. The libertarian approach is unique in that the assignment is based on a consistent desire to avoid conflict, and so we follow a Lockean type of property assignment rule–the first user of a resource has a better claim, ceteris paribus, than later claimants. Now this is not a complete argument for the libertarian case, and in a libertarian forum where we all agree with this one need not argue for it–but you can see that the very nature and purpose of any property system is to permit the conflict-free use of scarce resources, and that the libertarian approach is the one most consistent with this purpose and nature.

    So: it is not a theory of property that restricts how people may act. It is the omnipresent, undeniable fact of scarcity. A theory of property permits peaceful use of resources, by prohibiting violent struggle over them, which is not productive. The only question is whether the property rules are just or not. If they are all assigned to Donald Trump or the State, then this would technically allow conflict to be avoided but at the cost of injustice. The libertarian thus favors a just rule: assigning property rights in a given scarce resource to the first appropriator thereof.

    This is not a restriction on action. It permits the resource to be used peacefully, and justly.

    Now even the advocates of IP, such as Silas, are too happy to admit that they don’t really favor property rights in mere abstract “ideas”. No, they readily admit it’s only in physical instantiations of the idea. That is, they admit that what they want in their IP theories is to grant to A property rights in all the physical media (say) owned by B1, B2, … Bn. So the real dispute is always about scarce resources. If B owns a piece of plastic (a blank DVD) then the IP advocate wants A to have some property rights in B’s disk. He wants A to have a veto over B’s use of B’s own disk.

    Now, there are many non-libertarian property rights theories–theories that undercut or are contrary to the libertarian-Lockean first-use-first-own rule. This is just one of them. It is not “circular” to point this out. It is not “circular” to be a libertarian, any more than it’s “circular” to be a socialist, communist, theocrat, or IP advocate. They all advocate property assignment rules that differ from the libertarian’s Lockean homesteading rule.

    The attempt to analogize this to the gun shooting or murder prohibition example fails. If A is prohibited from murdering B, this is just a way of restating one application of the libertarian conception of rights: it is saying that B owns his body, and that A’s actions of shooting bullets into it violate’s B’s rights in that scarce resource. To say A is limited in what he may do is to recognize property rights in scarce resources.

    In other words, the libertarian idea is that we do not live by permission. We live by right. We may do anything we wish in life, perform any action, unless it is an unconsented-to use of another’s property. In other words, unjustified interpersonal violence–conflict–is prohibited for the sake of establishing a regime where peaceful, productive use of scarce resources may occur. I can use my gun for anything one can think of: the possibilities are open ended–anything except narrow cases where it would be an act of aggression against others. But it is not as if there are 1,136 permissible things I can do with the gun, each one a “right,” and 17 things I cannot do with the gun. Rather, it’s as if there is an ocean of liberty–open-ended, infinite, with small islands of things that I may not do. The IP advocate has to view us as living by permission: you have those 1,136 things you may do with your gun, and only those things. It is a finite list, fixed at some moment in time. If B thinks of way number 1,137 to use a gun, then he owns this way-to-use-guns. That is to say, he owns all guns in the universe, to the extent they are used for method 1,137. And, they say, this does not harm owner A, since he never had that right in the first place. It doesn’t take away his right to use his gun for method 1,137; he only had homesteaded the first, known, 1,136 ways to use it. In fact, the IP fascist says, A is now better off, since he can learn from 1,137, and get permission for a small fee from B to use his gun in a new way. Everyone wins!

    Except this is the totalitarian way of looking at things. We do not live by permission. Rothbard has explained that there is no right to free speech; it’s just one implication of property rights. In my Against Intellectual Property (p. 53), this is precisely why I pointed out that

    We do not have to have a “right to copy” as part of a bundle of rights to have a right to impose a known pattern or form on an object we own. Rather, we have a right to do anything at all with and on our own property, provided only that we do not invade others’ property borders. We must not lose sight of this crucial libertarian point. If I own a 100-acres of land, I can prance around naked on it, not because the land is imbued with some “right-to-prance-naked,” but because I own the land and it does not (necessarily) violate the property rights of others for me to use my property in this fashion.

    I am restricted in my use of my gun to murder B only because of property rights in scarce resources. Unless you can point to such an act of aggression (trespass), I can use my gun as a means for any action whatsoever. I don’t have to find an enumerated right #1,132 in my bag-of-rights, in my “permissions”, to do it. I can do any action, so long as it is not a use of another person’s property.

    And this is precisely why this is not analogous to the IP case. Pointing out the above as an implication or explication of how libertarian property rights is not circular. It does not assume there are only property rights in scarce resources; rather, it unwinds a theory about allocating property rights in scarce resources. The nature of such a system is what implies that assigning rights in “ideal objects” is really simply a different way of assigning rights in scarce resources–an assignment rule that differs from the libertarian-Lockean one; this is exactly why in my 2000 LRC article on IP explicitly opposed “the Second Homesteading Rule.”

    The IP advocate’s argument is dishonest. He says, well, my IP rule limits your property rights, but so do all property rights. So what’s the big deal? The big deal is that the only limits we recognize are that you may not violate others’ property rights! Murder or normal theft or trespass is obviously an instance of this. But using my own property peacefully is not! The IP advocate needs to show that my use of my own DVD somehow interferes with his own property in his own scarce resources. Obviously, it cannot. So, it fall back on IP itself: it says, well, it doesn’t violate B’s physical property, but it does violate his intellectual property. Hellooooo–THIS is the circularity. The circular reasoning is done by the IP advocates, NOT by the libertarian who is simply a consistent opponent of aggression.

    Published: January 22, 2010 10:58 AM

  • BalaBala

    Stephan,

    ” My contention is that assigning rights in non-scarce things necessarily undermines rights in scarce things. ”

    That does not necessarily make them invalid. That’s where your argument fails miserably.

    Published: January 22, 2010 11:49 AM

  • RussRuss

    Stephan Kinsella wrote:

    “It [your argument] does not assume that ONLY scarce things are property, but it assumes that scarce things ARE property–don’t we all agree on this?”

    Yes. So far, so good.

    “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.”

    Agreed. But as Bala just pointed out, that does not necessarily make rights in non-scarce things invalid. It would just make the concept of property a little more complicated.

    “Since we all agree with rights in scarce things, we should oppose the type of rights-inflation that undermines this.”

    Not necessarily. I believe we should be very cautious about inflating rights, yes, but I also believe there can be instances where this is acceptable.

    For instance, take EM spectrum rights. We used to just have normal property rights, with no EM spectrum rights. Then radio came along. Radio transmission involves transmitters, receivers, and radio waves. That’s pretty much it. Radio “channels” (in the information theoretic sense of the term), are not material things. The concept of a radio “channel” is, in a real sense, just an abstraction. There are no slots in the ether, sitting there, waiting to be grabbed. There are just radio waves emitted by a transmitter. There is no way to get from normal property rights to EM spectrum rights; you’d be violating the rights of some transmitter owners. So, we extended the concept of property so that now, instead of a thing having to be a material good in order to qualify as property, it has to be “scarce”, since radio channels qualify. In effect, EM spectrum rights are a “rights-inflation” of normal property rights that undermines rights in normal property (radio transmitters, to be precise). But we all live with this, because radio communication is useful. Since we did this rights-inflation from normal property to (normal +EM spectrum) property, I don’t see any a priori reason why we can’t also rights-inflate from (normal +EM spectrum) property to (normal +EM spectrum+IP) property. I just think that a good consequentialist case needs to be made before doing so, which none of the pro-IP people are doing, IMHO.

    Published: January 22, 2010 12:41 PM

  • Scott DScott D

    Bala:

    [blockquote]” My contention is that assigning rights in non-scarce things necessarily undermines rights in scarce things. ”

    That does not necessarily make them invalid. That’s where your argument fails miserably.[/blockquote]

    It is much the same conception as the idea of positive vs. negative rights. Positive rights cannot coexist with negative rights. Any “right” that in some way compels action to the benefit of a group of people violates the negative rights that originate with self-ownership.

    This is where the socialists try to weasel their way through with much the same arguments that the pro-IP libertarian uses to justify their position. The money taken for government welfare programs is not theft because the benefits to society accrue back to the individual who is taxed, the socialist says. Functionally, this is little different from the arguments that claim the utilitarian benefits of an IP system.

    Arguments that claim a natural rights origination for IP cannot explain why intellectual property trumps physical property. They also consistently fail to define what property is, let alone justify rights in it. As soon as you accept rights in patterns (or instantiated patterns), you are obligated to explain away an unending list of things which no sane person would claim are property, but which by your theory MUST qualify as property, simply by virtue of the ambiguous concept of creation.

    Published: January 22, 2010 1:27 PM

  • MagnusMagnus

    Radio “channels” (in the information theoretic sense of the term), are not material things. The concept of a radio “channel” is, in a real sense, just an abstraction.

    No, that’s not true. EM radiation is real. It’s behavior can be measured, predicted and observed. It is a phenomenon of the physical, material world. It is not abstract in the slightest.

    “Channels” are merely modes of use of EM radiation that permit multiple users engage in non-rival communication. They are not abstract at all either.

     

     

    Published: January 22, 2010 1:34 PM

  • RussRuss

    Scott D,

    I can’t see how IP would be a positive right. Normal property rights are obviously negative rights. Likewise, EM spectrum rights are negative rights; all they say is that others with transmitters must leave the bandwidth that is owned alone (i.e. not transmit on that frequency), or pay the owner for the privilege of doing so. Likewise, all that IP rights says is that people must leave the IP alone (not copy it) without the permission of the owners. IP doesn’t create a positive obligation on other people; it just puts limits on what they can do with their property, like other property rights do.

    “Arguments that claim a natural rights origination for IP cannot explain why intellectual property trumps physical property.”

    This is trivially simple. IP rights would trump physical property for the same reason that EM spectrum rights do; because they have to in order for EM spectrum (or IP) rights to exist.

    Published: January 22, 2010 1:40 PM

  • RussRuss

    Magnus wrote:

    “…EM radiation is real. It’s behavior can be measured, predicted and observed. It is a phenomenon of the physical, material world. It is not abstract in the slightest.”

    EM radiation is real, yes. I’ve never said otherwise.

    “”Channels” are merely modes of use of EM radiation that permit multiple users engage in non-rival communication. They are not abstract at all either.”

    No, a radio channel is abstract. As I said, there are no slots in the ether, waiting for somebody to homestead them, as land can be homesteaded. When you broadcast radio waves on a certain frequency, and claim that you have “homesteaded” that frequency, you are not homesteading anything real. You are simply emitting photons at frequency X (and claiming that you have the exclusive right to do so).

    An analogy might help. Take the example of TCP sockets. These are not “real”, either. In the “real” physical world, there are no physical partitions or slots in a wire that these sockets occupy. There are only electrons going through the wire (or photons through a fiber optic cable, etc.). TCP sockets are an abstraction, an abstract protocol layer built on top of the physical protocol layer of Ethernet (or whatever). Likewise, radio channels are an abstract protocol layer built on top of the physical layer of radio waves.

    Published: January 22, 2010 2:04 PM

  • Scott DScott D

    Russ:
    [blockquote]For instance, take EM spectrum rights.[/blockquote]

    I utterly reject the notion of EM spectrum rights on practical, real-world grounds. The use and proliferation of wireless networks and devices in the “public” spectrums demonstrates how this supposedly BIG PROBLEM is really a trivial one, solved by ingenuity and mutually beneficial cooperation rather than the application of law.

    If you look at the deployment of a wireless network, what you see is territorial control over the particular frequency range used. It is not the frequency that is homesteaded, but the transmission medium that constitutes the physical location.

    What happens when two people who live very close together try to use their own wireless networks? Here, we have an easy solution, already anticipated by the vendors of the wireless devices. One of the people will choose a different channel and the conflict is resolved.

    I could go into further technical discussion of how small modifications to existing communications technology would make this situation analogous for broadcasting, but it’s a bit off-topic. What I’m getting at is that consistent application and respect for property rights, along with the incentives for cooperation and the benefits that would accrue from decentralized, distributed communications networks, we no more need to assign ownership in the EM spectrum than ownership rights in the market.

    To reiterate, EM spectrum rights are not necessary and only serve as a diversion to the argument over IP. My big picture view is that we would be immeasurably better off without monopoly rights in EM communications.

    Published: January 22, 2010 2:07 PM

  • Scott DScott D

    Oops, forgot that I need to use html tags rather than bb code for the formatting.

    Published: January 22, 2010 2:09 PM

  • RussRuss

    Scott D wrote:

    “To reiterate, EM spectrum rights are not necessary and only serve as a diversion to the argument over IP. My big picture view is that we would be immeasurably better off without monopoly rights in EM communications.”

    It would be great if all broadcast technology played nice together. But that depends on people playing nice together, and that doesn’t always happen. What if you are at a Starbucks, let’s say, and you are happily surfing, along with a bunch of other people, over Starbuck’s complimentary wireless network. Then some enviro-whacko nutjob who doesn’t like Starbuck’s paper cups pulls into the parking lot and turns on his jammer, set to the frequency that the wireless network is on. Then what? Call law enforcement officers? What can they do, if Starbucks has no EM spectrum rights to that store?

    No, sorry, if we want to communicate over radio waves without any random dickhead ruining it for everyone else, then we need EM rights.

    Published: January 22, 2010 2:26 PM

  • Scott DScott D

    {blockquote}I can’t see how IP would be a positive right.{/blockquote}

    Actually, I never claimed that IP is a positive or a negative right. I was only putting out the analogy where conflicting rights cannot coexist, at least not with any degree of consistency.

    {blockquote}This is trivially simple. IP rights would trump physical property for the same reason that EM spectrum rights do; because they have to in order for EM spectrum (or IP) rights to exist.{/blockquote}

    So you are saying that IP rights (and EM spectrum rights) are, in fact, superior to physical property rights? Where does self-ownership stand in that hierarchy?

    Published: January 22, 2010 2:27 PM

  • Scott DScott D

    Screw the blockquotes.

    Russ:

    “Then some enviro-whacko nutjob who doesn’t like Starbuck’s paper cups pulls into the parking lot and turns on his jammer, set to the frequency that the wireless network is on.”

    Too easy.

    Maybe Mr. Nutjob turns his car stereo up to nosebleed levels. Or he whips out an Uzi and starts firing. In all of these cases, he is emitting things that travels over to you and have a harmful effect on your property. So you call the Ancapland Security Agency and they force him to stop. No EM property rights are needed, just consistent application of physical property rights.

    Published: January 22, 2010 2:37 PM

  • RussRuss

    Scott D wrote:

    “Actually, I never claimed that IP is a positive or a negative right. I was only putting out the analogy where conflicting rights cannot coexist, at least not with any degree of consistency.”

    OK. I agree that conflicting rights can’t coexist, but I don’t think that poses a problem. Is it a conflict of our property rights, if I want to fire my machine gun into your mailbox, but can’t do so thanks to your property rights? I don’t think so. I just think that I don’t have the right to do anything I want with my machine gun. There’s no conflict there, though.

    (Sorry I “stole” your machine gun idea, Gil. How much do I owe you for that? *grin*)

    “So you are saying that IP rights (and EM spectrum rights) are, in fact, superior to physical property rights? Where does self-ownership stand in that hierarchy?”

    I don’t buy into IP rights, at least not yet, anyway. I am not absolutely opposed to them either, though. I do believe in EM spectrum rights, and do believe that they prevent others from using their transmitters anyway they like, if that would violate the EM spectrum rights. I see this as similar to my machine gun argument above.

    As for self-ownership, gee, how do I explain this? If I say that self-ownership trumps everything else, even normal property rights, that would imply that I have a right to punch dents in your mailbox, even though I don’t have a right to shoot it. (I don’t believe I have a right to punch dents in your mailbox, BTW.) All I can say is that I believe I have the right to do anything with my body or my property that doesn’t violate your rights to your body or property. I don’t consider that a conflict.

    Published: January 22, 2010 2:47 PM

  • ABRABR

    I see EM rights as a right to use a volume of space in a particular way. Ditto for landing and take-off rights that an airport requires.

    Ditto also for gardening and sunlight. If I homestead a property in the middle of nowhere, and plant a garden, and then X comes along and homesteads a neighbouring property, and builds a giant wall that blocks the sun from my garden, then he has infringed on my property. Yeah or nay on this one?

    Published: January 22, 2010 2:54 PM

  • RussRuss

    Scott D wrote:

    “Screw the blockquotes.”

    Hehehehehe…..

    “Too easy.”

    Yeah. Taking down strawmen usually is easy.

    “Maybe Mr. Nutjob turns his car stereo up to nosebleed levels. Or he whips out an Uzi and starts firing. In all of these cases, he is emitting things that travels over to you and have a harmful effect on your property. So you call the Ancapland Security Agency and they force him to stop. No EM property rights are needed, just consistent application of physical property rights.”

    Sure, for the instances that you described, physical property rights are all you need. But what about the example that I *actually* gave, instead of the ones you put in my virtual mouth? What about somebody jamming radio signals? How does that “have a harmful effect on your property”? Granted, it would cause interference, but it would not “have a harmful effect on your property” unless those radio waves your wireless emitted are also your property. So what then, without EM spectrum rights? Without them, who are you to say that the nut-job doesn’t have a right to transmit on that frequency, just like you do?

    Published: January 22, 2010 2:57 PM

  • Scott DScott D

    “How does that “have a harmful effect on your property”?”

    It is disrupting communication within my property. Just like blaring his stereo disrupts verbal communications. What I’m arguing is that no one should have a guaranteed right to freely broadcast signals that have a disrupting effect on another’s property. This means that Mr. Nutjob can’t erect a giant jamming tower on his property and blanket his city in white noise, but it also means that anyone who does want to use high-energy broadcasting on a frequency in use by people within the affected area must either contract for it or use other means, such as directional transmissions.

    Why would the market be suddenly unsuitable for solving this problem?

    Published: January 22, 2010 3:22 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Bala,

    ” My contention is that assigning rights in non-scarce things necessarily undermines rights in scarce things. ”

    That does not necessarily make them invalid.

    it does for those who favor property rights in scarce tings; or who think they are compatible. Or, it highlights that the IP advocate is favoring a rule other than Lockean appropriation for homesteading scarce resources. Sure, it’s useful.

    But as Bala just pointed out, that does not necessarily make rights in non-scarce things invalid.

    It makes it unlibertarian, and, b/c I’m a libertarian–most people here are –that means it’s invalid.

    I believe we should be very cautious about inflating rights, yes, but I also believe there can be instances where this is acceptable.

    For instance, take EM spectrum rights. We used to just have normal property rights, with no EM spectrum rights. Then radio came along. Radio transmission involves transmitters, receivers, and radio waves. That’s pretty much it. Radio “channels” (in the information theoretic sense of the term), are not material things. The concept of a radio “channel” is, in a real sense, just an abstraction. There are no slots in the ether, sitting there, waiting to be grabbed. There are just radio waves emitted by a transmitter. There is no way to get from normal property rights to EM spectrum rights; you’d be violating the rights of some transmitter owners. So, we extended the concept of property so that now, instead of a thing having to be a material good in order to qualify as property, it has to be “scarce”, since radio channels qualify. In effect, EM spectrum rights are a “rights-inflation” of normal property rights that undermines rights in normal property (radio transmitters, to be precise). But we all live with this, because radio communication is useful. Since we did this rights-inflation from normal property to (normal +EM spectrum) property,

    This isn’t rights inflation. IF it is, it’s invalid. If Em homesteading is legitimate, then it’s not inflation. If it’s not legitimate, we should not favor it. Easy.

    Scott D:

    It is much the same conception as the idea of positive vs. negative rights. Positive rights cannot coexist with negative rights. Any “right” that in some way compels action to the benefit of a group of people violates the negative rights that originate with self-ownership.

    This is where the socialists try to weasel their way through with much the same arguments that the pro-IP libertarian uses to justify their position. The money taken for government welfare programs is not theft because the benefits to society accrue back to the individual who is taxed, the socialist says. Functionally, this is little different from the arguments that claim the utilitarian benefits of an IP system.

    Ding ding ding ding ding–we have a winner.

    Published: January 22, 2010 3:50 PM

  • RussRuss

    Scott D wrote:

    “What I’m arguing is that no one should have a guaranteed right to freely broadcast signals that have a disrupting effect on another’s property.”

    But it wouldn’t have a disrupting effect on your property. The radio waves from your property would still be emitted just as they were before, and radio waves from Starbuck’s property would still be received just as they were before. They would just be superimposed with the nutjob’s radio waves. Your and Starbuck’s equipment would still work just fine. Of course, it would render communication between your and Starbuck’s equipement impossible, but what makes you think you have the right to expect that, without EM spectrum rights?

    “This means that Mr. Nutjob can’t erect a giant jamming tower on his property and blanket his city in white noise, but it also means that anyone who does want to use high-energy broadcasting on a frequency in use by people within the affected area must either contract for it or use other means, such as directional transmissions.”

    By saying “anyone who does want to use high-energy broadcasting *on a frequency in use* [emphasis added] by people *within the affected area* [emphasis added] must either contract for it…” you are in effect saying that whoever starts broadcasting on that frequency in the area in question first has dibs on that right, which is effectively EM spectrum rights, isn’t it?

    Also, if somebody doesn’t want any radio waves impinging on his property, can he sue a radio station? Even a perfect directional signal with bleedover into other areas would still need to pass through other’s property to reach some receivers. So radio waves would only be able to reach receivers on property right next to the radio station, if people didn’t want the directional waves to go through their property.

    “Why would the market be suddenly unsuitable for solving this problem?”

    I’m not saying that the market couldn’t handle it (although I’m not an anarchist). I’m simply saying that some sort of property rights system above and beyond simple property rights is needed to guarantee useful radio communication. The EM spectrum rights could be enforced by the market, I suppose.

    Published: January 22, 2010 3:54 PM

  • Scott DScott D

    “Is it a conflict of our property rights, if I want to fire my machine gun into your mailbox, but can’t do so thanks to your property rights? I don’t think so. I just think that I don’t have the right to do anything I want with my machine gun. There’s no conflict there, though.”

    Conflict isn’t perhaps the most concise word to use here. Substitute the word contradiction. Now, to rephrase what I said earlier, positive and negative rights contradict each other. Material and intellectual property rights contradict each other. You cannot apply one consistently without violating the other.

    Now, you have no positive right to attack mailboxes, but neither is there a negative right which says you cannot fire your machine gun, or even aim it at targets and fire it. Where negative rights does take effect is when you try to use your machine gun, which you have full ownership and control over in almost any circumstance, to attack my mailbox. My negative right not to have my mailbox destroyed is the same right you enjoy to own and shoot your gun. Without my right of mailbox integrity, you do not have a right to keep me from smashing your machine gun, or perhaps demanding it in restitution. The only limitation placed on your ownership right is the one that ensures the greatest possible degree of ownership and control while remaining consistent and universally applicable.

    “As for self-ownership, gee, how do I explain this? If I say that self-ownership trumps everything else, even normal property rights, that would imply that I have a right to punch dents in your mailbox, even though I don’t have a right to shoot it.”

    What I’m saying is that self-ownership is not a higher form of property rights, but a subset. There is no hierarchy, only the limitations necessary for consistency. For this to work, self-ownership must not contradict property ownership and vice versa. In the case of IP, if I use my computer to make a CD of a copyright song, I can be compelled to either turn over the CD or destroy it. How can this be when no actual damage to either the pattern or instantiated objects has taken place? Sounds like a higher form of ownership to me.

    Published: January 22, 2010 4:04 PM

  • Peter SurdaPeter Surda

    Dear Russ,

    > The radio waves from your property would still be
    > emitted just as they were before, and radio waves
    > from Starbuck’s property would still be received
    > just as they were before. They would just be
    > superimposed with the nutjob’s radio waves.
    This is kind of like saying that if I smash your car, you still have all the original atoms. In other words, correct but irrelevant.

    Published: January 22, 2010 4:16 PM

  • MashuriMashuri

    Russ, I think you need to focus on ABR’s point. EM spectrums by themselves are not scarce but the space they occupy is — and it’s within that finite space (for that particular use) where homesteading takes place. I’m quoting his response to reiterate:

    “I see EM rights as a right to use a volume of space in a particular way. Ditto for landing and take-off rights that an airport requires.

    Ditto also for gardening and sunlight. If I homestead a property in the middle of nowhere, and plant a garden, and then X comes along and homesteads a neighbouring property, and builds a giant wall that blocks the sun from my garden, then he has infringed on my property. Yeah or nay on this one?”

    Think of EM spectrum use as sort of like easements. If I homestead two plots of land and set up a communication pathway between them, someone else coming along and disrupting that communication would be infringing on my property rights in a similar fashion to ABR’s garden and airport scenarios.

    Published: January 22, 2010 4:22 PM

  • RussRuss

    Stephan Kinsella wrote:

    “Russ wrote:”But as Bala just pointed out, that does not necessarily make rights in non-scarce things invalid.”

    It makes it unlibertarian…”

    No, it doesn’t make it unlibertarian, unless you take it for granted that only Lockean property theory is libertarian. Once again, you’re begging the question.

    “This isn’t rights inflation. IF it is, it’s invalid. If Em homesteading is legitimate, then it’s not inflation….”

    Hmmm… let’s see….

    Premise 1) If something involves “rights inflation” (“rights” not permitted by Lockean/Rothbardian scarcity theory), it’s invalid.

    Premise 2) Assume for sake of argument that EM rights are “rights inflation”.

    Conclusion) EM rights are invalid.

    The big problem here is premise 1, where you simply assume or assert that any right beyond that permitted by Lockean/Rothbardian scarcity theory is invalid. Then of course, the conclusion you desire follows simply, but without any real justification.

    I just looked up the “begging the question” fallacy on Wikipedia, and it looks like what you are doing here is the related “fallacy of many questions”.

    http://en.wikipedia.org/wiki/Begging_the_question#Related_fallacies

    If you then argue that premise 1 is the libertarian premise, and if one disagrees with it one is not libertarian, then you’re just begging the question.

    “… If it’s not legitimate, we should not favor it.”

    Tautology.

    “Easy.”

    Yeaaaaah. It’s easy to prove that 1=2, also. Unfortunately, that proof is not logically valid, either.

    Your big problem here is your continued insistence that only Lockean/Rothbardian property theory is valid libertarianism. (And you just happen to believe in Lockean/Rothbardian property theory; what a coincidence!) But libertarianism is just a political philosophy that believes that individual liberty should be the primary (or only) political concern. Lockean/Rothbardian property theory is only one of many possible manifestations of libertarianism. It’s ironic in the extreme that you (an anti-IP person) apparently think that you are the arbiter of what the word “libertarianism” means! Is the word your property?!

    Published: January 22, 2010 4:34 PM

  • RussRuss

    Scott D wroe:

    “Now, you have no positive right to attack mailboxes…”

    I agree with the whole above paragraph (only partly quoted). But the same applies to EM spectrum rights or conceivably IP rights, if they were valid rights. Say for sake of argument that EM spectrum rights are valid. Let’s say we live in the same area, and I have the right to broadcast in the area at X MHz. Let’s also say for simplification that nobody else has EM spectrum rights in the area. You still have the right to your radio transmitter, *except for the right to transmit at X MHz*, because this would violate my rights. This is the same as my having the right to my machine, *except the right to shoot your mailbox with it*, because that would violate your rights.

    “…In the case of IP, if I use my computer to make a CD of a copyright song, I can be compelled to either turn over the CD or destroy it. How can this be when no actual damage to either the pattern or instantiated objects has taken place? Sounds like a higher form of ownership to me.”

    It’s not a matter of whether you damage the pattern or the physical property on which it was instantiated. IP rights, if they were valid, would simply impose a limitation on what people can rightly do with their property, just like regular property rights do. You would still have the right to your computer, *except the right to copy other peoples’ IP with it*, because that would violate their rights. After all, if property rights didn’t impose limitations, what good would they be?

    Published: January 22, 2010 4:48 PM

  • Scott DScott D

    “Of course, it would render communication between your and Starbuck’s equipement impossible, but what makes you think you have the right to expect that, without EM spectrum rights?”

    You’re getting stuck on this needing a right to a particular activity. Your property is your property. As long as your use of it does not infringe upon mine in some measurable way, do whatever you like. But if you start throwing transmissions at me that interfere with my ability to use my property as I like, I’m going to complain.

    “you are in effect saying that whoever starts broadcasting on that frequency in the area in question first has dibs on that right, which is effectively EM spectrum rights, isn’t it?”

    That is one possible interpretation of it that at one time I accepted as true, the important distinction being that the homesteading is geographically defined and limited. You can transmit on X frequency to reach Y radius around Z. This differs in significant ways from the much simplified concept of homesteading a frequency.

    However, I’ve since changed my mind on that. What I’m saying is that if you want to put up a radio station that sends possibly disrupting frequencies through the properties of however many people, you had better be able to take into account those people who might object to their property being affected in this way.

    “Also, if somebody doesn’t want any radio waves impinging on his property, can he sue a radio station? ”

    To be sure, there would have to be some measurable claim made against you. If a claimant could not demonstrate any injury whatsoever, it would not hold up. This is an obvious necessity to avoid claims like, “He walked past my yard and reflected sunlight into it!”

    “I’m simply saying that some sort of property rights system above and beyond simple property rights is needed to guarantee useful radio communication.”

    Useful to whom? I just see so many similarities between this argument and the idea of market-failure, arguing that everyone is worse off without intervention X. Yes, it makes dealing with the odd anti-radio curmudgeon a bit harder, but I believe that the problem is in no way insurmountable and an implementation in such a framework would likely have huge benefits. Our current use of the EM spectrum is based on a model that has changed little in the last century, thanks to government-granted EM rights. It’s no wonder that wired communications is so much cheaper and faster.

    Published: January 22, 2010 4:48 PM

  • RussRuss

    Peter Surda wrote:

    “Russ wrote: The radio waves from your property would still be emitted just as they were before, and radio waves from Starbuck’s property would still be received just as they were before. They would just be superimposed with the nutjob’s radio waves.

    This is kind of like saying that if I smash your car, you still have all the original atoms. In other words, correct but irrelevant.”

    I disagree. Property rights imply maintained physical integrity and functionality of the object. In my example, Scott’s and the Starbuck’s wi-fi and computer would still be intact and functional, strictly speaking; they would still be able to send and receive radio waves just as before. It’s just that they wouldn’t receive the radio waves that they *want* to. So no property rights are being violated, if you limit “property rights” to rights to actual physical property, radio waves not included.

    Anyhoo… I have to go for a bit. I will be back to run the Mises blog gauntlet (*grin*) some more, after a dinner break.

    Published: January 22, 2010 4:57 PM

  • Silas BartaSilas Barta

    @Russ: I am interested in getting the IP debate resolved, including its relationship to EM spectrum rights. And as I’ve mentioned in the other thread, I want to hold an e-symposium on the issue that will allow quicker exchanges than a journal might, and will avoid having to rehash the same arguments over and over.

    Despite your constant disagreement with many of my positions, you have shown an excellent understanding of many subtle points that take a lot of effort to get across to people, and a willingness to call people on flaws in reasoning, even if they oppose IP.

    Therefore, I would be honored to have you participate when I hold it.

    Published: January 22, 2010 5:25 PM

  • RussRuss

    Silas,

    Firstly, thank you for the compliment. Secondly, if I have the time, I would be happy to “attend” your e-symposium. Could you post something on your blog, spelling out how this would work?

    Published: January 22, 2010 6:13 PM

  • BalaBala

    Stephan,

    ” it does for those who favor property rights in scarce tings; or who think they are compatible……. It makes it unlibertarian, and, b/c I’m a libertarian–most people here are –that means it’s invalid. ”

    Two problems. Firstly, unlibertarian and hence(??) invalid? Am I to read it as “invalid because it contradicts your convictions”? I am not sure how many people with a different set of convictions (like the Objectivists of the world) are ever going to see eye to eye with you on this.

    Secondly, you are still preaching to the choir.

    Published: January 22, 2010 6:48 PM

  • RussRuss

    Mashuri wrote:

    “Think of EM spectrum use as sort of like easements. If I homestead two plots of land and set up a communication pathway between them, someone else coming along and disrupting that communication would be infringing on my property rights…”

    I don’t see how, without EM spectrum rights. After all, if the land in between the two plots is not yours, how can you have the right to pass your radio waves through that property that you do not own? If you somehow get easement rights from all other property owners in the area, fine. What if you cannot?

    “…in a similar fashion to ABR’s garden and airport scenarios.”

    I find those scenarios problematic, as well. For instance, if the airport comes in after the surrounding property is already owned, which is usually the case, how does it get easement rights? In our society, it usually just basically takes them. If it cannot do that, then it would have to buy them, which would be difficult. Even if the airport came first, and then people buy surrounding land, what then? Would easement right conditions be attached to their property? How so? After all, if the land was unowned previously, then the airport didn’t own it, and couldn’t have had an easement contract with the (non-existent) previous owners.

    Published: January 22, 2010 7:05 PM

  • newsonnewson

    russ says:
    “No, sorry, if we want to communicate over radio waves without any random dickhead ruining it for everyone else, then we need EM rights.”

    and the impossibility of interpersonal utility comparison? who’s to say whether random’s or starbuck’s use of the spectrum is more valid? utilitarianism necessitates the übermensch. and that always ends unhappily.

    Published: January 22, 2010 7:08 PM

  • Stephan KinsellaStephan KinsellaAuthor Profile Page

    Russ:
    “No, it doesn’t make it unlibertarian, unless you take it for granted that only Lockean property theory is libertarian. Once again, you’re begging the question.”

    ? It’s not question-begging to believe in Lockean appropriation as the basis of property rights, or to think this is libertarian.

    Bala:

    Stephan,

    ” it does for those who favor property rights in scarce tings; or who think they are compatible……. It makes it unlibertarian, and, b/c I’m a libertarian–most people here are –that means it’s invalid. ”

    Two problems. Firstly, unlibertarian and hence(??) invalid? Am I to read it as “invalid because it contradicts your convictions”?

    Yes, — convictions which I hold to be true as do other libertarians with whom I’m talking.

    I am not sure how many people with a different set of convictions (like the Objectivists of the world) are ever going to see eye to eye with you on this.

    All 10 of them? Who cares, really?

    Anyway, what’s the relevance of this? So what if you are right? besides, most Objectivists do believe in Lockean-style property rights in scarce resources. They just don’t understand they have to choose between this and IP fascism.

    Secondly, you are still preaching to the choir.

    I don’t undersatnd the relevance of this remark. Who are you preaching to, pray tell?

    Published: January 22, 2010 7:27 PM

  • RussRuss

    Stephan Kinsella wrote:

    “? It’s not question-begging to believe in Lockean appropriation as the basis of property rights, or to think this is libertarian.”

    It’s questioning begging if your logic is 1) Only libertarianism is valid, and 2) only Lockean theory is libertarian. That seems to be what your logic is.

    Published: January 22, 2010 7:45 PM

  • RussRuss

    Scott D wrote:

    “…Your property is your property. As long as your use of it does not infringe upon mine in some measurable way, do whatever you like. But if you start throwing transmissions at me that interfere with my ability to use my property as I like, I’m going to complain.”

    So you complain? So what? Does that mean I have violated your property rights? If I have a store, and you have a store that outcompetes mine, you have used your property to interfere with my ability to use my property as I like (to make a living). Is that a violation of my rights? No, it’s not. Given just physical property rights, I don’t have the right to always get what I want out of my property, whether that’s the ability to make a living, or the ability to communicate with radio equipment (barring some sort of problematic pseudo-EM rights involving easements).

    “That is one possible interpretation of it that at one time I accepted as true, the important distinction being that the homesteading is geographically defined and limited. You can transmit on X frequency to reach Y radius around Z. This differs in significant ways from the much simplified concept of homesteading a frequency.”

    So only one owner has the right to broadcast at frequency X anywhere in the world, just because he broadcast a signal a frequency X in a limited area, before anybody else in the world did? So someone else would not be able to use that frequency in another area unless he buys permission from the owner, even though the broadcast in the second area does not interfere with broadcasts in the first area?

    “Russ wrote:””Also, if somebody doesn’t want any radio waves impinging on his property, can he sue a radio station?”

    To be sure, there would have to be some measurable claim made against you. If a claimant could not demonstrate any injury whatsoever, it would not hold up.”

    Why not? If I have land, I should be able to sue somebody for trespassing on it, even if the land is in no way injured by his trespass, right? How is this different from radio waves “trespassing” through my property without my permisson?

    “This is an obvious necessity to avoid claims like, “He walked past my yard and reflected sunlight into it!””

    These kinds of pathological problems are why I think that introducing the concept of EM spectrum rights is a simpler solution to the problem that trying to derive it from property rights and easements, etc.

    “Russ wrote: “I’m simply saying that some sort of property rights system above and beyond simple property rights is needed to guarantee useful radio communication.”

    Useful to whom? I just see so many similarities between this argument and the idea of market-failure, arguing that everyone is worse off without intervention X. Yes, it makes dealing with the odd anti-radio curmudgeon a bit harder, but I believe that the problem is in no way insurmountable and an implementation in such a framework would likely have huge benefits. Our current use of the EM spectrum is based on a model that has changed little in the last century, thanks to government-granted EM rights. It’s no wonder that wired communications is so much cheaper and faster.”

    Firstly, I am amused that taking into account the concept of usefulness as a criterion when considering property rights offends you. After all, if I “start throwing transmissions at [you] that interfere with [your] ability to use [your] property as [you] like”, isn’t that annoying precisely because it renders it impossible to get your intended *use* out of your property? IOW, isn’t it the fact that I am affecting the usefulness of your property that is the problem in the first place? Yes, we could try to cobble together a faux EM rights system out of property rights, easements, etc. But I think this would be much more trouble-prone than simply extending the concept of property to deal with the problem of EM interference. That way, it only solves the problem it was intended to solve, without introducing “unintended consequences”.

    Secondly, yes, “[o]ur current use of the EM spectrum is based on a model that has changed little in the last century…”. But that is because the basics of radio transmission haven’t changed much in the last century, because the physics haven’t changed. New technological tricks will not get around the fundamental limitations imposed by the laws of physics and information theory. Besides, the majority of people probably still use outmoded technology. What should be done? Should the government dictate that people have to buy new radios, or adapters, like they did with TV sets?

    Published: January 22, 2010 8:01 PM

  • RussRuss

    newson wrote:

    “russ says:
    “No, sorry, if we want to communicate over radio waves without any random dickhead ruining it for everyone else, then we need EM rights.”

    and the impossibility of interpersonal utility comparison? who’s to say whether random’s or starbuck’s use of the spectrum is more valid? utilitarianism necessitates the übermensch. and that always ends unhappily.”

    So we should forego radio communications just so we don’t violate the tenents of interpersonal utility, and some random nut-job’s whims? No thanks.

    What is the best primary justification of physical property rights? I would say the best justification is that it is the system of allocating property that is the most useful! The fact of scarcity is a reason for arguing *why* we need a system of some sort to begin with. We probably wouldn’t need one if material goods were not scarce. But why not some other system beside property rights? Because the other systems don’t work as well. In other words, they are not as useful!

    Besides, your objection applies just as well to physical property rights. Who is to say that a random nut-job’s or Starbuck’s use of Starbuck’s cash register is more valid? After all, interpersonal utility says we can’t say one way or the other, right?

    Published: January 22, 2010 8:16 PM

  • newsonnewson

    most likely “we, the people” should take the car you leave in your garage for long periods, unused, and use it more efficiently.☺

    after all, we are many and you are but one. how important are you in comparison to the rest of society?

    the justification of private property is not that it creates more wealth, that is a happy side-effect. it’s that it is the only way to avoid universal violence. are you suggesting the imposition of violence to increase overall utility? or that a certain amount of violence is ok, but not too much?

    besides the history of radio prior to the fcc shows regulation wasn’t necessary for a florid radio industry. you surely don’t expect everyone in a given radius to shut up when you talk, using scarce audible frequencies, so give random a break.

    http://mises.org/daily/1662

    Published: January 22, 2010 10:38 PM

  • ABRABR

    “Even if the airport came first, and then people buy surrounding land, what then? Would easement right conditions be attached to their property? How so?”

    By action. The planes are flying over the newcomers’ land. Every day.

    Published: January 23, 2010 1:27 AM

  • Kerem TibukKerem Tibuk

    First of all I don’t know how it became that Kinsella is in the position of defending Lockean/Rothbardian property rights but it is absurd for anyone who actually understand the said homesteading theory.

    Lockean/Rothbardian theory that only justifies homesteading. It is not a positivist theory deciding what can and what can not property by arbitrary distinctions. In the said theory no rights are “assigned” or “established” or “granted”.

    And nowhere it is implied on scarce resources can be homesteaded. “First comer” principle can confuse people but that principle doesn’t say scarcity is prerequisite but instead it means “if there is scarcity, then the tie breaker is the first comer” principle.

    In short something happens as a natural outcome and theory anlalyzes that thing.

    One individual homesteads a nature given resource to stay alive, and then another comes and a possibly of conflict arises.

    The theory at this point says what two parties individually “ought to do” and identifies who is the aggressor and who is the victim in the case of a conflict leading to action.

    Kinsellas theory on the other hand is nothing like this.

    He sits down and thinks of a fantasy or a utopia and imagines how would people live peacefully and happily, given some conditions he thinks that are important. For example he doesn’t think equality is important but he may just as well because nothing is actually stopping him.

    That is why Lockean/Rothbardian theory of property is a part of Natural Law Ethics, where as Kinsellas is a positivist society creation.

    Published: January 23, 2010 2:22 AM

  • Peter SurdaPeter Surda

    Dear everyone,

    allow me to propose an alternative approach, one that analyses the issue without the concept or property.

    We have a radio receiver. We can agree that some person A possesses a radio. It is on his/her premises. The radio’s speaker vibrates in a specific manner. This is causally related to person B emitting EM waves. Now, person C starts emitting EM waves in a way that causes the speaker to vibrate in a different manner. This is a simple phenomenon that does not depend on how people interpret this or that. Can we all agree on this?

    Kindly note that I did not use any concept of property or ownership. I was merely talking about measurable changes and causality. I do not claim anybody violated any rights or anybody owns anything.

    Now, let’s say person A gives a book to person B. Persons B and C read it together and C retypes it (he never touches the book). None of the actions of person C cause measurable change in the book.

    Now, person A pays C a visit and claims that C “copied” “his” book. How does he know? The book C possesses is causally related to the other book, and shares similar characteristics with it. This very much depends on how people interpret various things. Furthermore, the only way to conclude that “copying” occurred is to observe person C. It is insufficient to observe either A, B or the book.

    In the first case, some people conclude from the situation that a trespass occurred. We can abstract this principle into “if person B causes a measurable change in an object owned by person A against A’s will, and the causal relationship was not present when the ownership started, it means there is a trespass”. I label this principle “the minimum scope of property”. Note I did not say that there was a trespass against A’s property. This avoids the problem with EM, it could mean that illicit broadcasts are trespass against sender’s or recipient’s property. I leave this question open.

    In the second case, some people claim that a trespass occurred too. However, if we tried to abstract a principle, we have to conclude that it would be “even if no measurable change on objects a person A owns occurs, if another person B acts in a way that is causally related to a previous act of A, appears similar to A, against person A’s will, it is trespass too”. In the case of people who consider even independent discovery of patents trespass, the “causally related” part from the principle is dropped. I call this “the IP definition of property”.

    I already explained why this definition is problematic. Any action whatsoever that is undesired can be declared trespass. Pseudoscience, imaginary things and emotions can be claimed to be sufficient conditions for trespass.

    Published: January 23, 2010 6:46 AM

  • Peter SurdaPeter Surda

    Dear Kerem,

    > Lockean/Rothbardian theory that only justifies
    > homesteading. It is not a positivist theory deciding
    > what can and what can not property by arbitrary
    > distinctions.
    That what you are calling “Lockean/Rothbardian theory” is actually “Lockean/Rothbardian theory” + “Kerem Tibuk’s arbitrary axioms”. You need to understand this before we progress any further.

    Published: January 23, 2010 7:17 AM

  • RussRuss

    newson wrote:

    “the justification of private property is not that it creates more wealth, that is a happy side-effect. it’s that it is the only way to avoid universal violence…”

    Isn’t avoiding a war of all against all for material goods useful?

    “…are you suggesting the imposition of violence to increase overall utility? or that a certain amount of violence is ok, but not too much?”

    Well, you know the answer to that question, newson, because you know that I’m a minarchist. Do the math. Anyway, even in Ancapistan, you’d have to impose violence on some people to get them to leave other peoples’ property alone.

    “besides the history of radio prior to the fcc shows regulation wasn’t necessary for a florid radio industry.”

    When did I ever mention the FCC? I’m just talking about having rights in EM spectrum. That doesn’t necessitate a regulatory agency, only courts of law, and a registration mechanism of some sort.

    “you surely don’t expect everyone in a given radius to shut up when you talk, using scarce audible frequencies, so give random a break.”

    I expect that they don’t speak so loud that I’m not able to carry on a conversation.

    Published: January 23, 2010 8:04 AM

  • RussRuss

    ABR wrote:

    “Russ wrote: “Even if the airport came first, and then people buy surrounding land, what then? Would easement right conditions be attached to their property? How so?”

    By action. The planes are flying over the newcomers’ land. Every day.”

    So? The newcomer’s land was previously unowned, so there could have been no easement contracts with the non-existent former owners. So when the newcomers came, there were no easement contracts to bind them. So I don’t see how you could use easements to get this right to make noise, in this case.

    If you’re saying that by making noise (or radio waves) before the newcomers came, the airport homesteaded the right to make noise (or radio waves) in that area, I’m not sure that follows from pure property rights. The so-called “homesteader” can emit noise, radio waves, pollution, whatever, as long as the surrounding area is unowned, sure. Who could object except maybe an eco-nazi? But once the land is homesteaded (and in a pure physical property rights system, only physical property such as land *can* be homesteaded), the first guy is now emitting noise, or whatever, onto somebody else’s property. He’s violating their rights.

    If you still say that he has the right to “homestead” the right to produce noise in an area, that’s fine, you can do that, but I don’t think it can be derived from pure property rights. Likewise with homesteading the right to emit radio waves. If somebody homesteads land, they now own *physical* property. But if somebody homesteads “the right to emit radio waves at X Mhz over a given area”, they haven’t homesteaded *physical* property. They’ve homesteaded a more abstract right which we have been calling EM spectrum “property”. Once you say that somebody can do that, I think you’ve just admitted EM spectrum rights, as I conceive them.

    Published: January 23, 2010 8:43 AM

  • RussRuss

    Peter Surda wrote:

    “I already explained why this definition is problematic. Any action whatsoever that is undesired can be declared trespass.”

    I think this is similar to the point I made against Silas when we were talking about his IP theory. I said that just because he desires to use his property to get such-and-such a result, and that I “interfered” with his desire, that does not necessarily mean that I violated his rights.

    Published: January 23, 2010 9:21 AM

*****

{ 252 comments }

Peter January 29, 2010 at 4:03 am

Okay, so I can print 1 trillion U.S. dollars copies since they are not scarce because two people can have copies at the same time.

Yes…but you can’t print a trillion ounce-of-gold copies – which is precisely why gold is a better money than fiat paper!

Peter January 29, 2010 at 5:15 pm

And do you think it is somehow wrong for a property owner to gain benefit from his property over and over again by keep renting it?

How is that any different than gaining the same benefit once by selling it? You’re confused.

Peter January 29, 2010 at 5:21 pm

You can get linux for free but you want Windows

Most people get Windows for free, and pay for Linux…but who in their right mind would want Windows?

Peter January 29, 2010 at 6:43 pm

IP doesn’t create a positive obligation on other people; it just puts limits on what they can do with their property, like other property rights do.

But other property rights don’t — see Stephan’s post a little above yours!

pro-IP-libertarian January 29, 2010 at 7:52 pm

Peter Surda-

your whole premises rest on an arbitrary definition of “homesteading”. Just like many other IP proponents, you draw an arbitrary line on the causality scale. Maybe it would help if you tried to explain where exactly you draw the line, then you’d realise it’s arbitrary.

Not at all. The first Harry Potter novel is a creation. All duplications, authorized or unauthorized, depend on the first one. Yes, there is causality, but it is relatively easy to identify.

This is just a first step in the argument. In the second one, you need to establish how far the homesteading reaches and what takes priority if there is a conflict. That is the whole point of my objection. Causality does not answer that.

Self-ownership has its own set of proofs in natural rights. One inhabits one’s body first so they own their body and their labor, etc. Otherwise there is some kind of state of slavery – either another person (including parents) or the state would “own” the person so this is rejected. From there you simply branch out to homesteading.

It does not answer whether children’s ownership of themselves or parent’s ownership of themselves takes precedence (logically, the parent’s should, because it is predates the child).

No, rejected by self-ownership. One inhabits one’s body first, even in the womb. Then there are the slavery arguments. Some concessions are made to parents making decisions, etc. but these end on emancipation, adulthood, etc. Plus there are exceptions like fraud, abuse, neglect, other tortious and criminal conduct, etc.

It does not answer whether only “good” influences should be considered, there is no reason why Soviet Union should not co-own Atlas Shrugged. Besides, back to my original objection, there is no way to distinguish between immaterial goods and externalities. But according to theory, you can own the former but not the latter.

The Soviet Union’s claim would be rejected by both self-ownership (otherwise it’s slavery) and homesteading.

Your externality arguments are somewhat nebulous. I adressed the examples you gave. IP owners decide how they are going to profit by weighing what externalities they can forsee. But this isn’t too different from the process with physical goods and there isn’t too much controversy over that.

What is “proper party”? That’s just another arbitrary assumption. Governments also claim that some transactions are invalid without them being involved, but that does not make it true.

In a transaction there is a consensual buyer and a consensual seller. If someone is unilaterally taking property it isn’t a market transaction. And there is no legitimate price signaling occurring.

Exclusion in material goods is not “enforced”, it “is”. It is the natural feature of those things. It exists regardless of laws or people.

Not exactly with land. Physical exclusion in real estate is only truly present when we are talking about very small pieces of land when the owner is present. Plus land ownership and homesteading has to be widely recognized and acknowledged so a market in the asset can occur, if not by the state then by some other body or association.

It is.

Not any more than buying land is. Others are free to homestead or buy land to compete. No one is forcing any exchanges, like what occurs in the “duplication is equivalent to creation” IP model.

This is only valid from your point of view. From my point of view, it’s the opposite: competitors homestead new grounds, and a monopoly prevents them from using it. From my perspective, those new grounds are externalities of the original.

Not just from my view. Doing away with IP creates a public, collectivist claim on individual labor and creates mispricing like socialism does.

Exactly! IP owner, just like anyone else causing externalities, should consider the effects before making his move, instead of complaining how little he gained by using an infeasible business model.

Just because you want to unilaterally take something without paying for it doesn’t make sale of that something “infeasible”.

There are already property rights in the physical, those are sufficient to address the most common and harmful effects of undesired activities.

Right, there are currently IP rights that take care of externalities there as well. If you can argue from the status quo, so may I. Homesteading vests equivalent rights, status quo here I come.

This is merely another stage of the problem (i.e. you are trying to cure the symptom rather than the cause). The illicit photographer trespassed on physical property. When a woman with a miniskirt goes to a street, she needs to make herself informed about the rules regarding photographing that the street owner does (some might permit photos, some might not). There is no need for IP from this perspective.

Not at all, the camera placer might have been an invited guest. I was just illustrating how people are already aware of most of the externalities. People know they have less control over their image when they appear in public as opposed to when they are in their dwelling, etc.

But what does this mean? I fail to see how this can mean owning anything apart from that which is in one’s own head. The line where you draw the distinction between immaterial goods and externalities is arbitrary. That’s what you need to recognise. IP is the claim of ownership of other people’s minds. It does not bother you here, but it bothers you with children and Ayn Rand. You need to explain this dichotomy.

You are mixing your lack of awareness about self-ownership here. That addresses the issue of children, Ayn Rand, and the foundation of homesteading.

IP is not claiming “ownership” of other people’s minds, merely one’s own creations for a time. Anti-IP, on the other hand, results in collectivist claims on individual labor and the mispricing of intellectual property creation.

Peter January 29, 2010 at 9:06 pm

I don’t see how, without EM spectrum rights. After all, if the land in between the two plots is not yours, how can you have the right to pass your radio waves through that property that you do not own?

The question isn’t “how can you have the right to pass your radio waves through that property that you do not own?”, the question is: who has the right to stop you? If your transmission doesn’t interfere with the current owners’ use of their properties, the answer is obvious: nobody. Hence, you have that right, because you have all rights that don’t interfere with anyone else’s! So when a latecomer starts interfering with your use of your property, he’s at fault.

Peter January 29, 2010 at 11:10 pm

Theoretically, you could use and trade real property without exclusion but the value would be greatly reduced.

No. The value you could personally extract from it would be reduced, in the sense that it would sell for less; but the total value, to everyone, would be massively increased. If you could use real property without exclusion, that would be an unalloyed good.

Peter January 29, 2010 at 11:20 pm

Exclusion isn’t necessary to use real estate either. You could squeeze a large number of people into the average 3br 2 ba house

So? How does that indicate that exclusion isn’t necessary? You can drive my car…but if you do, I can’t drive my car at the same time. If you squeeze all those people into my house, it will certainly interfere with my use of my house!

pro-IP-libertarian January 30, 2010 at 12:21 am

Jay Lakner-

Do you believe that Harry Potter the book is the same as (or similar to) Harry Potter the movie?

No, one is a novel and the other is a film based on it. Rowling created the first copy of the novel through her labor – thinking and writing. This can be thought of as intellectual homesteading. It is easy to see that someone making an unauthorized copy of the novel is not creating, they are duplicating. They did not do an equivalent amount of labor and indeed most people probably could not perform the same labor. (Although they are free to try – do their own homesteading – as long as they don’t duplicate.) And importantly, they would not have anything to duplicate if Rowling had not written – created – the first novel.

Or, do you agree with me that they are totally different and the perceived similarity is just a result of the subjective meaning humans place upon them?

No, they aren’t totally different because they have the same main plot, a lot of the same scenes, most of the same characters, etc. They are different because they are different mediums – film versus novel – and different mediums have different limitations. One of the main limitations being budget. They could have a film that followed the book exactly but it would wind up being twenty hours or more, very slow moving, and very expensive.

It still sounds like you are trying to equate creation with duplication. They are different. Rowling wrote the first novel (longhand, if memory serves, but this is unimportant) and any other duplicate depends on this.

pro-IP-libertarian January 30, 2010 at 12:43 am

Peter-

The question isn’t “how can you have the right to pass your radio waves through that property that you do not own?”, the question is: who has the right to stop you? If your transmission doesn’t interfere with the current owners’ use of their properties, the answer is obvious: nobody. Hence, you have that right, because you have all rights that don’t interfere with anyone else’s! So when a latecomer starts interfering with your use of your property, he’s at fault.

This isn’t really what we were talking about. Radio waves of certain frequencies are allowed because they don’t hurt anyone and are generally a public benefit. But you couldn’t, for example, beam high intensity microwaves at someone because that would be assault, battery, harassment, possible attempted murder, etc.

Plus in most jurisdictions you couldn’t illegally eavesdrop on people, etc. You don’t have “all the rights that don’t interfere with someone else’s”. Trespassing doesn’t generally involve interfering with someone else’s rights, but that doesn’t mean it’s not a tort/crime. Someone can keep you off their property or out of their dwelling if they want, they don’t need a reason.

No. The value you could personally extract from it would be reduced, in the sense that it would sell for less; but the total value, to everyone, would be massively increased. If you could use real property without exclusion, that would be an unalloyed good.

Doubtful. People would spend far less developing real estate. Why have a nice house when you could wake up to find a bunch of hippies and their pet pot-bellied pigs in your living room at any time?

So? How does that indicate that exclusion isn’t necessary? You can drive my car…but if you do, I can’t drive my car at the same time. If you squeeze all those people into my house, it will certainly interfere with my use of my house!

I do believe exclusion is necessary for real estate property rights. I was exposing on of the fallacies of the anti-IP case: they claim IP is “claiming ownership of market share” when it isn’t. I did this by showing that real estate exclusion is not “claiming ownership of market share” either – someone is free to homestead or buy other real estate and compete with you. Just like someone is free to create (homestead) or buy other IP and compete as well.

Peter January 30, 2010 at 4:18 am

Why have a nice house when you could wake up to find a bunch of hippies and their pet pot-bellied pigs in your living room at any time?

But you couldn’t — that would interfere with your use of your property, which is precisely why physical property is exclusive. If you’re assuming some strange universe in which both you and the hippies can occupy/use the same space at the same time without interference — nothing they do there can interfere with you — then what difference does it make if they are in “your” living room (you can’t see them, smell them, touch them, etc., etc…that would imply an exclusionary universe!)

pro-IP-libertarian January 30, 2010 at 2:17 pm

Peter-

But you couldn’t — that would interfere with your use of your property, which is precisely why physical property is exclusive.

I could, it just would be difficult to turn a profit and people would be less likely to do it. Just like what would happen with IP if we did away with IP rights.

And as I said above real estate is only directly rivalrous in very small plots or pieces of land. So exclusion isn’t a necessity, we just provide it because that is the best way to make sure we have a healthy market in, and people will invest in, real estate. Basically, the ability to exclude from real estate ensures that the pricing mechanism works in that asset.

If you’re assuming some strange universe in which both you and the hippies can occupy/use the same space at the same time without interference — nothing they do there can interfere with you — then what difference does it make if they are in “your” living room (you can’t see them, smell them, touch them, etc., etc…that would imply an exclusionary universe!)

I don’t need to. Real estate is only directly rivalrous on very small plots. If you had a house the hippies could just crash when you were at work or asleep, and leave when you needed the kitchen, living room, etc. They could leave you your bedroom for “personal use”. Or they could just park a camper in your yard if you had a big yard.

It’s an absurd example, but it is no more absurd than claiming that someone who copies (duplicates) an author’s book is doing the same amount and kind of work, and has the same talent, as the author who spent hours and hours writing, rewriting, researching, etc. – creating – the book. Duplication/copying is not equivalent to creation. The ability to exclude in IP rights ensures that the pricing mechanism works in – that people will invest in and develop – that asset.

Peter January 30, 2010 at 6:42 pm

And as I said above real estate is only directly rivalrous in very small plots or pieces of land.

In your idiolect, perhaps…you’re using the word differently from everybody else, hence your misunderstanding!

Jay Lakner January 30, 2010 at 7:13 pm

pro-IP-libertarian,

I see that you are falling into the very same error I mentioned. I believe you’re confusing the subjective meaning you assign to an entity with the entity itself.

pro-IP-libertarian wrote:
“No, they aren’t totally different because they have the same main plot, a lot of the same scenes, most of the same characters, etc.”

The “plot”, “scenes” and “characters” are only similar in your mind. There is no objective similarity between the book and the movie.

Do you think someone who can’t read would consider them similar?
Do you think that someone who didn’t understand English would consider them similar?
Do you think my pet cat would consider them similar?

The meaning you gain from reading the book is similar to the meaning you gain from watching the movie. But that does not make them similar. That is personal to you, to your mind.
It is only the subjective meaning that you apply to both the book and the movie that lead you to conclude similarity. But objectively, they are very different.

So, what you are really advocating is that “meaning” is a form of property. You are advocating that artists should be granted property rights in the “meaning” of their works.

Before I explore the ramifications of this, I need to ask:
Do you understand my reasoning so far?
Do you agree?

Bala January 30, 2010 at 7:53 pm

pro-IP Libertarian,

” I could, it just would be difficult to turn a profit and people would be less likely to do it. ”

????

If you squat on my land, I cannot dig it up to lay the foundation of the house I try to build on it without forcing you off. I cannot plough it without ploughing you into the soil too (unless you scoot or I throw you out). I cannot plant a tree on a spot I choose without uprooting you from there in the first place.

In every case, my freedom of action is affected adversely by your attempt to simultaneously use my land.

This is getting truly ludicruous. Since you are wrong at the root, I presume it is obvious that you are wrong in your conclusions as well.

pro-IP-libertarian January 31, 2010 at 2:54 am

Jay Lakner-

The “plot”, “scenes” and “characters” are only similar in your mind. There is no objective similarity between the book and the movie.

Wrong. The movie is based on the book. There would be no movie in that form if the book hadn’t been created.

Do you think someone who can’t read would consider them similar?
Do you think that someone who didn’t understand English would consider them similar?
Do you think my pet cat would consider them similar?

Immaterial. You are talking about subjective perceptions. The movie is based on the book, this would be the case no matter how many people weren’t aware of or couldn’t understand this.

So, what you are really advocating is that “meaning” is a form of property. You are advocating that artists should be granted property rights in the “meaning” of their works.

No, just pointing out that the creators of intellectual property have natural rights interests in their creation through a homesteading model. They just should have rights to sell their own work. No one is forced to buy. But on the other hand no one should be permitted to force a transfer on them – nonconsensually copy or resell their work.

Before I explore the ramifications of this, I need to ask:
Do you understand my reasoning so far?
Do you agree?

You seem to be focusing on subjective perceptions and therefore claiming that their are no objective facts with IP. That is incorrect, there are. I have noted where I disagree above.

pro-IP-libertarian January 31, 2010 at 3:07 am

Bala-

If you squat on my land, I cannot dig it up to lay the foundation of the house I try to build on it without forcing you off. I cannot plough it without ploughing you into the soil too (unless you scoot or I throw you out). I cannot plant a tree on a spot I choose without uprooting you from there in the first place.

Oh it could be done, it would just be very difficult, time consuming, etc. The market value of real estate would certainly be effected and people would be less likely to spend their time and resources on it. Just like what would happen if there were no IP rights.

In every case, my freedom of action is affected adversely by your attempt to simultaneously use my land.

Right – and so it goes with IP. Unilateral copying and reselling of IP adversely effects the efforts of those that create and sell it. Exclusion is necessary to effectively develop and make a market in real estate, it is also necessary to effectively develop and make a market in IP.

And note exclusion in real estate is owner-focused. We don’t say the right to exclusion in real estate is claiming a “right to market share”. So it is not correct when some claim this is what one is claiming with IP exclusion.

This is getting truly ludicruous. Since you are wrong at the root, I presume it is obvious that you are wrong in your conclusions as well.

No, if you are an advocate of the “duplication is equivalent to creation” model you are basing your model on a fallacy and the model itself runs counter to natural rights principles.

pro-IP-libertarian January 31, 2010 at 3:11 am

Jay Lakner-

Should be “there” in the first line of the last paragraph.

Jay Lakner January 31, 2010 at 5:48 am

I wrote:
“There is no objective similarity between the book and the movie.”
pro-IP-libertarian replied:
“Wrong. The movie is based on the book. There would be no movie in that form if the book hadn’t been created.”

You have made a major logical error here.
If two things are causally related, that does not mean they are similar.

“You are talking about subjective perceptions.”

Exactly. I am pointing out to you that the similarity between the movie and the book are subjective and very much dependent on who is making the judgement.

“…just pointing out that the creators of intellectual property have natural rights interests in their creation through a homesteading model.”

But what exactly are they homesteading? What exactly is this “intellectual property” that they are homesteading?

Objectively speaking, there are only tangible entities and the arrangements they can take.
Subjectively speaking, there are characters, plots, scenes, heroes, villians, magic, goblins, giant talking elephants, and a multitude of other intangible meanings that different human beings can conceptualize. Things that only exist in the human mind.
Are you arguing for the ‘objective entities’ or the ‘subjective entities’ to be property?

From your responses, it is clear that you have made two major logical errors:
1. You have defined similarity in terms of causality. Two things that are causally related are not necessarily similar, and two things that are similar are not necessarily causally related. Clearly, ‘causality’ can not be used as a measure to determine ‘similarity’.
2. You seem to often equate the subjective meaning humans assign to an entity with the objective reality of the entity itself. There is that which exists in your mind, and there is that which exists in reality. Two entities may induce similar brainwave activity in your head, but that does not mean the two entities are objectively ‘similar’.

Do you follow what I’m saying?

(Keep in mind, agreement with me on these points does not invalidate IP. We have yet to explore the ramifications of considering objective patterns to be a form of property)

Bala January 31, 2010 at 11:04 am

pro-IP-libertarian,

I can see why you are so thoroughly confused and (hence) pro-IP.

” Oh it could be done, it would just be very difficult, time consuming, etc. ”

It is NOT about how difficult it will be. It is about the fact that it is METAPHYSICALLY IMPOSSIBLE for me to engage in agriculture and for you to build and operate a factory on the same plot of land SIMULTANEOUSLY. The reason for that is that there is only 1 of THAT plot of land that CANNOT be used simultaneously for more than 1 purpose.

This is NOT TRUE of ideas. Any number of people instantiating your idea does not and CANNOT prevent you from doing so yourself.

If this obvious aspect of reality escapes you, I don’t think I am in a position to try and convince you any more.

Peter Surda February 1, 2010 at 4:55 am

Dear pro-IP-libertarian,

regrettably, I don’t have enough time to address all of your arguments, so I’ll just concentrate on the core. The core has been mentioned by Jay: immaterial goods are subjective. They do not exist outside of people’s minds. It’s people’s minds only that give them “boundaries”. I made an example with a book summary earlier that demonstrates this, you can look it up. The second problem is a corrolary of this: you cannot distinguish between immaterial goods that are covered by IP laws and positive externalities. Either both violate rights and should be rejected, or neither violate rights and should be accepted.

pro-IP-libertarian February 1, 2010 at 5:32 am

Jay Lakner-

You have made a major logical error here.
If two things are causally related, that does not mean they are similar.

When one is based on the other – has the same plot and many of the same characters – it does mean they are similar, and causally related. If there were no Harry Potter book there would be no movie based on the book’s story.

Exactly. I am pointing out to you that the similarity between the movie and the book are subjective and very much dependent on who is making the judgement.

No, you pointed out a bunch of examples of people that subjectively couldn’t determine the similarity. (Did not speak english, were not of the species, etc.) But they are objectively similar. There would be no movie without the book. So your examples are as I said immaterial.

Objectively speaking, there are only tangible entities and the arrangements they can take.
Subjectively speaking, there are characters, plots, scenes, heroes, villians, magic, goblins, giant talking elephants, and a multitude of other intangible meanings that different human beings can conceptualize. Things that only exist in the human mind.
Are you arguing for the ‘objective entities’ or the ‘subjective entities’ to be property?

Your framing is incorrect. There is IP that is objectively new. The Star Wars universe was objectively different from the Star Trek universe that came before it.

Maybe the use of the word “objective” is throwing you off. There is one meaning that means only things in a physical sense. That is not the meaning used here. The meaning here refers to the characteristics of an object. The Star Wars universe is objectively different from the Star Trek universe. We can objectively tell that the movie adaptation of a Harry Potter book is similar to it, because that is what an adaptation means by definition.

From your responses, it is clear that you have made two major logical errors:
1. You have defined similarity in terms of causality. Two things that are causally related are not necessarily similar, and two things that are similar are not necessarily causally related. Clearly, ‘causality’ can not be used as a measure to determine ‘similarity’.
2. You seem to often equate the subjective meaning humans assign to an entity with the objective reality of the entity itself. There is that which exists in your mind, and there is that which exists in reality. Two entities may induce similar brainwave activity in your head, but that does not mean the two entities are objectively ‘similar’.

No, I defined similarity in terms of things that are objectively (characteristically) similar. Causation came up because we were discussing a film adaptation of a book, which is by definitiong causally related to the book.

Your other point springs from you using a different meaning for the word “objective”, which isn’t the meaning I was referring to.

Aside from your errors there, you still seem to be simply attempting to equate duplication with creation. They are not equivalent. The first Harry Potter book was objectively (characteristically) different from Tolkein’s books. Claiming that an unauthorized copy of the Potter book are just another set of “patterns” is laughable. The copy wouldn’t exist without the original. The Potter book is different enough that it would still exist without the Tolkein books.

Your “duplication is equivalent to creation” model depends on you claiming that all IP is “subjective patterns” and therefore equivalent. That is a fallacy. IP can be objectively (characteristically) determined to be different from other IP, such that new or unique creations can be identified.

pro-IP-libertarian February 1, 2010 at 5:56 am

Peter Surda-

The core has been mentioned by Jay: immaterial goods are subjective. They do not exist outside of people’s minds. It’s people’s minds only that give them “boundaries”.

That seems to be a misunderstanding about how you are using the words objective and subjective. Your model depends on claiming that duplication is equivalent to creation. You simply extend this by claiming that “all IP is subjective” and therefore equivalent.

But IP can objectively (characteristically) be determined to be different from other IP. That is one of the reasons why documentation is required for IP to be recognized (homesteaded), so creations of the mind can be set down in concrete form.

I made an example with a book summary earlier that demonstrates this, you can look it up.

Not sure what you are referring to here.

The second problem is a corrolary of this: you cannot distinguish between immaterial goods that are covered by IP laws and positive externalities. Either both violate rights and should be rejected, or neither violate rights and should be accepted.

Not at all, we just deal with positive externalities as we deal with externalities from physical property. IP creators just decide how they want to sell their property and the price, consumers decide if they want to buy. They just aren’t allowed to take it if they don’t agree on price.

pro-IP-libertarian February 1, 2010 at 6:16 am

Bala-

It is NOT about how difficult it will be. It is about the fact that it is METAPHYSICALLY IMPOSSIBLE for me to engage in agriculture and for you to build and operate a factory on the same plot of land SIMULTANEOUSLY. The reason for that is that there is only 1 of THAT plot of land that CANNOT be used simultaneously for more than 1 purpose.

Not at all. You are just assuming things based on the current, exclusion-based business model. You just mark off where the factory will be and me and my squatter friends will just plant our organic crops where the yards and open spaces will be. There may be some hassle if our goats and sheep happen to wander onto the worksite, just shoo them off. I’ll give you some goat’s milk to compensate for any messes they may make.

This is NOT TRUE of ideas. Any number of people instantiating your idea does not and CANNOT prevent you from doing so yourself.

Wrong. Someone distributing free, unauthorized copies of a song crowds out sales of the same song. Just like authorizing someone to use or occupy your real estate for free would crowd out your commercial use of the property in many cases. But note again we don’t call real estate exclusion “claiming a right to market share”. IP exclusion isn’t “claiming a right to market share” either.

Peter Surda February 1, 2010 at 6:22 am

Dear pro-IP-libertarian,

> Your model depends on claiming that duplication is
> equivalent to creation.
No, rather I claim that this distinction is completely irrelevant. The only reason why anyone would need to claim it’s relevant is because they need it for their theory to be correct. To me, it’s just a random irrelevant assumption.

> But IP can objectively (characteristically) be
> determined to be different from other IP.
No, it cannot. That’s the problem in your argument.

> Not sure what you are referring to here.
Ok, let me repeat. I’ll summarise a book:
——————
This book is a story of a bright boy. He had trouble getting along with his family, but one day was selected for special (yet so far almost unmanifested) skills and sent to an elite school. The school allows him to hone his skills. He excels in combat disciplines and demonstrates great leadership abilities. Meanwhile, the world is being threatened by a powerful enemy. The enemy was temporarily beaten some time ago, but is planning a comeback. It is said that the special skills that the boy possesses are the only way to defeat the enemy. In the end, he defeats the enemy, but finds out that he had been skillfully manoeuvred into the confrontation by his own mentor.
——————

So, what book am I summarising? Is it Harry Potter or Ender’s Game? There is no objective way of telling. The only way to know is to determine what I was thinking while I was writing this. Therefore, whether it refers to Harry Potter or to Ender’s Game depends wholly on my thought processes and nothing else. Therefore, immaterial features are not a part of objective reality, but subjective to one’s mind. Therefore, immaterial goods do not have objective boundaries. Therefore, they can’t be property (in the meaning of IP-proponents).

> … we just deal with positive externalities as we
> deal with externalities from physical property.
This underscores the problem in your argument. You do not provide a method to distinguish between an immaterial good that can be property and one that cannot (such as externalities). There is no way to make such a distinction, therefore, one must either reject IP or extend it to all causally related activities (i.e. externalities).

Peter Surda February 1, 2010 at 6:34 am

Dear pro-IP-libertarian,

> You are just assuming things based on the current,
> exclusion-based business model.
This is another problem with your arguments, you redefine rivalry so that it matches your theory.

There are only two ways of “using” a good. One is when you literally consume it, making it at least temporarily or partially unavailable to anyone alse. This can only happen with rival goods. The other one is the metaphorical “use”, when you try to gain some benefit that is causally related to that good, but without the unavailability aspect. This is what we call non-rival, externalities, and this also covers all “IP”. Since there is no unavailability, if you still want to increase your benefits, you need to cover your status with contracts and a working business plan.

> Someone distributing free, unauthorized copies of
> a song crowds out sales of the same song.
A good example. There is no “unavailability” present here. There is only “loss” of market share. “loss” and “crowding out” are a “meaning”, and you can’t own “meanings”. Furthermore, as I said before, the same effect would happen if you distributed substitutes or expressed negative opinion of that song, yet IP proponents typically don’t consider this a problem.

Peter Surda February 1, 2010 at 7:06 am

Dear pro-IP-libertarian,

> No, they aren’t totally different because they have
> the same main plot, a lot of the same scenes, most
> of the same characters, etc.
But why is this relevant? As Jay correctly pointed out, the only similarity is in their meaning. Absent the meaning, they are completely distinct.

Another example:
> The Star Wars universe is objectively different
> from the Star Trek universe.

Oh is it? Allow me to another summary trick:
————————
It’s a story about a captain of a really cool space ship and his crew. The crew is a collection of people with different backgrounds, abilities, temperament and attitudes, some feature superhuman abilities, but they work well together. The captain is a bit macho. Get into fights and does not follow rules. They fly around the space, from time to time visit a planet. They fight the bad guys. They fights often include shooting. When they are outgunned, they win by using unconventional tactics. The stories have lots of fans and a cult status.
————————

This actually not only matches Star Wars and Star Trek but also others, such as Farscape and Firefly.

Jay Lakner February 1, 2010 at 10:59 am

pro-IP-libertarian,

It seems that you are unable to strip away the subjective human interpretation you give to the Universe and see what is actually there.

Consider the following sentence:

The giraffe ran off into the sunset.

What are the objective features of this sentence?

If you answered something along the lines of: “running, giraffe, sunset” then you are wrong.

If you answered something along the lines of: “small collections of black symbols separated by spaces on a white background” then you are correct.

The meaning you assign to that sentence is not an aspect of objective reality. It is a meaning that only you and other English speaking humans can derive from that sentence. Those symbols, upon being viewed, trigger brain activity of a giraffe running into the sunset.
But they do not trigger that brain activity in somebody who does not read english. Their senses are perfectly fine. Their perception is perfectly fine. They see the exact same symbols and spaces that you see. Yet when they view that sentence, it does not trigger brain activity of the sort that is triggered in you.

It demonstrates that the sentence is nothing more than a pattern of symbols. The meaning that you derive from the sentence is an image of a giraffe running off into the sunset. If someone were to claim ownership of that sentence, what exactly are they claiming in your eyes?

1. Are they claiming ownership of a sequence of symbols and spaces?
or
2. Are they claiming ownership of the entire concept of a giraffe running into the sunset?

Based on your answers so far, I’m guessing you answered 2. But then that get’s back to one of my original questions…

Do you consider the “meaning” that an artist/author conveys with their work to be a form of “property”?

Jay Lakner February 1, 2010 at 11:13 am

pro-IP-libertarian wrote:
“When one is based on the other – has the same plot and many of the same characters – it does mean they are similar, and causally related. If there were no Harry Potter book there would be no movie based on the book’s story.”

You continue to commit the same error. You seem to somehow believe that causality is the same as similarity.

If I choose a movie at random and then try to produce a second movie which is the exact opposite of the chosen movie, are the two movies similar?

They are definitely causally related. My movie would not exist if the movie I based it on did not exist.

But everything in my movie is the opposite of everything in the movie I based it on. How can they be considered similar? Aren’t they the exact opposite of similar?

Similarity and causality are completely different. One does not at all imply the other. How you can even dispute this is beyond me.

It’s like saying, the act of stealing and the act of sitting in prison are similar because one would not happen without the other.

Jay Lakner February 1, 2010 at 11:41 am

pro-IP-libertarian wrote:
“No, I defined similarity in terms of things that are objectively (characteristically) similar.”

“Objectively” does not mean “characteristically”. It has never meant “characteristically”. “Objectively” means to have actual existence.

Something can have objective characteristics and subjective characteristics. The objective characteristics of the word “giraffe” are seven black symbols on a white background. The subjective characteristics are whatever meaning you derive from looking at these symbols. They are subjective because they are characteristics that not everyone perceive to exist. You may think of a tall four legged animal, but someone who doesn’t speak English certainly doesn’t.

Objective:
1. Of or having to do with a material object.
2. Having actual existence or reality.
3.
a. Uninfluenced by emotions or personal prejudices: an objective critic.
b. Based on observable phenomena; presented factually: an objective appraisal.

It should be clear from the context of our discussion that I have been using definition 2. Maybe you should reread everything again, with a correct definition of “objectively” in mind?

Bala February 1, 2010 at 8:16 pm

pro-IP-libertarian,

” You are just assuming things based on the current, exclusion-based business model. ”

Not at all. Even in your example, can the squatters pland their organic croops or whatever on precisely the same spot on which I have a factory?

Instead of addressing this, you go off to the open spaces. What if the “open” spaces are not truly “open” but are uncovered parking lots for my trucks (which will routinely squash the squatters crops, organic or otherwise)? The 2 uses are then SIMULTANEOUSLY impossible.

” Someone distributing free, unauthorized copies of a song crowds out sales of the same song. ”

Crowding out does not reduce FREEDOM OF ACTION. It does reduce the compensation the original “creator” gets, but not the creator’s freedom. Is this that difficult to comprehend?

pro-IP-libertarian February 2, 2010 at 3:26 am

Peter Surda-

No, rather I claim that this distinction is completely irrelevant. The only reason why anyone would need to claim it’s relevant is because they need it for their theory to be correct. To me, it’s just a random irrelevant assumption.

I’m sure you would like to assume it is irrelevant, since your model depends on that assumption. They are different. True creation and innovation is scarce, that is why people want to copy and use the property created. Duplication ability is not scarce. If any IP was as good as the next the free music sites would be on their way to ruling the universe through ad revenue like Google – they are not.

So, what book am I summarising? Is it Harry Potter or Ender’s Game?

Or you could water down the archetypes even further and say that all art is about sex and/or death. There – now “there is no new intellectual property” or “all IP is the same”. But note how you undermine your own argument here. If people can’t objectively tell IP apart then why do they bother copying protected material? Why are some authors more popular than others? There is plenty of public domain material that is free or low cost. Human action is telling you that there are objective differences. Presentation, style, atmosphere, tone, characterization, etc. – dozens and dozens of variables.

As far as boundaries are concerned mentioning the archetypes actually harms your case. One simply has to make sure that they aren’t blatantly copying another author and they will be safe. How do we set these boundaries? The same way we set boundaries for other property violations that involve subjectivity, like fraud and related offenses. We make rules that generally catch the most serious, offensive, and blatant cases.

This underscores the problem in your argument. You do not provide a method to distinguish between an immaterial good that can be property and one that cannot (such as externalities). There is no way to make such a distinction, therefore, one must either reject IP or extend it to all causally related activities (i.e. externalities).

Wrong, the property can be identified. We set rules for subjective offenses like fraud and related offenses we can set rules for IP. Externalities are simply handled like they are with physical property, with the property owner just deciding on a product and price.

There are only two ways of “using” a good. One is when you literally consume it, making it at least temporarily or partially unavailable to anyone alse. This can only happen with rival goods. The other one is the metaphorical “use”, when you try to gain some benefit that is causally related to that good, but without the unavailability aspect. This is what we call non-rival, externalities, and this also covers all “IP”. Since there is no unavailability, if you still want to increase your benefits, you need to cover your status with contracts and a working business plan.

This coming from the person working with terms defined to support their model.

Real estate is quite a good parallel to IP. Land is only truly rivalrous in small parcels. We need homesteading and exclusion to optimally commercialize and make a market in the asset. Unavailability for commercialization IS present when one cannot exclude in IP, just as in real estate.

Your model is flawed because it involves defining terms to enable the taking of an asset from another without an agreement on price or indeed any agreement at all. And the ease of the taking isn’t an excuse or justification, as illustrated by numerous examples. Shoplifting actually involves approximately the same amount of effort as buying. Computer fraud can be easy. Trespassing can be easy. Etc…
Note we don’t claim those on the receiving end of those crimes/torts need a better living or business model.

Without a bilateral transaction there is no pricing mechanism in effect. Therefore you have the same pricing problems that occur in socialism. (per Mises/Silas Barta)

A good example. There is no “unavailability” present here. There is only “loss” of market share. “loss” and “crowding out” are a “meaning”, and you can’t own “meanings”. Furthermore, as I said before, the same effect would happen if you distributed substitutes or expressed negative opinion of that song, yet IP proponents typically don’t consider this a problem.

See above. There is an “unavailibility” for commercial use. Just as if you had a farm and people squatted in your fields but left you your farmhouse. Note again, we don’t consider land exclusion “owning” market share.

Bad reviews are already accepted externalities, as long as they aren’t intentionally dishonest or misleading.

Substitutes are accepted as either externalities or competition, not a factor.

pro-IP-libertarian February 2, 2010 at 4:05 am

Jay Lakner-

Do you consider the “meaning” that an artist/author conveys with their work to be a form of “property”?

See the response to Peter Surda, above. Reducing everything to archetypes and claiming “it’s all the same” doesn’t help your case. It isn’t the meaning. Authors have different styles, atmospheres, characterization, etc. Human action tells us consumers can tell the difference between authors because some are more popular than others. In fact archetypes hurt your case since an author only has to make sure a work isn’t a blatant copy of another’s to avoid infringement claims.

You continue to commit the same error. You seem to somehow believe that causality is the same as similarity.

With adaptations by definition they are similar, and causally related. That is a fact. The error is yours.

If I choose a movie at random and then try to produce a second movie which is the exact opposite of the chosen movie, are the two movies similar?

No.

Similarity and causality are completely different. One does not at all imply the other. How you can even dispute this is beyond me.

In some cases they are different and in some cases they are not. We were talking about an adaptation, which by definition is both similar and causally related.

It’s like saying, the act of stealing and the act of sitting in prison are similar because one would not happen without the other.

That wasn’t the example we were discussing. The example we were discussing was one where the acts by definition were both similar and causally related.

“Objectively” does not mean “characteristically”. It has never meant “characteristically”. “Objectively” means to have actual existence.

“Characteristics” is a synonym for “observable phenomena”. So yes, it does mean characteristically. Especially if we are talking about science or law.

It should be clear from the context of our discussion that I have been using definition 2. Maybe you should reread everything again, with a correct definition of “objectively” in mind?

No thanks, I clarified my meaning. My points still stand.

pro-IP-libertarian February 2, 2010 at 4:40 am

Bala-

Not at all. Even in your example, can the squatters pland their organic croops or whatever on precisely the same spot on which I have a factory?

Sure, when it’s finished there should be space on the roof, walls, sunlit open spaces inside, etc. (Containers, window boxes, trellises, etc.) We’ll take a look at your plans, since you can’t exclude us from coming in and taking a peek.(Oops, we might take a look at very valuable R&D too and commercialize it ourselves or sell it to someone.)

Instead of addressing this, you go off to the open spaces. What if the “open” spaces are not truly “open” but are uncovered parking lots for my trucks (which will routinely squash the squatters crops, organic or otherwise)? The 2 uses are then SIMULTANEOUSLY impossible.

We’ll rotate containers from the roof or from nearby squats into open parking spaces when they’re on the road. And watch you don’t injure anyone, because there are still laws against negligence, battery, etc. there just isn’t exclusion from real estate. It would be difficult and it would dramatically effect your ability to commercialize your property, but it would not be “impossible”.

That said, isn’t it great that current real estate exclusion lets you more effectively commercialize your property? No one unilaterally decides that they will commercialize your property, or unilaterally uses your property in a way that interferes with your commercialization. Notice that it isn’t “claiming a right to market share”, because someone can buy or homestead their own real estate and compete.

Crowding out does not reduce FREEDOM OF ACTION. It does reduce the compensation the original “creator” gets, but not the creator’s freedom. Is this that difficult to comprehend?

Wrong. It reduces the creators’ freedom to commercialize their property. Just like doing away with real estate exclusion would reduce the owners’ ability to commercialize their property.

And it is a unilateral taking of someone else’s asset. Since there is no agreed upon transaction and no price, there is no price signaling and mispricing similar to that resulting from socialism occurs.(Mises/Silas Barta) Taking someone else’s asset without their consent certainly restricts their freedom. And no, offering items for sale does not mean one should accept them being stolen. (See above: Ease of computer fraud or shoplifting does not justify either property violation.)

Peter Surda February 2, 2010 at 5:44 am

Dear pro-IP-libertarian,

> I’m sure you would like to assume it is irrelevant,
> since your model depends on that assumption.
Actually, it doesn’t. Whether it is valid or not, my theory is unaffected.

> They are different.
It is merely a matter of extent. They always share some commonalities and some distinctions. Yet you claim that sometimes the commonalities take precedence (“property”), and sometimes the distinctions (“externalities”) without explaining how you draw such conclusions.

> Or you could water down the archetypes even
> further and say that all art is about sex and/or
> death.
Exactly. It’s a matter of where you draw the line.

> But note how you undermine your own argument
> here.
I don’t. I never said that the aspects are never present, only that they sometimes aren’t. Elementary logic error on your side. The refutation of a claim “A always leads to B” is not “A never leads to B”, rather “A sometimes does not lead to B”.

> If people can’t objectively tell IP apart then why do
> they bother copying protected material?
Because the similarities are more useful to them than the distinctions. This is a subjective evaluation. There is no need for anything objective in this.

> As far as boundaries are concerned mentioning
> the archetypes actually harms your case.
I am afraid it harms yours and not mine.

> How do we set these boundaries? The same way
> we set boundaries for other property violations
> that involve subjectivity, like fraud and related
> offenses.
Regrettably for you, fraud requires an underlying contract. You can’t defraud a third party. Which is precisely what I’ve been arguing about.

> Wrong, the property can be identified.
No, it cannot. You merely assert this, without explaining how to actually do that.

> Externalities are simply handled like they are with
> physical property, with the property owner just
> deciding on a product and price.
Exactly. And because the goods covered by IP are just a form of externality, the owner is free to decide what strategy and contractual relationships to pursue in order to maximise his personal gain off it. There is no need for IP anywhere.

> This coming from the person working with terms
> defined to support their model.
This is coming from a person that is trying to base his assumptions on observation rather than theory-utilitarianism.

> Land is only truly rivalrous in small parcels.
So you are saying that it is rivalrous in small scope but not in large? I am afraid you are using the “utility” to define rivalry. That is an invalid approach. Utility is subjective.

> We need homesteading and exclusion to optimally
> commercialize…
So I am right. “Optimally commercialize”. You’re using an utilitarian approach. That invalidates your other part of the theory that tries a natural rights approach. You can’t mix them, you need to prove the independently.

> … and make a market in the asset. Unavailability
> for commercialization IS present when one
> cannot exclude in IP, just as in real estate.
This has nothing to do with property rights. The ability to market something depends on entrepreneurship and not exclusivity.

> Your model is flawed because it involves defining
> terms to enable the taking of an asset from
> another without an agreement on price or indeed
> any agreement at all.
Your theory is flawed because you assume there is an “asset” where there is none. There is no asset, only utility and that is subjective.

> And the ease of the taking isn’t an excuse or
> justification, as illustrated by numerous examples.
Yet again you are assuming the utilitarian approach. I don’t mind it per se, but you can’t arbitrarily switch between those two approaches (natural rights vs. utilitarian).

> Without a bilateral transaction there is no pricing
> mechanism in effect.
For the purposes of this debate, I’ll assume this is correct.

> Therefore you have the same pricing problems
> that occur in socialism. (per Mises/Silas Barta)
Silas’ argument has been refuted. I wrote a five-point refutation. Suffice to say that the ability to exclude has nothing to do with the calculation argument. If it was, it would refute all trade altogether, since noone can exclude third parties from all externalities of any good whatsoever.

> There is an “unavailibility” for commercial use.
Utility argument, metaphorical “unavailability”.

> Bad reviews are already accepted externalities,
> as long as they aren’t intentionally dishonest or
> misleading.
Accepted by whom? What is different if they are dishonest or misleading? Why is any of this relevant?

> Substitutes are accepted as either externalities or
> competition, not a factor.
Why is this relevant? It is only relevant because otherwise your theory is a fail.

Peter Surda February 2, 2010 at 5:48 am

Dear pro-IP-libertarian,

> In some cases they are different and in some cases
> they are not. We were talking about an adaptation,
> which by definition is both similar and causally
> related.
Yet you fail to define either causality or similarity. You admit that some externalities do not lead to a property claim. So you admit that causality is an insufficient condition for defining property. Then you claim that in some cases, similarity does not lead to a property claim either. So you admit again that similarity is not a sufficient condition for defining property.

These two conditions eliminated, your theory is left without a definition of property.

Jay Lakner February 2, 2010 at 12:55 pm

pro-IP-libertarian wrote:
“Authors have different styles, atmospheres, characterization, etc.”

All subjective. All dependent on human interpretation. All are “meanings” that humans derive from the work. Not one of these things is an objective characteristic of their work.

“With adaptations by definition they are similar, and causally related.”

No, no, no. Stop trying to evade the point.
I stated that the book and the movie were objectively completely different. To demonstrate their similarity, you continually brought up causality. I then demonstrated that causality doesn’t prove anything.

Now you introduce this new word, “adaptation”, whose meaning is so broad that I’m sure you’re going to try to twist its definition around to suit your needs.

By my definition of adaptation, my “complete opposite” movie IS an adaptation of the movie it’s based on. But you’re going to deny that and say that I’m using the word “adaptation” wrong.

So please, you need to specifically define “adaptation” before using that word again.

“In some cases they are different and in some cases they are not. We were talking about an adaptation, which by definition is both similar and causally related.”

Now you’re changing your tune. I guess you realised that equating similarity with causality is indeed a logical error. Unfortunately, instead of just admitting it and moving on, you’ve desperately tried to cover up your error by introducing this “adaptation” word.

“The example we were discussing was one where the acts by definition were both similar and causally related.”

Please stop being intellectually dishonest. We were discussing an example where the acts are causally related, but similarity was in dispute.

I specifically stated:
“The two are very different. However, humans assign the same meaning to the book as they do to the movie. So an individual might come to the conclusion that they are the same story. But in reality they are not.”

You countered by saying:
“Wrong. The movie is based on the book. There would be no movie in that form if the book hadn’t been created.”

You tried to demonstrate that they must be similar because they are causally related. I demonstrated the flaw in this thinking and now you’re trying to cover up your mistake.

In the grand scheme of things this is a meaningless series of forum posts which will probably never be read again. So you made a mistake, who cares? Can you at least try to be intellectually honest and move on. I don’t want to waste my time arguing with someone who is more interested in their own self-image than the content of the discussion.

“”Characteristics” is a synonym for “observable phenomena”. So yes, it does mean characteristically. Especially if we are talking about science or law.”

“Observable phenomena” is a subset of “characteristics”. ie all observable phenomena are characteristics but not all characteristics are observable phenomena. This is because there can be both objective characteristics and subjective characteristics. So no, they are not true synonyms.

But this is irrelevant at this point.

We are not trying to decipher a text here. We are trying to convey meaning to one another.
I have explained to you what I mean when I say “objectively”.
You should now understand my intended meaning of the word “objectively”.
It would be intellectually dishonest to pretend I mean something different than the meaning I intend.

Bala February 2, 2010 at 6:44 pm

pro-IP-libertarian,

Thanks for revealing the kind of mind it takes to form a position such as yours.

” And watch you don’t injure anyone, because there are still laws against negligence, battery, etc. ”

Why are such laws justified? What is the basis of these laws? Why should I not injure anyone?

” It would be difficult and it would dramatically effect your ability to commercialize your property, but it would not be “impossible”.

That said, isn’t it great that current real estate exclusion lets you more effectively commercialize your property? No one unilaterally decides that they will commercialize your property, or unilaterally uses your property in a way that interferes with your commercialization. ”

Oh!!! So rights, specifically property rights, originate from the need for commercialisation? Quite interesting and revealing (as I said, of the state of your mind).

Frankly, that’s where this discussion should start because your basic concept of rights itself is nothing more than a grab bag of notions based on “convenience”. Yours is not a “natural rights” position and hence, any argument between you and a person starting from the concepts of “natural rights” is bound to end in this situation.

So, please do tell me where man’s rights originate from and then let us take the case up using reason.

pro-IP-libertarian February 4, 2010 at 6:37 pm

Peter Surda-

Actually, it doesn’t. Whether it is valid or not, my theory is unaffected.

Wrong. If you believe in natural law, Austrian economics, and libertarianism, it does. Homesteading is part of the foundation of natural law and the others.

It is merely a matter of extent. They always share some commonalities and some distinctions. Yet you claim that sometimes the commonalities take precedence (“property”), and sometimes the distinctions (“externalities”) without explaining how you draw such conclusions.

Basically, we start with exact copies of protected works being infringing and work from there. Legal rules have developed to sort these out. Just because distinctions are difficult to make doesn’t mean they shouldn’t be made. Note we make legal rules to make difficult distinctions involving natural law rights all the time. Physical property homesteading, contracts, fraud, etc. So if you want to abandon natural rights the minute a difficult distinction comes up perhaps you are in the wrong field.

Unfortunately I can’t address the rest of your points until later, just wanted to chime in when I could.

I will be addressing the other posters too if they are still following.

Peter Surda February 4, 2010 at 7:39 pm

Dear pro-IP-libertarian,

> If you believe in natural law, Austrian economics,
> and libertarianism, it does.
I still fail to see the connection. Some activities are harder to perform than others, that is correct. But this does not serve as an explanation for anything in natural law, Austrian economics or libertarianism. In fact, it’s a utilitarian approach.

> Basically, we start with exact copies of protected
> works being infringing and work from there.
You begin with a faulty assumption already. There is no such thing as an “exact copy”. It’s just an abstraction, or a metaphor that we use when we deem the distinctions irrelevant.

> So if you want to abandon natural rights the
> minute a difficult distinction comes up perhaps
> you are in the wrong field.
On the contrary, it is you who insists on squeezing natural rights in some place where there are none.

> Unfortunately I can’t address the rest of your
> points until later, just wanted to chime in when I
> could.
I don’t have as much time myself as I would like to argue, so a slower pace is welcomed.

pro-IP-libertarian February 5, 2010 at 11:35 pm

Peter Surda-

I still fail to see the connection. Some activities are harder to perform than others, that is correct. But this does not serve as an explanation for anything in natural law, Austrian economics or libertarianism. In fact, it’s a utilitarian approach.

Because those are based partly on principles of self-ownership and homesteading.

You begin with a faulty assumption already. There is no such thing as an “exact copy”. It’s just an abstraction, or a metaphor that we use when we deem the distinctions irrelevant.

Not at all. You know what “copies” are from contracts and titles for physical property. There is an original, and then there is a copy. If you can’t understand the “abstract” concept of originals and copies there I guess there goes physical property too…

On the contrary, it is you who insists on squeezing natural rights in some place where there are none.

Wrong. Homesteading (and self-ownership) is one of the foundations of natural rights, and the same person that documented and perhaps originated the concept believed homesteading applied to intellectual property as well.

Peter Surda February 6, 2010 at 4:40 am

Dear pro-IP-libertarian,

> Because those are based partly on principles of
> self-ownership and homesteading.
We are moving in circles. We’re back to the causality argument, which you yourself admit is an insufficient condition for homesteading.

> You know what “copies” are from contracts and
> titles for physical property.
I am not sure I understand. If a “copy” is made according to a contract, then it is the contract that defines the scope of copy, or, which attributes are relevant and which not. This still does not imply that the result is an “objective copy”.

> There is an original, and then there is a copy.
Indeed. You yourself admit that there is a distinction between them by calling one of them “original” and one of them “copy”. Now, without using the causality argument, we are stuck with the “similarity”, which as shown before and above, is also subjective.

> If you can’t understand the “abstract” concept of
> originals and copies there I guess there goes
> physical property too…
With physical goods, there is no “original” and “copy”. There is always just one. There is no way to distinguish one physical object from the same physical object.

pro-IP-libertarian February 8, 2010 at 6:38 am

Peter Surda-

We are moving in circles. We’re back to the causality argument, which you yourself admit is an insufficient condition for homesteading.

Not sure what context you are referring to. The only thing necessary for physical homesteading is enclosure, which is definitely “caused” by the homesteader. The process for IP homesteading is similar. This is a long thread, cite it or paraphrase the exchange please. If there is an inconsistency I’ll be happy to address it.

I am not sure I understand. If a “copy” is made according to a contract, then it is the contract that defines the scope of copy, or, which attributes are relevant and which not. This still does not imply that the result is an “objective copy”.

No, I wasn’t referring to a contract transaction.

I was referring to contracts as patterns. You claim it is some great mystery telling an original IP creation from a copy. Yet much of our physical property rights are based on written contracts – and copies of contracts. We have to recgonize different “patterns” for recording and transacting with physical property, so it is no great hardship to do so with intellectual property.

Indeed. You yourself admit that there is a distinction between them by calling one of them “original” and one of them “copy”. Now, without using the causality argument, we are stuck with the “similarity”, which as shown before and above, is also subjective.

Homesteading IS causality. With both physical property and intellectual property. With physical property you enclose or whatever and go down to the courthouse (or land office, etc.) and get your homesteading recognized. With intellectual property you put it down in writing and go get a copyright, patent, trademark, etc.

What’s different with intellectual property is you want to equate a duplicate of already homesteaded IP with the original. But it has already been homesteaded. It is like you coming into my apple orchard and picking the apples and claiming “look, I did the picking, these are mine”. That is incorrect because my homesteading claim is superior to yours.

With physical goods, there is no “original” and “copy”. There is always just one. There is no way to distinguish one physical object from the same physical object.

Couple problems with this. First of all, some physical property can and does need to be distinguised, that’s why we have deeds, etc. – a lot of land looks just like the land next to it. Next, with homesteading part of the process is to make sure your homesteading is recognized and easy to establish in court if that becomes necessary. Same with IP homesteading.

Peter Surda February 8, 2010 at 7:22 am

Dear pro-IP-libertarian,

let me first explain the moving in circles. Our debate goes like this:

You: Property is derived from causality.
Me: What about externalities?
You: Ok, you need the additional condition of similarity.
Me: Similarity is subjective.
You: Ok, but original and copy are causally related.

So you see? You’re moving in circles. You admit yourself that both conditions are insufficient. Absent the condition that is sufficient, you are left without a definition of property and your theory falls apart.

> You claim it is some great mystery telling an
> original IP creation from a copy.
There is no mystery, merely subjectivity. Actually, the whole sentence is a bit confusing. I claim indeed that an original and copy are different, not that it is difficult to tell them apart. Sometimes it might be difficutl to say which is which, nevertheless there are still two of them.

> Yet much of our physical property rights are
> based on written contracts – and copies of
> contracts.
This does not invalidate my argument. For this to work it is sufficient that both parties involved agree on the meaning to a sufficient degree. An arbiter only has to ascertain whether there is an overlap between what the parties involved mean. That overlap is the contract. If there is no overlap or an insufficient one, there is a mistake or fraud. None of this requries that anything objective, it wholly depends on the meaning that the involved parties derive from the communication. It does not depend on a third party opinion. Even the arbiter does not need to share the meaning.

> What’s different with intellectual property is you
> want to equate a duplicate of already
> homesteaded IP with the original. But it has
> already been homesteaded.
As I am attempting to explain, so far IP proponents have failed to demonstrate the “already” part. I fail to see this description as anything else than a metaphor, there is no empirical evidence for this ever happening. Furthermore, as I pointed out again several times, this brings up the question of boundaries, which again has not been answered by any of the IP proponents.

> It is like you coming into my apple orchard and
> picking the apples and claiming “look, I did the
> picking, these are mine”. That is incorrect
> because my homesteading claim is superior to
> yours.
While it is true that this example is valid within your theory, it is also valid within mine. Taking apples alters the tree and makes the apples unavailable to anyone else. However, making a copy of an apple does not alter either the idea of apple nor the existing “original” apples, nor does it make the existing “original” apples unavailable to anyone. Furthermore, unlike your theory, my theory does not have the boundary problem.

> First of all, some physical property can and does
> need to be distinguised, that’s why we have
> deeds, etc. – a lot of land looks just like the land
> next to it.
I am not sure I understand this. Apart from the feature of “looks”, land has the feature of location. Precisely because “looks” are subjective, they are not a suitable determinant of boundaries.

> Next, with homesteading part of the process is to
> make sure your homesteading is recognized and
> easy to establish in court if that becomes
> necessary. Same with IP homesteading.
Correct me if I’m wrong, but the courts do not recognise land ownership based on what it looks like, rather where it is located.

pro-IP-libertarian February 8, 2010 at 7:39 am

Jay Lakner-

All subjective. All dependent on human interpretation. All are “meanings” that humans derive from the work. Not one of these things is an objective characteristic of their work.

Subjectivity is everywhere, including in contracts for labor and physical property. That doesn’t keep us from distinguishing it. Same with other concepts involving natural law, like force and fraud. We deal with distinguishing “subjective” similarities all the time. (By using “objective” or observable criteria, phenomena, or characteristics.)

No, no, no. Stop trying to evade the point.
I stated that the book and the movie were objectively completely different. To demonstrate their similarity, you continually brought up causality. I then demonstrated that causality doesn’t prove anything.

You picked a bad example to use, because the book and movie are causally related by definition.

In any case homesteading basically is and relies on causation. See Locke.

Now you introduce this new word, “adaptation”, whose meaning is so broad that I’m sure you’re going to try to twist its definition around to suit your needs.

I don’t need to twist anything. An adaptation is the process of “adapting” a story from one medium to another. Same main story. Same main characters. Same main plot. A movie adapted from a book is by definition both similar and causally related.

By my definition of adaptation, my “complete opposite” movie IS an adaptation of the movie it’s based on. But you’re going to deny that and say that I’m using the word “adaptation” wrong.

You are using it wrong. An adaptation follows the same basic plot. Doing things completely different could either be a completely different work or possibly a parody, depending on how it was done.

Now you’re changing your tune. I guess you realised that equating similarity with causality is indeed a logical error. Unfortunately, instead of just admitting it and moving on, you’ve desperately tried to cover up your error by introducing this “adaptation” word.

Not at all. I just pointed out that adaptations are both similar and causally related, which they are.

Please stop being intellectually dishonest. We were discussing an example where the acts are causally related, but similarity was in dispute.

Watch the spurious “dishonest” accusations. Up until now I’ve ignored your caustic, insulting, and condescending tone and ad hominems. If you’re going to start claiming I’m dishonest then I may decide to stop responding to your comments.

You tried to demonstrate that they must be similar because they are causally related. I demonstrated the flaw in this thinking and now you’re trying to cover up your mistake.

Didn’t make a mistake. Adaptations are both similar and causally related. I confirmed that other examples you gave were disimilar.

In the grand scheme of things this is a meaningless series of forum posts which will probably never be read again. So you made a mistake, who cares? Can you at least try to be intellectually honest and move on. I don’t want to waste my time arguing with someone who is more interested in their own self-image than the content of the discussion.

The mistake is yours. See above.

“Observable phenomena” is a subset of “characteristics”. ie all observable phenomena are characteristics but not all characteristics are observable phenomena. This is because there can be both objective characteristics and subjective characteristics. So no, they are not true synonyms.

I didn’t say they were “true synonyms”. Meanings don’t have to overlap completely for words to be synonyms.

It would be intellectually dishonest to pretend I mean something different than the meaning I intend.

I didn’t. And you now know my intended meaning. And you’ve been warned about the “dishonesty” nonsense.

pro-IP-libertarian February 8, 2010 at 8:47 am

Peter Surda-

You: Property is derived from causality.
Me: What about externalities?
You: Ok, you need the additional condition of similarity.
Me: Similarity is subjective.
You: Ok, but original and copy are causally related.

So you see? You’re moving in circles. You admit yourself that both conditions are insufficient. Absent the condition that is sufficient, you are left without a definition of property and your theory falls apart.

That’s a mischaracterization:

pil: IP is derived from homesteading.

PS: What about externalities?

pil: Basically, same as with physical property. The IP owner just decides how they’re going to sell/license their good.

PS: Similarity is subjective.

pil: Subjectivity is everywhere, including in numerous principles in the law dealing with physical property. So to claim subjectivity is an obstacle means we discard physical property too. To throw out the pricing mechanism for IP for basically collectivist claims on the grounds of “subjectivity” would be pretty unwise.

Homesteading and some rulemaking are sufficient for physical property, they are sufficient for intellectual property as well.

There is no mystery, merely subjectivity. Actually, the whole sentence is a bit confusing. I claim indeed that an original and copy are different, not that it is difficult to tell them apart. Sometimes it might be difficutl to say which is which, nevertheless there are still two of them.

There is plenty of subjectivity in the law dealing with physical property. Once you recognize homesteading for IP its just a matter of rulemaking. Just like with real estate and the rulemaking surrounding homesteading and exclusion there.

As I am attempting to explain, so far IP proponents have failed to demonstrate the “already” part. I fail to see this description as anything else than a metaphor, there is no empirical evidence for this ever happening. Furthermore, as I pointed out again several times, this brings up the question of boundaries, which again has not been answered by any of the IP proponents.

There are documentation requirements for IP. This is analogous to homesteading and getting one’s homestead recognized.

Boundaries – how much exclusion to allow – would be addressed with rulemaking.

While it is true that this example is valid within your theory, it is also valid within mine. Taking apples alters the tree and makes the apples unavailable to anyone else. However, making a copy of an apple does not alter either the idea of apple nor the existing “original” apples, nor does it make the existing “original” apples unavailable to anyone. Furthermore, unlike your theory, my theory does not have the boundary problem.

Your analogy is only relevant if you are talking about a new kind of apple that was created by me. If you took the apple and produced it commercially your theory has worse problems than the boundary problem. Your claim that you are entitled to copy my apple without my consent represents a unilateral, collectivist claim on another’s labor/property. And most importantly your unilateral appropriation of my apple design would throw out the pricing mechanism (per Silas Barda) for creating new apple designs and varieties, especially those that were costly or time-consuming.

The need for a little rulemaking, like we have with real property exclusion, is a lot better than throwing out the pricing mechanism and installing IP collectivism.

I am not sure I understand this. Apart from the feature of “looks”, land has the feature of location. Precisely because “looks” are subjective, they are not a suitable determinant of boundaries.

Correct me if I’m wrong, but the courts do not recognise land ownership based on what it looks like, rather where it is located.

What’s important with homesteading is not only that the land is identified, but that you are identified as the owner (the one mixing their labor with the land) and that this is acknowledged. The acknowledgement through documentation is what is important, just like with IP homesteading.

pro-IP-libertarian February 8, 2010 at 9:04 am

Bala-

Why are such laws justified? What is the basis of these laws? Why should I not injure anyone?

Because each person owns themself (otherwise there is some state of slavery) and you would be infringing on their rights, etc. Our hypothetical only dealt with doing away with exclusion in real estate.

Oh!!! So rights, specifically property rights, originate from the need for commercialisation? Quite interesting and revealing (as I said, of the state of your mind).

No, that’s just one of the main reasons for exclusion. There are many others. But it’s pretty funny it was one of the first things you started focusing on prattling on about your factory and such.

Frankly, that’s where this discussion should start because your basic concept of rights itself is nothing more than a grab bag of notions based on “convenience”. Yours is not a “natural rights” position and hence, any argument between you and a person starting from the concepts of “natural rights” is bound to end in this situation.

Nonsense. My position is more strongly rooted in natural rights than yours.

So, please do tell me where man’s rights originate from and then let us take the case up using reason.

Man’s rights begin with self-ownership and the corresponding right to one’s labor (Note: Not a particular value on that labor, the right to sell or form a contract for it.) and branches out from there through homesteading.

Peter Surda February 8, 2010 at 10:52 am

Dear pro-IP-libertarian,

I’m glad we’re making some progress.

> Subjectivity is everywhere, including in numerous
> principles in the law dealing with physical property.
You use subjectivity here to denote different issues that I am pointing out. I am talking about measurable aspects, you are talking about utility or meaning. There is nothing subjective in physical objects. Their existence determines their scope. Of course, we can discuss what object belongs to whom, and how an apple can be used. But that is a completely different issue. An apple does not extend beyond the skin, and ownership of an apple does not extend to places outside this skin. Why should then (the immaterial) book extend beyond the author’s head, and the homesteading beyond his copies? That is a completely unfounded assumption. Whereas with physical objects, their scope is determined by measurement, with immaterial it is determined by meaning or utility. So you see, we are talking about different “subjectivity”. Even if we can’t be completely sure with regards to results of measurement, we are still sure that there is only one thing to measure. But with meaning and utility, the scope can be literally anything.

Furthermore, you evaded the actual issue. The condition remains subjective. My condition (alteration and/or making unavailable) doesn’t.

> Homesteading and some rulemaking are sufficient
> for physical property, they are sufficient for
> intellectual property as well.
Of course, this misses that it is the scope of homesteading that we disagree about.

> Once you recognize homesteading for IP its just
> a matter of rulemaking.
Yet already you are making a rule where you assert that the homesteading of immaterial extends beyond one’s head. That’s the equivalent of claiming that ownership of an apple extends to objects in its proximity, or to objects that taste sweet when eaten.

> Just like with real estate and the rulemaking
> surrounding homesteading and exclusion there.
With physical objects, you homestead the actual objects based on their measurable properties (which are objective), rather than utility (which is subjective). That invalidates your real estate example. With immaterial objects, you again have a choice between two approaches, but regrettably for you, both are subjective: meaning and utility.

> There are documentation requirements for IP.
> This is analogous to homesteading and getting
> one’s homestead recognized.
Yet, before we even come to this stage, we need to agree that homesteading ideas extends beyond one’s head.

> Your analogy is only relevant if you are talking
> about a new kind of apple that was created by
> me.
What is “new kind of apple”? Is this again you trying to determine the limit where dissimilarities are relevant?

> If you took the apple and produced it
> commercially your theory has worse problems
> than the boundary problem.
What do you mean “took the apple”? If I take an apple without your permission, that would be theft.

> Your claim that you are entitled to copy my apple
> without my consent represents a unilateral,
> collectivist claim on another’s labor/property.
What are you talking about? If I copy an apple, I created an externality. Unless you covered such an occasion by contracts, your ownership does not extend to it. Exactly the same way as externalities are handled with regards to material goods.

> And most importantly your unilateral appropriation
> of my apple design would throw out the pricing
> mechanism (per Silas Barta) for creating new
> apple designs and varieties, especially those that
> were costly or time-consuming.
Yet, for some strange reason, none of the IP proponents are bothered by the same effect being achieved by externalities or substitutes. For some strange reason, you keep asserting that there is a difference between an illegitimate copy and an externality, between an original and a substitute, without explaining anything. I keep explaining that there is no such difference, and you just shrug it off.

> The need for a little rulemaking, like we have with
> real property exclusion, is a lot better than
> throwing out the pricing mechanism and installing
> IP collectivism.
Your argument fails on externalities, substitutes, etc.

> What’s important with homesteading is not only
> that the land is identified, but that you are
> identified as the owner (the one mixing their labor
> with the land) and that this is acknowledged.
This is only at the second stage of the theory. In the first, it needs to be determined what a homesteading would mean. You have to define it first, which you haven’t because your conditions are insufficient.

Explicitly or implicitly, you provide some of the following conditions for homesteading:
– causality (you admitted insufficient)
– similarity (you admitted subjective)
– utility (you denied as a condition)
– meaning (you have not mentioned this but I added it for completeness’ sake)

I think that you are mentally stuck with this approach to defining property. As I have demonstrated however, this approach does not deliver a usable definition. This is the core issue that you need to solve before the rest of your arguments even are relevant. You need either to make your conditions sufficient, or abandon this approach. I did the latter: I abandoned this approach and favour a different one, that is based sufficient conditions and measurable boundaries.

Niko Matsakis February 23, 2010 at 7:50 am

On a related note, I like this scheme for reorganizing patent law. The key idea is to change the law so that the value of a patent is proportional to how much effort it saved you in practice. This means that ideas which take a long time to think up but, once conceived, are easily reproduced, get more protection than ideas that are simply a lot of engineering effort. I think this intuitively lines up with what we expect from patents, while preserving the right of an inventor to invent freely without fear of what others might have done in the past.

tony October 26, 2011 at 9:51 pm

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{ 249 comments… read them below or add one }

Peter Surda January 23, 2010 at 7:17 am

Dear Kerem,

> Lockean/Rothbardian theory that only justifies
> homesteading. It is not a positivist theory deciding
> what can and what can not property by arbitrary
> distinctions.
That what you are calling “Lockean/Rothbardian theory” is actually “Lockean/Rothbardian theory” + “Kerem Tibuk’s arbitrary axioms”. You need to understand this before we progress any further.

REPLY

Russ January 23, 2010 at 8:04 am

newson wrote:

“the justification of private property is not that it creates more wealth, that is a happy side-effect. it’s that it is the only way to avoid universal violence…”

Isn’t avoiding a war of all against all for material goods useful?

“…are you suggesting the imposition of violence to increase overall utility? or that a certain amount of violence is ok, but not too much?”

Well, you know the answer to that question, newson, because you know that I’m a minarchist. Do the math. Anyway, even in Ancapistan, you’d have to impose violence on some people to get them to leave other peoples’ property alone.

“besides the history of radio prior to the fcc shows regulation wasn’t necessary for a florid radio industry.”

When did I ever mention the FCC? I’m just talking about having rights in EM spectrum. That doesn’t necessitate a regulatory agency, only courts of law, and a registration mechanism of some sort.

“you surely don’t expect everyone in a given radius to shut up when you talk, using scarce audible frequencies, so give random a break.”

I expect that they don’t speak so loud that I’m not able to carry on a conversation.

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Russ January 23, 2010 at 8:43 am

ABR wrote:

“Russ wrote: “Even if the airport came first, and then people buy surrounding land, what then? Would easement right conditions be attached to their property? How so?”

By action. The planes are flying over the newcomers’ land. Every day.”

So? The newcomer’s land was previously unowned, so there could have been no easement contracts with the non-existent former owners. So when the newcomers came, there were no easement contracts to bind them. So I don’t see how you could use easements to get this right to make noise, in this case.

If you’re saying that by making noise (or radio waves) before the newcomers came, the airport homesteaded the right to make noise (or radio waves) in that area, I’m not sure that follows from pure property rights. The so-called “homesteader” can emit noise, radio waves, pollution, whatever, as long as the surrounding area is unowned, sure. Who could object except maybe an eco-nazi? But once the land is homesteaded (and in a pure physical property rights system, only physical property such as land *can* be homesteaded), the first guy is now emitting noise, or whatever, onto somebody else’s property. He’s violating their rights.

If you still say that he has the right to “homestead” the right to produce noise in an area, that’s fine, you can do that, but I don’t think it can be derived from pure property rights. Likewise with homesteading the right to emit radio waves. If somebody homesteads land, they now own *physical* property. But if somebody homesteads “the right to emit radio waves at X Mhz over a given area”, they haven’t homesteaded *physical* property. They’ve homesteaded a more abstract right which we have been calling EM spectrum “property”. Once you say that somebody can do that, I think you’ve just admitted EM spectrum rights, as I conceive them.

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Russ January 23, 2010 at 9:21 am

Peter Surda wrote:

“I already explained why this definition is problematic. Any action whatsoever that is undesired can be declared trespass.”

I think this is similar to the point I made against Silas when we were talking about his IP theory. I said that just because he desires to use his property to get such-and-such a result, and that I “interfered” with his desire, that does not necessarily mean that I violated his rights.

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ABR January 23, 2010 at 12:29 pm

Russ wrote: “If you still say that he has the right to “homestead” the right to produce noise in an area, that’s fine, you can do that, but I don’t think it can be derived from pure property rights.”

I agree. That is, this form of homesteading is a weaker proposition than the primary form: mixing one’s labour with the land. However, I do think this form of homesteading is essential to life. Water rights, in particular, would not exist without this form of homesteading.

How can a person mix his labour with a river, other than by damming or diverting? If a person wishes to siphon water for drinking or irrigation, he establishes a right to proportional consumption. If we don’t grant him that right, then we’re back to the tragedy of the commons.

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Jay Lakner January 23, 2010 at 3:50 pm

Kerem Tibuk,

Please answer Magnus’ question:

“Can Crusoe legitimately travel to the second island and use force to stop the islanders, whom he never met, from using the ideas that Friday transmitted to them?”

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pro-IP-libertarian January 23, 2010 at 4:08 pm

Peter Surda-

Duplication is a metaphor, it is not an empirical phenomenon.

No, duplication or copying is an identifiable and measurable human action.

The only reason that you claim that it is “the same product” is that it appears “too similar” to you, or has the same utility. This is a result of subjective evaluation rather than objective reality.

No, there was definitely a first Stephen King novel. Or a first motorcycle. These wouldn’t have existed without the intellectual and to some degree physical homesteading of the creator.

Duplicating or copying these can be distinguished from the creation of the first one. They wouldn’t be possible, by definition, without the creation of the first one.

So does the selling of substitutes, finding ways of increasing productivity or criticising the features of the product. It implies that the creator owns his market share.

Those don’t involve using the creator’s homesteaded or owned property. Me starting another beach house bed and breakfast further down the beach from yours isn’t stealing from you. Grazing my llama herd directly on the lawn of yours is akin to stealing.

To put it more succinctly: Duplication is not equivalent to creation. Competing, alternate creation is equivalent to creation.

This is why I dislike the word “scarce”. It leads to confusion. IP is non-rival, consumption does not decrease supply.

It is rivalrous in the way radio spectrum or real property is rivalrous – duplication without homesteading or license crowds out profitable use the way overlapping broadcasting or trespassing does.

Note again this is not preventing competition, alternate homesteading – true alternate creation – is available.

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pro-IP-libertarian January 23, 2010 at 4:27 pm

Peter Surda-

The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.

You’re arguing by definition. In the case of real property, you are saying exclusion is a necessary condition for the ability to use and trade the good. The same is true for IP. Theoretically, you could use and trade real property without exclusion but the value would be greatly reduced. The value is created and maintained by the legal system. Likewise with IP.

Indeed, because these problems are the result of natural features of rival goods. Yet, if we took away exclusion from non-rival goods, apart from some revenue redistribution and some business models becoming unprofitable there are no other negative effects and a plethora of positive ones. The same results would occur when any artificial monopoly or redistribution scheme were cancelled.

Subjectively, there would be many positive effects for many people with the abolishment of real estate exclusions. The price for subsistence-level living would go way down – all you would need is a tent or car with a camper for shelter. If the “monopoly” or “redistribution scheme” for intellectual property homesteading is “artificial”, the one for real property can be characterized as such as well.

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pro-IP-libertarian January 23, 2010 at 4:54 pm

Scott D-

This is where the socialists try to weasel their way through with much the same arguments that the pro-IP libertarian uses to justify their position. The money taken for government welfare programs is not theft because the benefits to society accrue back to the individual who is taxed, the socialist says. Functionally, this is little different from the arguments that claim the utilitarian benefits of an IP system.

Not at all. It’s akin to the real property rights system. The state provides a deed that proves ownership so that individual rights can be protected, trade can occur, etc. The IP law system does the same.

I could refer to the anti-IP crowd as collectivists for wanting to provide a public claim on homesteaded intellectual property. It’s “the people’s” music!

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pro-IP-libertarian January 23, 2010 at 5:05 pm

Jay Lakner/Magnus-

Kerem Tibuk,

Please answer Magnus’ question:

“Can Crusoe legitimately travel to the second island and use force to stop the islanders, whom he never met, from using the ideas that Friday transmitted to them?”

Not to speak for Kerem here, but you are mixing metaphors. The Crusoe example refers to a case involving a primitive age, different countries, different cultures, etc.

Let’s put it this way: In the present day if someone offered you a free music download and it wasn’t the musician and wasn’t on one of the free websites you have a pretty good idea that you are violating copyright, even if you never met the musician before. You also know you could download the same song for a $1 or so on one of the paid services.

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Stephan Kinsella January 23, 2010 at 5:31 pm

Kerem Tibuk:

“First of all I don’t know how it became that Kinsella is in the position of defending Lockean/Rothbardian property rights”

Because I’m the Uber-Lockean, of course!

“Lockean/Rothbardian theory … nowhere it is implied on scarce resources can be homesteaded. “First comer” principle can confuse people but that principle doesn’t say scarcity is prerequisite but instead it means “if there is scarcity, then the tie breaker is the first comer” principle.”

Right. And you guys undercut this: you say that if there is a scarce resource, say a piece of paper owned by A pursuant to Lockean homesteading, then B gets to control and use and own it, if B thinks of a way to use B’s own property. That means B is the tie breaker winner, even though B is not the first comer.

Kerem, very generous of you to self-PWN.

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Russ January 23, 2010 at 6:03 pm

pro-IP-libertarian wrote:

“Peter Surda wrote: “The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.”

You’re arguing by definition. In the case of real property, you are saying exclusion is a necessary condition for the ability to use and trade the good. The same is true for IP. Theoretically, you could use and trade real property without exclusion but the value would be greatly reduced. The value is created and maintained by the legal system. Likewise with IP.”

But exclusion is not a necessary condition for the ability to use and trade patterns. It’s certainly not necessary to use them; multiple people can easily use copies of patterns at the same time. People could also trade them, if they wished. Of course, the price would be very low, but that doesn’t mean that they couldn’t do it. It just means that can’t make the profit they would like out of it. You’re saying that this “reduces the value” just like with real property. But now you’re mixing meanings. Not having material property rights would “reduce the value” of real material in two senses; 1) the monetary value, and 2) the “use” value (the value you get out of something by using it). Not having IP rights would only reduce the value of the pattern in the monetary sense, but not in the use sense.

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Russ January 23, 2010 at 6:11 pm

Stephan Kinsella wrote:

“…I’m the Uber-Lockean…”

Yeah, well I’m still the evil utilitarian Übermensch! MWAHAHAHA!!!

“Kerem, very generous of you to self-PWN.”

Ya know, if you’re going to take pokes at Kerem this way, it’s not fair that you ask him to be civil, too.
Pick one.

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Peter Surda January 23, 2010 at 6:47 pm

Dear pro-IP-libertarian,

> No, duplication or copying is an identifiable and
> measurable human action.
You are mixing two things. Indeed, when you claim that copying occurs, your base for that claim is that you observe some human action. But you do not observe “the copying”.

> No, there was definitely a first Stephen King
> novel. Or a first motorcycle.
Yes, there were. So what?

> These wouldn’t have existed without the
> intellectual and to some degree physical
> homesteading of the creator.
Yes, there is a causal relationship. So what? This does not prove that Stephen King’s novels or motorcycles, respectively, share some mystical identity.

> Duplicating or copying these can be
> distinguished from the creation of the first one.
Yes, it can. But that does not prove that they are “the same”. You say yourself that they can be distinguished, and at the same time claim that they are “the same”. Does the dichotomy not bother you?

> They wouldn’t be possible, by definition, without
> the creation of the first one.
Again, so what?

(substitutes & critisizing)
> Those don’t involve using the creator’s
> homesteaded or owned property.
You are assuming your conclusion.

> Me starting another beach house bed and
> breakfast further down the beach from yours
> isn’t stealing from you.
Yet according to you, selling another book is. Again, does the dichotomy not bother you?

> Grazing my llama herd directly on the lawn of
> yours is akin to stealing.
At least we can agree on something.

> To put it more succinctly: Duplication is not
> equivalent to creation.
Surprisingly, this does not stop you from claiming that the duplicate is “the same” as the original.

> Competing, alternate creation is equivalent to
> creation.
This is a correct, however it only addresses the causality issue.

> It is rivalrous in the way radio spectrum or real
> property is rivalrous – duplication without
> homesteading or license crowds out profitable
> use the way overlapping broadcasting or
> trespassing does.
A couple of paragraphs above you said that it does not bother you when another bed and breakfast crowds out profitable use of yours. Besides, you fail to explain why you reject my definition, other than that you need your in order for your theory to be valid.

Rival goods are evident. If you consume them, they are gone. Forever. No more. No matter how you twist the meaning or change the laws.

> Note again this is not preventing competition,
> alternate homesteading – true alternate creation
> – is available.
This distinction is only valid if you re-define trade as a unilateral declaration instead of a bilateral agreement. In other words, if one owns a market share.

> You’re arguing by definition.
No, you are.

> In the case of real property, you are saying
> exclusion is a necessary condition for the ability
> to use and trade the good.
Actually, I’m not. I’m claiming that for rival goods, exclusion is a necessary condition for the ability to use and trade the good.

> The same is true for IP.
No, it’s not.

> Theoretically, you could use and trade real
> property without exclusion but the value would
> be greatly reduced.
Now you are using the value definition of property, which was discredited several times during the course of the IP debates on this blog, and before that by actual economists. Therefore, this sentence is irrelevant.

> The value is created and maintained by the legal
> system. Likewise with IP.
Value is created by markets. IP or no IP. Irrelevant.

> Subjectively, there would be many positive
> effects for many people with the abolishment of
> real estate exclusions.
Yes, there would. However, they real estate would become unavailable to those that owned it before.

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Philip January 23, 2010 at 10:03 pm

The documentary The Future of Food discusses some interesting problems with patents related to genetic engineering of plants.

The first fifteen minutes will discuss most of the patent problem which came to a head in the Monsanto Canada v. Schmeiser case.

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pro-IP-libertarian January 24, 2010 at 5:47 am

Stephan Kinsella-

Right. And you guys undercut this: you say that if there is a scarce resource, say a piece of paper owned by A pursuant to Lockean homesteading, then B gets to control and use and own it, if B thinks of a way to use B’s own property. That means B is the tie breaker winner, even though B is not the first comer.

Yet you think it is entirely reasonable for X to prevent Y from using their transmission equipment on certain frequencies. It’s Y’s transmission equipment! You’re violating Y’s property rights!

In a slightly more extreme example, you forbid me from herding my tired llamas across the yard of your beach house. But you have full use of the rest of the property, and the yard after I’ve moved them along. The humanity!

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pro-IP-libertarian January 24, 2010 at 6:52 am

Russ-

But exclusion is not a necessary condition for the ability to use and trade patterns. It’s certainly not necessary to use them; multiple people can easily use copies of patterns at the same time.

Exclusion isn’t necessary to use real estate either. You could squeeze a large number of people into the average 3br 2 ba house. Exclusion aids in effective use and trade in both instances.

Not having IP rights would only reduce the value of the pattern in the monetary sense, but not in the use sense.

There is plenty of evidence to suggest people derive other benefits from restricting access. People derive lots of psychic and aesthetic benefits from “exlusivity”, not in the economic sense but in the sense of rarity, novelty, salience, etc.. Exclusive fashions, exclusive country clubs, cool/trendy teenage clothes, etc. So arguably use is effected as well. (Not saying this is rational or sensible, just stating it exists.)

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pro-IP-libertarian January 24, 2010 at 7:37 am

Peter Surda-

You are mixing two things. Indeed, when you claim that copying occurs, your base for that claim is that you observe some human action. But you do not observe “the copying”.

Yes, there were. So what?

Yes, there is a causal relationship. So what? This does not prove that Stephen King’s novels or motorcycles, respectively, share some mystical identity.

You admit that creation can be distinguished from duplication. Creation: creating a new item or type of item. Duplication: making a copy of a created item.

I’m not saying that there is anything “mystical” about creation, just that it is involves the intellectual homesteading of property, duplication does not. You are the one equating creation with duplication and claiming they are equivalent.

Yes, it can. But that does not prove that they are “the same”. You say yourself that they can be distinguished, and at the same time claim that they are “the same”. Does the dichotomy not bother you?

You are the one claiming that duplication is equivalent to creation, not me.

Surprisingly, this does not stop you from claiming that the duplicate is “the same” as the original.

Where do I claim that? When Stephen King licenses his publisher to make copies of his books, that is him profiting from his creation. If some copycat publisher made copies without permission, that would be infringing duplication. If the same copycat publisher actually got a license to print Michael Crichton books that would be alternate creation, which would be acceptable, honest competition. Where have I claimed they are “the same”?

On the other hand, you are the one claiming that the copycat publisher nonconsensually duplicating Stephen King’s original creation is the same as his publisher printing licensed copies. They are not the same.

A couple of paragraphs above you said that it does not bother you when another bed and breakfast crowds out profitable use of yours. Besides, you fail to explain why you reject my definition, other than that you need your in order for your theory to be valid.

With a competing bed and breakfast, the owner actually homesteaded their own property. With competing IP, the owner actually homesteaded their own property as well. With my llama herd, I am infringing or trespassing the homesteaded owner’s property. With unlicensed duplication, I am infringing the homesteaded owner’s property.

Rival goods are evident. If you consume them, they are gone. Forever. No more. No matter how you twist the meaning or change the laws.

Broadcasting band is perpetual and it is considered rivalrous. Real property is basically perpetual and it is considered rivalrous.

This distinction is only valid if you re-define trade as a unilateral declaration instead of a bilateral agreement. In other words, if one owns a market share.

Not sure about your phrasing here. The distinction already exists for broadcasting band and real property yet we don’t consider that “owning market share”. You are free to homestead or purchase other real estate or broadcast band and compete.

Now you are using the value definition of property, which was discredited several times during the course of the IP debates on this blog, and before that by actual economists. Therefore, this sentence is irrelevant.

Incorrect. It relies on homesteading, not valuation. Plenty of valueless IP has been homesteaded.

Value is created by markets. IP or no IP. Irrelevant.

Incorrect, quite relevant. You yourself stated that real estate relies on the state recognized ability to exclude so that it can trade effectively. So value is created by markets, but the state recognized ability to exclude enhances the value of the property on some markets.

Yes, there would. However, they real estate would become unavailable to those that owned it before.

No, they would just lose the ability to exclude. You would still own the beach house, you would just have to co-exist with my llamas and any other members of the public that wanted to occupy the property. With the right business model you might be able to turn a profit.

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Magnus January 24, 2010 at 8:06 am

Not to speak for Kerem here, but you are mixing metaphors. The Crusoe example refers to a case involving a primitive age, different countries, different cultures, etc.

Not to speak for Kerem, either, but (a) he brought it up, so I assume that he thinks Crusoe’s property rights are relevant, and (b) Kerem also spends a lot of time defending IP, and property generally, on the grounds that property rules arise even in a condition of social isolation, and he bjects strongly to the proposition that property rights are assigned by social convention.

I assume that means that Kerem Tibuk thinks that property rights exist independently of the “age,” culture, nationality, etc. of the people involved. You know, since he works so hard to purge himself of all contradiction and error, so he tells us.

But then again, since he has avoided answering a simple follow-up question about his Crusoe scenario for several days now, I really have no way of knowing what Kerem Tibuk thinks, other than that he’s afraid to answer the question.

Let’s put it this way: In the present day if someone offered you a free music download and it wasn’t the musician and wasn’t on one of the free websites you have a pretty good idea that you are violating copyright, even if you never met the musician before. You also know you could download the same song for a $1 or so on one of the paid services.

I would only know that I am “violating copyright” because the people who presume to call themselves “the state” and “legislators” tell me that copyright exists.

Like everything else legislators do, I ignore such verbiage as though it were idle wind.

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pro-IP-libertarian January 24, 2010 at 9:32 am

Magnus-

I would only know that I am “violating copyright” because the people who presume to call themselves “the state” and “legislators” tell me that copyright exists.

Like everything else legislators do, I ignore such verbiage as though it were idle wind.

If something is against the law – legitimately or illegitimately – that tactic works fine until they start enforcing the law.. And there are natural rights arguments supporting IP so it isn’t necessarily illegitimate.

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Jay Lakner January 24, 2010 at 10:16 am

arrgh … my post got eaten. It seems to be happening more often recently. I’ll try and recap what I wrote.

pro-IP-libertarian,

Whether or not a person knowingly commits a violation of current copyright laws is irrelevent to the question as to whether those laws should exist in the first place.

Magnus’s Crusoe example to Kerem Tibuk was a good one as it outlines the dangers of believing that the Universe contains fundamental “oughts”. Kerem, as usual, ignores questions which outline deficiencies in his position. That is why I brought it up.

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pro-IP-libertarian January 24, 2010 at 11:56 am

Russ-

You wrote to Kerem:

As should you. The Lockean labor theory of property applies to physical goods, not patterns or ideas. It is not at all obvious that the concept should extend to patterns or ideas.

I’m not a Locke scholar, but apparently Locke advocated a copyright term for writers of life plus 70 years when the Stationers’ company monopoly was being considered for renewal. (Monopoly as in only members of the company could be in the printing business, not the so-called “monopoly” of IP.) I have also seen others cite passages where Locke extended or showed a tendency to extend his labor theory of property to IP. See this abstract:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=936353

(Couldn’t find the 1694 memorandum, would have posted it if I could.)

That certainly shows a pretty strong tendency to support the notion of intellectual creations being the property of the creator. Stronger than present-day law, in fact.

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Russ January 24, 2010 at 5:28 pm

pro-IP-libertarian wrote:

“Exclusion isn’t necessary to use real estate either. You could squeeze a large number of people into the average 3br 2 ba house.”

So what? This argument is silly. You don’t even really believe that houses should be publicly owned property.

So let’s go back to my old post where I admitted that “use” of property wasn’t the issue with respect to exclusivity, but “possession” was, where “possession” can be understood as the ability to control the use of the property. Now, with that criteria, exclusivity *IS* necessary to *possess* real estate, since real estate is scarce. Exclusivity is also obviously necessary to possess radio channels, since they are also scarce.

It’s not so obvious that exclusivity is necessary to possess patterns or ideas, because they aren’t scarce. When you say that you “possess” IP, does that mean that you possess *an* instantiation of the pattern, or *every possible* instantiation of the pattern? If it’s the first, then you can still control the use of your instantiation without IP rights being necessary. Only in the second case do you need IP rights.

This raises the question, why *should* you have the right to control every possible instantiation of a pattern or idea? What is your justification for claiming this right? Because of causality; i.e. you created that pattern? So what? Because you want to make lots of money from selling the pattern as if it were scarce property? Again, so what? I still haven’t seen a good justification for why you should have this right.

As for Locke being for copyrights, I wasn’t aware of that. I haven’t actually read Locke for quite some time. At any rate, that doesn’t effect my argument, I don’t think, except that I was misusing the label “Lockean rights”.

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pro-IP-libertarian January 25, 2010 at 11:14 pm

Russ-

So what? This argument is silly. You don’t even really believe that houses should be publicly owned property.

So what yourself. You said that exclusion wasn’t necessary to trade IP, I just pointed out that exclusion wasn’t necessary to trade real estate either. But it would be really, really difficult to do it and might be pointless in many cases. This is similar to how difficult it would be to profit from some kinds of IP without exclusion.

And no, I do believe in privately owned real estate, I was just playing devil’s advocate for the sake of argument.

So let’s go back to my old post where I admitted that “use” of property wasn’t the issue with respect to exclusivity, but “possession” was, where “possession” can be understood as the ability to control the use of the property. Now, with that criteria, exclusivity *IS* necessary to *possess* real estate, since real estate is scarce. Exclusivity is also obviously necessary to possess radio channels, since they are also scarce.

No, my examples pointed out it would be possible to use and even profit from real estate without exclusion, it just would be strained and difficult. Same for radio broadcasting band. This just illustrates how disingenuous the arguments are when applied to IP.

It’s not so obvious that exclusivity is necessary to possess patterns or ideas, because they aren’t scarce. When you say that you “possess” IP, does that mean that you possess *an* instantiation of the pattern, or *every possible* instantiation of the pattern? If it’s the first, then you can still control the use of your instantiation without IP rights being necessary. Only in the second case do you need IP rights.

They are scarce, you’ve admitted that elsewhere. There are free music services all over the place, yet people still want to copy protected music. Why? Because it is good. And because it is scarce. Duplication/copying is not equal to creation. And good creators – and their creations – are scarce.

About your other point: Exclusion – the creator being the only one to sell/license copies of their creation – is necessary for creators to reasonably profit from their creation. Just like real estate owners need exclusion to reasonably profit from owning real estate. That’s why real estate came into this.

This raises the question, why *should* you have the right to control every possible instantiation of a pattern or idea? What is your justification for claiming this right? Because of causality; i.e. you created that pattern? So what? Because you want to make lots of money from selling the pattern as if it were scarce property? Again, so what? I still haven’t seen a good justification for why you should have this right.

Natural rights – homesteading. Just like real estate homesteading. Why do you want to own real estate? Just because you want to make lots of money?

As for Locke being for copyrights, I wasn’t aware of that. I haven’t actually read Locke for quite some time. At any rate, that doesn’t effect my argument, I don’t think, except that I was misusing the label “Lockean rights”.

It does if you believe in natural rights. Even variations with a utilitarian basis.

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Mashuri January 26, 2010 at 11:52 am

pro-IP-libertarian”

Broadcasting band is perpetual and it is considered rivalrous. Real property is basically perpetual and it is considered rivalrous.

I want to address this because I think you fail to make the distinction between why physical property and EM use (key distinction) are rivalrous, hence scarce, hence requiring exclusion and why IP is not. The former two may be “perpetual” but, at any given moment in time, they may only be used in an exclusive way. Two people cannot occupy the same space at the same time and two identical EM bands may not be used in the same space at the same time without interfering with each other. IP, on the other hand, can be used at the same time by unlimited amounts of people with no reduction in its supply or quality. In fact, its supply increases which, from a macro-utilitarian view, is typically good for an economy.

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pro-IP-libertarian January 26, 2010 at 4:36 pm

Mashuri-

I want to address this because I think you fail to make the distinction between why physical property and EM use (key distinction) are rivalrous, hence scarce, hence requiring exclusion and why IP is not. The former two may be “perpetual” but, at any given moment in time, they may only be used in an exclusive way. Two people cannot occupy the same space at the same time and two identical EM bands may not be used in the same space at the same time without interfering with each other. IP, on the other hand, can be used at the same time by unlimited amounts of people with no reduction in its supply or quality. In fact, its supply increases which, from a macro-utilitarian view, is typically good for an economy.

Real estate would only be truly physically rivalrous in really small areas. Why not make those with estates and big yards allow the public to park their campers and tents on them? From a utilitarian view, that would drive lower income housing costs way down, which would typically be good for the economy.

And to stress again you are still equating duplication with creation – they are not equivalent. Good quality creators and creations are scarce. Allowing public claims on their creation misprices and disincentivizes their creation just like allowing public claims on private land would misprice and disincentivize its trade, investment, and development.

Now to head off claims that the examples aren’t equivalent, note that most anti-IP advocates claim that IP creators still have the use of their IP themselves, and can be first to market. In the “public claims on land” example land owners would still have use of their houses and living quarters for “personal use”, they would just have to cede their yards and estates to the public. Pretty equivalent. Ridiculous in both cases, but equivalent.

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pro-IP-libertarian January 26, 2010 at 4:42 pm

Need to add: Note that it was Silas Barta that first pointed out that public claims on IP from the “duplication is equivalent to production” framing would lead to the mispricing of IP creation, similar to Mises’ exposure of mispricing as the fatal flaw of socialism.

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Jay Lakner January 26, 2010 at 5:11 pm

Pro-IP-libertarian wrote:
“Now to head off claims that the examples aren’t equivalent, note that most anti-IP advocates claim that IP creators still have the use of their IP themselves, and can be first to market. In the “public claims on land” example land owners would still have use of their houses and living quarters for “personal use”, they would just have to cede their yards and estates to the public. Pretty equivalent.”

Scarce = rivalrous = two things can’t be used simultaneously. Have you misunderstood this point?

Other people using my land automatically forbid me from spontaneously going out and using it myself. Even for extremely large areas of land, what if my “use” of my land is the satisfaction that nothing is happening to my land? What if I bought it for the pleasurable feeling of knowing that a human-free ecology is developing there?

Your example is completely and totally incompatible with IP and this seems to have something to do with your misunderstanding of the concept of “rivalrous versus non-rivalrous”.

Pro-IP-libertarian wrote:
“Need to add: Note that it was Silas Barta that first pointed out that public claims on IP from the “duplication is equivalent to production” framing would lead to the mispricing of IP creation, similar to Mises’ exposure of mispricing as the fatal flaw of socialism.”

This has been blown out of the water over and over again. Intangible entities can still be exchanged despite not having an owner because of their non-rivalrous nature. Hence economic calculation is not skewed through lack of ownership.
In fact, it has been shown that assigning ownership to intangible entities does the exact opposite – it creates an economic calculation problem.

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pro-IP-libertarian January 26, 2010 at 6:23 pm

Jay Lakner-

Scarce = rivalrous = two things can’t be used simultaneously. Have you misunderstood this point?

I understand it just fine. Although you should talk to Peter Surda, he distinguishes scarcity and rivalrousness.

If you’re going by that definition though, understand that IP is scarce. This is shown by you bothering to copy protected material. If IP wasn’t scarce you would just pluck other IP from the “tree of infinite” IP that wasn’t protected. Good IP – good creators and their creations – are scarce.

Other people using my land automatically forbid me from spontaneously going out and using it myself. Even for extremely large areas of land, what if my “use” of my land is the satisfaction that nothing is happening to my land? What if I bought it for the pleasurable feeling of knowing that a human-free ecology is developing there?

Same arguments apply to IP. Maybe IP owners like the feeling of knowing that no one can duplicate their work but them. After all, duplication is not production. A duplicator doesn’t homestead or create their own work.

Your example is completely and totally incompatible with IP and this seems to have something to do with your misunderstanding of the concept of “rivalrous versus non-rivalrous”.

Your perspective comes from the absurdity of equating duplication with creation. Creators and their creators are scarce. Otherwise free music services would have ended any file-sharing controversy. If IP is infinite, why not just copy unprotected works?

This has been blown out of the water over and over again. Intangible entities can still be exchanged despite not having an owner because of their non-rivalrous nature. Hence economic calculation is not skewed through lack of ownership.
In fact, it has been shown that assigning ownership to intangible entities does the exact opposite – it creates an economic calculation problem.

You may think so, but I haven’t seen this demonstrated. You are still operating under the assumption that duplication is equivalent to creation, when they are demonstrably inequivalent. Since they are inequivalent a model that equated them would be causing calculation problems. Trying to assume this inequivalency away doesn’t change it’s existence.

Now I realize there are different types of IP and some types are effected by this more than others, it still doesn’t completely change the argument.

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Jay Lakner January 26, 2010 at 6:56 pm

pro-IP-libertarian,

The arguments you are putting forth seem very strange to me, as is the way you are explaining them. This usually means that the problem here is very fundamental. I’m guessing that this entire difference of opinion comes down to a fundamental disagreement on the nature of the Universe.

Unfortunately it is often very difficult to identify exactly where this disagreement lies.

Where to start? I know …
What do you think of the following statement?:

“Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before. (This is true of any human product, scientific or esthetic: man’s imagination is nothing more than the ability to rearrange the things he has observed in reality.)”

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Magnus January 26, 2010 at 7:24 pm

The idea that copying is not production is plainly silly.

If you build a useful object, and I look over and make a copy, we made two useful objects. To see how wrong you are, imagine two publishers who decide to print up copies of the same book that is “out of copyright.” Think of something 200-300 years old. Don Quixote. Or older, like Aesop’s fairy tales. Printing these books is obviously a form of production. They are copies — not wrongful copies in the bizarro IP philosophy, but still copies, and yet making them is still a form of production.

You resent copiers, and think they ought to be punished. I get it. But still, pretending it’s not production is just dumb.

To use the form of one of your (rather tired) arguments against you, copying is OBVIOUSLY a form of production, because otherwise, the supposed copyright holder wouldn’t have any reason to object. The IP holder asserts this B.S. right to pattern-protectionism precisely BECAUSE the copyist is producing something that customers want. And that interferes with the SALES that the IP holder thinks he ought to be given without pesky competition.

Which brings me back to the point that none of you IP people want to address — the only “harm” that IP proponents can show arising from the act of copy-based production is a loss of market share. Copying entails no interference between uses of rivalrous goods. No physical displacement. No tangible rivalry at all.

Show me one other area of free market philosophy where maintaining a producer’s preferred market share is considered to be a cognizable, protected property interest.

No such thing.

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Peter Surda January 27, 2010 at 10:27 am

Dear pro-IP-libertarian,

> I understand it just fine. Although you should talk to
> Peter Surda, he distinguishes scarcity and
> rivalrousness.
Not necessarily. I just remarked that the word “scarce” tends to distract IP proponents away from the actual issue.

I must also repeat what I said before. My opinion that non-rival-goods can’t be owned in an exclusive, non-unique way, is a conclusion, rather than a premise. It is what remains after eliminating faulty assumptions, mainly the causality theory of ownership and the objective identity of immaterial goods. Non-utilitarian IP proponents usually use at least one of those to define property. I think it’s possible, although unlikely, that some non-rival goods are not eliminated by this argument, but what is nowadays understood with IP is probably unaffected by this.

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pro-IP-libertarian January 27, 2010 at 12:33 pm

Jay Lakner-

“Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before. (This is true of any human product, scientific or esthetic: man’s imagination is nothing more than the ability to rearrange the things he has observed in reality.)”

I assume this is Mises or someone and you are arguing from authority.

Doesn’t matter. Duplication can be distinguished from creation, otherwise everyone would create and no one would have to duplicate. Or no one would create and we would still be at subsistence level.

Creation exists by using one’s imagination, intellect, or some combination thereof and mixing it with their labor (which may include just thinking, thinking can be labor) to come up with a new idea, concept, design, or combination thereof. This is why it can be thought of as intellectual homesteading. And why it creates a natural rights based claim on individual intellectual property.

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pro-IP-libertarian January 27, 2010 at 12:56 pm

Magnus-

If you build a useful object, and I look over and make a copy, we made two useful objects. To see how wrong you are, imagine two publishers who decide to print up copies of the same book that is “out of copyright.” Think of something 200-300 years old. Don Quixote. Or older, like Aesop’s fairy tales. Printing these books is obviously a form of production. They are copies — not wrongful copies in the bizarro IP philosophy, but still copies, and yet making them is still a form of production.

The notion that they are equivalent production is laughable. Stephen King’s newest book was produced with hours and hours of writing and rewriting, research and revision. Not pressing “print” or “download” on a computer. Also, King has a rare natural talent to produce compelling, entertaining novels and stories. So not only did you not put in the labor, you probably could not perform the equivalent labor even if you tried. This is because his talent is truly scarce. The “talent” necessary to press a button is near universal. So no, creation is not equivalent to production by any stretch of the imagination.

And equating the two would result in a gross mispricing in the market for IP.

You resent copiers, and think they ought to be punished. I get it. But still, pretending it’s not production is just dumb.

No, I just realize they are violating natural rights, which I don’t condone as a libertarian.

To use the form of one of your (rather tired) arguments against you, copying is OBVIOUSLY a form of production, because otherwise, the supposed copyright holder wouldn’t have any reason to object. The IP holder asserts this B.S. right to pattern-protectionism precisely BECAUSE the copyist is producing something that customers want. And that interferes with the SALES that the IP holder thinks he ought to be given without pesky competition.

Say what you will about my argument, at least it isn’t circular. Your argument relies on assuming creation and duplication are the same, they are not. And no, we went over your other point in this thread already. IP exclusion is just like real estate or radio broadcasting exclusion, there is plenty of room for competition left – just do your own creation/homesteading. Create your own horror novel. Oh, that’s right, the skill-set is truly scarce so that will be difficult…

Which brings me back to the point that none of you IP people want to address — the only “harm” that IP proponents can show arising from the act of copy-based production is a loss of market share. Copying entails no interference between uses of rivalrous goods. No physical displacement. No tangible rivalry at all.

Wrong. It throws the pricing mechanism off just like socialism does. Or like what would occur if exclusion was done away with in the real estate or radio wave markets. And note the arguments for exclusion in real estate/etc. are owner-focused, yet no one claims real estate owners are “claiming market share” when they want exclusion.

Show me one other area of free market philosophy where maintaining a producer’s preferred market share is considered to be a cognizable, protected property interest.

Just did. It’s called real estate. Again, arguments for exclusion are owner-focused yet no one accuses them of claiming ownership of market share. You are free to homestead or buy your own real estate and compete. Just like you are free to create or buy your own IP and compete.

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pro-IP-libertarian January 27, 2010 at 1:06 pm

Peter Surda-

I must also repeat what I said before. My opinion that non-rival-goods can’t be owned in an exclusive, non-unique way, is a conclusion, rather than a premise. It is what remains after eliminating faulty assumptions, mainly the causality theory of ownership and the objective identity of immaterial goods.

Well then there are major problems here, because homesteading is based on causality. You cause ownership by mixing your labor with an object. Just like you cause ownership with IP by intellectual homesteading.

Non-utilitarian IP proponents usually use at least one of those to define property. I think it’s possible, although unlikely, that some non-rival goods are not eliminated by this argument, but what is nowadays understood with IP is probably unaffected by this.

And yet you’re left with the circular – and demonstrably absurd – concept that duplication equals production.

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Jay Lakner January 27, 2010 at 1:12 pm

pro-IP-libertarian,

I was not arguing from authority. I just felt that Ayn Rand would explain it better than I could.

And your response was not exactly clear.

I want to know whether you agree or not that creation is simply the discovery of a new arrangement that tangible materials can take the form of?

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Michael A. Clem January 27, 2010 at 2:02 pm

In that case, money is not scarce, and the banks should run 0% reserves. In fact they can spend all their depositors’ money, since obviously they are not using it at this time.
This was already addressed, but with different arguments. I say this argument fails because the value of the monetary unit is not equivalent to IP–the design on the currency is. Millions of people have the same design on their dollar bills, with no harm to others, but the quantity of currency in circulation obviously affects the value of money, to the benefit of first-takers and to the harm of latecomers.
It’s also not fair to compare this to the value or sales obtained or lost by the creators, because unlike money, there is not a direct, proportional relationship between illegal copying and lost sales. Each illegal copy is not equivalent to one lost sale. And while one can download a song and then buy it at a later date, it’s not possible to copy a dollar bill and then “buy” one later.

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Peter Surda January 27, 2010 at 2:09 pm

Dear pro-IP-libertarian

(regarding harm from IP)
> Wrong. It throws the pricing mechanism off just
> like socialism does.
Just because the price of a good can change by the influence of external factors is insufficient to conclude that “the pricing mechanism is thrown off”. It is actually exactly the opposite: the pricing mechanism allows to reflect external factors in the price.

> Well then there are major problems here,
> because homesteading is based on causality.
It might be or might not be. That’s not the problem. The problem is that if you consider causality a sufficient condition for homesteading, it leads to, in my humble opinion, absurd conclusions. All causally related activities become potential rights violations. All positive externalities will become exposed to payment enforcement. I’ll use two examples by Walter Block (although he didn’t necessarily use it in this context) and two of my own:

(Block)
Using a deodorant will allow you to enforce payment from people who share the same vehicle when using mass transportation. A woman walking on the street with a miniskirt would be allowed to enforce payment from men looking at her.

(me)
Children would be property of their parents. Soviet Union would co-own Atlas Shrugged.

Unless you agree that these examples correctly reflect your idea of ownership, you need to admit that causality is not a sufficient condition for ownership, and the whole argument falls apart.

> And yet you’re left with the circular – and
> demonstrably absurd – concept that duplication
> equals production.
I fail to see how the “duplication does not equal production” leads to ownership of immaterial goods. Every act is unique. Why should that cause arbitrary sets of these acts to become “property” of one person?

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pro-IP-libertarian January 27, 2010 at 2:59 pm

Jay Lakner-

I want to know whether you agree or not that creation is simply the discovery of a new arrangement that tangible materials can take the form of?

I wouldn’t put it that way. I would look at it as akin to intellectual homesteading. Mixing one’s labor – including thinking – to create a new combination of concepts, thoughts, materials, etc. for the first time. (And enclosing this by going to a recognized place to establish ownership – like one goes to establish homesteaded real property ownership.) Duplication would be distinguished as reproducing an existing, homesteaded piece of intellectual property.

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pro-IP-libertarian January 27, 2010 at 3:23 pm

Michael A. Clem-

This was already addressed, but with different arguments. I say this argument fails because the value of the monetary unit is not equivalent to IP–the design on the currency is. Millions of people have the same design on their dollar bills, with no harm to others, but the quantity of currency in circulation obviously affects the value of money, to the benefit of first-takers and to the harm of latecomers.

Not quite in my opinion. At least in the US, they generally don’t care if you reproduce images on currency on other things as long as one doesn’t try to pass it off as currency. The US government just claims a right to produce what it considers legal tender and to exclude anything else as legal tender. They want to control production and supply for a particular use, they aren’t too concerned with the imagery as property.

It’s also not fair to compare this to the value or sales obtained or lost by the creators, because unlike money, there is not a direct, proportional relationship between illegal copying and lost sales. Each illegal copy is not equivalent to one lost sale. And while one can download a song and then buy it at a later date, it’s not possible to copy a dollar bill and then “buy” one later.

This reaches to the exclusion issue discussed earlier. Sure, you could still make money with real estate you couldn’t exclude the public from, but it would be difficult and strained. Likewise, you might not lose one sale for every song illegally copied, but there would certainly be some amount of legitimate sales crowded out. Plus there is still the issue of it being unilateral: the copier certainly wants the good or they wouldn’t bother copying, they just don’t want to bother agreeing on price and paying it. This has utilitarian as well as moral consequences.

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Jay Lakner January 27, 2010 at 3:36 pm

Pro-IP-libertarian wrote:
“I wouldn’t put it that way.”

But do you agree?

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pro-IP-libertarian January 27, 2010 at 4:07 pm

Peter Surda-

Just because the price of a good can change by the influence of external factors is insufficient to conclude that “the pricing mechanism is thrown off”. It is actually exactly the opposite: the pricing mechanism allows to reflect external factors in the price.

Yes, and under natural rights theory we use homesteading and exclusion to establish particular rights to property. This is reflected in price. Yet these pricing effects are considered acceptable.

Also, the whole pricing mechanism depends on ownership and bilateral agreement to transactions. Under the “duplication is equivalent to creation” model all IP is considered public domain and unilateral transactions are permitted. This is something libertarians don’t tolerate in an economic system for physical property, but it is somehow acceptable for some with IP.

(Block)
Using a deodorant will allow you to enforce payment from people who share the same vehicle when using mass transportation. A woman walking on the street with a miniskirt would be allowed to enforce payment from men looking at her.

Not quite. By selling homesteaded property for a particular use one would agree to particular externalities. IP owners would have to decide what products they are going to sell and in what format. To a large extent we already do this. The woman would have to decide whether she is just going to wear a miniskirt to look nice in a particular location or license a calendar where a mass market can see pictures of her in a miniskirt. Now if I hid a camera in her room without her consent and was charging people money to watch her that clearly would be me profiting from her image and would be subject to legal action. This would be supported under various natural rights arguments – self-ownership, homesteaded intellectual property, etc.

(me)
Children would be property of their parents. Soviet Union would co-own Atlas Shrugged.

Violates both self-ownership and homesteading, in both cases.

Unless you agree that these examples correctly reflect your idea of ownership, you need to admit that causality is not a sufficient condition for ownership, and the whole argument falls apart.

Not at all. First, some of the examples violate self-ownership principles. But the ones that don’t involve an owner decision to engage in a bilateral transaction taking externalities into account or safely ignoring them. McDonald’s knows its fries smell good too, but decide it is worth it to sell the fries and let some people get the smell for free. The miniskirt woman knows that some around her in places she chooses to go would receive a positive externality, but decides it is worthwhile. That still wouldn’t allow putting a camera in her room and charging for it, or making illegal copies of a licensed calendar, which are self-owned and/or homesteaded goods.

I fail to see how the “duplication does not equal production” leads to ownership of immaterial goods. Every act is unique. Why should that cause arbitrary sets of these acts to become “property” of one person?

The same dynamic that allows the creation of ownership in unowned land – labor and homesteading. The duplicated property wouldn’t exist without the created property. And the action of creation is rarer, and necessary for and superior to the action of duplication.

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pro-IP-libertarian January 27, 2010 at 4:16 pm

Jay Lakner-

But do you agree?

Basically I agree with current IP law. Although I think there may be some room for changes, especially with patents.

I don’t have an exhaustive knowledge about how Rand felt about IP. So I don’t know the context of that quote and her overall beliefs so I can’t say outright whether I agree with all her views on IP. But the quote sounds OK.

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Jay Lakner January 27, 2010 at 4:39 pm

pro-IP-libertarian,

Ok. That’s a start at least.

Now what if I were to say that all intangible entities are nothing more than possible arrangements that tangible materials can be formed into. In other words, every idea, story, concept, pattern etc is simply a possible arrangement that tangible materials can take.

For example:
Every story is nothing more than an arrangement of ink symbols on paper.
Every song is nothing more than a pattern of air disturbances (sound waves).
Every TV show is nothing more than a pattern of photons of light.
Every thought is nothing more than a pattern of neurons firing in a human brain.

Would you agree with me on this?

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Peter Surda January 28, 2010 at 4:09 am

Dear pro-IP-libertarian,

> Yet these pricing effects are considered acceptable.
Exactly. But you neglect to explain how to differentiate the “acceptable” from the “unacceptable”.

> Also, the whole pricing mechanism depends on
> ownership and bilateral agreement to transactions.
Exactly. But IP proponents insist that a third party’s (the IP “owners”) agreement is a requirement.

> This is something libertarians don’t tolerate in an
> economic system for physical property, but it is
> somehow acceptable for some with IP.
The only reason for this is that IP proponents fail to demonstrate how is the third party “owner” of the “property” in question with all the other necessary conditions (non-exclusivity and non-uniqueness). Should they manage to do that, I would have no problem with agreeing with enforcing rights thereupon.

> By selling homesteaded property for a particular
> use one would agree to particular externalities.
I don’t understand. Who would agree to what? The way externalities manifest are not always foreseeable. You can’t agree to what you can’t foresee.

> IP owners would have to decide what products
> they are going to sell and in what format.
They can do that without IP just as well. IP just allows them to regulate certain externalities in way they can’t without. But they still can’t control externalities per se.

> The woman would have to decide whether she is
> just going to wear a miniskirt to look nice in a
> particular location or license a calendar where a
> mass market can see pictures of her in a miniskirt.
Exactly. That’s the whole point. No special laws or “property protection” is necessary. Contractual agreements are sufficient to handle externalities.

>> Children would be property of their parents.
>> Soviet Union would co-own Atlas Shrugged.
> Violates both self-ownership and homesteading, in
> both cases.
If that is your conclusion, then IP violates self-ownership (of one’s mind) and homesteading (of physical objects) too. You can’t have it both ways. Just like copyright “preempts” ownership of books, higher level immaterial ownership preempt lower level ownership in my examples.

> First, some of the examples violate self-ownership
> principles.
Like I said, this would also mean that IP violates the self-ownership principle. It’s just a matter of where you draw the line. That refutes the causality theory of ownership.

> But the ones that don’t involve an owner decision
> to engage in a bilateral transaction taking
> externalities into account or safely ignoring them.
Like I said, this proves me right rather than you. Externalities should be handled by contracts rather than special laws.

> The duplicated property wouldn’t exist without the
> created property.
Let’s ignore now the causal issue which I refuted above. What you are otherwise saying is that if I work harder, I have more claim on the beneficial outcomes than those that work less hard. That’s the labour theory of value.

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pro-IP-libertarian January 28, 2010 at 4:45 pm

Jay Lakner-

Every story is nothing more than an arrangement of ink symbols on paper.
Every song is nothing more than a pattern of air disturbances (sound waves).
Every TV show is nothing more than a pattern of photons of light.
Every thought is nothing more than a pattern of neurons firing in a human brain.

I think I see where you are going: You seem to be trying to lead me through a step by step process through which duplication is equated with creation. Sorry, not buying.

You forget about non-IP intangibles. Things like shares of stock, bonds, etc. These represent claims and contractual obligations – patterns, if you will. Are these just patterns? Can I print an endless amount of IBM share certificates? This is great – how many do you want for your house?

Besides that, you still have the scarcity problems. If IP – patterns – are infinite, why bother copying protected IP? Just copy some from the infinite supply from someone that doesn’t object. Oh, that’s right – IP isn’t really scarce.

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pro-IP-libertarian January 28, 2010 at 5:25 pm

Peter Surda-

Exactly. But you neglect to explain how to differentiate the “acceptable” from the “unacceptable”.

I think I’ve stated it several times. Same as real estate – homesteading. Then once IP is homesteaded you have to come to a bilateral agreement with the homesteader.

Exactly. But IP proponents insist that a third party’s (the IP “owners”) agreement is a requirement.

No, there’s only two parties: owners(which includes licensees) and customers. Someone that isn’t licensed isn’t a proper party to the transaction, like someone trying to sell a bridge that they don’t hold title to. Someone that doesn’t bother to come to an agreement with the owners isn’t a party either, like someone tresspassing, etc.

The only reason for this is that IP proponents fail to demonstrate how is the third party “owner” of the “property” in question with all the other necessary conditions (non-exclusivity and non-uniqueness). Should they manage to do that, I would have no problem with agreeing with enforcing rights thereupon.

The owner establishes ownership through homesteading of unique or novel creations. Then exclusion is enforced, just like with real property.

This isn’t a “right” to market share just as real property isn’t a “right” to market share. Competitors are free to homestead or purchase their own IP and compete.

I don’t understand. Who would agree to what? The way externalities manifest are not always foreseeable. You can’t agree to what you can’t foresee.

Well, the IP owner will have to consider these. Someone who is not the owner is just that – not the owner – and is subject to whatever sanctions are available to the actual owner. Beyond that I would need examples to comment on.

They can do that without IP just as well. IP just allows them to regulate certain externalities in way they can’t without. But they still can’t control externalities per se.

But like property rights IP allows the owner to address the most common and harmful ones. Especially to the overall market from a utilitarian perspective.

Exactly. That’s the whole point. No special laws or “property protection” is necessary. Contractual agreements are sufficient to handle externalities.

Not quite. In the mass market scenario some slippery sorts will claim she doesn’t have self-ownership, ownership of her image. Then they will claim they weren’t bound by the agreement she had with the licensed calendar printer and will copy and print their own calendar. IP rights prevent this.

If that is your conclusion, then IP violates self-ownership (of one’s mind) and homesteading (of physical objects) too. You can’t have it both ways. Just like copyright “preempts” ownership of books, higher level immaterial ownership preempt lower level ownership in my examples.

Not at all. The homesteader only has ownership of their homesteaded IP. J. K. Rowling only owns her latest book, you are free to homestead your own magic and fantasy books by writing your own. Homesteading only stops you from copying hers without her permission.

Like I said, this would also mean that IP violates the self-ownership principle. It’s just a matter of where you draw the line. That refutes the causality theory of ownership.

Only if you want access to other’s homesteaded property without coming to an agreement with them. It’s pretty elegant that way. You are free to write or buy your own boy wizard stories, why do you have to copy hers?

Also this would seem to help the crowd that claims they want to “encourage” writers and artists to be more productive – more new creations will be produced because the old ones can’t be created without permission.

Like I said, this proves me right rather than you. Externalities should be handled by contracts rather than special laws.

Not at all. It heads off the claims of third parties that want access to homesteaded property without coming to an agreement.

What you are otherwise saying is that if I work harder, I have more claim on the beneficial outcomes than those that work less hard. That’s the labour theory of value.

Not at all. It just means you have the right to sell what you homestead. It doesn’t force anyone to buy. The labor theory of value forces compensation for labor, usually from funds taken by force from the collective. Again, there is plenty of worthless IP homesteaded, and no one is guaranteed purchases.

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Jay Lakner January 28, 2010 at 5:35 pm

pro-IP-libertarian,

What I am trying to do is to work out how you view existence. My questions are merely ways of gaining insight into how you think so that I can determine the exact area where our disagreement lies. Once we work out exactly where our point of view differs, then we can have a proper discussion on the subject.

In my view, existence is composed of tangible entities in specific arrangements. Nothing more.

Stocks and bonds are also just possible arrangements that tangible materials can take the form of.

I believe that a common error that most people make is that they confuse the subjective meaning we humans assign to entities with the entities themselves. (You may not consider this to be an error at all)

For example:
Harry Potter the book is composed of a configuration of ink symbols on pieces of paper.
Harry Potter the movie is composed of a configuration human actors, stages, lighting effects, etc.
The two are very different. However, humans assign the same meaning to the book as they do to the movie. So an individual might come to the conclusion that they are the same story. But in reality they are not.

My question to you is:
Do you believe that Harry Potter the book is the same as (or similar to) Harry Potter the movie?
Or, do you agree with me that they are totally different and the perceived similarity is just a result of the subjective meaning humans place upon them?

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Peter Surda January 29, 2010 at 3:00 am

Dear pro-IP-libertarian,

your whole premises rest on an arbitrary definition of “homesteading”. Just like many other IP proponents, you draw an arbitrary line on the causality scale. Maybe it would help if you tried to explain where exactly you draw the line, then you’d realise it’s arbitrary.

> Then once IP is homesteaded you have to come to
> a bilateral agreement with the homesteader.
This is just a first step in the argument. In the second one, you need to establish how far the homesteading reaches and what takes priority if there is a conflict. That is the whole point of my objection. Causality does not answer that. It does not answer whether children’s ownership of themselves or parent’s ownership of themselves takes precedence (logically, the parent’s should, because it is predates the child). It does not answer whether only “good” influences should be considered, there is no reason why Soviet Union should not co-own Atlas Shrugged. Besides, back to my original objection, there is no way to distinguish between immaterial goods and externalities. But according to theory, you can own the former but not the latter.

> Someone that isn’t licensed isn’t a proper party
> to the transaction …
What is “proper party”? That’s just another arbitrary assumption. Governments also claim that some transactions are invalid without them being involved, but that does not make it true.

> The owner establishes ownership through
> homesteading of unique or novel creations.
Another meaningless construct that answers nothing.

> Then exclusion is enforced, just like with real
> property.
Exclusion in material goods is not “enforced”, it “is”. It is the natural feature of those things. It exists regardless of laws or people.

> This isn’t a “right” to market share …
It is.

> Competitors are free to homestead or purchase
> their own IP and compete.
This is only valid from your point of view. From my point of view, it’s the opposite: competitors homestead new grounds, and a monopoly prevents them from using it. From my perspective, those new grounds are externalities of the original.

(externalities)
> Well, the IP owner will have to consider these.
Exactly! IP owner, just like anyone else causing externalities, should consider the effects before making his move, instead of complaining how little he gained by using an infeasible business model.

> But like property rights IP allows the owner to
> address the most common and harmful ones.
There are already property rights in the physical, those are sufficient to address the most common and harmful effects of undesired activities.

> In the mass market scenario some slippery sorts
> will claim she doesn’t have self-ownership,
> ownership of her image.
This is merely another stage of the problem (i.e. you are trying to cure the symptom rather than the cause). The illicit photographer trespassed on physical property. When a woman with a miniskirt goes to a street, she needs to make herself informed about the rules regarding photographing that the street owner does (some might permit photos, some might not). There is no need for IP from this perspective.

> The homesteader only has ownership of their
> homesteaded IP.
But what does this mean? I fail to see how this can mean owning anything apart from that which is in one’s own head. The line where you draw the distinction between immaterial goods and externalities is arbitrary. That’s what you need to recognise. IP is the claim of ownership of other people’s minds. It does not bother you here, but it bothers you with children and Ayn Rand. You need to explain this dichotomy.

REPLY

Peter Surda January 29, 2010 at 3:03 am

Dear Jay,

> I believe that a common error that most people
> make is that they confuse the subjective meaning
> we humans assign to entities with the entities
> themselves.
Very well put Jay, this is what I’m trying to get the IP proponents to recognise and they seem to have a hard time with it.

REPLY

*****

{ 249 comments… read them below or add one }

 Peter Surda January 23, 2010 at 7:17 am

Dear Kerem,

> Lockean/Rothbardian theory that only justifies
> homesteading. It is not a positivist theory deciding
> what can and what can not property by arbitrary
> distinctions.
That what you are calling “Lockean/Rothbardian theory” is actually “Lockean/Rothbardian theory” + “Kerem Tibuk’s arbitrary axioms”. You need to understand this before we progress any further.

Reply

 Russ January 23, 2010 at 8:04 am

newson wrote:

“the justification of private property is not that it creates more wealth, that is a happy side-effect. it’s that it is the only way to avoid universal violence…”

Isn’t avoiding a war of all against all for material goods useful?

“…are you suggesting the imposition of violence to increase overall utility? or that a certain amount of violence is ok, but not too much?”

Well, you know the answer to that question, newson, because you know that I’m a minarchist. Do the math. Anyway, even in Ancapistan, you’d have to impose violence on some people to get them to leave other peoples’ property alone.

“besides the history of radio prior to the fcc shows regulation wasn’t necessary for a florid radio industry.”

When did I ever mention the FCC? I’m just talking about having rights in EM spectrum. That doesn’t necessitate a regulatory agency, only courts of law, and a registration mechanism of some sort.

“you surely don’t expect everyone in a given radius to shut up when you talk, using scarce audible frequencies, so give random a break.”

I expect that they don’t speak so loud that I’m not able to carry on a conversation.

Reply

 Russ January 23, 2010 at 8:43 am

ABR wrote:

“Russ wrote: “Even if the airport came first, and then people buy surrounding land, what then? Would easement right conditions be attached to their property? How so?”

By action. The planes are flying over the newcomers’ land. Every day.”

So? The newcomer’s land was previously unowned, so there could have been no easement contracts with the non-existent former owners. So when the newcomers came, there were no easement contracts to bind them. So I don’t see how you could use easements to get this right to make noise, in this case.

If you’re saying that by making noise (or radio waves) before the newcomers came, the airport homesteaded the right to make noise (or radio waves) in that area, I’m not sure that follows from pure property rights. The so-called “homesteader” can emit noise, radio waves, pollution, whatever, as long as the surrounding area is unowned, sure. Who could object except maybe an eco-nazi? But once the land is homesteaded (and in a pure physical property rights system, only physical property such as land *can* be homesteaded), the first guy is now emitting noise, or whatever, onto somebody else’s property. He’s violating their rights.

If you still say that he has the right to “homestead” the right to produce noise in an area, that’s fine, you can do that, but I don’t think it can be derived from pure property rights. Likewise with homesteading the right to emit radio waves. If somebody homesteads land, they now own *physical* property. But if somebody homesteads “the right to emit radio waves at X Mhz over a given area”, they haven’t homesteaded *physical* property. They’ve homesteaded a more abstract right which we have been calling EM spectrum “property”. Once you say that somebody can do that, I think you’ve just admitted EM spectrum rights, as I conceive them.

Reply

 Russ January 23, 2010 at 9:21 am

Peter Surda wrote:

“I already explained why this definition is problematic. Any action whatsoever that is undesired can be declared trespass.”

I think this is similar to the point I made against Silas when we were talking about his IP theory. I said that just because he desires to use his property to get such-and-such a result, and that I “interfered” with his desire, that does not necessarily mean that I violated his rights.

Reply

 ABR January 23, 2010 at 12:29 pm

Russ wrote: “If you still say that he has the right to “homestead” the right to produce noise in an area, that’s fine, you can do that, but I don’t think it can be derived from pure property rights.”

I agree. That is, this form of homesteading is a weaker proposition than the primary form: mixing one’s labour with the land. However, I do think this form of homesteading is essential to life. Water rights, in particular, would not exist without this form of homesteading.

How can a person mix his labour with a river, other than by damming or diverting? If a person wishes to siphon water for drinking or irrigation, he establishes a right to proportional consumption. If we don’t grant him that right, then we’re back to the tragedy of the commons.

Reply

 Jay Lakner January 23, 2010 at 3:50 pm

Kerem Tibuk,

Please answer Magnus’ question:

“Can Crusoe legitimately travel to the second island and use force to stop the islanders, whom he never met, from using the ideas that Friday transmitted to them?”

Reply

 pro-IP-libertarian January 23, 2010 at 4:08 pm

Peter Surda-

Duplication is a metaphor, it is not an empirical phenomenon.

No, duplication or copying is an identifiable and measurable human action.

The only reason that you claim that it is “the same product” is that it appears “too similar” to you, or has the same utility. This is a result of subjective evaluation rather than objective reality.

No, there was definitely a first Stephen King novel. Or a first motorcycle. These wouldn’t have existed without the intellectual and to some degree physical homesteading of the creator.

Duplicating or copying these can be distinguished from the creation of the first one. They wouldn’t be possible, by definition, without the creation of the first one.

So does the selling of substitutes, finding ways of increasing productivity or criticising the features of the product. It implies that the creator owns his market share.

Those don’t involve using the creator’s homesteaded or owned property. Me starting another beach house bed and breakfast further down the beach from yours isn’t stealing from you. Grazing my llama herd directly on the lawn of yours is akin to stealing.

To put it more succinctly: Duplication is not equivalent to creation. Competing, alternate creation is equivalent to creation.

This is why I dislike the word “scarce”. It leads to confusion. IP is non-rival, consumption does not decrease supply.

It is rivalrous in the way radio spectrum or real property is rivalrous – duplication without homesteading or license crowds out profitable use the way overlapping broadcasting or trespassing does.

Note again this is not preventing competition, alternate homesteading – true alternate creation – is available.

Reply

 pro-IP-libertarian January 23, 2010 at 4:27 pm

Peter Surda-

The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.

You’re arguing by definition. In the case of real property, you are saying exclusion is a necessary condition for the ability to use and trade the good. The same is true for IP. Theoretically, you could use and trade real property without exclusion but the value would be greatly reduced. The value is created and maintained by the legal system. Likewise with IP.

Indeed, because these problems are the result of natural features of rival goods. Yet, if we took away exclusion from non-rival goods, apart from some revenue redistribution and some business models becoming unprofitable there are no other negative effects and a plethora of positive ones. The same results would occur when any artificial monopoly or redistribution scheme were cancelled.

Subjectively, there would be many positive effects for many people with the abolishment of real estate exclusions. The price for subsistence-level living would go way down – all you would need is a tent or car with a camper for shelter. If the “monopoly” or “redistribution scheme” for intellectual property homesteading is “artificial”, the one for real property can be characterized as such as well.

Reply

 pro-IP-libertarian January 23, 2010 at 4:54 pm

Scott D-

This is where the socialists try to weasel their way through with much the same arguments that the pro-IP libertarian uses to justify their position. The money taken for government welfare programs is not theft because the benefits to society accrue back to the individual who is taxed, the socialist says. Functionally, this is little different from the arguments that claim the utilitarian benefits of an IP system.

Not at all. It’s akin to the real property rights system. The state provides a deed that proves ownership so that individual rights can be protected, trade can occur, etc. The IP law system does the same.

I could refer to the anti-IP crowd as collectivists for wanting to provide a public claim on homesteaded intellectual property. It’s “the people’s” music!

Reply

 pro-IP-libertarian January 23, 2010 at 5:05 pm

Jay Lakner/Magnus-

Kerem Tibuk,

Please answer Magnus’ question:

“Can Crusoe legitimately travel to the second island and use force to stop the islanders, whom he never met, from using the ideas that Friday transmitted to them?”

Not to speak for Kerem here, but you are mixing metaphors. The Crusoe example refers to a case involving a primitive age, different countries, different cultures, etc.

Let’s put it this way: In the present day if someone offered you a free music download and it wasn’t the musician and wasn’t on one of the free websites you have a pretty good idea that you are violating copyright, even if you never met the musician before. You also know you could download the same song for a $1 or so on one of the paid services.

Reply

 Stephan Kinsella January 23, 2010 at 5:31 pm

Kerem Tibuk:

“First of all I don’t know how it became that Kinsella is in the position of defending Lockean/Rothbardian property rights”

Because I’m the Uber-Lockean, of course!

“Lockean/Rothbardian theory … nowhere it is implied on scarce resources can be homesteaded. “First comer” principle can confuse people but that principle doesn’t say scarcity is prerequisite but instead it means “if there is scarcity, then the tie breaker is the first comer” principle.”

Right. And you guys undercut this: you say that if there is a scarce resource, say a piece of paper owned by A pursuant to Lockean homesteading, then B gets to control and use and own it, if B thinks of a way to use B’s own property. That means B is the tie breaker winner, even though B is not the first comer.

Kerem, very generous of you to self-PWN.

Reply

 Russ January 23, 2010 at 6:03 pm

pro-IP-libertarian wrote:

“Peter Surda wrote: “The reason for this has nothing to do with property rights. It is the result of rivalry: exclusion is a necessary condition for the ability to use and trade the good. This principle exists regardless of the legal system. However, with non-rival goods, this principle is absent, and is artificially mimicked by the legal system.”

You’re arguing by definition. In the case of real property, you are saying exclusion is a necessary condition for the ability to use and trade the good. The same is true for IP. Theoretically, you could use and trade real property without exclusion but the value would be greatly reduced. The value is created and maintained by the legal system. Likewise with IP.”

But exclusion is not a necessary condition for the ability to use and trade patterns. It’s certainly not necessary to use them; multiple people can easily use copies of patterns at the same time. People could also trade them, if they wished. Of course, the price would be very low, but that doesn’t mean that they couldn’t do it. It just means that can’t make the profit they would like out of it. You’re saying that this “reduces the value” just like with real property. But now you’re mixing meanings. Not having material property rights would “reduce the value” of real material in two senses; 1) the monetary value, and 2) the “use” value (the value you get out of something by using it). Not having IP rights would only reduce the value of the pattern in the monetary sense, but not in the use sense.

Reply

 Russ January 23, 2010 at 6:11 pm

Stephan Kinsella wrote:

“…I’m the Uber-Lockean…”

Yeah, well I’m still the evil utilitarian Übermensch! MWAHAHAHA!!!

“Kerem, very generous of you to self-PWN.”

Ya know, if you’re going to take pokes at Kerem this way, it’s not fair that you ask him to be civil, too.
Pick one.

Reply

 Peter Surda January 23, 2010 at 6:47 pm

Dear pro-IP-libertarian,

> No, duplication or copying is an identifiable and
> measurable human action.
You are mixing two things. Indeed, when you claim that copying occurs, your base for that claim is that you observe some human action. But you do not observe “the copying”.

> No, there was definitely a first Stephen King
> novel. Or a first motorcycle.
Yes, there were. So what?

> These wouldn’t have existed without the
> intellectual and to some degree physical
> homesteading of the creator.
Yes, there is a causal relationship. So what? This does not prove that Stephen King’s novels or motorcycles, respectively, share some mystical identity.

> Duplicating or copying these can be
> distinguished from the creation of the first one.
Yes, it can. But that does not prove that they are “the same”. You say yourself that they can be distinguished, and at the same time claim that they are “the same”. Does the dichotomy not bother you?

> They wouldn’t be possible, by definition, without
> the creation of the first one.
Again, so what?

(substitutes & critisizing)
> Those don’t involve using the creator’s
> homesteaded or owned property.
You are assuming your conclusion.

> Me starting another beach house bed and
> breakfast further down the beach from yours
> isn’t stealing from you.
Yet according to you, selling another book is. Again, does the dichotomy not bother you?

> Grazing my llama herd directly on the lawn of
> yours is akin to stealing.
At least we can agree on something.

> To put it more succinctly: Duplication is not
> equivalent to creation.
Surprisingly, this does not stop you from claiming that the duplicate is “the same” as the original.

> Competing, alternate creation is equivalent to
> creation.
This is a correct, however it only addresses the causality issue.

> It is rivalrous in the way radio spectrum or real
> property is rivalrous – duplication without
> homesteading or license crowds out profitable
> use the way overlapping broadcasting or
> trespassing does.
A couple of paragraphs above you said that it does not bother you when another bed and breakfast crowds out profitable use of yours. Besides, you fail to explain why you reject my definition, other than that you need your in order for your theory to be valid.

Rival goods are evident. If you consume them, they are gone. Forever. No more. No matter how you twist the meaning or change the laws.

> Note again this is not preventing competition,
> alternate homesteading – true alternate creation
> – is available.
This distinction is only valid if you re-define trade as a unilateral declaration instead of a bilateral agreement. In other words, if one owns a market share.

> You’re arguing by definition.
No, you are.

> In the case of real property, you are saying
> exclusion is a necessary condition for the ability
> to use and trade the good.
Actually, I’m not. I’m claiming that for rival goods, exclusion is a necessary condition for the ability to use and trade the good.

> The same is true for IP.
No, it’s not.

> Theoretically, you could use and trade real
> property without exclusion but the value would
> be greatly reduced.
Now you are using the value definition of property, which was discredited several times during the course of the IP debates on this blog, and before that by actual economists. Therefore, this sentence is irrelevant.

> The value is created and maintained by the legal
> system. Likewise with IP.
Value is created by markets. IP or no IP. Irrelevant.

> Subjectively, there would be many positive
> effects for many people with the abolishment of
> real estate exclusions.
Yes, there would. However, they real estate would become unavailable to those that owned it before.

Reply

 Philip January 23, 2010 at 10:03 pm

The documentary The Future of Food discusses some interesting problems with patents related to genetic engineering of plants.

The first fifteen minutes will discuss most of the patent problem which came to a head in the Monsanto Canada v. Schmeiser case.

Reply

 pro-IP-libertarian January 24, 2010 at 5:47 am

Stephan Kinsella-

Right. And you guys undercut this: you say that if there is a scarce resource, say a piece of paper owned by A pursuant to Lockean homesteading, then B gets to control and use and own it, if B thinks of a way to use B’s own property. That means B is the tie breaker winner, even though B is not the first comer.

Yet you think it is entirely reasonable for X to prevent Y from using their transmission equipment on certain frequencies. It’s Y’s transmission equipment! You’re violating Y’s property rights!

In a slightly more extreme example, you forbid me from herding my tired llamas across the yard of your beach house. But you have full use of the rest of the property, and the yard after I’ve moved them along. The humanity!

Reply

 pro-IP-libertarian January 24, 2010 at 6:52 am

Russ-

But exclusion is not a necessary condition for the ability to use and trade patterns. It’s certainly not necessary to use them; multiple people can easily use copies of patterns at the same time.

Exclusion isn’t necessary to use real estate either. You could squeeze a large number of people into the average 3br 2 ba house. Exclusion aids in effective use and trade in both instances.

Not having IP rights would only reduce the value of the pattern in the monetary sense, but not in the use sense.

There is plenty of evidence to suggest people derive other benefits from restricting access. People derive lots of psychic and aesthetic benefits from “exlusivity”, not in the economic sense but in the sense of rarity, novelty, salience, etc.. Exclusive fashions, exclusive country clubs, cool/trendy teenage clothes, etc. So arguably use is effected as well. (Not saying this is rational or sensible, just stating it exists.)

Reply

 pro-IP-libertarian January 24, 2010 at 7:37 am

Peter Surda-

You are mixing two things. Indeed, when you claim that copying occurs, your base for that claim is that you observe some human action. But you do not observe “the copying”.

Yes, there were. So what?

Yes, there is a causal relationship. So what? This does not prove that Stephen King’s novels or motorcycles, respectively, share some mystical identity.

You admit that creation can be distinguished from duplication. Creation: creating a new item or type of item. Duplication: making a copy of a created item.

I’m not saying that there is anything “mystical” about creation, just that it is involves the intellectual homesteading of property, duplication does not. You are the one equating creation with duplication and claiming they are equivalent.

Yes, it can. But that does not prove that they are “the same”. You say yourself that they can be distinguished, and at the same time claim that they are “the same”. Does the dichotomy not bother you?

You are the one claiming that duplication is equivalent to creation, not me.

Surprisingly, this does not stop you from claiming that the duplicate is “the same” as the original.

Where do I claim that? When Stephen King licenses his publisher to make copies of his books, that is him profiting from his creation. If some copycat publisher made copies without permission, that would be infringing duplication. If the same copycat publisher actually got a license to print Michael Crichton books that would be alternate creation, which would be acceptable, honest competition. Where have I claimed they are “the same”?

On the other hand, you are the one claiming that the copycat publisher nonconsensually duplicating Stephen King’s original creation is the same as his publisher printing licensed copies. They are not the same.

A couple of paragraphs above you said that it does not bother you when another bed and breakfast crowds out profitable use of yours. Besides, you fail to explain why you reject my definition, other than that you need your in order for your theory to be valid.

With a competing bed and breakfast, the owner actually homesteaded their own property. With competing IP, the owner actually homesteaded their own property as well. With my llama herd, I am infringing or trespassing the homesteaded owner’s property. With unlicensed duplication, I am infringing the homesteaded owner’s property.

Rival goods are evident. If you consume them, they are gone. Forever. No more. No matter how you twist the meaning or change the laws.

Broadcasting band is perpetual and it is considered rivalrous. Real property is basically perpetual and it is considered rivalrous.

This distinction is only valid if you re-define trade as a unilateral declaration instead of a bilateral agreement. In other words, if one owns a market share.

Not sure about your phrasing here. The distinction already exists for broadcasting band and real property yet we don’t consider that “owning market share”. You are free to homestead or purchase other real estate or broadcast band and compete.

Now you are using the value definition of property, which was discredited several times during the course of the IP debates on this blog, and before that by actual economists. Therefore, this sentence is irrelevant.

Incorrect. It relies on homesteading, not valuation. Plenty of valueless IP has been homesteaded.

Value is created by markets. IP or no IP. Irrelevant.

Incorrect, quite relevant. You yourself stated that real estate relies on the state recognized ability to exclude so that it can trade effectively. So value is created by markets, but the state recognized ability to exclude enhances the value of the property on some markets.

Yes, there would. However, they real estate would become unavailable to those that owned it before.

No, they would just lose the ability to exclude. You would still own the beach house, you would just have to co-exist with my llamas and any other members of the public that wanted to occupy the property. With the right business model you might be able to turn a profit.

Reply

 Magnus January 24, 2010 at 8:06 am

Not to speak for Kerem here, but you are mixing metaphors. The Crusoe example refers to a case involving a primitive age, different countries, different cultures, etc.

Not to speak for Kerem, either, but (a) he brought it up, so I assume that he thinks Crusoe’s property rights are relevant, and (b) Kerem also spends a lot of time defending IP, and property generally, on the grounds that property rules arise even in a condition of social isolation, and he bjects strongly to the proposition that property rights are assigned by social convention.

I assume that means that Kerem Tibuk thinks that property rights exist independently of the “age,” culture, nationality, etc. of the people involved. You know, since he works so hard to purge himself of all contradiction and error, so he tells us.

But then again, since he has avoided answering a simple follow-up question about his Crusoe scenario for several days now, I really have no way of knowing what Kerem Tibuk thinks, other than that he’s afraid to answer the question.

Let’s put it this way: In the present day if someone offered you a free music download and it wasn’t the musician and wasn’t on one of the free websites you have a pretty good idea that you are violating copyright, even if you never met the musician before. You also know you could download the same song for a $1 or so on one of the paid services.

I would only know that I am “violating copyright” because the people who presume to call themselves “the state” and “legislators” tell me that copyright exists.

Like everything else legislators do, I ignore such verbiage as though it were idle wind.

Reply

 pro-IP-libertarian January 24, 2010 at 9:32 am

Magnus-

I would only know that I am “violating copyright” because the people who presume to call themselves “the state” and “legislators” tell me that copyright exists.

Like everything else legislators do, I ignore such verbiage as though it were idle wind.

If something is against the law – legitimately or illegitimately – that tactic works fine until they start enforcing the law.. And there are natural rights arguments supporting IP so it isn’t necessarily illegitimate.

Reply

 Jay Lakner January 24, 2010 at 10:16 am

arrgh … my post got eaten. It seems to be happening more often recently. I’ll try and recap what I wrote.

pro-IP-libertarian,

Whether or not a person knowingly commits a violation of current copyright laws is irrelevent to the question as to whether those laws should exist in the first place.

Magnus’s Crusoe example to Kerem Tibuk was a good one as it outlines the dangers of believing that the Universe contains fundamental “oughts”. Kerem, as usual, ignores questions which outline deficiencies in his position. That is why I brought it up.

Reply

 pro-IP-libertarian January 24, 2010 at 11:56 am

Russ-

You wrote to Kerem:

As should you. The Lockean labor theory of property applies to physical goods, not patterns or ideas. It is not at all obvious that the concept should extend to patterns or ideas.

I’m not a Locke scholar, but apparently Locke advocated a copyright term for writers of life plus 70 years when the Stationers’ company monopoly was being considered for renewal. (Monopoly as in only members of the company could be in the printing business, not the so-called “monopoly” of IP.) I have also seen others cite passages where Locke extended or showed a tendency to extend his labor theory of property to IP. See this abstract:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=936353

(Couldn’t find the 1694 memorandum, would have posted it if I could.)

That certainly shows a pretty strong tendency to support the notion of intellectual creations being the property of the creator. Stronger than present-day law, in fact.

Reply

 Russ January 24, 2010 at 5:28 pm

pro-IP-libertarian wrote:

“Exclusion isn’t necessary to use real estate either. You could squeeze a large number of people into the average 3br 2 ba house.”

So what? This argument is silly. You don’t even really believe that houses should be publicly owned property.

So let’s go back to my old post where I admitted that “use” of property wasn’t the issue with respect to exclusivity, but “possession” was, where “possession” can be understood as the ability to control the use of the property. Now, with that criteria, exclusivity *IS* necessary to *possess* real estate, since real estate is scarce. Exclusivity is also obviously necessary to possess radio channels, since they are also scarce.

It’s not so obvious that exclusivity is necessary to possess patterns or ideas, because they aren’t scarce. When you say that you “possess” IP, does that mean that you possess *an* instantiation of the pattern, or *every possible* instantiation of the pattern? If it’s the first, then you can still control the use of your instantiation without IP rights being necessary. Only in the second case do you need IP rights.

This raises the question, why *should* you have the right to control every possible instantiation of a pattern or idea? What is your justification for claiming this right? Because of causality; i.e. you created that pattern? So what? Because you want to make lots of money from selling the pattern as if it were scarce property? Again, so what? I still haven’t seen a good justification for why you should have this right.

As for Locke being for copyrights, I wasn’t aware of that. I haven’t actually read Locke for quite some time. At any rate, that doesn’t effect my argument, I don’t think, except that I was misusing the label “Lockean rights”.

Reply

 pro-IP-libertarian January 25, 2010 at 11:14 pm

Russ-

So what? This argument is silly. You don’t even really believe that houses should be publicly owned property.

So what yourself. You said that exclusion wasn’t necessary to trade IP, I just pointed out that exclusion wasn’t necessary to trade real estate either. But it would be really, really difficult to do it and might be pointless in many cases. This is similar to how difficult it would be to profit from some kinds of IP without exclusion.

And no, I do believe in privately owned real estate, I was just playing devil’s advocate for the sake of argument.

So let’s go back to my old post where I admitted that “use” of property wasn’t the issue with respect to exclusivity, but “possession” was, where “possession” can be understood as the ability to control the use of the property. Now, with that criteria, exclusivity *IS* necessary to *possess* real estate, since real estate is scarce. Exclusivity is also obviously necessary to possess radio channels, since they are also scarce.

No, my examples pointed out it would be possible to use and even profit from real estate without exclusion, it just would be strained and difficult. Same for radio broadcasting band. This just illustrates how disingenuous the arguments are when applied to IP.

It’s not so obvious that exclusivity is necessary to possess patterns or ideas, because they aren’t scarce. When you say that you “possess” IP, does that mean that you possess *an* instantiation of the pattern, or *every possible* instantiation of the pattern? If it’s the first, then you can still control the use of your instantiation without IP rights being necessary. Only in the second case do you need IP rights.

They are scarce, you’ve admitted that elsewhere. There are free music services all over the place, yet people still want to copy protected music. Why? Because it is good. And because it is scarce. Duplication/copying is not equal to creation. And good creators – and their creations – are scarce.

About your other point: Exclusion – the creator being the only one to sell/license copies of their creation – is necessary for creators to reasonably profit from their creation. Just like real estate owners need exclusion to reasonably profit from owning real estate. That’s why real estate came into this.

This raises the question, why *should* you have the right to control every possible instantiation of a pattern or idea? What is your justification for claiming this right? Because of causality; i.e. you created that pattern? So what? Because you want to make lots of money from selling the pattern as if it were scarce property? Again, so what? I still haven’t seen a good justification for why you should have this right.

Natural rights – homesteading. Just like real estate homesteading. Why do you want to own real estate? Just because you want to make lots of money?

As for Locke being for copyrights, I wasn’t aware of that. I haven’t actually read Locke for quite some time. At any rate, that doesn’t effect my argument, I don’t think, except that I was misusing the label “Lockean rights”.

It does if you believe in natural rights. Even variations with a utilitarian basis.

Reply

 Mashuri January 26, 2010 at 11:52 am

pro-IP-libertarian”

Broadcasting band is perpetual and it is considered rivalrous. Real property is basically perpetual and it is considered rivalrous.

I want to address this because I think you fail to make the distinction between why physical property and EM use (key distinction) are rivalrous, hence scarce, hence requiring exclusion and why IP is not. The former two may be “perpetual” but, at any given moment in time, they may only be used in an exclusive way. Two people cannot occupy the same space at the same time and two identical EM bands may not be used in the same space at the same time without interfering with each other. IP, on the other hand, can be used at the same time by unlimited amounts of people with no reduction in its supply or quality. In fact, its supply increases which, from a macro-utilitarian view, is typically good for an economy.

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 pro-IP-libertarian January 26, 2010 at 4:36 pm

Mashuri-

I want to address this because I think you fail to make the distinction between why physical property and EM use (key distinction) are rivalrous, hence scarce, hence requiring exclusion and why IP is not. The former two may be “perpetual” but, at any given moment in time, they may only be used in an exclusive way. Two people cannot occupy the same space at the same time and two identical EM bands may not be used in the same space at the same time without interfering with each other. IP, on the other hand, can be used at the same time by unlimited amounts of people with no reduction in its supply or quality. In fact, its supply increases which, from a macro-utilitarian view, is typically good for an economy.

Real estate would only be truly physically rivalrous in really small areas. Why not make those with estates and big yards allow the public to park their campers and tents on them? From a utilitarian view, that would drive lower income housing costs way down, which would typically be good for the economy.

And to stress again you are still equating duplication with creation – they are not equivalent. Good quality creators and creations are scarce. Allowing public claims on their creation misprices and disincentivizes their creation just like allowing public claims on private land would misprice and disincentivize its trade, investment, and development.

Now to head off claims that the examples aren’t equivalent, note that most anti-IP advocates claim that IP creators still have the use of their IP themselves, and can be first to market. In the “public claims on land” example land owners would still have use of their houses and living quarters for “personal use”, they would just have to cede their yards and estates to the public. Pretty equivalent. Ridiculous in both cases, but equivalent.

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 pro-IP-libertarian January 26, 2010 at 4:42 pm

Need to add: Note that it was Silas Barta that first pointed out that public claims on IP from the “duplication is equivalent to production” framing would lead to the mispricing of IP creation, similar to Mises’ exposure of mispricing as the fatal flaw of socialism.

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 Jay Lakner January 26, 2010 at 5:11 pm

Pro-IP-libertarian wrote:
“Now to head off claims that the examples aren’t equivalent, note that most anti-IP advocates claim that IP creators still have the use of their IP themselves, and can be first to market. In the “public claims on land” example land owners would still have use of their houses and living quarters for “personal use”, they would just have to cede their yards and estates to the public. Pretty equivalent.”

Scarce = rivalrous = two things can’t be used simultaneously. Have you misunderstood this point?

Other people using my land automatically forbid me from spontaneously going out and using it myself. Even for extremely large areas of land, what if my “use” of my land is the satisfaction that nothing is happening to my land? What if I bought it for the pleasurable feeling of knowing that a human-free ecology is developing there?

Your example is completely and totally incompatible with IP and this seems to have something to do with your misunderstanding of the concept of “rivalrous versus non-rivalrous”.

Pro-IP-libertarian wrote:
“Need to add: Note that it was Silas Barta that first pointed out that public claims on IP from the “duplication is equivalent to production” framing would lead to the mispricing of IP creation, similar to Mises’ exposure of mispricing as the fatal flaw of socialism.”

This has been blown out of the water over and over again. Intangible entities can still be exchanged despite not having an owner because of their non-rivalrous nature. Hence economic calculation is not skewed through lack of ownership.
In fact, it has been shown that assigning ownership to intangible entities does the exact opposite – it creates an economic calculation problem.

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 pro-IP-libertarian January 26, 2010 at 6:23 pm

Jay Lakner-

Scarce = rivalrous = two things can’t be used simultaneously. Have you misunderstood this point?

I understand it just fine. Although you should talk to Peter Surda, he distinguishes scarcity and rivalrousness.

If you’re going by that definition though, understand that IP is scarce. This is shown by you bothering to copy protected material. If IP wasn’t scarce you would just pluck other IP from the “tree of infinite” IP that wasn’t protected. Good IP – good creators and their creations – are scarce.

Other people using my land automatically forbid me from spontaneously going out and using it myself. Even for extremely large areas of land, what if my “use” of my land is the satisfaction that nothing is happening to my land? What if I bought it for the pleasurable feeling of knowing that a human-free ecology is developing there?

Same arguments apply to IP. Maybe IP owners like the feeling of knowing that no one can duplicate their work but them. After all, duplication is not production. A duplicator doesn’t homestead or create their own work.

Your example is completely and totally incompatible with IP and this seems to have something to do with your misunderstanding of the concept of “rivalrous versus non-rivalrous”.

Your perspective comes from the absurdity of equating duplication with creation. Creators and their creators are scarce. Otherwise free music services would have ended any file-sharing controversy. If IP is infinite, why not just copy unprotected works?

This has been blown out of the water over and over again. Intangible entities can still be exchanged despite not having an owner because of their non-rivalrous nature. Hence economic calculation is not skewed through lack of ownership.
In fact, it has been shown that assigning ownership to intangible entities does the exact opposite – it creates an economic calculation problem.

You may think so, but I haven’t seen this demonstrated. You are still operating under the assumption that duplication is equivalent to creation, when they are demonstrably inequivalent. Since they are inequivalent a model that equated them would be causing calculation problems. Trying to assume this inequivalency away doesn’t change it’s existence.

Now I realize there are different types of IP and some types are effected by this more than others, it still doesn’t completely change the argument.

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 Jay Lakner January 26, 2010 at 6:56 pm

pro-IP-libertarian,

The arguments you are putting forth seem very strange to me, as is the way you are explaining them. This usually means that the problem here is very fundamental. I’m guessing that this entire difference of opinion comes down to a fundamental disagreement on the nature of the Universe.

Unfortunately it is often very difficult to identify exactly where this disagreement lies.

Where to start? I know …
What do you think of the following statement?:

“Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before. (This is true of any human product, scientific or esthetic: man’s imagination is nothing more than the ability to rearrange the things he has observed in reality.)”

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 Magnus January 26, 2010 at 7:24 pm

The idea that copying is not production is plainly silly.

If you build a useful object, and I look over and make a copy, we made two useful objects. To see how wrong you are, imagine two publishers who decide to print up copies of the same book that is “out of copyright.” Think of something 200-300 years old. Don Quixote. Or older, like Aesop’s fairy tales. Printing these books is obviously a form of production. They are copies — not wrongful copies in the bizarro IP philosophy, but still copies, and yet making them is still a form of production.

You resent copiers, and think they ought to be punished. I get it. But still, pretending it’s not production is just dumb.

To use the form of one of your (rather tired) arguments against you, copying is OBVIOUSLY a form of production, because otherwise, the supposed copyright holder wouldn’t have any reason to object. The IP holder asserts this B.S. right to pattern-protectionism precisely BECAUSE the copyist is producing something that customers want. And that interferes with the SALES that the IP holder thinks he ought to be given without pesky competition.

Which brings me back to the point that none of you IP people want to address — the only “harm” that IP proponents can show arising from the act of copy-based production is a loss of market share. Copying entails no interference between uses of rivalrous goods. No physical displacement. No tangible rivalry at all.

Show me one other area of free market philosophy where maintaining a producer’s preferred market share is considered to be a cognizable, protected property interest.

No such thing.

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 Peter Surda January 27, 2010 at 10:27 am

Dear pro-IP-libertarian,

> I understand it just fine. Although you should talk to
> Peter Surda, he distinguishes scarcity and
> rivalrousness.
Not necessarily. I just remarked that the word “scarce” tends to distract IP proponents away from the actual issue.

I must also repeat what I said before. My opinion that non-rival-goods can’t be owned in an exclusive, non-unique way, is a conclusion, rather than a premise. It is what remains after eliminating faulty assumptions, mainly the causality theory of ownership and the objective identity of immaterial goods. Non-utilitarian IP proponents usually use at least one of those to define property. I think it’s possible, although unlikely, that some non-rival goods are not eliminated by this argument, but what is nowadays understood with IP is probably unaffected by this.

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 pro-IP-libertarian January 27, 2010 at 12:33 pm

Jay Lakner-

“Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before. (This is true of any human product, scientific or esthetic: man’s imagination is nothing more than the ability to rearrange the things he has observed in reality.)”

I assume this is Mises or someone and you are arguing from authority.

Doesn’t matter. Duplication can be distinguished from creation, otherwise everyone would create and no one would have to duplicate. Or no one would create and we would still be at subsistence level.

Creation exists by using one’s imagination, intellect, or some combination thereof and mixing it with their labor (which may include just thinking, thinking can be labor) to come up with a new idea, concept, design, or combination thereof. This is why it can be thought of as intellectual homesteading. And why it creates a natural rights based claim on individual intellectual property.

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 pro-IP-libertarian January 27, 2010 at 12:56 pm

Magnus-

If you build a useful object, and I look over and make a copy, we made two useful objects. To see how wrong you are, imagine two publishers who decide to print up copies of the same book that is “out of copyright.” Think of something 200-300 years old. Don Quixote. Or older, like Aesop’s fairy tales. Printing these books is obviously a form of production. They are copies — not wrongful copies in the bizarro IP philosophy, but still copies, and yet making them is still a form of production.

The notion that they are equivalent production is laughable. Stephen King’s newest book was produced with hours and hours of writing and rewriting, research and revision. Not pressing “print” or “download” on a computer. Also, King has a rare natural talent to produce compelling, entertaining novels and stories. So not only did you not put in the labor, you probably could not perform the equivalent labor even if you tried. This is because his talent is truly scarce. The “talent” necessary to press a button is near universal. So no, creation is not equivalent to production by any stretch of the imagination.

And equating the two would result in a gross mispricing in the market for IP.

You resent copiers, and think they ought to be punished. I get it. But still, pretending it’s not production is just dumb.

No, I just realize they are violating natural rights, which I don’t condone as a libertarian.

To use the form of one of your (rather tired) arguments against you, copying is OBVIOUSLY a form of production, because otherwise, the supposed copyright holder wouldn’t have any reason to object. The IP holder asserts this B.S. right to pattern-protectionism precisely BECAUSE the copyist is producing something that customers want. And that interferes with the SALES that the IP holder thinks he ought to be given without pesky competition.

Say what you will about my argument, at least it isn’t circular. Your argument relies on assuming creation and duplication are the same, they are not. And no, we went over your other point in this thread already. IP exclusion is just like real estate or radio broadcasting exclusion, there is plenty of room for competition left – just do your own creation/homesteading. Create your own horror novel. Oh, that’s right, the skill-set is truly scarce so that will be difficult…

Which brings me back to the point that none of you IP people want to address — the only “harm” that IP proponents can show arising from the act of copy-based production is a loss of market share. Copying entails no interference between uses of rivalrous goods. No physical displacement. No tangible rivalry at all.

Wrong. It throws the pricing mechanism off just like socialism does. Or like what would occur if exclusion was done away with in the real estate or radio wave markets. And note the arguments for exclusion in real estate/etc. are owner-focused, yet no one claims real estate owners are “claiming market share” when they want exclusion.

Show me one other area of free market philosophy where maintaining a producer’s preferred market share is considered to be a cognizable, protected property interest.

Just did. It’s called real estate. Again, arguments for exclusion are owner-focused yet no one accuses them of claiming ownership of market share. You are free to homestead or buy your own real estate and compete. Just like you are free to create or buy your own IP and compete.

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 pro-IP-libertarian January 27, 2010 at 1:06 pm

Peter Surda-

I must also repeat what I said before. My opinion that non-rival-goods can’t be owned in an exclusive, non-unique way, is a conclusion, rather than a premise. It is what remains after eliminating faulty assumptions, mainly the causality theory of ownership and the objective identity of immaterial goods.

Well then there are major problems here, because homesteading is based on causality. You cause ownership by mixing your labor with an object. Just like you cause ownership with IP by intellectual homesteading.

Non-utilitarian IP proponents usually use at least one of those to define property. I think it’s possible, although unlikely, that some non-rival goods are not eliminated by this argument, but what is nowadays understood with IP is probably unaffected by this.

And yet you’re left with the circular – and demonstrably absurd – concept that duplication equals production.

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 Jay Lakner January 27, 2010 at 1:12 pm

pro-IP-libertarian,

I was not arguing from authority. I just felt that Ayn Rand would explain it better than I could.

And your response was not exactly clear.

I want to know whether you agree or not that creation is simply the discovery of a new arrangement that tangible materials can take the form of?

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 Michael A. Clem January 27, 2010 at 2:02 pm

In that case, money is not scarce, and the banks should run 0% reserves. In fact they can spend all their depositors’ money, since obviously they are not using it at this time.
This was already addressed, but with different arguments. I say this argument fails because the value of the monetary unit is not equivalent to IP–the design on the currency is. Millions of people have the same design on their dollar bills, with no harm to others, but the quantity of currency in circulation obviously affects the value of money, to the benefit of first-takers and to the harm of latecomers.
It’s also not fair to compare this to the value or sales obtained or lost by the creators, because unlike money, there is not a direct, proportional relationship between illegal copying and lost sales. Each illegal copy is not equivalent to one lost sale. And while one can download a song and then buy it at a later date, it’s not possible to copy a dollar bill and then “buy” one later.

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 Peter Surda January 27, 2010 at 2:09 pm

Dear pro-IP-libertarian

(regarding harm from IP)
> Wrong. It throws the pricing mechanism off just
> like socialism does.
Just because the price of a good can change by the influence of external factors is insufficient to conclude that “the pricing mechanism is thrown off”. It is actually exactly the opposite: the pricing mechanism allows to reflect external factors in the price.

> Well then there are major problems here,
> because homesteading is based on causality.
It might be or might not be. That’s not the problem. The problem is that if you consider causality a sufficient condition for homesteading, it leads to, in my humble opinion, absurd conclusions. All causally related activities become potential rights violations. All positive externalities will become exposed to payment enforcement. I’ll use two examples by Walter Block (although he didn’t necessarily use it in this context) and two of my own:

(Block)
Using a deodorant will allow you to enforce payment from people who share the same vehicle when using mass transportation. A woman walking on the street with a miniskirt would be allowed to enforce payment from men looking at her.

(me)
Children would be property of their parents. Soviet Union would co-own Atlas Shrugged.

Unless you agree that these examples correctly reflect your idea of ownership, you need to admit that causality is not a sufficient condition for ownership, and the whole argument falls apart.

> And yet you’re left with the circular – and
> demonstrably absurd – concept that duplication
> equals production.
I fail to see how the “duplication does not equal production” leads to ownership of immaterial goods. Every act is unique. Why should that cause arbitrary sets of these acts to become “property” of one person?

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 pro-IP-libertarian January 27, 2010 at 2:59 pm

Jay Lakner-

I want to know whether you agree or not that creation is simply the discovery of a new arrangement that tangible materials can take the form of?

I wouldn’t put it that way. I would look at it as akin to intellectual homesteading. Mixing one’s labor – including thinking – to create a new combination of concepts, thoughts, materials, etc. for the first time. (And enclosing this by going to a recognized place to establish ownership – like one goes to establish homesteaded real property ownership.) Duplication would be distinguished as reproducing an existing, homesteaded piece of intellectual property.

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 pro-IP-libertarian January 27, 2010 at 3:23 pm

Michael A. Clem-

This was already addressed, but with different arguments. I say this argument fails because the value of the monetary unit is not equivalent to IP–the design on the currency is. Millions of people have the same design on their dollar bills, with no harm to others, but the quantity of currency in circulation obviously affects the value of money, to the benefit of first-takers and to the harm of latecomers.

Not quite in my opinion. At least in the US, they generally don’t care if you reproduce images on currency on other things as long as one doesn’t try to pass it off as currency. The US government just claims a right to produce what it considers legal tender and to exclude anything else as legal tender. They want to control production and supply for a particular use, they aren’t too concerned with the imagery as property.

It’s also not fair to compare this to the value or sales obtained or lost by the creators, because unlike money, there is not a direct, proportional relationship between illegal copying and lost sales. Each illegal copy is not equivalent to one lost sale. And while one can download a song and then buy it at a later date, it’s not possible to copy a dollar bill and then “buy” one later.

This reaches to the exclusion issue discussed earlier. Sure, you could still make money with real estate you couldn’t exclude the public from, but it would be difficult and strained. Likewise, you might not lose one sale for every song illegally copied, but there would certainly be some amount of legitimate sales crowded out. Plus there is still the issue of it being unilateral: the copier certainly wants the good or they wouldn’t bother copying, they just don’t want to bother agreeing on price and paying it. This has utilitarian as well as moral consequences.

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 Jay Lakner January 27, 2010 at 3:36 pm

Pro-IP-libertarian wrote:
“I wouldn’t put it that way.”

But do you agree?

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 pro-IP-libertarian January 27, 2010 at 4:07 pm

Peter Surda-

Just because the price of a good can change by the influence of external factors is insufficient to conclude that “the pricing mechanism is thrown off”. It is actually exactly the opposite: the pricing mechanism allows to reflect external factors in the price.

Yes, and under natural rights theory we use homesteading and exclusion to establish particular rights to property. This is reflected in price. Yet these pricing effects are considered acceptable.

Also, the whole pricing mechanism depends on ownership and bilateral agreement to transactions. Under the “duplication is equivalent to creation” model all IP is considered public domain and unilateral transactions are permitted. This is something libertarians don’t tolerate in an economic system for physical property, but it is somehow acceptable for some with IP.

(Block)
Using a deodorant will allow you to enforce payment from people who share the same vehicle when using mass transportation. A woman walking on the street with a miniskirt would be allowed to enforce payment from men looking at her.

Not quite. By selling homesteaded property for a particular use one would agree to particular externalities. IP owners would have to decide what products they are going to sell and in what format. To a large extent we already do this. The woman would have to decide whether she is just going to wear a miniskirt to look nice in a particular location or license a calendar where a mass market can see pictures of her in a miniskirt. Now if I hid a camera in her room without her consent and was charging people money to watch her that clearly would be me profiting from her image and would be subject to legal action. This would be supported under various natural rights arguments – self-ownership, homesteaded intellectual property, etc.

(me)
Children would be property of their parents. Soviet Union would co-own Atlas Shrugged.

Violates both self-ownership and homesteading, in both cases.

Unless you agree that these examples correctly reflect your idea of ownership, you need to admit that causality is not a sufficient condition for ownership, and the whole argument falls apart.

Not at all. First, some of the examples violate self-ownership principles. But the ones that don’t involve an owner decision to engage in a bilateral transaction taking externalities into account or safely ignoring them. McDonald’s knows its fries smell good too, but decide it is worth it to sell the fries and let some people get the smell for free. The miniskirt woman knows that some around her in places she chooses to go would receive a positive externality, but decides it is worthwhile. That still wouldn’t allow putting a camera in her room and charging for it, or making illegal copies of a licensed calendar, which are self-owned and/or homesteaded goods.

I fail to see how the “duplication does not equal production” leads to ownership of immaterial goods. Every act is unique. Why should that cause arbitrary sets of these acts to become “property” of one person?

The same dynamic that allows the creation of ownership in unowned land – labor and homesteading. The duplicated property wouldn’t exist without the created property. And the action of creation is rarer, and necessary for and superior to the action of duplication.

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 pro-IP-libertarian January 27, 2010 at 4:16 pm

Jay Lakner-

But do you agree?

Basically I agree with current IP law. Although I think there may be some room for changes, especially with patents.

I don’t have an exhaustive knowledge about how Rand felt about IP. So I don’t know the context of that quote and her overall beliefs so I can’t say outright whether I agree with all her views on IP. But the quote sounds OK.

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 Jay Lakner January 27, 2010 at 4:39 pm

pro-IP-libertarian,

Ok. That’s a start at least.

Now what if I were to say that all intangible entities are nothing more than possible arrangements that tangible materials can be formed into. In other words, every idea, story, concept, pattern etc is simply a possible arrangement that tangible materials can take.

For example:
Every story is nothing more than an arrangement of ink symbols on paper.
Every song is nothing more than a pattern of air disturbances (sound waves).
Every TV show is nothing more than a pattern of photons of light.
Every thought is nothing more than a pattern of neurons firing in a human brain.

Would you agree with me on this?

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 Peter Surda January 28, 2010 at 4:09 am

Dear pro-IP-libertarian,

> Yet these pricing effects are considered acceptable.
Exactly. But you neglect to explain how to differentiate the “acceptable” from the “unacceptable”.

> Also, the whole pricing mechanism depends on
> ownership and bilateral agreement to transactions.
Exactly. But IP proponents insist that a third party’s (the IP “owners”) agreement is a requirement.

> This is something libertarians don’t tolerate in an
> economic system for physical property, but it is
> somehow acceptable for some with IP.
The only reason for this is that IP proponents fail to demonstrate how is the third party “owner” of the “property” in question with all the other necessary conditions (non-exclusivity and non-uniqueness). Should they manage to do that, I would have no problem with agreeing with enforcing rights thereupon.

> By selling homesteaded property for a particular
> use one would agree to particular externalities.
I don’t understand. Who would agree to what? The way externalities manifest are not always foreseeable. You can’t agree to what you can’t foresee.

> IP owners would have to decide what products
> they are going to sell and in what format.
They can do that without IP just as well. IP just allows them to regulate certain externalities in way they can’t without. But they still can’t control externalities per se.

> The woman would have to decide whether she is
> just going to wear a miniskirt to look nice in a
> particular location or license a calendar where a
> mass market can see pictures of her in a miniskirt.
Exactly. That’s the whole point. No special laws or “property protection” is necessary. Contractual agreements are sufficient to handle externalities.

>> Children would be property of their parents.
>> Soviet Union would co-own Atlas Shrugged.
> Violates both self-ownership and homesteading, in
> both cases.
If that is your conclusion, then IP violates self-ownership (of one’s mind) and homesteading (of physical objects) too. You can’t have it both ways. Just like copyright “preempts” ownership of books, higher level immaterial ownership preempt lower level ownership in my examples.

> First, some of the examples violate self-ownership
> principles.
Like I said, this would also mean that IP violates the self-ownership principle. It’s just a matter of where you draw the line. That refutes the causality theory of ownership.

> But the ones that don’t involve an owner decision
> to engage in a bilateral transaction taking
> externalities into account or safely ignoring them.
Like I said, this proves me right rather than you. Externalities should be handled by contracts rather than special laws.

> The duplicated property wouldn’t exist without the
> created property.
Let’s ignore now the causal issue which I refuted above. What you are otherwise saying is that if I work harder, I have more claim on the beneficial outcomes than those that work less hard. That’s the labour theory of value.

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 pro-IP-libertarian January 28, 2010 at 4:45 pm

Jay Lakner-

Every story is nothing more than an arrangement of ink symbols on paper.
Every song is nothing more than a pattern of air disturbances (sound waves).
Every TV show is nothing more than a pattern of photons of light.
Every thought is nothing more than a pattern of neurons firing in a human brain.

I think I see where you are going: You seem to be trying to lead me through a step by step process through which duplication is equated with creation. Sorry, not buying.

You forget about non-IP intangibles. Things like shares of stock, bonds, etc. These represent claims and contractual obligations – patterns, if you will. Are these just patterns? Can I print an endless amount of IBM share certificates? This is great – how many do you want for your house?

Besides that, you still have the scarcity problems. If IP – patterns – are infinite, why bother copying protected IP? Just copy some from the infinite supply from someone that doesn’t object. Oh, that’s right – IP isn’t really scarce.

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 pro-IP-libertarian January 28, 2010 at 5:25 pm

Peter Surda-

Exactly. But you neglect to explain how to differentiate the “acceptable” from the “unacceptable”.

I think I’ve stated it several times. Same as real estate – homesteading. Then once IP is homesteaded you have to come to a bilateral agreement with the homesteader.

Exactly. But IP proponents insist that a third party’s (the IP “owners”) agreement is a requirement.

No, there’s only two parties: owners(which includes licensees) and customers. Someone that isn’t licensed isn’t a proper party to the transaction, like someone trying to sell a bridge that they don’t hold title to. Someone that doesn’t bother to come to an agreement with the owners isn’t a party either, like someone tresspassing, etc.

The only reason for this is that IP proponents fail to demonstrate how is the third party “owner” of the “property” in question with all the other necessary conditions (non-exclusivity and non-uniqueness). Should they manage to do that, I would have no problem with agreeing with enforcing rights thereupon.

The owner establishes ownership through homesteading of unique or novel creations. Then exclusion is enforced, just like with real property.

This isn’t a “right” to market share just as real property isn’t a “right” to market share. Competitors are free to homestead or purchase their own IP and compete.

I don’t understand. Who would agree to what? The way externalities manifest are not always foreseeable. You can’t agree to what you can’t foresee.

Well, the IP owner will have to consider these. Someone who is not the owner is just that – not the owner – and is subject to whatever sanctions are available to the actual owner. Beyond that I would need examples to comment on.

They can do that without IP just as well. IP just allows them to regulate certain externalities in way they can’t without. But they still can’t control externalities per se.

But like property rights IP allows the owner to address the most common and harmful ones. Especially to the overall market from a utilitarian perspective.

Exactly. That’s the whole point. No special laws or “property protection” is necessary. Contractual agreements are sufficient to handle externalities.

Not quite. In the mass market scenario some slippery sorts will claim she doesn’t have self-ownership, ownership of her image. Then they will claim they weren’t bound by the agreement she had with the licensed calendar printer and will copy and print their own calendar. IP rights prevent this.

If that is your conclusion, then IP violates self-ownership (of one’s mind) and homesteading (of physical objects) too. You can’t have it both ways. Just like copyright “preempts” ownership of books, higher level immaterial ownership preempt lower level ownership in my examples.

Not at all. The homesteader only has ownership of their homesteaded IP. J. K. Rowling only owns her latest book, you are free to homestead your own magic and fantasy books by writing your own. Homesteading only stops you from copying hers without her permission.

Like I said, this would also mean that IP violates the self-ownership principle. It’s just a matter of where you draw the line. That refutes the causality theory of ownership.

Only if you want access to other’s homesteaded property without coming to an agreement with them. It’s pretty elegant that way. You are free to write or buy your own boy wizard stories, why do you have to copy hers?

Also this would seem to help the crowd that claims they want to “encourage” writers and artists to be more productive – more new creations will be produced because the old ones can’t be created without permission.

Like I said, this proves me right rather than you. Externalities should be handled by contracts rather than special laws.

Not at all. It heads off the claims of third parties that want access to homesteaded property without coming to an agreement.

What you are otherwise saying is that if I work harder, I have more claim on the beneficial outcomes than those that work less hard. That’s the labour theory of value.

Not at all. It just means you have the right to sell what you homestead. It doesn’t force anyone to buy. The labor theory of value forces compensation for labor, usually from funds taken by force from the collective. Again, there is plenty of worthless IP homesteaded, and no one is guaranteed purchases.

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 Jay Lakner January 28, 2010 at 5:35 pm

pro-IP-libertarian,

What I am trying to do is to work out how you view existence. My questions are merely ways of gaining insight into how you think so that I can determine the exact area where our disagreement lies. Once we work out exactly where our point of view differs, then we can have a proper discussion on the subject.

In my view, existence is composed of tangible entities in specific arrangements. Nothing more.

Stocks and bonds are also just possible arrangements that tangible materials can take the form of.

I believe that a common error that most people make is that they confuse the subjective meaning we humans assign to entities with the entities themselves. (You may not consider this to be an error at all)

For example:
Harry Potter the book is composed of a configuration of ink symbols on pieces of paper.
Harry Potter the movie is composed of a configuration human actors, stages, lighting effects, etc.
The two are very different. However, humans assign the same meaning to the book as they do to the movie. So an individual might come to the conclusion that they are the same story. But in reality they are not.

My question to you is:
Do you believe that Harry Potter the book is the same as (or similar to) Harry Potter the movie?
Or, do you agree with me that they are totally different and the perceived similarity is just a result of the subjective meaning humans place upon them?

Reply

 Peter Surda January 29, 2010 at 3:00 am

Dear pro-IP-libertarian,

your whole premises rest on an arbitrary definition of “homesteading”. Just like many other IP proponents, you draw an arbitrary line on the causality scale. Maybe it would help if you tried to explain where exactly you draw the line, then you’d realise it’s arbitrary.

> Then once IP is homesteaded you have to come to
> a bilateral agreement with the homesteader.
This is just a first step in the argument. In the second one, you need to establish how far the homesteading reaches and what takes priority if there is a conflict. That is the whole point of my objection. Causality does not answer that. It does not answer whether children’s ownership of themselves or parent’s ownership of themselves takes precedence (logically, the parent’s should, because it is predates the child). It does not answer whether only “good” influences should be considered, there is no reason why Soviet Union should not co-own Atlas Shrugged. Besides, back to my original objection, there is no way to distinguish between immaterial goods and externalities. But according to theory, you can own the former but not the latter.

> Someone that isn’t licensed isn’t a proper party
> to the transaction …
What is “proper party”? That’s just another arbitrary assumption. Governments also claim that some transactions are invalid without them being involved, but that does not make it true.

> The owner establishes ownership through
> homesteading of unique or novel creations.
Another meaningless construct that answers nothing.

> Then exclusion is enforced, just like with real
> property.
Exclusion in material goods is not “enforced”, it “is”. It is the natural feature of those things. It exists regardless of laws or people.

> This isn’t a “right” to market share …
It is.

> Competitors are free to homestead or purchase
> their own IP and compete.
This is only valid from your point of view. From my point of view, it’s the opposite: competitors homestead new grounds, and a monopoly prevents them from using it. From my perspective, those new grounds are externalities of the original.

(externalities)
> Well, the IP owner will have to consider these.
Exactly! IP owner, just like anyone else causing externalities, should consider the effects before making his move, instead of complaining how little he gained by using an infeasible business model.

> But like property rights IP allows the owner to
> address the most common and harmful ones.
There are already property rights in the physical, those are sufficient to address the most common and harmful effects of undesired activities.

> In the mass market scenario some slippery sorts
> will claim she doesn’t have self-ownership,
> ownership of her image.
This is merely another stage of the problem (i.e. you are trying to cure the symptom rather than the cause). The illicit photographer trespassed on physical property. When a woman with a miniskirt goes to a street, she needs to make herself informed about the rules regarding photographing that the street owner does (some might permit photos, some might not). There is no need for IP from this perspective.

> The homesteader only has ownership of their
> homesteaded IP.
But what does this mean? I fail to see how this can mean owning anything apart from that which is in one’s own head. The line where you draw the distinction between immaterial goods and externalities is arbitrary. That’s what you need to recognise. IP is the claim of ownership of other people’s minds. It does not bother you here, but it bothers you with children and Ayn Rand. You need to explain this dichotomy.

Reply

 Peter Surda January 29, 2010 at 3:03 am

Dear Jay,

> I believe that a common error that most people
> make is that they confuse the subjective meaning
> we humans assign to entities with the entities
> themselves.
Very well put Jay, this is what I’m trying to get the IP proponents to recognise and they seem to have a hard time with it.

Reply

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IP: The Objectivists Strike Back!

From the Mises Blog, 12/27/2009

Archived comments (2) below. Also from [Mises; AM]

IP: The Objectivists Strike Back!

12/27/2009

Stephan Kinsella ¸

It is clear to anyone who pays attention that IP is under assault–both institutionally, as digital copying, encryption, distributed information, the Internet, and the inherent impotence of IP policing make attempts to monopolize information patterns increasingly futile; and intellectually, as more and more people, especially libertarians–and especially younger libertarians–see the injustice of IP made manifest and obvious. There is a growing body of work that explodes the myths–moral and utilitarian, principled and empirical–of the IP proponents (see the works listed at the final section of “The Case Against IP: A Concise Guide“). There has been a noticeable and growing migration of libertarians toward the anti-IP position. I have lost count of the number of people who have personally told me they have seen the light on the IP cause in recent years. Among the radical and principled libertarians I know, there is a lot of debate about a lot of things–abortion, federalism, activism, “thickism,” left- vs. right-, etc.–but on two issues there is a striking degree of agreement: these are anarchy, and intellectual property. That the state, and IP, are unjust, seem obvious to them after a little reflection. More and more libertarians are realizing that the case for IP being part of legitimate property rights is a hollow one that never needed to be accepted (see Have You Changed Your Mind About Intellectual Property?).

So it is no surprise that Objectivists would be distressed by this phenomenon. Not only are they among the most ardent modern advocates of intellectual property (in addition to Andrew J. Galambos [see Against Intellectual Property], and perhaps J. Neil Schulman), but Rand in a sense built her entire philosophical edifice on IP: to-wit, Rand incredibly said that “patents are the heart and core of property rights” and Objectivist law professor Adam Mossoff explicitly claims that “All Property is Intellectual Property” (see Objectivists: “All Property is Intellectual Property”). And so, realizing Rand’s arguments for IP are deeply flawed, and that fewer and fewer people are buying it, they are starting to fight back.Let’s survey a few. I’ve already mentioned neo-Objectivist (?) J. Neil Schulman’s logorights; I have pointed out problems I see in his view in On J. Neil Schulman’s Logorights and Reply to Schulman on the State, IP, and Carson. I think some of the mistakes Schulman makes are echoed in the tentative IP views of Machan; a problem with both is that they seem to think that any conceptually identifiable “thing” is ownable. For more on this, see Rand on IP, Owning “Values”, and “Rearrangement Rights”; my comments in the thread of the post Intellectual Products and the Right to Private Property; New Working Paper: Machan on IP; Owning Thoughts and Labor; this comment to “Trademark and Fraud”; Libertarian Creationism; also Elaborations on Randian IP and Objectivists on IP.

Another one was Objectivist IP attorney Murray Franck’s defense of IP and his reply to my response in the IOS Journal, back in 1995 (see Letter on Intellectual Property Rights, IOS Journal (June 1995); I also discuss Franck’s views in Inventors are Like Unto …GODS… and Regret: The Glory of State Law). Here we can see glimmers of the idea that “all property is intellectual property”–or, at least, that IP is the most important type of right (just as Galambos held).

There is Greg Perkins’s piece, Don’t Steal This Article!“, from 2006. I’ve noted deficiencies in his or similar arguments in various publications, such as Perkins on Pursuing Insufficiently Abundant Intangible “Values”; Against Intellectual Property; Objectivist Law Prof Mossoff on Copyright; or, the Misuse of Labor, Value, and Creation Metaphors; Elaborations on Randian IP; An Objectivist Recants on IP; “Intellectual Property and Libertarianism” (in particular see here and the section on Libertarian Creationism); Rand on IP, Owning “Values”, and “Rearrangement Rights”; Libertarian Creationism; Inventors are Like Unto …GODS…; Intellectual Products and the Right to Private Property; New Working Paper: Machan on IP; Owning Thoughts and Labor; and Objectivists on IP; and in media, I discuss problems with Rand’s view at length on the Peter Mac show and at the Mises University this year; also The Intellectual Property Quagmire, or, The Perils of Libertarian Creationism.

Then there’s Objectivist law professor Adam Mossoff who is writing a defense of IP, as mentioned in the Objectivist “Noodlefood” blog post An Objectivist Recants on IP??. Roderick Long informs us that “the Ayn Rand Society session at the APA is also devoted to intellectual property”–indeed it is, with the topic “The Normative Foundations of Intellectual Property: Two Perspectives,” having as speakers Adam Mossoff and Eric R. Claeys, both of George Mason University Law School, and chaired by Allan Gotthelf (University of Pittsburgh), on Dec. 28, 2009 (sadly, I’ll miss it, since I’m here skiing in Steamboat, Colorado. Wait, not so sadly). I’m eager to see Mossoff’s paper (and curious to see what Claeys has to say), but suspect it will be built on the fallacies and errors noted in posts above such as this Objectivist blog post and Objectivist Law Prof Mossoff on Copyright; or, the Misuse of Labor, Value, and Creation Metaphors.

Also noted in Roderick Long’s post is his upcoming Molinari Society IP symposium at the APA later this month (Dec. 29 , 2009), including Bob Schaefer’s “Response to Kinsella: A Praxeological Look at Intellectual Property Rights.” I’ve taken a look at Schaefer’s piece, and it’s not pretty. It’s just a mess. Roderick Long ably dissects just a few of its glaring flaws here.

(Aside: Long’s comments are really superb and insightful. A few comments. Discussing the IP comments of another author, Long writes, “a strong case can be made for thinking that Lockean principles must be substantially distorted in order to press them into service on behalf of IP”. Long backs this up very ably. In the same article he makes an illuminating distinction between three conceptions of “capitalism” that helps to dispel the confusion among both right and left in addressing this issue.

Long correctly summarizes my argument here: “the point of [Kinsella’s] critique of intellectual property is that apparent conflicts over nonscarce abstract objects are really conflicts over scarce concrete particulars – that the novelists’s claim to his novel, for example, is really a demand to control the particular bits of paper and ink in which copies of it are realised – paper and ink that is already legitimately owned by people other than the novelist.”

He also writes “There are some important differences between Kinsella’s approach and the standard Lockean one – some of which I regard as improvements and some not …” I’ll have to find out some day what parts of my approach he disagrees with.)

The Objectivist approach is mired in a number of problems. It anchors property rights to the idea of “creation”; it requires legislation, and the state; it believes in some intrinsic value and some property right in value; it advocates utterly arbitrary and/or unprincipled, utilitarian finite lengths for IP; it rests on an arbitrary distinction between discovery and innovation. In a world where we took the ideas of the IP advocates seriously patent and copyright would have to have infinite duration. And the gaps in coverage would be fixed, and the state’s arbitrary exceptions fixed, such as the “fair use defense” to copyright. At present patent and copyright cover a statutory class of “inventions” and artistic works, respectively. Many logos, idea-patterns, “creations,” values are not protected at present. These include: perfume smells, the fashion industry, food recipes, certain business methods, databases (unoriginal but useful collections of information), abstract ideas such as mathematical algorithms, proofs, and techniques and physical laws. Under the ideas of the IP fanatics, there is no reason not to grant state-monopolies to these patterns too. And the term should not expire in 20 or 100 years–does your property to your house expire after some time limit? And why the utilitarian fair use exception? No principled case for IP could tolerate it.

I would love to see libertarian IP advocates have to live in a world that truly implemented their IP views fully, consistently–it would be like a communist USSR stripped of its power to ape Western price structures, to ameliorate the effects of communism. They would either die out, as the material world was strangled by an impossible nettle of ghostly IP-rights tendrils, or they would cry uncle. Even today, one imagines the cognitive dissonance of Objectivists living in our digital age–cutting and pasting, linking, learning and reworking ideas of others–all the while maintaining that all the things they themselves cannot but help engage in are “immoral” or some such tedious nonsense. I think of modern do-gooder environmentalists–they must feel pangs of guilt while flying on a jumbo jet to a friend’s wedding 2000 miles away, or to attend UN conference or job posting on another continent. They must wring their hangs in agonized guilt and indecision about whether to use styrofoam, paper, or a washable coffee cup. They must feel tremendous guilt whenever they discard a scrap of soiled napkin instead of recycling it. Environmentalist parents must feel terrible pangs of guilt at using disposable diapers (or they suffer by using cloth ones: either way, I am pleased by the thought of their discomfort). Likewise, when an Objectivist emails a vandalized picture of an apostate like Alan Greenspan to a friend they must be conflicted–wait, no, there’s a fair use exception! Thank Rand for the State and its wise laws!

Addendum:

Book Essay: The strange world of Ayn Rand

Control freak

One striking feature of Objectivism is it outspoken support of intellectual property. A key scene in Atlas Shrugged is where metallurgist genius Hank Rearden is compelled by the government to hand over his intellectual rights to his innovative metal alloy, and Ayn Rand acted in kind. She passionately used the copyright on her works to bar people from forming “John Galt Societies”, citing that the name John Galt is her creation and her intellectual property.

For a person bent on propagating her ideas to the maximum extent possible, this would seem eerily counterproductive. Stealing an object from someone is obviously depriving the original owner of his property, but copying it isn’t. It may or may not be harmful to potential income, but that income remains potential, in the realm of the unprovable. This is a debate that incites extreme passion.

While Objectivists, libertarians and conservatives strongly agree on the principle of physical property rights, the picture is much more divided when it comes to ‘intellectual property’, a catch-all phrase for several different items, including patents, copyright and trademarks. In a landmark essay by Stephan Kinsella, Against Intellectual Property, argues that ‘Intellectual property’ is not only meaningless and harmful, it is in direct violation of the general principle of private property, and primarily constitutes a state-sanctioned creation of artificial scarcity, leading ultimately to poverty, not job creation and wealth.

The wider libertarian movement accepted the argument, put it into action (see www.mises.org/books) and moved on. Objectivists, on the other hand, maintain that what Ayn Rand spoke and practiced on the subject remains the unalterable truth.

(See also on this Jeff Tucker, If You Believe in IP, How Do You Teach Others?.)

Archived comments (more):

{ 152 comments }

Bob Kaercher December 30, 2009 at 12:48 pm

Russ: How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property?

Your analogy should be pointed in exactly the opposite direction. It is, in fact, the *IP PROPONENT* who is against property, since they think that a creator has some right to use a “gun” or a “baseball bat” against others for doing completely peaceful, non-invasive activities with their own property, e.g., using one’s own computer to download a song from the web. Such a definition of property is, in fact–regardless of whether the IP advocate can see it or not–*anti*-property.

And what Stephan said.

But I’ll leave off for now and let you have any last words. I don’t see much point in arguing with someone who seems to be desperately looking for kind of semantic loophole in someone else’s argument for who-knows-what reason.

Jesse Forgione December 30, 2009 at 1:46 pm

Russ,

Owning intellectual property amounts to owning one or more possible uses for physical property.
For any given piece of physical property, the more of it’s possible uses are owned by others, the less it’s owner is free to use it. He may only use his physical property in ways that remain unclaimed or in ways that he himself owns which others who own similar property may not use (without his permission). If we follow IP to it’s extreme conclusion where all possible uses are owned, we reach the state where no two people may make the same type of use of similar physical property without one getting the permission of the other. If someone owned a piece of physical property, but none of it’s possible uses, he could not be said to own it in any meaningful way.

In principle, to own a method or pattern is to have a degree of control over all the physical property that exists. To the degree that the various possible uses of others’ property can be owned, those others are not it’s owners.
Let’s imagine I use my own materials to build a house of my own design. You, my neighbor, own similar materials, and seeing my method of building, you imitate my design for your own house. Now either I am justified in knocking your house apart to take back my intellectual property or I’m not. If IP is valid you have stolen my pattern and I should take steps to get it back. If IP is not valid than I’m a vandal violating your property rights. But we can’t both be right. Either I control the pattern you arrange your property in, or you do. If it’s the former, than you cannot really be said to be “owning” your physical property. This would amount to the fascist model where there is nominal private property but the state controls what can be done with it, rendering the “ownership” meaningless.

Also, there’s no reason in principle that IP couldn’t be applied to broader, more general or more obvious ideas. What if I owned not just the design of a specific car, but the very idea of a car? …or the very idea of mechanical transportation? …or the wheel? The difference is only in degree.

Jesse Forgione December 30, 2009 at 1:56 pm

Russ,

Sorry, I should have indicated that the above is in response to:

“Once again, no, IP does not negate classical property rights.”

Peter Surda December 30, 2009 at 1:58 pm

Hi Russ,

thanks for the reply. Yes, I believe in “sort of” property rights in EM and explained my position to Silas several times. I think since the last time I explained it I was able to think of a more coherent approach.

In my opinion, a property infringement means that the integrity of the property is compromised. I didn’t actually come up with the idea, it is one of the known libertarian approaches. In the case of EM, a sender can under certain circumstances cause disruptions in the recipients of other sender’s broadcast. I.e. the integrity of the reception is compromised. This can be prevented (by the second sender) for example by using a different frequency or by agreeing with the first sender to a transmission protocol that allows bandwidth sharing.

An analogy would be that the senders are producers and the recipients consumers. With IP, the provisioning of services by competing producers do not prevent each other. With EM, in certain cases, they do.

The analogy I gave to Silas was spraying a wall. Two sprayers can spray on the same wall in parallel, however the wall can only show one picture at a specific time.

Now, I have not come to the conclusion if it’s the sender or the recipient that “own” the EM spectrum. Arguments can be made with regards to both. Possibly it is a mix of those. Nevertheless, at least one of them has a right to prevent an unwanted sender from disrupting the reception. In some cases, that means they can’t send at all. But it is not the prevention of sending that is the core issue, rather prevention of disruption of reception. If the sender can somehow manage to send without disrupting the reception of another broadcast, there is no infringement.

Stephan Kinsella December 30, 2009 at 6:14 pm

Peter Surda: “I agree with Russ. Presented the way Stephan does it is circular logic. Please remember, both Russ and I are IP opponents. We do not oppose Stephan’s conclusions, merely consider the argument insufficient.”

Peter, I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?

And given this view, to oppose the use of my scarce resource by another, without my permission, is not circular either.

A consequence of this view is that you may use force to prevent others from committing such invasion. But other types of force would then necessarily be trespass, aggression. Force that is not consented to may be used only in response to trespass, otherwise it is trespass.

Now, the IP idea says that A may use force against B, if B is using B’s scarce resources according to a certain pattern that A claims some “right” to. In other words, A claims a right to use force against B, even though B never did perform any action that invaded A’s scarce resource, even though B never did change the physical integrity of A’s property.

That is why A’s claimed right to force is wholly unjustified and is indeed incompatible with the libertarian conception of property rights in scarce resources. We believe every scarce resource should be assigned an owner, based on Lockean principles. IP would set up a second rule for assigning property rights to scarce resources.

Bala December 30, 2009 at 7:05 pm

Bob Kaercher,

I know you posed this question to Russ, but since I seem to agree with him, I thought I’ll reply.

” How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property? ”

If IP is valid, the very meaning of it is that the patent/copyright holder alone has the right to instantiate the idea/pattern. The very act of instantiation by someone else is an initation of force against the “owner”.

In typical Objectivist argumentation, the very existence of the idea/pattern being owed to the creator, there is no excuse anyone can give for claiming that they could not have known that someone created the idea. This is similar to saying “Once you have put a fence to your land, there is no way any person can fail to understand that it is your property”.

Whenever anyone asks “How do you put a marker to show that an idea is owned”, an Objectivist would respond saying that you probably do not even understand the metaphysical nature of ideas – that they cannot come into existence without a creator and that their very “existence” is their “identity” (more Objectivist language, in case you are unfamiliar). You will promptly be labelled “concrete-bound”.

Just as any person crossing a fence without your permission is guilty of initiating force against you, any person copying an idea is then considered guilty of wilfully ignoring the “metaphysical reality” of ideas and initiating force against the creator (who is the “owner”).

In this case too, it is the action of instantiating that which is clearly someone else’s idea that is a violation of his “property rights” just as the action of swinging a baseball into my face is a violation of my “right to life” or the action of invading my land is a violation of my “property rights”. In all 3 cases, it is the action that is being restricted. If…. that’s a big IF…. both classes of property rights (physical and intellectual) are valid, someone who disagrees with the “use” of force to defend one has to necessarily disagree with the use of force to defend the other.

Therefore, Russ is right that if you accept the validity of IP, copying is tantamount to invasion of owned land. Similarly, if you reject IP protection, you should reject physical property protection too on the same grounds.

Bala December 30, 2009 at 7:16 pm

Stephan,

” I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. ”

It is because the basic Objectivist argument for IP does question the validity of the application of the Lockean homesteading view to ideas & patterns and then citing their lack of “scarcity” as the reason to say that they are not “property”.

Further, Russ’s point was “If IP were valid…..”. A response that says “Since IP is invalid…..” and then goes on to say that force is used to protect the “invalid” right and that that is further grounds to consider the right invalid, one is indeed guilty of engaging in circular reasoning.

This error is what I meant when in some other post, I said that your arguments are too libertarian. I can clearly see why most Objectivists will not agree with you and why any arguments you have with them turn heated and end in name-calling. You call them “wilful aggressors” and they call you “concrete-bound”.

Bala December 30, 2009 at 8:17 pm

Peter Surda,

” In the case of EM, a sender can under certain circumstances cause disruptions in the recipients of other sender’s broadcast. I.e. the integrity of the reception is compromised. ”

I was thinking on slightly different lines but came to similar conclusions. My thinking was that when I send a message on a frequency, the message is my property just as much as a letter I have sent out in the custody of a courier is my property till it is delivered to the recepient.

On these lines, my conclusion was that it is not the EM spectrum itself that is owned but the message that is being broadcast on it. Therefore, anyone broadcasting a signal that distorts my message (meaning it would have to be on the same frequency) is violating my property rights.

Interestingly, I was coming to the same conclusion that if the second user of the same frequency could use it without distorting my message, there would be no property rights violation just as your sending a letter through the same courier does not violate the property right I have in the letter I send.

Does this make sense? Is it simple to understand?

Silas Barta December 30, 2009 at 10:10 pm

Looks like Peter_Surda and I have a rare agreement on this issue.

@Stephan_Kinsella:

Peter, I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?

This has been explained to you several times by now, but let’s try it again a different way. The circularity lies in your assumption about which rights you gain by doing how much homesteading, and it is in no way obvious how the rights must work the way you think they do.

Say I homestead a plot of land. How far above and below does that homesteading entitle me to? Yes, you can justify a specific amount, but that’s the point: you have to justify why your rights extend to that boundary (abstract or otherwise), not just assume that your land ownership implies ownership of the airspace through which planes fly, and then argue that “airplanes necessarily violate the property rights in already-owned land” … which, when you think about it, is pretty much what your IP case is.

But that’s just the beginning: does homesteading the land entitle you to block (non-nuisance) concentrated sound waves from passing through your land (e.g. ultrasound)? And of course, back to the ol’ chestnut: does the land ownership entitle you to block every single frequency of the EM spectrum passing through?

Now, there are many cases where you can assume that homesteading entitles you to certain rights. However, here, the very debate is about which rights you are morally entitled to by virtue of homesteading what. And in that case, it is in fact circular to assume a certain level of homesteading-based rights, since you’re trying to prove what the homesteading-based rights are in the first place, which people dispute!

Note that since this is the central argument of Against Intellectual Property, its circularity isn’t very encouraging when judging its merit as an argument against IP.

Andras December 31, 2009 at 12:48 am

Not to mention that the act of homesteading itself is totally arbitrary. How do you homestead a land. Setting the horizontal size of it is as arbitrary as the vertical size. Fencing it? Who are you kidding?
At least a composition of matter patent is unambiguous.

Russ December 31, 2009 at 5:08 am

Bob Kaercher wrote:

“Russ: How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property?”

I’ve already explained that several ways later on in this thread. I said that *IF* IP rights were valid, then using your computer to violate my IP rights would be initiating aggression. Or, if a person’s rights to EM spectrum were valid (which I believe they are), then using your transmitter to violate my EM spectrum rights would be initiating aggression.

“Your analogy should be pointed in exactly the opposite direction. It is, in fact, the *IP PROPONENT* who is against property, since they think that a creator has some right to use a “gun” or a “baseball bat” against others for doing completely peaceful, non-invasive activities with their own property, e.g., using one’s own computer to download a song from the web. Such a definition of property is, in fact–regardless of whether the IP advocate can see it or not–*anti*-property.”

Here you are assuming that which you wish to prove, just like Stephan is. Note the words “completely peaceful, non-invasive activities”. You are *assuming* that using a computer to download a song is a completely peaceful, non-invasive activity. But an activity is only completely peaceful and non-invasive if it does not violate rights. So, by assuming that using your computer to download a song is a completely peaceful and non-invasive activity, you are implicitly assuming that it does not violate rights, which implicity assumes that IP rights are invalid. A Randian would call what you are doing the fallacy of the smuggled premise.

“But I’ll leave off for now and let you have any last words. I don’t see much point in arguing with someone who seems to be desperately looking for kind of semantic loophole in someone else’s argument for who-knows-what reason.”

I’m pointing out what I believe to be a logical flaw in your argument, not looking for “semantic loopholes”. The reason why I am doing this is that I think your argument is both a flimsy argument against IP and a possible (although also flimsy) argument against classical property!

@Jesse Forgione:

I have already argued some of my points elsewhere in this post or thread, so I’ll let those speak for themselves. My comment to you specifically on your last post is that you seem to be going for a sort of reductio ad adsurdem argument against IP. The only problem with using reductio ad adsurdem arguments in philosophy is that some philosophers, being the armchair types they are, won’t find the conclusions absurd! Why not stick to the scarcity argument against IP? It’s perfectly reasonable, and once you have one disproof of the validity of IP, do you really need another?

Stephan Kinsella wrote:

“…I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?”

It’s not the scarcity argument for the validity of property that I think is invalid. I agree with this. I believe that the circularity is actually in another argument, which you seem to be melding together with your scarcity argument. This is the same argument that Bob Kaercher and Jesse Forgione are using without the scarcity argument to prop it up.

That second argument is that IP is invalid, because enforcing it violates the property rights of classical property owners. But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid. Therefore, this argument implicitly assumes that which it intends to prove. As I said before, it is a smuggled premise.

@Peter:

However you want to slice the EM rights thing is irrelevant to my argument, I think. The main thing is that we agree that somebody has a right to use force to prevent a second sender from using his classical property (his transmitter) to interfere with the reception of a signal sent by a first sender. As long as we agree on that, we both agree that there is a case of “overlap” between classical property rights and a newer form of property right (EM spectrum rights), where the newer form rightly wins. That being the case, you should have no objection to overlap in general, hence the overlap argument against IP fails, IMVHO.

Peter Surda December 31, 2009 at 5:34 am

@Russ:
I believe you commit the same logical error as Silas does when arguing for similarity between EM and IP. In EM, it is not the overlap on the sender side that is the cause of the alleged infringement, rather the overlap on the receiver side. More accurate analogy to the IP case would be if person A was sending signal to person B (potentially A and B are the same), with both A and B’s agreement, instead of B receiving the broadcast by person C, and that was alleged to cause an infringement of C’s rights.

If one was to make that claim, one could also claim that preventing person A shooting his gun in a way that the bullet leaves person A’s premises and hits person B is equivalent to IP.

Russ December 31, 2009 at 8:12 am

@Peter:

I’m afraid I don’t understand your last post at all. Maybe not enough caffeine on my part? I’m not sure I understand your overlap theory completely, and I am trying to organize my thoughts on it as I am writing, so bear with me.

My understanding of your theory is that IP would be wrong because there is an overlap of rights with respect to a single object; a CD, for instance. Person A owns a CD, but person B owns the software on the CD, and thus could rightfully use force to prevent A from using his CD as he wishes, if that use violates B’s IP rights. You see this as a contradiction due to the overlap of rights, and thus as a disproof of IP, am I right? I don’t see it as a contradiction, and hence don’t see it as a disproof of IP. The reason I don’t see it as a contradiction is because B using force to prevent A from using his CD in any way he wishes, is in principle no different from me using force to prevent you from using your classical property any way you wish (i.e. using your bulldozer to crush my house). It’s the same with EM spectrum rights. It doesn’t really matter what side the overlap is on, receiver or transmitter (although I can’t see how EM spectrum rights could work if the “homesteading” trasmitter owner didn’t own the rights). All that matters is that *somebody* has the right to use force to prevent somebody else from using his classical property (his transmitter) as he wishes. This is an overlap of EM spectrum rights over classical property rights, since it prevents a second transmitter owner from doing with his own transmitter as he would like, but it’s still valid.

In fact, I would argue that since all property rights involve limitations of what others can do with their own property, all property rights involve overlap, in a sense. Hence, the overlap doesn’t invalidate anything, or all property rights would have to be thrown out the window. I would also argue that your overlap theory is just a more sophisticated packaging of the “IP violates classical property rights, therefore it’s invalid” argument.

Peter Surda December 31, 2009 at 9:27 am

@Russ:

I think you misunderstand me. Apparently my arguments are harder to explain than I anticipated.

You are correct in that overlaps are nothing specific for IP or EM. Which is why abandoned the circular reasoning. Yes, ownership overlaps can also happen if you have purely physical property only, and you are also limited in what you can do with physical property even without IP. Let’s split the argument into two parts.

Overlap: it is my observation that in case of an overlap, the more abstract aspect always takes precedence. The overlap prohibits (from legal perspective) the owner of the less abstract aspect from using it, but the owner of the more abstract aspect is not prohibited from using it. If you only have physical property, for the duration of the overlap both sides are prohibited from using their aspects. If I mix physical objects that do not belong to me (e.g. cheese omelette from stolen eggs & cheese), this prevents all owners equally from using the results (absent agreement).

While (hypothetical) ownership of immaterial properties can lead to prohibition of using physical objects, it doesn’t work the other way around. The more abstract takes precedence. Patents > copyright > physical. Ownership of the lower layer becomes insufficient justification for its usage, there is always an overlap between the layers. This is the core of my argument.

Limits: I don’t think this is an argument I can make within the creation theory of property, from that point of view all limitations whatsoever are irrelevant. I can only show the difference if property is interpreted as a right to integrity.

Stephan Kinsella December 31, 2009 at 9:47 am

Russ:

“It’s not the scarcity argument for the validity of property that I think is invalid. I agree with this. I believe that the circularity is actually in another argument, which you seem to be melding together with your scarcity argument. This is the same argument that Bob Kaercher and Jesse Forgione are using without the scarcity argument to prop it up.

That second argument is that IP is invalid, because enforcing it violates the property rights of classical property owners. But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid. Therefore, this argument implicitly assumes that which it intends to prove. As I said before, it is a smuggled premise.”

I am not sure this is right. You say, “But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid.” But it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

Russ December 31, 2009 at 10:14 am

Peter Surda wrote:

“I think you misunderstand me. Apparently my arguments are harder to explain than I anticipated.”

Yes, they are difficult. The medium we are using to communicate is not as good for “dialoguing” about this as a face-to-face talk would be, but what can be done?

“While (hypothetical) ownership of immaterial properties can lead to prohibition of using physical objects, it doesn’t work the other way around. The more abstract takes precedence. Patents > copyright > physical. Ownership of the lower layer becomes insufficient justification for its usage, there is always an overlap between the layers. This is the core of my argument.”

That this abstraction layer exists is a valid point, because it has to be that way. If IP or EM rights could be derived from classical property rights, there would be no abstraction layer issue. The fact that IP cannot be derived directly from classical property rights (AFAICT) means that IP or EM rights must necessarily be on a different layer of abstraction. This is where some people here fall down, IMO. They insist that only the classical property level is valid, and IP is valid only if it is derivable from classical property rights. It is not so derivable, hence IP is invalid. But assuming that *only* the classical layer is valid is when the smuggling of premises comes into play. If you assume that 1) only the classical layer is valid, and if 2) IP is not derivable from the classical layer, then you have implicitly baked your conclusion into your premises. One could argue that this is what logic is, and what can be done? What can be done is to prove the first premise, which these people don’t do.

That the layers exist, if IP is to exist, I agree with. That the IP layer must override the classical layer for IP to make sense, I agree with. That this somehow invalidates IP, I don’t agree with. Here’s why:

From a previous thread:

Peter Surda wrote:

“The point is that IP creates a dual reality scheme. There is the physical layer, and immaterial layer. These necessarily overlap, and the overlaps cause dual ownership. Therefore, they cannot both be valid at the same time. Since the IP proponents claim that the immaterial ownership takes precedence, that invalidates (classical) property rights.”

I object to the “therefore” part above. Yes, IP prevents a CD owner from using it in any way he might like. It does not, however, prevent him from using it in any way whatsoever. For instance, he could use it to install the software on it, in agreement with the IP owner’s terms of use. He could use it as a coaster. He could use it as a frisbee. He could, in short, use it in any way that does not violate the IP owner’s rights. This is no different than with classical property rights. I can use my gun to target shoot with on my own land. I can use it to hunt deer on my own land. I can use it as a decoration over my mantel piece. I cannot, however, use it to shoot your dog, because your property rights limit me from rightly doing do. What you are saying is equivalent to saying that your right to your dog means that my right to my gun is invalid. It is not invalid, it is only limited. I don’t see how the creation theory gives an IP owner unlimited rights over the CD, only over very specific uses of it.

Stephan Kinsella December 31, 2009 at 10:22 am

Andras: “Not to mention that the act of homesteading itself is totally arbitrary. How do you homestead a land. Setting the horizontal size of it is as arbitrary as the vertical size. Fencing it? Who are you kidding?”

HEy, even dogs are smart enough to recognize territory. It’s a wonder some libertarians are not.

Russ December 31, 2009 at 10:48 am

Stephan Kinsella wrote:

“… it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

Certainly, enforcing IP would violate the rights of classical property owners, if classical property rights always “trump” IP rights. But assuming that classical property rights are the trump suit is quite an assumption. It is basically assuming that which you want to prove. If, on the other hand, you assume that IP trumps classical property rights, then enforcing IP certainly does not violate classical property rights. As I said in my last post to Peter, since IP rights cannot be derived from classical property rights (at least I can’t see how), then it seems to me that for the extension of the concept of property called IP to be enforcable at all, assuming that IP trumps classical property rights would be necessary.

I don’t think this requires throwing out classical property rights, though. Enforcing IP would not mean completely negating *all* property rights to pieces of classical property; CDs, for instance. It would just *limit* the uses that the owner of the CD can make of it, just as my classical property rights limit the uses that others can make of their property. If you try to throw out the idea of property rights *limiting* the rights of others to use their own property, you effectively throw out the whole concept of property rights, AFAICT.

This is where I think Silas has a valid point. If classical property rights trump the extension of the concept of property called IP, then why doesn’t it also trump the extension called EM spectrum rights? If classical property rights are indeed the trump suit, then EM spectrum rights should also be invalid. After all, for EM spectrum rights to be enforcable, they would also have to trump classical property rights (i.e. the right to use a transmitter that interferes with homesteaded bandwidth), AFAICT. If you say that EM spectrum rights trump classical property rights, then you are admitting that some extensions of the concept of property can trump classical property rights. You can’t then say that any trump of classical property rights by an extended form of property right is invalid, because you’ve just admitted that it is valid in one case. In order to preserve the “can’t trump classical property rights” argument, you’d have to 1) throw out EM spectrum rights (thus consigning yourself to perpetual crankdom *grin*), or 2) somehow derive EM spectrum rights from classical rights, which I don’t think can be done.

Silas Barta December 31, 2009 at 11:18 am

Trying again, because I got a message that my comment is being help up for approval, probably because it was too long. Heres a shorter version:

@Stephan_Kinsella:

You say, “But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid.” But it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

That’s still circular, because you’re assuming specific boundaries of classical property, which are the very matter in dispute, and which are far from obvious. Does classical property entitle you to the air above the land up to 60,000 feet?

Stephan Kinsella December 31, 2009 at 11:32 am

Russ:

“… it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

Certainly, enforcing IP would violate the rights of classical property owners, if classical property rights always “trump” IP rights. But assuming that classical property rights are the trump suit is quite an assumption.

But it’s not circular. It follows from the *Lockean* conception of homesteading applied to scarce resources. It may be unjustified, wrong, poorly argued, but it’s not circular.

Silas: ” You say, “But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid.” But it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

That’s still circular, because you’re assuming specific boundaries of classical property, which are the very matter in dispute, and which are far from obvious.”

It’s not circular. You disagree with the Lockean-libertarian conception of property rights, perhaps, just as a criminal or socialist does too-so we have a disagreement. But that does not make my position circular.

Silas Barta December 31, 2009 at 12:21 pm

@Stephan_Kinsella: Where does the Lockean position imply that rights to land only extend to e.g. 30,000 feet? Where does it say that you get the rights to block EM radiation of 4 THz (light) but not 100 MHz (radio waves)? The Lockean position isn’t clear on this, so it can’t be used as proof that your property rights include IP rights.

To prove that without circularity, you would have to go back to the original Lockean justification of property rights, to all the premises for the argument, and establish exactly *which* homesteading acts entitle you to *which* uses, which requires a much finer-grained analysis of the origin of property rights than you gave in your paper, or, to my knowledge, that you have ever provided anywhere.

And that’s a lot of work, don’t you think?

Beefcake the Mighty December 31, 2009 at 12:42 pm

Speaking of 60,000 feet, that’s the height I’d like to see Silas dropped from.

Let’s make it our New Years resolution to ignore this twisted little ass-hat, deny him the attention he so clearly craves.

Silas Barta December 31, 2009 at 12:48 pm

Clearly inappropriate comment from Beefcake_the_Mighty, can we get a deletion over here please?

Andras December 31, 2009 at 12:49 pm

Stephan Kinsella:
“HEy, even dogs are smart enough to recognize territory. It’s a wonder some libertarians are not.”

Dogs are domesticated animals. They do what their master says. Wild dogs have an alpha for the pack and between packs territorial fights set the boundaries. However, people has no instincts, an universal code to set their behavior. The situation for people resembles to the jungle where different species try to set their boundaries without a universal code. They have anarchy. The situation is not “nice”, some consider the other “food”.
I hope this is not what you plan for us.

Russ December 31, 2009 at 1:15 pm

Stephan Kinsella wrote:

“But it’s not circular. It follows from the *Lockean* conception of homesteading applied to scarce resources. It may be unjustified, wrong, poorly argued, but it’s not circular.”

Stephan,

The meat of your earlier post was:

“enforcing IP violates the rights of classical property owners, IF classical property is valid.”

The above says nothing about Lockean theory, one way or the other. It just says that if classical (material) property rights are valid (for whatever reason), then enforcing IP violates the rights of material property owners.

Also, I never said that the quote above is circular; I said that an earlier formulation of yours was circular. I said that the above quote assumes that which you want to prove.

Also, how would you respond to this:

“enforcing EM spectrum rights violates the rights of classical property owners, IF classical property is valid.”

???

I recall that you approve of EM spectrum rights, correct? If so, then you must believe that it is OK to use force to prevent others from using their classical (material) property when that violates EMP (EM ‘P’roperty) rights, even though EMP rights are not compatible with classical (material) property rights. After all, radio transmission does not involve using a slot in the ether which can be homesteaded like land can be. It involves emitting photons, which can travel through empty space. The whole idea of “homesteading” EM spectrum is a sort of legal fiction. The “spectrum” itself, from a homesteading point of view, is a legal fiction. In reality, there is no “spectrum” out there to be homesteaded; all there is is photons, being transmitted by transmitters and being received by receivers. If you enforce EMP rights, you are then violating somebody’s property rights, according to the classical theory, because EMP rights cannot be based on the homesteading of something real.

In order to accept EMP rights, you must extend the concept of property beyond the classical formulation. If you think it’s OK to extend the concept in this case, then you are apparently not opposed to the idea of extending the concept in general. Therefore, you can’t say “IP is wrong, because enforcing it would violate the classical concept of property”. This is equivalent to saying “IP is wrong, because in order for it to be rightfully enforcable, it would require extending the concept of property”. But so does EMP, and you think EMP is OK. There must be another reason why IP is invalid.

My reason for accepting an EMP-extended concept of property is that it is necessary for radio transmission to be useful, not because EM spectrum can be homesteaded like classical property (it cannot; that’s a legal fiction). My reason for rejecting an IP-extended concept of property is not that such an extension is wrong in principle, but simply that it is unnecessary, since ideas and patterns don’t need such protection to be useful.

Stephan Kinsella December 31, 2009 at 2:26 pm

Andras: the point is not that dog fight over territory. It’s that even dogs can *recognize* (a crude version of) property boundaries.

Russ et al.: You guys are getting too fancy for your own good. The basic libertarian view is simple: if there is a scarce resource–something that might be contested because of its rivalrous nature–the libertarian view is that the Lockean-homesteader, or his descendant in title, has property rights in it–the right to right to exclude others, to grant or deny them permission to use it. That is all.It does not mean you can do “anything” with it for the simple reason that you are not permitted to do anything you want–you hav a right to engage in whatever actions you want except those that invade others’ property. This basic formulation does not answer all the gray areas or procedural or epistemic issues, but that does not make this a “circular” idea, Silas. but it is the libertarian idea.

Given this idea the only acts that are prohibited are that that use others’ property without their consent. A continuum issue might arise with somehting like sound or smell: a little bit is permissible, too much interferers w/ your neighbors’ use of their property, so is an invasion. This is a continuum issue.

But IP is not. There is no conceivable argument whereby A’s peaceful use of his own property–fashioning it into certain shapes, using it according to certain recipes or steps–invades the borders of others’ property. This is not circular. It follows directly from the Lockean libertarian conception of the very nature, purpose, and justification of property rights.

Bala December 31, 2009 at 2:33 pm

Stephan,

” It follows from the *Lockean* conception of homesteading applied to scarce resources. It may be unjustified, wrong, poorly argued, but it’s not circular. ”

Russ has already handled the “circular” part. So, I’ll stick to the “poorly argued” part because that has been a long-standing problem of mine.

There is a fundamental problem with having the Lockean conception of homesteading applied to scarce resources – you CANNOT apply them to entities that are not scarce by their nature. Since ideas and patterns are not scarce, you cannot even honestly apply this principle to them because that they will fail to meet the criteria is obvious to the lowest of intelligences. To then say that that is the reason for refusing to acknowledge them as property is equally ridiculous.

That is why you need to go beyond the Lockean conception of “property” and develop a whole new theory of “property”. Any such theory has to be based on a proper understanding of nature – that of man and of the objects to which we would be applying the label – and should be derived through a process of reasoning starting from self-evident axioms.

That’s what the Objectivists claim to do though I am quite confident that their approach uses some flawed ideas mid-course to justify labelling ideas and patterns as “property”.

You will need to do that too. If and while you do that, I think there is a lot in the Objectivist framework that gives an extremely good starting point, especially the definition of man, his nature and the very concept of “rights”. In particular, I find the idea that all “rights” are “rights to action” particularly fascinating because that, IMO, is where in the inductive process, ideas and patterns lose all claims to the status “property”.

(That’s also why I have NOT sloughed off Objectivism and still claim that I am an Objectivist.)

” You disagree with the Lockean-libertarian conception of property rights, perhaps, just as a criminal or socialist does too-so we have a disagreement. ”

No. I am (and I think Russ too is) saying that the Lockean-Libertarian conception of property rights is not applicable to all categories of entities to which the label “property” is being attached. Hence, there is a need to expand it by going to its root and starting inductively all over again.

Bala December 31, 2009 at 2:43 pm

Stephan,

” There is no conceivable argument whereby A’s peaceful use of his own property–fashioning it into certain shapes, using it according to certain recipes or steps–invades the borders of others’ property. ”

There is a conceivable argument (though I think it would be flawed for reasons very different from what you cite) and I think you are not even recognising it, leave alone trying to understand it.

You are insisting on forcing your premises (Lockean conception of “property”) on everyone else, even on those who think there ought to be a different basis because the Lockean basis is not good enough.

Here’s another reason why you are excluding (incorrectly) ideas & patterns from your analysis – they cannot be “homesteaded” because to be “homesteaded”, they must be in existence prior to the act of “homesteading”. Ideas & patterns need to be brought into existence first and the “creator” does just that.

Jesse Forgione December 31, 2009 at 2:46 pm

I don’t agree that EMP rights require extending the classical concept of property. A transmission, unlike the information itself, is physical. The message from the sender to the receiver is in the form of a sequence of photons. Blocking or otherwise damaging a transmission is no different from damaging someone’s mail. “Homesteading” a frequency would simply mean you were the transmitting your message first, and the latecomers are the ones interfering with it and damaging it.

Bala December 31, 2009 at 3:06 pm

Jesse Forgione,

” Blocking or otherwise damaging a transmission is no different from damaging someone’s mail. ”

This part I agree with and have stated so.

” “Homesteading” a frequency would simply mean you were the transmitting your message first, and the latecomers are the ones interfering with it and damaging it. ”

Not if one figures out a way of sending multiple messages on the same frequency without one message distorting the other.

Russ December 31, 2009 at 3:10 pm

@Jesse:

One problem with your argument is that a second transmitter does *NOT* block transmissions from the first transmitter. The receiver receives *both* transmissions. Unfortunately, it receives them as one waveform that is the superposition of both messages, and cannot separate them.

Another problem is that since the message is transmitted through the space in between the transmitter and the receiver, what says that the transmitter has the right to send the photons through the intervening space, if he doesn’t own all that space?

Peter Surda December 31, 2009 at 3:13 pm

@Russ:
> The fact that IP cannot be derived directly from
> classical property rights (AFAICT) means that IP
> or EM rights must necessarily be on a different
> layer of abstraction.
I am not sure I can prove the difference between IP and EM within the context of IP proponents’ assumptions. I can only do that by using the “property = integrity” definition. In this context, the concept of layers is irrelevant.

> I object to the “therefore” part above.
You have a valid point, I think the “therefore” was premature. I’ll think about a way to prove that some other way.

@Stephan:
You have proven that the definition of property via scarcity is incompatible with IP. I hope I won’t sound too rude if I say that this is nothing new. What however Bala, Russ and I are trying to achieve is to prove that the IP proponents’ premises lead to contradictions. At least that’s what I am trying to do. That’s much harder. I agree that your definition of property (via scarcity) is correct, I arrived at essentially the same one via multiple routes. However, I want to prove that this definition is not a premise, but a conclusion, by showing that other definitions are self-contradictory or useless.

Bala December 31, 2009 at 3:19 pm

Peter Surda,

” However, I want to prove that this definition is not a premise, but a conclusion, by showing that other definitions are self-contradictory or useless. ”

I agree. That is precisely my point too. If Stephan’s objective is to take on the (philosophically) strongest proponents of IP, then he needs to take on the Objectivists. To do so, he needs to start from their premises and show how ONLY entitites that are scarce by their very nature OUGHT to be treated as “property”.

Jesse Forgione December 31, 2009 at 3:41 pm

@Bala,

“Not if one figures out a way of sending multiple messages on the same frequency without one message distorting the other.”

I agree with that, but I don’t see how it’s an objection. The reason I put quotes around the word “homesteading” is because it’s not exactly the right word for the right to not have your property damaged in transit, provided it is not already infringing on another’s property.

@Russ,

The first problem is silly. I’m sure you’ll agree that if I mix feces into your food, it’s been damaged, and has become unusable.

The second problem only exists if the transmission is somehow infringing on someone’s property, which is not the case so long as it doesn’t interfere with the usefulness of said property to it’s owner. This is also important for the people who were talking about arbitrary heights above someone’s land. For more on this point I’ll refer you to Rothbard: http://mises.org/daily/2120

Russ December 31, 2009 at 4:36 pm

Stephan Kinsella wrote:

“But IP is not. There is no conceivable argument whereby A’s peaceful use of his own property–fashioning it into certain shapes, using it according to certain recipes or steps–invades the borders of others’ property. This is not circular.”

This circularity thing really bugs you, doesn’t it? Fine, I’ll take it back. I still think that your argument is a smuggled premise, i.e. you are implicitly assuming that which you wish to prove.

Here is what I understand your argument in your last post to be, in a nutshell:

Premise 1) The only valid theory of property is the Lockean homesteading theory of property.

Premise 2) IP cannot be derived from Lockean homesteading theory.

Conclusion) Therefore, IP cannot be enforced without violating property rights. Therefore, IP is invalid.

If the premises are true, then the conclusion is true, I’ll grant you. But the first premise is not obviously true. By taking it as a given, you are basically assuming all the rest.

Let’s go back to the quote above, which I’ll repeat part of:

“…There is no conceivable argument whereby A’s peaceful use of his own property–fashioning it into certain shapes, using it according to certain recipes or steps–invades the borders of others’ property. …”

Let’s say A fashions his own physical property into a machine. Then he uses the machine to emit “Barta rays” to a machine that Z built which is designed to detect Barta rays. B builds a machine similar to A’s, and also emits Barta rays. Z’s machine also detects these. Z would rather that B’s machine not emit Barta rays, because the Barta rays that A’s machine is emitting are modulated into a message that Z wants to receive, and B’s Barta rays are interfering with this. Nonetheless, B is not doing anything that invades the borders of Z’s *physical* property. Nothing B’s machine is doing is damaging either A’s or Z’s machines. And neither A nor Z has a real right to expect that only A can use his Barta ray emitter, or that Z can receive the message. Therefore, neither A nor Z really has a right to make B turn off his machine.

Then along comes a lawyer. He notes that Barta rays exist in a range of frequencies. He says, “What if we call this range of frequencies ‘Barta space’? Then we can pretend that Barta space is like real space; then it can be homesteaded and owned!” Voila, the concept of Barta space property, or BS property, is born!

The lawyer gets the government to enforce BS property rights. Pretty soon Barta ray emitters and detectors are everywhere, become a significant part of the economy, and people can’t imagine living without them.

Then another person, C, comes up with a machine he calls a “pattern manipulator”. It turns out that a pattern manipulator, if configured with the proper patterns, can do many useful things. He comes up with a really useful pattern. The only problem is, people get copies of this pattern from their friends instead of paying C for them, and this puts a real crimp in C’s business plan. But C can’t stop them. After all, if people make their own pattern manipulators out of their own property, then they can do what they want with them, right?

Along comes the lawyer again. He says, “What if we say that the set of all possible patterns is part of ‘pattern manipulator space’? Then we can pretend that pattern manipulator space is like real space, and can be homesteaded and owned!” Voila, pattern manipulator space rights, or PMS rights, are born!

Now, what is the essential difference between BS rights and PMS rights? After all, they’re both just legal fictions, that don’t involve homesteading a real space or piece of material property. If one is OK, why not the other?

(BTW, no offense was intended to Mr. Barta. All was written in the spirit of good, clean, silly fun.)

“but it is *THE* libertarian idea.” (emphasis added)

Ahem. No. It is *A* libertarian idea. It’s amazing how *THE* libertarian ideas always seem to agree exactly with what you happen to believe.

Silas Barta December 31, 2009 at 4:41 pm

@Stephan_Kinsella:

-the libertarian view is that the Lockean-homesteader, or his descendant in title, has property rights in it … This basic formulation does not answer all the gray areas or procedural or epistemic issues, but that does not make this a “circular” idea, Silas.

You clearly haven’t been reading my comments, because I answered this exact point already:

1) If you’re justifying property rights (in the abstract) through Lockean homesteading, it’s not a circular argument. I agree with you here. That’s not the problem.

2) But when the very topic of dispute is about which specific property rights a homesteading entitles you to, you cannot assume that it does or does not entitle you to specific rights. That is circular, because you’re essentially saying, “IP violates already-owned rights because those rights are already owned.” Um, but *why* are they owned?

3) When your 2nd biggest argument is that IP rights are vague, you make that argument irrelevant when you admit that your property system leaves property rights vague as well. Yes, it’s impossible to define a property system with arbitrary precision. So what?

Silas Barta December 31, 2009 at 4:55 pm

Great example, Russ. No offense taken. I would recommend, however, that people read my example about a dispute analogous to one over EM rights.

EM rights are basically the same as the “right to hit a gong in this area for the five minutes after 8am”. It is necessary for people to respect both rights in order for information to be transmitted through that medium. If more than one person transmits at frequency f, people cant measure frequency f and get a message out of it. if more than one person hits a gong at 8:03am, you can’t send messages via the gong at that time.

I think there’s an unfortunate tendency to blur metaphors with reality when talking about EM rights. When you send a message via radio waves, what’s really going on is that you’re exciting electric fields in a certain pattern, and people use a pre-defined method to decode the patterns. Everyone can transmit the waves at the same time, but *not* while also sending information. But why does this information transmission capability entitle one to claim a portion of it as their own? If you can justify that, you can justify IP. And yet most people intuitively see the scarcity in EM waves.

Russ December 31, 2009 at 5:36 pm

Peter Surda wrote:

“What however Bala, Russ and I are trying to achieve is to prove that the IP proponents’ premises lead to contradictions.”

That’s not what I am trying to do. I’m trying to show that the “IP is invalid because it violates classical property rights” argument is invalid. This is not because I am pro-IP; I’m not. It’s because I think this argument is poor; it assumes that no “extended” conception of property rights is valid, even though I think that an extended conception of property rights is needed to justify EMP. Also, I think the argument, when not explained in its Lockean fullness, could be used against classical property.

Jesse Forgione wrote:

“The first problem is silly. I’m sure you’ll agree that if I mix feces into your food, it’s been damaged, and has become unusable.”

Sure, but food is a material that I can own under a Lockean theory of property. Radio signals are not property in the same sense; I don’t believe there is a reasonable expectation under Lockean theory that a radio receiver will not receive signals that the owner doesn’t want.

“The second problem only exists if the transmission is somehow infringing on someone’s property, which is not the case so long as it doesn’t interfere with the usefulness of said property to it’s owner.”

What if I build a tall metal wall that blocks radio waves? Is that OK? That would interfere with reception just as much as another signal on the same frequency would. Is one OK, and one not?

Silas Barta wrote:

“But why does this information transmission capability entitle one to claim a portion of it as their own? If you can justify that, you can justify IP. And yet most people intuitively see the scarcity in EM waves.”

There is “scarcity” in the sense that there is a scarcity of useful channels, in the information theory sense of the word “channel”. Only one transmitter can use a channel at a time, and have it still be useful for transmitting information. I don’t think there is any scarcity of anything physical here, though, so it’s hard to derive EMP from pure Lockean theory, AFAICT. As I said above, I don’t think there is a reason under Lockean theory for a person to expect that a radio transmitter/receiver pair will be a useful information channel. In order to do that, somebody has to say “Wouldn’t it be nice if we all pretended that these scarce information channels are really scarce physical goods? Then we can treat them like property and get some use out of them!” But that introduces the bête noire of many people here; utilitarianism! AAARRGGHHH!!! *grin*

But with respect to IP, I don’t think there is a scarcity of any kind here. An indefinitely large number of people can get use from the same pattern at the same time, including the person who originated the pattern. Since there is no scarcity of any kind here, the argument falls back to “Let’s pretend that patterns are scarce physical goods; then people can sell them for money. If they can’t do that, nobody will make them. That’s unacceptable, so we need to pretend they’re like scarce physical goods.” My only problem with this logic is that I don’t think that people will stop programming, writing, making music, etc., if IP goes away. If I could be convinced that this is the case, then I would become pro-IP.

Andras December 31, 2009 at 6:40 pm

Stephan Kinsella:
“(To Andras): the point is not that dog fight over territory. It’s that even dogs can *recognize* (a crude version of) property boundaries.”

Your comment about dogs and property is totally irrelevant.
As an IP lawyer you should know that IP and IP laws are not about property but homesteading of properties, internalization of the external. They try to codify this arbitrary process. Of course, here your scarcity argument will not stand either, an original idea is unique by definition. My original comment, that even homesteading of land is at least as arbitrary as the IP laws was then thrown to the dogs. This issue is always ignored or ridiculed.

Jesse Forgione December 31, 2009 at 6:54 pm

Russ,

To own a “channel” or “frequency” would necessitate the kind of abstraction you’re talking about, but no imaginary “Barta-Space” is required given that what’s being transmitted is a useful physical object, and that sabotaging it’s function destroys it, as much as covering a written letter with more ink.
It’s not that you can homestead some imaginary territory, you simply have a right not to have your property destroyed. If you were broadcasting a signal that did not destroy someone else’s signal, than you have a right to continue doing so without your (quite physical) property being destroyed.

It’s funny you should mention a metal wall, because I almost used the example of erecting a giant lead wall, but I had already been accused of taking things to the level of absurdity, so I changed it to tampering with the mail. But the wall is a good example as it demonstrates the physicality of the signal itself, and no, you should not build a giant metal wall in cases where the the airspace was already in use for broadcasting. (You’ll like that Rothbard article, I promise.)

Silas Barta December 31, 2009 at 7:04 pm

@Russ: Thank you for your thoughtful analysis. Let me explain where i disagree with your attempt to distinguish IP from EMP.

In EMP, people recognize that there is a scarcity to the extent that people deem EM waves more valuable if people have exclusive rights in them. The desires of everyone in transmitting information cannot be all satisfied, so in the sense that people value using the EM spectrum to transmit information, there is scarcity. But people value *some* transmission capability over zero transmission capability, and the assignment of EMP eliminates some, though not all, of the scarcity.

It is in this sense that IP is parallel: people deem (both as creators and consumers) ideas more valuable when the creators can have exclusion rights in them. The consumers value the better ideas, and the creators value being able to do something they like when they can (choose to) have more control over its distribution. This allows more value to be extracted from the “idea space”, just as exclusivity in EM waves allows more value to be extracted from the EM spectrum.

It’s also parallel in that people can detect when others are transmitting their pattern in violation of their claimed rights, just as they can detect radio interference. Despite IP opponents’ protests of “how does this use of property enter your property’s boundaries?”, the IP infringement does in fact “leak out”. After all, how do IP rights holders ever know who to sue, and that they need to sue someone, when others infringe?

It’s also funny that I spent the earlier evening of the last two New Year’s Eves making the IP/EMP parallel on the Mises blog. Go fig.

Beefcake the Mighty December 31, 2009 at 10:00 pm

Since it’s not 2010 yet, I’d like to point out that Silas Barta is the intellectual equivalent of a dirty sanchez.

random troll January 1, 2010 at 1:41 am

Don’t read this post.

(sorry, I’m just trying to fix an error)

Jay Lakner January 1, 2010 at 1:44 am

I sent this post already, but the site seems to be a bit buggy at the moment. I apologise if this results in a double post. (the “random troll” above was me, my apologies)

The EM spectrum argument is exactly the same as a “sound waves” argument. The same problems arise, for example, when two bands decide to hold a concert on the same night right across the road from one another. It seems to me that “communication” is a special case of “property”. Another example which seems to fit into this area is whether or not someone is allowed to paint their skyscraper bright pink. This is clearly not in the “communication” category and demonstrates that their is a fuzzy line between the two.
It seems clear to me that more work needs to be done in this area from all camps.

I think the charges against Stephan Kinsella for “circular reasoning” or “assuming his own conclusion” are not justified. As usual, the source of the disagreement comes down to simple definitions. This all comes down to whether your definition of “ownership” is positive or negative.
If you define ownership as: ‘the right to transform your property in any arrangement or pattern’, then IP rights clearly violate classical property rights.
If you define “ownership” as: ‘the right to exclude others from transforming your property in any arrangement or pattern’, then IP rights do not violate classical property rights.

I adopt the first definition myself and therefore I think Stephan’s arguments are valid. Lastly, I should point out that, if in the process of transforming your property you interfere with someone else’s property, you are violating their rights. Hence I believe the first definition has the second definition embedded within it.

I’m not sure if I explained that well enough. In any case, I think everyone needs to clearly state their definition of “ownership” prior to engaging in a discussion like this. Otherwise we all just go round in circles.

Peter Surda January 1, 2010 at 4:06 am

@Silas:
I have tried to explain to you why your argument is wrong. First of all, it requires the value definition of property (which is demonstrably wrong). Then, it fiddles with the meaning of the word “scarce”, which only confuses, and doesn’t clarify. Last but not least, if the integrity definition of property is taken, the argument falls apart and the difference between EM and IP is clarified. Integrity aspect is equivalent with rivalry: non-rival goods do not have integrity.

It is theoretically possible that the integrity argument does not prove ownership of EM per se, but only of the transmissions, however from practical point the consequences are identical. Just like the right to prevent others from making noise and flashing you in the eyes is a consequence of you wanting to hear or see something else and does not necessarily require the ownership of sound waves and light.

In EM, concurrent signal sending sometimes changes what the recipient receives. In this case, one can assume a violation. There is no equivalent phenomenon in IP, no matter how many (unauthorised) copies are made, the (legitimate) customers of the original author still can use their own copies unaffected.

Peter Surda January 1, 2010 at 4:17 am

@Jay Lakner:
In a way I agree with you. However, our goals seem to be different. My goal is not to show that my own premises invalidate IP, but that my opponents’ premises either:
– invalidate IP too, or
– lead to contradictions, or at least
– are useless (void of meaning)

Jay Lakner January 1, 2010 at 5:32 am

@Peter Surda,

I know what you’re trying to do but I think the task is impossible when you consider how broad their premises are. Every Objectivist I’ve argued with has demonstrated a complete lack of willingness to precisely define their premises. The very fact that I have not yet once seen specific Objectivist definitions of “property”, “ownership”, “action”, etc is proof of how shaky their foundations are. Objectivists avoid doing this completely. They usually just start quoting Ayn Rand and calling me names when I raise these questions. The exceptions to this rule (eg Bala, Deefburger) have all converted to the anti-IP position.

“Intellectual Property” is a contradiction in itself. And the absurdities that result from following this concept to it’s logical conclusions should be obvious to everyone. Objectivists themselves realise the contradictions. That’s why they advocate these arbitrary limited time periods on “IP” and why they state that discoveries are ineligible for protection while creations are eligible (as if there was any difference between a discovery and a creation).

The contradictions are already present. No need to spend time finding even more of them. Now we have to show where their reasoning is false. And this, I believe, lies in the “broadness” of their premises. In particular their very definitions of property and action.

Once they define “action” as something along the lines of “a transformation of a tangible material from one pattern to another pattern”, the flaw in their reasoning starts to become apparent.

Surely the only way to make progress is by demonstrating the “broadness” of Objectivist premises and encouraging a more precise definition.

Bala January 1, 2010 at 6:16 am

Jay Lakner,

” Surely the only way to make progress is by demonstrating the “broadness” of Objectivist premises and encouraging a more precise definition. ”

I don’t think it has anything to do with the “broadness” of Objectivist premises but with errors in interpretation of a number of their own premises including the basic definition of “rights”.

For instance, after stating that rights are moral concepts sanctioning man’s freedom of action in a social context (Rand’s own emphasis was on the word “freedom”), Rand goes on to “deify” Intellectual Property even though copying an idea or pattern does not in any way affect the freedom of action of the originator.

By insisting that the originator alone should be free to instantiate the product, she has converted IP rights into a “right to an object” or an “exclusive right to perform an action” rather than a “sanction of the freedom of action”. That to me is as self-contradictory as it can get.

There is more. A thorough analysis can reveal all the errors.

That apart, the main defence that serious Objectivists offer to most refutations of their stand is that their position is inductively derived from a proper understanding of the man’s nature and is hence a position most suited to the survival of man qua man. They reject most refutations as arrived at through a process of deductive reasoning and hence unsuitable to disprove conclusions obtained through an inductive process originating in self-evident axioms.

As I understand it, there are errors that have crept into the inductive process leading to wrong conclusions. These errors include ignoring key aspects of the nature of man as well as the entities that one is attempting to assign the moral status “property”. This has led them to treat entities that they ought not to consider as “property” as just that.

Therefore, IMO, the correct way to take on Objectivists is to start from their own premises, go through an inductive process, correct the errors of omission and commission that they have made (pointing them out clearly) and show that the Lockean conception of “property” is the most moral one.

If and when that can be done, IP would stand automatically invalidated to any honest Objectivist.

Peter Surda January 1, 2010 at 6:24 am

@Jay Lakner:
I agree with you to a certain extent, I also bemoan the lack of proper definitions by IP proponents. That’s my point 3. But it is difficult for me to argue this way. Since I wasn’t able to bring (most) IP proponents to make proper definitions, I need can only attack a strawman (e.g. “creationist” definition of property).

MichaelM March 5, 2010 at 1:27 am

@Jay Lakner

Property: an owned value
Ownership: justifiable possession
Action: self-initiated exercise of a mental or physical function
Action (in the context of rights): self-initiated exercise of a mental or physical function to gain or keep a value

“… (as if there was any difference between a discovery and a creation).”

Facts are discovered, and they cannot be property because their existence and value to man is not a product or consequence of anyone’s reason and effort. Ideas, on the other hand, but for someone’s reason and effort would not otherwise exist as values.

@Bala

“… copying an idea or pattern does not in any way affect the freedom of action of the originator.”

You have dropped the context of “action”.

The actions rights protect are individuals’ applications of reason to their effort for the production of life-fulfilling values. The right to an action is the right to its product and consequences. There is no point to defining rights to actions in pursuit of life fulfilling values if the values that are the product and consequences of those actions would not be recognized as property.

Concrete-bound Misesians can’t see the values owned for the physical “actions” and “patterns” over which they obsess.

Dean West September 11, 2010 at 2:32 am

Why does Mr. Kinsella sign and copyright his work? I wouldn’t ordinarily make a big deal of such an inconsistency, but his above article seems to take pleasure in pointing out other people’s inconsistencies, so I figure fair is fair.

Admittedly, I’ve not read everything he’s wrote. He’s wrote a lot, and I just saw this site for the first time yesterday. But why sign your name to an non-”tangible”, non-”scarce”, non-commodity? I mean, it’s not like it’s real property, so why lay the putative claim of a name on it? And why copyright it, given the lovingly described evils of that “statist” system? And why are some monographs and such charged for? To charge for that which is claimed to be unownable – how does that work?

If “Kinsella” is but a pen name, and the copyright was against his will by evil statists who tricked him, and he never profits a cent from his unownable non-valuable, non-tangible writings, then my apologies in advance. I’ll be glad to hear it, mainly so I can start copying all his stuff, without that “Kinsella” name, and proceed to give it away to all comers for free.

Or maybe I’ll put MY name on it – after all, were he to forbid that, it would be like he was laying claim to my ink, and I know he’s not about that. I can use my ink as I please, so I’ve the freedom to write my name on his writings. Since I won’t sell it, I won’t be committing fraud, as no one will have lost any money.

And gee, he has put some of his stuff up on the net, and is letting people order copies of his stuff without signed, notarized and attorney approved contracts on each sale, so clearly he has – according to his arguments – gave up all interest in these non-works. I’m pretty sure they’re mine now. At least I won’t have to worry about a lawsuit, after all, “copying isn’t theft”, right? And he’ll still be able to look at his originals, right?

I would feel bad, but as he’s explained, mere creation of a thing gives no rights at all. Only the rights of the copiers, to be free to copy as they please have any relevence. Right to property in created ideas is non-existent, but the right to those created ideas by copiers is all encompasing.

Well, someone let me know.

(P.S. I am being facetious, and no matter how many silly arguments I see for stealing a person’s work, I would not do so.)

Stephan Kinsella September 11, 2010 at 11:28 am

Dean:

Why does Mr. Kinsella sign and copyright his work? I wouldn’t ordinarily make a big deal of such an inconsistency, but his above article seems to take pleasure in pointing out other people’s inconsistencies, so I figure fair is fair.

Your question displays utter ignorance. Why people who are ignorant about a topic pontificate about it I will never understand. I do not “copyright” my work. The state grants me a copyright in it automatically. You have a copyright in the comment you just left; and I have one in this message here. Why is it inconsistent for me to oppose a fake right that the state grants me and others? If the state granted me the right to own you, I would not use that right nor would I be inconsistent for opposing slavery.

But why sign your name to an non-”tangible”, non-”scarce”, non-commodity? I mean, it’s not like it’s real property, so why lay the putative claim of a name on it?

Signing it is not claiming it; your question is asinine. It’s just stating a fact: that I wrote it.

And why copyright it, given the lovingly described evils of that “statist” system? And why are some monographs and such charged for? To charge for that which is claimed to be unownable – how does that work?

I am about to self-publish a legal dictionary on Amazon’s DTP/kindle system, and will charge for it, but will not enforce copyright. I charge b/c I”m offering a package some might want; others are free to copy it and try to compete with me.

If “Kinsella” is but a pen name, and the copyright was against his will by evil statists who tricked him, and he never profits a cent from his unownable non-valuable, non-tangible writings, then my apologies in advance. I’ll be glad to hear it, mainly so I can start copying all his stuff, without that “Kinsella” name, and proceed to give it away to all comers for free.

Or maybe I’ll put MY name on it – after all, were he to forbid that, it would be like he was laying claim to my ink, and I know he’s not about that. I can use my ink as I please, so I’ve the freedom to write my name on his writings. Since I won’t sell it, I won’t be committing fraud, as no one will have lost any money.

I would not forbid it since I recognize that I do not own any information patterns adn you are not violating my rights if you sell something to a willing buyer. If you put your name on it one of your customers may have a fraud claim against you, but that’s between you and him. Doesn’t violate my rights any way. Are you ever aware that at the bottom of this very page there is a Creative Commons license that already gives you permissions to use things on this site as you see fit?

Another IP socialist suggested something similar to what you are suggesting, and I called his smartass bluff. http://www.stephankinsella.com/2010/07/29/russell-maddens-the-death-throes-of-pro-ip-libertarianism/

And gee, he has put some of his stuff up on the net, and is letting people order copies of his stuff without signed, notarized and attorney approved contracts on each sale, so clearly he has – according to his arguments – gave up all interest in these non-works. I’m pretty sure they’re mine now. At least I won’t have to worry about a lawsuit, after all, “copying isn’t theft”, right? And he’ll still be able to look at his originals, right?

You are talking again from pure ignorance. I don’t “give up” copyright because the state makes it almost impossible. see http://blog.mises.org/9240/copyright-is-very-sticky/ But I do use Creative Commons licenses to try to minimize the harm the state does.

Even if I somehow get rid of my copyright or don’t enforce it, doesn’t mean that the patterns are “yours”–they are nobody’s. And no, copying is not theft. To say that it is, is an amateur/newb/dishonest attempt to beg the question.

(P.S. I am being facetious, and no matter how many silly arguments I see for stealing a person’s work, I would not do so.)

By calling it stealing you assume your premise: that it is property. IF it’s not property, there’s no “stealing”. So this is just a stupid or disingenuous attempt to sneak in your premise without providing any argument. Calling it stealing does not make it so. (If I “steal” your girlfriend does that mean she is your property? Wow, you can prove so much by language games!)

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More:

Comments (115) 

  • Kerem Tibuk

    I don’t understand what the big deal is.

    There will always be people who defend institutionalized theft and socialization of privately produced property, and there will always be people who will be against it. And if you look at history the people who fight for private property is always in smaller numbers.

    Published: December 27, 2009 1:31 AM

  • newson

    i don’t understand what the big deal is.

    there will always be people who defend institutionalized monopolies and socialization of the means to protect them, and there will always be people who will be against it. and if you look at history the people who fight for private property is always in smaller numbers.

    Published: December 27, 2009 1:54 AM

  • Jay Lakner

    Kerem Tibuk wrote:
    “There will always be people who defend institutionalized theft and socialization of privately produced property, and there will always be people who will be against it.”

    What a ridiculous statement!

    Apparently the phrase, “nobody owns it”, is exactly the same as the statement, “everybody owns it”.

    Who word of thought that “nobody” and “everybody” were synonyms?

    Published: December 27, 2009 2:09 AM

  • scott t

    of privately produced property

    maybe he means socialization as being something like krispy-kreme MUST give one doughnut to one person each day and they can sell a second one – although the doughnuts are privately produced?

    so it might not be so ridiculous

    Published: December 27, 2009 3:17 AM

  • scott t

    “The Objectivist approach is mired in a number of problems. It anchors property rights to the idea of “creation”; it requires legislation, and the state; it believes in some intrinsic value and some property right in value; it advocates utterly arbitrary and/or unprincipled, utilitarian finite lengths for IP; it rests on an arbitrary distinction between discovery and innovation.”

    from what i have read the libertarian-anarchist take differs in that any pattern control extends beyond ones physical patternized property is some type of property breach/tresspass/tyranny on anothers right to patternize their physical property?

    contracts are said to be able to govern action concerning acting on ip between contractees but not others.
    knowingly claiming pattern-ship over a pattern one did not pattern would be considered dishonest.

    it seems to make sense. is this correct in stating the anarchist/libertarian view on ip?

    Published: December 27, 2009 3:28 AM

  • Peter Surda

    I don’t understand what the big deal is.
    There will always be fundamentalists that are unable to argue logically and are limited to making up weird constructs to support their dogmas. Additionally, these constructs do not actually prove the dogmas, they merely allow for them as a possible conclusion.

    There will always be people like this. This is not the problem. The problem is when they want to use force to implement their fantasies.

    Published: December 27, 2009 3:37 AM

  • John Donohue

    Mr. Kinsella, are you still working as a patent attorney?

    Published: December 27, 2009 4:05 AM

  • John Donohue

    No, I would love to see YOU live in a world that truly implemented your fantasy: no government. Your IP obsession is only a subset of your anarchism. You have this pipe dream that civilization is possible without proper government and proper protection of intellectual property. It is dishonest. You never face the actual manifestation of your belief system: no businesses or corporations, no capitalism and no protection of individuals. Just gang violence and civil war. Basically….anarchy!

    Yes, I am imputing the pragmatic argument back onto you. You seem to have no end to energy for rationalizing anarchy, always on a floating island. You cannot show how this is in any way a practical political philosophy for man.

    Published: December 27, 2009 4:23 AM

  • newson

    let’s not confuse governance with government.

    Published: December 27, 2009 4:40 AM

  • newson

    small gangs wreak less havoc than big gangs.

    Published: December 27, 2009 4:46 AM

  • Seattle

    John, seriously? That’s the oldest argument against anarchy and it’s been thoroughly refuted more times than I can count. I’m even insulted you sunk so low as to try such a desperate argument.

    What’s worse, you say it as if we DO have capitalism and protection of the individual now! I have no idea what drugs you’re taking, but I want some.

    Published: December 27, 2009 4:55 AM

  • newson

    the crips can’t afford icbm’s.

    Published: December 27, 2009 4:56 AM

  • John Donohue

    It has not been refuted, only a whim in the anarchists’ fevered brain.

    It would be more honest for you people to admit that you are simply paranoid about Leviathan. That is an honest fear.

    When you expend this much energy on anti-IP and anti-government, it takes you off the playing field of worthy opponents of tyranny.

    The reason: anarchy is tyranny. You become the enemy.

    Published: December 27, 2009 5:19 AM

  • Russ

    John,

    One can be anti-IP without being an anarchist. You’re trying to “package deal” the two together, but it’s not necessary to be a anarchist to believe that IP is simply a legal fiction used to protect businesses that have a poor business plan.

    @Kerem Tibuk:

    I never got a chance to check out my previous post, regarding ownership of numbers, due to the holidays, so I’ll ask again now. Do you think it should be OK to copyright a number?

    Published: December 27, 2009 5:26 AM

  • jeffrey

    Great post, Stephan. Thanks. Another sector not subject to IP: recipes. You can copy them and distribute them. The web is stuffed with recipes sources. I marvel that 1) anyone publishes a recipe book at all and that 2) anyone publishes one today with everything online a million times over. And yet: this season, recipe books were the hottest sellers at B-a-M. The market at work!

    Published: December 27, 2009 5:37 AM

  • Fallon

    John Donahue,

    Before we ask which arrangement is more just or prosperous can we agree that the government you are talking about, a non-anarchic form, presupposes an a priori legal/political inequality between an individual not-in-government vs. an individual member in-the-government?

    Let’s not even assume to which side the imbalance tilts toward.

    Published: December 27, 2009 6:01 AM

  • Fallon

    John, sorry. Should read “John Donohue,”.

    Published: December 27, 2009 6:10 AM

  • Jay Lakner

    John Donohue,

    Do really think you’re going to achieve much by attacking Stephan Kinsella’s anti-IP position by bundling it with his anti-government position?

    If you truly think the anti-IP position is false, why don’t you demonstrate it by starting at fundamental assumptions and reason logically to sound conclusions?

    You have two ways forward:
    1. Demonstrating that Stephan’s assumptions and/or logical reasoning is false, or,
    2. Laying out your own position starting from fundamental assumptions and showing why the pro-IP position is the only logical conclusion.

    Most of the pro-IP crowd don’t ever do this. They make very generalised wishy-washy arguments filled with unsubstantiated statements, faulty definitions and unjustified implicit assumptions.
    (Kerem Tibuk is a rare exception to this. Even though I completely disagree with his position, I respect that he goes to the effort of laying it out)

    Published: December 27, 2009 7:08 AM

  • subzero

    When the author says that pretty much every libertarian is an anarchist, he is being an outright lier.

    Mises believed in a small state. So do Ron Paul, Peter Schiff, John Stossel. Would you not call any of these people libertarians? Ron Paul has a sizeable following of libertarians, and a good part of them, I’d say more than half, believe in a small state.

    Published: December 27, 2009 8:36 AM

  • Stephan KinsellaAuthor Profile Page

    Jeff, re recipes: good point. I’ll add it to the main post.

    Published: December 27, 2009 8:49 AM

  • Kerem Tibuk

    IP and anarchy are to separate issues but since Kinsella provokes Objectivist, they are bound to get tangled in these kinds of discussions. It helps the straw man arguments later on for Kinsella. After these arguments he can keep saying IP can not exist in a free stateless society, which obviously false.

    Published: December 27, 2009 8:51 AM

  • Kerem Tibuk

    “1. Demonstrating that Stephan’s assumptions and/or logical reasoning is false, or,
    2. Laying out your own position starting from fundamental assumptions and showing why the pro-IP position is the only logical conclusion.”

    This is not possible or fruitlful since Kinsellas IP theory is not part of any complete theory of property.

    I am claiming Kinsella can not write a complete theory of property as “Ethics of Liberty” and include the IP issue as a chapter. If he tried, IP chapter would be so divorced from the main theory, it would show what an arbitrary and positivist invention this IP socialism is.

    And I am not talking about fitting this anti IP stuff only within the Rothbardian property theory either. It can not be any part of any theory that supports private property rights in general.

    Published: December 27, 2009 9:00 AM

  • Kerem Tibuk

    Jay,

    “Apparently the phrase, “nobody owns it”, is exactly the same as the statement, “everybody owns it”.”

    Yes. Especially in the socialist framework. If you study socialism you will see that these phrases always are used interchangeably.

    Published: December 27, 2009 9:03 AM

  • Don

    We’ve been discussing this in the forum:

    http://mises.org/Community/forums/t/12960.aspx

    Published: December 27, 2009 9:07 AM

  • Luis Ramirez

    Not trying to derail the flow of the discussion…but, I highly recommend the movie: “Be kind, Rewind” (with Joe Black). It pretty much has the feel of why IP is unjust.

    Published: December 27, 2009 9:23 AM

  • Andrew

    @Kerem Tibuk:

    “Apparently the phrase, “nobody owns it”, is exactly the same as the statement, “everybody owns it”.”
    Yes. Especially in the socialist framework. If you study socialism you will see that these phrases always are used interchangeably.

    As the one who was raised in the Soviet Union I beg to differ. The socialist notion of (collective) property was very much about ownership. Ownership then served to justify “responsibility”: you were required to assist in upkeeping the property precisely because it was NOT “nobody’s” – it was YOURS AS WELL.

    Published: December 27, 2009 9:30 AM

  • Russ

    Kerem Tibuk

    “I am claiming Kinsella can not write a complete theory of property as “Ethics of Liberty” and include the IP issue as a chapter. If he tried, IP chapter would be so divorced from the main theory, it would show what an arbitrary and positivist invention this IP socialism is.”

    That’s funny. I believe that the anti-IP position flows quite naturally from a natural law based justification for property, such as Rothbard’s, which starts with the nature of material goods as scarce economic goods. That is why, to make a theory of IP that is not inconsistent with their property theory, pro-IPers have to start with a completely different theory of material property, such as the Randian idea that creation implies the right to ownership, or the idea of “extension of sovereignty”.

    Published: December 27, 2009 9:37 AM

  • Deefburger

    For me, there is no argument for IP.

    One of the most important natural laws is the law of uniqueness. This is the basic law that supports the notion of individuality and identity.

    If in such a universe as ours where every element is unique, where every element is having a unique experience of the whole, if our universe were to operate on the principals of IP, all time and action would cease, as there would be no possibility of anything but wholly unique experience, with no similarity and no reuse of any pattern. Human Being would have meaning for only one Human Being. Planet, star, moon, ocean etc. would be only one, the original.

    The universe has no State to grant such licence. The universe has no desire to have that kind of restriction on the possibilities of existence and the possibilities of Being.

    Quite the contrary. From the experiential perspective of a single Human mind, the experience of the Metaphysical, the Intellectual, is a non-physical space. This space is populated by objects that are real, but non-physical. We are aware of them as observations of thought and dreams. We cannot touch them, we can somehow manipulate them, choose them, sort them, re-arrange them, point others to them and they too can examine them, test them, re-arrange them, but none of us can delete them, remove their history, or banish them to the confines of a Metaphysical jar.

    But their being is clearly real. We measure all things against them. The number systems alone account for our ability to measure anything. Without the free and unencumbered access to these archetypal thought objects, knowledge as we know it, technology as we know it, indeed all complex thought as we know it would be impossible, and therefore non-existent.

    This area of space, this Meta-physical space, is within view of our minds and can be manipulated according to our will and intent, but cannot be deleted, we do not have that kind of access to the system. If I have not the ability to deny by deletion, deny by destruction, deny by any means that is Metaphysically permanent, then I do not have any “right” to do so by Physical reality declaration. Any attempt to own a portion of the Metaphysical is an attempt to control the uncontrollable.

    You can think up anything you want, all day long, every day of your life, and never once will you be able to delete a thought. Once created, the thought remains as an object within the larger space of the Metaphysical. The best you can do is to not observe it again yourself. You can not stop me from stumbling across it myself, or utilizing it.

    The Archetypes stand like statues in the thought-space. They are public constructs of thought objects. They are visible to all who direct their intent to see, and to all who wish to measure. No matter what edifice of intellectual reasoning you wish to build to support the notion of property ownership in the Metaphysical, you cannot create a thought, that can prevent observation, manipulation, and duplication.

    There is clearly a problem of control in the idea of IP. Let us bring it a little closer to physics. All of us can look up into the night sky and see the Moon and the Stars. Some have even begun to sell “rights” to these objects that everyone can see but no one can possess or control, or even reach. This is similar in scope to the notion of IP. Do we really believe for one moment that the “contract” granting exclusive “rights” to a star, named whatever you like, is just? If so, I would like to sell you a certificate of title to a crater on Mercury.

    A patent or copyright “contract” are no more valid or enforceable than the star registry. Worse, they are enforced against innocents. Metaphysical reality is as free and unencumbered as the vast expanses of Physical space, more so, for you can imprison a body, but you cannot imprison a mind.

    What if someday some one patents the gene that “makes” you Human? Will you then buy the License to have children? Will you have to buy the License to be considered legally Human? Will you have to rent your existence from the state or the Patent holder? These are not ridiculous notions if you assume that the Patent contracts and the Copyright contracts are valid, philosophically.
    More over, some of your genes, the pattern that made you from before your birth, are “owned” already. You have to pay the license holder for any drug used to affect it in your body.

    If anything is a birth right, it would be the gene sequence of my physical existence that I was given and is responsible for the pattern that is Me, and is the source of my Identity. A in my case is A because of the genes that make it so. Who has a right to deny me that? Who has the means? Want to buy a base-pair? I’ll throw it in with the crater on Mercury.

    Published: December 27, 2009 10:34 AM

  • Russ

    I don’t know about the metaphysical objections that Deefburger brought up, but I do think that it’s kinda silly to say that some individual has the exclusive rights to the use of a number! After all, that is all that any digital content file is; a number. It may be a rather large number, but nonetheless a file is just a positive integer in base 2 representation. How can somebody rightfully claim the exclusive right to control the use of a NUMBER? It’s just absurd!

    Published: December 27, 2009 10:44 AM

  • Jim FedakoAuthor Profile Page

    I attend a weekly Bible study. The man who runs the study also writes Bible study books, available on Amazon print-on-demand. And, get this, he uses some of our discussions as the basis for what is discussed in his books.

    A few weeks ago, I mentioned a point that caught his attention. He said something like, “Great example. I’ll use that in the future.”

    Oddly, no one in the Bible study even questioned his planned theft — the theft of my idea. Not one.

    Now, I know that if I search my emails long enough, I’ll find I had written down that very same example. I had committed the idea to paper, so to speak.

    Is it really only theft if, and only if, I can find the example on an email of mine? And, otherwise, my idea is homesteadable?

    Or is it the case that I still possess my idea, regardless of my friend’s future use of it?

    Someone may object: But you knew going into the study that the organizer may use any example you give.

    True. But that always is the case when I share an idea — someone else may use it, but I still possess it. A truly unscarce resource.

    Published: December 27, 2009 11:25 AM

  • Deefburger

    @Jim Fedako

    Indeed. The Metaphysical is available to all, always. Your idea did not get deleted from reality. It remains, and is there to share, always. You lose nothing in the sharing. In a very real sense it is like sharing a star.

    Your friend did not take it from you. You showed him the idea, and now he can see it too, whenever he wants. How he sees it, what it appears like to him, and how he uses it will depend upon him from now on. You have no control, nor do you have any real need to control. The “star in the sky” that your idea represents, is now a permanent fixture for anyone to view, as it should be.

    But he now has this idea incorporated into the other constructs that he is aware of. Just like you, reading this now, you are integrating the thoughts and ideas of my words into your own view of the Metaphysical. I have no control over this process, nor do I require any control, for the experience of thought that you are having right now is yours and your alone.

    Your observation of these ideas in no way affects my abilities to do with them as I please, nor does anything I think or write affect how you will or will not integrate them into your experience of thought.

    We exist within our own minds, but our minds are not isolated. We can observe the same ideas from our different perspectives without harming each other’s view in the least.

    Metaphysical Reality contains the Possibility for everything. That is a big collection of objects. Thought, even unique thought, occurs within the framework of possibility. Even the most complex and unique thought already existed as a possibility before any mind had any probability of discovering it. Finding a thought and sharing it’s existence with others increases that thought’s presence within the reality. It increases the gain to the system.

    Published: December 27, 2009 12:22 PM

  • Dennis Lee Wilson

    Butter gets thinner as it spreads, IDEAS GET THICKER!

    Ludwig von Mises’s view is that ideas are a free good, not subject to economic constraints.
    They are infinitely reproducible.

    Now THAT is an idea that is definitely getting thicker. Many thanks to Stephen Kinsella!!

    Published: December 27, 2009 1:08 PM

  • Anonymous

    What is truly ironic is that Rand’s system of Objectivism is itself built on the ideas of others, used without credit. Rand gave credit only to Aristotle and claimed that she formed the rest of her ideas herself, even though it is well documented that much of Objectivism came from Isabel Paterson and that the phrase “Who is John Galt?” was ripped off from Garet Garrett’s The Driver. It is truly ironic that the Randians are fanatical proponents of IP and that they accuse Rothbard of “plagiarism” (specifically, the Objectivists claim that the Rothbard-Rand split occurred because Rothbard supposedly “plagiarized” The Mantle of Science from Barbara Branden) when Rand herself “plagiarized” virtually all of Objectivism.

    Ayn Rand had valuable contributions to libertarianism by attempting to restore the classical liberal attitude of hostility to religious superstition and by attacking the altruist perversion of morality (Rand was particularly good at pointing out that Capitalism is incompatible with altruism). However, Rand had many crazy ideas, such as her ideas about IP and her foreign policy.

    I know from experience that people who believe in IP must inevitably feel the same type of guilt as religious believers (such as environmentalists or Christians) do when they “sin” against their faith (in all cases, this is inevitable as the “morality” advocated is impossible to follow).

    Published: December 27, 2009 4:35 PM

  • John Donohue

    “Do really think you’re going to achieve much by attacking Stephan Kinsella’s anti-IP position by bundling it with his anti-government position?”
    Yes. That is my game plan, I don’t mind it being out in the open. Mr. Kinsella is an anarchist*. That means, no ONE authority with the power to employ force in rectification of violation of individual rights, but many such authorities is okay. Who knows what he actually — actually — believes would devolve under this idea. Hundreds of thousands of police agencies rectifying thousands of interpretations of ‘individual rights?’ Regional authorities that magically do not step on each other’s toes? Remember, all of these “agencies” have police power. I have elsewhere pointed out that absent one ultimate authority, there is nothing stopping someone setting up a repressive system. Further, what would stop this thing from attempting monopoly? Well, I guess if you consider open civil war…if a coalition of non-greedy authorities defeat the one trying to become ascendant. But what if some of the coalition’s police forces are themselves slave states and the one they defeated was attempting to get ascendancy and was NOT a slave state….you see this is a valley of bad.

    Certainly some of the thousands of “authorities” would be anti-IP, right? Mr. Kinsella hopes. Well…(here goes the merry-go-round again) what happens when a pirate in an anti-IP locus steals from a business person in an IP-Protecting locus? Invasion? War?

    Mr. Kinsella (and apparently others) wish to decouple anti-IP from anarchism. I am rudely reminding you all what actual anarchism would look like (above). Why would the various jurisdictions (they are states so I’ll now call them that) go to war with each other? Frankly, protection of wealth on the ‘up’ side and greed for un-earned wealth on the ‘down’. Wealth cannot develop in anti-IP-Land (see obverse argument below), but that which makes the making of money possible, IP, can ‘legally’ be stolen in anti-IP-land. So the IP-states have wealth to deploy in protecting rights of its citizens, but the subsistence anti-IP states are impotent against invasion. Are anarchists sure they want to step into a world where a wealthy IP state is looking across the river at an impoverished anti-IP state harboring pirates that keep stealing from the IP state’s citizens?

    Here is the obverse, and an answer to another person above who claims one can be anti-IP and NOT anarchist. If anti-IP but not anarchist, then you have a government. One government. That government will be protecting the rights of the pirates when they steal logos, product names, secret processes, company names, advertising/branding, inventions, information, etc. In short it is open season on everything that makes commerce and capitalism feasible.

    There certainly is no capitalism under non-anarchy-but-no-IPRights. Subsistence farming? Barter?

    I also contend there would be no way an anti-IP state could last when people are free to start up a new IP state or migrate to one. Ask yourself which kind of people would choose an IP state and which ones an anti-IP state.

    So, let’s not kid ourselves. A country with no protection of intellectual property rights condemns its citizens to abject poverty or subsistence. Talk about Atlas Shrugging! If one goes further and declares anarchism on top of that, you lose control over splinter states who might wish to institute protection of IP. So you condemn the world to war.

    It is not honest to attempt to decouple anti-IP from anarchism. I will always challenge the idea that there can be a prosperous capitalist civilization if either anti-IP or anarchism is attempted. These two things go hand-in-hand and are both to be condemned.

    * If Mr. Kinsella claims he is not an anarchist I will make an appropriate retraction of this argument, depending.

    Published: December 27, 2009 5:38 PM

  • John Donohue

    Kerem Tibuk: “IP and anarchy are to separate issues but since Kinsella provokes Objectivist, they are bound to get tangled in these kinds of discussions. It helps the straw man arguments later on for Kinsella. After these arguments he can keep saying IP can not exist in a free stateless society, which obviously false.”

    I admit I don’t fully follow what you are saying here.

    My contention is that Mr. Kinsella and like minded should not be allowed to get away with de-coupling anti-IP and anarchism. My reasons are in the above post. If when attacking IP Mr. Kinsella is allowed to get away with an unchallenged assumption that we magically would still have a peaceful, prosperous proper anarchist civilization, even when IP protection is prohibited, he gets off the hook.

    Published: December 27, 2009 5:46 PM

  • John Donohue

    Fallon : “Before we ask which arrangement is more just or prosperous can we agree that the government you are talking about, a non-anarchic form, presupposes an a priori legal/political inequality between an individual not-in-government vs. an individual member in-the-government? Let’s not even assume to which side the imbalance tilts toward.”

    Mr. Kinsella has begun this thread specifically with Objectivism in the subject. I am an Objectivist and would not claim that if I had not vetted her politics for myself. Therefore, you can make the assumption should be I am talking about the political philosophy of Ayn Rand.

    However you may or may not be aware of Rand’s politics, so go ahead with whatever you wish to ask. However…As to whether this politics “presupposes an a priori legal/political inequality between an individual not-in-government vs. an individual member in-the-government?” is not completely clear to me. I am not evading your question; I just don’t want to respond to something you did not actually mean. Can you say your question again in another way?

    Published: December 27, 2009 6:03 PM

  • Stephan KinsellaAuthor Profile Page

    Donohue has a variety of confused comments. Let me try to cut through his confusion. First, of course I’m an anarchist. A brief glance at my site or any familiarity with my views would tell you this. Second, I do think that IP implies legislation and the state, which means anarchist-libertarians have yet another reason to oppose IP. But this does not mean only anarchists have a reason to oppose IP. Minarchist libertarians have a host of other reasons to oppose IP.

    Published: December 27, 2009 6:30 PM

  • Bala

    John Donohue,

    It would be really good if you could show us an inductive derivation of the validity of treating ideas and patterns as “property” starting from first principles (axioms). It will help a lot in understanding the Objectivist position.

    That apart, your attempt to bundle Stephan’s anti-IP position and his support for anarchy makes your replies equivalent to “He is immoral. Hence his arguments are invalid.”. Rand had something to say on that kind of argumentation. Just check it out.

    Published: December 27, 2009 6:57 PM

  • Bala

    John Donohue,

    ” I am an Objectivist …… ”

    Says who???? Someone once mentioned (on these threads to refute my arguments) that Rand had said that Objectivism is her personal philosophy and that everyone else should call themselves “students of Objectivism”. Just wondering…..

    OK. I shall not be as mean as you were. I shall also indicate the way by which you may free yourself from the burden of that question – Redeem yourself by responding to the request I placed in my other post (the inductive derivation bit) and convince us that you are an Objectivist who understands Objectivism.

    Published: December 27, 2009 7:03 PM

  • Bala

    Kerem Tibuk,

    There are still a number of questions that you haven’t yet answered or should I say charges that you haven’t addressed against the basis of your support for IP. (Refer our previous discussion on the blog “Have you changed your mind about Intellectual Property?”)

    Published: December 27, 2009 7:44 PM

  • John Donohue

    Sorry Bala, you must be dizzy. It was I that proved that YOU are not an Objectivist in your dishonestly-labeled thread “An Objectivist Recants IP.” In fact I proved you were neither an Objectivist nor a capitalist.

    Published: December 27, 2009 8:28 PM

  • John Donohue

    Stephan Kinsella:
    Accepted, stipulation you are an anarchist, no problem.

    As to cutting through my imagined confusion, the remainder of your paragraph was addressed to some other person or group, had nothing to do with my argument above or Objectivism.

    Published: December 27, 2009 8:33 PM

  • Bala

    John Donohue,

    ” It was I that proved that YOU are not an Objectivist in your dishonestly-labeled thread “An Objectivist Recants IP.” In fact I proved you were neither an Objectivist nor a capitalist. ”

    Proved???? Where are the arguments? Insinuations without arguments do not constitute proof. Continue to live in your fun house (I should thank mpolzkill for adding to my vocabulary).

    Published: December 27, 2009 9:09 PM

  • Jay Lakner

    John Donohue,

    Your speculation (and speculation is all is was) as to what would happen in an anarchist society contains so many flaws I don’t know even where to begin.

    Maybe I should point out your use of the words “state” and “greed”.

    Firstly, there are no “states” in an anarchist society. This very fact invalidates most of what you wrote.

    Secondly, “greed” is an innate characteristic of every individual. Every human aims to maximise their satisfaction. This is a fact. Everybody is “greedy”. Anarchy is the perfect form of society to utilise this human attribute because individuals can only maximise their wealth by satisfying the desires of others. A state is a terrible form of society because it works against human nature. It sets up a system where wealth can be attained by political means, such as wealth distribution, which lowers the satisfaction of others.

    Lastly, I’d like to point out some other general faults in your thinking. You haven’t seemed to grasp the concept of how private protection agencies would compete with each other. Also, you have failed to realise that private arbitration firms would be independent of protection agencies. And you have failed to recognise the role of insurance companies in all this.

    Overall, your speculative conclusions are based on false assumptions, insufficient attention to important factors and illogical reasoning skills.

    I should remind you of what I wrote in my first post to you in this thread: “[pro-IP people] make very generalised wishy-washy arguments filled with unsubstantiated statements, faulty definitions and unjustified implicit assumptions”. Your reply to me simply proved my point!

    Published: December 27, 2009 9:22 PM

  • Bala

    Stephan,

    ” Donohue has a variety of confused comments …… Minarchist libertarians have a host of other reasons to oppose IP. ”

    I am forced to ask the questions “What is your target segment?” and “What is the purpose of writing all these articles against IP?”. It appears as though you are preaching to the choir (no offence intended). IMO, it would help if your arguments were less “libertarian”. I doubt if you can get others to understand what you are saying unless you show them one of the following two

    1. That their conclusions are wrong because their premises are
    2. Their premises are OK but their conclusions do not derive from their own premises

    Further, with Objectivists, I think you would be better off adopting 2 over 1.

    As I understand it, your arguments are sounding like “Your conclusions are wrong because they don’t agree with these (my) premises”.

    Published: December 27, 2009 9:32 PM

  • Jay Lakner

    Bala,

    Doesn’t the entire IP debate simply boil down to the definition of “property”?

    It is the Objectivist definition of “property” that is wrong. Therefore, the only logical way to make progress is to show them the inconsistency of their premises.

    Once an Objectivist realises that “ownership” can only exist in the context of multiple cooperating humans in an environment of scarce resources, the anti-IP position naturally follows.

    I see this as the challenge.

    I cannot see how pretending their premises are correct can help the situation … except to show that the ultimate conclusion of logically reasoning with their premises leads to contradictions. But I would consider that a method of dispoving their premises.

    Published: December 27, 2009 9:50 PM

  • Bala

    Jay,

    ” It is the Objectivist definition of “property” that is wrong. ”

    As I understand it, the definition of “property” is not a premise but a conclusion that serves as a premise for other purposes.

    ” I cannot see how pretending their premises are correct can help the situation ”

    There will be no pretense as Stephan agrees with the 4 basic premises of Objectivism and has stated so on these comment threads. His difference stems from a deep disagreement on the subsequent definition of property.

    Published: December 27, 2009 9:54 PM

  • Jay Lakner

    Thanks for clearing that up Bala. But I am curious, how do objectivists come to their definition of property from their premises? I have never seen a line of logical reasoning that links Objectivist premises to a definition of property.

    Published: December 27, 2009 10:05 PM

  • John Donohue

    For the record: I definitely proved Bala is not an Objectist. I won’t repeat it. That is, unless he continues to insist he IS an Objectivist.

    Published: December 27, 2009 10:40 PM

  • Jay Lakner

    The way I see it, the concept of “property” is a direct consequence of the action axiom.

    Given the following:
    1) The action axiom is true.
    2) Multiple human beings exist.
    3) These humans require scarce resources to satisfy their desires.

    Then there must follow two possible scenarios:
    A. The satisfaction of these humans will be lowered by cooperation. This must lead to violence and war.
    B. The satisfaction of these humans will be increased by cooperation. This must lead to a system where resources are shared out. “Property” emerges.

    I want to know why Objectivists don’t see things this way. Is there an another logically-consistent way of arriving at the concept of “property”?

    Published: December 27, 2009 10:41 PM

  • John Donohue

    Jay Lakner

    a “private protection agency” with unchallenged power, authority, weapons and justification to arrest, detain, judge and punish a citizen AGAINST HIS CONSENT is a state. It is a government. Just because you call it a private police force or whatever does not change this.

    However, I will stand corrected to my shame if you tell me your private protection agencies do not have police power.

    “Anarchy is the perfect form of society to utilize this human attribute because individuals can only maximize their wealth by satisfying the desires of others.”
    This is nuts. There is nothing in anarchy, no ultimate power, to protect the citizens from the emergence of a private protection agency that initiates force to take over wealth because of greed.

    You can’t get to your arbitration, insurance and fair competition. Not under anarchy, and ESPECIALLY if in addition IP is verboten. It is impractical.

    You did not address my non-wishy-washy arguments, so your reply to me just proves that you have no answer to it.

    Published: December 27, 2009 10:51 PM

  • Bala

    John Donohue,

    ” I won’t repeat it. That is, unless he continues to insist he IS an Objectivist. ”

    Thanks for the clear message. Now, I insist that I continue to be an Objectivist. So, in keeping with your solemn word (I presume you are a man of your word), please repeat your arguments.

    Published: December 27, 2009 11:30 PM

  • Jay Lakner

    John Donohue,

    I cannot speak for other anarchists, but I propose that there will virtually always be competition. In rare cases one agency may do such an incredibly brilliant job that all others go bankrupt, but this will be a temporary situation because large businesses are always less efficient and more resistant to change than small ones. All monopolies eventually break down.

    Will it ultimately turn out that all anarchic societies eventually become minimalist states? Possibly. I can’t prove it one way or the other but I am always actively seeking new insights on this matter.

    Unlike yourself, I am not going to pretend to know things I do not know.

    As for your non-wishy-washy arguments, I didn’t see any. Unfortunately your post was a mish-mash of different ideas combined with false and unsubstantiated premises. It’s very hard to determine which of your arguments have merit and which do not.
    I request that you lay out your arguments against anarchy, point by point, so I can address each one individually. If you take me up on this request, please make sure each point is clear and concise.

    Published: December 28, 2009 12:01 AM

  • Alexander

    “Just gang violence and civil war. Basically….anarchy!”

    “Basically”, go read up on anarchism, John Donohue. Now.

    PS:

    You mises.org guys have lots of patience. So much typing energy/time spent trying to educate an ignorant-yet-pretentious troll. I’m impressed!.

    Published: December 28, 2009 12:20 AM

  • John Donohue

    I am aware of the bizarre imaginings of “anarchists.” I don’t need to read up. They can never exist in reality, therefore they are void.

    I am not a troll in a thread that specifically calls out Objectivism. It is I who am patient. Most Objectivists would not give this thing the time of day.

    Mostly I do it in memory of von Mises. And for any actual Objectivist or student of Objectivism who walks in here seeking the value that von Mises once stood for and gets confused by the thinking of the current squatters.

    Published: December 28, 2009 12:36 AM

  • John Donohue

    Bala proven to not be an Objectivist

    http://www.dianahsieh.com/blog/2009/12/objectivist-recants-on-ip.shtml

    posts 134, 136, 137 and on.

    QED

    Published: December 28, 2009 12:40 AM

  • John Donohue

    Jay Lakner:

    Don’t lecture me about clear and precise, your response is mashed potatoes to what I actually already clearly demonstrated.

    Let’s take on point at a time if you must, if I have the patience.

    1) Please confirm or deny or edify: do the “private policing agencies” have coercive control over a given geographical area? To say it again in another way: can the agency arrest, detain, judge, incarcerate, fine, expatriate a person against his will?

    Published: December 28, 2009 12:50 AM

  • Jay Lakner

    John Donohue wrote:
    “1) Please confirm or deny or edify: do the “private policing agencies” have coercive control over a given geographical area? To say it again in another way: can the agency arrest, detain, judge, incarcerate, fine, expatriate a person against his will?”

    No.

    They cannot judge, incarcerate, fine or expatriate people.

    They do not have coercive control over a given geographical region. Many different protection agencies will compete within the same geographical area.

    Private protection agencies only have a few limited functions:
    – Direct intervention when a client’s property is being violated. (This includes the client’s body as well)
    – Investigation of crimes committed against their client. (Although this may overlap with an insurance company’s role, if the insurance company itself is not a protection agency)
    – Arrest and detainment of criminal offenders, in cooperation with the offender’s protection agency.

    If a protection agency wrongfully arrests and/or detains someone, they are then liable to the protection agency of that person.

    If, in the course of investigation, a private protection agency violates someone’s property rights (for example, trespass), they may need to demonstrate that this violation was justified.

    Published: December 28, 2009 1:46 AM

  • Seattle

    Donohue, allow me to remind you that not every anarchist agrees with the “Private Defense Agency” vision of a “stateless” society. Personally I think the idea is so prevalent because of a lack of creativity: I’d certainly hope our children can think of a better way to maintain order in society without having armed patrols in the streets, no matter whose payroll they’re on. Of course every non-anarchist demanding to see the anarchist “solution” to social problems doesn’t help, and is probably what lead to such a rushed abomination of an idea.

    But this is irrelevant; You made it clear long ago you have no interest in actual discussion and your only desire is to cause trouble.

    Published: December 28, 2009 1:56 AM

  • Fallon

    John Donohue,

    Your belief in a one power from which society will arise is utopian and especially compared to much of anarcho-capitalist thought.

    This gets back to my original question about inequality. Not everyone will be in that entity you invest ultimate authority in. Who do you think such an authority will tend to favor and at whose expense?

    Why is it that, under your form of government, people who are members of government can act in such a way that would be deemed criminal for ordinary citizens? How does taxation- forced expropriation- square with Objectivism?

    On top of it all, the authority you wish to support gets to be final arbiter in disputes that it itself is a primary disputant in. How does this government scheme of yours answer the ages old question “Quis custodiet ipsos custodes?” (Who will guard the guards themselves?)

    It can’t satisfactorily because it is shackled by Hobbesianism. You are willing to have seats of the government be up for grabs- but you never question the existence of the government itself? It will live forever….like the Right Objectivism you embrace.

    When things cannot be held in market competition that leaves on balance Darwinistic competition, predator vs. prey relationships- between human beings! That is what is implied in your presumption of government outside personal sovereignty.

    Market competition is the only way to increase the probability that no dominant entity arises permanently. Even the ideological belief in personal sovereignty and in property rights is left open to challenge- even though civilization depends on its continuity.

    You already know that property rights incentivize cooperation. Why not extend the idea to eclipse government by political (coercive) means? Under a propertarian regime organizations will arise that exert influence and mitigate anti-civil elements still. There are no guarantees that civilization will not revert back to your current idea or worse though.

    Your scheme necessarily introduces a less-than-efficient price mechanism, at the very least. When the monopoly system expands to become de facto owner of all things the price mechanism is destroyed and the peaceful expansion of the division of labor ceases. You seek the middle ground but there is not one. I am sure you have read Mises on middle of the road policy and you know where it leads. I am placing government at the new middle.

    With this in mind I then ask why it is that for all the anti-Bolshevism government Randians claim why do they give the process down that road a head start?

    Of course, Objectivism tells you that your kind of monopoly government could never devolve into totalitarianism. What I am saying is that whatever sphere coercive government occupies is totalitarian. What else can be expected but privilege, status and producing the least quantity and quality for the most cost, from an institution resting on that inequality I mentioned?

    The state is the highest form of master-slave relationship yet invented by man. And you support it.

    Finally, I say you needn’t cling to what you believe is the proper Objectivism and honoring of Mises. Remember that Mises sought to improve on his heroes. He rejected Ricardo’s labor theory of value but completely embraced and expanded upon comparative advantage.

    Likewise, the Tannehill’s incorporated much Randian thought into The Market for Liberty. The dynamic Stefan Molyneux has as well. Both are anarchists.

    Is this all mere blasphemy?

    Published: December 28, 2009 2:22 AM

  • Bala

    John Donohue,

    You are fundamentally mistaking strongly worded accusations and insinuations for proof. A casual reading of that thread would reveal that you never once went through the following process.

    1. This is the definition of an Objectivist
    2. This is what Bala is
    3. Hence Bala is not an Objectivist

    You are suffering from an exaggerated assessment of the worth and substance of your arguments. Please revisit them and come up with something better.

    Published: December 28, 2009 2:34 AM

  • Jay Lakner

    Seattle,

    I disagree with the assumption that the existence of private defense agencies means there would be armed patrols in the streets. I never said anything about armed patrols. Where did you get this idea from? I certainly don’t envision armed patrols.

    But I do completely I agree that we really have no idea how a free society will meet its protection requirements.

    Donohue seems to believe, with absolute and complete certainty, that anarchy is ‘fundamentally flawed’. By showing him a way that anarchy can work (even if it’s way off), I am hoping to remove some of his certainty.

    It’s a small step, but better than no step at all.

    Published: December 28, 2009 2:46 AM

  • overtheedge

    For property to exist, labor is the activity that will secure it in the first place. This can be by homesteading, hunting, harvesting, mining and manufacturing of the raw materials secured by labor.

    Each person must either go through this process or secure it by trading labor or labor credits secured by expending the labor in pursuit of something desired.

    In every case manufactured goods are limitted in quantity. This limitation exists by virtue of hours of labor expended. This limits labor credits to secure another laborer to manufacture for you. Profits are limitted.

    To secure additional laborers and the requisite raw materials requires labor credits. The facilities, tools and design are supplied by the owner. Each laborer is renting the tools and raw materials for which the owner gains profit. Again, a limit is reached due to service area.

    Any additional increase in the business requires additional labor credits. The can only be secured by selling a portion of the business or getting a loan from other people. This will demand some logical reason to trust your ability to pay the labor credit back plus interest.

    If anyone can make the item, why would anyone loan you labor credits. Nothing stops the hired laborer from walking away with the design. If said laborer was frugal with their labor credits, they could secure the tools and materials to become a competitor.

    Limitted IP rights fulfill the need of security for the investor to loan the labor credits.

    The other option is a return to feudalism. If your product meets the Lord’s need, he might grant you monopoly rights as well as forced labor and seized raw materials.

    Philosophical arguments will never alter human nature. Utility at least understands human nature.

    Virtually every system of governance has been tried. They all worked after a fashion. Anarchy existed toward the tail end of the French Revolution. It didn’t work. IP has been respected for centuries. It works BUT it has been expanded too far in encompassing the not-so unique product and the duration.

    The Constitution is quite clear. Limitted Times is NOT renewable, 99 years or 17 years. Limitted means limitted.

    Published: December 28, 2009 3:02 AM

  • Bala

    Jay Lakner,

    ” I have never seen a line of logical reasoning that links Objectivist premises to a definition of property. ”

    Neither have I. My reading of Ayn Rand gave me an idea, in scattered bits, of what she meant by “property”. However, I did not come across a comprehensive theory of property.

    I would be happy if someone who claims that he is a real Objectivist (Like John Donohue out here) would direct me to readings that constitute an Objectivist theory of property.

    Published: December 28, 2009 3:11 AM

  • Bala

    Jay Lakner,

    This is what I meant when I said “scattered bits”

    http://aynrandlexicon.com/lexicon/property_rights.html
    http://aynrandlexicon.com/lexicon/patents_and_copyrights.html

    The more closely I look at it, the more convinced I am that it is incomplete because it lacks a proper definition.

    Objectivists typically claim that their proof is inductive starting from sound axioms (like “Existence exists”) using a process of reasoning. I am however waiting for an Objectivist who would provide an inductive justification for treating ideas and patterns as “property” or maybe even a general Objectivist Theory of Property.

    Published: December 28, 2009 3:24 AM

  • Peter Surda

    @Jay & Bala:
    I have not heard a reasonable property definition from IP proponents yet. In my opinion, the definition should have absolutely obvious demarcation rules, because that is the function of property. Without the ability to make a clear distinction between what is one’s property and what isn’t, the definition is useless.

    I agree with Bala that it is more fruitful to show the IP proponents that their own premises lead to contradictions or nonsense. That’s what I’ve been trying to do. Unfortunately, it usually ends by being ignored or is addressed with the Chewbacca defence.

    Published: December 28, 2009 4:34 AM

  • Russ

    John Donohue wrote:

    “Here is the obverse, and an answer to another person above who claims one can be anti-IP and NOT anarchist. If anti-IP but not anarchist, then you have a government. One government. That government will be protecting the rights of the pirates when they steal logos, product names, secret processes, company names, advertising/branding, inventions, information, etc. In short it is open season on everything that makes commerce and capitalism feasible.”

    You are a master of the “package deal” fallacy, apparently. Or at least you’re setting up an overly simplistic straw-man, and then knocking it down. In anti-IP-Land, stealing of “secret processes” would still be illegal, if that involves breaking into somebody’s property, of course. As for company names and branding, copying somebody else’s company logo or whatever would constitute fraud.

    As for “inventions”, patents would not exist, of course, but that would not make capitalism unfeasible. You’d just have to be more competitive in manufacturing, to make up for the lack of an artificial monopoly.

    Published: December 28, 2009 7:20 AM

  • Deefburger

    I’m an Objectivist who is IP reformed.

    Property, at least in my version of Objectivism has these requirements.

    Observability
    Manipulation
    Control

    The first is supported by it’s existence, and the Owners ability to see and recognize it. He must be able to measure it in some way.

    Manipulation requires that the owner be able to utilize it, or change it in some way.

    Control requires that the owner be able to secure it in some way. Control is the ability to prevent trespass.

    If all three of these premises can, in reality, be met, then you can begin to talk about it as Property.

    Ideas do not meet the requirements of Control. There is no way to fence them, place markers on them, contain them or warn of impending trespass. You can’t put a guard dog on your intellectual property to warn off would be thieves.

    You do not have control of the metaphysical. You have Observability, you have Manipulation, but you do not have Control.

    I see another area of difficulty as well. Ideas in and of themselves are never at issue in the IP arena. It is always the means by which they are transmitted to others via a physical medium. It is in the physicality of the transmission that the requirement of Control is met. But the medium of transmission is not the idea, it is the carrier medium of the Logo.

    Now you have two separate issues of property,

    1) the idea itself which is metaphysical and only meets the first two requirements, and

    2) the transmission medium which is physical and meets all three requirements.

    Let me define the transmission medium: Anything physical that can transmit enough information about a metaphysical object that the metaphysical object can be observed by the recipient.

    A piece of paper with words on it is a transmission medium. The metaphysical portion is the meaning of the words.

    So here is where we have difficulty in understanding the IP argument. Any product you produce utilizing your idea becomes, by default, a transmission medium.

    The idea of what you made and the thing you made are two different objects, with very different properties. The thing you made is physical, and therefore a Property (Big P for own-able thing). The idea of it, is now multiplied and will continue to multiply as more and more minds observe the transmission medium. This cannot be stopped, and can only be prevented by not creating the transmission medium in the first place!

    How is the transmission medium related to the idea? It is not the idea, but a patterning similar to the actual thought. We never make something exactly “perfect”. We get close enough. So if the transmission medium is never a perfect representation of the idea, then what part of the idea does it actually contain? Has the creation of the transmission medium captured some of the idea within it? No. It is an inexact copy. The original idea is still where it was in the first place, metaphysical reality.

    What the transmission medium accomplishes is the transmission of enough information that the receiver, the Observer of the medium, can locate the idea, can “find” it within the metaphysical space of mind. This happens even if the purpose of the medium is an end in itself, such as a painting, a moon rocket, a bridge or a bow and arrow.

    The perfect version of Atlas Shrugged never left Ayn Rand’s head.

    Published: December 28, 2009 11:34 AM

  • John Donohue

    well, you know what?

    There is an old joke, a one-liner that is appropriate here. It’s a parody of an Old Left slogan.

    “Anarchists, Unite!”

    Obviously there is no one idea of “a way the world would work under anarchism”; there are multitudinous ways.

    And I am not just talking about the fine points of differentiation. I am talking about truly fundamental differences. Essential differences. For instance, some of you seem to think the private police agencies can arrest someone against his will and some think they can’t. Some (seem) to think these agencies themselves are too much. I believe Mr. Kinsella is on record as saying “his” private agencies would indeed have arresting, incarceration powers. I will of course retract that if inaccurate. None of you can say how the rise of the petty tyrant (once called a ‘private police agency’) would actually be prevented.

    At least when Objectivists discuss proper government (that’s the phrase we use) we all agree on the deep essentials; it is only on details that we have creative differences. It is a normative science: “What is the proper political system for man qua man.”

    Here is why: Objectivism is an actual philosophy. One of its branches, politics, rests on Rand’s Primacy of Existence Metaphysics and a formal epistemology. Therefore, the organizing concepts of the politics can be traced back to these roots.

    So be it. The anarchism of anarchism prevents me from probing the validity of anarchism as a proactive political science, because it is not one; it is an amalgam or loose coalition of positions, not actually proactive of a metaphysical base. I honestly can’t even say what the positive organizing principle is. I know if I offer a possible proactive organizing principle you guys are very likely to jump all over it and claim “that’s not what anarchism means.”

    At best, it is probably safe to say all Anarchists Are United by a negative: they are “against the State” by which they mean the Rothbardian Leviathan. But just as atheism is not a “something”, it only says the belief system does not mention God, so anarchism is not a “something”; it is only against Big Brother.

    Absent an actual political philosophy, arguments “against protection of intellectual property” are meaningless.

    Last: there is an ultimate pathos about anarchism. It can never come about. Absent a proper government, and at the occasion (for a moment in time) of “no government”, there is zero chance that the “no government” status will obtain. Given the options of no government and totalitarianism, no government pathetically stands zero chance. Absent proper government, the boot of Attila will march. Therefore, Mr. Kinsella’s discussion of “Intellectual Property Should Not Be Protected”, given that he is an anarchist, are just dust in the wind.

    Published: December 28, 2009 1:01 PM

  • John Donohue

    Bala is not an Objectivist. The proof is in the link I provided. God only knows what cracked motivation he has for the posturing that he is.

    Published: December 28, 2009 1:04 PM

  • John Donohue

    Jay Lakner i appreciate your post which detailed your position.

    I think your described arrangement, which is congruent with others I have heard and read over time, does not hold together, that parts of it contradict other parts. Be that as it may, someday you and others would hope to get a chance to try it out.

    I am declining to discuss further, simply because I prefer to argue essentials, not implementation details. While I asked you to clarify that one point, and I appreciate you doing so, your answer and the ‘general noise’ of this room indicates going further is of no purpose. You and I do not share the root belief, so we would be speaking past each other.

    Published: December 28, 2009 1:23 PM

  • Seattle

    Donohue, for the rest of eternity you shall be known as “Mr. Meatcake.”

    Mr. Meatcake, it’s not a very good idea to call yourself, or anyone else, an “anarchist.” Problem is there’s no single idea which all people who call themselves “anarchists” happen to hold. If you’re willing to be a little liberal with definitions, you can make a legitimate case that anyone is an anarchist.

    Furthermore, you seem to be suggesting that this disconnect weakens the arguments of everyone under the flag of “anarchism.” In the future, please discuss the consistency and merit of actual ideas rather than keep up these childish games.

    Published: December 28, 2009 1:35 PM

  • PirateRothbard

    I would say John Donohue is an anarcho-capitalist and he doesn’t realize it. A pro-IP anarcho-capitalist like Rothbard.

    Consider this: suppose John Donohue encountered a city where multiple security companies were acting effectively to provide security. Th question: does Donohue feel he would be justified in forcing these groups to adopt a “government”.

    If he says yes, he believes in coercion. But Donohue has said before that he doesn’t believe in coercion.

    If he says no, he is an anarcho-capitalist.

    If he says it is irrelevant because that kind of city would never exist, then he is admitting that issue of multiple security industries is a moot point, since the market would demand security industries with geographic dominance that would be indistinguishable from his Objectivist state.

    Published: December 28, 2009 2:46 PM

  • Bala

    John Donohue,

    ” Absent an actual political philosophy, arguments “against protection of intellectual property” are meaningless. ”

    Absent an actual theory of property that outlines what may be called “property” and why, thus clearly establishing that labelling ideas & patterns as “property” is moral, arguments for protection of intellectual “property” are equally meaningless.

    Your persistence in discussing the validity (or the lack of it) of anarchism on a thread pertaining to “Intellectual Property” is interesting and reveals the total lack of arguments as well as the intent to engage in them.

    ” Bala is not an Objectivist. The proof is in the link I provided. ”

    I still wonder how that is proof. There is no argument from fundamentals (from your side) as on this thread. Only tall claims with a lot of bluster and posturing. Does that indicate your general approach to discussion? I guess it does.

    ” Therefore, Mr. Kinsella’s discussion of “Intellectual Property Should Not Be Protected”, given that he is an anarchist, are just dust in the wind. ”

    Here’s what Rand had to say in “The Argument from Intimidation” (The Virtue of Selfishness, Centennial Edition, pp 162).

    ‘The ad hominem fallacy consists of attempting to refute an argument by impeaching the character of its proponent. Example: Candidate X is immoral, therefore his argument is false.’

    Assuming that you think “anarchy” is an immoral choice, I guess we understand where that leaves you and your “argument”.

    Frankly, in the time that you took to type out this outburst, you could just as well have typed out the inductive derivation of the validity of IP starting from fundamental principles. You would have had a realistic chance of proving your point. Why aren’t you doing so and why are you choosing the ad hominem fallacy? An introspection is likely to hold the following possibilities.

    1. You do not have an idea of the inductive proof
    2. You understand the inductive proof but are scared to put it up out of fear it would be ripped apart and your fun house blown to smithereens

    I think it is more likely the latter than the former.

    Published: December 28, 2009 3:13 PM

  • John Donohue

    Pirate Rothbard: in your city in question, are the three security forces all strictly voluntary compliance? Or do they have force power, such as the practice of arresting, detailing, jailing, trying, finining and extradicting people against their will?

    Published: December 28, 2009 3:49 PM

  • John Donohue

    this is not about “geographic dominance”. I am asking you if the agency or agencies use coercion in the executing of its mission.

    Published: December 28, 2009 3:52 PM

  • PirateRothbard

    John,

    Before going into my example, I think I’ve found a better way to put it.

    Anarcho-capitalism is simply a philosophy where coercion is prohibited. You’ve said that Objectivism forbids coercion. Therefore I see the too philosophies as the same. You are just a pro-IP anarcho-capitalist.

    You seem to go on an on about how multiple security agencies enacting punishment in a geographic area won’t work.

    But anarcho-capitalism does not have a moral imperative that multiple security industries exist within a geographic entity. We believe such a society would society would be moral if it were sustainable, but if it isn’t sustainable it won’t exist.

    It could be that a company will only have customers within a certain geographic area and thus be indistinguishable from an Objectivist non-coercive state. The company would negotiate with all its customers on the outskirts of the geographic area to give it the power to enforce its borders so that anyone coming in to visit would agree to follow the rules of the security industry.

    Anarcho-capitalism and Objectivism use very different terminology and I feel this creates a lot of confusion.

    Published: December 28, 2009 4:40 PM

  • Jesse Forgione

    I just want to point out that John Donohue actually typed out the following, presumably with a strait face:

    “I have elsewhere pointed out that absent one ultimate authority, there is nothing stopping someone setting up a repressive system. Further, what would stop this thing from attempting monopoly?”

    Published: December 28, 2009 6:09 PM

  • Nick

    I can’t speak for Stephan but I think he explained it very well…

    To be an anarchist only means that you believe that aggression is not justified, and that states necessarily employ aggression. And, therefore, that states, and the aggression they necessarily employ, are unjustified. It’s quite simple, really. It’s an ethical view, so no surprise it confuses utilitarians.Accordingly, anyone who is not an anarchist must maintain either: (a) aggression is justified; or (b) states (in particular, minimal states) do not necessarily employ aggression.

    Published: December 28, 2009 7:48 PM

  • Bob Kaercher

    Amidst all of Donohue’s fuming about the supposed evils of anarchism, he hasn’t once explained by what principle of justice do re-arrangers of scarce resources have the right to control by force the property of others, something every IP proponent has to answer in order to be taken seriously in the first place. Their consistent failure to resolve this moral dilemma is one of the big reasons they’re so on the ropes these days.

    Published: December 29, 2009 12:07 AM

  • Bala

    Bob Kaercher,

    ” he hasn’t once explained by what principle of justice do re-arrangers of scarce resources have the right to control by force the property of others ”

    John Donohue and other Objectivist IP proponennts will deny this charge because according to them,

    1. there is no rearrangement of property rights as you claim

    2. that defining property rights based on “scarcity” reflects a poor epistemology

    3. that the inability to see intellectual property as a distinct category of legitimate property reflects a concrete-bound mentality and

    4. that the so-called rearrangement of property rights is nothing more than the enforcement of legitimate property rights that they cal IP rights

    In effect, they would consider your question as not worthy of an answer and an attempt to escape addressing the legitimacy of IP using false arguments. Your question is, to them, very “libertarian” and does not address the moral issues that the Objectivist sees as being at the heart of the IP debate.

    In effect, they consider IP opponents as enemies of Capitalism because they do want to bring about a system in which “legitimate” property rights will not be secured and which would hence be a monstrosity in the name of Capitalism.

    I’m therefore not surprised that John Donohue is fuming.

    The better, or rather the only way of taking them on is to show that there is no inductive validation, starting from Objectivist axioms, for treating ideas & patterns as property. In other words, you are better off showing that IP is immoral in the Objectivist framework itself.

    Published: December 29, 2009 3:48 AM

  • Russ

    Bob Kaercher wrote:

    “Amidst all of Donohue’s fuming about the supposed evils of anarchism, he hasn’t once explained by what principle of justice do re-arrangers of scarce resources have the right to control by force the property of others…”

    All property rights are predicated on controlling what others can do with their property. If you are against IP for this reason, you must logically be against property for this reason as well.

    Published: December 29, 2009 5:48 AM

  • Jesse Forgione

    “Just as in the material realm the plundering of a country’s wealth is accomplished by inflating the currency — so today one may witness the process of inflation being applied to the realm of rights. The process entails such a growth of newly promulgated “rights” that people do not notice the fact that the meaning of the concept is being reversed. Just as bad money drives out good money, so these “printing-press rights” negate authentic rights.” –Ayn Rand

    Whether it’s a “right to a job,” a “right not to be offended,” or a “right not to be copied,” made-up rights are always a violation of real property rights. The opponents of IP are not making the pragmatic argument that they may steal the property of others so long as it’s not physical property. They are explaining (mostly to deaf ears) that the concept of non-physical property negates the concept of physical property. If you claim ownership of methods and patterns, and control the use of my real property by initiating physical force, you are not defending some ethereal piece of property, you are simply a criminal.

    Published: December 29, 2009 10:03 AM

  • Russ

    Jesse Forgione wrote:

    “… the concept of non-physical property negates the concept of physical property. If you claim ownership of methods and patterns, and control the use of my real property by initiating physical force, you are not defending some ethereal piece of property, you are simply a criminal.”

    Once again, no, IP does not negate classical property rights. You are simply stating that IP rights are not valid, instead of trying to justify why that is so, and then following the logic of that unbased assumption. But if IP rights are valid, that does not invalidate classical property rights, any more than my classical property rights invalidate your classical property rights. *ALL* property rights, classical or otherwise, imply the right to limit what others can do with their property, else they are useless!

    I agree that IP is not valid, but let’s not use specious arguments that could also be used to attack classical property rights. We’d be shooting ourselves in the foot if we did that.

    Published: December 29, 2009 10:43 AM

  • PirateRothbard

    Nick,

    The point is that Stehpen’s logic is sound, but it is possible for an Objectivist to have a different definition of the word “state” than what anarcho-capitalists have.

    If an Objectivist uses the word state to refer to a non-coercive entiy, that I would say he is a type of anarcho-capitalist.

    Published: December 29, 2009 11:57 AM

  • John Donohue

    I am not fuming. I am bored.

    It’s things like this:

    PirateRothbard I thought we were going to take one point at a time. I set that up, you changed your mind and sent back a reply full of things pointing in all directions, and none of them answered my 1). Not only that, when I specifically wrote that my first item was NOT about this geographical thing, you went off on it again. IPlus, if you didn’t like my “one thing” why didn’t you say so and counter offer one simple single clarifying idea?

    And this, quoting Mr. Kinsella:
    “To be an anarchist only means that you believe that aggression is not justified, and that states necessarily employ aggression. And, therefore, that states, and the aggression they necessarily employ, are unjustified. It’s quite simple, really. It’s an ethical view, so no surprise it confuses utilitarians.”

    But he does not even believe that himself! He supports your “private policing agencies” actually coercing people who, for instance, break into someone’s home to wreck their CD duplicating equipment being used to make/sell unauthorized copies of someone else’s music. That’s what I said, the arrested (against his will) person is the breaking-in-composer-guy. He is aggressively coerced into a private police car, etc. Isn’t that correct, Mr. Kinsella?

    Here’s why I am bored. Your ‘anarchist’ thing cannot ever come about. You are hoping for no less than the withering away of the state, same as Marx and hoping everyone will behave nice. At least Marx had the wisdom to know he had to allow the bourgeoisie some protection for their businesses so they could generate the loot so the proletariat could loot it. You people actually HATE that which makes wealth-building possible, namely protection of intellectual property and a central authority constricted to a response against the initiation of force, aka proper government.

    So your whims are more fantastical than Marx. You constantly talk about these “businesses” and “companies” as if they could actually magically come into existence and actually stay in business under your whacko setup.

    So it’s boring. You guys are worse than the monks spending years figuring out the number of angels that can fit on the head of a pin. They were being more practical than you.

    My parting shot is:

    I don’t think Mr. Kinsella actually WANTS his daydream anarchist culture to come into being. He wants to have his capitalism and eat it too. He has not responded to my inquiry about if he is still working as a patent lawyer. That is his right. Even without an answer to that, his position per his writings proves he wants to construct reality such that “business” and “companies” and “law” and “agencies” will materialize, even though he is a voracious eater of that which makes them possible. Miss Rand has a word for that and you all know what it is.

    John Donohue
    Pasadena, CA

    Published: December 29, 2009 12:15 PM

  • Stephan KinsellaAuthor Profile Page

    Donohue: force against agressors is not aggression. You seem to have a very undeveloped understanding of libertarian principles b

    Published: December 29, 2009 12:55 PM

  • Scott D

    John Donohue:

    “He is aggressively coerced into a private police car, etc.”

    The concept of aggression and retributive action taken against an aggressor is covered in much detail in libertarian literature. An aggressor opens him or herself up to retribution from the one who was aggressed upon. Self-defense in the face of an assault, for example, is not considered aggression. By using or threatening to use force, an aggressor gives the victim no other recourse but to respond with force. If I remember correctly, Stephan Kinsella has his own ideas here in the concept of estoppel. Look it up if you want his own answer to your objection.

    “You people actually HATE that which makes wealth-building possible, namely protection of intellectual property and a central authority constricted to a response against the initiation of force, aka proper government.”

    Your second point first. What you describe is a contradiction. Are we in agreement that government holds the monopoly on the legal use of force? Are we in agreement that, in the real world, such an organization must be funded? How is that funding obtained? What happens if there is a shortfall in “donations”? Anarchists hold out hope that there is another way, a better way, than forced servitude to even a hypothetically benevolent government.

    Now, as for the subject of IP, I am quite skeptical of the assertion that we (and capitalism itself!) are all doomed without it. I can see whole industries having to painfully readjust to the lack of government-enforced IP laws, but it is a bit of a logical jump to presume that trade and capital accumulation become impossible without them. I think that you are taking the idea of, “But if anything anyone creates can be copied, no one will want to create anything at all!” (patently false, no pun intended) and running with it.

    Published: December 29, 2009 1:50 PM

  • Russ

    John Donohue wrote:

    “You people actually HATE that which makes wealth-building possible, namely protection of intellectual property and a central authority constricted to a response against the initiation of force, aka proper government.”

    Your idea that IP makes wealth-building possible is patently ridiculous. There was wealth before IP laws came about. And people still make money manufacturing things after their patents run out on them. Heck, people still make money printing books that are freely available on the Internet. Intellectual property tries to apply laws developed for material property to immaterial property, which has a completely different nature. It is thus a legal fiction with no rational basis in natural law.

    Published: December 29, 2009 3:38 PM

  • Stephan KinsellaAuthor Profile Page

    Donohue: “You people actually HATE that which makes wealth-building possible, namely protection of intellectual property and a central authority constricted to a response against the initiation of force, aka proper government.”

    What makes wealth building possible is respect for private property. The state does not respect private property. It invades private property. The comment about a “central authority” betrays the Objectivist neat-freak zeal for having a one-world state that has a “final” say-so.

    Published: December 29, 2009 4:52 PM

  • Bob Kaercher

    Russ wrote:

    “All property rights are predicated on controlling what others can do with their property. If you are against IP for this reason, you must logically be against property for this reason as well.”

    You misread me.

    What I was saying was that implicit in the concept of “intellectual property” is the assumption that a creator/inventor/innovator by virtue of being such has a right to use *force* against another to prevent them from using *their own property* to reproduce the aforementioned creator’s work in some way, e.g., downloading music, films from the web, etc., using one’s own computer. To use force against someone for such activity would actually be a *violation* of property rights in the libertarian view.

    Published: December 29, 2009 7:20 PM

  • Bala

    John Donohue,

    ” He supports your “private policing agencies” actually coercing people who, for instance, break into someone’s home to wreck their CD duplicating equipment being used to make/sell unauthorized copies of someone else’s music. That’s what I said, the arrested (against his will) person is the breaking-in-composer-guy. He is aggressively coerced into a private police car, etc. ”

    Repeated attempts at question begging do not strengthen an argument. There is no rights infringement in copying. To do so, you have to first assume that the composer has a property right to the pattern he has “created”. What else do I call this but question begging?

    I repeat… Ideas and Patterns (or their instantiation) can NEVER be treated as “property”. That is an unalterable aspect of the very NATURE of ideas & patterns and of man as well. The term “Intellectual Property” is an OXYMORON.

    When you speak otherwise, you are violating the most fundamental principle of Objectivism. The Objectivist Metaphysics is based on an Objective Reality, a concept which Rand restated in simple terms as “Nature, to be commanded, must be obeyed.” or “Wishing won’t make it so”.

    Check this out

    http://aynrandlexicon.com/lexicon/objectivism.html

    You are therefore guilty of whim-worshipping. That automatically disqualifies you from calling yourself an Objectivist.

    On the other hand, everything about breaking into a person’s home and breaking his CD duplicating equipment is an infringement of legitimate property rights. As Stephan noted, force used against this person is legitimate retaliatory force used in self-defence. That you are unable to see this shows how clouded your mind is.

    Published: December 29, 2009 8:00 PM

  • Russ

    Bob Kaercher wrote:

    “You misread me.

    What I was saying was that implicit in the concept of “intellectual property” is the assumption that a creator/inventor/innovator by virtue of being such has a right to use *force* against another to prevent them from using *their own property* to reproduce the aforementioned creator’s work in some way, e.g., downloading music, films from the web, etc., using one’s own computer. To use force against someone for such activity would actually be a *violation* of property rights in the libertarian view.”

    No, Bob, I didn’t misread you. You’re just still not understanding my argument. 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. If IP were a valid form of property right, it would then similarly be OK to use force to prevent others from using their property to violate that right.

    Saying that IP rights are invalid because they imply that people can use force to limit the use of other peoples’ property, is an invalid argument. Classical property rights also imply that people can use force to limit the use of other peoples’ property. If your argument invalidates IP, then it necessarily also invalidates classical property rights. I don’t think you intend this, but this is where your logic goes.

    Your mistake seems to be the assumption that property rights give you the right to do anything whatsoever with your property. They don’t. The right to swing your baseball bat ends where my front window begins. Similar, if IP rights were valid, your right to use your computer would end where my IP rights begin. Your argument just says that IP rights are invalid, because the limitations they necessarily impose on others’ property are invalid. But the limitations that IP rights impose are no different than the limitations that classical property rights impose. If these limitations are wrong, and invalidate IP, they also invalidate classical property rights.

    If you want to keep classical property rights, which it seems you do, you need to come up with another reason why IP rights are invalid. I prefer an argument that is based on the fact that material objects are scarce goods, while patterns of ones and zeroes are not.

    Published: December 30, 2009 12:47 AM

  • Bala

    Russ,

    ” I prefer an argument that is based on the fact that material objects are scarce goods, while patterns of ones and zeroes are not. ”

    Just to add to what you have said, I also think that the concept “scarcity” and its role in the recognition of an entity as legitimate “property” are often poorly or even incorrectly understood.

    To put it more elaborately, the term “property” is applied to specific units of a class of objects and not the class in general. A table may be my property but not the class “table”. Once we recognise that the term “property” applies to individual units, we see that the “scarcity” we are talking of is not about the limited supply of tables in general but the fundamental aspect of reality that there can only be 1 of a particular table. Either you have it or I do. If I have it and do not wish to give it to you, you will have to wrest it out of my hands, i.e., initiate force against me (in Objectivist lingo) or commit aggression against me (in Libertarian lingo) to gain possession of the said table.

    This “scarcity” is part of the nature of material objects and not of ideas and patterns (strings of 1s and 0s).

    Published: December 30, 2009 1:48 AM

  • Russ

    Bala,

    I understand what you mean, but I think that the word “property” in English can be used in two different senses (well, actually, more than two);

    1) A particular object that a person owns, and…

    2) The collection of all objects that can conceivably be property in the first sense.

    But I’m nitpicking.

    “This “scarcity” is part of the nature of material objects and not of ideas and patterns (strings of 1s and 0s).”

    Yes, exactly. This focus on the *nature* of material objects and patterns is of utmost importance, if you are interested in a *natural* law theory of property. Part of the nature of EM bandwidth is also that it is scarce.

    Published: December 30, 2009 2:08 AM

  • Stephan KinsellaAuthor Profile Page

    “Russ”:

    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.

    Your mistake seems to be the assumption that property rights give you the right to do anything whatsoever with your property.

    No, the assumption is only that you may engage in whatever action you wish, except those that invade the borders of others’ property–where “property” is conceived of in the Lockean sense of scarce resources homesteaded by appropriation, based on the first-comer has better title than the latecomer principle.

    The fact that some actions are impermissible because they are invasions of others’ property rights has nothing to do with any “limitation” on one’s own property. You may not commit murder, whatever the means–whether it’s your gun or not. The limitation on action is not a limitation on property rights.

    They don’t. The right to swing your baseball bat ends where my front window begins. Similar, if IP rights were valid, your right to use your computer would end where my IP rights begin. Your argument just says that IP rights are invalid, because the limitations they necessarily impose on others’ property are invalid. But the limitations that IP rights impose are no different than the limitations that classical property rights impose.

    Wrong. The limitations you are speaking of are not a property rights limitation but rather a limitation on one’s actions.

    If these limitations are wrong, and invalidate IP, they also invalidate classical property rights.

    If you want to keep classical property rights, which it seems you do, you need to come up with another reason why IP rights are invalid. I prefer an argument that is based on the fact that material objects are scarce goods, while patterns of ones and zeroes are not.

    Because the question always comes down to: who owns this scarce resource–e.g., in a typical IP case, the IP “owner” claims the right to prevent A from using a scarce resource A himself homesteaded or acquired contractually from a homesteader. He claims the right to prevent this use even though A’s use–his action–does not invade any borders of A’s property. It is very different than your typical prohibition on murder etc.’

    Published: December 30, 2009 3:20 AM

  • Russ

    “Stephan”:

    What the heck is “Russ” in quotes supposed to mean? My first name is indeed Russ; I explained why I posted using another name earlier.

    “Sure. And if chattel slavery were valid, the whipping of one’s slave would not be aggression.”

    Correct.

    “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.”

    Also correct. And also a use of sarcasm in lieu of an actual argument.

    “The fact that some actions are impermissible because they are invasions of others’ property rights has nothing to do with any “limitation” on one’s own property. You may not commit murder, whatever the means–whether it’s your gun or not. The limitation on action is not a limitation on property rights.”

    I won’t contend against your argument that murder is wrong, whatever the means. Of course, it is just as wrong to murder with somebody else’s gun, or with bare hands. That’s completely beside the point, though. Your property rights *do* imply a limitation on what I can do with my property; I cannot do anything with my property that would violate your property rights. If you view all rights as property rights, ala Rothbard’s self-ownership, then your ownership of your own body also implies that my self-ownership is limited; I cannot rightfully use my body to initiate force against you.

    “Wrong. The limitations you are speaking of are not a property rights limitation but rather a limitation on one’s actions.”

    Again, if one buys into Rothbardian self-ownership, then it’s a matter of “six one way, half a dozen the other way”. The limitation is a matter of a limitation of what one can do (one’s actions) with one’s property (including one’s body). Since we are material creatures, then any action I take must involve use of my property (including my body). And so, any limitation of my actions must involve limitations on rightful use of my property. Even if I were to beg, borrow or steal somebody else’s gun (the last of which would be wrong in and of itself), I would still have to use my body (which I have self-ownership of) to pull the trigger. Any way you cut it, my self-ownership and ownership of my property does not give me the right to do anything I want with myself or my property. My ownership does not give me unlimited rights to do as I wish with my property. My ownership is thus *limited*.

    “Because the question always comes down to: who owns this scarce resource–e.g., in a typical IP case, the IP “owner” claims the right to prevent A from using a scarce resource A himself homesteaded or acquired contractually from a homesteader. He claims the right to prevent this use even though A’s use–his action–does not invade any borders of A’s property.”

    Once again, *if* IP were valid, then A’s use *would* invade the borders of the IP “owner’s” property. You are assuming that which you wish to prove (that IP is invalid), just as Bob Kaercher did. First, you must demonstrate that IP is invalid. Only then can you say that the IP “owner” is violating A’s property rights. You can’t say that IP is invalid because it violates A’s property rights, and it violates A’s property rights because it is invalid; that’s circular logic.

    Published: December 30, 2009 4:32 AM

  • Peter Surda

    I agree with Russ. Presented the way Stephan does it is circular logic. Please remember, both Russ and I are IP opponents. We do not oppose Stephan’s conclusions, merely consider the argument insufficient.

    For an alternative take on the overlap issue, which I hope to be logically correct, kindly consult my replies in another post: http://blog.mises.org/archives/011323.asp
    I added two replies since yesterday, hopefully they will clarify my position.

    Published: December 30, 2009 5:28 AM

  • Bala

    Russ,

    ” But I’m nitpicking. ”

    Actually, I don’t think it is nitpicking. The English language sure is confusing. Frankly, one of the main points I am making is that the term “property” is a moral concept denoting man’s relationship to objects in his environment. When you point at an object and say “This is my property” you are saying that morally speaking, the object “ought” (morally) to be in your possession with the right to act on it being solely yours with othere needing your permission to do so because not doing to is immoral.

    I therefore think that the best way forward is to develop a Moral Theory of Property that takes into account the nature of the entities involved in the concept “Property” – Man and the objects to which the term “property” is to be applied.

    And yes… I agree with you that Stephan was guilty of circular reasoning and assuming the invalidity of that which is to be proven invalid.

    Published: December 30, 2009 6:52 AM

  • Russ

    Peter,

    Do you believe in property rights in EM spectrum? If so, then consider the similarity between EM spectrum rights and IP (don’t worry, this is not Silas’ color argument). If a person owns EM spectrum rights to a certain frequency range in a certain geographical area, then that means that he has the right to use force to limit the use that others make of the transmitting equipment that they own. There is an “overlap” here; the EM rights of the EM spectrum owner overlap the classical property rights of the transmitter owners. Similarly, if IP rights were valid, then the owner of the IP rights would have the right to use force to limit the use that others make of the computers that they own. There is also an overlap here. I think the overlap would be OK in the IP case, given that IP were proven valid, just as the overlap is OK in the EM spectrum case. I don’t see the overlap as a problem. It’s just another example of the property rights of one person implying limitations on what others can do with their property.

    BTW, thanks to you and Bala for helping maintain my sanity. I felt like a voice crying in the wilderness for a while there.

    Published: December 30, 2009 11:38 AM

  • Bob Kaercher

    Russ: How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property?

    Your analogy should be pointed in exactly the opposite direction. It is, in fact, the *IP PROPONENT* who is against property, since they think that a creator has some right to use a “gun” or a “baseball bat” against others for doing completely peaceful, non-invasive activities with their own property, e.g., using one’s own computer to download a song from the web. Such a definition of property is, in fact–regardless of whether the IP advocate can see it or not–*anti*-property.

    And what Stephan said.

    But I’ll leave off for now and let you have any last words. I don’t see much point in arguing with someone who seems to be desperately looking for kind of semantic loophole in someone else’s argument for who-knows-what reason.

    Published: December 30, 2009 12:48 PM

  • Jesse Forgione

    Russ,

    Owning intellectual property amounts to owning one or more possible uses for physical property.
    For any given piece of physical property, the more of it’s possible uses are owned by others, the less it’s owner is free to use it. He may only use his physical property in ways that remain unclaimed or in ways that he himself owns which others who own similar property may not use (without his permission). If we follow IP to it’s extreme conclusion where all possible uses are owned, we reach the state where no two people may make the same type of use of similar physical property without one getting the permission of the other. If someone owned a piece of physical property, but none of it’s possible uses, he could not be said to own it in any meaningful way.

    In principle, to own a method or pattern is to have a degree of control over all the physical property that exists. To the degree that the various possible uses of others’ property can be owned, those others are not it’s owners.
    Let’s imagine I use my own materials to build a house of my own design. You, my neighbor, own similar materials, and seeing my method of building, you imitate my design for your own house. Now either I am justified in knocking your house apart to take back my intellectual property or I’m not. If IP is valid you have stolen my pattern and I should take steps to get it back. If IP is not valid than I’m a vandal violating your property rights. But we can’t both be right. Either I control the pattern you arrange your property in, or you do. If it’s the former, than you cannot really be said to be “owning” your physical property. This would amount to the fascist model where there is nominal private property but the state controls what can be done with it, rendering the “ownership” meaningless.

    Also, there’s no reason in principle that IP couldn’t be applied to broader, more general or more obvious ideas. What if I owned not just the design of a specific car, but the very idea of a car? …or the very idea of mechanical transportation? …or the wheel? The difference is only in degree.

    Published: December 30, 2009 1:46 PM

  • Jesse Forgione

    Russ,

    Sorry, I should have indicated that the above is in response to:

    “Once again, no, IP does not negate classical property rights.”

    Published: December 30, 2009 1:56 PM

  • Peter Surda

    Hi Russ,

    thanks for the reply. Yes, I believe in “sort of” property rights in EM and explained my position to Silas several times. I think since the last time I explained it I was able to think of a more coherent approach.

    In my opinion, a property infringement means that the integrity of the property is compromised. I didn’t actually come up with the idea, it is one of the known libertarian approaches. In the case of EM, a sender can under certain circumstances cause disruptions in the recipients of other sender’s broadcast. I.e. the integrity of the reception is compromised. This can be prevented (by the second sender) for example by using a different frequency or by agreeing with the first sender to a transmission protocol that allows bandwidth sharing.

    An analogy would be that the senders are producers and the recipients consumers. With IP, the provisioning of services by competing producers do not prevent each other. With EM, in certain cases, they do.

    The analogy I gave to Silas was spraying a wall. Two sprayers can spray on the same wall in parallel, however the wall can only show one picture at a specific time.

    Now, I have not come to the conclusion if it’s the sender or the recipient that “own” the EM spectrum. Arguments can be made with regards to both. Possibly it is a mix of those. Nevertheless, at least one of them has a right to prevent an unwanted sender from disrupting the reception. In some cases, that means they can’t send at all. But it is not the prevention of sending that is the core issue, rather prevention of disruption of reception. If the sender can somehow manage to send without disrupting the reception of another broadcast, there is no infringement.

    Published: December 30, 2009 1:58 PM

  • Stephan KinsellaAuthor Profile Page

    Peter Surda: “I agree with Russ. Presented the way Stephan does it is circular logic. Please remember, both Russ and I are IP opponents. We do not oppose Stephan’s conclusions, merely consider the argument insufficient.”

    Peter, I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?

    And given this view, to oppose the use of my scarce resource by another, without my permission, is not circular either.

    A consequence of this view is that you may use force to prevent others from committing such invasion. But other types of force would then necessarily be trespass, aggression. Force that is not consented to may be used only in response to trespass, otherwise it is trespass.

    Now, the IP idea says that A may use force against B, if B is using B’s scarce resources according to a certain pattern that A claims some “right” to. In other words, A claims a right to use force against B, even though B never did perform any action that invaded A’s scarce resource, even though B never did change the physical integrity of A’s property.

    That is why A’s claimed right to force is wholly unjustified and is indeed incompatible with the libertarian conception of property rights in scarce resources. We believe every scarce resource should be assigned an owner, based on Lockean principles. IP would set up a second rule for assigning property rights to scarce resources.

    Published: December 30, 2009 6:14 PM

  • Bala

    Bob Kaercher,

    I know you posed this question to Russ, but since I seem to agree with him, I thought I’ll reply.

    ” How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property? ”

    If IP is valid, the very meaning of it is that the patent/copyright holder alone has the right to instantiate the idea/pattern. The very act of instantiation by someone else is an initation of force against the “owner”.

    In typical Objectivist argumentation, the very existence of the idea/pattern being owed to the creator, there is no excuse anyone can give for claiming that they could not have known that someone created the idea. This is similar to saying “Once you have put a fence to your land, there is no way any person can fail to understand that it is your property”.

    Whenever anyone asks “How do you put a marker to show that an idea is owned”, an Objectivist would respond saying that you probably do not even understand the metaphysical nature of ideas – that they cannot come into existence without a creator and that their very “existence” is their “identity” (more Objectivist language, in case you are unfamiliar). You will promptly be labelled “concrete-bound”.

    Just as any person crossing a fence without your permission is guilty of initiating force against you, any person copying an idea is then considered guilty of wilfully ignoring the “metaphysical reality” of ideas and initiating force against the creator (who is the “owner”).

    In this case too, it is the action of instantiating that which is clearly someone else’s idea that is a violation of his “property rights” just as the action of swinging a baseball into my face is a violation of my “right to life” or the action of invading my land is a violation of my “property rights”. In all 3 cases, it is the action that is being restricted. If…. that’s a big IF…. both classes of property rights (physical and intellectual) are valid, someone who disagrees with the “use” of force to defend one has to necessarily disagree with the use of force to defend the other.

    Therefore, Russ is right that if you accept the validity of IP, copying is tantamount to invasion of owned land. Similarly, if you reject IP protection, you should reject physical property protection too on the same grounds.

    Published: December 30, 2009 7:05 PM

  • Bala

    Stephan,

    ” I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. ”

    It is because the basic Objectivist argument for IP does question the validity of the application of the Lockean homesteading view to ideas & patterns and then citing their lack of “scarcity” as the reason to say that they are not “property”.

    Further, Russ’s point was “If IP were valid…..”. A response that says “Since IP is invalid…..” and then goes on to say that force is used to protect the “invalid” right and that that is further grounds to consider the right invalid, one is indeed guilty of engaging in circular reasoning.

    This error is what I meant when in some other post, I said that your arguments are too libertarian. I can clearly see why most Objectivists will not agree with you and why any arguments you have with them turn heated and end in name-calling. You call them “wilful aggressors” and they call you “concrete-bound”.

    Published: December 30, 2009 7:16 PM

  • Bala

    Peter Surda,

    ” In the case of EM, a sender can under certain circumstances cause disruptions in the recipients of other sender’s broadcast. I.e. the integrity of the reception is compromised. ”

    I was thinking on slightly different lines but came to similar conclusions. My thinking was that when I send a message on a frequency, the message is my property just as much as a letter I have sent out in the custody of a courier is my property till it is delivered to the recepient.

    On these lines, my conclusion was that it is not the EM spectrum itself that is owned but the message that is being broadcast on it. Therefore, anyone broadcasting a signal that distorts my message (meaning it would have to be on the same frequency) is violating my property rights.

    Interestingly, I was coming to the same conclusion that if the second user of the same frequency could use it without distorting my message, there would be no property rights violation just as your sending a letter through the same courier does not violate the property right I have in the letter I send.

    Does this make sense? Is it simple to understand?

    Published: December 30, 2009 8:17 PM

  • Silas Barta

    Looks like Peter_Surda and I have a rare agreement on this issue.

    @Stephan_Kinsella:

    Peter, I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?

    This has been explained to you several times by now, but let’s try it again a different way. The circularity lies in your assumption about which rights you gain by doing how much homesteading, and it is in no way obvious how the rights must work the way you think they do.

    Say I homestead a plot of land. How far above and below does that homesteading entitle me to? Yes, you can justify a specific amount, but that’s the point: you have to justify why your rights extend to that boundary (abstract or otherwise), not just assume that your land ownership implies ownership of the airspace through which planes fly, and then argue that “airplanes necessarily violate the property rights in already-owned land” … which, when you think about it, is pretty much what your IP case is.

    But that’s just the beginning: does homesteading the land entitle you to block (non-nuisance) concentrated sound waves from passing through your land (e.g. ultrasound)? And of course, back to the ol’ chestnut: does the land ownership entitle you to block every single frequency of the EM spectrum passing through?

    Now, there are many cases where you can assume that homesteading entitles you to certain rights. However, here, the very debate is about which rights you are morally entitled to by virtue of homesteading what. And in that case, it is in fact circular to assume a certain level of homesteading-based rights, since you’re trying to prove what the homesteading-based rights are in the first place, which people dispute!

    Note that since this is the central argument of Against Intellectual Property, its circularity isn’t very encouraging when judging its merit as an argument against IP.

    Published: December 30, 2009 10:10 PM

  • Andras

    Not to mention that the act of homesteading itself is totally arbitrary. How do you homestead a land. Setting the horizontal size of it is as arbitrary as the vertical size. Fencing it? Who are you kidding?
    At least a composition of matter patent is unambiguous.

    Published: December 31, 2009 12:48 AM

  • Russ

    Bob Kaercher wrote:

    “Russ: How is using *my own computer* to download a film or a song the equivalent of initiating aggression, i.e., using a “baseball bat” or a “gun” to assault someone and/or invade their property?”

    I’ve already explained that several ways later on in this thread. I said that *IF* IP rights were valid, then using your computer to violate my IP rights would be initiating aggression. Or, if a person’s rights to EM spectrum were valid (which I believe they are), then using your transmitter to violate my EM spectrum rights would be initiating aggression.

    “Your analogy should be pointed in exactly the opposite direction. It is, in fact, the *IP PROPONENT* who is against property, since they think that a creator has some right to use a “gun” or a “baseball bat” against others for doing completely peaceful, non-invasive activities with their own property, e.g., using one’s own computer to download a song from the web. Such a definition of property is, in fact–regardless of whether the IP advocate can see it or not–*anti*-property.”

    Here you are assuming that which you wish to prove, just like Stephan is. Note the words “completely peaceful, non-invasive activities”. You are *assuming* that using a computer to download a song is a completely peaceful, non-invasive activity. But an activity is only completely peaceful and non-invasive if it does not violate rights. So, by assuming that using your computer to download a song is a completely peaceful and non-invasive activity, you are implicitly assuming that it does not violate rights, which implicity assumes that IP rights are invalid. A Randian would call what you are doing the fallacy of the smuggled premise.

    “But I’ll leave off for now and let you have any last words. I don’t see much point in arguing with someone who seems to be desperately looking for kind of semantic loophole in someone else’s argument for who-knows-what reason.”

    I’m pointing out what I believe to be a logical flaw in your argument, not looking for “semantic loopholes”. The reason why I am doing this is that I think your argument is both a flimsy argument against IP and a possible (although also flimsy) argument against classical property!

    @Jesse Forgione:

    I have already argued some of my points elsewhere in this post or thread, so I’ll let those speak for themselves. My comment to you specifically on your last post is that you seem to be going for a sort of reductio ad adsurdem argument against IP. The only problem with using reductio ad adsurdem arguments in philosophy is that some philosophers, being the armchair types they are, won’t find the conclusions absurd! Why not stick to the scarcity argument against IP? It’s perfectly reasonable, and once you have one disproof of the validity of IP, do you really need another?

    Stephan Kinsella wrote:

    “…I don’t think it’s circular because our view of property rights is grounded in a Lockean homesteading view as applied to scarce resources. Under that view you can perform any action you want so long as you do not invade the borders of (i.e., change the physical integrity of) another’s Lockeanly-owned scarce resource, without his consent. How is this circular?”

    It’s not the scarcity argument for the validity of property that I think is invalid. I agree with this. I believe that the circularity is actually in another argument, which you seem to be melding together with your scarcity argument. This is the same argument that Bob Kaercher and Jesse Forgione are using without the scarcity argument to prop it up.

    That second argument is that IP is invalid, because enforcing it violates the property rights of classical property owners. But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid. Therefore, this argument implicitly assumes that which it intends to prove. As I said before, it is a smuggled premise.

    @Peter:

    However you want to slice the EM rights thing is irrelevant to my argument, I think. The main thing is that we agree that somebody has a right to use force to prevent a second sender from using his classical property (his transmitter) to interfere with the reception of a signal sent by a first sender. As long as we agree on that, we both agree that there is a case of “overlap” between classical property rights and a newer form of property right (EM spectrum rights), where the newer form rightly wins. That being the case, you should have no objection to overlap in general, hence the overlap argument against IP fails, IMVHO.

    Published: December 31, 2009 5:08 AM

  • Peter Surda

    @Russ:
    I believe you commit the same logical error as Silas does when arguing for similarity between EM and IP. In EM, it is not the overlap on the sender side that is the cause of the alleged infringement, rather the overlap on the receiver side. More accurate analogy to the IP case would be if person A was sending signal to person B (potentially A and B are the same), with both A and B’s agreement, instead of B receiving the broadcast by person C, and that was alleged to cause an infringement of C’s rights.

    If one was to make that claim, one could also claim that preventing person A shooting his gun in a way that the bullet leaves person A’s premises and hits person B is equivalent to IP.

    Published: December 31, 2009 5:34 AM

  • Russ

    @Peter:

    I’m afraid I don’t understand your last post at all. Maybe not enough caffeine on my part? I’m not sure I understand your overlap theory completely, and I am trying to organize my thoughts on it as I am writing, so bear with me.

    My understanding of your theory is that IP would be wrong because there is an overlap of rights with respect to a single object; a CD, for instance. Person A owns a CD, but person B owns the software on the CD, and thus could rightfully use force to prevent A from using his CD as he wishes, if that use violates B’s IP rights. You see this as a contradiction due to the overlap of rights, and thus as a disproof of IP, am I right? I don’t see it as a contradiction, and hence don’t see it as a disproof of IP. The reason I don’t see it as a contradiction is because B using force to prevent A from using his CD in any way he wishes, is in principle no different from me using force to prevent you from using your classical property any way you wish (i.e. using your bulldozer to crush my house). It’s the same with EM spectrum rights. It doesn’t really matter what side the overlap is on, receiver or transmitter (although I can’t see how EM spectrum rights could work if the “homesteading” trasmitter owner didn’t own the rights). All that matters is that *somebody* has the right to use force to prevent somebody else from using his classical property (his transmitter) as he wishes. This is an overlap of EM spectrum rights over classical property rights, since it prevents a second transmitter owner from doing with his own transmitter as he would like, but it’s still valid.

    In fact, I would argue that since all property rights involve limitations of what others can do with their own property, all property rights involve overlap, in a sense. Hence, the overlap doesn’t invalidate anything, or all property rights would have to be thrown out the window. I would also argue that your overlap theory is just a more sophisticated packaging of the “IP violates classical property rights, therefore it’s invalid” argument.

    Published: December 31, 2009 8:12 AM

  • Peter Surda

    @Russ:

    I think you misunderstand me. Apparently my arguments are harder to explain than I anticipated.

    You are correct in that overlaps are nothing specific for IP or EM. Which is why abandoned the circular reasoning. Yes, ownership overlaps can also happen if you have purely physical property only, and you are also limited in what you can do with physical property even without IP. Let’s split the argument into two parts.

    Overlap: it is my observation that in case of an overlap, the more abstract aspect always takes precedence. The overlap prohibits (from legal perspective) the owner of the less abstract aspect from using it, but the owner of the more abstract aspect is not prohibited from using it. If you only have physical property, for the duration of the overlap both sides are prohibited from using their aspects. If I mix physical objects that do not belong to me (e.g. cheese omelette from stolen eggs & cheese), this prevents all owners equally from using the results (absent agreement).

    While (hypothetical) ownership of immaterial properties can lead to prohibition of using physical objects, it doesn’t work the other way around. The more abstract takes precedence. Patents > copyright > physical. Ownership of the lower layer becomes insufficient justification for its usage, there is always an overlap between the layers. This is the core of my argument.

    Limits: I don’t think this is an argument I can make within the creation theory of property, from that point of view all limitations whatsoever are irrelevant. I can only show the difference if property is interpreted as a right to integrity.

    Published: December 31, 2009 9:27 AM

  • Stephan KinsellaAuthor Profile Page

    Russ:

    “It’s not the scarcity argument for the validity of property that I think is invalid. I agree with this. I believe that the circularity is actually in another argument, which you seem to be melding together with your scarcity argument. This is the same argument that Bob Kaercher and Jesse Forgione are using without the scarcity argument to prop it up.

    That second argument is that IP is invalid, because enforcing it violates the property rights of classical property owners. But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid. Therefore, this argument implicitly assumes that which it intends to prove. As I said before, it is a smuggled premise.”

    I am not sure this is right. You say, “But it can’t be said that enforcing IP violates the rights of classical property owners, unless IP is invalid.” But it seems to me you can say that “enforcing IP violates the rights of classical property owners, IF classical property is valid.”

    Published: December 31, 2009 9:47 AM

[ AM]

Comments

Stephan Kinsella writes: “I am pleased by the thought of their discomfort.”Why? That is negative-sum thinking and leads only to problems.

I still have an outstanding question concerning Objectivism and intellectual property. How do they (Objectivists) handle the obvious conundrum of people coming up with the same idea?Basically, many people can have the same intellectual “property“. So for the Objectivist’s, how do you deprive someone of an intellectual property right that they independently developed? For further reference on what I am getting at see Private Property – Don’t Touch!!!, which deals with a growing real property concern where people believe that they can tell (force) you what to do with your property on the mere assertion that it somehow affects their property.

I still have an outstanding question concerning Objectivism and intellectual property. How do they (Objectivists) handle the obvious conundrum of people coming up with the same idea?Basically, many people can have the same intellectual “property“. So for the Objectivist’s, how do you deprive someone of an intellectual property right that they independently developed? For further reference on what I am getting at see Private Property – Don’t Touch!!!, which deals with a growing real property concern where people believe that they can tell (force) you what to do with your property on the mere assertion that it somehow affects their property.

Hey speaking of the imagined cognitive dissonance of Objectivists, maybe you could help them through their discomfort. Last I checked, admittedly a long time ago, you made your living as a patent lawyer and chief IP counsel for a tech company. Are you still living a life of cognitive dissonance, or have you left behind productive activities to become a full time polemicist?

The reason I argue that “any conceptually identifiable ‘thing’ is ownable” — although I never put it that way — is that without identity differentiating things nothing could be ownable.The reason that creation is the beginning of the moral case for property rights is that without creation nothing other than brute-force possession defines ownership.

As for “the obvious conundrum of people coming up with the same idea” that is just one of the questions I answered 25 years ago in my essay “Informational Property: Logorights,” newly available at http://jneilschulman.rationalreview.com/2009/12/classic-j-neil-informational-property-logorights/.

“Creation is a Person’s action which imposes that Person’s logos on something which exists to give that thing a unique identity it did not previously have. … If the respondent succeeds in demonstrating independent creation, then the petitioner’s original “creation” wasn’t inherently improbable, therefore questionable as a unique creation — and therefore possibly not property at all — for either of them.”

“I would also caution anti-copyright libertarians against assuming their conclusion in using anti-monopoly and ‘privilege’ rhetoric against copyright. Arguments against ‘monopoly privilege’ in the exclusive ownership of a logos ignore the fundamental difference between all property rights, which are monopolistic in the sense of being held exclusively, and monopoly practices, which are invasive.” –J. Neil Schulman, “Informational Property — Logorights”, at http://jneilschulman.rationalreview.com/2009/12/classic-j-neil-informational-property-logorights/
All so-called “intellectual property rights” (or “logorights”, as you prefer to call them) are inherently invasive, though, or at least any enforcement of them must necessarily be. Because enforcing, say, a copyright requires the copyright holder or their agent to monitor consensual transactions between third parties and to stop some such transactions or punish some such parties after the fact.
@ schulman, Good answer. “If the respondent succeeds in demonstrating independent creation, then the petitioner’s original “creation” wasn’t inherently improbable, therefore questionable as a unique creation — and therefore possibly not property at all — for either of them.”“

“Because enforcing, say, a copyright requires the copyright holder or their agent to monitor consensual transactions between third parties and to stop some such transactions or punish some such parties after the fact.”That’s true also of any situation where a stolen good is fenced.

I start that logoright is a moral issue before it’s a legal issue or an enforcement issue. The moral case needs to be made even if the only enforcement mechanism is social preferencing. But if people who believe in property rights won’t respect logorights on simple moral grounds then what hope is there for libertarian arbiters to respect them if we ever achieve a free society?

J. Neil, but the infringement of an artificial monopoly is not necessarily a violation of privacy as occurs in burglary.If you burgled my house and stole a copy of my diary, then the fencing thereof would be as immoral as that of any jewellery you might have stolen. However, if I give you a copy of my diary, then you cannot violate my privacy by making a further copy of it. You can only infringe the privilege I’ve been granted to exclude you from making further copies.

It is circular to say that copyright infringement is theft because it is immoral to infringe copyright, and copyright is thus legislated to prohibit such theft.

It would be like saying to free a slave is immoral as it diminishes that privilege of ownership which has been granted to their master, and thus slavery laws have been legislated to protect the master’s property against theft.

You can’t use copyright to justify itself, to pull it up by its own bootstraps. You have to refer to nature. It takes a potentate and a bloody great army to prohibit certain works or designs from being used, performed or copied. This is not the sort of power to find imbued in a lone individual.

We’ve been singing each other’s songs, telling each other’s stories, and copying each other’s baskets and bison paintings for a fricking long time. To say “Thou shalt not copy nor build upon the works of thy neighbour, that mankind can thus progress the faster” is a modern shibboleth that divides the intelligent from the moron. To further elevate it into a matter of morality is the resort of the latter grasping at justification. We need only wait for their brother, the religious nutter, to consolidate the moral imperative with the approval of a deity and the almighty folly will be complete.

You’re doing yeoman’s service, Stephan. Bravo!

J. Neil Schulman writes:”That’s true also of any situation where a stolen good is fenced.”

But here nothing has been stolen.

It is possible to enforce laws against theft without monitoring and interfering with consensual third-party transactions. For example, to stop my car from being stolen I can lock it, lock the garage it’s in, and sit out on my stoop with my shotgun. The police can arrest anyone trying to break in — that’s not monitoring and interfering with consensual third-party transactions because someone trying to break into my car lacks my consent.

On the other hand, if I publish a song, someone buying a copy from me is a consensual transaction. That someone then uploading a copy to someone else via bittorrent is another consensual transaction. It’s also copyright infringement unless I slapped a CC license on that song, but that infringement cannot be enforced against without preventing at least one of those two consensual transactions, or else punishing it, and thus cannot be done without monitoring at least one of them. In fact, there are only two ways it can be done: I avoid publishing the song at all, or else BitTorrent is monitored and some consensual BitTorrent transactions are stopped and/or punished.

This seems wrong.

Short version: without the ability to impede or punish consensual transactions, the fencing of say a stolen car can’t be stopped once the car has been stolen, but the theft itself remains preventable and deterrable. On the other hand, without such an ability, copyright infringement is neither preventable nor deterrable.

Creation can’t be the basis of property, because it begs the question of ownership, which is established with property. If Smith breaks into Jones’s home, goes into his ‘frige and whips up a four-course meal, he is the creator of the meal, but certainly not the owner. Or if he uses Jones’s artists’ materials to paint a masterpiece, he’s not the owner either even though he created it. Jones owns both the meal and the art. Similarly, Mr. and Mrs. Smith, the parents of young Master Smith Jr., are his creator, but certainly are not his owner, even if they have legal custody of him until he reaches his legal majority. Young Smith is a self-owner, and has rights that no one can violate, including his creator-parents. Creators can destroy their property as long as they violate no one else’s rights in doing so. All of these examples are implications of Rothbarian-formulated property rights in The Ethics of Liberty, which is webbed at the Mises Institute site.Interestingly, Rothbard eschewed patent, but accepted copyright. IMO, the reason he did so was based on following Locke headlong over a nasty cliff (“owning your labor,” which you can’t do, because labor is an activity), although JL accepted copyright too. There’s a libertarian paper waiting to be written on why Rothbard got patent right but copyright wrong.

Bill, re a paper about why Rothbard got patent right but not copyright, I have a section in my Against Intellectual Property about this.

The word “monitoring” has arisen in this discussion. Nobody writes: “Short version: without the ability to impede or punish consensual transactions, the fencing of say a stolen car can’t be stopped once the car has been stolen, but the theft itself remains preventable and deterrable. On the other hand, without such an ability, copyright infringement is neither preventable nor deterrable.“I am not sure what his implication is concerning “monitoring“, but the implication seems to be that copyright holders should somehow have an entitlement to intrude (trespass) into a person’s private space on the mere belief that an infringement may have occured. Not only that but there are even demands that third parties should be responsible for protecting the copyright privilege of a content holder.

This approach to copyright enforcement raises extensive concerns with our legal process. Under this “monitoring” concept; should I feel like it, I could break into anyone’s house to search it for the MP3 file I could not locate. Not only that, but I would have an entitlement to demand that the ISP search its data stream for that file too. What does this mean; that copyright holders can assume that we are all guilty and therefore are entitled to create a police state to protect themselves through “monitoring“?

Thanks for reminding me, Stephan, of your discussion about Rothbard. I’ll have another look.

I just want to see CCTV cameras installed at all water coolers with Joke police watching all of them 24x7x365 for Joke IP violations. I mean, why should someone be allowed to tell jokes that they did not think up themselves? Penalties should be something like those for copying a CD or DVD without permission. Say $20,000.00 fine and 4 or 5 years in jail per joke violation.all the best,

drew — Join the Free Music Pushe

There are some nice counterexamples to the ip-creationist fallacy. Another one came to my mind reading this article. Imagine you own one painting by a 18th century artist who created 20 of them. They depict a famous person and these are the only existing original depictions of him. Now what would happen to the value of your piece if I bought and destroyed the other 19 of them? No doubt the value of the only remaining painting would rise. But does that imply I now gained some partial property rights to it just because it was me who “created” the additional “value”?

Archived comments from AM:

Comments

Stephan Kinsella writes: “I am pleased by the thought of their discomfort.”Why? That is negative-sum thinking and leads only to problems.

I still have an outstanding question concerning Objectivism and intellectual property. How do they (Objectivists) handle the obvious conundrum of people coming up with the same idea?Basically, many people can have the same intellectual “property“. So for the Objectivist’s, how do you deprive someone of an intellectual property right that they independently developed? For further reference on what I am getting at see Private Property – Don’t Touch!!!, which deals with a growing real property concern where people believe that they can tell (force) you what to do with your property on the mere assertion that it somehow affects their property.

I still have an outstanding question concerning Objectivism and intellectual property. How do they (Objectivists) handle the obvious conundrum of people coming up with the same idea?Basically, many people can have the same intellectual “property“. So for the Objectivist’s, how do you deprive someone of an intellectual property right that they independently developed? For further reference on what I am getting at see Private Property – Don’t Touch!!!, which deals with a growing real property concern where people believe that they can tell (force) you what to do with your property on the mere assertion that it somehow affects their property.

Hey speaking of the imagined cognitive dissonance of Objectivists, maybe you could help them through their discomfort. Last I checked, admittedly a long time ago, you made your living as a patent lawyer and chief IP counsel for a tech company. Are you still living a life of cognitive dissonance, or have you left behind productive activities to become a full time polemicist?

The reason I argue that “any conceptually identifiable ‘thing’ is ownable” — although I never put it that way — is that without identity differentiating things nothing could be ownable.The reason that creation is the beginning of the moral case for property rights is that without creation nothing other than brute-force possession defines ownership.

As for “the obvious conundrum of people coming up with the same idea” that is just one of the questions I answered 25 years ago in my essay “Informational Property: Logorights,” newly available at http://jneilschulman.rationalreview.com/2009/12/classic-j-neil-informational-property-logorights/.

“Creation is a Person’s action which imposes that Person’s logos on something which exists to give that thing a unique identity it did not previously have. … If the respondent succeeds in demonstrating independent creation, then the petitioner’s original “creation” wasn’t inherently improbable, therefore questionable as a unique creation — and therefore possibly not property at all — for either of them.”

“I would also caution anti-copyright libertarians against assuming their conclusion in using anti-monopoly and ‘privilege’ rhetoric against copyright. Arguments against ‘monopoly privilege’ in the exclusive ownership of a logos ignore the fundamental difference between all property rights, which are monopolistic in the sense of being held exclusively, and monopoly practices, which are invasive.” –J. Neil Schulman, “Informational Property — Logorights”, at http://jneilschulman.rationalreview.com/2009/12/classic-j-neil-informational-property-logorights/
All so-called “intellectual property rights” (or “logorights”, as you prefer to call them) are inherently invasive, though, or at least any enforcement of them must necessarily be. Because enforcing, say, a copyright requires the copyright holder or their agent to monitor consensual transactions between third parties and to stop some such transactions or punish some such parties after the fact.
@ schulman, Good answer. “If the respondent succeeds in demonstrating independent creation, then the petitioner’s original “creation” wasn’t inherently improbable, therefore questionable as a unique creation — and therefore possibly not property at all — for either of them.”“

“Because enforcing, say, a copyright requires the copyright holder or their agent to monitor consensual transactions between third parties and to stop some such transactions or punish some such parties after the fact.”That’s true also of any situation where a stolen good is fenced.

I start that logoright is a moral issue before it’s a legal issue or an enforcement issue. The moral case needs to be made even if the only enforcement mechanism is social preferencing. But if people who believe in property rights won’t respect logorights on simple moral grounds then what hope is there for libertarian arbiters to respect them if we ever achieve a free society?

J. Neil, but the infringement of an artificial monopoly is not necessarily a violation of privacy as occurs in burglary.If you burgled my house and stole a copy of my diary, then the fencing thereof would be as immoral as that of any jewellery you might have stolen. However, if I give you a copy of my diary, then you cannot violate my privacy by making a further copy of it. You can only infringe the privilege I’ve been granted to exclude you from making further copies.

It is circular to say that copyright infringement is theft because it is immoral to infringe copyright, and copyright is thus legislated to prohibit such theft.

It would be like saying to free a slave is immoral as it diminishes that privilege of ownership which has been granted to their master, and thus slavery laws have been legislated to protect the master’s property against theft.

You can’t use copyright to justify itself, to pull it up by its own bootstraps. You have to refer to nature. It takes a potentate and a bloody great army to prohibit certain works or designs from being used, performed or copied. This is not the sort of power to find imbued in a lone individual.

We’ve been singing each other’s songs, telling each other’s stories, and copying each other’s baskets and bison paintings for a fricking long time. To say “Thou shalt not copy nor build upon the works of thy neighbour, that mankind can thus progress the faster” is a modern shibboleth that divides the intelligent from the moron. To further elevate it into a matter of morality is the resort of the latter grasping at justification. We need only wait for their brother, the religious nutter, to consolidate the moral imperative with the approval of a deity and the almighty folly will be complete.

You’re doing yeoman’s service, Stephan. Bravo!

J. Neil Schulman writes:”That’s true also of any situation where a stolen good is fenced.”

But here nothing has been stolen.

It is possible to enforce laws against theft without monitoring and interfering with consensual third-party transactions. For example, to stop my car from being stolen I can lock it, lock the garage it’s in, and sit out on my stoop with my shotgun. The police can arrest anyone trying to break in — that’s not monitoring and interfering with consensual third-party transactions because someone trying to break into my car lacks my consent.

On the other hand, if I publish a song, someone buying a copy from me is a consensual transaction. That someone then uploading a copy to someone else via bittorrent is another consensual transaction. It’s also copyright infringement unless I slapped a CC license on that song, but that infringement cannot be enforced against without preventing at least one of those two consensual transactions, or else punishing it, and thus cannot be done without monitoring at least one of them. In fact, there are only two ways it can be done: I avoid publishing the song at all, or else BitTorrent is monitored and some consensual BitTorrent transactions are stopped and/or punished.

This seems wrong.

Short version: without the ability to impede or punish consensual transactions, the fencing of say a stolen car can’t be stopped once the car has been stolen, but the theft itself remains preventable and deterrable. On the other hand, without such an ability, copyright infringement is neither preventable nor deterrable.

Creation can’t be the basis of property, because it begs the question of ownership, which is established with property. If Smith breaks into Jones’s home, goes into his ‘frige and whips up a four-course meal, he is the creator of the meal, but certainly not the owner. Or if he uses Jones’s artists’ materials to paint a masterpiece, he’s not the owner either even though he created it. Jones owns both the meal and the art. Similarly, Mr. and Mrs. Smith, the parents of young Master Smith Jr., are his creator, but certainly are not his owner, even if they have legal custody of him until he reaches his legal majority. Young Smith is a self-owner, and has rights that no one can violate, including his creator-parents. Creators can destroy their property as long as they violate no one else’s rights in doing so. All of these examples are implications of Rothbarian-formulated property rights in The Ethics of Liberty, which is webbed at the Mises Institute site.Interestingly, Rothbard eschewed patent, but accepted copyright. IMO, the reason he did so was based on following Locke headlong over a nasty cliff (“owning your labor,” which you can’t do, because labor is an activity), although JL accepted copyright too. There’s a libertarian paper waiting to be written on why Rothbard got patent right but copyright wrong.

Bill, re a paper about why Rothbard got patent right but not copyright, I have a section in my Against Intellectual Property about this.

The word “monitoring” has arisen in this discussion. Nobody writes: “Short version: without the ability to impede or punish consensual transactions, the fencing of say a stolen car can’t be stopped once the car has been stolen, but the theft itself remains preventable and deterrable. On the other hand, without such an ability, copyright infringement is neither preventable nor deterrable.“I am not sure what his implication is concerning “monitoring“, but the implication seems to be that copyright holders should somehow have an entitlement to intrude (trespass) into a person’s private space on the mere belief that an infringement may have occured. Not only that but there are even demands that third parties should be responsible for protecting the copyright privilege of a content holder.

This approach to copyright enforcement raises extensive concerns with our legal process. Under this “monitoring” concept; should I feel like it, I could break into anyone’s house to search it for the MP3 file I could not locate. Not only that, but I would have an entitlement to demand that the ISP search its data stream for that file too. What does this mean; that copyright holders can assume that we are all guilty and therefore are entitled to create a police state to protect themselves through “monitoring“?

Thanks for reminding me, Stephan, of your discussion about Rothbard. I’ll have another look.

I just want to see CCTV cameras installed at all water coolers with Joke police watching all of them 24x7x365 for Joke IP violations. I mean, why should someone be allowed to tell jokes that they did not think up themselves? Penalties should be something like those for copying a CD or DVD without permission. Say $20,000.00 fine and 4 or 5 years in jail per joke violation.all the best,

drew — Join the Free Music Pushe

There are some nice counterexamples to the ip-creationist fallacy. Another one came to my mind reading this article. Imagine you own one painting by a 18th century artist who created 20 of them. They depict a famous person and these are the only existing original depictions of him. Now what would happen to the value of your piece if I bought and destroyed the other 19 of them? No doubt the value of the only remaining painting would rise. But does that imply I now gained some partial property rights to it just because it was me who “created” the additional “value”?
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An Objectivist Recants on IP

[Update: See also Letter from a UK Grad Student; Yet another Randian recants on IP; Does Cato’s New Objectivist CEO John Allison Presage Retrogression on IP?; “The Death Throes of Pro-IP Libertarianism”]

From the Mises Blog, 12/4/2009. Archived comments below.

An Objectivist Recants on IP

On the Mises blog, I noticed one of the frequent commentators on IP-related blog threads, one Bala, used to defend the IP position but of late had been taking an anti-IP position. We discussed this privately and I asked him to give me a short write-up about his thought process as he changed his mind on this issue. I find such “conversion” stories interesting, and have seen it in others as well–myself, Jeff Tucker, etc. He sent it to me; I append it below.

 

Pro-IP to Anti-IP: The Transformation of an Objectivist

by S Balasubramanian

[The author resides in Chennai, India, and has a B Tech (Aerospace Engineering)–Indian Institute of Technology (IIT) Madras (’94), PGDM (equivalent of an MBA)–Indian Institute of Management (IIM) Ahmedabad (’98). He is a businessman, running a test prep company that trains students for competitive examinations for admissions to institutions of higher education, especially for those aspiring to get into the top B-Schools in India. He also recently started a pre-school which he hopes to build into a full-fledged school. His email is [email protected]]

It was in August of 2009 that I stumbled, or rather fumbled, my way into mises.org. I was guided to LvMI by none other than the Ayn Rand Institute, which referred LvMI as the place to go to if I wanted to get any understanding at all of economics, especially capitalism. As a long-time fan of Ayn Rand, having read a lot of her fiction as well as non-fiction and actually applying the basic principles of Objectivism in my daily life, I decided to take the tip seriously.

Pretty much to my shock, almost the first thing I came across was a little Rand-bashing and, worse, a denunciation of an idea Rand had explained as being the cornerstone of property rights – that of Intellectual Property.

The ideas I came in with

My ideas on intellectual property were formed almost completely based on Rand’s arguments justifying the idea. It all begins with the fundamental premises that:

    1. Ideas are legitimate property;
    1. Ideas owe their existence to the person who originated or “created them” and hence morally “belong” to the creator.
        1. It is important for a reader to understand that Objectivists use the term “morally” differently. Morality, to an Objectivist, is a code of values that guides man’s actions in the face of choices. It is rationally derived starting with recognition of the Objective reality that we are a part of. It is not a set of edicts or diktats from a higher authority.
        1. Those who copy ideas deprive the creators of the value that should rightfully accrue to them and are hence guilty of stealing (the emphasis is on “rightfully” as it flows from point 2 above).
        1. It is the fundamental responsibility of government to protect individual rights, property rights being the most important of man’s rights.
        1. A system of patent & copyrights is a way by which creators register their claim to creating ideas, a means by which they inform all interested parties as to whose property an idea is
        1. Infringement of patents and copyrights is a violation of property rights and government enforcement of patent & copyright laws is legitimate protection of property rights.

Questions that troubled me

 

In the course of some heated discussions, a few interesting questions came up for which I had to reach deep inside to find the answers

    1. How do you reconcile the facts that recognising and enforcing IP essentially gives some people a right to the physical property of others?
    1. How can ideas and patterns be property?
    1. How do you propose to enforce IP except through the State machinery? Considering that the State has never demonstrated any tendency other than for evil, how is this consistent with the advancement of Liberty?

What made me realise the error in my (and the “orthodox” Objectivist) position on IP

 

To cut a long thing short, the moment I realised that there is a conflict between rights to intellectual property and rights to physical property, I also realised that something is wrong about the whole thing. Such a contradiction usually means that something is wrong with the premises of the person facing the contradiction – me.

Restricting a person from giving physical shape to an idea he has in his mind is clearly a violation of his Liberty and Property Rights. However, this is precisely what implementation of IP means. IP proponents typically tent to retort saying that what I am calling “violation of Liberty and Property Rights” is actually implementation of the property rights of the owner of the idea/pattern that is the subject of the IP.

If it is true that in the name of protecting Intellectual Property Rights, one is actually violating the Liberty of some individuals, in effect one is also saying that the holders of Intellectual Property have an undefined lien on the Liberty of the individuals of the other part. Translated, this gives some individuals the right to enslave others by virtue of being holders of Intellectual Property rights. This made the notion all the more bizarre to me. It was in direct contradiction of the most basic principles of Objectivism that no man may claim the right to initiate force against another.

This led me to realise that there is a fundamental problem in the way different people were defining the concept “property”. At least, the way Objectivists seem to be defining “property”, they are setting themselves up for a conflict between the right to physical property and the right to Liberty on one side and the right to Intellectual Property on the other.

The answer, to me, was to obtain clarity on the relationship between the Right to Liberty and the Right to Property. The question I was trying to answer was “Which of the 2 rights is more fundamental to human nature?”. If Liberty is more fundamental to human nature, it would be futile to define Property independent of Liberty because such a definition is bound to lead to a contradiction.

Liberty or Property – Which is more fundamental?

To me, the answer was obvious – Liberty. The Right to Liberty is a logical corollary of the Right to Life and is in fact a restatement of the latter focusing on a specific part of it. The Right to Liberty, as per Objectivism, is nothing more than the freedom to act as per the judgement of one’s rational mind. Action being essential to life and in fact being an integral and inviolable part of the definition of the concept “Life” (a sequence of self-generated self-sustaining actions), violation of the Right to Liberty is a violation of the Right to Life itself.

Once again taking from Rand herself, value is that which you act to gain or keep. Thus, gaining or keeping value is impossible unless one is free to act. Thus, it is futile to place “property”, which is nothing more than the value one acts to gain or keep with the aim of sustaining one’s life, above that which is a prerequisite to the process of gaining or keeping value, i.e., action. Translating this into a simple inequality,

Right to Life > Right to Liberty > Right to Property

 

Therefore, the choice was clear – to define the concept “property” in terms of the more fundamental concept “liberty”. The outcome is bound to be a non-contradictory system of Property Rights where it is possible for Liberty and Property Rights to coexist.

Defining the concept “Property”

(The most fundamental premise I used in this discussion is that initiating force against another is a violation of his Right to Liberty. As per my limited understanding of Objectivism, this is how Ayn Rand defined Liberty.)

Objects exist in 3 states – existent, possession and property. An apple exists. When I hold the apple in my hands, it is in my possession. When my possession is morally justified, i.e., when the apple “ought” to be in my possession, it is deemed my “property”.

Clearly, not every “possession” is “property”. That raises the question how and when a “possession” becomes “property”. The answer to the question is to be found by a study of the morality of the actions that went into gaining and keeping “possession”. If you obtain possession the “right” way, it is morally yours, i.e., you are better off with it than without. On the other hand, if you did something “wrong” in the process of gaining possession, it is not morally yours, i.e., you are better off without it than with it. Objectivists in particular should have no difficulty evaluating issues from a moral perspective and to talk of issues like “right” and “wrong” because they ought to be used to deriving these logically from reality, which they consider absolute.

From an Objectivist perspective, there is only 1 “wrong” that a man can commit in the process of gaining possession of an existent – that is to initiate force against other men in the process. Thus, possessions to gain which man has to necessarily initiate force against others will not get moral sanction. Such possessions cannot be considered property.

Equally fundamental to the concept “property” is the right to exclude others from total or partial enjoyment of the value that the property holds. Exclusion of others requires specific actions from the person in possession of an object. The nature of the actions one needs to undertake in order to exclude others from one’s possessions also influences the moral status of the possession in question. If excluding others requires retaliatory force only, such exclusion would be a morally sound action. If, on the other hand, exclusion itself involves initiation of force, it would naturally be immoral and the author cannot exclude and be right at the same time. Such possessions that create contradictions by their very nature cannot and should not be deemed property.

Applying this idea to the 2 broad categories of property – physical and intellectual, physical possessions clearly justify the use of the term “property” to denote their ownership. The taking possession of or the exclusion of others from physical objects does not necessarily involve initiation of force. On the other hand, the taking away of a physical good without the consent of the legitimate owner always involves the initiation of force. Thus, the statement “no man shall take away the physical property of another man without his consent” is equivalent to saying that “one man may not initiate force against another”. In this sense, it is no different from the basic Objectivist principle of non-initiation of force.

Ideas and patterns, on the other hand, presented a problem when I tried to treat them as “property”. While there is no denying the value of ideas in human advancement, exclusion of other individuals from an idea or pattern necessarily involves the initiation of force. For instance, how else is A to prevent B from incorporating A’s idea in his B’s product other than to force himself upon B’s property and coerce B to prevent him from doing so, thus violating B’s Liberty? In effect, recognising ideas and patterns as property is tantamount to saying that A has a moral right to initiate force against B simply because he has coined an idea. Thus, as an Objectivist, classifying ideas and patterns as “property” takes me into dangerous territory where I am ready to label the initiation of force as legitimate.

Even worse than the above is to codify IP into law and giving the State and its machinery additional legitimacy engage in rampant violation of Liberty. As an Objectivist, I hate the State as much as anyone else can. To see the State as an ally just because it is the only agency capable of enforcing Intellectual Property Rights is downright immoral. I realised that once there, there was no turning back. I become as evil as the very collectivists and statists that I am trying to condemn and fight against.

I am now left with a very moral choice – do I or do I not recognise ideas and patterns as “property”. If I should remain true to my Objectivist roots (which I value for good reason), my only option is to apologise to Rand for disagreeing with her strongly and telling her that she was wrong on this one and that I am not ready to apply the label “property” to ideas and patterns.

(While in the above analysis, I might appear to be going in circles around essentially 1 idea, the non-initiation of force, given that that principle is the most important Objectivist social principle, the one that defines how an individual ought to deal with the society he lives in, I do not think I am guilty of circular reasoning. Rather, I am making my axioms clear and validating all my conclusions against my axioms.)

Conclusions

An Objectivist cannot and should not support the notion of Intellectual Property because it violates fundamental Objectivist principles. Rejecting the validity of “Intellectual Property” does not mean that one is rejecting Objectivism. Anyone who claims otherwise needs to be reminded of Ayn Rand’s warnings against package deals. He who wishes to say “Rand said otherwise” needs to be reminded of Rand’s other very important point – that no human may consider himself or any other human being to be infallible, not even Ayn Rand herself.

{ 128 comments }

Gabe December 4, 2009 at 4:08 pm

I look forward to hearing the conversion story from “step back”.

terry_freeman December 4, 2009 at 4:12 pm

Interesting! Not only has S Balasubramanian discovered why Objectivism, rightly applied, should oppose Intellectual “Property”, but that Objectivism, properly speaking, should object to the State itself as a prime violator of rights.

Here’s hoping this particular meme spreads widely!

Steve R. December 4, 2009 at 4:51 pm

Up until the Sony Rootkit debacle, I was pretty much ambivalent. I had casually observed how so-called intellectual property was becoming a game of extortion. Since then, I have been ridding the pendulum towards IP Nihilism.

Over the last couple of years I have also become to believe that Ayn Rand’s concept of “Objectivism” is contributing to the demise of the US. The near collapse of our financial system is anecdotal evidence that “Objectivism” essentially allows anyone to feel justified in their actions even if means collateral damage to society. To reword this a bit: “I am free to cheat you. If I succeed, it is your fault. Tough luck.”

Jesse Forgione December 4, 2009 at 5:05 pm

Very good analysis. I’m sort of in the same boat, as I’ve always been an admirer of Ayn Rand, but disagree with her mainly on those same two points: Intellectual Property, and the need for a state. But like Terry said above, I think my positions, rather than Rands, actually follow logically from the tenets of Objectivism.

Brian Macker December 4, 2009 at 5:27 pm

Wait till he figures out that Objectivism itself is a flawed philosophy.

I’ll answer his questions.

1) Copying rights do NOT give you control over other peoples property unless they commit the act of co-mingling their property with yours. They have to trespass against you (or your agents) first, and any control obtained is in terms of restitution to the copying right holder.

2) Ideas and patterns can be property when they are instantiated in a physical object. An object over which you have physical property rights and that no one has the right to use for any purpose without your permission (which includes using it to copy it).

3) The same way that any other right would be enforced under any system. How do you propose to enforce land titles, laws against murder, etc. without the state. Whatever answer you come up with can be used to enforce the property rights one has in the object that was criminally copied.

Jeffrey Tucker December 4, 2009 at 5:33 pm

This is a wonderful reflection. I especially like it because it takes us step by step through a difficult thought process, and it is a process unique to the person here. I came about the anti-IP conclusion through a different route – my own path was less theoretical and more practical. The theory I became convinced of after I understood the practicalities. The point is that 1) this is a hard issue to think through and so it takes time (it took me some 6 years or more), 2) every path to this realization is slightly different, and 3) the subject is deeply challenging to everyone, no matter your starting point.

Taylor December 4, 2009 at 5:37 pm

IP, like socialism generally, necessitates a global regulatory apparatus (global government) to actually enforce IP claims, because a piece of IP concomitantly exists in all languages, cultures and societies on earth as soon as it is created. Otherwise, one could simply flee one IP domain to another country where IP is laxly enforced (as is currently the case between US and China, for instance) to produce based off the IP there.

Do Objectivists/IP-supporters call for One World Govt to be consistent with their principles?

Additionally, IP can result in a person committing an IP-crime without even being aware that they’ve done so, for example, if the IP was created at a far enough distance that they were unaware of its creation, or furthermore if the IP was created in a language they did not understand so they were unaware of the significance of its creation.

Kyle Townsend December 4, 2009 at 6:10 pm

I have also struggled with the issue of IP. Having had some practical experience with “real” capitalism during the emergence of the Internet as a popular medium, I have come to believe that IP runs contrary to the natural course of capitalist enterprise. When a new “thing” comes along (such as the Internet), many people see the potential of it. Some jump in and commit capital to it. Those who get there first tend to do very well for some period of time. Inevitably, more and more people get into it (increasing the supply) until demand is met and then prices begin to fall. They fall until an equilibrium is reached between the (broad) return on capital demanded by investors and the price. At this point, the system has achieved a high level of efficiency and profits are comparatively modest. Similarly, the holders of intellectual property can and should be rewarded by bringing their ideas to market. By virtue of being first, they will experience a period of high profitability. As others copy and implement their idea, their profits will fall, just as they do in all other areas of capitalist endeavor. Only through coercion can they artificially prolong the period of high profitability.

Stephan Kinsella December 4, 2009 at 6:22 pm

Taylor: “Do Objectivists/IP-supporters call for One World Govt to be consistent with their principles?”

Unfortunately, yes.

Jesse Forgione December 4, 2009 at 6:30 pm

Steve R.,
I’m not sure how you’re connecting Objectivism with the financial collapse. Is it Greenspan? It’s Greenspan, isn’t it. If so, you should know he’s strayed a long way from the guy who wrote “Gold and Economic Freedom,” for Rand’s newsletter, where he describes the Fed as an instrument of tyranny. (it’s also in “Capitalism, the Unknown Ideal”)
No one who could reasonably call himself an Objectivist thinks he has a right to cheat others. As S.B. points out above, the non-initiation of force is one of the central ideas in Rand’s philosophy.

Side note: Rand was friends with Henry Hazlitt, who introduced her to Mises, whom she greatly admired. She was influential on Rothbard, Ron Paul, and other Austrians.
It’s clearly Austrian theory that informs the economic ideas in Atlas Shrugged, and I’ve always suspected that the name “Hugh Akston” (the philosophy professor) was a reference to Mises’ “Human Action,” though I’ve never heard that it was.

ABR December 4, 2009 at 6:31 pm

In the absence of IP, a creator becomes like a worker in a commune: the fruits of his labour are distributed equally among the communists.

Bala’s arguments are legit. Macker’s objections are legit, too.

If the State were to vanish, Bala and Tucker and Kinsella might want to form a society in which IP plays no part. Macker might want to form a society that recognises some form of IP.

As long as there is a State, our arguments are somewhat moot.

Craig December 4, 2009 at 6:32 pm

“I am free to cheat you. If I succeed, it is your fault. Tough luck.”

A very, very odd interpretation of Rand, indeed.

Now, just because Alan Greenspan threw over whatever objectivist views he’d once held (I blame Andrea Mitchell) about sound currency, we’ve no reason to conclude that Rand’s philosophy is destroying the country.

Craig December 4, 2009 at 6:36 pm

I should also add that it’s good to see Objectivists questioning the philosophy. You don’t need to renounce it to bring up points that could use refinement. One of the great weaknesses of Rand’s personality cult has been to attempt to squelch dissent.

After all, if she could build on Aristotle, we can certainly build on her.

newson December 4, 2009 at 8:04 pm

i, too, was surprised by bala’s change of position. he had argued his support for ip along the usual objectivist lines, and very doggedly, too.

it’s generally the case that once angry words have been exchanged over an issue, the parties’ views become entrenched and thereafter there’s no budging them. loss of face tends to close the minds, and with insults the key’s get tossed.

bala’s damascene conversion is proof that blogging is not always a dialogue of the deaf. and i feel a little sheepish for having judged all objectivists as refractory cultists. mea culpa.

that he came around to the anti-ip view is an added bonus!

newson December 4, 2009 at 8:16 pm

abr says:
“f the State were to vanish, Bala and Tucker and Kinsella might want to form a society in which IP plays no part. Macker might want to form a society that recognises some form of IP.”

mackerville then rallies an army to conquer kinsellaville, where the rampant “stealing” of ideas has gone unpunished.

Steve R. December 4, 2009 at 9:22 pm

@Jesse Forgione and Graig: Very legitimate questions and ones that I have been thinking about. It seems to me that Ayn’s perspective was from the “self”. Balasubramanian wrote “Morality, to an Objectivist, is a code of values that guides man’s actions in the face of choices. It is rationally derived starting with recognition of the Objective reality that we are a part of. It is not a set of edicts or diktats from a higher authority.” I take this to mean that “I am always right and I am not constrained in my actions by the opinions (laws) of others”.

Now in terms of the financial crisis/destroying our country, our corporate and elected leadership seem to be making the majority of their decision based on their self interest to the exclusion of the social good. Yea gads, I must be a socialist. I guess to a degree I am, but my point is that our leaders are using their free will to make decisions irrespective of the damage it causes others.

As a minor illustration, the Washington Post ran a sob story of how a single(?) Mother who seemed to be essentially on welfare was able to buy a $600,000+ house. Of course, she is now in foreclosure nightmare. The Post also interviewed the realtor who sold the woman the house. What was the response of the realtor? A very arrogant: “I was simply trying to help her”. Seems to me that the realtor lacked any ethical conscience (moral break) to assure that the woman was qualified to buy the house.

From what I understand of “Objectivism” the realtor did nothing wrong since she maximized her income and she had no responsibility to the other person. But from what I understand of Libertarianism, she (the realtor) was wrong because she “damaged” the other person by selling a house that she obviously could not afford.

JL Bryan December 4, 2009 at 9:30 pm

“our leaders are using their free will to make decisions irrespective of the damage it causes others.”

They are using state power to do so.

Steve R. December 4, 2009 at 10:05 pm

@JL Bryan, in a sense you are correct. All you have to do is look at the influence lobbyists at the Congressional Supermarket.

But the state does not FORCE corporate leaders to pay themselves excessive compensation or to make loans to people that can’t afford them. If you have free feel, accept the responsibility for your actions.

Bala December 4, 2009 at 10:18 pm

Brian,

” Copying rights do NOT give you control over other peoples property unless they commit the act of co-mingling their property with yours. ”

Your statement assumes that the idea is legitimate property. That is the very notion I tried to point out as an error. The way I see it, there is no comingling of my property with yours but rather an enhancement of my property with an idea.

” Ideas and patterns can be property when they are instantiated in a physical object. ”

What happens when you sell a product in which you have incorporated your idea to me? The product is now my property. By studying it carefully (even if it means taking it apart), making observations and reconciling them with my current store of knowledge, I could get the idea without any violation of your property rights. How would you address that?

” The same way that any other right would be enforced under any system. ”

Rights do not require a system for them to be valid. Rights exist as a concept irrespective of whether or not other people or society in general (which is nothing more than a certain unspecified number of people) recognise their validity and “enforce” them. A society which recognises and respects rights can prosper. One that doesn’t necessarily slides into poverty and strife.

Bala December 4, 2009 at 10:37 pm

Steve R.,

” I take this to mean that “I am always right and I am not constrained in my actions by the opinions (laws) of others”. ”

That would be a very incorrect interpretation. The correct one would be as below.

I need to act because failure to act means death. I need to place my selfish interests above those of others while I act because failure to do so will again eventually lead to death. This, however, does not mean that I deliberately act to harm others because doing so is against my rational long-range selfish interests.

As long as my actions incorporate a recognition of and respect for the Rights to Life, Liberty and Property of others, my actions are absolutely moral and right. Rights also happen to be a means of aligning my selfish interests with the selfish interests of all people who constitute society. So, when I act within the limits of my rights, I am not and cannot be harming the interests of society at large.

Commenting on the specific example of the single mother on welfare who borrowed $600,000 to buy a house, why are you so keen to absolve her of the error of borrowing a sum as big as $600,000 when her known (to her) sources of income do not indicate an ability to repay? Why are you trying to place the blame for the irrationality of the buyer on the real estate agent?

Secondly, if you bother to stop and ask yourself the question “What made it possible for the financial system to extend credit to absolutely unworthy people like this woman on welfare?”, you will realise that the entire problem stems from the corruption of the financial system thanks to fractional reserve banking and fiat money. The latter being substantially a result of Imperialist, Mercantile and Welfare State policies adopted by governments, it is a wonder that you are quick to absolve the State of its blame and instead blame the real estate agent who sealed the deal.

Stop blaming Objectivism for the moral weaknesses of a few people. A true Objectivist would not have become a fractional reserve banker because he would recognise FRB as fraud and an immoral act.

Jesse Forgione December 4, 2009 at 10:47 pm

Steve,
Rand wrote at great length (her favorite way to write) about what she called “rational selfishness,” and how it differed from simply acting on irrational whims. The Fountainhead is, in part, a comparison of her model of an independent “man of ability” (Roark) to Neitche’s “superman” (Wynand) which she saw as parasitical, rather than self-interested (she would say they are exclusive). The concept is akin to Hazlitt’s “mutualism” in that it recognizes the fact that when rightly understood, the interests of individuals do not conflict, but tend to be aligned, which allows for the division of labor, and ultimately, civilization, itself.
The financial collapse is the necessary correction to an artificial expansion of easy money and credit from the Fed. In a free market, no selfish person would lend their money, unless they thought they were getting it back with interest. Lending standards are not the result of charity, but of self-interest. For more on the housing bubble, and the moral hazard created by the Fed through the GSE’s, just go to youtube and type “Peter Schiff.”

newson December 4, 2009 at 10:58 pm

…besides which, denying her a $600 000 mortgage for her own good, smacks of paternalism. what if that welfare-mum actually flipped the property before the melt-down, and made a pile? many hoped to do so, and some actually did.

even to argue that the broker was unethical one would have to assume an ability to predict the exact timing of the melt-down.

the customer is always right, even when she’s not.

socialism infantilizes.

John Donohue December 5, 2009 at 12:14 am

this is not hard to explain. Just read Bala’s “Thoughts Questions that troubled me”

1) the purchaser of a product has purchased a manifestation of the duly-owned thought of the originator. The limits of usage are defined by law. Bala already has this upside down on entry. If Bala want to give away or manufacture an item so purchased, let him remove that which belongs to another in the first place and then have at it.

2) The law, informed by reason, adjudicates if someone’s idea proffered as unique indeed is unique and would not exist — at the moment of thought — without the thinker. Any thinker of a unique thought, product or process not wishing to be a useless dreamer will create tangible existents that have no meaning without the “Thought.” This ipso facto imbues the originator with right to control the limits of use of that product a priori.

3) He is already an anarchist totally convinced the state is evil qua state.

The only astonishment is that he took so long to flip over to his true colors.

Also, I wouldn’t get so proud of one “convert.” Please take note of the thousands and thousands of people who have come from Ayn Rand hoping to discover a supporting soul in Ludwig von Mises only to find his house full of thieves. The anarchism rampant is vivid and virulent. We turn away totally from your world view. So that is an un-Convert. Add ‘em up.

John Donohue
Pasadena, CA

newson December 5, 2009 at 2:00 am

…as opposed to john donohue, who assumes that all law is necessarily good (provided it’s informed by somebody’s concept of reason).

with that premise, there’s nothing you can’t justify.

Bala December 5, 2009 at 2:19 am

John Donohue,

” the purchaser of a product has purchased a manifestation of the duly-owned thought of the originator. ”

The question that I am raising is on your use of the phrase “duly-owned”. Your next statement reveals your mistake.

” The limits of usage are defined by law. ”

How does “law” get defined in the first place? Are you not placing the cart before the horse?

” Any thinker of a unique thought, product or process not wishing to be a useless dreamer will create tangible existents that have no meaning without the “Thought.” ”

What happens when the tangible existent incorporating the unique thought becomes my property because I bought it? What is “wrong” in my studying my property, understanding how it works and then using my newly acquired knowledge to acquire value?

On the other hand, how would you be “right” in preventing me from inspecting my property, acquiring the understanding and then incorporating the knowledge in my property (the raw materials/components that I acquire), given that all this requires you to trespass upon my property and then physically assault me?

” If Bala want to give away or manufacture an item so purchased, let him remove that which belongs to another in the first place and then have at it. ”

Assuming it is your idea you are talking of, you come over and remove it. I would not want to rob you of the privilege of feeling like a modern day Shylock. Just remember – your idea and nothing more. Not a milligram of what would constitute my property.

Kerem Tibuk December 5, 2009 at 3:37 am

Oh. So Bala came from ARI to LvMI and before reading about Rothbard and his theory of property based on natural rights, he was bombarded with Kinsella nonse.

That explains a lot.

Tell me Bala. In all your personal exchanges with Kinsella has Rothbards name ever been mentioned?

I can assure you. If you read Rothbard regarding Ethics, you will no longer make contradictory claims such as, “individuals rights are both natural and are only meaningful in a social context”.

newson December 5, 2009 at 3:41 am

bala can rest easy. apostacy is a basic human right according to the unhcr.

Brian Macker December 5, 2009 at 8:15 am

“Your statement assumes that the idea is legitimate property.”

No it can depend completely on the physical object and agreements we have made on how you can use it.

For example, I could say that you can read my diary if you sign this agreement never to divulge any of the information therein without paying me a half million dollars. You can agree or not.

Now you could use your property, a copy machine, and some paper, to copy my diary and distribute that. However, you have co-mingled my property, the diary, with yours the machine and paper, to produce the copies. My diary was a factor in the production of the goods you produced.

The original is always a factor of production. The copied goods cannot be created without it (a causal relationship), and it is a physical object so is covered by property rights.

“What happens when you sell a product in which you have incorporated your idea to me? ”

If I retain copying rights then we are co-owners. Just like if I sold you land while retaining mineral rights. Or I could “sell” it to you as a kind of rental agreement. This is about freedom of contract. There isn’t only one single way to transfer property.

“By studying it carefully (even if it means taking it apart), making observations and reconciling them with my current store of knowledge, I could get the idea without any violation of your property rights. How would you address that?”
I wouldn’t “sell” to you unless you agreed not to do such things.

“Rights do not require a system for them to be valid.”
I wasn’t justifying their validity. You were questioning their validity on the grounds that one might need a state to enforce them. Well that goes for any valid right. You might just need a state to enforce them.

Copying rights, as I have described them in detail before in the comments sections of other articles, are based on rights we already have. The right to private property, the right to freedom of association, the right to form private contracts, the right to self defense, the right not to be defrauded, etc.

Murray Rothbard understood this and if you somebody wants to claim he was a Statist then go ahead. It will be real funny to watch him being called a Statist when he liked to call others socialists at the drop of a hat.

The problem I have with the incessant attacks on IP here is that it lumps too many things together. Sure the government has created patents (which are not based on property rights), and have overextended copyright law beyond what is justified by rights, however that doesn’t mean one should throw out the baby with the bath water.

I think everyone here would agree that government granted monopolies are wrong. That doesn’t however mean that every kind of monopoly is. Some kinds of monopoly are justified by natural rights. For example if I sell Macker Pies and sign an agreement with you that you will be sole distributor of my goods. Then you have a monopoly on the distribution of Macker Pies.

Brian Macker December 5, 2009 at 8:30 am

Newson,

“mackerville then rallies an army to conquer kinsellaville, where the rampant “stealing” of ideas has gone unpunished.”

Might have to send in an anarchist style enforcement team if someone from Kinsellaville steals a book from Mackerville and then copies and publishes it. Not different than if someone from Kinsellaville murdered a member of Mackerville. [Remember that it could be that there are no “villes” and that these might be competing protection agencies and judicial systems in a anarchist society]

You see no one from Mackerville is willing to sell goods with any valuable level of intellectual content to Kinsellaville because they have been found to violate copyright contracts. Thus the people of Kinsellaville have taken to stealing from Mackerville because the standard of living is higher where property rights are enforced.

Of course the people of Mackerville don’t care if the communists in Kinsellaville voluntarily share their innovations. In fact, there are communes within Mackerville where some groups have decided to share innovations and mental product originated internally, between themselves but not externally. For example the IEEE.

Of course there is absolutely no reason to set up an commune within Mackerville for those individuals who wish to share their work product with everyone. They can share their writings, ideas, and inventions freely without the overhead of contracts and organizations.

Olve December 5, 2009 at 8:49 am

Simply said, your argument reads: Objectivism implies the non-aggression principle and the non-aggression principle is incompatible with intellectual property. However, Objectivism does not imply the non-aggression principle, and the principle has been clearly rejected by Rand and other prominent Objectivists.

Steve R. December 5, 2009 at 9:35 am

@Bala, Jesse, and newson: Single examples that I have used will not “prove” that “Objectivism” is a bankrupt philosophy. Single examples are also flawed as they are open to a lot of “what if or that or but” speculative spin.

We seem to agree that our financial meltdown is the result of “bad” behavior on the part of some. The question then becomes whether those who formulated the “bad” behavior were influenced by Rand to act in that manner. Since I do not have any facts that would document this, I can’t go further.

So I guess we are at the agree to disagree stage. Good discussion.

Bala December 5, 2009 at 10:13 am

Olve,

You said

” However, Objectivism does not imply the non-aggression principle, and the principle has been clearly rejected by Rand and other prominent Objectivists. ”

I don’t know what other prominent Objectivists have said but here is what Rand said in her book “The Virtue of Selfishness” (Centennial Edition, Page 36)

‘The basic political principle of the Objectivist ethics is that no man may initiate the use of physical force against others’

In case she has withdrawn this or said something to the contrary elsewhere, please do give me the references.

Bala December 5, 2009 at 10:27 am

Steve R.,

” The question then becomes whether those who formulated the “bad” behavior were influenced by Rand to act in that manner. ”

I’m not sure you could blame Rand for behaviour that started being displayed a couple of centuries before she was even born.

Steve R. December 5, 2009 at 11:31 am

@Bala: True you cannot blame someone for pursuing a “behaviour that started being displayed a couple of centuries before she was even born.”. But what I said were people who “were influenced by Rand to act in that manner.?

There are many people who purport to be living withing the context of a particular philosophy, but their actual free will actions belay that. In the case of “Objectivisim”, I am having a serious philosophical credibility gap. However, my belief in the flaws of “Objectivism” does not negate it, witness all the people who believe it to be valid.

JL Bryan December 5, 2009 at 12:07 pm

“For example, I could say that you can read my diary if you sign this agreement never to divulge any of the information therein without paying me a half million dollars. You can agree or not.

Now you could use your property, a copy machine, and some paper, to copy my diary and distribute that. However, you have co-mingled my property, the diary, with yours the machine and paper, to produce the copies. My diary was a factor in the production of the goods you produced.”

In this case, the copier has violated contract, similar to violating a nondisclosure agreement. You are introducing a contract situation on top of the IP issue, then focusing on that and ignoring the IP issue itself.

“You see no one from Mackerville is willing to sell goods with any valuable level of intellectual content to Kinsellaville because they have been found to violate copyright contracts. Thus the people of Kinsellaville have taken to stealing from Mackerville because the standard of living is higher where property rights are enforced.”

What if someone from Mackerville decides to sell his product in Kinsellaville anyway? How will he be penalized? Who has a legal claim enabling them to come between this voluntary seller and voluntary buyer?

What if someone from Mackerville sells his product to a third town, then someone from Thirdtown re-sells that product to Kinsellaville?

John Donohue December 5, 2009 at 12:40 pm

Bala: “How does “law” get defined in the first place?”
This goes to a glaring omission: you did not address my Point3 against your ‘Trouble3.’ You start with the anarchist premise. You are an anarchist. All government, law, objectified protection against aggression is evil and illegitimate.

So, you are the horse, in all your savagery, and want no cart of objective law. Okay. Those are your true stripes.

I have a saying that those who insist on perfection have not surrendered to objective reality on it’s terms. Well, man is a finite being. His context is living on earth with others and possessing a mode of cognition and will that fails (kills himself) under either force or wishful thinking. Perhaps if you read Ayn Rand you might come to grasp this and respect it.

The anarchist’s lust for civilization with no government is a Platonic wet dream. They want the “ideal” to come to earth by magic and trump reality. Well reality is that man requires a culture of protection from aggression. The “Law” is the best attempt by rationals to fix the dividing line of property, both physical property and intellectual property. Where does my property end and yours begin? In your addiction to perfection you declare ‘no matter what, it will be imperfect so I am going to go ideal and declare that all law is aggression/murder/theft’. Juvenile petulance.

You are surrendering reality to your fantasy wishes. Instead of contributing to an ever more accurate body of objective law, you opt for the law of the jungle, kill or be killed.

So be it.

Jesse Forgione December 5, 2009 at 1:25 pm

If you have an idea that you don’t want others using, don’t tell it to them (and no one may force you to). But no one has the right to stop someone else from using what they know to improve their own property. If I solve some problem with a new idea, it doesn’t grant me the right to go around stopping others from using the same idea, or similar ideas they may have that are based on it.

If I taste Macker’s delicious pies (without stealing them, of course), and I’m inspired to improve upon my own pies, he doesn’t become a partial owner of my pies. Of course it would be fraudulent for me to call my pies “Macker Pies,” if he doesn’t endorse them, but he certainly may not tell me to make pie less delicious than I know how to.

I agree with the philosophy of Objectivism, but I don’t call myself an “Objectivist” because I have no patience for the unthinking cult that sprang up around Rand and her associates, and because I held basically the same philosophy (though perhaps less well defined) before reading Rand. The philosophy itself is far from “bankrupt” but applying it consistently would lead one to disagree with some of Rand’s conclusions. She didn’t fully appreciate that the State is criminal by definition, or that IP constitutes the initiation of force.

Jesse Forgione December 5, 2009 at 1:39 pm

John Donohue,

It’s you who hasn’t understood Rand. Her’s was a philosophy of uncompromising ideals. She opposed the kind of short-sighted pragmatism that you’re advocating, and would never have conceded that the world simply had to continue on whatever destructive path it happened to be on. She said that “evil has no power but the sanction you give it.”
Pragmatism is essentially the sacrifice of long-term interests for short term laziness.

Silas Barta December 5, 2009 at 1:59 pm

Well, let me help you out, Bala:

How do you reconcile the facts that recognising and enforcing IP essentially gives some people a right to the physical property of others?

Probably the same way you recognize that all property rights place limits on other property rights, and homesteading only gets you some rights (not e.g. the rights to all the heavens above the plot of land).

How can ideas and patterns be property?

Probably the same way that patterns of EM waves can be property, I’m guessing.

How do you propose to enforce IP except through the State machinery?

Probably the same way civilization always developed, I’m guessing — by mutual recognition of social conventions that eventually get codified. Some groups of people establish claims to property, enough respect for and enforcement of others rights is established, and courts (and thus the public) oppose you if you act in contravention of these.

It can happen — and has happened — for IP just as for other kinds of property.

Glad I could help resolve your intellectual crisis, Bala. Just give me a holler whenever you have another one.

John Donohue December 5, 2009 at 2:01 pm

Jesse Forgione, nope.

Even beyond you not grasping my context of “idealism” as a Platonic reference, you are so far off base that your post cannot even be considered to have responded to mine in any way.

Rejected.

Jesse Forgione December 5, 2009 at 2:43 pm

John Donohue,

“The State” is not synonymous with “objective law,” any more than “God” is synonymous with “morality.”
You place the same irrational faith in a gang of criminals that mystics place in the supernatural. In this sense you are no different from the socialist who places irrational faith in a central planner.
In both cases the object of faith performs the function opposite to that which the faithful expect it to. Just as the concept of God negates the concept of free will, and thus morality, The State is the negation of objective law, as it places absolute power in the hands of criminals.
You assume, as Rand did, that the there is no alternative but “the law of the jungle.” To that I would say “check your premises.” The market has proven to be better than government in every conceivable way, and people admit this, while in the same breath saying that some things are too important to leave to the market. But these are the MOST important things to allow the market to solve. They are too important to leave to government.

John Donohue December 5, 2009 at 2:56 pm

A ‘free market’ in justice = unrestricted gang warfare.

That is enough to negate your post and all of anarchism.

Brian Macker December 5, 2009 at 3:15 pm

JL Bryan,

“In this case, the copier has violated contract, similar to violating a nondisclosure agreement. You are introducing a contract situation on top of the IP issue, then focusing on that and ignoring the IP issue itself.”

What IP issue? I already said it all rests on property rights, contract rights, etc. There is no “IP issue” in the sense you understand. This is NOT patents. This isn’t about mystical ideals but about real world instantiations.

Just as if you stole my mold to make copies of my original work using your casting materials then their shape (intellectual content) would provide evidence of your crime, and my melting of those statues a restoration of your resources to their original state, or a payment of restitution to me of the added value my mold provides above and beyond the raw materials. Of course you pay court costs, investigative fees, etc.

“What if someone from Mackerville decides to sell his product in Kinsellaville anyway?”

You mean what if someone in Kinsellaville decided to agree to a copyright contract because that is the only way he could by copyrighted materials? Then he would be bound by it.

The seller cannot “sell” that which he doesn’t own, the copying rights. Therefore if he is trying to sell something already under copyright contract to anyone anywhere it will still be bound by the copyright contract.

If the seller did not inform the buyer then the “buyer” would be treated the same as any receiver of stolen goods. However in this case with much more assurance that he is NOT the owner of the right to copy the object.

“Who has a legal claim enabling them to come between this voluntary seller and voluntary buyer?” The copyright holder, of course, but only if the seller fails to inform the buyer of the co-ownership, or buyer fails to respect that co-ownership.

If somebody had sold his mineral rights on his property then he cannot just resell to destroy those rights. He no longer owns those rights to sell. Or perhaps he never had them because he bought the property with the original encumbrance. Likewise the right to copy the object was never bought by the owner of the copyrighted object. So he cannot sell it to a third party.

“What if someone from Mackerville sells his product to a third town, then someone from Thirdtown re-sells that product to Kinsellaville?”

What if you sold your land but retained mineral rights via contract. What does it matter how many times the land title is sold? Answer none.

Brian Macker December 5, 2009 at 3:23 pm

Jesse,

Macker’s pies was an example of a free monopoly contract. It was not my intention to argue you couldn’t taste my pies and try to make your own recipe. Of course we could always come up with such a contract before I agree to let you have one of my pies. It could stipulate that only you can eat the pie and that you agree never to create any of your own pies, of any kind. The contract can read in whatever fashion we can come to an agreement.

Brain Macker December 5, 2009 at 3:36 pm

“It’s you who hasn’t understood Rand.”

No it is Rand who hasn’t understood Rand.

Stephan Kinsella December 5, 2009 at 4:39 pm

donohoe: “A ‘free market’ in justice = unrestricted gang warfare.

That is enough to negate your post and all of anarchism.”

An assertion is not enough to “negate” anarchism–especially a confused and false one like this. First, what we have now is gang warfare–every state in the world is criminal, nothing but a mafia, a gang. And they have wars with each other, and with their own citizens, in the form of forced used to control and tax them. Second, Objectivists are supposed to be against aggression. Yet the state that you support uses aggression. It is unjustified even in your own terms. The fact that you don’t see how a stateless society might work is irrelevant; your own confusion or ignorance doens’t justify the aggression the state needs to commit in order to exist.

Stephan Kinsella December 5, 2009 at 4:52 pm

Silas:

How do you propose to enforce IP except through the State machinery?

Probably the same way civilization always developed, I’m guessing — by mutual recognition of social conventions that eventually get codified. Some groups of people establish claims to property, enough respect for and enforcement of others rights is established, and courts (and thus the public) oppose you if you act in contravention of these.

It can happen — and has happened — for IP just as for other kinds of property.

Spoken like someone who has no clue as to the nature of actual IP systems. Typical libertarian IP advocate: Silas, you have no idea of what a libertarian IP right would look like–every time we point out an injustice in the current system, you amateurs crawfish and say, “well, I’m not in favor of that!” So if we say, what does your ideal IP system look like? You say “I’m not an expert!” The only ones who try to concoct a system end up with obviously unjust, unworkable systems (Galambos’s crankish ideas, Schulman’s logorights) or just something based on today’s legislated schemes (Rand).

And now, not only do you have no idea what IP rights should look like, now you have no idea how they could arise on the free market, absent legislation. How? we ask. You say–somehow!

MichaelM December 5, 2009 at 5:12 pm

Ayn Rand explained that Objectivism was the title she gave to her personal philosophy and warned that she was the only Objectivist, simultaneously advising those who agreed with her ideas and adopted them into their own personal philosophy to refer to themselves as “students of Objectivism”. While in the burgeoning prominence of her ideas today, that distinction appears to have disappeared altogether, the underlying principle still opts.

Whatever number of Rand’s ideas Bala has adopted and lives by, in the context of this post and these comments, he and Kinsella are perpetrating a hoax by referring to him in the title as an “Objectivist” sans some qualifying adjective. When all is said, read, and done, it is abundantly clear that Bala is not recanting agreement with an Objectivist tenet, he is recanting his agreement with what he mistakenly thought the Objectivist position is but actually is not.

“Any material element or resource which, in order to become of use or value to men, requires the application of human knowledge and effort, should be private property—by the right of those who apply the knowledge and effort.” [Capitalism The Unknown Ideal, p.122]

“Bear in mind that the right to property is a right to action, like all the others: it is not the right to an object, but to the action and the consequences of producing or earning that object.” [The Virtue of Selfishness, p.94]

There is no evidence here that Bala has ever fully understood or wholly adhered to the Objectivist principle that objects per se cannot be physical property without the application of the reason and action that causes the consequence of their value. They cannot be owned by anyone, because they are not caused by anyone. They become property rather as the embodiment of that which is owned — the reason and action applied to them that causes the addition of value.

Thus, there is no conflict between the rights to intellectual property and the rights to physical property. Both are rights to possess, use and dispose of the consequences of reason and effort. The only difference between the two is that intellectual property does not require any application of reason and effort by subsequent owners to maintain its value like physical property does. Consequently, to enable a creator to benefit from his intellectual property, it must be protected for but also limited to the creator’s lifetime plus whatever time would be required for a purchaser to profit from it if the creator died on completion of the sale (Rand suggested 50 years).

Also pertinent here is the error of holding that the non-initiation of force principle is “the most important Objectivist social principle” but then applying it as a primary principle independent of its derivation and purpose. When Rand refers to it as “The basic political principle of the Objectivist ethics,” it is in the context of dependence on ethical principles. In the philosophy of Objectivism, politics is regarded as an extension of ethics in the context of the life of individuals into the context of their life in a society.

It is the failure to grasp that inexorable link between those two philosophical sciences that is the reason for Rand’s rejection of any libertarians and anarchists who seek to implement, benefit from, and defend her radical capitalism without acknowledging its ethical base, not to mention the underlying metaphysics and epistemology.

The source of the ethical principle that is the source of the non-initiation of force principle is the fact that the existence of living creatures is contingent on self-generated actions specific to the nature of each. The means specific to our nature — our rational and volitional (hence fallible) capacities — enable us to choose existence in accordance with our nature (life) as our goal and standard of value and simultaneously necessitate our individual autonomy in the application of reason and action to the production and trade of values in the service of that life. It is this primary ethical requirement of individual autonomy over value produced by the application of reason to action that is the source and standard for all social (political) principles, both those that define “ownership” and “property” as well as those that regulate the use of physical force.

Peter Surda December 5, 2009 at 5:45 pm

@Silas:
You forgot one thing. A system of physical property is necessary in order to consume the said property, no matter who ends up consuming it. It exists in socialism, in capitalism, theocracy and anarchy. If a system didn’t arise, no consumption would be possible and everyone would die of starvation.

There is no such necessity in IP, because of its non-rival aspect. There is no conflict in consumption, therefore no need for conflict resolution. Just like other immaterial goods that have value (e.g. reputation, loyalty, love) it should be handled by social norms rather than the legal system.

Silas Barta December 5, 2009 at 6:04 pm

@Stephan_Kinsella: Spoken like someone who has no clue as to the nature of actual property systems. Typical libertarian property advocate: Stephan_Kinsella, you have no idea of what a libertarian property right would look like–every time we point out an injustice in the current system, you amateurs crawfish and say, “well, I’m not in favor of that!” So if we say, what does your ideal property system look like? You say “I can’t predict all the exact details!” The only ones who try to concoct a system end up with obviously arbitrary rules (bizarre definitions of “use”, disputes over how low aircraft can be before you can gun them down with impunity) or just something based on today’s legislated schemes (Kinsella).

And now, not only do you have no idea what property rights should look like, now you have no idea how they could arise on the free market, absent legislation and given the huge history of injustices behind most existing property rights. How? we ask. You say–somehow!

Tu quoque — Making people recognize their own hypocrisy, since before the fall of Rome ™.

Silas Barta December 5, 2009 at 6:26 pm

@Peter_Surda: Very true — you can’t have conflicts over resources that never come into existence in the first place, and you will starve to death if one of those never-produced resources (e.g. a new agricultural method) happens to be necessary for continued food production after some point in time.

…and?

Peter Surda December 5, 2009 at 6:29 pm

@Silas:
In order not to look like a fool, it is useful to first actually comprehend what you write. In your case, I seriously doubt it.

Legal systems developed due to the necessity for conflict resolution. Obviously, they often serve other purposes too, but conflict resolution is the defining one. There is no need for conflict resolution in immaterial goods. If you actually attempted to analyse the case more thoroughly, it would have been plainly obvious. IP systems do not resolve consumption conflicts, nor is it possible for them to do that in any hypothetical legal system, since there are no consumption conflicts. IP is only possible in a legal system that has features other than conflict resolution. Which would not be libertarian.

If you look at current IP systems, you see that they target production and not consumption (at least not to a large extent). Even if we recognise the ownership of ideas and their spread over the whole universe, such an implementation still turns the idea of property on its head. A consistent implementation would not target producers but consumers. This would require the control of thoughts. Unlikely to happen without a government.

Peter Surda December 5, 2009 at 6:39 pm

@Silas:
> Very true — you can’t have conflicts over resources
> that never come into existence in the first place,
You commit the same error that you accuse your opponents of: you assume your conclusion.

In addition to that, it’s irrelevant. With the same logic one can claim that you need to pay taxes because otherwise there will be war.

> and you will starve to death if one of those never-
> produced resources (e.g. a new agricultural
> method) happens to be necessary for continued
> food production after some point in time.
You skip over to empirical area (and prove nothing). Like I said many times before, IP merely shifts the investment. Just like it happens with artificially low interest rates in central banking, some investments are made which wouldn’t have, and some aren’t which would have.

Existence of physical property, on the other hand, does not shift investment (versus non-existence of physical property). In fact it is difficult to imagine a world without a system of physical property.

newson December 5, 2009 at 7:09 pm

silas barta says:
“Probably the same way that patterns of EM waves can be property…”

petitio principii.

Bala December 5, 2009 at 7:15 pm

John Donohue,

” You start with the anarchist premise. You are an anarchist. All government, law, objectified protection against aggression is evil and illegitimate. ”

You got it all wrong. I never said anything about anarchy. I spoke only of the danger of giving legitimacy to state-initiated actions of violations of individual liberty. So, your subsequent attack related to anarchy appears completely irrelevant.

” You start with the anarchist premise. You are an anarchist. All government, law, objectified protection against aggression is evil and illegitimate. ”

‘Individual Rights are the means of subordinating society to moral law’ – Ayn Rand in her essay “Man’s Rights” (1963)

My point is that morality is independent of, pre-exists and overrides “law” (as you use it). Law that contradicts (objective) morality is bound to be an abomination. When you define that which is morally “wrong” as legally “right” and vice versa, you know you are headed for a disaster.

Stephan Kinsella December 5, 2009 at 7:26 pm

MichaelM: “Whatever number of Rand’s ideas Bala has adopted and lives by, in the context of this post and these comments, he and Kinsella are perpetrating a hoax by referring to him in the title as an “Objectivist” sans some qualifying adjective. When all is said, read, and done, it is abundantly clear that Bala is not recanting agreement with an Objectivist tenet, he is recanting his agreement with what he mistakenly thought the Objectivist position is but actually is not.”

It is not a hoax; people are free to click and read the whole thing. This kind of whining has become increasingly hollow in hte modern age. I get whining like this often when I include a hyperlinked article for a contention, and people whine that I’m misrepresenting what’s said… hey, I provide the link. Peole can click thru and read for themselves.

In any event, Rand’s basic philosophy was:

1. Metaphysics: Objective Reality
2. Epistemology: Reason
3. Ethics: Self-interest
4. Politics: Capitalism

If you want this translated into simple language, it would read: 1. “Nature, to be commanded, must be obeyed” or “Wishing won’t make it so.” 2. “You can’t eat your cake and have it, too.” 3. “Man is an end in himself.” 4. “Give me liberty or give me death.”

I agree with all 4. How to apply them, and the details, get more interesting. That’s why some of us realize that if you oppose aggression (implied by #4) you have to oppose the state; thus the most consistent Objectivists become anarchists (indeed Galt’s Gulch is anarchist). And likewise, a really consistent adherent to these principles would have to oppose not only the state, but legislation and all artificial rights such as IP.

Silas Barta December 5, 2009 at 7:50 pm

Quick replies:

@Bala: Excellent responses to my position. Oh wait, you don’t have any reply.

@newson: More like petitio mensi — normal, well-adjusted libertarians accept the validity of EM spectrum rights.

@Peter_Surda: clearly, there are goods that exist that fit the profile of a good that can’t exist without IP — specifically, if no entrepreneur can expect to recoup costs without exclusion rights despite the production and use of the idea being pareto optimal even given IP restrictions. Clearly, it’s a possibility, and it’s easy to see why it’s a likely one — because there are very similar scenarios involving large-scale investment in physical capital that need an environment in which random people won’t just grab it from you. (Please don’t point out how such goods are more tangible or physically scarce; it’s doesn’t affect this particular point that certain goods need certain rights enforced in order for entrepreneurs to want to make them.)

Just as you can come up with scenarios where people are deprived of goods because of IP, I can show scenarios where people are deprived of goods because of its absence.

I don’t see the relevance of your comparison to justification for war taxes, mainly because you didn’t present the corresponding argument, and also because any argument you’d make would not be isomorphic to the one I made for IP.

Bala December 5, 2009 at 7:51 pm

MichaelM,

” Ayn Rand explained …….. the Objectivist position is but actually is not. ”

So, what you are essentially saying is that Objectivism is whatever Rand said (irrespective of any inner contradictions that may exist). This reveals the thought process of a “Randite” rather than an Objectivist.

“Any material element or resource which, in order to become of use or value to men, requires the application of human knowledge and effort, should be private property—by the right of those who apply the knowledge and effort.”

Yeah!! It “should” be. But what if it “cannot” be? What do we do if “should” meets “cannot”? “Should” to me indicates a wish or a whim. “Cannot” indicates reality. I would never place my whims over reality.

In effect, what if the very nature of the “object” prevents it from ever being regarded as “property”?

“Bear in mind that the right to property is a right to action, like all the others: it is not the right to an object, but to the action and the consequences of producing or earning that object.” [The Virtue of Selfishness, p.94]

My point precisely. If it is a right to action, it can only be that you be free to act and that others may not prevent you from acting. It cannot be that you alone that shall be free to act that way and no one else shall. It definitely cannot be that anyone else who acts that way should surrender a portion of the value they gain to you or that if they do not, you may initiate force against them to get at the value.

” Thus, there is no conflict between the rights to intellectual property and the rights to physical property. ”

You conveniently forget that when it comes to physical property, either you act to possess, use and dispose of them or I do. We can’t both do it simultaneously. Take an apple for instance. Either you eat it or I do. We can’t both eat the same apple.

With an idea or pattern, on the other hand, we can both simultaneously act on it. My acting on an idea does not prevent you from acting on it.

This is the difference that I am trying to highlight.

” Also pertinent here is the error of holding … the underlying metaphysics and epistemology. ”

You are sounding very much like a mystic out here. Which part of the underlying metaphysics and epistemology am I missing out here? Please elucidate rather than just accuse.

” The source of the ethical principle … both those that define “ownership” and “property” as well as those that regulate the use of physical force. ”

If it is reason and a commitment to reality that we are talking of, why are you neglecting the reality that exclusion of others from an idea necessarily requires the initiation of force? How then do you have the courage to use it as a “moral” concept?

Bala December 5, 2009 at 8:00 pm

Silas Barta,

I’m sorry, but am left with no option but to say that you make no sense.

” Probably the same way you recognize that all property rights place limits on other property rights, and homesteading only gets you some rights (not e.g. the rights to all the heavens above the plot of land). ”

Placing limits is not the same as being given a right over another person’s property. One is a natural limitation and the other is a redistribution of rights.

” Probably the same way that patterns of EM waves can be property, I’m guessing. ”

A lot of people have tried to tell you this before. So let me just reiterate it. You are incorrectly mixing up IP with EM spectrum rights.

” Probably the same way civilization always developed, I’m guessing — by mutual recognition of social conventions…. ”

So, morality is all about “social conventions”, is it? Thanks for the clarity. You have discredited yourself completely in just 1 phrase.

Stephan Kinsella December 5, 2009 at 8:05 pm

Silas, your little “tu quoque” fails miserably because we libertarians are very explicit aout what property rights we respect and the system in which rules can be refined. We specify clearly what abstract property rights are, and because the basic idea has been used in decentralized legal systems in the past, so we can at least consult and draw on those bodies of law by analogy; and we can see how in a private society decentralized legal systems can refine and apply these abstract principles. But these same theories that tell us what property righst are say that IP rights are not legitimate. Silas casually says that IP rights “have been” generated in private legal systems. I call bullsh*t. Where, silas? How?

Now is time for you to put up or shut up. Where have they been developed, and in accordance with sound libertarian principles? Please tell us. Where were monopoly rights to inventions found? (patents) Where were copyrights found? The only thing I’m aware of is common-law copyright, which is more like trade secret than modern copyright.

And tell us, Silas: what is the natural, libertarian right to innovations? Just give us a general description. What is patentable subject matter? What is the standard of nonobviousness? What counts as prior art for purposes of novelty? What should the patent term be? Penalties for violation? If you don’t know, kindly [refrain from commenting].

newson December 5, 2009 at 8:20 pm

silas barta says:
“…normal, well-adjusted libertarians accept the validity of EM spectrum rights.”

appeal to authority. “mensi”?? i guess this is your oblique compliment to kinsella.

John Donohue December 5, 2009 at 8:39 pm

Mr. Kinsella [sic, spelled correctly], for someone posting so intensely against Ayn Rand, this ignorant statement…

“Objectivists are supposed to be against aggression.”

. . . invalidates any credibility you might have. At least make the opposition’s case accurately before you thrash it, otherwise you are just a spitter, not a smart person.

Just in case (and I doubt it) there is anyone reading this that does NOT know the ACTUAL Objectivist politics: The proper function of government is the rectification of cases in which a citizen initiated force against another. Moreover, the government itself may not initiate force against a citizen. That is not a government based on aggression.

Your comment on what governments currently “are” is also revealing. You imply “THIS IS GOVERNMENT” as if metaphysically given by nature. This is a fallacy.

Which of the supposed Mafia/gang governments you spoke of is the one Ayn Rand would point to as an example of proper government under her philosophy?

John Donohue

Bala December 5, 2009 at 10:44 pm

John Donohue,

” for someone posting so intensely against Ayn Rand ”

Mr. Kinsella is not posting against Ayn Rand. He is just saying “IP is one idea on which Ayn Rand was wrong.”. You are confusing an intellectual discussion for a personal attack. If you read his previous post, he agrees with the basic Objectivist principles on Metaphysics, Epistemology, Ethics and Politics as identified by Rand. How then could he be attacking Rand herself?

” You imply “THIS IS GOVERNMENT” as if metaphysically given by nature. This is a fallacy. ”

This is not the point. His idea is that a single entity having a monopoly over the initiation of force is not consistent with the preservation of Individual Rights. The only logical extension of such a monopoly is a single world government – a rather dangerous and scary situation.

Incidentally, do you favour one world government?

That apart, my argument against IP is NOT based on a rejection of the State. It is a rejection of the notion that ideas and patterns can be legtimately considered under the concept “property”. I am basically saying that the term “Intellectual Property” is an oxymoron. If you are arguing with me, that’s what you need to be disputing.

newson December 5, 2009 at 11:32 pm

brian macker says:
“if someone from Kinsellaville steals a book from Mackerville and then copies and publishes it. Not different than if someone from Kinsellaville murdered a member of Mackerville…”

nobody from the anti-ip camp would endorse the theft of a physical book. the person who buys a copy of the stolen book, and who has not participated in the original theft has not deprived the original holder of his book, only perhaps some opportunity profits. a life is irreplaceable, so the murder comparison is invalid.

ruddy December 5, 2009 at 11:35 pm

If owning a concept gave you the rights to the concept, then do I need permission to use the concept of owning a concept?

Silas Barta December 6, 2009 at 12:15 am

@Bala: Thanks for making an effort to respond! I’ll go through your errors now:

[1]Me:” Probably the same way you recognize that all property rights place limits on other property rights, and homesteading only gets you some rights (not e.g. the rights to all the heavens above the plot of land). “

You:Placing limits is not the same as being given a right over another person’s property. One is a natural limitation and the other is a redistribution of rights.

Do you remember what this was responding to? It was your first point (1) that IP is problematic because it places restrictions on “other people’s property”. My response was that — well duh, so do rights that you agree with, so this aspect actually isn’t problematic. How is your response, to arbitrarily declare a difference between limits and rights to “others’” property relevant? How is your response that one is a “natural limitation” relevant? Remember, your entire point was that IP infringes on other people’s property rights.

But I’ve shown that this begs the question as to *which* property rights can be justly claimed. By saying that IP infringes others’ rights, you’re assuming away the problem, not seriously addressing it. (Though in fairness, Stephan_Kinsella does the same.)

[2]Me: ” Probably the same way that patterns of EM waves can be property, I’m guessing. “

You: A lot of people have tried to tell you this before. So let me just reiterate it. You are incorrectly mixing up IP with EM spectrum rights.

Is that supposed to be a response? Declaring, by fiat, that these are two different topics? That’s not how logic works, Bala. IP and EM spectrum rights are identical in the critical respects, as I have explained here and elsewhere. You don’t get to dodge this by observing that they’re two different topics. (And I’m *totally* sure that in following this blog’s discussions about IP, you followed through to the many links to that post, right? Because you’re like, serious about this topic and everything? Yeah … didn’t think so.)

[3]Me: “Probably the same way civilization always developed, I’m guessing — by mutual recognition of social conventions…. “

You: So, morality is all about “social conventions”, is it? Thanks for the clarity. You have discredited yourself completely in just 1 phrase.

Again, you seem to have forgotten what I was responding to there. I was responding to your question (number 3) about how IP can arise — what actual *mechanism* allows it — without the state. This wasn’t addressing the basis of morality, just the question you asked (the one you just conveniently forgot about) about how IP arise without the state.

Sheesh, can you *ever* keep track of your own arguments? If you could, that would prevent me from having to remind you of what they were!

Silas Barta December 6, 2009 at 12:19 am

@newson: appeal to authority. “mensi”?? i guess this is your oblique compliment to kinsella.

mensi = mind, I think (don’t know Latin that well). petitio mensi = small mind, I think.

It’s an appeal to things that are pretty obvious to everyone. Don’t agree with them? Fine, but you’re far enough out of the realm of common agreement a to be irrelevant to this debate. It’s like trying to rehash what’s bad about the state before getting to anything else. If you want to question fundamental assumptions everyone here already shares, find the appropriate forum for it, which isn’t here.

Bala December 6, 2009 at 12:35 am

Silas Barta,

” Remember, your entire point was that IP infringes on other people’s property rights. ”

That was just a point that bothered me. It was not my POINT. So much for your reading. The way I resolved it for myself was to figure out that it is absurd and monstrous to elevate ideas and patterns to the level of the moral concept “property”. Guess you either missed that out completely or are refusing to address it.

” IP and EM spectrum rights are identical in the critical respects, as I have explained here and elsewhere. ”

Very simply put, they are NOT identical. EM waves are EXISTENTS. Ideas are a particular way of understanding reality. They exist only in our minds. There goes your argument.

” This wasn’t addressing the basis of morality, just the question you asked (the one you just conveniently forgot about) about how IP arise without the state. ”

Oh!!! And pray tell me how IP will arise without the State when the very concept of IP is fundamentally immoral? In the absence of a State to enforce your notions, how do you plan to get a lot of people (society) to agree with you that initiating force is an acceptable means to exclude people from what you claim is YOUR idea? Where are you going to get your social convention from? A group of barbarians and savages who do not think it is wrong to initate force against a fellow human being? That’s the kind of people whose support you are likely to get. Go ahead and give it a try. Just leave me out of it.

Silas Barta December 6, 2009 at 12:44 am

@Stephan_Kinsella: Silas casually says that IP rights “have been” generated in private legal systems. I call bullsh*t. Where, silas? How?

Easy. Names. From prehistory on, each person could use a certain designation as referring to himself. For others to claim someone else’s name as their own (in sufficient detail to assert that they are the other person) would be in contravention of social conventions. These were precursors to clan/tribe designations and trademarks.

You … weren’t aware of these?

Oh, right, I forgot, “trademarks don’t count. They’re, um, well, more of a *fraud* issue. Yeah, *fraud*. They’re too uh, uh, different from *normal* IP, yeah, that’s it, they don’t count as a valid example, YEAH!”

Okay, fine, then look at medieval guilds. Some had state endorsement, most didn’t. Their members expended vast resources in innovation. They claimed a species of IP in those innovations. Mainly, they use a kind of Omerta (code of silence) to keep free riders from using copying, but inevitably the secret would get out and they’d use more, forceful methods, in the context of a legal system — with social support — outside of the official state-endorsed one.

Now, we may disagree with their methods — heck, I certainly do — but it’s a clear case of social conventions supporting the right of innovators to their (large scale) innovations, external to official state approval.

Ah, check out the money quote: “The modern patent system was set up to break the power of the guilds.”. Hm … patents better than guild enforcement of innovation rights. go fig.

Not that this is a crucial point — as long as we realize that it’s possible in theory for social conventions to protect IP-type rights, the “omg teh statezors would enforce IP!” is a red herring.

Silas, your little “tu quoque” fails miserably because we libertarians are very explicit aout what property rights we respect and the system in which rules can be refined. … And tell us, Silas: what is the natural, libertarian right to innovations? Just give us a general description. What is patentable subject matter? What is the standard of nonobviousness? What counts as prior art for purposes of novelty? What should the patent term be? Penalties for violation? If you don’t know, kindly STFU.

I’m no more obligated to answer these questions in defense of IP, than you are obligated, in defense of physical property, to answer the questions: What EXACTLY counts as “first use” for purposes of homesteading? What uses of the land and adjacent resources do which acts of homesteading entitle one to which rights in? How low can aircraft be before you get to gun them down? Which interactions with new “land” (and how is that defined when it comes to new environments like space and orbits) count as a use sufficient to give a superior claim? How long must something be abandoned before others can claim it? What should be the penalties for which kinds of trespassing and property infringement, including those with no calculable monetary harm?

One standard for IP, another for the rights that you like. Conclusion assumed in advance, arguments fabricated to fit it.

Bala December 6, 2009 at 12:47 am

Silas Barta,

I missed this out

” Remember, your entire point was that IP infringes on other people’s property rights. ”

Wrong as usual…. My point was that IP is immoral because exclusion of others from an idea NECESSARILY involves the initiation of force.

newson December 6, 2009 at 1:12 am

to silas:
“mens” is the latin word for mind, and “petitio” is appeal, not small.

“It’s an appeal to things that are pretty obvious to everyone…assumptions everyone here already shares”

appeals to (imagined) majorities don’t shore up your arguments. this is far short of your best.

Silas Barta December 6, 2009 at 1:19 am

@Bala: That was just a point that bothered me. It was not my POINT. So much for your reading. The way I resolved it for myself was to figure out that That was just a point that bothered me. It was not my POINT. So much for your reading. The way I resolved it for myself was to figure out that it is absurd and monstrous to elevate ideas and patterns to the level of the moral concept “property”. Guess you either missed that out completely or are refusing to address it.Guess you either missed that out completely or are refusing to address it.

Well, see, that’s still not how it works. The position that: “it is absurd and monstrous to elevate ideas and patterns to the level of the moral concept ‘property’.” would be your *conclusion*. But a conclusion needs, well, actual *arguments* to support it. And one of those arguments was the “point that bothered [you]“. Which was, of course, “that IP infringes on other people’s property rights.” But since I have shown this ground-level assmption to be in error (in being no different from cases you support), you conclusion is weakened to such an extent as well.

Is it starting to make sense now? Again, I can help you with putting arguments together and all.

Very simply put, they are NOT identical. EM waves are EXISTENTS. Ideas are a particular way of understanding reality. They exist only in our minds. There goes your argument.

Great! You’ve gone a little further this time. Instead of just trying to declare the topics irrelevant to each other by fiat, this time, you’re offering up a *reason* why they’re different.

However, it’s still in error. IP rights — just like EM spectrum rights — most emphatically do NOT protect “ideas in themselves”, whatever those are. Instead, they restrict the *physical instantiation* thereof. So this is clearly not a different: both the physical instantiation of the EM spectrum, as well as the physical instantiation of ideas are, under your terminology, “existents” in exactly the same sense.

How about giving this one another go?

Oh!!! And pray tell me how IP will arise without the State when the very concept of IP is fundamentally immoral?

Assuming your conclusion: not good reasoning.

Anyway, I welcome your approaching of this topic. It looks like you’ve done a lot of soul-searching before making the news bigtime by changing your mind. However, now that I’ve presented arguments you haven’t quite given full attention, it looks like you need to do the same thing all over again and put the interviews on hold before you reach your *next* solid position.

That would only be fair, don’t you think?

Silas Barta December 6, 2009 at 1:23 am

@Bala: Wrong as usual…. My point was that IP is immoral because exclusion of others from an idea NECESSARILY involves the initiation of force.

Great. So does keeping trespassers off your land.

Are you against that, too? Okay then. Moving on…

Peter Surda December 6, 2009 at 2:57 am

@Silas:
> Just as you can come up with scenarios where
> people are deprived of goods because of IP, I
> can show scenarios where people are deprived
> of goods because of its absence.
And this proves what? You yourself admit that it can go both ways. How that is supposed to confirm your argument is beyond me. Besides, you switched to empirical area when it showed that your theory is flawed.

> I don’t see the relevance of your comparison to
> justification for war taxes, mainly because you
> didn’t present the corresponding argument, and
> also because any argument you’d make would
> not be isomorphic to the one I made for IP.
Silas, you apparently can’t read. I wrote, quote: ” … you need to pay taxes because otherwise there will be war.” How anyone would describe the example as “war tax” I fail to see. The example fits exactly.

Bala December 6, 2009 at 7:31 am

Silas Barta,

I’m actually getting a little tired and am beginning to understand why a lot of people just prefer to ignore you.

” Well, see, that’s still not how it works…..you conclusion is weakened to such an extent as well. ”

What I said is that the point that IP rights seem to infringe upon physical property rights bothered me.
This forced me to dig deeper and check my premises. This helped me come up with an understanding of the immorality of treating ideas as “property”. Once that was done, I could understand why the conflict existed earlier. How you see my original statement as a part of my arguments still beats me.

” IP rights — just like EM spectrum rights — most emphatically do NOT protect “ideas in themselves”, whatever those are. Instead, they restrict the *physical instantiation* thereof. ”

Ah!!!! Physical instantiation….. Now the light dawns upon me….. So, you are saying that IP “rights” restrict the freedom to represent a particular abstract concept by a concrete or tangible example. How do you restrict the freedom to represent a particular concept by a concrete or tangible example without physically preventing a person from doing so? How is this not just another act of initiation of force of the kind I had originally referred to?

In case you haven’t yet figured out, this was my original argument too – that calling ideas as property necessarily means restriction of the freedom of individuals who have not initiated force against anyone. I wonder how this “defeats” my argument in any way.

” Assuming your conclusion: not good reasoning. ”

My conclusion: I doubt if you will get your “social convention” going

My assumption: Treating ideas as property is an immoral choice and most people would recoil from it.

Now please show me where I have assumed my conclusion. Incidentally, your statement would be justified if one assumes that morality is a social convention. That’s what I said the last time around.

” Great. So does keeping trespassers off your land. ”

Explain the word “trespassers” and the phrase “your land”. Please also explain what the trespasser would have to do to trespass on my land. Assume that I have put a suitably high wall all around my land with suffiecient announcements that it is private property. I get the sneaky feeling that the trespass is the initiation of force and my force would be retaliatory. You have an alternative opinion?

Incidentally, ever heard of how tigers mark off their territory and what happens when one tiger trespasses upon the territory of another? Is that what you wish in human societies too? Nice world view.

Stephan Kinsella December 6, 2009 at 9:03 am

Silas,

“@Stephan_Kinsella: Silas casually says that IP rights “have been” generated in private legal systems. I call bullsh*t. Where, silas? How?

Easy. Names. From prehistory on, each person could use a certain designation as referring to himself.”

Nonsense. If you are named Silas Barta, others can be named Silas Barta too.

Further, even if this is prohibited in some situations this has noting to do with copyright and patent; it would be more a variant of trademark law, whihc I have explained has a more defensible basis (moored in fraud) than patent or copyright. You need an example of how a decentralized legal system protects rights to original works (copyright) or practical inventions (patent), in a way compatible with libertarian principles.

“Okay, fine, then look at medieval guilds. Some had state endorsement, most didn’t. Their members expended vast resources in innovation. They claimed a species of IP in those innovations. Mainly, they use a kind of Omerta (code of silence) to keep free riders from using copying, but inevitably the secret would get out and they’d use more, forceful methods, in the context of a legal system — with social support — outside of the official state-endorsed one.”

Medieval guilds cannot stop outsiders from using whatever patterns they want on their own properyt.

“‘Silas, your little “tu quoque” fails miserably because we libertarians are very explicit aout what property rights we respect and the system in which rules can be refined. … And tell us, Silas: what is the natural, libertarian right to innovations? Just give us a general description. What is patentable subject matter? What is the standard of nonobviousness? What counts as prior art for purposes of novelty? What should the patent term be? Penalties for violation? If you don’t know, kindly [refrain from commenting].’

I’m no more obligated to answer these questions in defense of IP, than you are obligated, in defense of physical property, to answer the questions: What EXACTLY counts as “first use” for purposes of homesteading?”

See, Silas, this is more of you dodging the qeustion. You have no idea. Hre’s what I think. You obviously have no idea about what you are in favor of. None whatsoever. You basically are opposed to abolishing the state’s patent and copyright law. You are basically a defender of the status quo–of statism

Silas, just give an *example,* how about that? I can give one for real property. A guy walking thru the wilderness sees an apple on an unowned tree. He plucks it. He is now the owner. He breaks off a branch to use as club. Now he owns the club. Until he abandons it. He then fences in a 1-acre tract of land, puts a farm and a cabin on it. Silas, he owns that tract of land and improvements on it–in perpetuity, or until he sells or abandons it. The ownership of these items means that others need his permission before using these things–before entering the house, etc. Before invading the borders thereof.

Now, how about you give a very simple but waht you regard as clear-cut example of exactly what kind of original work or invention leads to what kind of ownership cliam and how. Let’s hear it.

Bala December 6, 2009 at 9:29 am

Stephan,

” Silas, just give an *example,* how about that? I can give one for real property……Before invading the borders thereof. ”

Thanks for the explanation. It makes the meaning of the term “trespass” obvious to me. It also makes it clear as to why “trespass” as understood from this example is an initiation of force. I wonder if it does to Silas.

Peter Surda December 6, 2009 at 9:45 am

@Stephan Kinsella:
He can’t provide an example, because he still didn’t realise that IP prevents production, not consumption (apart from minor exceptions). If ownership of ideas was implemented the same way as physical property, it would have to penalise consumption. As far as I know, it is not illegal to read an unauthorised book copy or listen to unauthorised music reproduction, but it is illegal to create them. It is not illegal to use unlicensed software, but it is illegal to install it (i.e. owner of the computer is prosecuted rather than the computer user). It is not illegal to buy a patent-protected drug from an unauthorised manufacturer, but it is illegal to manufacture and sell the drug.

How can someone claim that this is anything else but market regulation is beyond me. Sure, in theory, one could create a system that penalises consumption instead of production. That would be consistent with the concept of ideas being a property. But such a system would be so much different from what we have now that it’s impossible to predict its features, apart from one: it would have to control thoughts. Certainly saying that “just like other systems would without government” is utterly insufficient.

John Donohue December 6, 2009 at 11:29 am

Bala,

Your last post spends it’s first third addressing an irrelevant point, just blowhard showing off, leaving my refutation of Kinsella undisturbed. Here, I’ll help you out by rephrasing on the dubious hope you have an actual answer, although it is not addressed to you: For someone posting against Rand’s identification of property rights as protected by a proper government, Mr. Kinsella displays abject ignorance. . .’ then return to the point.

Me to Kinsella: ” You imply “THIS IS GOVERNMENT” as if metaphysically given by nature. This is a fallacy. ”

Bala: This is not the point. His idea is that a single entity having a monopoly over the initiation of force is not consistent with the preservation of Individual Rights. The only logical extension of such a monopoly is a single world government – a rather dangerous and scary situation.

Me: Don’t tell me what the point is. The point of my objection in this sentence, addressed to Kisella, not you, is that he makes an exaggerated case for all current and past governments being thieves, murderers, etc (the full anarchist boring litany) and concludes that because governments have exhibited that behavior any future government would. That is begging the question and other fallacious thinking.

Bala: Incidentally, do you favor one world government?
Me: Yes, I would favor a world government based on Objectivist/Enlightenment principles of individual rights with a government monopoly on the rectification of initiation of force. That is called freedom and peace on earth. I do not favor one-world gang warfare based on anarchism.

Stephan Kinsella December 6, 2009 at 12:08 pm

John Donohue: “‘Bala: Incidentally, do you favor one world government?’
“Me: Yes, I would favor a world government based on Objectivist/Enlightenment principles of individual rights with a government monopoly on the rectification of initiation of force. That is called freedom and peace on earth.”

Wow, it is almost creepy how these guys will actually admit it. They are in favor of one-world government. Jesus, they admit it!

MichaelM December 6, 2009 at 1:34 pm

@ Bala

“So, what you are essentially saying is that Objectivism is whatever Rand said (irrespective of any inner contradictions that may exist). This reveals the thought process of a “Randite” rather than an Objectivist. ”

Yes, just as Aristotelianism is whatever we know Aristotle said, contradictions included. Misinterpretations of what Aristotle said are ipso facto not Aristotelian. Everyone is free to cherry pick any philosophy, but no one may alter another person’s philosophy. You may reformulate Objectivist ideas in your own philosophy, but those reformulations will not be Objectivist any more. No one may add to or subtract from Objectivism. And I have no idea what you think a “Randite” is, but whatever it is it cannot have any relevance to the content of Objectivism. That is a body of ideas that is entirely independent of the actions of any person, including Rand herself. Ideas stand or fall on their own merit.

————————

“In effect, what if the very nature of the “object” prevents it from ever being regarded as “property”?”

Such as?

————————

“If it is a right to action, it can only be that you be free to act and that others may not prevent you from acting. It cannot be that you alone that shall be free to act that way and no one else shall….”

A right to an action is not a blank check, it is ever and always contextual. Put it back into the context in which she said it and we’ll talk.

————————–
“Yeah!! It “should” be. But what if it “cannot” be?”

Not every new application of reason/effort is worth the effort of a creator to protect it. The concept of intellectual property is not incompatible with the concepts of open source and public domain.

—————————

“You conveniently forget that when it comes to physical property, either you act to possess, use and dispose of them or I do. We can’t both do it simultaneously. Take an apple for instance. Either you eat it or I do. We can’t both eat the same apple.”

No one else can eat your apple because you own the share of all applications of reason/effort that are embodied in that apple and give it value. All of the wealth you possess, you earn by applying your reason/effort to objects and trading the product thereof with others who gained their wealth in the same manner. Then you trade some of your wealth with the apple’s grower, picker, transporter, packer, distributor, trucker, grocery and all of the creators and producers of products and machines they use that put it within your reach. Subject to all voluntary contracts of others involved, you are now its sole owner and violate no rights in consuming it in its entirety including the shares of their reason/effort embodied in it, and you do so simultaneously with hundreds of thousands of others who will consume their embodied shares as well.

But note that when you partially acknowledge this here, …

“With an idea or pattern, on the other hand, we can both simultaneously act on it. My acting on an idea does not prevent you from acting on it.”

“This is the difference that I am trying to highlight.”

… you assert that there is a difference that does not exist.

Think of the concept property having two contexts. One is the context of applied reason/effort that is the owned source of value. The other context is possession of otherwise unowned matter by the right of having created/exerted or purchased the sum of all reason/effort embodied in it.

The geneticist’s property is the idea of how to combine matter into a more delicious apple and the demonstration of its viability that is the product of his reason/effort. The apple picker’s property is the idea of how to pick efficiently or faster than others and his intellectual and physical ability to apply it. Both of them sell to the grower shares of their property to be embodied in the apples that neither of them ever possess. Your apple is first possessed by the grower whose reason/effort purchases the reason/effort of all others involved and applies it to the land and resources similarly acquired and thus causes the sum of reason/effort to be embodied in the particular combination of matter that becomes the apple. The matter that constitutes the apple becomes private property only by default from the fact that it embodies all the owned reason/effort that has been earned.

—————————

“If it is reason and a commitment to reality that we are talking of, why are you neglecting the reality that exclusion of others from an idea necessarily requires the initiation of force? How then do you have the courage to use it as a “moral” concept?”

The moral principle that mandates an individual’s autonomy over the product of his reason and effort establishes the ownership of his ideas and labor. Exclusive access and use of that which is owned does not constitute an initiation of force. To deny that relationship between the ethical concept of autonomy and political concept of ownership is to embrace the politics of statists and the morality of thieves.

John Donohue December 6, 2009 at 4:16 pm

First of all, don’t call me a “they.” Others will speak for themselves.

What is creepy — no worse than creepy — is your betrayal of Ludwig von Mises, Mr. Kinsella. Shame on you. You are a parasite. Go get your own website and spew your hatred for civilization, rule of law, and individual rights.

I will visit it and excoriate you for admitting your rampant, militant hateful anarchy.

htran December 6, 2009 at 4:49 pm

Thank you everyone who participated here. It was a very fascinating read.

Bala December 6, 2009 at 6:18 pm

Stephan,

” Wow, it is almost creepy how these guys will actually admit it. They are in favor of one-world government. Jesus, they admit it! ”

Frankly, it was the recognition that this was THE logical conclusion that truly scared me.

John Donohue December 6, 2009 at 9:28 pm

while I do not withdraw my violent objection to Mr. Kinsella’s post that sparked my outburst, I will temper any future posts with more moderate language.

John Donohue December 6, 2009 at 9:34 pm

bala, the logical conclusion to your abandonment of rule of law is world chaos and war. That is what is scary here.

You and Mr. Kinsella are not just admitting it, you are trumpeting it.

Lord Buzungulus, Bringer of the Purple Light December 6, 2009 at 10:00 pm

John Donohue,

Take a red, dude.

Peter Surda December 7, 2009 at 5:45 am

@John Donohue:
While I don’t think I was ever an objectivist, I used to be a minarchist. What persuaded me to switch to anarchocapitalism was mainly prof. Hoppe’s application of Mises&Hayek’s economic calculation problem to the production of protection (policy and military). You can read it e.g. in Democracy – The God That Failed. Maybe you can try to confront that before you complain.

Allow me to summarise: in order to provide services such as protection of property, deterrance of violence or conflict resolution, one has to first produce them. Production requires to spend capital and to determine the product portfolio. From this point of view, there is no difference to any other service. A government holds a monopoly in those areas, one cannot freely enter into competition with them. However, without the feedback from market (prices), the producer cannot determine what product mix to create and how to spend the money. Should everybody be provided a tank or is a police car that drives around the block every hour more suitable? Without the price mechanism and free market in the protection services, there is no way to determine that. Therefore, just like in any other cases of monopoly, the service quality will decline and costs increase.

I observed that a lot of adherents to ideologies (not limited to objectivism, also the green, communists and religious fundamentalists) seem to think that if the adherants to their ideology had the power in their hands, that will fix all the problems. However, as the example above demonstrated, that is not the case. Ideology can’t calculate.

Pedro Carleial December 7, 2009 at 6:36 am

It is not surprising that Bala “coverted” seeing as his grasp of the Objectivist concept of property was tenuous at best.

An Objectivist knows that rights do not conflict. An Objectivist does not look for a hierarchy of rights and choose one to vitiate. Asking the question “Liberty or Property – Which is more fundamental?” is a red flag.

In reality, Intellectual Property rights do not generate any conflict – just as the right to life does not conflict with the right to liberty.

Why does the individual right to life not conflict to the right to liberty? Is the fact that you cannot shoot a man in the head not a limit on your freedom of action?

This apparent contradiction is dispelled by proper understanding of what rights are: the means to replicate in society the same freedom one would have outside of it.

Outside of society there is no “other man”. Thus in society the fact that you cannot shoot another man in the head is not a reduction of your freedoms – you never had the freedom to shoot another man in the head.

The same applies to IP. If you create a mixture of chemicals that happens to cure the aging process and patent it, that does not reduce my freedom of action with regard to the chemicals I own.

Before your invention I could arrange those chemicals in any useful combination I knew. The crucial fact is: I did not know the combination you invented. I could not concoct that medicine.

After your patented invention I am in the same situation I was before – I cannot concoct your medicine. I have lost nothing. I have actually gained something: with your authorization I can make the compound.

The creator of an invention does not reduce the freedom of any other man. By definition those other men could not make what he invented before he invented it – they lose nothing.

Two issues remain: independent invention and “the freedom to invent”.

Independent invention must be recognized. However the burden of proof rests on the person claiming independent invention to show that he did not have access to the original. Patent systems usually circumvent this issue by publishing patent requests and assuming everyone has read them (the merit of this solution is debatable).

And there is the argument that when one person invents something and patents it the freedom of other people who might have invented it instead in the future. Rights are about what is, not about what one could imagine to be. There is the person who did invent something. That is the fact.

Forwarding the “freedom to invent in the future” argument undermines the very concept of homesteading – which most Austrians consider uncontroversial when it comes to physical property.

Jay Lakner December 7, 2009 at 6:37 am

Well said Peter.

Jay Lakner December 7, 2009 at 7:16 am

John Donohue wrote:
“bala, the logical conclusion to your abandonment of rule of law is world chaos and war.”

Why is it that so many people equate anarchy with chaos and war? We have just come out of the bloodiest century in human history, yet the majority of people are simply incapable of recognising that such chaos and war are a result of the state.

Another thing I have never quite been able to fathom is how someone can call themself an objectivist and yet not be an anarchist. Anarchy is the logical conclusion to true objectivism.
How can someone believe in the non-initiation of force and at the same time advocate the existence of an organisation that initiates force?

Anyone who takes such a position must have made contradictory assumptions in the formation of their philosophy. Bala discovered one such contradiction, that in the concept of IP. Ayn Rand made some excellent contributions towards objectivist thought, but she made mistakes. A true objectivist should know that nobody is infallible, not even Ayn Rand. Unfortunately, most people who call themselves objectivists are not true objectivists.

Peter Surda December 7, 2009 at 9:04 am

@Pedro Carleial:
> Before your invention I could arrange those
> chemicals in any useful combination I
> knew.
You could also arrange it into those that you didn’t, although you might not have known the outcome. If your assumption was correct, noone would be able to invent anything, ever, because it would depend on someone else having developed it before.

> The crucial fact is: I did not know the combination
> you invented. I could not concoct that medicine.
Those two sentences are not identical.

> By definition those other men could not make
> what he invented before he invented it
Incorrect. They could have, they merely didn’t.

If I was to generalise the argument, I could claim that anything that can be causally related to some action requires permission from the one that caused it. Me writing this reply would not have happened if you didn’t write yours. Does it mean you have the right to prevent me from replying?

Therefore, a reasonable approach would be to restrict the rule to only property & contract violations. Which brings us back to the original problem of definition of property.

Pedro Carleial December 7, 2009 at 10:51 am

“They could have, they merely didn’t.”

This is really the crucial point. They couldn’t. Human action requires knowledge. Until the prerrequisite knowledge is created, purposeful action is not possible.

You are arguing against what is based on what is not (but you imagine could have been).

We cannot cure cancer. There certainly is some combination of chemicals that has that effect – but untill someone invents it we cannot produce the cure for cancer.

Shay December 7, 2009 at 11:35 am

Pedro Carleial wrote, “Outside of society there is no “other man”. Thus in society the fact that you cannot shoot another man in the head is not a reduction of your freedoms – you never had the freedom to shoot another man in the head. […] Before your invention I could arrange those chemicals in any useful combination I knew. The crucial fact is: I did not know the combination you invented. I could not concoct that medicine.

After your patented invention I am in the same situation I was before – I cannot concoct your medicine. I have lost nothing. I have actually gained something: with your authorization I can make the compound.”

If I happen to see your invention, my mind is poisoned with your idea. Now I have to avoid thinking along those lines or risk infringing. Before, I could have thought along those lines without restriction. Humans have a drive to use any ideas they happen to glean from their surroundings, especially other humans. Alone, I could make full use of any ideas I come across. But in your society, I have to constantly suppress this.

Stephan Kinsella December 7, 2009 at 11:55 am

Shay and Surda: very good responses to Pedro.

Pedro:
Your reply is typical of IP advocates who are fairly clueless about the nature of the system they advocate, about the nature of the ideal system they would propose, and who are quick to give in on obvious injustices we point out but have no idea what an ideal system would look like.

You seem to favor an independent inventor defense, but for some reason put the burden of proof on the accused. And you talk about proving no-access. How do you prove no-access? And this is a copyright concept. You seem to be unaware that permitting such a clean-room defense would largely gut patent law–which I’m in favor of but which the patent bar would fight tooth and nail; they would call you one of the IP nihilists. do you even realize this?

Further, you then undermine your independent inventor defens with a tepid defense of the constructive notice aspect of the patent publication system–you may be in favor of it, maybe not. Who knows? You don’t know what kind of system you favor. Anyone who favors justice and understand the system realizes the constructive notice presumption of the patent system is complete BS, akin to the BS notion of the “social contract.” It’s just a statist legal fiction. Yet if you accept it, you undermine your independent inventor defense. I think you must really be thinking of prior use rights, not an independent inventor defense… further proof you don’t know what you are talking about.

Your post is a set of question-begging and mutually inconsistent ideas. You say that patenting a recipe doesn’t take anything away from others–sure it does, it prevents them from independently inventing it later and being able to use the idea for free. And you seem to be utterly unaware of how common simultaneous invention is. Do you konw why? Because certain technology makes no sense until other technical or market prerequisites appear… and when they do, the innovation becomes virtually inevitable.. so to award a monopoly to one of these people is obscene and absurd–not to mention, each patentee also learned and built on work of countless others in society, and in the past. Why he gets a monopoly for merely making an inevitable improvement on what others thought of is a mystery.

“The creator of an invention does not reduce the freedom of any other man. By definition those other men could not make what he invented before he invented it – they lose nothing.”

You could say the same of abstract or scientific theories, even philosophical ideas. Patent law currently does not cover these. By the insane IP-mania of the Randians and Galambosians, all would be covered by IP. There is no stopping point. At least the law is tempered by unprincipled, pragmatic utilitarianism… which is what Rand implicitly adopts too, in her fumbling justification of a finite, fixed term for copyright and patent.

“Forwarding the “freedom to invent in the future” argument undermines the very concept of homesteading – which most Austrians consider uncontroversial when it comes to physical property.”

qustion-begging nonsense. HOmesteading is a way to determine which person owns a given contested scarce resource: the idea is the first user has a better claim than latecomers. This rule is preferred by civilized people because it is the only rule that can be adopted if one seeks to find a conflict-free way for resources to be used in society. But by this very rule, if I homestead or own by contract from a homesteader certain chemicals, I am already the owner of this; I am the first user. The property is no longer unowned, no longer homesteadable. To give an outsider a veto right over how I use my own property is to give him rights in my already owned property. this contravenes the idea of homesteading. So any IP socialist who tries to justify IP based on homesteading undercuts himself, because homesteading is contrary to IP.

Peter Surda December 7, 2009 at 12:01 pm

@Pedro Carleial:
> This is really the crucial point. They couldn’t.
Of course they could. Let’s say we have 1000 doors and behind one of them is the answer. If someone manages to open that door first, that doesn’t mean anyone else couldn’t have done that either. It merely means they didn’t.

> Human action requires knowledge.
It doesn’t.

> Until the prerrequisite knowledge is created,
> purposeful action is not possible.
Of course it is. We see it all around us. People hold all kinds of misguided, even obviously incorrect, views, or do things for the wrong reasons. More often even their knowlege is incomplete. Yet it doesn’t stop anyone from acting. What is rather necessary is the belief that one’s actions are going to bring about the desired results.

You seem to treat “knowledge” as something that has an existence on it’s own and is objectively determinable. There is no such thing.

> We cannot cure cancer.
Let’s reformulate it: so far we haven’t cured cancer.

> There certainly is some combination of
> chemicals that has that effect
See, this is a belief. There is no such certainty.

> but untill someone invents it we cannot produce
> the cure for cancer.
This argument it flawed, because, as I demonstrated above, you can apply it recursively to show that nothing can ever be invented.

Your arguments feature what I call the fallacy of reverted implication and see it in a lot of debates. In math speak, the incorrect argument goes like this:
A => B, therefore ‘A => ‘B
Whereas the correct argument would be:
A => B, therefore ‘B => ‘A

Also, you need to reply to the other argument I wrote about. Causality is not a sufficient justification for property claim.

Jay Lakner December 7, 2009 at 12:17 pm

Pedro wrote:
**********
This apparent contradiction is dispelled by proper understanding of what rights are: the means to replicate in society the same freedom one would have outside of it.

Outside of society there is no “other man”. Thus in society the fact that you cannot shoot another man in the head is not a reduction of your freedoms – you never had the freedom to shoot another man in the head.
**********

Your so called “proper” understanding of rights is the source of a major flaw in your reasoning. The fact that tangible materials are scarce automatically disproves your definition of rights.

Outside society I can take a bite out of every apple I see, build huts wherever I want, hunt cook and eat any deer I find, and so forth.
Within society I certainly do not have these same rights. I do not have the right to eat another person’s apple. I do not have the right to build houses on another person’s land. I do not have the right to kill someone else’s deer.

It is the scarcity of tangible materials that requires us to even invent the concept of property. I’ll explain more below.

Pedro also wrote:
**********
And there is the argument that when one person invents something and patents it the freedom of other people who might have invented it instead in the future. Rights are about what is, not about what one could imagine to be. There is the person who did invent something. That is the fact.
**********

Rights are not about “what is”. Rights are what you are entitled to do. Rights are all about ‘what can be’.

Every individual has the right to act in any manner so long as they do not initiate force against another individual.

This includes anything you can possibly imagine, such as researching technologies, rearranging chemicals or placing words on a piece of paper. As long as you do not initiate force against another in the process, your rights are virtually limitless.

Consider the following:
In order to survive, we must act.
Inaction would result in death.
In order to sustain ourselves, we must consume and manipulate tangible materials.
No two individuals can both use the same item.
Therefore, the concept of property is required in order to prevent conflicts.
Hence, it is the scarcity of tangible materials which logically leads us to the necessity of developing rules for assigning property rights to individuals.
Without scarcity, there would be no need for the concept of property.

However, you wish to assign property rights to specific configurations of tangible materials, ie ‘patterns’.
To do so is to place limitations on what others can do with their own property.
The only justification for this would be to demonstrate that they are initiating force against you.
They are not interfering with any of your physical property (which includes your body).
Hence, they are not initiating force against you.
In fact, in order to protect your ‘ownership’ of a particular pattern, you would need to initiate force against them.
Therefore, to grant individuals ownership of ‘patterns’ directly violates the rights of others.
Hence, ‘patterns’ cannot be considered a form of property.

The above line of reasoning demonstrates two clear reasons why patterns should not be considered a form of property.
Firstly, they are not scarce. They are infinitely reproducible. There can never be a conflict between two individuals trying to simultaneously use the same pattern. Since the concept of ‘property’ was required to deal with scarcity, applying it to non-scarce things like patterns is a completely unnecessary and non-fundamental step to make.
Secondly, and most importantly, assigning property rights to patterns is a direct contradiction to the assignment of property rights to tangible materials. You must initiate force against others if you wish prevent them from using their own physical property. This contradiction clearly demonstrates that physical property rights and intellectual property rights cannot coexist.

cpx December 7, 2009 at 6:36 pm

Great piece!

Objectivism was also my first encounter with these ideas, so to speak. While I have since rescinded from the belief in Intellectual Property and known the righteousness and the full logical coherence of it, I haven’t been able to reconcile it with my former Objectivist roots. This, you have now accomplished for me.

And in true Liberty-rooted fashion, I will now proceed to reproduce your ideas in as many copies as I can! ;-)

Silas Barta December 8, 2009 at 2:40 pm

If I had twice as much time as I do now, I couldn’t individually respond to all the fallacious arguments directed against me.

Let me just point out what I’m dealing with here. In this comment, Stephan_Kinsella gave the responses I already expected and anticipated in the very comment he was responding to, and doesn’t seem to be aware he was making arguments that were addressed before he even posted!

Furthermore, we see that Bala’s “conversion” isn’t grounded in any kind of deep understanding of the issues. A cursory cross-examination of his thinking quickly revealed that he thought he could get out of the EM spectrum comparison by calling it — labeling it — a different topic.

To but it bluntly, that’s just not how it works. Your principles need to be consistent across nominally different topics, and it appears Bala didn’t give any consideration to the EM spectrum issue, in which he probably still believes in exclusive rights to make certain (EM wave) patterns, in direct contradiction of his supposed disagreement with IP.

Bala’s la-la intellectual journey is not something IP opponents should point to.

Lord Buzungulus, Bringer of the Purple Light December 8, 2009 at 2:49 pm

Silas, God forbid you have *any* more time to spew your nonsense here.

Stephan Kinsella December 8, 2009 at 3:00 pm

Silas, you can jabber all you want about economic calculation and the gray areas in real property borders and EM spectrum rights–it doesn’t matter because none of it justifies patent or copyright-like “rights.”

Silas Barta December 8, 2009 at 3:31 pm

@Stephan_Kinsella: Yes, it most certainly does matter, for the reasons I have given numerous times in the past. Want the links, including links to your concession of the relevance, or would you rather just take back the point you just tried to make?

Btw, why is it you post so close to when Lord_Buzungulus,_Bringer_of_the_Purple_Light does? Hm…

Stephan Kinsella December 8, 2009 at 3:58 pm

Silas, the point is you have not and cannot justify the socialism and aggression that underlie your amorphous, incoherent defense of statist IP. You yammer and spit and squirm, but you just can’t do it. So have fun trying.

Unlike you, John Sharp, Richard Harding, Person, I never post under nyms.

Silas Barta December 8, 2009 at 4:27 pm

@Stephan_Kinsella: Silas, the point is you have not and cannot justify the socialism and aggression that underlie your amorphous, incoherent defense of statist IP.

Begging the question, and strawman — I don’t defend statist IP.

You yammer and spit and squirm, but you just can’t do it. So have fun trying.

Ad hominem.

Unlike you, John Sharp, Richard Harding, Person, I never post under nyms.

Then you wouldn’t mind deleting Lord_Buzungulus,_Bringer_of_the_Purple_Light’s off-topic and incivil posts, would you?

Oh, right…

Stephan Kinsella December 8, 2009 at 4:52 pm

“Silas,” nyms are permitted here (that’s not my decision–if it were mine they would not be). If we are to delete incivil [your insinuations of dishonesty on my part, e.g.], off-topic [your recent post on another thread about global warming where you gratuitously brought up my name and IP!], or pestery, gadfly posts, yours would all have to come down.

Lord Buzungulus, Bringer of the Purple Light December 8, 2009 at 4:59 pm

Silas, nothing compares to your rank stupidity. That’s what should be deleted.

And for the tenth time, I am NOT Stephan.

Pedro Carleial December 9, 2009 at 5:51 am

*** Let’s say we have 1000 doors and behind one of them is the answer. ***
This person sees rational thought as random chance.

*** [Human action requires knowledge] It doesn’t. ***
This person also sees humans as automatons. Or perhaps as animals like any other acting automatically.

It is pointless do discuss such a complex issue as property with someone who doesn’t even understand what a human being is.

This is typical of the “economicist” libertarian. Much like the argument that scarcity is the basis for property.

Kinsalla in particular is interesting. The fact that you cannot argue the principle of property (as it applies to knowledge) without discussing the mechanics of how you imagine enforcement of such a principle would be is entirely consistent with my previous experience with you – and typical.

You don’t really reason, you just run simulations of what you think would happen in a given situation and classify them as “me like” or “me no like”. That is why you cannot argue principle, only system.

The term Ayn Rand coined for such mentalities is “concrete bound”.

Bala, at least, should have a clue and be able to understand my argument in principle. I’m curious about his take on it. Engaging you others is not worth the effort.

Peter Surda December 9, 2009 at 6:14 am

>> Let’s say we have 1000 doors and behind one of
>> them is the answer.
> This person sees rational thought as random
> chance.
No action has a 100% chance of achieving the intended result. Does that mean no action can be purposeful? Often gaining an answer requires to perform a large amount of tests that all prove negative before reaching the one that is positive. Does that mean this type of action is not purposeful?

>> [Human action requires knowledge] It doesn’t.
> This person also sees humans as automatons. Or
> perhaps as animals like any other acting
> automatically.
No. This person is claiming that purposeful action does not require the assumptions leading to the action to be true. It merely requires that the actor believes they are true.

Yet another troll missing elementary things of everyday life and instead dreaming up theories in disconnect?

Jay Lakner December 9, 2009 at 7:29 am

Pedro wrote:
“… Much like the argument that scarcity is the basis for property.”

So what is the basis for property then Mr Smarty-Pants?

Why oh why would we assign ownership of material things to individuals if not due to scarcity?

Scarcity is the key to the entire concept of property.
Scarcity is the reason we have conflicts.
Scarcity is the reason why socialism encounters calculation problems.

If you do not understand the importance of scarcity then you simply do not understand economics.

Kerem Tibuk December 9, 2009 at 7:48 am

I almost wholly agree with Pedro, except for

“Independent invention must be recognized. However the burden of proof rests on the person claiming independent invention to show that he did not have access to the original. Patent systems usually circumvent this issue by publishing patent requests and assuming everyone has read them (the merit of this solution is debatable).”

The burden of proof rest on the accuser not the accused. Copying without consent is an act of aggression and the person claiming the other person didn’t independently discovered, but copied his original has the burden of proof.

Many people can not seem to comprehend what Pedro is saying because they don’t have a sense of a natural rights ethics based on objective reality. Also Rothbard is a better source than Rand regarding Ethics and I suggest everyone to read more Rothbard regarding property rights, in general.

Whoever uses the the word “assigned” regarding rights, is a positivist that thinks rights are based on social contracts.

newson December 9, 2009 at 10:02 am

“objective reality”

oxymoron to all but a randian.

Stephan Kinsella December 9, 2009 at 11:12 am

Objectivist Greg Perkins, who previously wrote DON’T STEAL THIS ARTICLE: On the Libertarian Critique of Intellectual Property (discussed in my post Elaborations on Randian IP), has written a post commenting on the present post: An Objectivist Recants on IP??.

My comment there was:

Greg,

For those interested, I’ve laid out why I think the entire Objectivist case for IP is flawed and unlibertarian in various articles and posts. I list these below; I encourage those Objectivists seriously interested IP to consider these arguments.

Articles: “Intellectual Property and Libertarianism” (in particular see here and the section on Libertarian Creationism); also “The Case Against IP: A Concise Guide”; for an alternative to the Randian approach to rights and politics, see What Libertarianism Is.

Media: I discuss problems with Rand’s view at length on the Peter Mac show and at the Mises University this year; also The Intellectual Property Quagmire, or, The Perils of Libertarian Creationism.

Blog posts: Rand on IP, Owning “Values”, and “Rearrangement Rights”; Libertarian Creationism; Objectivist Law Prof Mossoff on Copyright; or, the Misuse of Labor, Value, and Creation Metaphors; Inventors are Like Unto …GODS…. Also these blog posts: Intellectual Products and the Right to Private Property; New Working Paper: Machan on IP; Owning Thoughts and Labor; also Elaborations on Randian IP; and Objectivists on IP.

Stephan Kinsella December 9, 2009 at 11:53 am

See my post Objectivists: “All Property is Intellectual Property”.

Update: Diana Hsieh, the owner of the blog in question, has banned me from commenting there, so I can’t respond or answer questions–so I have to rely on my fellow Misesian commentors here to go over there and make the case.

John Rolstead December 9, 2009 at 9:14 pm

@Bala:
Thank you for sharing your thoughts. Your argument was always constructive. I too came to Mises by way of a footnote in Ayn Rand book. It changed my life as well.

@Stephan Kinsella:
Great work on this topic. You are a fascinating guy. But… IMHO your use of STFU is not conducive to moral-suasion.

@All:
How about we all stick to making our own points and skip the time wasted trying to label others or put them in a box?

@Peter Surda,
Great summary of the situation on IP. Looking at comsumer/producer angles brings things into focus. The problem of using an idea is not that I create something that embodies the idea, it is that I try to sell it and therefore devert monopoly rents from the inventor. I can still create my interpretation of my concept of the idea that I picked up from the inventor’s creation. Afterall, I do own the materials used to create it.

@Jay Lakner:
You laid out a great exposition on rights! Loved it. I think history shows how patents and IP have been used as a means of enforcing monopoly rents on the rest of us.

@Pedro:
Jay is right, in a one man world, the concept of rights does not exist. It is similar to Mel Brooks proclaiming, “It is good to be the King”. If you are the King, there is only one of you and you are superhuman, so you own everything. It is only when humans come into contact with each other on an equal footing that conflict arises. Due to scarcity, we must figure out how to peacefully allocate resources. Property rights are an extension of the ownership of your own body, as Hoppe states.

My use of an idea in no way impinges on your simultaneous use of that idea. Therefore the idea is not scarce. The concept of a single inventor of an idea is silly; it would only apply if a new born babe conceptualized the idea, with no prior knowledge. All ideas are built on the ideas that came before.

If IP is valid, then why would it have a time limit? What other property rights have time limits? A time limit is a utilitarian solution to an invalid premise.

The use of IP is a hold over from the mercantilist days of King granted monopolies. Let’s move on to new ways of collecting rents for ideas! If I write a book and post it online for anyone to read, and then contract with companies to advertise on my site, then I am collecting rents on my content without resorting to IP. If someone want to copy my content off to their site, then they are free to compete, but I am free to inform the public of this fact and intice them to be loyal to my brand.

Does anyone have any good ideas on replacing IP rents? Oh, and anarchism does not have to mean lawlessness, just no government authority. Associations would be fine.

Stephan Kinsella December 9, 2009 at 9:51 pm

In Perkins’ article, cited over on Noodlefood/Hsieh’s site noted above, writes:

The first thing to note is the plain fact that people are routinely prevented from using their material property when it would violate any right — so the protection of intellectual property rights would not be unique in so “controlling” other people in their use of their material property. For example, my neighbor’s person and property rights are not violated when he is not allowed to spontaneously whack me in the head with his fully-owned two-by-four. His rights are not violated in preventing him from using his tangible truck to pull up to my house and drive off with my entertainment center. We are all restricted from using our persons and property to violate the rights of others, and such restrictions do not themselves constitute an infringement of rights because nobody has the right to violate rights.

The fallacy here is assuming that the prohibition on being able to whack your neighbor on the head with your two by four is a limitation or restriction on your ownership of the two by four. It is not. The prohibition on your harming your neighbor has nothing to do with your property–it is a restriction on your right to action. You are not permitted to engage in the action of invading your neighbor’s body–with any means whatsoever. All action employs means. If you are prohibited from committing battery or murder, this implies you can’t use any means to cause this. The means invariably includes scarce resources. These resources may or may not be owned by the aggressor. The aggressor is not permitted to hit his neighbor with his own two by four, or even with the neighbor’s two by four.

If I am not permitted to bash my neighbor in the head wiht my own two by four, that is not because there is a limitation on my ownership rights on the two by four–it it a limitation on waht actions I can perform. And the reason I cannot bash my neighbor in the head is because he owns his body–he has a property right to control his own body. So the inability to use my two by four in a certain way is a result of my neighbor’s property rights in his own scarce resource (his body). This supposed “limitation” on property rights in scarce things presupposes property rights in scarce things.

Note that the reason we all agree I am not permitted to perform this action, is that we all agree my neighbor owns his body. This is not controversial.

But Perkins wants to say that just as your rights in your two by four are limited–you can’t just use it for anything, after all–so your rights in other property is limited. You can’t use it to perform a certain method, say. The problem here is that using the stick to bash in another’s head is aggression, and that’s why it can’t be used that way. But patterning my stick a certain way, or using it to perform a method, or building a machine out of it, does not commit aggression. It does not invade the borders of my neighbor’s property. It does not bash his head in. It does not take any property from him at all. To say that it violates his property rights is to beg the question, by presupposing he has an IP right in some pattern or logos.

Note that Objectivists usually recognize that man has a right to live by right, not by permission. In communist systems you can do only that which is permitted. It’s a sea of prohibitions, with tiny islands of permission. You live by permission of the state-master.

In capitalist systems favored by Objectivists, you can do anything you want, except initiate force against others. It’s an ocean of permissibility or freedom, with little islands of prohibitions–things you may not do. You do not need to ask permission to do something. You may do whatever you want, so long as it does not initiate force–commit aggression–invade the borders’ of others’ property. The Objectivist flips this presumption and adopts one akin to that of communism: you can’t use your property for “whatever you want”–you have to make sure the way you are using it isn’t similar to some other way someone else used their own property before, and if it is, you have to get permission. This is nonsense–and clearly unlibertarian. The only limit on my use of my property is that I cannot engage in aggression–using this property or other resources as means.

Bala December 10, 2009 at 3:59 am

Stephan,

” This is nonsense–and clearly unlibertarian. ”

You can’t convince an Objectivist who thinks Libertarianism is nonsense by telling him that this statement is “unlibertarian”. IMO, you need to show him that it is contradictory to basic Objectivist principles themselves (that’s what I tried to do). Just wanted to highlight this for all Libertarians who are still reading this.

Pedro Carleial December 11, 2009 at 5:10 am

* Due to scarcity, we must figure out how to peacefully allocate resources. *
Scarcity is not the basis of property right. Property rights are a political concept, they must be based on something hierarchically antecedent. Economics – a special science – is not it.

Property rights, as all valid rights, are based on Ethics, not on Economics.

Since libertarian ethics all branch off an arbitrary (i.e. ungrounded, not rationally derived) “non aggression principle”, it is quite obvious why libertarians cannot understand the actual nature of property rights. Their ethics can’t support them – so they try to ground them in economics.

Since the “non aggression principle” is actually right (and an Objectivist knows WHY it is right, and in what context), it is easy to see why the discussion between Objectivist and libertarian becomes so charged.

To use an exagerated metaphor to illustrate the point:

Let us say two people are discussing baseball. One of them understands the principle of gravitation, while the other simply assumes “the falling principle”.

While the discussion is restricted to Earth, they agree completely – their concepts produce the same results. But one day they start talking about how it would be to play baseball on the Moon.

At this point the guy who simply uses “the falling principle” is out of his depth, but he doesn’t know it. The claims of the other guy will seem absurd (mile long home run hits???).

The fact that his “principle” is not grounded in solid understanding, but a floating abstraction, renders him incapable of following the guy who actually understands gravitation. And makes that guys claims seem quite absurd.

In this case the Objectivist, who’s concept of rights is firmly grounded in a coherent ethics derived from basic facts and actual philosophical axioms is like the person who understands gravitation. The guy who blindly applies “the falling principle” because he doesn’t know better is the libertarian.

And when the Objectivist tries to explain to the libertarian that in certain contexts his understanding is incorrect, the libertarian answers “ah so you are in favor of aggression!”. Or, in our metaphor, “ah, so you are saying things don’t fall!”.

John Donohue December 11, 2009 at 9:32 am

Pedro Carleial that is a good example, hope you don’t mind if I use it myself.

You are correct to pinpoint that because libertarians and Objectivists share a certain set of agreement that when we move off of that set there is a jarring disjoint.

The same thing happens between Christians and Objectivists and Conservatives and Objectivists and even Lefties and Objectivists! Just because the paths travel together in certain places does not mean they start from the same place, end in the same place or fully validate each other.

John Donohue December 11, 2009 at 9:33 am

Mr. Kinsella, I’ve read this over a few times. Can’t parse it. You are saying two different things about Objectivists, first that we have one point of view, but then “flip it.”

“In capitalist systems favored by Objectivists, you can do anything you want, except initiate force against others. It’s an ocean of permissibility or freedom, with little islands of prohibitions–things you may not do. You do not need to ask permission to do something. You may do whatever you want, so long as it does not initiate force–commit aggression–invade the borders’ of others’ property.

The Objectivist flips this presumption and adopts one akin to that of communism: you can’t use your property for “whatever you want”–you have to make sure the way you are using it isn’t similar to some other way someone else used their own property before, and if it is, you have to get permission. This is nonsense–and clearly unlibertarian. The only limit on my use of my property is that I cannot engage in aggression–using this property or other resources as means. ”

Do you stand by the full syntax of this or do you wish to clarify?

Peter Surda December 11, 2009 at 9:44 am

While I’m not Stephan, I think it’s a typo and the first paragraph should say “Austrians” instead of “Objectivists”.

Stephan Kinsella December 11, 2009 at 10:15 am

Donohue, Surda: No, I meant “In capitalist systems favored by Objectivists, you can do anything you want.”

Sure, this is true of Austrians too. But it’s supposed to be true of Objectivists. Objectivists are libertarians on the basics of politics. I’m showing that this basic position is undermined by their IP views. IT’s incoherent.

I’m saying that you would probably agree with me that the basic idea is you can do anything you want, you should not have to live by permission. But then I’m arguing that the Objectivist-qua-IP-advocate ends up adopting the opposite presumption.

John Donohue December 11, 2009 at 12:10 pm

Well, the writing was unclear. Now that you clear it up it is nothing new, just your same erroneous claim. Your error continues to be the false claim that ownership of the value embedded in a tangible product that made it possible/valuable in the first place is transferred to the purchaser of said product.

This IP issue is a red herring. Avoidance. Obsessing on it masks the bankruptcy of the underlying conjectured condition of man under anarchism, which is: victim of multiple gangs/agencies/states frequently at war with each other.

Until that is cleared up, the issue of IP — although denying intellectual property rights would still be wrong — is trivial.

Shay December 11, 2009 at 1:30 pm

Pedro Carleial, your posts display a kind of supriority where you assume that you are correct and that others are wrong, even though the reverse could just as well be true. It’s ill to read because you put down those you’re discussing with. Might I suggest that you simply recognize that there is a conflict between participants, and try to find the cause of it, without assuming it lies in others? If the goal is to truely understand, then you must be open to the flaws being in your own understanding.

Silas Barta December 11, 2009 at 2:31 pm

@Stephan_Kinsella:

The fallacy here is assuming that the prohibition on being able to whack your neighbor on the head with your two by four is a limitation or restriction on your ownership of the two by four. It is not. The prohibition on your harming your neighbor has nothing to do with your property–it is a restriction on your right to action.

Step back for a minute here: look at what you are trying to do: you are trying to refute a position by a relabeling of an event. That should cue you in on something — that you made a mistake somewhere. The person you were responding to was saying that IP’s restrictions on “other people’s property” is not unique, in that physical property rights do this too. It is a point I have made before as well. You think that by shifting the focus of your description of the event — from the two-by-four to the neighbor’s head, you have refuted this. You haven’t. The prohibition pertains to both the 2×4 *and* the neighbor’s head.

As usual, we can see the problem most clearly in the EM spectrum. Like IP, it restricts people

Moreover, you’re begging the question when you call it “already-owned property”. The very question at stake is, who owns what? How far do those rights extend? You are assuming your conclusion when you say someone *already* owns the right to do this or that with “their” property. Even when someone owns e.g. land, it doesn’t mean they get to gun down aircraft above it. Someone who assumed it did in a debate about property rigths would be likewise begging the question. As when assuming that land gets you the right to EM radiation passing through. As when assuming property gets you all IP rights.

By the way, I will repeat my objection to Lord_Buzungulus,_Bringer_of_the_Purple_Light, whoever he is. You need to delete his incivil posts and those which do nothing but insult without adding to the discussion. Don’t try to excuse his behavior by saying you’d “have to” delete mine too. I *want* you to delete the posts of mine that are incivil. But keep in mind, just because they irritate you doesn’t mean they’re agains the rules of this forum. My remarks contribute to the discussion, while Lord_Buzungulus,_Bringer_of_the_Purple_Light’s do not.

Your frustration at the strength of my arguments is not the same as incivility.

If you don’t have a reason to grant Lord_Buzungulus,_Bringer_of_the_Purple_Light special privileges, then please remove the offending comments, because that’s exactly what it looks like.

Bala December 12, 2009 at 12:10 am

In case anyone is interested in the response of Objectivists (at least some of them) to this little piece of mine, I’m just about wrapping up a discussion with some of them on the Objectivist blog “Noodle Soup”

http://www.dianahsieh.com/blog/2009/12/objectivist-recants-on-ip.shtml

The discussion was fairly intense and (I think) I have managed to dissect the traditional Objectivist position on IP and shown it to be contradictory to basic Objectivist principles themselves.

I am mentioning this so that it enables more people to engage Objectivists they meet and try to bring them around by showing them the folly of treating ideas & patterns as “property” the way Ayn Rand did and Objectivists have been doing since that.

Hope it helps.

Jesse Forgione December 26, 2009 at 12:00 pm

@Pedro Carleial,

Your gravity/baseball analogy was brilliant. I think it’s a perfect illustration of the disparity between a deep and principled understanding, and a more superficial one. However, you’ve applied it in reverse. It’s only a superficial understanding of the concept of property that misapplies it to patterns and ideas.

You wrote:
“Property rights are a political concept, they must be based on something hierarchically antecedent. Economics – a special science – is not it.”

Ethics presupposes purposeful action, and any system of ethics is based on an understanding of human action, as such.
Ethics answers the question: “given that action works the way it does, which are the right actions to take?”

While the Objectivist ethics, like your “falling principle” is of course correct, it is based on the science of human action. In other words, it is based on economics (or more generally, praxeology).
The science of human action is not only prior to politics, but it’s required for ethics as well. Mises showed how it was derivable from epistemology.

Mark Hubbard January 23, 2010 at 7:31 pm

This argument and reasoning being raised by Bala are false. I have debunked it in posts starting here:

http://www.solopassion.com/node/7285#comment-83769

Then further developed here:

http://www.solopassion.com/node/7285#comment-83773

Finally a tail piece here:

http://www.solopassion.com/node/7285#comment-83800

Objectivism does not support a no-IP position – from the founder of objectivism on up – just as the no-IP position could not support a capitalist economy, and is the enemy of individual liberty. I put it to you Mises would also be appalled at the duplicitous anarchist position being promoted on this site.

Clarine Caroli March 26, 2010 at 2:13 pm

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Update: See also Jeff Tucker, The Great IP Breakthrough:

Some insight here:

While Objectivists, libertarians and conservatives strongly agree on the principle of physical property rights, the picture is much more divided when it comes to ‘intellectual property’, a catch-all phrase for several different items, including patents, copyright and trademarks. In a landmark essay by Stephan Kinsella, Against Intellectual Property, argues that ‘Intellectual property’ is not only meaningless and harmful, it is in direct violation of the general principle of private property, and primarily constitutes a state-sanctioned creation of artificial scarcity, leading ultimately to poverty, not job creation and wealth.

The wider libertarian movement accepted the argument, put it into action (see www.mises.org/books) and moved on. Objectivists, on the other hand, maintain that what Ayn Rand spoke and practiced on the subject remains the unalterable truth.

{ 7 comments… read them below or add one }

Luis Ramirez December 25, 2009 at 7:56 pm

The catch-all phrase “intelectual property” is most definitely mercantilistic. I wonder if as part of her zeal (and of her followers) to keep her works under strict scrutinnee is the reason why objectivists rationalize the whole IP issue.

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Gil December 25, 2009 at 10:49 pm

“. . . leading ultimately to poverty, not job creation and wealth.”

Wouldn’t know it.

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J. Neil Schulman December 26, 2009 at 8:57 pm

“The wider libertarian movement accepted the argument”

What? Is anyone who disagrees an “IP denier” equivalent to a holocaust denier?

Jesus H. Christ.

J. Neil Schulman, author
Informational Property: Logorights
at http://jneilschulman.rationalreview.com/2009/12/classic-j-neil-informational-property-logorights/

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P.M.Lawrence December 26, 2009 at 10:14 pm

J. Neil Schulman wrote of “The wider libertarian movement accepted the argument”, ‘What? Is anyone who disagrees an “IP denier” equivalent to a holocaust denier?’

No, that’s overstating it. Rather, anyone who currently disagrees is not typical of the wider group – no more and no less. It’s not as though that would trigger a torrent of abuse, given the nature of that group, although of course such a person might not like the initiatives the others took.

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boniek January 5, 2010 at 8:41 pm

I’m very much interested in emerging myself into libertarian view of intelectual property rights. Where I can find comprehensive compendium on this subject?
“The wider libertarian movement accepted the argument, put it into action (see mises.org/books) and moved on. ” is not really helping :)

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Jay Lakner January 5, 2010 at 9:06 pm

Boniek,

Here is a good start:
http://mises.org/daily/3682

Also, I recommend this book:
http://mises.org/books/against.pdf

REPLY

Cathy Smith July 30, 2010 at 9:05 am

“No, that’s overstating it. Rather, anyone who currently disagrees is not typical of the wider group – no more and no less. It’s not as though that would trigger a torrent of abuse, given the nature of that group, although of course such a person might not like the initiatives the others took.”

Really? Where have you been hanging out?

Share
{ 6 comments }

IP and Artificial Scarcity

“IP and Artificial Scarcity”, Mises Blog (Dec. 3, 2009). Archived comments below.

Update: See also IP Answer Man: Death Toll of Patent Law.

IP and Artificial Scarcity

12/03/2009

Someone recently told me “I just ran across a few of your interviews and writings. I was particularly impressed with the point that IP creates scarcity where none existed before. Despite its obviousness, it is characteristic of IP that had not occurred to me before.”

So I thought I would elaborate a bit on this. The “artificial scarcity” insight is indeed a good one, but it is not mine. From pp. 33-34 of Against Intellectual Property:

 

Ideas are not naturally scarce. However, by recognizing a right in an ideal object, one creates scarcity where none existed before. As Arnold Plant explains:

It is a peculiarity of property rights in patents (and copyrights) that they do not arise out of the scarcity of the objects which become appropriated. They are not a consequence of scarcity. They are the deliberate creation of statute law, and, whereas in general the institution of private property makes for the preservation of scarce goods, tending . . . to lead us “to make the most of them,” property rights in patents and copyrights make possible the creation of a scarcity of the products appropriated which could not otherwise be maintained.[64]

Bouckaert also argues that natural scarcity is what gives rise to the need for property rules, and that IP laws create an artificial, unjustifiable scarcity. As he notes:

Natural scarcity is that which follows from the relationship between man and nature. Scarcity is natural when it is possible to conceive of it before any human, institutional, contractual arrangement. Artificial scarcity, on the other hand, is the outcome of such arrangements. Artificial scarcity can hardly serve as a justification for the legal framework that causes that scarcity. Such an argument would be completely circular. On the contrary, artificial scarcity itself needs a justification.[65]

Thus, Bouckaert maintains that “only naturally scarce entities over which physical control is possible are candidates for” protection by real property rights.[66] For ideal objects, the only protection possible is that achievable through personal rights, i.e., contract (more on this below).

[64] Arnold Plant, “The Economic Theory Concerning Patents for Inventions,” p. 36. Also Mises, Human Action, p. 364: “Such recipes are, as a rule, free goods as their ability to produce definite effects is unlimited. They can become economic goods only if they are monopolized and their use is restricted. Any price paid for the services rendered by a recipe is always a monopoly price. It is immaterial whether the restriction of a recipe’s use is made possible by institutional conditions–such as patents and copyright laws–or by the fact that a formula is kept secret and other people fail to guess it.” [For more on Mises’s view of IP, see Mises on Intellectual Property.]

[65] Boudewijn Bouckaert, What Is Property? (text version) in “Symposium: Intellectual Property,” Harvard Journal of Law & Public Policy 13, no. 3 (Summer 1990), p. 793; see also pp. 797-99.

[66] Bouckaert, “What is Property?” pp. 799, 803.

Bouckaert’s paper, What Is Property? (text version), is, by the way, superb and highly recommended.

Update: Jeff Tucker’s article and recent speech had me thinking about something that ties into this post well. People want to impose artificial scarcity on non-scarce things because they think scarcity is good. But they have it backwards. If anything, we should want material things to be non-scarce.

In Tucker’s talk, he was pointing out the difference between scarce resources and non-scarce, infinitely reproducible ones. Yes, they are different, but I think we also need to combat another fallacious view: people seem to implicitly think it’s bad that ideas are infinitely reproducible. This is a “problem” we need to combat by making them artificially scarce. But it’s a good thing.

i.e., at least ideas are non-scarce; but unfortunately, material things are scarce. But it would be good if material things were more abundant. So imagine that some benevolent genius invents a matter-copying device that lets you just point it at some distant object, and instantly duplicate it for free for you. So I see a coat you are wearing, click a button, and now I have an identical copy. I see you having a nice steak, and duplicate it. Etc. This would make us all infinitely wealthy. It would be great. Of course people would fear the “unemploymetn” it would cause–hey, I want to be unemployed and rich! And the rich would hate it because they would now not be special. They couldn’t lord their Rolls Royces and diamonds over the poor; the poor would have all that (it would be similar to how audiophiles were irked by the advent of the CD so tried to find granite turntables etc. to pretend they were still better). So imagine a rich guy suing a guy who “copied” his car…. imagine farmers suing people who copied their crops to keep from starving… how absurd! And what damages would they ask for? Not monetary damages–the defendant could just print up wealth to pay him off! So the only remedy he could want would be to punish or impoversih the defendant… for satisfation, to once again feel superior. How sick.

As my friend Rob Wicks noted, you could imagine a short story based on this in which judge orders a famine as a remedy to crop-copying.

 

Archived comments:

 44 comments… read them below or add one }

Shay December 3, 2009 at 12:46 pm

The usual justification for intellectual monopolies is of course that of incentive. Monopolization limits them to behaving almost like physical goods, in terms of scarcity. This allows the usual market mechanism to fund their production, where capital is invested and profit made via sales. What a costly way to achieve this, though, by negating their primary quality, that of near costless reproduction. If at some point in the future someone develops a way to copy physical goods with similar ease, I wonder whether it will be severely restricted as well.

It’d be interesting to come up with other hypothetical examples of restrictions like this put on things in order to encourage investment. One that comes to mind is making it illegal to enter a market “developed” by another company. For example, once the first company released a portable music player, it could be made illegal for any other company to make portable music players without a license. The first company had to make significant investments to develop the product and test the market. If it didn’t have market protection, other companies could come after it and avoid the initial costs of feeling out the market, thus removing the incentive of companies to find new markets for new products. Similar laws could be made for new services, forming of new towns, etc.

REPLY

Silas Barta December 3, 2009 at 12:56 pm

So would EM spectrum rights be an example of an artificial but justified scarcity? After all, this scarcity is not “possible to conceive of it before any human, institutional, contractual arrangement”, Bouckaert’s criterion.

Do you follow the logical implication of your view, Stephan_Kinsella, that there should be no EM spectrum rights, either? My broadcasting does not prevent you from broadcasting. Oh sure, you’d *prefer* that your signal be clear, but why does that matter?

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Shay December 3, 2009 at 2:01 pm

This article isn’t about Mr. Kinsella; it’s about creating artificial scarcity where there is none. The notion of spectrum rights is separate from ideas-as-property because there is an inherent physical nature to it, thus I don’t think it’s part of this topic. If you read the article, you’ll see it’s talking about creating artificial scarcity for the sole purpose of turning them into conventional market goods, even though this ultimately reduces their natural value.

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Some Dude December 3, 2009 at 2:24 pm

If fewer people write new books, then new books are more scarce. If few people develop new medical drugs, then new medical drugs are more scarce.

It is very clever to say “IP creates scarcity where none existed before”, but it does not address the fact that fewer things might exist if it weren’t for IP protections.

It may be true that the same number different books of different drugs might be invented even if other companies can simply copy a text or formula and compete with the author or inventor. I don’t know. But saying “IP creates scarcity where none existed before” like it ends the argument is unhelpful. As far as I know, there would be scarcity, since there might be fewer new products.

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Silas Barta December 3, 2009 at 2:27 pm

@Shay: This article isn’t about Mr. Kinsella; it’s about creating artificial scarcity where there is none.

So is EM spectrum rights.

The notion of spectrum rights is separate from ideas-as-property because there is an inherent physical nature to it,

information has a physical component to it as well.

If you read the article, you’ll see it’s talking about creating artificial scarcity for the sole purpose of turning them into conventional market goods,

And amazingly, that’s what’s done with the EM spectrum! Now it’s something that can be bought and sold!

You really need to work harder at coming up with a way to distinguish these cases.

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scott t December 3, 2009 at 3:15 pm

“If fewer people write new books, then new books are more scarce. If few people develop new medical drugs, then new medical drugs are more scarce.

It is very clever to say “IP creates scarcity where none existed before”, but it does not address the fact that fewer things might exist if it weren’t for IP protections.”

…the fact….that fewer things…might….exist????

is that a fact??

i have heard others here speak of new equlibriums establishing themselves out side of ip…i can only speculate how that would occur.
if say sony added 10.oo extra to every media player or tv it sold and and the extra money went to putting artists on retainerships for studio performances…medical insurance slash drug research companies…reduced insurance for trying experimental drugs, etc. i am not completely sure.

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Martin OB December 3, 2009 at 3:57 pm

I see an area where artificial scarcity would be a good thing: blog comments ;)

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Shay December 3, 2009 at 4:06 pm

Silas Barta, you’re correct about EM being similar. What I was really getting at is that you seem to have an ongoing debate with Mr. Kinsella about the EM issue, and I was trying to suggest that you let this discussion be about the article, and not simply a continuation of your discussion with him on EM. My idea was that there is value to limiting this discussion to that of how IP in general is a form of artificial scarcity. By discussing a single topic, everyone can follow along more easily, and there can be more focus. But whatever.

Some Dude, “IP creates scarcity where none existed before” isn’t meant to end the argument, simply to highlight a fumdamental fact of it. It’s an odd thing to try to eliminate one of the key aspects of something which gives it great value over material objects, to try to make it emulate the limitations of material objects. Sure, there are reasons people feel this is useful, but this basic fact should give one pause, considering all the drawbacks that the scarcity brings.

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Hume December 3, 2009 at 4:21 pm

Stephan,

This is off topic, but I remember a website you put together that was a collection of libertarian and philosophical publications, mostly in pdf format. I believe the site was stephankinsella.com/texts, or something along those lines. Is this site still up and running? Thanks.

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Hume December 3, 2009 at 4:22 pm

Nevermind, that is the website. For some reason I got an error message. Thanks.

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Silas Barta December 3, 2009 at 4:50 pm

Shay, if I can show why the arguments in *this* article prove something that Stephan_Kinsella — and most IP opponents — don’t believe, that *makes* it relevant.

The world doesn’t neatly divide into separate topics like you seem to think.

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bob December 3, 2009 at 4:58 pm

@some dude

new drugs – are you saying christopher reeve wouldn’t have put as much money into curing his condition if it couldn’t have been kept scarce? This seems like the avenue the market would take. There are still strong incentives and methods to create new drugs. People would have more money to fund such efforts because IP wouldn’t protect drug companies from competition, reducing drug costs.

new books – the highest selling book of all time isn’t copyrighted. and maybe it’d be a good thing if books were more suited to art, expression, science, and other such ideas that seek publicity from their own merit, rather than cheap entertainment.

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Ohhh Henry December 3, 2009 at 5:17 pm

“People want to impose artificial scarcity on non-scarce things because they think scarcity is good. But they have it backwards. If anything, we should want material things to be non-scarce.”

Let me try to put it another way. It’s not that they think scarcity itself is good. Rather, they wish to create a brand new type of scarcity – property – so that they can homestead it. Get it for free in other words, and then make everyone else pay for it.

While governments can and do confiscate “real” property from people, this action is fairly risky because ordinary property (land, money, labor) is universally recognized as such and there will be determined resistance to its confiscation.

But if you can invent an entirely new type of property then it’s like a whole new territory waiting to be homesteaded by legislators, lawyers, judges, rent-seekers and camp followers of all kinds.

Intellectual property – the ownership of thoughts and ideas – is such an indefinable and airy-fairy concept that there is literally no end to amount of complicated and remunerative legalistic webs that can be woven around it. Instead of conceding ownership of thoughts to the individuals possessing the brains in which the thoughts exist, they invent a kind of intellectual ether in which thoughts are supposed to float like fluffy sheep, declare this “thought-ether” to be a commons which is too valuable to exist unmanaged and unlicensed, and then appoint themselves as its administrator.

Before you know it, they have people stating (as I have frequently seen in online forums) that copying a piece of music without paying the copyright holders is “exactly like walking into a store and stealing a CD”. A record company owns that part of the ether in which Guns N Roses songs exist, and anyone who grabs it from the ether without paying them is just a doggone thief!

There are probably other types of undefinable, non-scarce, so-called property which governments have invented, then homesteaded and declared themselves the exclusive administrators. For example, “our vital interests in the Middle East”. What’s a vital interest? How can you own oil which has not even been extracted or shipped yet, and which may be bought by someone else entirely?

“Our children’s future” is another one that’s been homesteaded, it’s good for a few tens of billions per year.

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Some Dude December 3, 2009 at 5:45 pm

bob
new books – the highest selling book of all time isn’t copyrighted. and maybe it’d be a good thing if books were more suited to art, expression, science, and other such ideas that seek publicity from their own merit, rather than cheap entertainment.

That is a fairly presumptuous statement. You say it would be a good thing, but apparently cheap entertainment is pretty popular. Are you conceding that cheap entertainment would become more scarce without IP protections?

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Silas Barta December 3, 2009 at 5:46 pm

@bob: new factories – are you saying that Joey McJoester wouldn’t have put as much money into building a widget factory if it couldn’t have been kept scarce? This seems like the avenue that the market would take. There are still strong incentives and methods to create new factories in the absence of libertarian property rights. People would have more resources because they could just help themselves to whatever they needed without having to pay someone with title to the resources.

Yeah, libertarianism sure works — as long as everything is done as an act of charity.

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Peter Surda December 3, 2009 at 5:58 pm

@Silas
You have not addressed my objections for several months, so let me reiterate:
You argument boils down to: as a restriction (e.g. EM rights, sound waves, IP) has a benefit to someone, they are alike.
Which is obviously a completely pointless argument, because any restriction whatsoever has a benefit to someone. Taxes, wars, censorship, state religion, they all benefit someone. Does that mean they are all justified? I don’t understand why you use this argument.
However, there is a significant difference between those two (EM and IP), which I have been pointing out to you and which you have either ignored or ridiculed but never addressed. The difference being, that in order to consume the goods addressed by IP, there is no necessity to exclude (or regulate) others. In EM and material goods, the necessity exists. This has independent of subjective valuations and and objectively measurable phenomenon. You can create an instrument which measures EM consumption by others, but you can’t create an instrument that measures IP “consumption”.
If you disagree, then how about demonstrating how you can consume EM spectrum that is already being consumed by someone else? Or how about constructing an instrument that measures people using IP or interfering with other people’s IP?

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newson December 3, 2009 at 7:10 pm

silas is right to pin down kinsella over em, where it seems to me that much work remains to be done.

to me the em issue is a bit like trademark. if i’m happy listening to 2dayfm, and then the new guy in town transmits over my favourite radio show, i the listener can sue him, but 2dayfm can’t. i can oppose the invasion of my house by radio waves that lessen my enjoyment. but 2dayfm doesn’t have a monopoly right to transmit to me.

in a practical sense, all this could be sorted out via torts. newcomer transitters would be be averse to using existing frequencies on account of claims for damages by existing listeners, but they should not be barred from doing so in advance.

radio waves have to pass through private property not owned by the transmitter; this is not the typical homesteading situation where defined borders enclosing the property are essential.

reservation of bandwidth for essential services appears to me to be a tacit acknowledge that government owns the entire landmass. police at least need a warrant to enter my physical property, but police radio waves can intrude and there’s nothing i can do to contest this invasion.

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ABR December 3, 2009 at 10:15 pm

“Ideas are not naturally scarce.” — They are easily transposed from one human mind to another via language.

But the minds that conceive interesting or profitable ideas, these minds are few.

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Stephan Kinsella December 3, 2009 at 10:42 pm

ABR: “But the minds that conceive interesting or profitable ideas, these minds are few.”

Well, even if this were true, so what? That does not mean that patterns of information are economically scarce. They are not; they can be copied infinitely without taking them away from anyone.

And it is not true. Listen to Tucker’s speech linked above–the stuff about Eli Whitney etc.–the cotton gin and other inventions were not just invented out of nothing one day by one man… it’s been a sequence of gradual contributions by thousands of people over centuries. In our movement we have too much of One Big Man syndrome–too much focus on Big Key Players in economic history, in science, in politics, in technology and invention and music and art. It’s thousands and millions of often small contributions, building on what others are doing and have done.

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ABR December 3, 2009 at 11:27 pm

Newton would likely not have developed his theory of gravity had Kepler not earlier developed his 3 laws of planetary motion. Does that make Newton a pygmy? No. He used Kepler’s work and invented calculus to produce his own great work on gravity.

Geniuses are few and far between. Current IP law does nothing to reward those involved in pure math or science.

Should we expand IP protection to pure ideas or formulas? No. The consequences would be disastrous if not ludicrous.

Is there some way we could reward an Einstein for his contributions? Yes: it’s called charity. Do we want our brightest and most productive minds to be relying on charity? It doesn’t sit well with me, but perhaps the alternatives are worse.

The current IP protection seems also to be extreme and in some cases, counter-productive. Is there a fix? I don’t know.

We could eliminate IP protection entirely, in which case a larger class of productive minds would either end up as charity cases or employed in work that earns a living.

It seems plain wrong to me that a person who digs a ditch merits pay, while someone who makes a hugely important discovery merits nothing.

My gut feeling in no way justifies IP law or State coercion. It’s just a gut feeling.

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newson December 3, 2009 at 11:46 pm

the ditch digger should pay royalties to the genius who thought up the shovel…it just seems plain right.

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Kerem Tibuk December 4, 2009 at 6:34 am

“I just ran across a few of your interviews and writings. I was particularly impressed with the point that IP creates scarcity where none existed before. Despite its obviousness, it is characteristic of IP that had not occurred to me before.”

If you don’t define concepts clearly this kind of fallacy is bound to happen.

What is artificial scarcity and what is natural scarcity?

Is apples naturally scarce or artificially scarce?

Can apples be produced so abundant that they wouldn’t fetch any price?

If they can be, but they aren’t because men doesn’t want it that way, can this be a case of artificial scarcity?

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Shay December 4, 2009 at 9:06 am

“the ditch digger should pay royalties to the genius who thought up the shovel…it just seems plain right.”

Agreed! And similarly, the townspeople should pay the ditch diggers monthly for the benefit of not having flooded streets. And don’t forget the monthly payment to the plumber who installed the fixtures when your house was built. After all, you’re constantly picking the fruits of their labor, so it’s only right that you pay for each one.

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Peter Surda December 4, 2009 at 10:05 am

@ktibuk:
First of all, I don’t like the term scarcity and I don’t think it’s appropriate to use it with regards to IP. I prefer rivalry.
Scarcity => supply is finite.
Rivalry => consumption decreases supply.
In my opinion, those two are not identical. However, I remember in one of Stephan’s talks he said that he considers “rival” to have the same meaning as scarce. So I’ll use the word “scarce” in second meaning.

> What is artificial scarcity and what is natural
> scarcity?
Natural scarcity is a result of natural phenomena, when consumption decreases the supply. Artifical scarcity is not a result of natural phenomena, consumption wouldn’t decrease the supply, but there are other circumstances that don’t allow one to consume the good (e.g. social pressure, market regulations).

> Is apples naturally scarce or artificially scarce?
Ask yourself: if an apple is consumed, does the supply decrease?

> Can apples be produced so abundant that they
> wouldn’t fetch any price?
As long as consumption decreases supply, they are scarce. Only if it was possible, somehow, to eat an apple without the apple being “used up”, then they would be non-scarce. Maybe if we had replicators such as in Star Trek, apples might be considered non-scarce (although as long as they would have to be powered, even that is not entirely correct).

Also remember that if person A has apples, and person B grows additional apples, person A’s ownership does not magically extend over to person B’s apples.

> If they can be, but they aren’t because men
> doesn’t want it that way, can this be a case of
> artificial scarcity?
Unless consumption leaves the existing supply intact, no matter how much you produce, it will still be scarce. Even if you filled our whole solar system with apples, they would be scarce.

Scarcity is not about production, it’s about consumption. IP, on the other hand, is about production. Excessive attempts to thwart consumption would not be simple or socially acceptable, therefore the law targets producers (competitors). However in the recent times, we have seen an increasing amount of attempts to apply IP to consumers, often in ways that do not have precedents or legal foundation. Just like I said a couple of sentences back, this causes enforcement problems and increasing protests.

Cheers,
Peter

REPLY

Bala December 4, 2009 at 10:50 am

Kerem Tibuk,

First you say this

” If you don’t define concepts clearly this kind of fallacy is bound to happen. ”

and then you say this

” Can apples be produced so abundant that they wouldn’t fetch any price? ”

It’s not about “apples” in general and in the plural sense either. The apple in my hand is scarce because there is only 1 of it. The apple in my hand cannot be in yours as well unless you are the kind that feels you can have your cake and eat it too. Actually, that is a fundamental aspect of all physical goods – there is only 1 of each. That’s the real concept of scarcity.

The same idea, on the other hand, can be in both our minds at the same time. As long as we are talking of the same idea, there is no such thing as the idea in mind and the idea in your mind. They are the same and can simultaneously exist in 2 locations. That’s why ideas are not scarce.

The key point about scarce resources is that they have to come out of one person’s hands to go into another’s. That’s not true of ideas. If your idea comes from your head into mine, it does not cease to exist in yours.

Wonder who is engaging in fallacious arguments out here….

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Nathan December 4, 2009 at 11:12 am

It’s somewhat comical how Silas jumps in and post his nonsensical EM spectrum question every time one of these is made. EM spectrum is not like IP, and even if it were, there is not a strongly coherant argument for controlling it. Somalia, has NO EM spectrum laws, yet has the most highly developed cell phone network in Africa. AM and FM are only scratching the surface of what is possible in signal processing and broadcasting. It is possible to send and infinite amount of information over any medium using electromagnetic waves.

Broadcasting EM spectrum is a form of pollution and as society moves more towards being information based we will see more businesses and individuals requesting their property not be invaded EMI from the local radio, satellite, and government broadcast systems.

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scott t December 4, 2009 at 1:08 pm

“As long as consumption decreases supply….”

the greater extent that an ‘idea’ is consumed in the market it seems to me that idea actually becomes less scarce.

if correct, it would seem that ideas themselves dont respond to scarcity laws but the generators of ideas (poeple) are.

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JL Bryan December 4, 2009 at 1:59 pm

@scott t

That’s a really nice point. The more IP is “consumed” (learned or copied) the more abundant it becomes–the exact opposite of what happens with physical resources.

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C Keith December 4, 2009 at 2:42 pm

It seems to me that the whole EM spectrum issue is not about IP whatsoever. It is more like land with an added dimension. Property rights are assigned by geographical location and frequency, with enough deadband between slices to prevent interference. Trespassing (interference) can be handled easily by the courts.

To homestead, I first must locate a portion of the spectrum that is not being used in the area and transmit at a power that doesn’t leak significantly into the listening area of another spectrum owner’s transmitter. In addition, I might timeshare on a frequency band and location.

The EM spectrum is a scarce good, completely unlike IP. Finite bandwidth is available at any particular time and place for transmitting information, and some frequencies are better suited that others for certain kinds of transmission. Only certain frequencies are capable of sky-wave propagation, for instance. It seems like only a person completely unfamiliar with radio could mistake it with IP.

REPLY

Silas Barta December 4, 2009 at 3:16 pm

Nathan said:

It is possible to send and infinite amount of information over any medium using electromagnetic waves.

Wow. Hope that gives you guys an idea of what I’m dealing with here.

(In case you didn’t know, infinite information transfer capacity is impossible, as it violates the laws of thermodynamics. Stephan_Kinsella can confirm this.)

@C_Keith:

Why does broadcasting at frequency F count as homesteading? That’s my point. By broadcasting at F, you don’t prevent me from broadcasting at F, nor I you. We just make it less valuable for each other. But why does that matter? If you accept that it does matter, I can make the same claim for IP — you diminish the value by being able to “broadcast” the same idea that I got to first.

Think about it.

REPLY

Stephan Kinsella December 4, 2009 at 3:27 pm

C. Keith:

It seems to me that the whole EM spectrum issue is not about IP whatsoever. It is more like land with an added dimension. Property rights are assigned by geographical location and frequency, with enough deadband between slices to prevent interference. Trespassing (interference) can be handled easily by the courts.

To homestead, I first must locate a portion of the spectrum that is not being used in the area and transmit at a power that doesn’t leak significantly into the listening area of another spectrum owner’s transmitter. In addition, I might timeshare on a frequency band and location.

The EM spectrum is a scarce good, completely unlike IP. Finite bandwidth is available at any particular time and place for transmitting information, and some frequencies are better suited that others for certain kinds of transmission. Only certain frequencies are capable of sky-wave propagation, for instance. It seems like only a person completely unfamiliar with radio could mistake it with IP.

You are quite right; great points. I made similar points in Why Airwaves (Electromagnetic Spectra) Are (Arguably) Property.

Poor Silas has a monomaniacal, yet gadfly-like, obsession with this issue, in his desperate desire to defend some IP system (though like all other IP advocates he can’t even describe the system he advocates).

REPLY

Peter Surda December 4, 2009 at 3:58 pm

@Silas:
> Why does broadcasting at frequency F count as
> homesteading?
Dunno. Maybe it doesn’t. From my point of view it’s completely irrelevant.

> That’s my point. By broadcasting at F, you don’t
> prevent me from broadcasting at F, nor I you.
Yes Silas, as usually, you are correct in a completely irrelevant way. As I said a couple of posts above, scarcity is about consumption, not production. And broadcasting is not a consumption of EM spectrum, rather signal transfer is. If one signal transfer prevents another signal transfer, then EM spectrum is scarce.

> We just make it less valuable for each other.
Again, correct but irrelevant. We rejected the value based property definition, remember?

> But why does that matter?
It doesn’t.

> If you accept that it does matter, I can make the
> same claim for IP — you diminish the value by
> being able to “broadcast” the same idea that I
> got to first.
Again, completely irrelevant. Any action whatsoever can decrease the value of immaterial goods.

Have you created the fabled instrument that measures IP interference yet?

Cheers,
Peter

REPLY

C Keith December 4, 2009 at 5:26 pm

Thanks Stephen. I’ll go check out your other post next.

> Why does broadcasting at frequency F count as
> homesteading?
Well, if that band is unused at the particular time and place, then it is simply the appropriation of an unused good from nature. This is the definition of homesteading. If the good is homesteaded, then property is gained naturally by the use of it.

If I set up a radio station that transmits continuously, without walking on another homesteader’s airwaves, then I could rent out my airtime to people who want their messages heard by listeners with appropriate radio sets. If I am broadcasting and someone else broadcasts over the top of me, then my property right is violated. An analogous situation is one in which I have rented a convention hall. If some nitwit waltzes in and starts yelling over my speech, then he is violating my rights.

If I broadcast every Wednesday from 5-6 pm, then a property right could be granted for that time slot. In this way a frequency band – geographical listening region can be shared. This method is called Time-Division Multiple Access (TDMA). Other methods of sharing a frequency band are FDMA and CDMA — look ‘em up. All methods of sharing bandwidth reduce the amount of information that each sharer can transmit (in average bits per second), therefore, it is scarce.

The consumers of EM spectrum are actually the people whose information is being transmitted. That is why advertisers pay for airtime.

At this point, I think that the whole EM as a scarce good issue should be fairly settled. It just isn’t like IP at all.

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scott t December 4, 2009 at 6:59 pm

“you diminish the value by being able to “broadcast” the same idea that I got to first….”

unless greater value if found by broadcasting over , i dunno, objectionable material in a transmission, the new same-frequency broadcast then takes on a value of its own.

air-wars in a sense where no ‘property’ per se is trespassed on.

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Brian Macker December 5, 2009 at 1:40 pm

“I was particularly impressed with the point that IP creates scarcity where none existed before.”

Absolute and utter nonsense. Let’s do this in steps.

1) Suppose a writer just created an original new book that never existed before. How does that create a scarcity where none existed before? It can’t. The odds that someone else will create the same book without his as the source are astronomical to the point of impossibility. His creation does not diminish the quantity of the book but only adds to it.

2) Next step. Suppose he decides that he wishes to publish his book with a copyright. This too only adds to the quantity of copies of his books. There is no “creation of scarcity where none existed before”.

3) Suppose you trespass against his rights by copying his book in violation of contract?

4)Suppose he wins in a court of law and you have to pay damages? That does not create a scarcity where none existed before.

5) Suppose he decides to stop publication of his book. That also does not create a scarcity where none existed before. In total his actions have created more of his books than would have existed otherwise.

No step involves a creation of scarcity (a reduction in goods) where none existed before. We were not awash in a sea of copies of Harry Potter before the author decided to make them scarce via copyright.

You cannot compare actual to potential to determine that there has been the creation of scarcity. Nor is the creation of scarcity even a crime.

You cannot compare the potential to the actual to arrive a scarcity.

Your wives, your daughters, and even your sons are all potential sex workers and could sell themselves out a prostitutes. There is a potential for a vast increase in the quantity of sexual services were they to do so. That however does not mean that they have produced an artificial scarcity, or have somehow created a scarcity where none existed, or have committed some economic crime.

If you think rivalry is the true problem (and not scarcity) well then there are non-rivalrous mechanisms to spread the sex. Your wives, daughter, and sons could reduce rivalry over their bodies by producing porno videos, or taking in in multiple holes at once.

Using this argument from imagined creation of artificial scarcity and/or artificial rivalry then how can you justify keeping peeping toms from videotaping your sexual activities for the entertainment of others? After all pointing a camera at you doesn’t keep you from using your resources to the best of your ability.

Many of our property rights are based on so called “artificial scarcity” or “artificial rivalry”. There is no reason why someone else couldn’t use your yard for sunbathing while you are at work. If this argument works then why do you think you should be allowed to keep others from using your property (or your body) in ways that do not cause rivalry and reduce scarcity?

The ludicrous hypothetical is asked of us “So imagine that some benevolent genius invents a matter-copying device that lets you just point it at some distant object, and instantly duplicate it for free for you.” Seems to me this would give me even further ammunition against your claims that we should be able to copy at will regardless of rights.

People are objects, and therefore the machine could be pointed at your wife and now her sexual services would be non-rivalrous.

The inventor of such a machine I could create only one, if he wished, and then duplicate all the women he found most attractive in such vast quantities that they would be hard pressed to find food for themselves.

He wouldn’t have to press them into sexual slavery. He only need only trade the vast quantities of resources his machine could produce for their voluntary services. Not only that but he could make many copies of himself (each with the machine) in order to indulge his fantasies even more, along with providing the manpower to create an army to protect their invention from the prying eyes of others.

I think your imagination proves more than you wish it to. Let’s stick to the real world and not Startrek fantasies. Our ethics need to be bound to our real problems. In a world with such a machine the laws of economics would no longer hold and this web site would be pointless.

REPLY

Silas Barta December 5, 2009 at 1:54 pm

C_Keith: Well, if that band is unused at the particular time and place, then it is simply the appropriation of an unused good from nature. This is the definition of homesteading. If the good is homesteaded, then property is gained naturally by the use of it. …If I set up a radio station that transmits continuously, without walking on another homesteader’s airwaves,

Sorry, but you’re still assuming your conclusion. *Why* does this count as “walking on” “another’s” airwaves to begin with? On what basis do you call it interference? Both people can broadcast at the same frequency. Both can set up a circuit that generates an oscillating electric field at 100 kHz or whatever. Both are unimpeded in their actions. Both can send those waves to their heart’s content.

The ONLY way you can say that a “resource” is being used in a way that denies another the use of it, is if you VASTLY expand what counts as a homesteadable resource. And this will inevitably cause you to draw the boundary so large to include IP.

REPLY

Peter Surda December 5, 2009 at 2:49 pm

@Silas
> *Why* does this count as “walking on” “another’s”
> airwaves to begin with? On what basis do you call
> it interference?
Either you have trouble comprehending or you are ignoring my refutations. Maybe an example will help you?

Let’s say I own a wall and someone paints a graffiti on it. Does that prevent me painting something else? It doesn’t. But the acts of consumption exclude with each other, you can’t have there both paintings concurrently. Therefore, the medium (wall) is scarce.

> The ONLY way you can say that a “resource” is
> being used in a way that denies another the use\
> of it, is if you VASTLY expand what counts as a
> homesteadable resource.
You are completely incorrect. The way to determine that is pretty simple, you observe whether the consumption prevents other consumption. Broadcasting is not consumption.

REPLY

Stephan Kinsella December 5, 2009 at 4:41 pm

Macker:

“”I was particularly impressed with the point that IP creates scarcity where none existed before.”

“Absolute and utter nonsense. Let’s do this in steps.

1) Suppose a writer just created an original new book that never existed before. How does that create a scarcity where none existed before? It can’t. The odds that someone else will create the same book without his as the source are astronomical to the point of impossibility.”

Well, first off, are you now conceding that patents are invalid? Because they quite often involve the grant of a monopoly to someone for an invention others may have invented soon after the patentee did (or even before).

Second, it is not the writing of a novel that creates scarcity, but the grant of a copyright to him. It is the state copyright grant that creates artificial scarcity. If this guy lets his out into the public domain why shouldn’t others be able to act on these facts, on their knowledge? After all, even the novelist in your example is using ideas he learned from the public domain, from previous thinkers and writers.

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Stephan Kinsella December 5, 2009 at 5:04 pm

Re the issue of the prices charged for things like apples etc.–see my post Imagining the Fate of Copyright in a Future World.

Imagine 1000 years from now, if we still have these ridiculous IP laws…. you can choose between an almost infinite supply of older, public domain work, or pay for a new one. That will force the new works’ price to be almost zero. In fact, I suspect the IP socialists would at that point come up with a new IP right–basically a renewal of copyright held by someone who “rediscovers” older work forgotten in the almost infinite pile of public domain work. Imagine living in a world where Michael Jackson’s work, or the music of hte 70s, had been forgotten, surpassed by all the music over teh ensuing centuries … then some DJ starts playing it, people redicscover it anew.. shouldn’t he get credit for this? Afer all, it takes a lot of work to loook thru all the old stuff and find “what to recommend.” Shouldn’t he be rewarded for this? After all, if he’s not, you consumers would never have heard of Michael Jackson, would not have the pleasure of knowing what (free) tracks to play at your party. What’s the harm of awarding the DJ a monopoly? After all, you would never have found that needle in an infinite haystack, so no one is worse off, and everyone is better off. Copyright can never die; it only gets reincarnated. O brave new world! That has such laws in’t!

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Silas Barta December 5, 2009 at 7:53 pm

@Peter_Surda: Broadcasting is not consumption.

Oh, so now you think EM spectrum rights are illegit? Okay then…

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Peter Surda December 6, 2009 at 3:05 am

@Silas:
> Oh, so now you think EM spectrum rights are
> illegit?
Apparently, you have trouble connecting the dots. Did it occur to you that by broadcasting you also cause other phenomena than merely the broadcast itself, and those are the cause of the property violation?

REPLY

newson December 6, 2009 at 3:49 am

silas says:
“Oh, so now you think EM spectrum rights are illegit?”

yep. as nathan points out, undesirable em could be regarded as pollution, trespass on my property, interfering with my electrical instruments etc.

the only way i can see of legitimately granting spectrum rights is that there be some sort of covenant attached to the land that the acquirer not transmit at a particular frequency from that land. much like people in a private retirement village have to agree to abide my certain rules to gain entry. so the em aspect really becomes one with the land use.

when you buy land, there is no prohibition on using audible frequency; if the neighbours’ noise starts causing you hurt (loud arguments at all hours or burst eardrums), then there are grounds for damages.

the scarceness of the audible spectrum is not the issue.

REPLY

Brian Macker December 7, 2009 at 9:03 pm

Steven Kinsella,

“Well, first off, are you now conceding that patents are invalid? “

I’m not “conceding” that they are invalid. I always have claimed them invalid. I’m with Rothbard on this. Like him I think only copyrights are valid, and you’d have to use something similar to copyright to replace patents.

The difficulty of proving your invention was copied would be a large hurdle for those who wished to use in outside the field of literature.

“Because they quite often involve the grant of a monopoly to someone for an invention others may have invented soon after the patentee did (or even before).”

Which would mean they didn’t copy the persons private property. Since Rothbard and I only support copyright no such monopoly could be granted. As Rothbard said an inventor would have to take great care to prevent forced disclosure on others.

You can’t invent the weed wacker then go around using it in plain sight. By doing so you are forcing your ideas into the brains of others. It is then not their fault if they use what you, the inventor disclosed without contract.

“If this guy lets his out into the public domain why shouldn’t others be able to act on these facts, on their knowledge?”

I was not talking about someone who just lets things out into the public domain. I’m talking about someone who takes care not to let it out and has contracts to enforce it.

“After all, even the novelist in your example is using ideas he learned from the public domain, from previous thinkers and writers.”

One can make something original from that which is in the public domain. Happens all the time.

The way we create originality is by taking the existing and rearranging it into new relationships that didn’t exist before. There is an infinite number of new relationships.

The original invention does not exist in the public domain before it is created, no more than a pile of lego blocks represents all the possible configurations that they could be arranged in.

If the instantiations of prior original works are in the public domain then anybody is free to use them. That doesn’t mean that their new original content is in the public domain. Obviously, since they could destroy it without disclosing it to the public in any way.

REPLY

Jeff March 17, 2011 at 2:42 pm

Here is Common Law fraud with my break down noted for this issue:

Common law fraud has nine elements:[4][5]
* a representation of an existing fact; The fact that a buyer set the price of purchase under the assumption it was for personal use and not for distribution.
* its materiality; The price was set lower based on this assumption.
* its falsity; The buyer instead freely distributed the product in the marketplace.
* the speaker’s knowledge of its falsity; He purchased this in order to distribute it….
* the speaker’s intent that it shall be acted upon by the plaintiff; The speaker purchased the product at said price under this agreement
* plaintiff’s ignorance of its falsity; We had an agreement and I took him at his word.
* plaintiff’s reliance on the truth of the representation; The price was set under the assumption I could charge the same price to the recipients of the illegal copies for a * period of time without the defendants competition.
* plaintiff’s right to rely upon it; It was a voluntary agreement between individuals. I have a right to be told the truth before entering into contract.
consequent damages suffered by plaintiff. Unrealized revenue. Point of contention: What percentage would have bought at initial price without the market distortion created by free copies?

Your argument boils down to this: You have a right to enter into any voluntary contract you want except you can’t grant an exclusive license to your product. That work you did thinking that stuff up and typing it in is worthless and if I can trick you into giving it to me with the understanding that I won’t copy it and then distribute it myself, you are a fool and out of luck.

I am not a fan of IP laws as they stand now, but that doesn’t mean there are not rights associated with certain unique and novel ideas…

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Rand on IP, Owning “Values”, and “Rearrangement Rights”

Note: see also Stephan Kinsella, Legal Foundations of a Free Society (Houston, Texas: Papinian Press, 2023), e.g. ch. 15, Part IV.B (“IP Rights as Negative Easements”); ch. 15, Part IV.E (“The Separate Roles of Knowledge and Means in Action); ch. 2, Appendix I, ““Concept and Definition of “Property”; ch. 14, Part III.B (“Libertarian Creationism”); ch. 15, Part IV.C (” Lockean Creationism”); ch. 23 at n. 27 et pass. See also Locke on IP; Mises, Rothbard, and Rand on Creation, Production, and “Rearranging”]

From Mises Blog; archived comments (2) below:

Rand on IP, Owning “Values”, and “Rearrangement Rights”

In Jeff Tucker’s superb article If You Believe in IP, How Do You Teach Others?, he notes Rand’s increasing focus on exalting the creator and elevating “intellectual rights” to such a height that they totally trump real rights. This is no exaggeration. As I noted in Against Intellectual Property, Rand actually, incredibly said that “patents are the heart and core of property rights.” See also my post Inventors are Like Unto …. GODS….., noting Objectivist IP attorney Murray Franck approvingly repeating this quote: “intellectual property is after all the only absolute possession in the world.”

So, yes, Objectivists focus on the creation of value, and thus in rights in value, and explicitly drop the connection between property rights and scarcity. As I note in footnote 76 of Against Intellectual Property, Objectivist David Kelley wrote:

Property rights are required because man needs to support his life by the use of his reason. The primary task in this regard is to create values that satisfy human needs, rather than relying on what we find in nature, as animals do. . . . [T]he essential basis of property rights lies in the phenomenon of creating value. . . . Scarcity becomes a relevant issue when we consider the use of things in nature, such as land, as inputs to the process of creating value. As a general rule, I would say that two conditions are required in order to appropriate things in nature and make them one’s property: (1) one must put them to some productive use, and (2) that productive use must require exclusive control over them, i.e., the right to exclude others. . . . Condition (2) holds only when the resource is scarce. But for things that one has created, such as a new product, one’s act of creation is the source of the right, regardless of scarcity. [emphasis added]

Letter on Intellectual Property Rights, IOS Journal 5, no. 2 (June 1995), pp. 12-13 (including: David Kelley, “Response to Kinsella,” IOS Journal 5, no. 2 (June 1995), p. 13; and Murray I. Franck, “Intellectual and Personality Property,” IOS Journal 5, no. 3 September 1995), p. 7.

Thus, Objectivists will talk about man creating values. For them “a value” is a thing that exists; it’s what you “create”. For the Austrian and Austro-libertarian, you don’t talk about “a value” as if it’s an existing thing that you create. I don’t make a value. For us, it’s more of a verb: we value things as ends or as means to ends. We can make something more valuable by transforming it, but we do not create new property when we do this. As discussed in Intellectual Property and Libertarianism, creation is an important means of increasing wealth. As Hoppe has observed,

One can acquire and increase wealth either through homesteading, production and contractual exchange, or by expropriating and exploiting homesteaders, producers, or contractual exchangers. There are no other ways. [Hans-Hermann Hoppe, “Banking, Nation States and International Politics: A Sociological Reconstruction of the Present Economic Order,”Download PDF Review of Austrian Economics 4 (1990): pp. 55-87, p. 60. Emphasis added.]

While production or creation may be a means of gaining “wealth,” it is not an independent source of ownership or rights. Production is not the creation of new matter; it is the transformation of things from one form to another — the transformation of things someone already owns, either the producer or someone else.

By viewing “values” as things that we create, Objectivists then think there should be property rights in values. They are things, after all, right? But this is a fundamental mistake. As I noted in Objectivist Law Prof Mossoff on Copyright; or, the Misuse of Labor, Value, and Creation Metaphors, a common mistaken belief is that one has a property right in the value, as opposed to the physical integrity of, one’s property. For elaboration, see pp. 139-141 of Hoppe’s A Theory of Socialism and Capitalism; also see my comments re same to Patents and Utilitarian Thinking. This assumption sneaks into or lies at the basis of many fallacious notions of property rights, such as the idea that there is a right to a reputation because it can have value. It ties in with the (especially Randian) notion of “creation” as the source of rights, and the confusing admixture of the “labor” idea, when we talk about using our labor to “create” things of “value” (like reputations, inventions, works of art). As Hoppe notes in The Economics and Ethics of Private Property:

According to this understanding of private property, property ownership means the exclusive control of a particular person over specific physical objects and spaces. Conversely, property rights invasion means the uninvited physical damage or diminution of things and territories owned by other persons. In contrast, a widely held view holds that the damage or diminution of the value (or price) of someone’s property also constitutes a punishable offense.As far as the (in)compatibility of both positions is concerned, it is easy to recognize that nearly every action of an individual can alter the value (price) of someone else’s property. For example, when person A enters the labor or the marriage market, this may change the value of B in these markets. And when A changes his relative valuations of beer and bread, or if A himself decides to become a brewer or baker, this changes the value of the property of other brewers and bakers. According to the view that value damage constitutes a rights violation, A would be committing a punishable offense vis-à-vis brewers or bakers. If A is guilty, then B and the brewers and bakers must have the right to defend themselves against A’s actions, and their defensive actions can only consist of physical invasions of A and his property. B must be permitted to physically prohibit A from entering the labor or marriage market; the brewers and bakers must be permitted to physically prevent A from spending his money as he sees fit. However, in this case the physical damage or diminution of the property of others cannot be viewed as a punishable offense. Since physical invasion and diminution are defensive actions, they are legitimate. Conversely, if physical damage and diminution constitute a rights violation, then B or the brewers and bakers do not have the right to defend themselves against A’s actions, for his actions – his entering of the labor and marriage market, his altered evaluation of beer and bread, or his opening of a brewery or bakery – do not affect B’s bodily integrity or the physical integrity of the property of brewers or bakers. If they physically defend themselves nonetheless, then the right to defense would lie with A. In that case, however, it can not be regarded as a punishable offense if one alters the value of other people’s property. A third possibility does not exist.

Both ideas of property rights are not only incompatible, however. The alternative view – that one could be the owner of the value or price of scarce goods – is indefensible. While a person has control over whether or not his actions will change the physical properties of another’s property, he has no control over whether or not his actions affect the value (or price) of another’s property. This is determined by other individuals and their evaluations. Consequently, it would be impossible to know in advance whether or not one’s planned actions were legitimate. The entire population would have to be interrogated to assure that one’s actions would not damage the value of someone else’s property, and one could not begin to act until a universal consensus had been reached. Mankind would die out long before this assumption could ever be fulfilled.

Moreover, the assertion that one has a property right in the value of things involves a contradiction, for in order to claim this proposition to be valid – universally agreeable – it would have to be assumed that it is permissible to act before agreement is reached. Otherwise, it would be impossible to ever propose anything However, if one is permitted to assert a proposition – and no one could deny this without running into contradictions – then this is only possible because physical property borders exist, i.e., borders which everyone can recognize and ascertain independently and in complete ignorance of others’ subjective valuations.

Rand did have insights that militated against property rights in “values”; as she once wrote:

The power to rearrange the combinations of natural elements is the only creative power man possesses. It is an enormous and glorious power—and it is the only meaning of the concept “creative.” “Creation” does not (and metaphysically cannot) mean the power to bring something into existence out of nothing. “Creation” means the power to bring into existence an arrangement (or combination or integration) of natural elements that had not existed before.

[

From this tweet: Of course, being a humorless robotic randroid who cannot admit to gradations and qualifications, she overstated even this–you don’t bring “into existence” (whatever that means) and “arrangement” that “had not existed before”–you just find a way do do things somewhat differently. And sometimes that is merely rediscovering or independently inventing what others had done before in similar circumstances: “Multiple independent discoveries and inventions have frequently occurred nearly simultaneously when the intellectual or technological groundwork was ready. Classic cases include the theory of marginal utility by Carl Menger, Léon Walras, William Stanley Jevons, and John Bates Clark in the 1870s–1880s; calculus by Isaac Newton and Gottfried Wilhelm Leibniz in the late 17th century; the transistor by Bell Labs (Bardeen, Brattain, Shockley in 1947) and independently by Mataré and Welker in 1948; the practical incandescent light bulb by Thomas Edison and Joseph Swan around 1879–1880; powered flight by the Wright brothers in 1903 (with near-contemporaries); natural selection by Charles Darwin and Alfred Russel Wallace in 1858; the telephone by Alexander Graham Bell and Elisha Gray on the same day in 1876; and the jet engine by Frank Whittle and Hans von Ohain in the late 1930s.” See Grok summary]

(See also Murray I. Franck, “Reply to Sechrest: Private Contract, Market Neutrality, and ‘The Morality of Taxation,’” J. Ayn Rand Stud. 2, no. 1 (Fall 2000): 141–59, p. 142: “Wealth is created by rearranging the elements of that portion of the universe which is at hand. This rearrangement is a consequence of an individual thinking and then projecting his ideas onto the field of the physical universe, exploiting material brought into useful existence by someone’s projection of his own thought, in the past or present. The acquisition of this material is the product of trade, i.e., of contract.”)

Rand should have realized that this means there cannot be property rights in value since this would have to mean property rights in arrangements or patterns, which would then give the owner of the arrangement rights in other people’s already-owned property. If she had kept her focus on the fact that rearranging already-existing property can indeed make that property more valuable, she would have realized that creation (rearrangement) is not an independent source of property rights: if you rearrange your own property, even if this makes it more valuable, you already owned the property that you have rearranged (made more valuable). Yet this does not give you rights in other people’s property. You can re-word the Randian view as follows: if you make your property more valuable, it gives you additional property rights—the right to prevent other people from making their own property more valuable. And this makes it all the more obviously flawed.

This is where the Misesian approach to subjectivist value makes sense: things have value to a valuer; values do not exist independently as free-floating things that can themselves be owned. And again, Rand should have recognized this; e.g., she once wrote, “Material objects as such have neither value nor disvalue; they acquire value-significance only in regard to a living being–particularly, in regard to serving or hindering man’s goals.” (For more on the compatibility between Objectivism and Austrian economics, see Mises and Rand (and Rothbard); Randian Hoppe(?), Austrian Rand(?).) So she should have realized that if rearranging owned property makes the owner or potential buyers value the object more, it does not mean there is any additional thing created for which we need to find an owner.

I think a similar mistake is made by Tibor Machan. Rand slips into thinking of values as ownable things because she thinks of values as created things, rather than thinking of it as a verb: people value things (and demonstrate this preference or valuing in action). I’m sure Machan would disagree with my way or framing his argument, but his argument, to me, seems to say that if you can have a concept for some”thing”, or a name or word for “it,” then it’s an ontological “type of thing,” and after all, if you create this thing, why shouldn’t you be “its” owner? The problem (For more on this, see New Working Paper: Machan on IP; Owning Thoughts and Labor; this comment to “Trademark and Fraud”; Libertarian Creationism; also Elaborations on Randian IP and Objectivists on IP.)

***

see “Rand on IP, Owning “Values”, and ‘Rearrangement Rights’,”

Update: I will paste below some of my comments found on some of the above links. First: Intellectual Products and the Right to Private Property:

NSK:

FYI, a previous version of this paper was discussed on the Mises blog in the comments of this thread, New Working Paper: Machan on IP (http://blog.mises.org/archives/005960.asp), and my comments in Trademark and Fraud (http://blog.mises.org/archives/007409.asp), where I wrote:

Well, let me say that in a way I agree–one source of disagreement lies in differences over whether rights come from scarcity, or from “creation” (Rand’s “man’s needs” type of argument).

I’ve tried to show that it’s a mistake to think of creation as a source of ownership of property. Often it’s said that you can find/appropriate something, create it, or buy/receive it from a previous owner. But “creation” is not really a third way of acquiring ownership. In fact, it’s neither necessary nor sufficient. Appropriation of unowned goods, and contractual acquisition of goods from previous owners, are the only ways to acquire property rights in things. I discuss this in detail in the section “Creation vs. Scarcity” et pass. of Against Intellectual Property. Also, note that if you say that we have property rights to “things we create,” you indeed open the door to a horrible pandora’s box of things that people have monopolistic rights to, which would entangle and ensnare all use of scarce resources, thus leading to the entire human race dying out. See, e.g., the examples of Galambos and Schulman, noted in my article, who advocate protection of a very broad range of mentally “created” patterns, ideas, “logos,” what have you.

Tibor Machan has alluded to this in some of his writings, where he basically wants to say that there are all kinds of “things” that “exist”–poems, trucks, etc.–and since “The tangible-intangible distinction is not a good one for what can and cannot be owned”, then we need to focus on “intentionality”–things we intentionally create or produce, whether they be “tangible” or “intangible”–indeed, intangible things like poems, computer games/programs, novels, songs, arrangements, etc. are more completely “intentional” and “created” than are tangible goods. I.e., Machan’s theory seems to be that any “ontological type of thing” that we can identify, and that was intentionally created or produced by man, is owned by man. For more on this, see: New Working Paper: Machan on IP; also see the criticism and discussion in the comments (e.g., those of Carl Johan Petrus Ridenfeldt at November 30, 2006 4:59 PM); see also Owning Thoughts and Labor and related comment thread; and the comments in The Copyright/Baseball Analogy. I think if you review the criticisms of Machan’s view here (and my discussion of “Creation v. Scarcity” in my longer paper noted above), you’ll begin to see the magnitude of problems that accompany looking at property in this way.

***

In Owning Thoughts and Labor, I wrote:

I think Machan also makes the mistake of implicitly assuming that that any “thing” you can conceptualize or name “exists” and “thus” can be owned. Such as a novel, or poem, or invention. And if these things are ownable, naturally, the person with the best connection to or claim to this thing is its creator. As Machan notes,

the status of something as private property appears to hinge on its being in significant measure an intentional object—its status as a private owned entity has to do with in what mental relation is stands with an agent. But then it would seem that so called intellectual stuff is an even better candidate for qualifying as private property than is, say, a tree or mountain. Both of the latter only come to be related to human intentions, whereas a poem or novel cannot have their essential identity without having been intended (mentally created) by human beings.

(This is somewhat reminiscent of what Rand did when she actually elevated patents over mere property rights in tangible goods, when she wrote that “patents are the heart and core of property rights.” See. p. 18 of my Against Intellectual Property article linked above.)

The problem here is it just assumes any “thing” you can identify conceptually may be owned. One problem with this is that it seems to make reality depend on the way we name or conceptually identify things. If I call or understand your output as a “novel,” then the “novel” is the unit. But just because this suffices for conceptual understanding of the world does not mean there is some “ontological” class of entities called “novels” that may be owned. In fact our concepts are use to refer to many phenomenon in or aspects of reality–truth, love, the-fact-that-I-woke up this morning, the age of the earth, my favorite drink. Are these things ownable just because they are “things” that can be conceptually identified? I don’t think so.

When you ask what things are ownable, before asking who the owner is, you realize the criteria is bound up with the purpose of property rights, which is to assign owners to avoid conflict; that is, they pertain to the types of things over which there can be conflict–that is, to rivalrous (scarce) resources. Clearly not to facts or memories or recipes or patterns or information. So you never get to the question of who owns a poem. It is simply not part of the class of ownable things. Call it a thing if you like; say it “exists”; fine by me. But it’s not an ownable thing.

If you restrict the ownership inquiry to scarce resources, you see the question of “creation” never really comes up, strictly speaking: as I have noted before, the focus on “creation” as an independent source of ownership is confusing and flawed. Actually, it is first use that is the key (as elaborated in my article How We Come To Own Ourselves). This is sufficient to allocate title to any particular scarce resource in question (the body is a special case). Creation, it turns out, is neither necessary nor sufficient: for example, if I am the first to homestead an apple, I own it even though I didn’t create the apple (yeah, you can torture language to try to say you “created” it in a sense since your creative efforts or “labor” were needed to recognize the opportunity etc., but let’s face it: you didn’t create the apple). So creation is not necessary. And if you create a statue in someone else’s granite slab, you don’t own it–so creation is insufficient. By contrast, if you create a statue in your own granite, you own the resulting statue, but not because you created it–because you already owned the granite, but merely changed its form.

Randians justify rights based on man’s “need” to be “productive” etc. I find this a very flawed and non-rigorous approach. It is what leads them to focus on creation as the touchstone of ownership; and this is why they are so eager to grant rights in IP–because yes, these things are “created” moreso than unowned scarce resources in the wild that are found and homesteaded.

Also, see my Powerpoint presentation at the Austrian Scholars Conference 2008 for some brief criticism of some Objectivist views on “creation” as the source of property rights, esp. in the context of intellecutal property (slides 91-97 in particular).

***

John Armaos:
“And what would be accomplished from the abandonment of legal protections for intellectual property rights?

“It would destroy the following industries that produce billions of dollars and millions of jobs.

“Music, movies, television, books, pharmaceuticals, etc.”

I realize this is a common belief, but I do not believe it is true. Pharmaceuticals are hampered by the FDA. If you removed these shackles, and high state taxes, the “need” for them to have a patent monopoly (also grated by the state) would be much lower, no? Why have the state grant a monopoly to make up for other penalties imposed by other state actions (taxes, FDA regulation, etc.)?

“What is the incentive to create if someone can just mooch off of your ideas?”

I thought the Randian argument was a moral, principled one, not utilitarian. Anyway, using words like “mooch” and the possessive “your” (as if it’s similar to ownership) is question-begging, is it not?

Shouldn’t the case for patent rights be principled? But who can come up with a principled argument for a 17-year patent monopoly administered by a state-run bureaucracy?

***

Tibor wrote: “As far as IP is concerned, my point may be summed up as that whenever someone creates something of value, one owns it. Even some values not created by one but constituting one (say, one’s life or liberty) belong to one so others, in order to gain from it, must obtain one’s consent. If one creates a novel, it belongs to one; same with a poem or song or game. How one will protect what one owns is a subsequent problem–just as it is with the right to one’s life or liberty. The protection of these is a problem that arises only once the right is acknowledged to exist. It is furthermore clearly an intervention in one’s life to have others obtain one’s creations, products without one’s consent, be these a home, a car, a computer, a song, a design for some device, etc. Such taking would be no less theft that any other kind of taking to which the owner hasn’t agreed.”

Tibor, Re your latter comment about “theft”–under the patent system as it exists now, there is NO requirement to show that you “took” anything from the creator of a given patented invention. Even if someone independently invents the same thing; even if they invented it FIRST, this is not a defense. Now, pro-IP libertarians who make arguments like yours, it seems to me, will have difficulty squaring such a system with their basis for IP (though Rand tried to). So I assume you would object to independent or prior inventors being restricted by someone else’s patent for the same invention, so long as the person didn’t learn about (“steal”) it from the patentee, correct?

Now I think this is thoroughly reasonable. However, such a position, in my view, would undermine the patent sytsem (which I think would be a good thing). In any event, if you claim to advocate patent-like rights in inventions, yet agree with the unjustness of lack of a prior use/independent invention defense, then I am really not sure what system you advocate. It’s not clear at all. So I am not sure what to agree, or disagree, with, or what criticisms to make. If every particular criticism I make is met with agreement by pro-IP libertarians — “Oh, of course, I’m not in favor of THAT” — then I am not sure what else to say.

As for your coment, “whenever someone creates something of value, one owns it,” this is where I disagree, because this statement is too sweeping, for several reasons. First, note that all rights are considered enforceable–which means, in terms of physical force. If I sue you to stop you from using “my” invention, what that means is if I win, I can use physical force, against your physical property–e.g., an injunction preventing you from using your own physical property in a certain way, or a damages award giving me title to some of your money. So the dispute in this case is always about who can use, or own, a particular piece of physical property.

I think saying you have rights in any “thing” you create, that has “value,” is problematic for other reasons. First, it seems to me that what “things” are in this sense depends on our labels and concepts. And it leads to things like reputation rights, which of course most Objectivists agree with (Tibor, I can’t recall your view on this). I also do not think things “have” value; rather, some things are valued. I value my wife’s love for me and my child, but does that mean I “own” this love? does anyone own it? I think some things are not ownable at all; and this question is the one skipped over by taking about owning any created thing. The question has to be asked: is the thing of the type that can be owned? IF we keep in mind the fact that any dispute alwyas boils down to tangible things, and the propriety of physical force used to defend or use a given tangible thing, it seems clear that such tangible things are what are ownable; this is what the disputes are *about*.

IF you view it like this, then you see (in my view) that arguments “I created this pattern [invention, song, poem, whatever]” are merely arguments for control of a given tangible thing. If I argue that it is legitimate for me to use force against you, to stop you from using your own trees and logs to build a log cabin on your own land, “because” I “invented” the idea of building a log cabin to live in, then I am basically arguing that I really own (or partly own) your already-owned property (land, logs, body). I am arguing that my innovation gives me a better claim to your property. And that this innovation trumps your first-use (Lockean homesteading) of these things. IN other words, all IP claims undermine the idea of homesteading unowned natural resources. It means that the person who first appropriates an unowned resource is not its real owner: he is only its temporary, limited, conditional owner: he owns it fully only until some third party thinks of some way to use his own property. I think this is perverse and non-libertarian, impractical, unworkable, confused, etc. Not surprisingly, attempting to implement such a system–by empowering a state agency, no less–leads to manifestly unjust results.

***

Dwyer:

Here is Rand’s justification for rights:

“The right to life is the source of all rights — and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave.” (“Man’s Rights”, VOS)

What’s flawed and non-rigorous about that?

Well… I am not sure what a “right to life” is, any more than a right to free speech. These it seems to me are derivative of your right to your body and things you homestead.

In your linked article on intellectual property, you say that property rights are applicable only to scarce resources, on the grounds that if resources aren’t scarce, then no conflicts can arise over their use, and that since intellectual property is not “scarce,” there should be no property rights governing its use. Does that mean that if I produce a non-scarce resource, I have no right to it and that you can rightfully deprive me of it without my consent?

This is the whole point: if it’s not scarce, no one can “deprive” you of it. As Jefferson said, it’s like someone lighting their candle from yours: you still have your flame. Likewise, if you think of a way to use your property–configure it into some design or apparatus; think of a way to use it (method)–for example, a way to modify your fuel injector to get better gas mileage, then if someone else uses the same technique on their own car, it does not deprive you of your technique.

You also say, “Ayn Rand mistakenly assumes that the first to file [instead of “first-to-invent”] has priority (and then she is at pains to defend such a system).” I think Rand would agree that ideally the first to invent should have priority. The problem is, how do you establish this priority legally?

Why do you assume Rand would agree with this? She never says this, and explicitly defends the first to file idea. Second, how would it be done? Like it’s done here. There is a system in place, called “interference,” to figure this out. Of course, it’s based on an arcane and arbitrary set of state-invented rules about “conception,” “due diligence,” and “reduction to practice,” but there are ways to do it. Rand was simply ignorant of it and in fact apparnetly did not even realize the US *has* a first to invent system alreayd.

“You do so through a filing process.”

Well, any patent system is a filing system, I suppose–but it can be either based on first to invent, or first to file. Moreoever, some here seem to think that the essence of patent infringement, is “stealing”–which means presumably copying and using someone else’s idea without their permission. Now a similar requirement is the case in copyright law–independent creation *is* a defense, there–but it’s not in patent law. So it seems that most pro-IP libertarians really favor some “copyright” based system even for protecting inventions–that is, patent would collapse into copyright (Rotbhard has a similar argument). But copyright is NOT a “filing” system. You get a copyright *automatically* in created works of authorship the moment they are “fixed” in a tangible medium of expression.

I really think most libertarian advocates of IP have no idea of the way the real system works, and of the bizarre system they are defending.

***

Arthur:

“You seem to have a notion that there is no such a thing as the fruits of one’s mental, physical or financial effort, and that they are not entitled to trade the fruits of that effort for a value.”

I believe you have a right to own (control) your body, and any ownable resources that you homestead from the state of nature or acquire from a previous owner. You can do whatever you want with your body or property, except invade the borders of others’ property–that is to say, except use others’ property without their consent.

With these rights, you can of course engage in trade with others to obtain things you want. You can “sell” your labor, which really means, entering into a contract with an “employer” who agrees to transfer title to some of their money, IF you perform certain services. Your ownership of your body is sufficient to allow you to do this. Just as your ownership of your property is sufficient to allow you to have “free speech” or “freedom of press” rights.

“Of course there is value created from taking granite and altering it into a statue. If you bought that statue, are you just paying for the value of a hunk of unsculpted granite?”

Technically, you don’t pay for value. You pay for certain rights to be transferred to you–namely,t he rights to control a particular hunk of matter. The *reason* you pay for it is you value the statue.

But so waht if you “create value” by altering granite into a statue? Either you own the granite that you are altering, or you do not. If you do, then you already owned the matter that you re-shape into something that “has more value.” If you don’t own the granite–say, it’s someone else’s; you are working under contract, or you stole the granite–then creating a statue does NOT give you ownership of it. Again: creation is neither necessary nor sufficient.

“Why do you think a sculpted piece of granite has a higher price than a hunk of unsculpted granite? Physical and mental effort was exerted in producing that finished product of a sculpted granite statue,”

Sure. There’s a reason people expend labor to transform their property. So what?

“something that the sculpter is entitled to the fruits of that mental and physical exertion”

I don’t know what this means. What “entitlement” is this exactly, other than the right to sell things you’ve transformed and improved?

***

Steve: “Answer: taxes and regulations are irrelevant to this discussion (unless you want to admit into the fellowship of the immoral and perverted). I’m not a patent attorney, however it appears to me that an individual or group of individuals file for a patent or copyright for the protection of their creation. The state is not granting them a monopoly. The state is recognizing their right to first use and benefit. If the state were blind to the rights of creators then there would be no use in creating. And certainly no use for a state.”

I agree with your last sentence.

The state is of course blind to true individual rights, is it not? It is an enemy of rights. Who can deny this?

***

Ed Thompson: “Unowned scarce resources in the wild aren’t homesteaded by being “found.” If that were true, then American Indians (Native Americans) would own America outright. In order to homestead something, from the Objectivist point of view, you have got to mix your labor with it for a productive purpose. The purpose needn’t be utilitarian (whatever is “supposed” to be good for many if not most folks), but it does need to be productive. Just like man needs to be productive — a natural need that won’t ever go away.”

I don’t disagree. Lockean homesteading doesn’t say you just “find” something. You have to emborder it, transform it, publicly mark it as “yours”. Sure. Who said otherwise? I argue this too in How We Come To Own Ourselves; Defending Argumentation Ethics.

“Stephan, could you produce a logical syllogism justifying man’s rights?”

I’ve done my best in the articles cited, and others they link to. In my view, rights are justified by showing that the denial of rights is incompatible with the pro-peace, pro-civilization norms necessarily presupposed by any participants in discourse about this issue. This technique is similar to the way Rand argued (proving some “axioms” by showing that its denial is self-contradictory); and also her recognition that all rights are “hypothetical” since they depend on one choosing to live, which choice is itself pre-moral or a-moral. Likewise, if one does not choose to be civilized, no discussion is possible with him; Peikoff made a similar point in OPAR about how you discourse with someone determined to be irrational: you don’t. In like manner, we simply have to regard uncivilized, irrational, criminal people as outlaws, as not really human. And deal with them as a technical problem. We who care about justification realize we are justified in treating them this way b/c of the logic of the entire ethical enterprise.

***

Dennis Hardin:

“The problem here is it just assumes any “thing” you can identify conceptually may be owned. One problem with this is that it seems to make reality depend on the way we name or conceptually identify things. If I call or understand your output as a “novel,” then the “novel” is the unit. But just because this suffices for conceptual understanding of the world does not mean there is some “ontological” class of entities called “novels” that may be owned. In fact our concepts are use to refer to many phenomenon in or aspects of reality–truth, love, the-fact-that-I-woke up this morning, the age of the earth, my favorite drink. Are these things ownable just because they are “things” that can be conceptually identified? I don’t think so.”

Rand is very clear about the fact that an idea or concept as such cannot be legally protected until it has been given a specific physical form. It is this specific form which endows it with value because that had to be created, and property rights apply only to that material form—e.g. books, magazine articles, audiotapes, etc. This material form cannot be reproduced without permission and/or compensation.

I find this reasoning flawed for several reasons. First, as I’ve noted to others here, it assumes that patent is like copyright–that it goes to “copying” (reproducing) others’ inventions. It does not. That is not the patent systme. It has nothing to do with knowledge, access, learning, copying: the patent right is basically absolute. Independent invention, hell, even PRIOR invention, is NOT a defense! If you reject this part of the patent system, you basically reject the patent system, just as I do, since, as any mainstream patent advocate will tell you, the system would be utterly useless and collapse, if these were defenses. So you seem basically to be thinking of some copyright-based system (a system designed to protect original works of authorship, NOT practical inventions) would extend to inventions too. I have no idea what such a system would look like, and I don’t think any of its implicit advocates do either; i.e., they don’t know what they are talking about, quite literally; they are not clear on what they are advocating. They object to critics of IP; yet they agree with most or many of our concrete criticisms of IP. They do not seem clear on what they are in favor of, yet seem determined to be in favor of it anyway. IF any libertarian wants to set forth an actual vision of the IP system he is in favor of, it can be discussed.

“When you ask what things are ownable, before asking who the owner is, you realize the criteria is bound up with the purpose of property rights, which is to assign owners to avoid conflict; that is, they pertain to the types of things over which there can be conflict–that is, to rivalrous (scarce) resources. Clearly not to facts or memories or recipes or patterns or information. So you never get to the question of who owns a poem. It is simply not part of the class of ownable things. Call it a thing if you like; say it “exists”; fine by me. But it’s not an ownable thing.”

This is a typically libertarian approach to rights, implying that the only issues involved are purely practical and dropping the context of the moral basis of rights. In Objectivism, rights are conditions of existence required by man’s nature for his proper survival. Man survives through the use of his mind, and property rights amount to a legal codification of the connection between mental effort and material values. They assure that the material products of a man’s mental efforts will be his to dispose of as he see fits—to serve his life and needs. It is a kind of contract which the creator of a novel or article or poem or invention—all of which are very much “ownable”–makes with anyone who might use it to agree to compensate him for his efforts.

A kind of contract? If I think of a way to use my property, when did I enter into any contract with others, that lets me sue them if they use their property in a similar way–esp. if they independently think of this way too??

As for dropping the moral context: I want to remind you of Rand’s comment from Galt’s speech: “Whatever may be open to disagreement, there is one act of evil that may not, the act that no man may commit against others and no man may sanction or forgive. So long as men desire to live together, no man may initiate–do you hear me? No man may start–the use of physical force against others.”

Note how this presupposes the simplicity of, the self-evidence of, what aggression is, and why it’s wrong. This is what any civilized person does. This is what it means to be civilized. We are all civilized, who discuss these matters; we all take for granted the basic civilized norms.

Man must create the values his life requires, but it would be absurd to say that he can only own those things which are entirely of his own creation. The monetary compensation he receives for his material creations can then be used in exchange for goods created or produced by other men (e.g., food products which must be grown, farmed or manufactured).

I find the idea that we “create values” to be confused. We don’t create values. Valuing is a relationship–you value something, and you demonstrate this in action, as Mises noted (and as Rand recognized in her idea that value is something you ACT to gain and/or keep). We don’t create values; we create things, we create wealth; we transform things into more “valuable” (i.e,. more valued) things. Sure.

Your approach is purely utilitarian: rights are to be assigned in a way that best reduces conflict. The objective requirements of human life have nothing to do with it.

I don’t thinks is correct. Note Rand’s inquiry is based on the implicit ethical assumptions or presuppositions of those who have chosen to live. Likewise, my argument is based on the implicit ethical presuppositions of those who have chosen to be civilized–including in particular those who debate or inquire into these issues; those who engage in argumentative justification of norms in the first place. We are all libertarians in the political sense here–we share certain views in common. What are these views? I think we all share the idea that peace and cooperation, civilization, are *good*. We choose to be civilized, just as we choose to live. Why do we make this choice? Who can say. But the choice has some implications. Those of us with a decent grasp of economics realize 98% of libertarian political views, simply by applying basic econoomics, and some logical consistency, to our presupposed basic norms of peace and cooperation. We see that most of our fellow men go astray not b/c they want to be wicked, but b/c they are confused–their advocacy of government intervention and aggression is *inconsistent with* their stated pro-civilized norms, right? don’t we all here agree that our fellow men are mostly confused and inconsistent? So we try to point this out to them. We say, look, if you are really in favor of prosperity and peace, you can’t favor taxes or anti-discrimination laws, since these undermine peace and prosperity. Thati s all I”m doing; it’s what we all do.

NOte you do not make the same arguments to an aggressor–someone trying to club me over the head, say, or rape me: you shoot them, if you can.

“Unless we define rights from the objective moral perspective of the requirements of individual surivival, the all-powerful state will continue to grow and thrive, and libertarianism will have helped pave the way to tyranny.”

I’ll say thi: most Objectivists favor the state, at least a minimal state. Yet there is no minimal state in the world; and there never has been one. The ones that have been even close (and I would disagree taht the US ever was really close) all devolve into worse states, and tyranny of one type or another. So why Objectivists think a limited government is even *possible* is beyond me. In my view, it is advocacy of the state at all that helps pave the way for tyranny. Tyrants can’t get away with it but for consent of the populace. I don’t grant them my consent. Some Objectivists do, even if unwittingly.

***

Steve:

Stephan: ‘The state is of course blind to true individual rights, is it not? It is an enemy of rights. Who can deny this?’

I’ll deny it.

Now you sound like a libertarian.

Thanks.

The state is not necessarily the enemy of individual rights. Government, as far as I can tell, is a just an enforcer of rules. Because of mans need for social interaction, or mans desire to interact, there much be some objective and separate agent to provide protection.

Hatred and distrust of a government is fine. Hatred and distrust of government is irrational, in my opinion.

Well, hold on. Humor me. First, let’s say not all states are necessarily bad. Isn’t it enough that EVERY state in the world today is terrible? Do you disagree that this is the case? Do you agree that the US federal government, to take one state, is in the year 2008 an enemy of rights, or not? I think it is manifestly obvious that it is.

And let me ask you this. Would you agree there has never been a truly minimal/limited state, and certain never one that lasted, that didn’t devolve into a rights-violating, criminal organization? And if you do agree, then how can you say it’s irrational to distrust all states? Even if it is based on some flawed reason, is it really irrational? After all, it’s easy to make a prima facie case out–all states are tyrannical; they have always been; all experience indicates that this is the case. Why is it “irrational” to conclude from this that all states will always be corrupt and unjust? Isn’t a bit of an unfair overstatement to say this view is necessarily irrational?

***

[Robert: “Name ONE government that one can love and trust – NOT in theory, but in practice…”]

Teresa: “I’m sure there are lots of local governments who’ve earned that response, Robert.”

Such as…..?

And even if you find a local town, say, that somehow merits this response, this example is limited to a very small population, and also probably exceptional b/c many other functions of government are provided by higher levels–so that the local gov’t that “merits” respect, is not a complete state. The challenge is to find ANY (full, complete) state that deserves this respect and love.

***

Ted Keer:

“During the middle ages, if your neighbor invented a better plow, you could look over the hedge at him tilling his field and copy his design. There was nothing that he could do to prevent this except to try to plow only at night or simply not to use his invention. The idea of offering patents came about when political thinkers saw that a limited form of monopoly granted for a limited period and backed up by political force would benefit all parties. If you knew that by inventing a better plow you could apply to the king for a patent and get a fee from those who wanted to license your idea you could invest the time in plow-research confident in the notion that your hard work would be rewarded.

In the state of nature, the idea of patents is unthinkable. One either hides one’s secrets (like the formula for Coca Cola) or shares one’s recipes or simply doesn’t innovate. But if a state apparatus already exists, and the state can offer you a limited monopoly for a fee (you get royalties, the state gets taxes, the public gets the benefit of your invention, and free use of your idea after some period has elapsed) then all benefit and none is harmed.”

Well, this is the theory, but there is no proof to back it up. Even if you swallow the problematic utilitarian rationale of this idea (it is utilitarian: clearly, it’s not the case that *no one* is harmed–some people are harmed, badly; RIM had to pay $600M recently after extortion from NTP; so the argument is that on net, we are all better off), most studies conclude the patent system is a net drain on the economy, or are inconclusive. I’ve estimated that the system costs at least $31 billion a year in net losses.

Pro-IP people who deny this ought to tell us exactly what are teh costs, and benefits, of the system, so we can figure out the alleged net gain. They never do–they do not know. Yet they act as if they do. I find this to be dishonest.

***

Steve:

I agree that every state currently in existence is shameful. I’ll admit that the US government is disgraceful, but this was not always so.

It’s more than “shameful” or disgraceful–it’s criminal. Do I sense a reluctance here to call a spade a spade. From an Objectivist? Say it ain’t so! 🙂

Thinking that the state must become corrupt and unjust is irrational. Since some institution is necessary for the protection of rights, it does not follow that this institution must become unjust. If you disagree and think that it is unessential to have a government at all you had better put that in a new thread.

I disagree. The state by definition is corrupt and unjust, since by its nature it either taxes, or outlaws competition. Either of these actions is corrupt/unjust. I don’t see that “an entity that taxes or outlaws competition” is the institution necessary to protect rights. In fact, by its nature, it infringes rights.

Capitalism requires a government because it requires freedom. There can be no freedom if one man my steal another mans creation. There is only one rational way to deal with this issue, as I see it. There must be an agent who can respond to force. That agent is the state.

Do you think the case for IP depends on there being a state?

Your arguments are great for a libertarian. Unfortunately for libertarians, that makes them great arguments for anarchists.

Of course, I am an anarchist, since I oppose aggression, and since the state is necessarily aggressive.

But this is not the issue. The issue is whether is it rational to hate government of all forms. If someone wants to use what he has created, he had better choose a government that will protect his right to do so.

I don’t know waht you mean by “government.” The question is whether *the state* is justified.

***

Dwyer:

“This is the whole point: if it’s not scarce, no one can “deprive” you of it. As Jefferson said, it’s like someone lighting their candle from yours: you still have your flame.”

Suppose I don’t want them to light their candle from mine. If it’s my flame, why can’t I deny them access to it?

Sure! But if you don’t, then the information gets out. As Tucker said, “You want your invention to yourself? Then keep it to yourself.”

I wrote, “You also say, ‘Ayn Rand mistakenly assumes that the first to file [instead of “first-to-invent”] has priority (and then she is at pains to defend such a system).’ I think Rand would agree that ideally the first to invent should have priority. The problem is, how do you establish this priority legally?”

“Why do you assuem Rand would agree with this? She never says this, and explicitly defends the first to file idea.”

She defends it, but not in opposition to the idea of “first-to-invent.” She sees the filing process only as a way of making public one’s invention so as to ensure a mechanism for its legal protection. If there were a better way to do this, I don’t think she’d object to it.

I am not sure you understand how the patent system works. The US system has a filing process. It happens to be based on first to invent, rather than first to file. So I am not sure what you are talking about.

“Second, how would it be done? Like it’s done here. There is a system in place, called “interference,” to figure this out. Of course, it’s based on an arcane and arbitrary set of state-invented rules about “conception,” “due diligence,” and “reduction to practice,” but there are ways to do it. Rand was simply ignorant of it and in fact apparnetly did not even realize the US *has* a first to invent system already.”

Okay, but that lends further credence to the idea that if she were aware of it, she would not have had any strong objection to it.

This makes no sense to me. The US system at the time was based on first-to-invent. Rand assumed it was first to file and she wrote a defense of it. She was doubly wrong. I don’t understand how this logic redeems her.

Well, any patent system is a filing system, I suppose–but it can be either based on first to invent, or first to file. Moreoever, some here seem to think that the essence of patent infringement, is “stealing”–which means presumably copying and using someone else’s idea without their permission. Now a similar requirement is the case in copyright law–independent creation *is* a defense, there–but it’s not in patent law. So it seems that most pro-IP libertarians really favor some “copyright” based system even for protecting inventions–that is, patent would collapse into copyright (Rotbhard has a similar argument). But copyright is NOT a “filing” system. You get a copyright *automatically* in created works of authorship the moment they are “fixed” in a tangible medium of expression.

Okay, but there has to be some way of making one’s invention or creation public knowledge, and for that you need a legal system with certain rules that must be adhered to. I think you are quibbling over non-essentials.

Fine, but I find such comments to be maddeningly frustrating. I have no idea what you guys are *for*. You tend to agree with me on my concrete critiques. But what are the specifics of the system you are for? I don’t know.

I really think most libertarian advocates of IP have no idea of the way the real system works, and of the bizarre system they are defending.

Perhaps, but this has little if any bearing on the issue of intellectual property rights.

It seems to me if you are advocating a state-implemented system of rights, it’s incumbent on you to advocate what the hell you are talking about. This is similar, in my view, to the Objectivist critique of theism–theists are notoriously irrational in debate. They often say they believe in “God,” but if you ask them what “God” is, they crawfish and say that no one can know, his nature is not definite, they are not sure, it’s this and that contradictory thing, etc. I think IP advocates are actually similar to theists.

***

John:

Stephan I don’t understand this view of rights. If someone can’t deprive you of something, it doesn’t mean you still don’t have a right to it.

Why do you need a right to something you can’t be deprived of? Anyway, I was responding to an argument that said that it’s wrong to deprive people of something. I countered that if you do the same thing with your property that someone else is doing with theirs, this doesn’t deprive them of anything. IF you think “deprivation” is not essential to a rights violation claim, then don’t make this argument.

And I would disagree that someone doesn’t have the ability to deprive you of an abundant resource.

“Scarcity” here is economic scarcity–non-rivalrousness. Not mere lack of abundance.

That you repudiate then intellectual property rights because they are not scarce resources as your basis of what should determine is a right to property doesn’t make much sense to me either.

I repudiate them for this reason. To enforce a legal right *always* means to do something to or with someone else’s *tangible property*. Thus, to grant rights in IP or any non-scarce resource, *necessarily means* granting or transferring rights in tangible things. I think the Lockean homesteading rule is sufficient; IP brings in a second rule that trumps it. All criminal or socialist ethics are incompatible with the Lockean homesteading rule, just as the property rule implicit in IP is.

Only Rand wrote Atlas Shrugged. In that sense I would regard that to be a very scarce resource.

Copyright covers not only the right to literally reproduce, but non-literal reproduction, and various “derivative rights.” So by some accounts we could not even have this discussion. Or, you would be prevented from writing “John Armaos’s Prometheus Blinked: A Sequel to Ayn Rand’s Atlas Shrugged”–that is, if you wanted to write your own novel, with your imaginary rendering of what the characters might do next–you are physically prevented from doing so. Do you not see this as manifestly and obviously absurd and unjust?

Then you would be paying for a value! Right? Trading money, something the sculpter values, in exchange for the sculpted statue, something you value.

Some thing that I value is not “a value.” It’s a thing I value.

Yes, and that addition of more value is because the sculpter spent his mental and physical labor giving it more value, which is what he owns. He owned that physical and mental labor.

No, no one “owns” labor. Labor is just an action–something you do with your body. You own your body–that’s enough.

But creation requires labor, both physical and mental, and as you seem to agree, you don’t get to steal that either, correct?

Creation requires innumerable things–it requires that we have time, that there not be a storm, etc. Do we own every necessary condition of creating things?

Unless slavery is ok with you?

Some slavery is of course justified–jailing or punishing criminals, for example. But innocent people have a right to their own bodies. That rules out slavery. You don’t need to then talk about owning labor, any more than owning memory or emotions or ideas.

If it’s your labor, physical and mental, you get to dictate the terms on how you want to trade that physical and mental effort.

Sure–because you own your body an can choose what to do with it. But you don’t own your labor. This is a mystical, metaphorical confusion.

So when Rand wrote Atlas Shrugged, she owns the fruit of that physical and mental effort, namely a “novel”

Your “so” doesn’t follow. Question begging.

and can dictate the terms of that transaction, including not being able to reproduce her novels without her consent or compensation to her.

This is yet another confusion: you are attempting to say that copyright and patent could be based on private contractual arrangements. They cannot, since private contracts don’t affect third parties; but IP necessarily does.

What do you mean so what? So you have a right to your labor, whether that be physical or mental, and you have the right to trade that how you wish to. You seem to suggest by denying we have a right to intellectual property means I don’t have a right to dictate how I can offer my intellectual efforts?

Not so; you own your body, and your property; you can do whatever you want with them.

I.e. my mental effort, or in the case of the contractor his expertise. That has a value, that is intellectual property,

More question begging.

***

John:

I agree but you still have the right to sell your idea of how you changed your property to someone else. For example I could invent a product, and sell you the design. You don’t have a right to steal that design, i.e. take it without my consent. Because that design was mine.

Well, a contract between A and B is fine. But IP requires that third parties–C–be bound. Suppose A has a design for a house, and “sells” it to B. Now somehow someone leaks the design, or it gets independently invented, or widely known, whatever. Everyone knows about the design now, just as people knw of FallingWater’s design, or the general plot and characters of Star Wars, even if they have never seen the movie. How is C bound by the contract or sale between A and B?

I don’t think I ever recall economic scarcity defined this way. I believe economic scarcity means the supply of a product or resource cannot meet the demand.

Just look up non-rivalrousness, and you’ll see what I mean.

So basically you are saying no one should be able to sell their ideas, or expertise? I can’t sell you the design for my invention? I can’t sell you my novel?

Technically, no; practically, it depends. Let’s take the classic employment contract as an example. I don’t think you “own” your labor, so you don’t technically “sell” it. What happens is a laborer or employee and employer agree that the employer will pay $X for certain services, if the employee performs them. This is really a unilateral agreement: Employer simply agrees to pay, IF employee does certain things. This does not require the awkward presumption that one “owns” one’s labor. It’s just that being in control of one’s body allows one to profit off of using it.

I’m sorry I’m not arguing with currently how copyright laws work, we are or at least I thought we were engaging in a discussion of whether there is such a thing as intellectual property rights. I thought your position also includes that I don’t have the right to copyright my literary piece even from a literal reproduction without my consent?

If you are not endorsing current copyright law, then I am not sure exactly what “intellectual property rights” you are in favor of. This is typical of libertarian advocates of IP: they deny they favor current IP law, but are devoid of specifics of what they do favor. Again, it’s reminiscent of the tactics used by theists when cornered.

Again you’re just quibbling over a non-essential. With the premise that one own’s his own body, the logical extension of that is you own what your body can do. When an employer hires an employee, the employee doesn’t just trade his body for a specific period of time. He isn’t just some motionless robot sitting in the corner doing nothing, like “Ok you have my body, do what you want with it for 8 hours”. The employee moves his body and uses his mind, thus producing something fruitful, i.e. something of value (please, don’t quip back you can’t value a value, when I mean something of value I mean something that someone values, ok?).

I think the title-transfer theory of Evers-Rothbard is basically correct. A contract is a way to transfer title to things that are owned (ownable). The employment agreement is what I specified above: it’s usually simply a one-way, unilateral, conditional transfer of the employer’s property to the employee. It’s triggered by, conditioned on, the employee’s doing certain tasks. I don’t see that this is all that complex nor does it imply “ownerhsip” or one’s “labor.” I find this talk to be very slippery, non-rigorous, metaphorical–the kind of talk that would be engaged in by liberal arts majors 🙂

“That is his labor, and he owns that labor can trade it for something in return.” I guess you can look at it this way, if you must, if you are unable to comprehend what a conditional, unilateral title transfer is. Whatever helps you.

Well we own what our bodies can do, so that of course means we own our own time, and our own labor.

This is a great example of the absurdity that results from overreliance on metaphor. You think we “own” our own “time”…? What the heck does this mean??

“You can own your own mind and body and what it can do. And what it can do can be traded obviously as I said before.”

I can trade… what my mind can “do”, because I “own” it? … this is so confused.

Of course you own your own labor and this is not some mystical or metaphorical confusion.

Really? Can you leave it to someone in your will?

Let me guess: you think we own our actions too. Do we own our intentions? Our love? Our memories?

“So when Rand wrote Atlas Shrugged, she owns the fruit of that physical and mental effort, namely a “novel””

your “so” doesn’t follow. Question begging.

Please explain.

It’s question-begging to assume that she owns the fruit of her labors. That’s the question here.

“and can dictate the terms of that transaction, including not being able to reproduce her novels without her consent or compensation to her.”

this is yhet another confusion: you are attempting to say that copyright and patent could be based on private contractual arrangements. They cannot, since private contracts don’t affect third parties; but IP necessarily does.

This is a non-sequiter. A private contract between two parties also doesn’t mean a third party can steal the product. If I sell you a car, that doesn’t mean Bill gets to steal that car from you because he wasn’t a party to that contract.

That’s because the car is an ownable, an owned, thing. The question is whether IP is.

I don’t need a contract with all third parties stating they can’t take my property without my consent. So likewise if I sell you a novel and retain a copyright to that novel, I’m saying that I am only selling you the book itself with the words printed in it, I’m not selling you the right to reproduce those words.

This is essentially Rothbard’s argument. The thing is, a car is owned. If a third party uses it without the owner’s consent, he’s a trespasser, even if he’s an innocent one.

But suppose I think of a way to use my own property in a more efficient way. How is this even possibly a trespass on the “idea” of some other guy who registered his similar idea with a state agency? Or suppose I am shopping at Wal-Mart and see a new fishing rod with a cool mechanism. I can’t afford it but I am handy, so I modify my own fishing rod in a similar way. How am I trespassing? HOw does an agreement between the inventor, and some second party, implicate me?

Suppose waht I see inspires me and I think of an improvement. Who owns that?

Etc.

***

Bill Dwyer: “Your posts are confusing, because you’re not clearly separating your own comments from those you’re responding to. The casual reader would have no idea who is saying what. I happen to know, only because I wrote the comments you’re addressing.”

Sorry… I was trying to keep the length down.

“Secondly, you seem so intent on attacking Rand that you won’t for a second entertain any reasonable explanation on what her position might have been. Look, Rand didn’t, and Objectivists haven’t, to my knowledge, given this issue any kind of in depth analysis or treatment. The best one can say is that Rand favored legal protection of patents and copyrights, period! She didn’t address the distinction between “first-to-file” and “first-to-invent.” She may not even have been aware of it.”

But she said, “patents are the heart and core of property rights”! She clearly favored IP rights, strongly; and also reputation rights, which is a similar type of argument. To claim so strongly that patent rights are so important, and to be so adamant about it–then one has an obligation to know what one is talking about and have a clear argument. My point is her argument is confused, and her confusion and ignorance of the filing/invention priority issue is illustrative of this.

Look: when I devoured Rand’s stuff in HS and college, I initially accepted her comments on patents and copyrights. But something about it always bugged me as too utilitarian, too incomplete, lacking. After law school, as I began to practice patent law, my gnawing doubts about her argument resurfaced and I began thinking harder about it. I became convinced Rand’s argument for IP was flawed, so I tried to find a better argument for IP. After a while I realized I was striking out, simply because IP is NOT justified. This realization hit me like a ton of bricks, but once I accepted this as a possible conclusion, the arguments all came together.

“In any case, this is an issue for the philosophy of law. As far as I know, Objectivism has no stated position on it.”

Objectivists are almost universally strongly in favor of IP. If they don’t understand what they are really advocating, maybe they ought to be a little less strident about it. (Or am I missing your point?)

“Secondly, you seem so intent on attacking Rand that you won’t for a second entertain any reasonable explanation on what her position might have been.”

I am not intent on attacking Rand. As I noted above, I tried for a long time to square her IP views, but they just don’t work. I also came to be more skeptical of her whole approach to rights, partly b/c of this, but that’s another story. Anyway–I am not sure what you mean here: why do we need an explanation for what her position might have been? She is explicit about her position: she thinks first-to-file is justified, and defends it. She just didn’t realize what she was favoring was the patent system in place in most countries other than the US. I think her position is that the first to file should win. She says this. Why do you doubt her?

***

John:

Stephan:

Well, a contract between A and B is fine. But IP requires that third parties–C–be bound.

Stephan, as I already said before, third parties are always bound to NOT STEAL YOUR PROPERTY. You don’t need a contract with a third party stating that they can’t steal your property.

I agree, but the question is whether there IS intellectual property. If there is not, there is no stealing.

So for example, suppose I’m generally aware of the plot for Star Wars, but have never even seen it. Suppose I write “Stephan Kinsella’s Further Adventures of Luke Skywalker”. What am I “stealing”? Or suppose I am generally aware of how lasers work, and decide to make my own. Of course, I learned about this b/c of the efforts of the original inventors. What am I “stealing” if I make a laser?

You are always legally bound to not steal, regardless of whether there is a contract or not.

which is why you shouldn’t bring up the contract between A and B; it’s irrelevant to C.

You wrote:

I don’t think you “own” your labor, so you don’t technically “sell” it.

And bizarrely, you then try to make some distinction but end up saying almost the exact same thing as selling one’s labor:

What happens is a laborer or employee and employer agree that the employer will pay $X for certain services, if the employee performs them.

Yes Stephan, SERVICES, what do you think SERVICES means? That means selling your LABOR. That means exactly the same as selling your labor and the employer buying that labor. Please explain what the distinction you’re trying to make here?

I didn’t mean to distinguish between labor and service. They are the same for purposes of this point. My point was it’s imprecise to say you are “selling” your labor (or services). The reason we say this is shorthand, b/c it’s similar to the structure of a normal bilateral exchange, where A and B trade items they own, exchange them. One pays for the other.To have an exchange you have to have owned things–title for one is transferred to the other party, “in ecxchange for” and conditioned on the other party doing the same.

In a service contract, there is only one title transfer: the “buyer”‘s money transfers to the laborer. The title is trasnferred conditionally: upon the laborer’s performing some action. By performing the action, by fulfilling a condition, the actor does not necessarily transfer title to anyhthing to the buyer; he just does something the buyer wants. Take another example: suppose I agree to pay you $100 *if it rains tomorrow*. The raining is just a trigger or condition. If it does rain, then title to the $100 trasnfers. But that does not mean “title” to the “raining” transferred to you, or that anyone owned “the raining.” Likewise, in a service contract, the service is just the trigger for the payment. It’s a one-way title transfer. The point is to show that despite common description of this as a “sale” of labor, which seems to imply labor is owned, this assumption is not necessary, nor is it coherent. We do not own our actions. We own property–our bodies. Owning one’s body is sufficent to allow one to act with the body however one likes. Just as having property rights is sufficient to allow me to print books or speak on my property.

Dictionary.com

Labor: 1. productive activity, esp. for the sake of economic gain.

yes, yes, I agree w/ this.

If you are not endorsing current copyright law, then I am not sure exactly what “intellectual property rights” you are in favor of. This is typical of libertarian advocates of IP: they deny they favor current IP law, but are devoid of specifics of what they do favor. Again, it’s reminiscent of the tactics used by theists when cornered.

Your accusation is unwarranted Stephan. You don’t need to understand what the current laws are in order to have a definition of rights. Do you think without laws there would be no way to meaningfully define rights? Can’t we define free speech in the absence of a legal code? It seems you think we derive our rights from the law? Is that your position?

Intellectual property rights are the creations of the mind for the use of economic gain, such as music, literature, artistic works, inventions, logos, designs used in commerce, etc.

Now, how the legal code is set-up to interpret what is a theft of that creation, for example whether it only be restricted to literal reproductions or more broad an interpretation is not integral to the philosophical discussion of whether intellectual property rights is a legitimate concept or not. You think there is no such thing as IP, I think there is. You point out a PARTICULAR OBSERVATION about the CURRENT legal code, that being even vague interpretations of a literary piece as being a violation of copyright. But your issue is not just vague interpretive reproductions, your issue is that you think someone should be able to reproduce a literary work in any which way and that the author has no right to copyright his work against ANY KIND OF REPRODUCTION.

I don’t think it’s unfair; I see this all the time. I think those who have an inkling of how the patent and copyright system really work would realize there are hundreds of questions and doctirnes that have arisen out of necessity to refine IP law–so any IP system will have to answer these questions: scope; duration; exceptions; jusfication; damages or remedies for infringement; geographic scope; etc. I think the advocates of IP mostly have no clue as to what kind of system they are really in favor of; they just think “the lawyers can figure it out; it’s just a detail.” It’s NOT just a detail. Every injustice I point to, you guys agree with me. So I say, well that would render IP meaningless.. so waht are you in favor of. You don’t know. I don’t know how to respond to this. Why are discoveries exempt? What about fair use? Why is the term finite? Why is it 17 years and life-plus-70 years? Is the DMCA justified? Injunctions in patent cases? Should the loser pay? Etc etc.

If you say you are just making a general statement about rights, as Tibor did, “anything you create that has value is property,” then I can point to — as I have — many obviously unjust implications of such a broad or general statement. So it obviously has to be refined before we can talk about what exactly you are proposing. As far as I can tell you guys are in favor of “some” kind of “IP” protection–not exactly like we have no, of course; and not with the dozens of types of injustices I can point out in the current system; exactly what, you are not sure, after all, you’re not a “legal expert”. were I still an Objectivist I might use Rand’s phrase “blank out” here. 🙂

I don’t see that this is all that complex nor does it imply “ownerhsip” or one’s “labor.” I find this talk to be very slippery, non-rigorous, metaphorical–the kind of talk that would be engaged in by liberal arts majors 🙂

I don’t need the thinly disguised insults with a smiley face Stphan. So thanks but no thanks, I’ll choose to ignore these idiotic comments.

Well, no one ever accused Objectivists of not having a sense of humor. (Or have they? 🙂 Look, I was only kidding–it’s my analytical engineering background that has me poking fun at liberal arts types. Engineers are just as bad as liberal arts majors, when it comes to philosophy.

“You can own your own mind and body and what it can do. And what it can do can be traded obviously as I said before.”

I can trade… what my mind can “do”, because I “own” it? … this is so confused

You mean confusing? Stephan no offense, but is English your second language? That may explain why don’t understand.

No! I should perhaps have said “confusing” but I think “confused” is grammatically correct there. BUt I’ll defer to the liberal arts majors on this.

Of course you own your own labor and this is not some mystical or metaphorical confusion.

Really? Can you leave it to someone in your will?

No, since labor requires ACTION, and the presumption of leaving something in your will means you have become a CORPSE, i.e. a motionless body, then NO YOU CAN’T LEAVE YOUR LABOR.

Good. I agree. However, you can leave your corpse to a designated recipient. This helps illustrate why it’s mystical nonsense to talk about owning action.

But you even use the term “service” as a legitimate concept that one can TRADE. So the fact that you are accusing me of using mystical metaphors only demonstrates your gross hypocrisy.

It’s hard to avoid using the common parlance. I’m simply trying to avoid being tedious, while pointing out the dangers of using imprecise language. It’s okay to say sell or trade, if you keep in mind that this describes the economic reasons one engages in the agreement, and its similarity to a normal barter or title exchange–so long as one keeps in mind this is not literally the case.

You think someone can trade a service for something in return, is that also a mystical metaphor Stephan?

Look, it’s really just semantics. It depends on what you mean by “sell” or “trade.” If you mean by this what I said before–describing a unilateral, conditional title transfer, where the labor said to be “sold” is really the object of the title transfer, or the goal of the buyer, that’s fine. But the problem is that people use this term too literally and then extrapolate from that that you “own” your labor; and therefore, you “own” whatever you “create” with it, no matter what ontological kind of thing it is. This lets them skip the inquiry of whether the thing is an ownable type of thing.

Can I accuse you of being just like a theist?

Yes, you can, and you may. But you would be incorrect.

You are of course equivocating the words “SERVICE” that is indistinguishable from “LABOR”.

I agree they are the same. That is not my point.

Let me guess: you think we own our actions too. Do we own our intentions? Our love? Our memories?

You are equivocating the concept labor with “intention” and “love”. It’s not just ANY ARBITRARY KIND OF ACTION. It is a SPECIFIC KIND OF ACTION.

So only some kinds of actions can be owned? What kinds, exactly? What are the criteria for ownability? I say it’s the rivalrous character of a good.

Labor is an activity for economic production, a synonym would be “service” as I stated above that you seem to agree is a valid concept. You can trade your SERVICES for something in return.

Sure, but not b/c we “own” them.

Our “love” is not an activity for economic production.

No offense, Elliot Spitzer. 🙂

“I don’t need a contract with all third parties stating they can’t take my property without my consent. So likewise if I sell you a novel and retain a copyright to that novel, I’m saying that I am only selling you the book itself with the words printed in it, I’m not selling you the right to reproduce those words.”

This is essentially Rothbard’s argument. The thing is, a car is owned. If a third party uses it without the owner’s consent, he’s a trespasser, even if he’s an innocent one.

But suppose I think of a way to use my own property in a more efficient way. How is this even possibly a trespass on the “idea” of some other guy who registered his similar idea with a state agency?

As Bill stated above “She defends it, but not in opposition to the idea of “first-to-invent.” She sees the filing process only as a way of making public one’s invention so as to ensure a mechanism for its legal protection. If there were a better way to do this, I don’t think she’d object to it.”

I think you guys may be confused: *filing* is required in both first-to-file, and first-to-invent, systems. In a first to file system, if A and B each file similar patent applications, the one who filed first wins. In a first to invent system, you have an interference and the one who can prove he *conceived* of the idea first wins (assuming he can prove “diligence” in reducing it to practice and/or filing) even if he filed second.

The fact that the current legal code has set up a way to have some way that an individual can meet a burden of proof their creation was their own and prove someone else has stolen their property doesn’t negate the philosophical concept of intellectual property rights.

It shows that Rand was unwittingly justifying the European way of doing things rather than the US way, while thinking she was defending the American system. Who konws, maybe the European way is right–the US Congress is considering changing to a first to file system as a matter of fact.

That you are quibbling over how patents and copyrights are LEGALLY ISSUED is not at all important to whether you think intellectual property rights exist or not.

It’s important to illustrate *why* RAnd was wrong, why her argument is flawed, why it’s incomplete and that she was confused. It’s just a supplementary point. Helps flesh things out.

You think they don’t exist at all, regardless of how the law is designed to establish the due process for PROTECTING THOSE RIGHTS.

correct. And every concrete criticism I make of various injustices flowing from the Ip system, is met by pro-IP libertarians with agreement–“Oh, we’re not in favor of THAT”.

Or suppose I am shopping at Wal-Mart and see a new fishing rod with a cool mechanism. I can’t afford it but I am handy, so I modify my own fishing rod in a similar way. How am I trespassing?

I don’t understand how you are using the term trespassing here.

I just mean–how am I stealing? infringing, invading, violating anyone’s rights?

I’m familiar with the legal definition, that of entering onto someone’s property without their consent. I should think “theft” is sufficient enough a word to describe taking someone’s property without their consent. So I don’t understand how Rothbard is using the concept trespassing here if you are in fact correctly interpreting his ideas. Trespassing doesn’t have the element of theft added to it, it is only entering onto someone’s property without their consent, for it to be theft would require TAKING property, not merely ENTERING onto the property. So I think the term trespassing is lacking here.

Ho-kay. I’m just asking: how did my actions of making the fishing pole violate anyone else’s right? What did it “steal”? (Which is the claim implicit in pro-IP views.)

BTW I view trespass as the general category that all rights violations fall under, even theft. Trespass means unconsentd to use of property, to my mind. All crimes are types of trespass, just as all rights are property rights. D’you agree?

***

Ed Thompson:

The state by definition is corrupt and unjust, since by its nature it either taxes, or outlaws competition. Either of these actions is corrupt/unjust.

That’s inaccurate. It’s a definition-by-nonessentials. What’s essential for a governing body, or a state, is that it enforces rules of conduct somewhere. The “enforcement” is law enforcement. The “rules of conduct” are the laws. And the “somewhere” is the region. Without any one of these 3 essential characteristics, you can’t — by definition — have a governing body or state.

Your definition smuggles-in the irrelevant non-essential of “mandated, general taxation” (MGT), and also the unacceptable “argument-against-non-competition” (AANC). What makes MGT irrelevant is that the state can exist without it (it’s a nonessential). For instance, the US government existed without MGT for its first 75 years.

Okay, let me put it this way: anything that taxes is unjust. Anything that monopolizes the institution of justice by outlawing private arrangements between peaceful people is unjust. Now, if you think a state does not do these things, then we must be talking about different animals. I simply oppose any institution that does these things. Whether it’s “essential” or not.

Now, do you oppose taxation, and the initiation of force involved in outlawing peaceful private defense arrangements? IF you so, you are an anarcho-capitalist in my book. If not, you support aggression, so are not a libertarian.

What makes AANC unacceptable (as an argument) is that it relies on prior acceptance of the faulty premise that “competition’s always best” (CAB).

Actually, it doesn’t. I’ve never made this argument. My argument is simply based on the observation that it’s wrong to commit aggression (as Rand said), including aggression committed by the state, such as its taxation and justice-function-monopolization.

As a proper government administration doesn’t have sovereign “authority to determine” objective law (only Reason can do that), neither do the people have the authority to determine objective law.

BUt the state is composed of people–people of the lowest sort, usually, who are armed, and who violently rule and tax the populace. Why would you think the state is able to determine objective law, if normal people aren’t? Why is this argument any better than the liberal one that the government ought to have guns, but not private citizens?

Robert Malcom:

Taking the example of the fishing rod with the ‘cool’ mechanism – what if you decided not just to make one for yourself, but to make many of them, and in turn sell them….. is that theft, violating another’s rights [the one who first made those rods], or enroaching on that other’s ability to keep selling?

In my view, of course it’s not theft. Of course, all human action and creativity relies on things others have learned or created. We rely on language, common culture and traditions etc. Trends are copied and adapted and learned. Business trends, methods, ideas, ways of doing things; science, technology, commerce; literature etc. They all continually build on things people in the past have done. This is human civilization. It is utterly bizarre, absurd, unjust, nonsensical, to try to arbitrarily single out some recipes, information, discoveries, etc., and to say they are “owned,” and leave the rest as some kind of common background all are able to dip into.

I believe it is utterly arbitrary–the bete noir of Objectivists–to make the distinctions that IP necessarily does in protecting some types of intellectual creations but not others. It would be suicidal to try to apply the idae of IP consistently; thankfully, Objectivists don’t do this, but to avoid this, they introduce arbitrary distinctions (limiting the scope of IP; limiting its duration to some arbitrary finite term).

***

Robert Malcom: “Ok then – what if you have an idea, but no means of financing it – yet if it is told to one with the financial means, what to keep that one from making use if it, leaving you out in the cold – why, then, bother creating the idea?

Seems there is a sort of Crusoe view being expoused here…”

It seems you asking what is the libertarian or Objectivist view on how to run a particular business. I don’t think it’s about that, or that we have to answer such questions. Let the entrepreneurs figure this out.

Many business ventures have costs of exclusion. That’s just life. Drive-in movie theaters adopted speakers next to each car, so stop free riders. It cost someting to install this. If this cost had been prohibitive, there would have been no drive in movies, or they would have just put up w/ the freeriding. So what?

***

Dwyer: “A good is “scarce” if it commands a non-zero price. So, every good or service that is bought and sold on the market is “scarce” according to this definition.”

Untrue. It has nothing to do with price.

***

Ed:

… anything that taxes is unjust. Anything that monopolizes the institution of justice by outlawing private arrangements between peaceful people is unjust. Now, if you think a state does not do these things, then we must be talking about different animals.

We’re talking about different animals. You’re talking about some of the world’s instantiations of government (and visualizing those concrete things as if they were effective “stand-ins” for the universal concept: “government”). I’m talking about what government has to be in order to be.

Now, do you oppose taxation, and the initiation of force involved in outlawing peaceful private defense arrangements?

I oppose taxation without representation, such as when the Feds take my cash for redistribution schemes such as corporate welfare (and hundreds of other schemes). I don’t oppose “user fees” — which are, at root, a “use tax.” User fees ensure representation. One can always withdraw from paying user fees — and such individual withdrawal of funds effectively keeps government moral.

I oppose outlawing peaceful private defense arrangements, but I don’t oppose outlawing non-peaceful private defense arrangements — such as those that break objective law; which happens to be something sufficiently discoverable through the use of objective reasoning (its discovery doesn’t require a “market”).

Great. It seems you don’t favor a state at all, so are an anarcho-capitalist like me.

My argument is simply based on the observation that it’s wrong to commit aggression (as Rand said), including aggression committed by the state, such as its taxation and justice-function-monopolization.

This reasoning appears guilty of the fallacy of Floating Abstraction. It ignores the idea that consentual user fees can pay for government (rather than conventional taxation), and it ignores the idea that discovery of objective rule of law is possible without a market. Once we reach the attainable ideal of objective rule of law, then private defense arrangements can be judged according to it. Undoubtedly, some of these private arrangements will be found to be unjust, and on that note alone force should be taken against them (unjust law is law in name only — and should not be obeyed nor allowed to be propagated).

First time I’ve been accused of the floating abstraction fallacy–ther’s a first time for everything I guess.

Why would you think the state is able to determine objective law, if normal people aren’t?

I didn’t say that. Objective law is not “determined” in the strong sense of the term, but instead it is “discovered” through the human use of Reason. It’s one issue — perhaps the ONLY issue — where “markets” aren’t helpful to mankind (because they miss the point).

I never said the “market” does it. I simply don’t think it makes sense to hold that a group of organized thugs are better at it than private citizens.

John Armaos:

Stephan wrote:

I didn’t mean to distinguish between labor and service. They are the same for purposes of this point. My point was it’s imprecise to say you are “selling” your labor (or services).

Stop being obstinate. What does a doctor sell to his patients? A SERVICE. What does a lawyer sell to his clients? A SERVICE. What does a babysitter sell to her clients? A SERVICE.

There is a whole sector of the economy called the SERVICE INDUSTRY. What do you suppose they are selling? DUH! A SERVICE!

And that’s it! I’m not talking about something so god damn simple as that anymore. Either you understand or you don’t. I’m convinced you just want to be right for sake of being right.

John: I simply don’t want to be held to be admiting that we “own” our “labor” just b/c I grant that you can enter into a contract that is economically viewed by the parties as “selling” the labor. That’s all. B/c I think that error has far-reaching implications.

the question is whether there IS intellectual property. If there is not, there is no stealing.

So for example, suppose I’m generally aware of the plot for Star Wars, but have never even seen it. Suppose I write “Stephan Kinsella’s Further Adventures of Luke Skywalker”. What am I “stealing”?

You are stealing George Lucas’ creation of the fictional characters and plots he created for his films and books to which he copyrighted.

You don’t copyright anything–it’s not a verb. It’s not an active thing, like a filign or registration. He is simply granted one automatically by federal law. But anyway, you are just begging the question here.

Why Stephan, do you think the United States has invented more drugs, more products, more literary works, more music, more movies, more television programs THAN ANY OTHER COUNTRY IN THE WORLD!

B/c we’ve had a freer economy? Anyway, is your case for IP that it generates more pharmaceuticals, or some similarly utilitarain case?

I’m very thankful we have some recognition of intellectual property rights in this country, even if the current system is flawed. It is better than not recognizing them at all.

Ah, so you ARE in favor of our current IP system. Except for all the defects in it that i keep pointing out.

The United States produces more new drugs than any other country in the world and not surprisingly, the United States has for its legal code the most recognition of intellectual property rights than other nation in the world. That correlation Stephan is not a coincidence.

How do you know this? I think it’s despite IP law, not b/c of it. THe IP system as far as I can tell is a huge drag on the economy, if you want to get all utilitarian.

Why do you keep bringing up liberal arts majors? What the hell difference does that make? What in the hell does engineering have to do with the discussion of INTELLECTUAL PROPERTY RIGHTS?

Dude, settle down. First, it’s funny. Second, I’m an engineer and most patent attorneys are too. Third, liberal arts majors do often resort to emotionalist or incoherent/non-analytical arguments.

Wait a minute, I checked Stephan’s profile and he says he’s a patent attorney. WTF? What gives Stephan? Was this whole thing some elaborate fraud on your part? You are a patent attorney but you don’t believe in patents?

Uh, the fact taht I’m a patent lawyer is all over the net, and mentioned in many of my anti-IP pieces; and even on this comment thread I mentioned I started questioning RAnd when I started practicing IP law.

What “fraud” are you talking about? Does a tax lawyer have to believe in taxes? Jesus. See my The Morality of Acquiring and Enforcing Patents, available here.

***

John Armaos:

John: I simply don’t want to be held to be admiting that we “own” our “labor” just b/c I grant that you can enter into a contract that is economically viewed by the parties as “selling” the labor. That’s all

I.e., you don’t want to admit when you’re wrong.

Not so. Have you read Rothbard and Evers on the title-transfer theory of contract? My view is based on theirs. A Theory of Contracts: Binding Promises, Title Transfer, and Inalienability.

You don’t copyright anything–it’s not a verb. It’s not an active thing, like a filign or registration. He is simply granted one automatically by federal law. But anyway, you are just begging the question here.

And like the rest of your posts, you don’t actually lay an argument why I’m begging the question.

When I say you are begging the question, I’m saying your argument is not complete, that it is circular. How am I supposed to prove a negative? When the issue is whether intellectual creations are property, and you say it’s “stolen,” that begs the question by assuming what is to be proven–namely, that it’s property (this is implied by “stolen”).

And you are wrong, the term copyright can also be used as a verb.

John. Please tell me how you “copyright” something? When people say “copyright” as a verb, they say it b/c they mistakenly think that the coypright system is a registration based one, and that by “filing” a copyright registration, you are copyrighting the thing registered; or they maybe think that by stamping it “copyright” they are “copyrighting” it. I am pointing out that this is a mistaken assumption. There is no requirement to register, or to put a copyright notice. Yes, to “copyright” something does mean to “secure a copyright on”–but this has no referent, since you never secure a copyright on something. It’s automatic, and the result of federal law.

Ah, so you ARE in favor of our current IP system. Except for all the defects in it that i keep pointing out.

As I already said Stephan, I favor some system that recognizes intellectual property. I don’t presume that the system is perfect. I know there are flaws. But you think the whole system should be scrapped and we shouldn’t recognize any kind of intellectual property rights. I don’t care to talk about those defects because I don’t know enough, and you obviously have a better understanding of the current legal system with that.

HOWEVER, I could make a similar argument that the current judicial system has flaws. That it has defects that I could point out. If you were to be logically consistent, then you would favor scrapping the entire judicial system and not recognizing murder is a violation of rights.

Well, as an anarchist, I DO favor scrapipng the current judicial system. But anyway, I don’t oppose IP b/c of the flaws I identify: I oppose it for principled reasons: b/c in my view it’s incompatible with individual property rights. Pointing out the flaws is mostly for the benefit of utilitarian or concrete-minded people.

So again, it is a fallacious argument to philosophically deny the existence of a moral principle because the legal system is flawed because moral principles, i.e. rights, are derived before one can go about setting up a legal system for the recognition of those principles. The law comes after we first establish what is moral. So if the law is flawed, it does not necessarily mean the moral principle it is based on is flawed. I don’t think that’s all that hard to understand.

All I can say is that as an IP attorney, with an intimate knowledge of the IP system, I am unclear as to the contours of the system you purport to advocate, so I am at a loss as to what critiques to make of it, otehr than the general, principled one I have already made in detail.

I originally wrote in response to Stephan’s insults:

Why do you keep bringing up liberal arts majors? What the hell difference does that make? What in the hell does engineering have to do with the discussion of INTELLECTUAL PROPERTY RIGHTS?

You respond:

Dude, settle down. First, it’s funny.

Well I don’t find it funny. And just because an insult is funny to you doesn’t mean it’s funny to me. Putting a smiley face at the end of your insult and telling me you find it funny doesn’t exculpate you from the ad hominem attack. I find it cowardly to attack a debating opponent on his choice of a college major. I expect nothing more than honest debate and I will call you out for any intellectual dishonesty. My college major does not validate or invalidate any of my arguments any more so than your engineering degree validates or invalidates your arguments. It is totally irrelevant.

Oh, for God’s sake. Sorry, okay! I “retract” my comments (officially, in the Official Objectivist Book of Retractions).

Uh, the fact taht I’m a patent lawyer is all over the net, and mentioned in many of my anti-IP pieces; and even on this comment thread I mentioned I started questioning RAnd when I started practicing IP law.

What “fraud” are you talking about? Does a tax lawyer have to believe in taxes? Jesus. See my The Morality of Acquiring and Enforcing Patents, available here.

Ok fair enough. On the surface it seemed absurd to me that a patent lawyer would argue against the existence of patents. So I apologize for coming to a rash judgment like that. I I took offense to you repeatedly bringing up liberal arts majors as I view that as nothing more than a condescending insult. Will wait to hear your apology for that.

Alright, I apologize to whoever was offended by my comments about liberal arts majors. They are not all stupid, and not all engineers are smart. Everyone is an individual. Etc.

But I am curious why you would think it absurd a patent attorney opposes patents. Surely people don’t have to be corrupt and biased by things that are in their narrow economic self-interest? I could imagine a public school teacher who opposes public schools, just like many Objectivists are professors at state universities.

***

Jon Trager:

Stephen: “Uh, the fact that I’m a patent lawyer is all over the net, and mentioned in many of my anti-IP pieces; and even on this comment thread I mentioned I started questioning RAnd when I started practicing IP law.

“What “fraud” are you talking about? Does a tax lawyer have to believe in taxes? Jesus. See my The Morality of Acquiring and Enforcing Patents, available here.”
John: “Ok fair enough. On the surface it seemed absurd to me that a patent lawyer would argue against the existence of patents. So I apologize for coming to a rash judgment like that.”

It still seems absurd to me. What, *in essence*, does a patent lawyer do? He argues for legal titles to intellectual property on behalf of his clients, no? If I’m wrong about this, I’d appreciate a correction.

Patent attorneys do many things. One thing is to advise clients on their legal rights. Another might be to file for patent applications–to help obtain patents. Another might be to defend them in litigation, or to help them sue a patent infringer.

Even if you oppose patents, there is nothing necessarily wrong with obtaining them–like guns, they can be used for good or for evil. To sue someone is arguably bad, but what if you are sued for patent infringement?–wise to have your own arsenal to strike back with. Etc. Most patents are acquired or defensive purposes anyway (which is another reason the whole system is a waste).

If I’m right, then Stephen’s chosen work, the central purpose of his life,

My job is the “central purpose of my life”? Wow. Not my wife, or kids, or family, or maybe libertarian activism?

Anyway,

*by his own argument* primarily consists of helping some individuals violate the rights of others by gaining or keeping legal titles that he views as wrong (under his utilitarian analysis).

It’s not true, as I noted above. Obtaining a patent is not violating rights. Nor is using one as a counterclaim (defensively). Only suing an innocent person is arguably rights-violating.

And even here: it is not MY decision, but my client’s. Is the lawyer responsible for what the client decides?

I tried to explain some of this in my post, The Morality of Acquiring and Enforcing Patents, linked previously.

If that’s true, it’s not just absurd; it’s also immoral.

This makes no sense to me: if enforcing a patent is immoral, it’s only immoral if it’s engaged in by someone who disagrees with patents…? But it’s okay for those who mistakenly think patents are justified?

Look, let’s suppose the patent system is immoral per se. Who do you expect to be able to see this and articulate arguments for–isn’t an “insider” ideally suited to being able to see this? Your argument is reminiscent of one I find truly repugnant–when a black like Clarence Thomas opposes affirmative action, he is critized by the left–mostly by white latte liberals–for opposing it, since “he benefitted from it.” This is a truly disgusting, evil argument (not saying yours is this bad–it just reminds me of it a bit in structure): first, the liberal is using the very arguments that he attacks when opponents of affirmative action make (i.e, we critics say that one problem w/ aff action is that it makes people doubt the success of really competent blacks; the liberal expresses outrage over this argument, yet relies on it here); second, he’s saying that not only do we have to succumb to and abide by the immoral law he has succeeded in foisting on us, but that we can’t complain about it either–that blacks can’t complain… once you are roped into a system that “benefits” you, you are now forever unable to complain, b/c that woudl be hypocritical. So they are foisting the bad law, the bad system, on you, and also foisting on you a type of “hypocrisy” that you are unable to escape if you even criticize it. They try to turn everyone into dependent parasites, so that no one is morally clean enough to object any more. Utterly disgusting.

I agree with Rand, when she said we are not obligated to be martyrs. I agree with Rand’s idea of the face without pain or fear or guilt. I have none. This G*ddamned legal system is not *my* fault, and I refuse to be penalized in my life for it, or to take blame for it. Not an ounce.

***

Right on, Fauth. Exactly right.

Look, dishonest and/or stupid types go crazy if you say there is no right to free speech, but only a right to own and control your own property. They dishonestly say that you are in therefore favor of censorship.

Likewise, many libertarians go nuts if you say you don’t “own” your labor–they say, “you are in favor of slavery then!!” It’s like, calm down. They don’t realize that we simply believe that owning one’s body and property one acquires is *enough* to let you do any of the other things we are said to have rights to–right to produce, to be free, to publish, to speak. These are all really just consequences of the basic right to self-ownership. They are not separate, independent, stand-alone rights. Rand at least implicitly recognized this:

The right to life is the source of all rights — and the right to property is their only implementation. Without property rights, no other rights are possible.

This is all I am saying if I say that we own our bodies, but not our labor; labor is what we DO WITH our bodies. It’s not a separate thing or substance that you own. Since you own your body, you can decide *what to do with it*–what services, labor, or actions, to perform. This gives you the practical ability to obtain payment for performing these services–since your ownership of your body gives you teh abilty to choose whether to do a certain action or not. So you can make a deal with someone else who wants you to do something, so that he pays you if you perform it. None of this implies you “own” your labor.

***

John Armaos:

Jonathan:

If you own a lawn mower and cut someone’s yard for money, would it make any sense to say that you own the action of cutting the grass? It doesn’t to me.

If it is your effort, it is your own and not anyone else’s. Does that make more sense? If it’s not your effort, and your not entitled to trade that effort or that action for something in return, then you undercut the notion of freedom of action.

I think the mistake you are making is in assuming anything you can conceive of, has an owner. If I don’t own it, then it means someone else must. Or something like this.

Look, you don’t own “effort”. Effort is something you do with your body. You don’t need to own your actions, to profit from them. You can tell someone who wants you to do something, I won’t do X unless you agree to pay me $100 IF I do X.

You own the lawn mower and your body, but I don’t see how you can own the intangible actions associated with them.

Jonathan I don’t understand what you mean by “intangible action”. What kind of action is there other than tangible actions?

I think he means ephemeral or fleeting; not a separate, ownable *thing* separate from one’s body. It’s one of the things one *does with* one’s body.

One should be careful not to equivocate the language being used here. A tangible asset is not the same as a tangible action. Motion is not an object, but it is something that can be traded and in that sense it is tangible (tangible here meaning real or actual).

The fact that your action can be “traded” does not imply you own it. What is really going on in a trade like this is a unilateral transfer of title, *triggered by* the action. But there is no title to the action to transfer. Surely you would not say that if I “sell” you my labor, now you “own” my labor? After I perform what you wanted me to perform, are you in possession of my labor? Do you “own” it?

You and Stephan are using ownership to only mean a tangible asset, I’m not defining ownership that narrowly. As Stephan agreed before you can trade your own labor,

Only with the caveat that it means what I stated above–this is exactly why I was being careful about it, since otherwise it gets twisted into implying that labor is ownable.

and it doesn’t make much sense when you enter into a contract with an employer that you are trading your “body” for money in exchange. You are of course trading the motions of your body for money in exchange.

You can use “trading” if you want, but as long as there are not mutual exchanges of *title*, the agreement is really only a unilateral transfer of title. It’s one-way only.

That is you are trading your productive effort.

Fine. You can put it this way. But it does not mean you really have title to your labor or effort, or that the “buyer” receives title to your effort.

Look, think of an example: A pays B to sing for C for her birthday. A is not even present, but B shows up and sings for C. C is delighted and visits A, and gives him a big kiss of gratitude.

Now, surely it’s confusing and awkward (and unnecessary) to say that when B sang for C, A acquired title to B’s actions?

When you decide to mow someone’s lawn in exchange for money, are you exchanging your body or your lawn mower with your client? Of course not, you are only trading the particular motions that your body and your lawn mower will be making.

Actually, you are not exchanging anything, since you are not giving any title away. You are just *doing something* the buyer wants done. It’s not really an exchange–if by exchange you mean exchange of title.

I’ve gone over all this in detail in A Theory of Contracts: Binding Promises, Title Transfer, and Inalienability, Inalienability and Punishment: A Reply to George Smith, and Reply to Van Dun: Non-Aggression and Title Transfer.

***

John Armaos:

To address some of Stephan’s previous comments:

You think we “own” our own “time”…? What the heck does this mean??

Time is a measurement of motion. And when someone refers to “their time” they are referring to their motions, or actions. That’s how we get the expression owning our own time. It literally means owning our own motions.

I’m getting to the point of diminishing returns with you. Either I can’t think of a way to splain it, or you just don’t get it. I think you are misunderstaning what I’m saying, so probably my fault.

Look, you don’t own “effort”. Effort is something you do with your body. You don’t need to own your actions, to profit from them.

If you don’t own your own actions, then someone else does

Perfect example of my point: you think everything has an owner. That’s why you feel compelled to say that it’s owned by the person it’s related to, otherwise, someone else owns it. I think this is nonsense, but apparently am not reaching you.

, and you are thus a slave. To deny that our efforts don’t have any tangible measure to them is to deny the existence of the freedom of action.

I have no idea waht it means to deny that actions have a tangible measure to them. What this has to do with ownability of “actions” is beyond me.

I think the mistake you are making is in assuming anything you can conceive of, has an owner. If I don’t own it, then it means someone else must. Or something like this

Yes something like that. My thoughts are my own, not yours.

Thanks for confirming my suspicions.

The way I conceive it, just b/c language puts a possessive “your” on something does not mean it’s really an ownable piece of property. I have memories of my childhood; I have love for my wife; I don’t “own” these things, and to say this doesn’t mean someone else does–it means they are not ownable things. What you seem to be missing is that just as Rand said that property rights are the only rights, owning your body is enough to give you the right to control your actions. Don’t you see? Owning your body *is*, in a sense, “owning” your actions (in your sense, in a more metaphorical, imprecise, sense). Owning your body gives you teh right to control your actions–and what is ownership, after all, but the right to control? But see how it derives from–is merely a consequence of–owning your body?

But the finer points of intellectual property rights is the question of exclusivity to the reproduction of one’s creations. I do own my own labor, but I may not necessarily have the right to assert exclusive rights to the reproduction of that labor. It has to be something unique, and something of productive effort where either prior costs are associated with coming up with that unique idea and can be implemented as a tangible product or service.

I have to say this does not even seem like an argument to me. It’s just a bunch of assertions. What is uniqueness, and who says it has to be unique? Etc.

So for example if I come up with an idea of Star Wars and make the movie, I have exclusive rights to the reproduction of that because if I didn’t, it would rob me of the benefit of coming with a unique creation.

Do you realize that copyright is not just the right to reproduce? First, it’s not just literal reproduction; otherwise minor changes woudl be enough. So it is broader than that. And how to define this is inherently arbitrary and NON-objective. Second, it includes other rights, such as derivative rights, the rights to perform, or “digitally” broadcast. How any objective system of law would include these ad hoc, arbitrary, state-determined rights is beyond me. I don’t trust the state, you see, that mass-murdering mafia, so don’t put much stock in the reasons of those guys in coming up with a patent system–the same thugs who give us income tax and the Americans with Disabilities ACt and Affirmative Action and the Civil Rights act and pro-union legislation and prohibition.

We ought to reward creative efforts, not rob people of them.

Maybe the state ought to give them a tax-funded award, if the government-granted monopoly is not sufficient.

Stephan wrote:

The fact that your action can be “traded” does not imply you own it.

Of course it does imply that!! If it’s not yours you can’t assert a right to trade it.

This is realy not that hard to understand, John. You own your body; you can decide what to do wiht it. You can use this power to make a bargain. This is really not that complicated. Your assertion that this means you “own” the action you perform to induce someone to pay you is just an assertion.
Let me try one more example. Suppose I know the CEO of Dell, and you ask me to use my “influence” with him to persuade him to consider you as a battery supplier. You agree to pay me $10k if I’m successful in arranging a meeting. So, I put in a good word for you with Michael Dell, and sure enough, he agrees to meet with you. You dutifully pay me the $10k. Now: did I “own” my “influence” over Michael Dell?

Jon Trager wrote:

It still seems absurd to me. What, *in essence*, does a patent lawyer do? He argues for legal titles to intellectual property on behalf of his clients, no? If I’m wrong about this, I’d appreciate a correction. If I’m right, then Stephen’s chosen work, the central purpose of his life, *by his own argument* primarily consists of helping some individuals violate the rights of others by gaining or keeping legal titles that he views as wrong (under his utilitarian analysis). If that’s true, it’s not just absurd; it’s also immoral.

Jon you make a good point. I was about to defend Stephan on this one by saying he wouldn’t be a moral hypocrite if he was defending clients against an accusation of IP infringement because he doesn’t agree in their legitimate existence, however it seems as he has said he also helps people file patents.

Stephan said:

Even if you oppose patents, there is nothing necessarily wrong with obtaining them–like guns, they can be used for good or for evil.

To third party observers, if you find this statement absurd you should. He thinks there is no such thing as intellectual property rights and as such, it would have to mean it is immoral to assert a right over your own creation, yet helps people do just that.

I think IP is not justified, not that it “does not exist.” I think the patent system is unjustified. That does not mean obtaining a patent is immoral. It is arguably immoral to sue someone for patent infringement, but merely having a patent is not a rights violation–any more than having copyrights is (we all have copyrights in our individaul contributions to this very thread; that does not make us aggressors).

He equates this with the ownership of guns but the difference is he thinks the idea of intellectual property rights are intrinsically bad, while guns on the other hand are conditionally bad.

So I think it should be obvious Stephan is a moral hypocrite, however his hypocrisy is not important to the issue of whether intellectual property rights are a valid philosophical concept or not.

Stephan wrote:

John. Please tell me how you “copyright” something? When people say “copyright” as a verb, they say it b/c they mistakenly think that the coypright system is a registration based one…

You are confusing yourself Stephan. I made no mention of how copyrights legally work. As a verb to copyright something means to assert your exclusive rights over the reproductions of your creation

. No, it doesn’t. This is a unique usage. When you assert your rights, it means to sue someone, or demand payment. No one calls suing someone for copyright infringement “copyrighting” anything!

The fact that the federal government automatically copyrights our creations on our behalf doesn’t negate the use of the word as a verb, for the very fact the government “copyrights our creations for us” means asserting the exclusive rights to the reproductions of our creations and is thus also used as a verb.

Well, as an anarchist, I DO favor scrapipng the current judicial system.

As an anarchist you would have to be in favor of NO judicial system, not just our current one.

This is untrue.
Jon Trager:

Stephen: “Patent attorneys do many things. One thing is to advise clients on their legal rights. Another might be to file for patent applications–to help obtain patents. Another might be to defend them in litigation, or to help them sue a patent infringer.”

I think all of those concretes may be included in the wider category of trying to secure legal titles to intellectual property, which I said was the *essence* of being a patent lawyer.

Stephan: “Even if you oppose patents, there is nothing necessarily wrong with obtaining them–like guns, they can be used for good or for evil.”

Huh? Your view is that government-granted patents *per se* are wrong, isn’t it?

Not exactly: it’s that there are no natural rights to patents, so the patent system is unjustified. Just like public roads are–do you drive on these?

So how is there nothing necessarily wrong with helping other people get the state to protect work that you think shouldn’t be state-protected?

Because having this right does not mean you are using it against anyone–same with copyright. All of us here have lots of copyrights. That’s not our fault.

Stephan: “It’s not true, as I noted above. Obtaining a patent is not violating rights. Nor is using one as a counterclaim (defensively). Only suing an innocent person is arguably rights-violating.”

A patent is *essentially* an exclusive right granted by the government to make and sell an invention for a certain time period, right? If so, what happens when someone violates the government-granted right you helped obtain for a client? You sue them, don’t you?

YOu don’t have to. And usually, no. As I said, most patents are obtained for defnesive purposes. If I were to sue a competitor, it woudl cost millions, and they might have their own patents, or buy some, to sue me back, and maybe win. It’s more of a porcupine thing for most companies: they have them just to make competitors afraid to sue each other. So you have billions of dollars spent just to keep others from using their patents against you, so you have freedom to operate, to compete in the market. A cheaper way to achieve this woudl be to not grant patnets.

In other words, you attempt to *force* other people to pay money for doing something you don’t really believe is immoral, correct?

This is not what obtaining a patent does, any more than it’s what having a copyright does. Moreover, if you don’t file a patent, some competitor might file for the same thing even though they invent it later, and sue you and stop you from doing what you invented first. So it’s a virtual necessity, sort of like hiring a tax attorney if you’re wealthy. Whether it’s immoral to sue someone first, is a separate issue, but first, that’s teh client’s decision; and second, that’s not necessarily what’s involved in obtaining patents.

BTW patents are only about 10% or less of my current practice anyway, thank God.

If I’m wrong, please tell me how. I don’t believe I am.

Yes, like most libertarians with a strong position on IP, you don’t seem to understand how the system you seem to be in favor of really works.

***

John Armaos:

John, we are indeed going in circles, in my view b/c either of your distortion of my views or my inability to explain some (important as I see it) subtleties to you. So just a few replies:

Owning your body *is*, in a sense, “owning” your actions

And that’s what I’ve said over and over again.

But I am emphaiszing it’s just a consequence of self-ownership. I emphasize this b/c of the danger–which you give great examples of–of others distorting the idea of “owning labor” into justifying IP and other ridiculous notions.

I originally wrote:

[Stephan] thinks there is no such thing as intellectual property rights

You responded:

I think IP is not justified, not that it “does not exist.”

That’s what I mean. You don’t think they are a legitimate concept.

Sure, it’s a legitimate concept. Patent and copyright are current positive rights. Call them intellectual property rights if you want. (I prefer “pattern privileges.”) But that does not mean such rights are justified.

But you have no problem living your life pretending that they are legitimate.

I don’t pretend they are legitimate. I declaim them as unjust all the time. What are you talking about?

Sounds like rationalizing to me. The very act of filing a patent for someone as Jon Trager points out: “A patent is *essentially* an exclusive right granted by the government to make and sell an invention for a certain time period, right? If so, what happens when someone violates the government-granted right you helped obtain for a client?”

The fact remains you are helping someone assert what you think is an illegitimate right.

Helping someone obtain a patent is not helping them assert it. They aer different things. Again, this is not that hard to comprehend. And asserting an “illegitimate right” is not always immoral–if you sue me for infringing your patents, you can be goddamned sure I’ll sue you back for infringing mine, and there is nothing wrong with this. Why? Because by suing me, you become an aggressor. It is okay for me to hit you back with the state force implicit in a patent monopoly b/c that is defensive. Objectivists recognize the distinction between offensive and defensive force.

That is the definition of moral hypocrisy.

Why do you people always resort to this illegitimate argument? Waht is the *relevance( of my moral hypoccisy to whether or not IP is legitimate? Say I am a hypocrite. How does that prove IP is legitimate, or taht my criticisms are flawed?

Stephan:

John. Please tell me how you “copyright” something? ….Yes, to “copyright” something does mean to “secure a copyright on”-

Which shows Stephan agrees it can be used as a verb. He goes on to say to my definition of copyright, that being asserting one has exclusive rights to the reproduction of their own creations:

This is a unique usage. When you assert your rights, it means to sue someone, or demand payment. No one calls suing someone for copyright infringement “copyrighting” anything!

I mean when the federal government automatically copyrights our own creations for us, they are doing so as an agent acting on our own behalf.

“I’m from the federal government, and I’m here to help you.” Glad you are so trusting of the leviathan state. I’m not.

Stephan:

Thanks for confirming my suspicions.

The way I conceive it, just b/c language puts a possessive “your” on something does not mean it’s really an ownable piece of property. I have memories of my childhood; I have love for my wife; I don’t “own” these things,

Of course you own those things Stephan. If they are yours, you own them. That’s what having something be yours means.

I just don’t know how to respond to such views.

I’m narrowly defining owning an action for the purpose of trade only in these discussions, not just any arbitrary action or thought. Like thinking “Gee, the weather is nice today” that thought isn’t of any productive value, no services or products were produced from a whimsical though like that.

I specifically mean action for the sake of an exchange. Like a doctor trading his services for money in return from his patient. So your memories of childhood should not be construed to mean the same thing as owning your labor. Your memories are not something that can be traded in the sense that they are immaterial objects, unless we are discussing you writing a book about them, or being paid to talk about them in lecture halls. Then it is your right to do that, and you can claim ownership to that labor.

Gee, thanks for clearing that up. What a coherent theory of ownership.

***

John, “You see Stephan, the problem that arises a lot here is you simply don’t understand the English language which makes me wonder if it is your second language. Legitimate here means justified. Get it? And the fact that you are willing to promulgate something that you feel is unjustified makes you a moral hypocrite by an definition of the word.”

John, you were talking about whether the *concept* of intellectual property is “legitimate”. Now, I don’t know of any “illegitimate” concept, but even if there are some, “intellectual property” is a useful concept, just as is aggression, murder, rape, and robbery. The fact that these are legitimate concepts does not mean that their referents are legitimate actions or practices. See the difference?

I don’t “promulgate” the patent system, if you’ve noticed.

***

John Armaos:

I wrote: I mean when the federal government automatically copyrights our own creations for us, they are doing so as an agent acting on our own behalf.

You respond:

“I’m from the federal government, and I’m here to help you.” Glad you are so trusting of the leviathan state. I’m not.

For crying out loud Stephan! I didn’t say anything about trusting the federal government or saying they ought to automatically grant us copyrights. I wasn’t making an “ought” statement I was making an “is” statement, meaning that is what the government does, not that it’s what it should do.

Oh, good. I took your statement that they are acting on “our behalf” as endorsing it.

How can you think IP is a useful concept when you think it’s an invalid one? That makes zero sense.

I don’t think the concept is “invalid.” Any more than the concept of murder is invalid. It is murder itself that is unjustifed, but not the concept for murder. Having a concept for murder, and aggression, is very useful, wouldn’t you agree? And it’s coherent, and legitimate.

The fact that these are legitimate concepts does not mean that their referents are legitimate actions or practices. See the difference?

Absolutely. Which is what I’ve said so many times in this thread when I said just because the way the current legal systems applies the concept of intellectual property rights in a flawed way doesn’t mean they are not a valid or flawed philosophical concept.

IP is a fine concept. IP as a system is unjust–all types of IP.

I don’t “promulgate” the patent system, if you’ve noticed

You sure as hell do in practice. You file patents for your clients, what more needs to be said?

That’s not “promulgating” the patent system. As I explained, it’s helping clients protect themselves from a type of aggression whioh YOU, not me, endorse.

You are a moral hypocrite.

And you just favor aggression, that’s much better, right?

You don’t think intellectual property rights are valid rights, but you have no problem with taking action to defend someone’s intellectual property rights.

First, obtaining a patent is not “defending” IP rights. Second, don’t you agree w/ Rand that we have no obligation to be martyrs?

If you really want to abolish the recognition of intellectual property rights, you should stop helping people defend their assertion to an intellectual property right.

You guys would love that–the people in some sense in the best position to mount an attack on the system–those who know about it–are the ones uanble to attack it–jsut like the NAACP attacks Clarence Thomas as an Uncle Tom for opposing Affirmative Action since he “benefited” from it. I see.

If you disagree with slavery but you were a slave-owner, you don’t think you would be a hypocrite?

Probably, but owning a slave is wrong. Owning a patent is not–it’s enforcing it against an innocent victim that is wrong. Owning a patent (GIVEN a society in which there IS an (unjust) patent system) is like having a gun. IT can be used for good, or for evil.

You are just resorting to ad hominem and distraction now. None of this thrashing around justifies IP. The fact taht you can find an IP lawyer who dislikes IP law does not show that IP is justified. It’s really not all *about me*, John–I’m really not that important, in the grand scheme of things, not that I’m not flattered.

***

John A:

I don’t think [intellectual property] is “invalid.” Any more than the concept of murder is invalid.

?????????

The *concept* is a valid concept–it accurately identifies somethign in reality–namely, IP laws.

Probably, but owning a slave is wrong. Owning a patent is not-

??????????

*owning* a patent is *having a power to harm* others. Just like owning a gun is having a power to do this. What is wrong is to shoot an innocent person, or sue an innocent person for patent infringement–to *assert* your illegitimate state-granted rights.

Then for pete’s sake Stephan, why have you made every effort to deny that we have a right to intellectual property?

? B/c there is no such right. There are legal rights to IP, of course, but this is unjustified.
Dwyer:

Stephan and Phil,

Regarding anarchy, what if I decide to enforce a patent law against an innocent person, and you, believing this to be a violation of the person’s rights, undertake to stop me. Are you not acting as a government by preventing me from enforcing my own version of justice?

I don’t understand your question. In anarchy there could be no patent rights in the first place, since there is no state or legislature. But I would say that in today’s society, if A sues B (presumably innocent) for patent infringement, A is using the state to violate B’s rights. Whether B should use force to defend himself is a prudential question.

Dennis Hardin:

Stephan is a patent attorney who does not believe in the legitimacy of patents. He defends this

? What is there to “defend”? I reject the idea that there is anything to defend. The notion that i have to defend presupposes that there is something wrong with this, which I deny.

by saying that “the people in some sense in the best position to mount an attack on the system–those who know about it—“ should properly work in a field they regard as illegitimate as a way of undermining it. Sort of like a pastor who decides he is an atheist but still wants to work within the church.

More like the tax lawyer who opposes income tax and works to help his clients navigate the unjust tax system.

Stephan says: “Owning a patent is not –it’s enforcing it against an innocent victim that is wrong “ In other words, it’s fine to “own” a patent as long as you never make use of it—as long as you let everyone usurp your so-called “intellectual property” with impunity.

Actually, it’s okay to use it defensively. But look, all of us have innumerable unjust state-granted positive rights–rights to apply for welfare, to sue for racial or gender or ethnic/religious discrimination, to sue for copyright infringement etc. And in any society, we all possess the power to attack innocent people–to become criminals. Having a power, or capacity, to do something wrong, is not doing it.

It’s fine for Stephan to charge an attorney’s fee for providing clients with something he regards as immoral to use.

? It’s not always immoral to use it. Again: most patents are defensive. One purpose they serve is to definitely publicize and idea, so that other companies can’t get a patent on the same idea and shut me down. Another is to deter others from suing me for violating their patents. What is wrong with that?

Yet we are supposed to carefully consider the arguments of someone who earns his living by taking money in exchange for legal services he sees as inherently worthless.

My legal services are not “inherently” worthless; *given* the unjust patent system, people need patent attorneys to help them deal with it. Just like, given a tax system, you will need tax attorneys. They are providing a valuable service *given the existence of* the tax system; but in an idael world, there woudl be no patent, or tax, system, and no need for patent or tax attorneys. What is a drain on society are the tax laws and patent laws, NOT the service-providers who inevitable arise in response to such unjust systems.

Martyrdom is not the price of integrity, Stephan. On the contrary, integrity is a precondition of successful living. Living a lie is the essence of self-immolation.
And it makes your arguments come across like the ravings of a drunk in the village square.

Oh for God’s sake, you guys really are seriosos. I am not living a lie–I like helping arm companies with patent arsenals they can use to defend themselves from unjust lawsuits, just like I imagine anti-tax tax attorneys get some pleasure from helping clients avoid taxes; and like anti-cancer cancer doctors like to help people fight cancer.

Furthermore, you seem to think all IP lawyers do is “help people assert patents”. This is not true. They do all sorts of innocent and innocuous, beneficial thigns–transactions, agreements, licenses, review, opinions, searches, advice, etc. Plus non-IP law, like corporate, contract, etc. There is no necessity to violate rights, just b/c you are a patent lawyer.

***

Bill:

I asked Stephan, “Regarding anarchy, what if I decide to enforce a patent law against an innocent person, and you, believing this to be a violation of the person’s rights, undertake to stop me. Are you not acting as a government by preventing me from enforcing my own version of justice?”

He replied, “I don’t understand your question. In anarchy there could be no patent rights in the first place, since there is no state or legislature.”

Huh? So, are you saying that under anarchy there would be no rights of any kind, because there is no state or legislature to enforce them?

No, of course not. There are rights always. The question is are there legal (positive) rights–that is, actually enforced and respected versions of natural rights, in a given society. In today’s society, positive rights mirror natural rights only imperfectly–I’m sure you would agree. There is overlap, but it’s far from being a close fit, as it would be ideally. In a free society with no state, you remove one major source of the deviation–public or institutional criminality. But sure, natural rights would to some approximation be respected in a free society. However, it is not conceivable that the arbitrary, statist, decreed, legislated laws and rights that exist today (like the Americans with Disabilities Act, say) would exist in a free society. Some laws and rights can only arise by being *legislated*. In a free scoiety, there are decentralized courts, but no private “legislature”; the idea makes no sense. I view patent rights as a type of legislated right that could not arise naturally, organicaly, without decree by a centralized state.

Suppose I tried to prevent you from stealing my invention. In other words, suppose I tried to stop you from marketing it without my permission.

Let’s be clear: your hypos is this: suppose you tried to trespass against me and my property, to stop me from using it as I see fit, because you think you have a partial ownership claim over my property, due to your thinking of a useful way to use your property. I.e., you want to use force to stop me from, say, tuning my fuel injector on my car, with my hands and tools, sitting in my driveway–because of your delusion that you have some claim over my property because you filed a document with some “invention claim company” that said you were the first to think of that way of adjusting a fuel injector?

In this case, of cousre, you are simply a nut who wants to invade the borders of my property. You would be dealt with the same as any nut or criminal.

If, instead of trying to physically stop me or take my property, you filed some lawsuit, everyone would laugh at you and it would instantly be dismissed–just as it would if you filed a claim in a private court system trying to sue me for racial discrimination or for failing to have 4 handicapped parking spots in my own parking lot.

Wouldn’t your defense agency try to stop me from enforcing my view of justice?

Sure.

And if so, wouldn’t it be acting as a government.

No, it would be acting as my agent. It’s just doing what I have a right to do–to use force to defend my property. As Rand herself held, defensive force is justifiable. It is not initiated force. Merely using force against a loony criminal is not being “a government.” It is certainly not being a state, which is what anarchist oppose. “Government” is ambiguous. We oppose the state: that is, the agency of institutionalized aggression.

***

Trager:

Stephan: “Not exactly: it’s that there are no natural rights to patents, so the patent system is unjustified. Just like public roads are–do you drive on these?”

Of course. I have no other choice if I want to go places. Do you have no other choice if you want to earn money to support yourself and your family than to be a patent lawyer?

As I have noted, there is nothing inherently wrong w/ being a patent lawyer. It does not mean asserting patents against anyone. This is only one of many things a patent lawyer can do–95% of them legitimate. I don’t do the 5%–patent enforcement/assertion/litigation.

Stephan: “Because having this right [a patent] does not mean you are using it against anyone–same with copyright. All of us here have lots of copyrights. That’s not our fault.”

Stephan, this is absurd. What’s the point of getting a state-granted patent if not to be able to enforce a legal claim *in the event* that the patent is violated??

I’ve explained this many times. It’s primarily defensive–to assert in a counterclaim against someone who is suing YOU for patent infringement. This is NOT wrong, since it’s defensive force.

Whether or not most people *actually* violate patents is irrelevant. The fact is that a patent is literally worthless without the government force to back it up?? By your utilitarian moral analysis, such force would be unjust in this context,

No, only if asserted against innocent victims. Not if asserted as a counterclaim against someone threatening to sue me for patent infringement.

Stephan: “BTW patents are only about 10% or less of my current practice anyway, thank God.”

Good. Then you wouldn’t lose much of your income from giving that up and having integrity.

10% of my job is patent related, and this patent practice falls in the 95% part of patent law that is legitimate. I don’t do patent litigation, and if I did, it would be defense.

Stephan: “Yes, like most libertarians with a strong position on IP, you don’t seem to understand how the system you seem to be in favor of really works.”

Do I have a technical understanding of the procedural details of the US patent system? No, although I used to talk about it with a friend of mine who was previously a patent examiner, so I probably know more about it than most people. Do I have a general understanding of the essential nature of intellectual property protection? Yes. This conversation isn’t about the current US patent system; it’s about state-granted patents *per se*. You shouldn’t conflate the two.

This makes you guys slippery: if I criticize various features of the current system as unjust, you crawfish out of it and say that you don’t favor that. When I ask you waht the hell you DO favor, you fudge and say that you are not an expert. Sounds a lot like the way theists argue about “God”.

***

Armaos: “But you still help people file a patent and you don’t know what your client will do in the future with that patent.”

actually, I do, since I only have one client–the one I work for. I control all that.

“You do realize your client today may not be your client in the future? Do you ask your clients what is your intent with filing a patent? Can you stipulate the patent will only be used in a way that you morally sanction?”

If you sell someone a gun, do you have to make them “stipulate” they will only use it for good? Dude, we live by right, not by permission.

***

Armaos:

If you sell someone a gun, do you have to make them “stipulate” they will only use it for good?

Difference is using a gun for evil purposes is already against the law. Using a patent for what you deem to be evil purposes is not against the law.

This is irrelevant. It’s also not against the law to sue someone for discrimination, though it is immoral and a violation of rights. Yet if I sell you a computer, it’s not my fault if you use it to draft the pleadings for such a lawsuit.

Keep rationalizing to yourself there buddy.

It’s not a rationalization; I think you are just kind of ignorant of the way patent lawyers practice and interface with clients.

Armaos: “But you still help people file a patent and you don’t know what your client will do in the future with that patent.”

actually, I do, since I only have one client–the one I work for. I control all that.

So you won’t take any action against me if I start up a company of my own using an identical company name to your client’s company name, logo and inventions etc?

Nah, I have other things on my plate.

***

Armaos: no, I won’t sue you. BUt I think you are pettifogging. The issue is whether IP is justified. Whehter or not I’m a hypocrite is irrelevant to this issue. these are deflections.

Dwyer:

I asked Stephan, “Suppose I tried to prevent you from stealing my invention. In other words, suppose I tried to stop you from marketing it without my permission.” He replied,

Let’s be clear: your hypos is this: suppose you tried to trespass against me and my property, to stop me from using it as I see fit, because you think you have a partial ownership claim over my property, due to your thinking of a useful way to use your property.

What I had in mind is this: I offer you the right to my invention for your own personal use at a mutually agreed-upon price, but under the terms of our agreement, deny you the right to market it for your own profit. But you break the agreement and proceed to sell my invention at a profit.

Well, in this case, it’s not “stealing,” it’s breach of contract. And in this case, sure, you could sue me for damages. Sure. Because of a contract, not b/c there is any such thing as “intellectual property.”

So, I get my defense agency to arrest you for marketing my invention without my permission.

Well, I doubt such contract breach would be regarded as a crime subject to arrest and punishment; it would probably be a civil action, a suit for damages, like any breach of contract.

But since you don’t agree that I have any right to demand that you not profit off my invention,

But I do agree that you ahve this right, since we had a contract.

I think you are just trying to find a hole in anarchy, not in the opposition to IP. Look, I’ve addressed the issue of trying to base IP on contract, in detail, see pp. 33-41 of Against Intellectual Property.

***

One note: previously I hypothesized that Rand justified first-to-file b/c she mistakenly believed this was the US approach, and thus liked it or assumed it was right, or tried to justify it. I just realized that in another, older thread here, I noted another time she did something similar: “I have it on good authority that Murray Rothbard’s correspondence indicates that around 1954, Herb Cornuelle convinced Ayn Rand to oppose eminent domain; she had peviously favored eminent domain because the Constitution (apparently) implicitly authorized it.”

Interesting.

***

Letendre, “In previous discussions you have asserted that “holding a monopoly on the use of retaliatory force” is non-essential, and that all that matters is that government hold a monopoly on writing the rules for the use of retaliatory force.”

I confess, when I make an error, I am usually confused about whether it’s the Floating Abstraction fallacy, the Stolen Concept Fallacy, or the Fallacy of Definition by Non-Essentials. What are the other buzzwords, catchphrases, and “bromides” these guys bandy about?

***

Ed: “You’re setting up a Straw Man here. For instance, you’re making the Founding Fathers — folks who discovered that humans have individual rights against their own governments (and that only the Objective Rule of Law will ever protect for that) — you’re making these founding folks out to be “a group of organized thugs.” Yeah, sure, when the very Founding Fathers are thugs … anything goes! But the Founding Fathers weren’t organized thugs, they were organized reasoners (with some rifles).

Yes, they used muscle (against mother England) in order to implement this country — but they used the mind first (and only then implemented the mind’s solutions with their muscles). It was one of the very first times in human history where right beat might (i.e., where “might makes right” didn’t hold — because it doesn’t have to!).”

Of course there is nothing wrong w/ using force (muscle) to protect one’s rights. But the Founding Fathers were not some gods. They didn’t “discover” that we had rights. They were political animals like all Congress-critters (in L. Neil Smith’s felicitous phrasing). As for might-makes-right, they set up a flawed Constitution, via a coup d’etat, that was bound to devolve, via democracy and centralization, into the leviathan state we have now–as it has. They set up a state that left women and blacks to suffer as sub-humans. They destroyed a monarchist hierarchy in their naive utopianism that might have saved us from what has happened. In their war against the mother country, the conscripted soldiers, and shot deserters. Right beating might, eh? From the get-go, it was flawed, and destined to be, as all states are.

***

John Armaos:

“Stephan I noticed you’ve dodged my question twice now. Should I take your silence to mean your client doesn’t know your philosophical view on intellectual property rights? Would you mind if I told your client that you would not take action to protect their intellectual property? Because I can only think of three possible explanations for the facts here:

1) You are lying and would act to protect your client if I started using your client’s intellectual property. Which means you’re just a hypocrite.

2) You are telling the truth and your client doesn’t know your position, which would mean you are committing a fraud against your client.

3) You are telling the truth and your client already has knowledge of your philosophical position (which is hard for me to believe) then you wouldn’t mind if I asked your client if he knew.”

Tibor Machan: “It is sad that so much of this discussion includes endless ad hominem attacks. Seems to reinforce the impression some folks have of Objectivists, namely, that they are reluctant to keep personal attacks out of intellectual disputes. Of course, disputants can have moral flaws but that is irrelevant to whether their arguments are sound and a forum such as this one is supposed to address the latter point, not the former.”

NSK:

John, I don’t care to engage any further with you on pointless personal or meta-issues, thread-hijacks or derailing, sidetracking or deflecting. This post was about Tibor’s article, which was about intellectual property and its legitimacy. I disagree with Tibor but for sincere reasons, and his argument is reasonable too. You guys have turned this into an inquisition on my job and anarchy and libertarianism. And you seem unable to discuss this civilly without getting threatened or upset when I make substantive points that are contrary to established or received Objectivist wisdom. Is this a discusion thread or not?

If you want a thread about Stephan Kinsella’s personal career, uh, start one. I would be happy to discuss rights theory, or anarcho-libertarianism, on the appropriate forum/thread. This is about intellectual property.

***

Armaos:

Machan I’m not using ad hominem attacks. Hypocrisy and fraud are not ad hominem arguments especially if they are true.

In any event, they are if nothing else *irrelevant*. The question is whether IP is justified, not whether I am a hypocrite. In fact, from your point of view, I am heroic, b/c I help defend and secure intellectual property for American corporations–why do my private thoughts detract from this heroic effort? Aren’t you being a hypocrite for not worshipping my heroism?! (I’m joshing here, people, relax.)

As for “fraud,” this concept is widely misused by libertarains–very imprecisely, vaguely. See The Problem with “Fraud”: Fraud, Threat, and Contract Breach as Types of Aggression; Trademark and Fraud.

I even stated Stephan’s hypocrisy does not validate or invalidate his arguments on intellectual property. Did you miss that post where I stated this?

I missed it, but good.

If anything Stephan has been guilty of ad hominem attacks by initially attacking my college education and presuming liberal arts majors can’t make coherent arguments.

Actually, I had no idea what your education was, and was only joking anyway. Plus, I apologized when you kept complaining.

Should Stephan have the impression Objectivists are more interested in personal attacks, I should think I should legitimately get the impression anarchists are only interested in personal attacks.

Look: bygones, okay? My feelings are not hurt. But I’m really just interested in the issues and truth and justice.

Armaos, your continual questions about my way of grappling with my career and trying to stay true to my political views — I don’t think this is the right forum. Maybe such a discussion could be interesting–how does one live morally in an unfree world, etc.–but why would it focus on me, just b/c I have the temerity to disagree with most of my fellow patent lawyers?

Dwyer:

Just to understand your basic position, you’re saying that if a drug company puts million of dollars into researching and developing a drug, another drug company, who did not put any money into its research and development, should have the same right to produce and sell the drug at a profit as the original company? Is this correct?

Sure, as long as they didn’t commit theft to obtain the information and are not under any kind of contractual obligation not to do this. But who know what cartels or inter-company agreements would exist in a free market?

Ed: apology accepted. I think we all ought to try (me too) to just be civil and have a nice discussion without assuming ill-will or stupidity etc. We are all libertarians here, after all. (I kid, I kid 🙂

***

Trager: “So Dr. Machan, in your opinion, it’s *never* appropriate for a person to point out any perceived hypocrisy? Even if that person is *not* using it as the basis for attempting to invalidate another person’s argument (which, as I pointed out, is the context here)? I certainly disagree with that idea.”

I’ll respond to part of this, b/c there is an aspect I find interesting, though it is off-topic so a bit sidetracking (but not personal). I have noticed this kind of tactic is often used in political campaigns: Obama will say, “I wish Hillay Clinton would really denounce XYZ.” Now he is basically saying that she is a hypocrite if she does not; but it’s funny, because why does he want her to denounce XYZ–does he want her to be more like him, and be a better candidate? Etc.

Other times, hypocrisy is pointed out, but the goal is to persuade listeners that the person so accused is *dishonest*–so don’t vote for him.

My point is, I suppose you can point out hypocrisy if it’s relevant. But I’m not sure why or how it’s relevant in a discussion like this. Suppose I am a patent atty and patents should be abolished; you say, “aren’t you being a hypocrite”? Now, maybe I am, but what is the relevance of this? Are you politely asking if I’m lying about what I am in favor of? But then, is the issue here really whether I’m telling the truth about opposing IP? No, not realy. In fact this was about Tibor’s views, and whether they make sense. The only way I could think it could be relevant in this context, would be if you argued that if Stephan Kinsella practices IP law, that proves it’s legitimate; and therefore, to deny it, is self-contradictory or something. But how does my practicing IP prove that it’s legitimate? At most, it could prove that Kinsella himself *believes* it’s legitimate (demonstrated preference or something); but how does the fact that I (apparently) believe something to be justified, mean that it *is*? Etc.

***

Luke:

I consider looking at deeper motives behind arguments quite appropriate as I observed in my article “Questions and Motives” years ago.

Because discussions like this consume so much time, and so frequently involve sophistry, one really has to ask whether a troublesome participant argues in “good faith” or has ulterior, malevolent motives.

So I do not consider accusations of fraud and hypocrisy at all out of place in this forum.

I don’t know how I feel about this as a general matter; I don’t find it that interesting of a question nor one that lends itself to some rigorous analysis… it seems to me that basic rules of civility and courtesy apply, and this is more of an art than a science. But in any case, Tibor posted a thoughtful article on IP; and I tried to comment sincerely and thoughtfully on it. Anyone who thinks that I’ve been “troublesome” or that I have “malevolent motives”–well, let’s just say I disagree, and am not sure it’s worth even debating the matter with such a person. Anyone making this assertion will have to suffer the judgment of their peers–i.e., they’ll lose credibility.

Dennis:

Ad hominem is an inappropriate argument when it involves a fallacy of relevance. �You once smoked crack so nothing you say could have any validity.�

In Stephan�s case, his work is obviously relevant because it clearly implies a lack of genuine conviction.

But this is really not “about me”; if it were, I could go into the internal details of my life and career, were that not so boring and beside the point. It would take a bit more sophistocated understanding of the practice of law and in particular IP law for laymen to even understand the nuances and my “defense,” as it were–if I were on trial.

If anything, to be honest, I could try the opposite tactic–using my authority as IP attorney as part of my argument–that I know more about it than you laymen, so just trust me. I could try to talk over your heads, use inside jargon, etc. I could try to act superior as if I’m better-qualified to opine on these matters, *because* of my experience. But I do not, and indeed to not think any of these things is valid or true. I think your average thinking person is as “qualified” as me and I try to explain things in normal terms where possible, etc. So here I am, arguing in a fair manner, giving my sincere views and trying to discuss an important and interesting issue fairly and rationally, and not resting on my status as IP attorney becaues that could be an illegitimate debating tactic… and then I get accused of the opposite, of being a fraud for not mentioning it loudly enough, or of being a hypocrite for having dissenting opinions about something I know a lot about, blah blah blah. It’s so distracting and tiresome, and pointless. And it’s not the way we would talk to each other at a dinner or cocktail party. Come on.

John:

Why is it not acceptable to you when a rival company commits theft to obtain a design of a drug when those two drug companies don’t have a contract with each other?

Because as a libertarian, indeed as a pro-civilization person, I oppose theft, which is to say, I favor institutionalized respect for property rights. If A breaks into B’s building to learn A’s secrets, it is committing trespass, and ought to be punished. One thing taken into account in punishing is of course the harmful consequences to the victim. Sure.

But it is acceptable that a drug company can stipulate with the sale of every drug that the design of that drug cannot be reproduced, so in essence no other drug company could possibly get the design for that drug without either violating a contract, because afterall how can the rival drug company obtain a copy of the drug without first buying the drug from the rival drug company and thus must abide by the stipulations of that contract, or else simply break into a store or the company’s factory and steal a copy of the drug.

The difficulty here is ensnaring third parties. I believe that to assume the third party is necessarily caught in this web of contracts, you have to presuppose information is ownable, which is question-begging. I explain this in detail in Against Intellectual Property, pp. 33-41. Let’s take a concrete example. Suppose A sells his drug to B, with every contractual stipulation you can think of. B is not permitted to tell anyone about the drug, or let anyone see it or use it unless that person also signs a similar agreement, etc. Okay? fine. But what if B *violates the contract*? Let’s say B erects a billboard on his lawn that displays the formula for the drug. B’s neighbor, see, from his own house, sees the information on the billboard, and thus now knows how to make a drug that does certain useful things. So he starts making this drug, and selling it, cutting into A’s market share. Yes, yes, A can sue B for damages. But can A sue C? On what grounds? What did C do? C never saw the drugs B possessed, never used them, never touched them. There is no possible argument that he was holding “A”‘s property without A’s consent, so he can be ensnared. In this case, C only got knowledge, and he got it by doing nothing illegal or rights violative; he merely peered out of his own window, and saw information displayed in a billboard on his neighbor’s lawn.

Should C now be forced not to act on information he has in his head? Why? On what basis? The only way to argue this is to say that *information* itself — ideas, patterns of information, recipes, designs, whatever — is property. I think this is obviously pernicious, but in any case, it is the question here, so to assume it is question-begging.

Either way through just an added stipulation to a contract, and the recognition that outright theft of a tangible product is banned with or without a contract, we have a de facto recognition of intellectual property rights.

This is not correct, again, as I explain in detail in the paper noted above.

So how can a rival drug company under Stephan’s view of jurisprudence, lawfully reproduce their competitor’s drug? They would either have to break the conditions of a contract when buying the drug product, or they would have to resort to theft to obtain the drug product in order to reproduce it.

Why do you assume this? All the competitor needs is *information*. They need not ever obtain a sample of the first company’s product to be able to recreate it. In fact, information about the drug is publicly avialable–part of the FDA process etc. In a free market surely it would be publicly available so doctors and certifying agencies could inspect it and verify its safety, efficacy, etc. Even if it’s secret, the purpose of the drug is known–what it does. If the competitor reverse engineers it, and comes up w/ basically the same compound as the first one did, to produce the desired effect, they are STOPPED today by patent law. Why should they be, esp. if they independently invent it?

Dennis:

And it certainly is not hypocrisy for a CPA to use his expertise to minimize his client�s losses. Both the CPA and taxpayer are acting consistently with their principles. No one has a choice about whether to pay taxes. Seeking patents is optional, as is the legal work to make it happen. A patent attorney is not helping clients minimize the damage done by a law neither of them likes; he is actively helping clients get the maximum benefit from a law both are free to disregard if they so choose.

If you do not apply for a patent, there are at least two risks. First, a competitor could later file a patent on this and shut you down. Second, you are relatively defenseless if a competitor sues you for infringing its patents. Applying for a patent is a very good way of preventing others from obtaining a patent on the same idea, later. So that is purely defensive. Second, if you obtain an arsenal of patents, it makes others afraid to sue you. They are VERY defensive in nature. Given that the system allows your competitors to obtain patents, it would be self-sacrificial to not obtain your own for defensive purposes.

I must say I am a bit flabbergasted most of my critics here seem unable to grasp this point. Any typical businessperson would have no trouble grasping this argument.

***

Incidentally, to be clear, I agree w/ the 4 main tenets of Objectivism–

  1. Metaphysics: Objective Reality
    2. Epistemology: Reason
    3. Ethics: Self-interest
    4. Politics: Capitalism

So if that makes me an Objectivist, I am one. I also view IP a bit like Rand viewed animal rights. She loved her cat, and said, IIRC, she would love to find a way to justify rights for it, but just couldn’t. Likewise for IP, for me. I have every reason to be open to an argument that IP is justified. I searched for it for years. I have come down against it despite being biased against this.

BTW here’s an interesting note to me from a fellow patent attorney–a senior partner in the patent department of a major national law firm, not even a libertarian; here were his/her honest observations based on his/her long experience in the field:

Stephan, Your letter responding to Joe Hosteny’s comments on Patent Trolls nicely states what I came to realize several years ago, namely, it is unclear that the U.S. Patent System, as currently implemented, necessarily benefits society as a whole. Certainly, it has benefited [Hosteny] and his [partners] and several of their prominent clients, and has put Marshall, Texas on the map; but you really have to wonder if the “tax” placed on industry by the System (and its use of juries or lay judges to make the call on often highly complex technical issues that the parties’ technical experts cannot agree on) is really worth it. Of course, anyone can point to a few start-up companies that, arguably, owe their successes to their patent portfolios; but over the last 35 years, I have observed what would appear to be an ever increasing number of meritless patents, issued by an understaffed and talent-challenged PTO examining group, being used to extract tribute from whole industries. I have had this discussion with a number of clients, including Asian clients, who have been forced to accept our Patent System and the “taxes” it imposes on them as the cost of doing business in the USA. I wish I had the “answer”. I don’t.

I do: scrap the system, and let people compete using only real property rights.

***

Dwyer:

Probably the thing that gives me greatest pause when it comes to rejecting intellectual property rights is that the physical product is less important than the idea behind it.

If Rand writes a novel, what is it exactly that she “produced.” Is it only physical marks on paper? Or is it the story itself, which is not a physical thing? If it’s the story itself, then no one else has a right to reproduce that story and sell it at a profit (without Rand’s permission). If there are no intellectual property rights, then no one can be said to produce an idea. All he or she can be said to produce are physical objects. But this surely distorts the real meaning of “production.”

Bill: your reasoning above presupposes that anything you produce, no matter what it is, is ownable, and thus owned by the creator.

I would agree with you that if a “story” is ownable property, then it has to be owned by the creator. But I think it is not, and the idea that we obtain property rights primarily from acts of creation is flawed, IMO. We do not create property; we acquire it. We make it more valuable by transforming property we already own. The anti-IP view does not say that ideas used to transform property are “less important” than property. It only says that production is not an independent source of rights in the first place. When you produce, you are transforming property–either yours, or someone else’s. If it’s your already, then your production makes it more valuable to you or to some buyer, but doesn’t give you property rights–you already owned the property that you transformed. If you transform someone else’s property, then presumably the owner of that property owns the newly-transformed item.

***

Trager: “Stephan, you’re clearly an intelligent, articulate guy. But I don’t think you agree with the essential principles of Objectivism, even excluding this issue. The reason is that Objectivism explicitly rejects the idea of anarchism, for reasons given by AR in C:UI as well as by Peikoff in OPAR. You obviously already know that, given your association with the Mises Institute, which despises AR and passes up no opportunity to ridicule her and her philosophical adherents (all while relying on the “non-agression principle” that *she* identified and without actually engaging her more fundamental ideas, of course).”

I was not aware that Rand was the one who identified the NAP.

As I noted above, I agree w/ the 4 main tenets of Objectivism, which do not necessitate a view of anarchy v. minarchy.

Malcom: “Interesting thought there, Bill – it is true the notion of production has been heavily influenced by the Marxist notion of it, even among those who disagree with it… [a bad case of subliminal seduction?]”

Actually, it’s kind of Marxian to focus on the right to get rewarded for your labor…

John:

You’re saying that C should not take on any expectation that A may have put conditions on the reproductive rights to their product when they sold the product to B? Or that C shouldn’t cease production once realizing the information they received was not through honest means?

Of course C shouldn’t stop production. D and E won’t! Look: suppose I email you in the very next message, “Hey, John, do you konw, if you combine aspirin, baking soda, and vinegar, it is the BEST headache pill!” And you try it; and sure enough, it works. So you start selling Aspergar Soda for headache relief, and you become a billionaire.

Then you get a letter from some dude who says he is the inventor of that (and he has copious lab books to prove it) and that he told Kinsella only on the condition that he not tell anyone else.

Now: do you give him your billion bucks? Do you stop taking the pill? Do all the people who have a bottle of it at home have to throw it in the toilet?

What if B stole from A an automobile, and then sold it to C? You are saying A can’t make a claim against C that the property he now has was not obtained through an honest transaction and should be returned to the rightful owner A, and if C wishes can sue B for defrauding him?

But the automobile is property; we all agree to this. Is information? That is the question we disagree on.

Teresa: “Atlas thumpers”–that’s a new one on me! funny.

***

Tibor: “This, from Staphan, seems to be ad hoc: “We do not create property; we acquire it.” It may apply to a tree standing in the wild but does it to a desk that’s made from the tree? Even the former is arguably a result of the act of acquisition, a kind of production since it involves thought and action (brining the thing one finds of value under one’s control). But the latter, the making of a desk or table or house or factory from raw materials one has bought or found in the wilds, surely comes under one’s control, becomes one’s property unless someone else has already acquired it. Auden’s poems, Zola’s or Rand’s novels, Gerschwin’s compositions, etc., etc., do very plausibly come to be the property of their creators, no one else’s unless they are made under consignment.”

Tibor, my comment is meant to dispel the notion that creation itself is an independent source of rights; to show that it is neither necessary nor sufficient. I agree there is a creative aspect to all things we do with property, even in acquiring things like trees. Sure. But you don’t create the tree when you fell it; rather, you are by your action (which may indeed be creative, or considered productive) appropriating something that already exists, to your own ownership. Once you own the tree, you apply further creative effort or labor to it to make it into a nice desk; this is productive, sure; your labor has made the desk more valuable (to you, at least). But you already owned the lumber you used, and this is why you own the lumber still, when it’s in the form of a desk.

The problem with saying that the creator of a poem owns it is that this really means that, by virtue of coming up with a creative, useful pattern or arrangement or recipe, you now have a claim on how others can use their own property. Note, you said:

But … the making of a desk or table or house or factory from raw materials one has bought or found in the wilds, surely comes under one’s control, becomes one’s property unless someone else has already acquired it

. This is exactly the problem I have with IP: the property that IP gives you the right to control–others’ tangible property–is already owned and acquired by them. That’s exactly why I oppose IP: I think its posits a new property ownership rule that undermines and is in conflict with the homesteading rule. I own a drug factory. I can use it in any number of ways. Now, you obtain a patent for combining substance A and B. This gives you a veto-right over how I use my own, already-owned, property; it gives you partial ownership of it. Some rights to control my property transfer from me, to you.

***

Luke: “I still do not see a distinction between “an essential political premise of Objectivism” and an “essential principle of Objectivism,” at least not in the almost universal context of humans living together in significant numbers.”

Rand herself said the essentials are:

  1. Metaphysics: Objective Reality
    2. Epistemology: Reason
    3. Ethics: Self-interest
    4. Politics: Capitalism

I grant you that she and other Objectivists think that if you unpack or look closely at point 4, “Capitalism,” that this implies anarchy is bad, and IP rights are good. But as a general matter, Capitalism is meant to refer to a system protecting individual property rights. That is what is essential. Even if Rand thought this, in application, requires IP rights (say), that does not mean this is correct.

JOhn keeps asking me what rights are. I think Rand’s definition is okay, if a bit loose. Another good one is that given by Fr. Sadowsky: “When we say that one has the right to do certain things we mean this and only this, that it would be immoral for another, alone or in combination, to stop him from doing this by the use of physical force or the threat thereof. We do not mean that any use a man makes of his property within the limits set forth is necessarily a moral use.”

There are other good definitions too. I have one in mind myself, but I think it would take us far afield, and to be honest, I don’t think many people here really want to discuss this seriously and civilly. If you can’t even discuss IP civilly, I don’t think you really want to discuss a different conception of rights.

But here is something of interest: Rand:

Whatever may be open to disagreement, there is one act of evil that may not, the act that no man may commit against others and no man may sanction or forgive. So long as men desire to live together, no man may initiate—do you hear me? no man may start—the use of physical force against others.
…
Man’s rights can be violated only by the use of physical force. It is only by means of physical force that one man can deprive another of his life, or enslave him, or rob him, or prevent him from pursuing his own goals, or compel him to act against his own rational judgment.

The precondition of a civilized society is the barring of physical force from social relationships..
…
The concept of a “right” pertains only to action—specifically, to freedom of action. It means freedom from physical compulsion, coercion or interference by other men.

NOtice the emphasis here on initiation of force? How does my making a drug with my own property initiate force against some other guy?

Now, I agree w/ her here. I should be free from the physical compulsion/interference of others who use the state to force me not to use my own property, based on the seemingly irrelevant argument that he thought of a similar way to use his own property, before I did.

***

Mark:

Stephan, I read with interest your posts through #30. I stopped there, because I’m out of time, and also because I got pumped up when I came across your approach to justifying rights, by reference to the “presumption of civilized norms” that supposedly inher in any discussion–an argument employed in various forms by Rothbard, Hans Herman Hoppe, and many others who have been influenced by the contemporary Austrian Economics movement. I think that approach fails, although I need to get more clear to make sure my reasoning is sound. (I came to libertarianism through Austrian economics, so I am sympathetic. But I have criticisms.)

I am going to read a lot more about IP, both your articles and Tibor Machan’s writing about this subject. In the meantime, I just want to say that in reading so far (including your brief remark about the source of individual rights), I repeatedly get the sense that you have incorporated what I consider to be erroneous ideas concerning knowlege and morality. I get the impression that you view this subject through a lens of philosophical agnosticism, even as you declare yourself in support of various moral values, such as voluntary association, capitalism, individual preference, and so forth. In other words, my impression is that you think certain values are objective, but that you erode the foundations of objectivity by hewing to what I suspect are flawed prior ideas.

Mark, thanks for your comments. If you are interested in my on derivation of rights, it can be found in several articles collected here, such as “Punishment and Proportionality: The Estoppel Approach”; “Defending Argumentation Ethics”; “A Libertarian Theory of Punishment and Rights”; “New Rationalist Directions in Libertarian Rights Theory”; and “How We Come To Own Ourselves”.

Let me just note the following about your other suppositions. Objectivist ethics is hypothetical: it rests on someone choosing to live, which itself is a pre-moral choice. Even Rand (I think) would not say you can show someone “ought” to choose to live (since the choice to live (“qua man”) is the basis of ethics); only that, if they do, certain things follow. Why do some men choose to live; others to fail or to reject their potential? I don’t know, but the reason is irrelevant. What is significant is that some do; some don’t. You make the choice, or you don’t. I have a similar view: you either choose to be civilized; or you don’t. Why some do, some don’t, is a separate question, perhaps one of sociolgy, or psychology, or maybe even ethics or biology. I don’t know for sure. But if you do choose to be civilized (like the choice to live), it has certain implications for what other norms are going to be compatible with the values and norms inherent in this choice.

Now, since it is hard to find anyone engaged in a discussion like this who will reject cooperation, reason, peace, society, civilization, then those engaged in these questions will alwyas of necessarily all share and favor some basic civilized norms. From these (by standard economic and libertarian reasoning familiar to all of us) one can easily demonstrate that all proposed socialist ethics or norms are contrary to those civilized norms alreayd presupposed as valid (and this proof by contradiction is similar to the way Rand debunked skepiticism and objections to her basic “axioms”).

I want–you want–to live in a world of cooperation and reason and peace and civilization and society, and interpersonal harmony and universal flourishing. That is what we want. Yes. Is it wanted by all? No. Criminals exist, and always will; even if you show them God’s Ultimate Proof, or Rand’s, or what have you, still, they may disregard them. That is the difference between norms, value, and prescription, on the one hand; and facts and descriptive truths, on the other. So here we have a civilized community of civilized people who all adopt basic civilized norms, including peace, harmony, reason… and we challenge each other to prove to the other why we believe what the other already adopts as a value, or truth. Why? It’s like a member of the Chess Club demanding that fellow member prove why Chess is worthy. It make-a no sense.

***

Bill Dwyer:

Stephan asked,

How does my making a drug with my own property initiate force against some other guy?

It doesn’t, if you didn’t steal the idea from him, but if you did steal it — if you got the idea from him and reproduced the drug without his consent — then you have initiated force against him, because you’ve expropriated his intellectual property.

The question is whether there is IP. UsIng “stealing” presupposes there is, so is question-begging. And what do you mean, “got the idea from” him? We “get our ideas” from countless sources and inspirations, learning and acccumulated knowledge. Let’s say I hear that everyone loves this “aspirin” that Bayer is selling. So I think, hmm, I bet I can make aspirin pills too, and make them better than Bayer. Did I “get the idea” from Bayer? Did I “steal” anything? I never read their patent, and never bought anything. I just *learn that* some people find taking this drug made from aspirin to be useful.

Whether an act constitutes theft or a violation of one’s property rights depends on how one defines property. You cannot define property rights by reference to the initiation of force, if you define the initiation of force by reference to property rights. For example, suppose that I am standing on a plot of land, and you physically remove me from it against my will. Have you initiated force against me? That depends on whether or not you own the land. If you own it and ask me to leave, but I refuse, then you have every right to force me off your property. In that case your action constitutes the retaliatory use of force, not the initiation of force. But suppose that I am the owner of the land. In that case, your forcing me to leave would involve the initiation of force, not retaliatory force.

Exactly. This is the very problem with IP: if your “ownership” of a given recipe *means that* you can stop me from using my own land–my own property and body–as I see fit, then it means you really co-own my land and body. But how did you come to co-own my land and body? I already fully owned them.

The same is true of intellectual property. If I create something on my own without stealing it from you, then even though you thought of it first, I still have a right to it, because I produced it on my own. But if I stole the idea from you, then I am violating your property rights.

But this is question-begging, if you are assuming that my duplicating something I learn about, is stealing. Why is it stealing?

As Rand puts it, “An invention has to be embodied in a physical model before it can be patented;

And, again, Ayn Rand doesn’t know what she is talking about. You do NOT have to “reduce the invention to practice” — embody it in a physical model — before it can be patented. She is completely wrong. You can have an idea sitting at your desk, write it up, file it, and boom, you’re done. Filing is called “constructive reduction to practice.”

a story has to be written or printed.

This is true, but so what?

But what the patent or copy right protects is not the physical object as such, but the idea which it embodies.

It protects it *by giving the author/inventor partical ownership rights in other’s already-owned property*. This is the very problem with it.

By forbidding an unauthorized reproduction of the object,

PATENT LAW DOES NOT FORBID REPRODUCTION. It has nothing to do with reproduction. It does not assume that the “thief” as you call it has access to the original idea or invented object. This is copyright law. Laymen who think you can use a copyright-like concept to implement a patent system seem to have no clue as to what they are talking about.

the law declares, in effect, that the physical labor of copying is not the source of the object’s value, that that value is created by the originator of the idea and may not be used without his consent;

Let me make sure I understand you here: are you saying that there is a property right in the value of an object? Is this what you are saying?

Stephan, you don’t deny someone the right to determine the conditions on which he is willing to sell his product, do you? Isn’t that all a patent or copyright does?

Absolutely not. Patent and copyright are NOT based on the idea of contract. If they were, they could not bind third parties.

No one is forced to apply for a patent or copyright; one may give one’s idea away, if one chooses.

Are you sure about this? How do you “give away” the copyright that federal law automatically grants you in something? To give an analogy–you have a right to apply for social security when you retire, and you have a right to sue someone for racial discrmination. Both of these rights are illegitimate, of coures, but you are granted them by the feds. How would you “give them away”? Is there an official bureau of rights-relinquishment that I don’t know about? In fact, as far as I know, it’s not easy to “give away” your copyright–that is, to dedicate something to the public domain. Federal law GIVES YOU a copyright as soon as you fix an original work of authorship in a tangible medium of expression. No registration, filing, or even coypright notice is needed. If you do nothing, you have a copyright. How do you stop this? Don’t put a notice? Don’t register? That doesn’t matter. What if you put a notice, “I renounce my copyright”–? So what? This is ineffective–there is no contract, no consideration.

But if one want’s to establish the condition that it may only be used privately and not for commercial reproduction, then a patent or copyright helps to make that condition public knowledge.

A condition is a condition of a bilateral contract. But patent and copyright bind third parties, even those who had no notice.

I do think Rand is wrong to deny an inventor the right to his invention, just because someone else happened to invent the same thing and to beat him to the patent office by a few minutes. He has a right to it if he produced it, even if someone else did so before he did.

This is a good critique of Rand, but I am not sure if you realize how devastating this little exception would be to the patent system. There is a reason that most pro-patent types would froth at the mouth and fight you tooth and nail for suggesting such a change to the patent system. You would get accused of hating small inventors and innovation, etc.–the same kind of stuff I get from your side.

Suppose you insert into patent law an exception for prior users, or independent inventors. So what’s going to happen? If I had a company I would tell all my engineers to NEVER read the patent database; I would establish a policy to prohibit this. I would spend money (wasted!) to have a verifiable “clean room” procedure for innovations, similar to what is often done now in the copyright/software context (where the coders program in isolation, with no access to other material, so that if the program they produce has some similarities to an existing product, they can prove they didn’t have “access” to it, and did not “reproduce” it–this is a defense in copyright, but not patent, b/c copyright infringement requires some kind of reproduction of another’s work, and thus proof that there was “access” to it). So you would have everyone running around covering their eyes, trying NOT to learn what others have done, out of fear of being unable to prove they independently invented something. All so they could preserve a defense against patent infringement. The patent proponents would hate this measure b/c it would basically gut the patent system (albeit, at a huge deadweight cost of all these companies having to cultivate intentional ignorance and establish clean room procedures). Moreover, the patent system has two main (utilitarian) purposes: the encourage invention disclosure (the filing of a patent application that becomes public), and also to encourage innovation by giving you a limited monopoly on it. If people are trying to AVOID reading the patent database so as to establish the lack-of-access/lack-of-copying defense you propose, then that defeats the primary purpose of the patent system; there is no way in hell this proposal would ever pass, or is in any way compatible with the patent system.

What I am saying is that the idea of an independent inventor defense is contrary to the entire idea of a patent system. So in recognizing the need for this defense, I think you are starting to see how problematic any real-world patent system really is.

***

Mark:

Stephan, Thanks for your carefully thought out response. I am highly interested in argumentation ethics as advocated by contemporary Austrians, partly because grasping the subject is fun, and also because I am curious as to whether or not more than one justification of moral norms is possible. In other words, is the objectivist explanation for the source and nature of personal moral values, upon which is erected the case for ethical norms, the only possible approach to proving objective moral values? Or is the Austrian approach a sort of shorthand logical process that reveals contradictions that inher in any denial of proper moral norms? I actually don’t know. I have thought that the Austrian short cut failed, but I need to really think about this methodically to try to become clear. So I’ll read your articles.

Mark, thanks. While my approach uses some Austrian insights, I am not sure I would say my approach to justifying rights is really part of Austrian economics (Hoppe’s argumentation ethics is more Austrian-ish, but even it is an ethical, not ecnonomic, theory). Be sure to consider Hoppe’s “argumentation ethics” approach too (which is described by me in the articles I linked before). Some of the reasoning inherent in my “estoppel” approach and also in Hoppe’s Arg ethics can be found in insights of well-known thinkers over the centuries — take a look at the ones collected here: Quotes on the Logic of Liberty.

… I think I grasp the abstract ideas from which some of your commentary flows, as for example your comments about the alleged “non-scarcity” of ideas. My thinking about this alleged “non-scarcity” is at odds with yours. I assume your claim that ideas are not scarce reflects the Austrian idea that thoughts reflect the subjective mental value scale of utility maximizing actors. That is, from the viewpoint of praxeology, ideas and thoughts are morally neutral because subjective choice is morally neutral. Thoughts are essentially interchangeable, in the sense that one’s subjective output is as morally insignificant as another’s subjective output; and since thoughts are “fungible” (in that none is morally superior to another, from the standpoint of praxeology), ideas are therefore unlimited in quantity, produced by individuals as easily as breathing in and out. Ideas are therefore “non-scarce”.

No; to me scarcity is simply an economic concept–it basically means rivalrous. An idea is non-rivalrous (non-scarce) because my use of it does not deprive you of your use of it; it is not exhausted. A scarce resource, by contrast, by its nature as scarce good, can’t be used simultaneously by multiple people; my use excludes yours. If I take your banana from you, you no longer have it. If my taking your banana did not deprive you of your banana–if I somehow looked at your banana and conjured up a duplicate in my hands, it woudl not interfere with your having and using your banana. It is theft for me to take it precisely because it is “scarce” (rivalrous). By contrast, if you have a way of planting corn that makes more corn, and I imitate this method in planting my own corn, it doesn’t “take” (or “steal”) your method from you–you can still use your method to plant your corn.

For more elaboration on the role of “scarcity” to property rights, see Hoppe’s The Ethics and Economics of Private Property; and his Theory of Socialism and Capitalism, chapters 1 and 2, esp. pp. 5-6 & 8-18, discussing notions of scarcity, aggression, property, norms, and justification. See also my Defending Argumentation Ethics, esp. the section “Objective Links: First Use, Verbal Claims, and the Prior-Later Distinction”, and The Essence of Libertarianism? and Thoughts on Intellectual Property, Scarcity, Labor-ownership, Metaphors, and Lockean Homesteading.

From Trademark and Fraud:

Wladimir Kraus writes:

Putting aside the problem of consequences/utility for the moment, the fundamental question, as it appears to me, is whether the existence of rights to intellectual property constitutes violation of legitimate interests, or rights, of other people. If it were not so, there would indeed exist no grounds to oppose them.

For example, so-called “positive” rights to health care or education ultimately come into conflict with so-called “negative” rights of those who will be forced to provide them. The problem of political philosophy is to establish which one of the two constitutes the actual, legitimate, true rights and which, consequently, must be viewed as a mere violation of true rights.

While I would argue that there’s a conflict between “positive” rights of individual A and “negative” rights of individual B, no conflict exists between “negative” rights of A and B.

For example, the fact that I have a right to my physical body and to products of my labor, directly or via voluntary exchange, does not violate or diminish any rights of other people. The principle is nicely stated in the maxim that if the rational self-interest is the basis of social interactions no conflicts of interests are involved. Indeed, enormous gains to all are to be expected if negative rights of individuals are observed consistently.

Applied to the case of IP rights, it follows that if and only if their inherent harmful nature can be established, then and only then their existence may be condemned.

I believe that at the root of present controversy stand two opposing theories of property rights: the “scarcity” based theory of property as developed by Rothbard, Hoppe et al., on the one hand, and Ayn Rand’s, for lack of a better word, “creationist” theory of property rights, on the other.

It appears that the problem of IP rights is a particularly good instance to test each of the two theories because this particular problem highlights the differences so sharply.

The fundamental question is what is the source of rights? Is it mere scarcity of resources and therefore the need to avoid conflicts that supposedly arise from the fact of scarcity, or is the source rather the recognition of the fact that in order to survive and achieve happiness in the context of interpersonal relationships, i.e. society, man needs knowledge that would tell him what is he to do if his goal is to survive and achieve happiness in society.

I believe that Ayn Rand’s derivation of the concept of right is much more in accordance with the facts of reality and man’s requirements to survive and achieve happiness than the alternative is.

In regards to IP, therefore, the first question we need to answer is whether IP rights belong to the broad category of “positive” or to the category “negative” rights, and why.

Any comments?

Well, let me say that in a way I agree–one source of disagreement lies in differences over whether rights come from scarcity, or from “creation” (Rand’s “man’s needs” type of argument).

I’ve tried to show that it’s a mistake to think of creation as a source of ownership of property. Often it’s said that you can find/appropriate something, create it, or buy/receive it from a previous owner. But “creation” is not really a third way of acquiring ownership. In fact, it’s neither necessary nor sufficient. Appropriation of unowned goods, and contractual acquisition of goods from previous owners, are the only ways to acquire property rights in things. I discuss this in detail in the section “Creation vs. Scarcity” et pass. of Against Intellectual Property. Also, note that if you say that we have property rights to “things we create,” you indeed open the door to a horrible pandora’s box of things that people have monopolistic rights to, which would entangle and ensnare all use of scarce resources, thus leading to the entire human race dying out. See, e.g., the examples of Galambos and Schulman, noted in my article, who advocate protection of a very broad range of mentally “created” patterns, ideas, “logos,” what have you.

Tibor Machan has alluded to this in some of his writings, where he basically wants to say that there are all kinds of “things” that “exist”–poems, trucks, etc.–and since “The tangible-intangible distinction is not a good one for what can and cannot be owned”, then we need to focus on “intentionality”–things we intentionally create or produce, whether they be “tangible” or “intangible”–indeed, intangible things like poems, computer games/programs, novels, songs, arrangements, etc. are more completely “intentional” and “created” than are tangible goods. I.e., Machan’s theory seems to be that any “ontological type of thing” that we can identify, and that was intentionally created or produced by man, is owned by man. For more on this, see: New Working Paper: Machan on IP; also see the criticism and discussion in the comments (e.g., those of Carl Johan Petrus Ridenfeldt at November 30, 2006 4:59 PM); see also Owning Thoughts and Labor and related comment thread; and the comments in The Copyright/Baseball Analogy. I think if you review the criticisms of Machan’s view here (and my discussion of “Creation v. Scarcity” in my longer paper noted above), you’ll begin to see the magnitude of problems that accompany looking at property in this way.

Published: November 9, 2007 4:23 PM

***

Archived comments (p1; 61 comment version):

{ 65 comments… read them below or add one }

Lord Buzungulus, Bringer of the Purple Light November 16, 2009 at 5:01 pm

Brilliant point about viewing value as a verb as opposed to a noun. On a side note, I believe this is the essence of von Mises’ calculation argument: as value is not a thing or an entity, there can be no calculations in terms of value (as opposed to calculation in terms of money prices). See Huelsmann’s discussion of this in his biography of Mises. In this regard, the Randians are closer to the neoclassicists than the Austrians.

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Silas Barta November 16, 2009 at 5:18 pm

She should have realized that this means there cannot be property rights in value since this would have to mean property rights in arrangements or patterns, which would then give the owner of the arrangement rights in other people’s already-owned property.

Yeah! Right on! That would be ridiculous! It would be like having a right to tell people what they can use for the settings on their radio transmitter! Hey — they OWN the transmitter. The issue is resolved! How can anyone possibly tell them they can’t transmit at this or that frequency. Property rights mean you can be told what to do with your transmitter!.

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Ty November 16, 2009 at 5:48 pm

Silas,

You do whatever you want with a radio transmitter as long as you don’t violate someone’s homesteaded frequency. By your logic, why don’t we just ram our cars into each other since no one owns the paths our cars are taking? Or maybe we can agree to share the limited pathways the cars can take and not overlap simultaneous use of those pathways.

What is the principle that allows overlapping use of radio but not crashing cars into each other?

Or am I just not understanding what you are saying?

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Ty November 16, 2009 at 5:49 pm

As far as IP goes, who do I make the check out to for inventing Fire? I use that almost everyday in one form or another. I would feel guilty if I wasn’t paying a licensing fee.

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Silas Barta November 16, 2009 at 5:59 pm

How is crashing into someone’s car like broadcasting at the same frequency? What gives you the right to receive information over the EM spectrum? Why can’t you and I just be content to overlap each other?

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Lord Buzungulus, Bringer of the Purple Light November 16, 2009 at 7:07 pm

Silas Barta is the intellectual equivalent of a child molester.

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Ribald November 16, 2009 at 7:30 pm

Ty,

Presumably, people would not attempt to share the same paths on the road because their cars would get totaled. In the same vein, I think Silas made the implicit assumption that this would translate into the frequency spectrum as well, so that those with transmitters would avoid unnecessary interference by choosing different frequencies.

That assumption may or may not be correct (one can imagine interference being used to monopolize radio communications, for instance). In the same vein, someone might find advantage in blocking certain roads.

Can frequencies can be homesteaded, as land and roads can be? My view is that they can’t be, although a good case can still be made that interference is a violation of someone’s property rights (because someone else’s photons are harming the functioning of your receiver).

The controversy lies, I think, primarily in the fact that interference does not cause material damage while causing devices to function poorly (how can it be bad if nobody/nothing gets hurt?). If it did, everyone would be in absolute agreement.

Does inhibiting the function of someone’s devices constitute property damage by itself? On the one hand, a device can only potentially produce some good, and a potential something is non existent, so preventing a device from producing something is not itself enough. On the other hand, a person has the right to use his belongings, and the products of their use are arguably inseparable from their use. I feel that the latter is closer to the truth, if only for the fact that it seems to be the norm when it comes to the issue of inhibition of functionality (what devices are ok to inhibit?).

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Lord Buzungulus, Bringer of the Purple Light November 16, 2009 at 7:35 pm

“Why can’t you and I just be content to overlap each other?”

Silas, you dumb-shit, aren’t you even faintly aware of the prior-later distinction that underlies the theory of property rights that libertarians like Kinsella espouse? Maybe you would disagree with it, but to be ignorant of it (or to feign ignorance of it) in this discussion is appaling. Here’s the answer to your question: one of the broadcasters broadcasts first, therefore his claim to broadcast at that frequency trumps subsequent would-be broadcasters. It is precisely in this sense that the EM spectrum is scarce, and hence ownable. Do your goddamn homework, you asshole.

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newson November 16, 2009 at 8:00 pm

silas barta says:
“Why can’t you and I just be content to overlap each other?

when you emit audible frequency by talking, you don’t homestead that frequency, and others don’t have to observe silence (except when on your land).

good manners determine who talks and who is silent; or maybe we’re all boors and all talk at once, and don’t listen to each other. only when audible noise causes physical harm or nuisance (shouting in the middle of the night) do there exist grounds for an action in tort (no legislation required). freedom of speech is not a licence for waking the neighbourhood.

if audible frequencies are not ownable, why are em transmissions different in principle?

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Bala November 16, 2009 at 8:07 pm

I have posted this earlier in another discussion thread, but thought it better to reproduce the relevant parts rather than reinvent the wheel (I’m copying from myself :) ). I am also posting this because I think Stephan is still nowhere close to an argument that could convince an Objectivist who reads this article. So, I am trying to put across what made me (a self-proclaimed Objectivist) reject Rand’s concept of IP (while continuing to be a self-proclaimed Objectivist).

My attempt is to show that starting from the basic premises of Objectivism can only lead one to reject the concept of IP and hence conclude that Rand was wrong to treat IP the way she did.

Actually, IMHO the problem faced by most people who call themselves Objectivists is the failure to see that Rand made a mistake on IP. In my assessment, her position on IP contradicts her own concept of Individual Rights.

Ayn Rand defined Morality as a code of values. As per Rand, the highest value to any man is his Life. Life is a sequence of self-generated and self-sustaining actions. The purpose of life is life.

To sustain life, man, like every other living being, needs to act. Since man’s concepts and values are not automatic, he needs to form them using his rational mind. The concepts and values thus formed help man identify the best course of action under any circumstance. The end result of this process of concept formation and thinking is action. The purpose of such action is to seek value – value that sustains his life.

To sustain his life qua man, man needs two fundamental conditions to be satisfied
1. The Liberty to form concepts based on the percepts he receives from his environment and
2. The Liberty to act on his choices
Preventing him from doing either of these is to condemn him to death.

The only way to infringe upon a man’s Liberty is to initiate force on him. Thus does the principle of “non-initiation of force” originate.

The concept of Liberty has a “positive” and “negative” aspect. The “positive” aspect is that a man may undertake any action as long as he is not initiating force against another man. The “negative” aspect is that others may not initiate force against him. This is the moral and political concept of Liberty.

The concept of property logically derives from the principle of Liberty thus outlined. Man is at liberty to seek the values he chooses either by gathering or by producing. As long as he is not initiating force against another man, no one may prevent him from doing so. Once he has acquired these values, there is only two ways to take the value away from him.

1. Trade with him – give him some other value in exchange for the value he has
2. Initiate force against him to make him give up the value for nothing or for some thing of less value

The former is moral because it preserves his Liberty. The latter is immoral because it is an infringement of his Liberty.

This, IMO, is the moral concept of Property Rights – not from labour; not from creation or anything else similar. The concept of Property is the recognition that initiation of force is not a proper means of dealing with other men.

Rand also said “Law is a means of subordinating society to Moral Law”. While this is a very nice statement, what she (IMO) missed out is that society to a man is just a certain number of other individuals and that the ONLY Moral Law that others need to follow with respect to an individual is to refrain from initiating force against him. She herself said that no man has any obligation to another other than respecting his individual rights.

In other words, the only Law that man needs is one that ensures that others do not infringe upon his Liberty and that if they do so, they will not get away with it. No law may be promulgated that violates individual liberty of those who have not violated that of others, even if it may claim to protect certain other rights.

Specifically on the point of Intellectual Property and the “copying” of inventions, Rand’s error was fundamentally to ignore the simple (though not obvious) point that in forming a concept, man is not initiating force against anyone else. This error is especially intriguing, coming from a person who have given a very sound epistemology of reason in her book “Introduction to Objectivist Epistemology”.

For instance, if you come up with an invention, incorporate it in a product and then sell the product to me, the first thing that happens is that the product becomes my property. When I subsequently study that product, I am not initiating force against you because I am engaging in a study of my own property. If in the process, I form the concept of how your invention works, I am completely at liberty to do so because I am acting as per my nature as man – a rational animal with a volitional consciousness seeking to organise his percepts into an intelligible system of interrelated concepts. If I then choose to give physical shape to the concept by arranging materials (which I procure by trading with those that have them, thus making them my property) suitably, I am being morally correct because surviving by producing value for consumption and trading is moral; it is the natural state of man.

The concept of IP seeks to hold as punishable, the act of forming concepts and acting on such concepts even though the process does not involve any initiation of force by the individual on any one else, least of all on the person who “produced” the idea. By seeking to initiate force on such men to restrain them from being human, it is a gross violation of their Right to Liberty.

To claim otherwise is either an error of omission (that goes for Rand) or an error brought on by a deliberate evasion of reality.

In sum, even if one uses Ayn Rand’s conception of Individual Rights, IP is an abomination because it is antithetical to the concept of Liberty.

A very simple inequality is very useful to condense my argument. The 3 key Individual Rights can be ranked on a scale of importance as

Right to Life > Right to Liberty > Right to Property.

This is a very simple inequality to understand. A look at the structure of the penal systems followed in civilised societies will give us a hint that this is indeed already implicitly accepted world over. Simple crimes are punishable with fines (loss of Property). Graver ones are punishable with imprisonment (loss of Liberty). The gravest ones are punishable with death (Loss of Life).

Individuals practice it too. When faced with a choice between Liberty and Property, people mostly choose Liberty (when people choose to give up wealth or the opportunity to seek it to fight for Liberty). When forced to choose between Life and either Liberty or Property, people choose Life unless not acting otherwise can lead to a painful life with no scope of Liberty ever in their life-time – An example is rich people leaving a lot of their wealth behind and fleeing for their life.

Thus, the only correct position (IMO) for an Objectivist to take is anti-IP.

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Silas Barta November 16, 2009 at 8:32 pm

Could a moderator PLEASE delete Lord Buzungulus’s comments? Those are the very definition of what is not wanted here.

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Bala November 16, 2009 at 8:34 pm

In fact, there is another simple way to understand why Rand was wrong on IP.

As per Rand, all Rights are Right to action. There is no such thing as the Right to a value or a thing. IP, on the other hand, is all about the Right to a “thing”.

The Right to “exclude” others when applied to IP is a right to violate their Liberty. Violation of Liberty is tantamount to enslavement. As per Rand, however, there can be no such thing as a ‘Right to enslave” coexisting with a “Right to Liberty” – Reality abhors contradictions. How can an Objectivist then reconcile IP with Individual Rights? IMO, never or by evading reality, i.e., by ceasing to be an Objectivist.

p.s. Applying the “Right to exclude” to physical property is different because it would translate into a retaliatory use of force – an attempt to take away physical property without the owner’s consent necessarily requires the initiation of force.

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Lord Buzungulus, Bringer of the Purple Light November 16, 2009 at 8:38 pm

Actually, Silas, you’re a shining example of what’s not wanted here. Enough of your internet stalking.

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T. Ralph Kays November 16, 2009 at 8:38 pm

Silas Barta

I find ALL of Lord Buzungulus’s comments interesting and enlightening, yours however…..not so much, to put it politely.

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Lysander November 16, 2009 at 11:41 pm

Kinsella writes:
“She should have realized that this means there cannot be property rights in value since this would have to mean property rights in arrangements or patterns, which would then give the owner of the arrangement rights in other people’s already-owned property.”

Nonsense. You cannot lay claim to ownership of an arrangement or pattern if that pattern already occurs in other people’s property, because you would not then have the prior claim.

In its most fundamental form, the claim to copyright is a claim to a pattern. Books, photographs and movies in digital form are bit-patterns. A chromosome is a DNA pattern.

Of course there should not be property rights in “values”. Rand never said it, never implied it. Straw man.

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Seattle November 17, 2009 at 1:18 am

A point that I think should be made with regards to “Property Rights.”

Property Rights don’t “exist” in the objective sense. When you lay claim to a piece of property, an “Ownership Particle” doesn’t entangle itself with it to solidify your claim.

Property Rights, and by extension all “rights” are human constructions. And, like all human constructions, they only exist to the extent people believe in and respect them.

With the exception of some certain State actors, people tend to respect and believe in property rights a lot. Why do they do this? Because property rights work.

Why do property rights work? Because of scarcity with regards to physical objects. There has been more than enough discussion as to why this is, but the important thing to remember is there’s no such thing as scarcity with regard to ideas.

It is THIS reason that IP “rights” should be abandoned and, in a free market would be, because simply they do not work! It doesn’t make any logical sense to apply a solution to a problem that doesn’t exist.

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Bala November 17, 2009 at 2:07 am

Lysander,

” Nonsense. You cannot lay claim to ownership of an arrangement or pattern if that pattern already occurs in other people’s property, because you would not then have the prior claim. ”

You have misunderstood Stephan and I am responding because I expect him to respond as harshly as you have done.

Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it, even though my doing so does not require any initiation of force against you by me. Preventing a person from acting as per the assessment of his rational mind can only be achieved by the initiation of force, thus violating his Liberty. Thus, your Right to your IP necessarily depends, for its implementation, on violation of my rights to Liberty and my right to property (which I may have owned owned before you even staked claim to the pattern under question). This is what he is objecting to.

Assuming that you are talking from the Objectivist view of IP, how do you reconcile the inherent conflict between one person’s IP and another person’s Rights to Liberty and Property? IMO, you cannot.

Further, from a very Objectivist point of view, IP constitutes a claim of a “Right to an object”, something Rand objected to very strongly. In Rand’s own view, all rights are rights to action. Thus, IP contradicts the Objectivist concept of Individual Rights.

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Peter Surda November 17, 2009 at 6:41 am

@Silas:
Kindly respond to the objections wrote about with regards to your arguments.

I can state it again, this time using Stephan’s quote of Hoppe: property rights are violated when the integrity is damaged. If you send a signal over a frequency that is already used by someone, it damages the integrity of that other signal. Even if you use compatible encodings, it decreases the bandwidth available to the other person. This is a measurable phenomenon and doesn’t require any concept of value and is valid regardless of the rights being recognised by anyone. It doesn’t even depend on people existing at all. If there were for example two robots communicating and a sun eruption would disturb the signal, the signal would still be disrupted.

On the other hand, there is no equivalent phenomenon in IP. There is no integrity damage that can be measured. You can only measure changes of value, which you obviously cannot own. And the “violations” are very closely tied to the rights being recognised by other people. If noone (including the author/inventor) recognises IP, there is simply no violation/disturbance whatsoever.

Cheers,
Peter

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 6:58 am

Lysander writes:

“In its most fundamental form, the claim to copyright is a claim to a pattern.”

How can someone claim a pattern? If you arrange factors of production into a particular pattern, and I arrange different (but validly owned) factors into the same pattern, where’s the conflict? There is nothing you could do with your factors prior to my identical arrangement, that you can’t do after my copying. You can still, e.g., use your factors for your own personal enjoyment, my copying prevents that in no way. I’m guessing, then, that what you mean is that if you planned to sell the output of those factors, then my copying induces competition for your output. That’s true, but so what? You have no right to revenue on the market; you are still free to *try* to sell your wares, either before or after a copier comes along. In no sense is there conflict between the scarce objects here, the real property: namely, the factors of production. Ultimately, non-utilitarian defenders of IP do support rights in value, I would say.

Peter Surda:

You’re gonna be waiting a long time for a response from Silas. He does nothing more than come here like a small child and squeal about he’s (alledgedly) found an inconsistency in Kinsella’s position. A total tool.

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ktibuk November 17, 2009 at 7:44 am

A drunk woman has passed out. Deep a sleep. Some guy comes and has sexual intercourse with her.

There is no physical damage to the woman.

There is no conflict arising from scarcity of the physical, the body, since the woman has passed out and not using her body at the time.

Prove that this is an act of aggression and a crime using the same premises used to argue against IP.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 7:51 am

ktibuk,

Are you completely deranged? Of course the woman in your example is using her body, whether she’s sleeping or not.

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Josh November 17, 2009 at 8:31 am

Silas’ point is well taken – it’s not easy to come up with an airtight definitions of “property”. Clearly “intellectual property” is over the line, but do you own the right to an EM frequency when you “homestead” it by transmitting information on it for the first time? I’d say no, but it’s an interesting question, and posts (like Buzungulus’ first in this thread) that consist entirely of ad hominem attacks merely detract from the discussion.

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Lysander November 17, 2009 at 8:41 am

Bala writes:
“Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it”

If you are referring to potential rather than existing patterns, then the question is not one of more or less liberty, but of whose property rights should take priority. If you accept, as I do, that intellectual property exists, then I am infringing the author’s property-rights by copying his patterns.

Your view is that each claim to ownership of a pattern restricts my liberty to do what I may with my property. I acknowledge the restriction, but I regard it as reasonable because the patterns could never have come into existence without their authors.

I accepted the restrictions on the potential abuse of my property when I bought it. I didn’t buy blank DVDs to bootleg films any more than I bought my gun to shoot my friends.

I also believe that homesteading does not confer an unfettered right to pattern-replication. For when you establish a homestead by developing a property, you do not thereby lay claim to all potential uses to which the land might be put.

If, for example, I develop land for farming, I do not thereby acquire rights to its airspace, or to its mineral rights, or to its airwaves, even if the technologies that use them were invented after I bought the land. The reason is that they are outside the scope of my homestead.

In each case we have conflicting claims. The claim to airspace, the claim to minerals, the claim to airwaves, the claim to patterns. In Mises’s words, “this is a problem of delimitation of property rights”. I do not think the problem can be decided by appeal to “natural” rights. Nor can it be decided by statistics, which can be bandied about endlessly. I think that the issue can be decided only by a priori argument based on utilitarian considerations.

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Lysander November 17, 2009 at 8:43 am

Lord Buzungulus writes:
If you arrange factors of production into a particular pattern, and I arrange different (but validly owned) factors into the same pattern, where’s the conflict?

If you spend millions designing an automated factory, and someone else copies your blueprint, they can undercut you in the market. They do not have a huge R&D budget to factor into the price of the final product. They can send you broke.

Is the consumer better off? Yes, in the short term. No, in the long term. R&D won’t be worth the candle.

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Silas Barta November 17, 2009 at 8:59 am

@T._Ralph_Kays:

I find ALL of Lord Buzungulus’s comments interesting and enlightening, yours however…..not so much, to put it politely.

Really? Even the one that did nothing but compare me to a child molester?

@Peter_Surda: I’ve addressed this point several times, so you already have an answer, but as usual, I’ll answer its latest manifestation.

property rights are violated when the integrity is damaged. If you send a signal over a frequency that is already used by someone, it damages the integrity of that other signal.

You have switched the sense in which you use the term “integrity is damaged” when applying it to this context, so the argument doesn’t carry over. “Damaging the integrity of a radio signal” is not the same as damaging the integrity of physical goods. As I explained on my blog, a radio signal’s “integrity” is only destroyed because some abstract assumption — relied-upon to communicate — is violated. It’s no different than if I started hitting a gong at a time when your friends were expecting no one else but them to hit a gong.

If you can have a right to this non-physical kind of integrity — the “integrity of assumptions remaining valid” — then you can have IP rights.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 9:03 am

Josh, you’ll see that my first post here (the first one in the thread) addressed value theory, not Silas. Re. ad hominem attacks, hey, if the shoe fits. Just adopting the libertarian standard of proportionality here.

Lysander’s scare stories about bankrupting inventors is totally irrelevant. Plainly lots of market actions can put people out of business; so what? No one has a right to collect money on the market, that’s the whole point of competition.

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Stephan Kinsella November 17, 2009 at 9:49 am

“Lysander”:

Bala writes: “Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it”

If you are referring to potential rather than existing patterns, then the question is not one of more or less liberty, but of whose property rights should take priority. If you accept, as I do, that intellectual property exists, then I am infringing the author’s property-rights by copying his patterns.

But patent rights do not require you to copy the innovator’s pattern. It only requires that the pattern you use (or method, recipe, technique, design) be similar to what the patentee has described in a document filed with the government. You may have independently invented the pattern. In fact, you may have invented it before the patentee. Still, if you use your own property in the way described in the patent, you are infringing the patent.

This is part of the problem: ignorant laymen libertarians pontificate about some vaguely described IP system. When you point out a particular application of it is unjust, they back down and say, “Well, well, of course, I don’t support that.” So… what do they support? Who knows. They can’t tell you. They can’t describe the system they support–after all, they’re not experts. They just think “innovation” should be “protected”.

For example if the nym Lysander here says that copying should have to be shown, he is unwittingly supporting an amendment to the existing patent system that would largely gut it–there is a reason that all the normal, mainstream advocates of the patent system would fight this change tooth and nail–because they understand the patent system, unlike ignorant libertarians who feel compelled to weigh in vociferously on something they know little about.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 9:57 am

Silas,

I did not compare you to a child molester. I said you were the intellectual equivalent of a child molester: a foul corrupter of youthful minds, who lacks any sense of decency.

Hope that clarifies things.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 10:52 am

Here’s a question for all those (e.g., Lysander) who are so worried about inventors being “undercut” on the market by copiers: won’t inventors also be harmed, monetarily speaking, if consumers refuse to buy their products? Putting out a product no one wants can send a lot of R&D dollars down the drain.

Here’s my question: if you’re so concerned about inventors, why not force consumers to buy their products in the first place?

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snargles November 17, 2009 at 11:13 am

@ Silas:

The gong example is convoluted. Wavelengths can fit the definition of physical property rights because they are physical things! This goes for EM as well as all gongs. If someone hits a gong at you, they are inhibiting your physical enjoyment of your real property, your land! If however, they are shooting EM waves over your property, they are not.

If someone is the first to transmit over a specific frequency over an area, they can raise revenue from advertisers. Since it is mutually exclusive, an owner of a transmitter who would transmit over the same frequency and area, would negatively effect the revenue generating ability of the original transmitter, thus effecting his claim to a physical property right.

IP is none of this, and shouldn’t exist.

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Silas Barta November 17, 2009 at 11:45 am

@snargles: You’re putting too much emphasis on the nuisance aspect of the gong. For purposes of the example, assume that, by the time the gong hits other properties, it’s relatively quiet and below nuisance level, but still audible if you listen for it. In that case, it does contain information but does not inhibit the enjoyment of others property.

Can people claim the right to inhibit others from interfering with their tradition of being the only gong-hitter at 8am? If not, neither can you inhibit others from interfering with your tradition of being the only one injecting information into a given frequency.

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Silas Barta November 17, 2009 at 11:47 am

@Lord_Buzungulus,_Bringer_of_the_Purple_Light:

I’ll respond to your challenge as soon as your uncivil posts are deleted. So please delete them.

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snargles November 17, 2009 at 11:53 am

@ Silas:

The nuissance of the gong is not relevant. If it affects how people can enjoy their property then it is a violation of property rights.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 11:54 am

Not sure there’s much point to this, but:

“Can people claim the right to inhibit others from interfering with their tradition of being the only gong-hitter at 8am?”

Obviously, it depends. Since few people want to deal with such annoyances, they typically craft things like restrictive convenants governing what people can do with their property in a communal setting, e.g., no gong-banging early in the morning.

“If not, neither can you inhibit others from interfering with your tradition of being the only one injecting information into a given frequency.”

Obviously (again), the issue here doesn’t concern tradition, it concerns who was the first injector, and why his rights (to inject) trump those of second, third, etc. injectors.

I now understand why Kinsella has to spend half of his papers on IP spelling out rudimentary issues of property rights.

When you grow up Silas, maybe you’ll realize that word games with bad analogies (like conflating tradition with first-use) don’t constitute a coherent argument.

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Silas Barta November 17, 2009 at 12:04 pm

@snargles: The nuissance of the gong is not relevant. If it affects how people can enjoy their property then it is a violation of property rights.

And the copying of ideas doesn’t affect how people can enjoy their property…?

@Lord_Buzungulus,_Bringer_of_the_Purple_Light: Again, delete your incivil comments and we can talk, Stephan.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 12:08 pm

Silas, I’m not Stephan. I am Lord Buzungulus. Please, learn my name.

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Stephan Kinsella November 17, 2009 at 12:11 pm

Silas, Lord B can’t “delete” his comments. I can.

I am not Lord B–I don’t do nyms, unlike you, John Sharp, Richard Harding, Person.

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snargles November 17, 2009 at 12:14 pm

@ Silas

“And the copying of ideas doesn’t affect how people can enjoy their property…?”

Positively, it does, it positively affects how people use their property. But only if they choose to copy, what to copy, and how to copy can you determine the benefits they will receive.

Using this as a way to justify IP is ridiculous. The person IP supposedly protects is the copied person, and he is in every case unaffected. You’re in some very murky water here.

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Stephan Kinsella November 17, 2009 at 12:15 pm

You know, Lord B is making a lot of sense. Amazing I agree with him so much. Since, you know, Silas, I’m, like, not him. I mean, if I was him, would I have a little back and forth with myself like this? Wouldn’t I be able to predict what “I” was going to say?

Let’s see, hmm, what will “I” do next… hmmm

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S Andrews November 17, 2009 at 12:25 pm

Stephen,

Yes, Lord B’s comments make sense – most of the time, but he did an unnecessary ad hominem on Silas. I think it would be in the interest of this blog to keep name calling and four letter words to a minimum.

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Stephan Kinsella November 17, 2009 at 12:47 pm

S, yeah, except Silas is sort of like the belligerant drunk who insults a burly longshoreman’s mom at a bar and is surprised to elicit a punch to the jaw. Yeah, it’s unjustified, I suppose–but it’s invited by engraved invitation, like the Dominique and Roark rape scene.

In any event, “I” am not Lord B. (Right, Silas? Hmm? ;)

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Peter Surda November 17, 2009 at 2:14 pm

Dear Silas,

> You have switched the sense in which you use
> the term “integrity is damaged” when applying it to
> this context, so the argument doesn’t carry over.
How have I switched? The “damage” is objectively measurable. In IP, only value change (subjective) is observable.

> a radio signal’s “integrity” is only destroyed
> because some abstract assumption — relied-upon
> to communicate — is violated.
No Silas, that’s incorrect. The integrity is violated regardless of any abstract assumptions, evaluations and merit. It is also violated if noone is attempting to communicate, e.g. eruptions on two stars also violate integrity of each others’ signals.

The point is that the integrity (or lack thereof) can be objectively measured, observed and quantified.

You cannot mix subjective evaluations into your arguments (regrettably, some of IP opponents do it too). Anything can be subjectively evaluated. That does not make it into a right. And if you remove the “value” aspect of your arguments, there is nothing left.

So again:
– you cannot use “value” to define property
– integrity violations in EM can be measured in a value-free manner (just like praxeology requires)
– integrity violations in IP cannot

Your turn now.

Cheers,
Peter

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bob November 17, 2009 at 2:46 pm

Audibility in some environment is certainly a own-able resource. A theater has every right to remove those who damage the audible integrity of their scarce space.

Consider noise pollution, or the prohibition of amplified devices in public places without a license.

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Silas Barta November 17, 2009 at 3:15 pm

Oh gosh, I’m so sorry; I’ve been remiss. I mistakenly *thought* that Lord_Buzungulus,_Bringer_of_the_Purple_Light was actually Stephan_Kinsella, but now with his clear, firm denial, I know they are actually two different people.

Perhaps what threw me off was how they have the exact same writing styles, make the exact same complaints about alleged misunderstandings in Stephan_Kinsella’s writings, laud each other excessively, use the same profanities when attacking me, and manage to not get their comments deleted even when in blatant contravention of comment policy.

A hasty rush to judgment on my part, I guess.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 3:25 pm

Well, I’ve been a big admirer of Kinsella’s work for a long time, he’s had a huge influence on me. But seriously, Silas, why would he use a pseudonym to deal with you here? He’s obviously taken the more sensible approach of simply ignoring you. I should continue to follow his influence and do likewise.

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 3:32 pm

Also, Silas, where did either one of us “laud each other excessively?” He said I made sense, I referenced his extensive writings on the topic of property rights. You should simply realize, there’s plenty of hate to go around here for you, there’s no sock puppetry going on.

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snargles November 17, 2009 at 3:44 pm

Silas,

Your objections have been sufficiently answered. I would like to believe that more time has been used up by members of this community babying you along than any other person here.

It’s high time for you to join our crusade against the evil IP law or stop commenting about your misunderstanding of the issues lest you continue to be berated by the people here.

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MichaelM November 17, 2009 at 6:49 pm

The right to property is not a right to entities themselves. There is no ethical principle deriving from the nature of man that can establish a moral claim to control an entity in the absence of any application of ideas and actions to it. A property right is the right to control the use of unowned entities if and when they are the repository of the product of an autonomous application of ideas and actions to existence.

That one must embody that which generates the value does not entitle one to regard the embodying matter as the source of value. Absent the buckets of chemicals my friends consist of, I could not value them. But the chemicals are not the source of their value to me – their minds and the contents thereof as manifested in their choices and actions are. Matter is just the medium of value.

When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.

Consequently, all property rights are rights to intellectual property that must be embodied to be protected. Knowledge, ideas, and labor cannot be protected — only combined applications of them in the particular format of their embodiment.

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T. Ralph Kays November 17, 2009 at 6:54 pm

MichaelM

I am sorry to say this because I don’t really want to offend you, but to quote a great man: “the language is the language of english, but the sense is the sense of nonsense”

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Lord Buzungulus, Bringer of the Purple Light November 17, 2009 at 7:14 pm

“When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.”

For example, a sandwich? I think your theory is a pretty open-ended grant of privelege.

{ 65 comments… read them below or add one }

Stephan Kinsella November 17, 2009 at 8:09 pm

Lord B: “For example, a sandwich? I think your theory is a pretty open-ended grant of privelege.”

See, Silas–I would never misspell privilege like that. Doesn’t that prove it? Heh.

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Bala November 17, 2009 at 11:39 pm

Lysander,

” then the question is not one of more or less liberty, but of whose property rights should take priority. ”

You are engaging in the well-known approach called question-begging. I have tried my best to show you why ideas and patterns cannot and should not be considered “property” and here you come back saying “whose property rights should take priority?” as though your suggestion that ideas and patterns should be considered “property” has been accepted. How is this a valid response to my (rather long) post questioning the very validity of your stand that ideas and patterns can and should be considered property?

Since I seem to have been ineffective in conveying my point, let me try to present it differently.

My point is that your notion that ideas and patterns can and should be recognised as “property” is absurd. I am giving below my reasons starting by stating my basic definitions and axioms.

Definition : Rights are fundamentally a moral concept sanctioning man’s actions in a social context. The sanction required is not any external sanction (such as those of others) but one’s own long-term well-being and the nature of the reality that one faces (including the reality of one’s own nature).

Axiom : Life is a sequence of self-generated self-sustaining actions. The most fundamental Right of any human being is the Right to Life.

Argument :

The logical corollary of the Right to Life is the Right to Liberty. The latter is nothing more than the freedom to act to sustain one’s life in consonance with one’s nature.

The Right to Liberty is self-limiting – action that violates the Liberty of another person cannot come under the scope of “Liberty”. That’s because reality abhors contradictions and hence, you cannot claim for yourself a right that you deny to others. The means of violating a person’s Liberty is to initiate force against him and hence such action does not and cannot get moral sanction.

The Right to Property is little more than a manifestation of the Right to Liberty. Action to sustain life is fundamentally to gain or keep value. You can take value that I have gained away from me with or without my consent. The latter is possible only through the initiation of force. Since the latter does not have moral sanction, neither does the action of taking away the value I have gained without my consent. This, IMO, is the real meaning of the concept “property”.

By this understanding, only that can be considered property, which has been gained by one person and to take which away from him without his consent, you (or I) need to initiate force against him.

By this yardstick, physical goods can and should be designated “property”. Ideas and patterns can be taken from one person without the initiation of force. Hence, it is absurd to try to label ideas and patterns as “property”.

The notion that ideas and patterns be considered “property” is further damned by the obvious fact that while their taking does not constitute an initiation of force, preventing the “taker” from acting as per his rational mind necessarily constitutes an initiation of force. Thus, IP becomes no more than a means by which those who claim to have generated ideas get to enslave everyone else who “takes” them from the “producers” of ideas and tries to use them. Rather morbid, as I see it.

The rest of your “explanation” is meaningless unless you address this point of mine and show why you are not enaging in question begging but in logical argumentation.

Incidentally, my approach out here is to argue based on certain undeniable and self-evident axioms (what you call a priori) and the use of Logic to arrive at my conclusions. So, my approach is well within the boundaries that you tried to prescribe for the discussion. Your approach, however, does not meet your own standards. It definitely does not meet mine.

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MichaelM November 17, 2009 at 11:49 pm

“For example, a sandwich?”

Yes. A recipe for a unique sandwich, or soft drink, or wonder drug, or fuel additive, or ….

“I think your theory is a pretty open-ended grant of privilege.”

Characterization is cheap. Showing that it actually applies will require a greater investment.

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Lord Buzungulus, Bringer of the Purple Light November 18, 2009 at 6:55 am

MichaelM is trying to change the terms of the debate. His original claim was:

“When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.”

Obviously, this would characterize a sandwich *as such*; prior to the genius who conceived of putting meat between pieces of bread, the application did not exist, and after his idea, changes to the value scales of others are generated as a result. Hence, by your thesis, the originator has a moral claim to the value thus generated.

Now, however, after confronted with the absurdity of all sandwich eaters owing a tribute of some kind to the originator, you tell us that only “unique” sandwichs are worthy of such consideration. This is another good example of how IP proponents rely on moral bluster in principle and ad hoc adjudication in practice.

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TokyoTom November 19, 2009 at 8:06 am

I left the following comment on Jeffrey`s post:

While I`ve read Rand, I hadn`t actually followed how the idea of IP affected her own life.

My own view has come around to the idea that state-created IP is abusive and has been hijacked by rent-seeking. Firms and individuals that want to maintain information as property should do so without state grants, other than the use of courts in providing remedies for theft.

But that the idea of IP itself as “property” does not seem absurd to me in the least; the prevalence of the idea is an example of the way that communities adopt and internalize rules and apply them rather reflexively (and feel them morally) and is a testament to the capacity of humans to minimize tragedy of the commons situations (as Yandle and Ostrom have noted). The problem is simply that IP has slipped its moorings and become abusive to the point that we need to start working (via legislation, no?) to lessen the evident parasitism and abuse.

Absent the state, my notions of “property” are pragmatic (and consistent with Ostrom`s empirical studies of resources): property is what the owner possesses and can defend, which reflects both communities` acceptance of the legitimacy of such claims, and individual`s recognized stake in/claim on community property and institutions.

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newson November 19, 2009 at 8:35 am

the lord bit i get, but the purple light?

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Lord Buzungulus, Bringer of the Purple Light November 19, 2009 at 9:08 pm

newson,

The purple light is the medium by which I spread knowledge.

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MichaelM November 20, 2009 at 12:05 am

“Obviously, this would characterize a sandwich *as such*; prior to the genius who conceived of putting meat between pieces of bread, the application did not exist, and after his idea, changes to the value scales of others are generated as a result. Hence, by your thesis, the originator has a moral claim to the value thus generated.”

IP rights cannot protect unspecified and undemonstrated future variations of a creation. A government cannot protect IP until and unless it is objectified — defined, specified, and demonstrated to be a viable improvement. To protect a sandwich *as such* the creator would have had to provide specifications for all possible variations and make models or exemplars as standards against which to measure all future claims of improvements.

The original sandwich was itself only an improvement on a previous creation (bread) that would have been at that time in the public domain. Per Rand (if the original sandwich could have been patented or its recipe copyrighted), the IP rights would have expired 50 years after the creators death. Thereafter the original sandwich would be in the public domain and only unique improvements (recipes for specific new combinations and measurements of ingredients) could be protected.

Rand made a clear distinction between property rights in material objects like land and IP. The former are unlimited, because their value can only be maintained by continued applications of reason and action. IP, however, can have value for a long or even infinite time without requiring further effort. Therefore she advocated a limit of 50 years beyond the creator’s death. That would insure value for the creator by guaranteeing any buyer of the rights time to profit from his investment in the event that the creator would die on the day of sale. It would also guarantee that others could not profit from it without contributing to its value.

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TokyoTom November 20, 2009 at 1:39 am

I note that Stephan chose to respond at Jeffrey Tucker`s thread rather than here.

Stephan`s response is here; mine follow in the same thread:

http://blog.mises.org/archives/011035.asp#c627755

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Lord Buzungulus, Bringer of the Purple Light November 20, 2009 at 8:00 am

MichaelM’s latest post confirms my observation that, stripped of moralistic bluster about creation, (non-utilitarian) defenses
of IP amount to some ad-hoc maneuvers to avoid absurdity. He tells us that a sandwich as such is not subject to IP rights
because one of the underlying factors of production (bread) was already in the “public domain,” whatever that is. Actually, we
know what it is: a period 50 years after the creator’s death. Why 50 years? He appeals to the authority of Rand for this
number, but it’s plainly proctologically inspired (i.e., pulled out of her ass). It’s completely arbitrary. No logic or
analysis supports it, it just seems reasonable to IP defenders.

Here’s another howler:

“A government cannot protect IP until and unless it is objectified — defined, specified, and demonstrated to be a viable
improvement.” How do any of these three steps establish “objectification?” (Let’s leave asise the question of establishing
“viable improvement” from the perspective of [subjective] human ends, rather than in some narrower technological sense.) This
is an example of another pro-IP trick: use physicalist language and metaphors to obscure the distinction between IP and valid
property. It’s ironic: IP defenders reject the scope of property rights in things as being too narrow, yet they clearly feel
the need to craft their own defenses of IP in precisely same language as ordinary (ie, justifiable) property rights. (You
“objectify” an idea, “hence” you can own it. What crap.)

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MichaelM November 20, 2009 at 11:39 am

“moralistic bluster – ad-hoc maneuvers – avoid absurdity – whatever that is – pulled out of her ass – another howler – another pro-IP trick – What crap …”

Gratuitous and purely decorative phrases like these undermine the credibility of the points you attempt to make, and are ultimately degrading to yourself, and the blog as well.

————————-

“He tells us that a sandwich as such is not subject to IP rights because one of the underlying factors of production (bread) was already in the “public domain,”

I did not. It illustrated the fact that IP is not necessarily a total object, but can and usually is an isolated modification or addition to a protected or unprotected item …

————————–

“the ‘public domain,’ whatever that is. Actually, we
know what it is: a period 50 years after the creator’s death. Why 50 years?”

Wrong again. The ‘public domain’ is the state of being not or no longer protected. For IP, it must begin well after the creator’s death. If it ended at his death, the creator could not profit from his creation, because no one would buy rights that could end if the creator were killed or died immediately after making the sale. The length of the period is neither inexorably fixed nor arbitrary. It is conditional upon the factors that determine how long it would take IP buyers to recoup and profit from their investment. Present parameters could easily be quite different from those that would obtain 500 years from now. These must be defined in law just as all other equally conditional issues of justice, like punishments of crimes and such, are established and enforced by the government as designed by the populace.

——————————

By the way, to use the term “appeal to authority” you must first learn how to distinguish learned knowledge from dogma and how to demonstrate that a statement is one or the other. Just asserting it doesn’t suffice.

——————————-

“…defined, specified, and demonstrated to be a viable improvement.” How do any of these three steps establish ‘objectification?’ ”

You make a sketch, you spec it and explain it, and then you make a prototype to show that it really does what you claim it does i.e. that the improvement claimed is viable. The degree of improvement is not a consideration and the effort required prevents frivolous claims. The Wright brothers objectified their claim and were due protection while all the other designs that did not fly were not. All claims to rights, to be enforceable, must be unambiguously concretized and demonstrated to be valid.

REPLY

Pömmelhorse Pümmelfister November 20, 2009 at 8:43 pm

Mike,

You weren’t ask for a set of procedures, you were asked for the meaning of “objectification.” Metaphors are for the weak of mind.

REPLY

MichaelM November 21, 2009 at 10:12 pm

@PP
Your first shot at the definition was directly appended to the word “objectified” in the original statement:

“— defined, specified, and demonstrated…”

—————

Your second chance to get it was in the closing sentence of my next reply:

“… unambiguously concretized and demonstrated”

—————-

Here’s your last chance:

objectification : concretization of an abstraction.

.

REPLY

Octobox December 4, 2009 at 11:21 am

Is it okay if I re-print this and all other works on Mises as my own and sell them for commercial purposes?

*ahem – kicks pebble*

*leaves quietly*

REPLY

scott t December 4, 2009 at 1:16 pm

“Is it okay if I re-print this and all other works on Mises as my own and sell them for commercial purposes?”

well…if you reprinted them and claimed yourself to be “pattern originator” the person responsible developing and researching the communicated concepts and you actually didnt do that…i would think that to be less than ok. a falsehood, iow.
if someone paid you for the material believing you were the concept originator ..well, if they benefited from the information then thats a good, but they were probobly wanting to support the actual concept developer. i suppose disdain would vary from person to person.
repeating or selling various forms information that you acquire without claiming authorship…well, i guess people have to buy things somewhere.

 

archived comments from https://web.archive.org/web/20091120180415/http://blog.mises.org/archives/011042.asp:

Comments (61)

  • Lord Buzungulus, Bringer of the Purple Light

    Brilliant point about viewing value as a verb as opposed to a noun. On a side note, I believe this is the essence of von Mises’ calculation argument: as value is not a thing or an entity, there can be no calculations in terms of value (as opposed to calculation in terms of money prices). See Huelsmann’s discussion of this in his biography of Mises. In this regard, the Randians are closer to the neoclassicists than the Austrians.

    Published: November 16, 2009 5:01 PM

  • Silas Barta

    She should have realized that this means there cannot be property rights in value since this would have to mean property rights in arrangements or patterns, which would then give the owner of the arrangement rights in other people’s already-owned property.

    Yeah! Right on! That would be ridiculous! It would be like having a right to tell people what they can use for the settings on their radio transmitter! Hey — they OWN the transmitter. The issue is resolved! How can anyone possibly tell them they can’t transmit at this or that frequency. Property rights mean you can be told what to do with your transmitter!.

    Published: November 16, 2009 5:18 PM

  • Ty

    Silas,

    You do whatever you want with a radio transmitter as long as you don’t violate someone’s homesteaded frequency. By your logic, why don’t we just ram our cars into each other since no one owns the paths our cars are taking? Or maybe we can agree to share the limited pathways the cars can take and not overlap simultaneous use of those pathways.

    What is the principle that allows overlapping use of radio but not crashing cars into each other?

    Or am I just not understanding what you are saying?

    Published: November 16, 2009 5:48 PM

  • Ty

    As far as IP goes, who do I make the check out to for inventing Fire? I use that almost everyday in one form or another. I would feel guilty if I wasn’t paying a licensing fee.

    Published: November 16, 2009 5:49 PM

  • Silas Barta

    How is crashing into someone’s car like broadcasting at the same frequency? What gives you the right to receive information over the EM spectrum? Why can’t you and I just be content to overlap each other?

    Published: November 16, 2009 5:59 PM

  • Lord Buzungulus, Bringer of the Purple Light

    Silas Barta is the intellectual equivalent of a child molester.

    Published: November 16, 2009 7:07 PM

  • Ribald

    Ty,

    Presumably, people would not attempt to share the same paths on the road because their cars would get totaled. In the same vein, I think Silas made the implicit assumption that this would translate into the frequency spectrum as well, so that those with transmitters would avoid unnecessary interference by choosing different frequencies.

    That assumption may or may not be correct (one can imagine interference being used to monopolize radio communications, for instance). In the same vein, someone might find advantage in blocking certain roads.

    Can frequencies can be homesteaded, as land and roads can be? My view is that they can’t be, although a good case can still be made that interference is a violation of someone’s property rights (because someone else’s photons are harming the functioning of your receiver).

    The controversy lies, I think, primarily in the fact that interference does not cause material damage while causing devices to function poorly (how can it be bad if nobody/nothing gets hurt?). If it did, everyone would be in absolute agreement.

    Does inhibiting the function of someone’s devices constitute property damage by itself? On the one hand, a device can only potentially produce some good, and a potential something is non existent, so preventing a device from producing something is not itself enough. On the other hand, a person has the right to use his belongings, and the products of their use are arguably inseparable from their use. I feel that the latter is closer to the truth, if only for the fact that it seems to be the norm when it comes to the issue of inhibition of functionality (what devices are ok to inhibit?).

    Published: November 16, 2009 7:30 PM

  • Lord Buzungulus, Bringer of the Purple Light

    “Why can’t you and I just be content to overlap each other?”

    Silas, you dumb-shit, aren’t you even faintly aware of the prior-later distinction that underlies the theory of property rights that libertarians like Kinsella espouse? Maybe you would disagree with it, but to be ignorant of it (or to feign ignorance of it) in this discussion is appaling. Here’s the answer to your question: one of the broadcasters broadcasts first, therefore his claim to broadcast at that frequency trumps subsequent would-be broadcasters. It is precisely in this sense that the EM spectrum is scarce, and hence ownable. Do your goddamn homework, you asshole.

    Published: November 16, 2009 7:35 PM

  • newson

    silas barta says:
    “Why can’t you and I just be content to overlap each other?

    when you emit audible frequency by talking, you don’t homestead that frequency, and others don’t have to observe silence (except when on your land).

    good manners determine who talks and who is silent; or maybe we’re all boors and all talk at once, and don’t listen to each other. only when audible noise causes physical harm or nuisance (shouting in the middle of the night) do there exist grounds for an action in tort (no legislation required). freedom of speech is not a licence for waking the neighbourhood.

    if audible frequencies are not ownable, why are em transmissions different in principle?

    Published: November 16, 2009 8:00 PM

  • Bala

    I have posted this earlier in another discussion thread, but thought it better to reproduce the relevant parts rather than reinvent the wheel (I’m copying from myself 🙂 ). I am also posting this because I think Stephan is still nowhere close to an argument that could convince an Objectivist who reads this article. So, I am trying to put across what made me (a self-proclaimed Objectivist) reject Rand’s concept of IP (while continuing to be a self-proclaimed Objectivist).

    My attempt is to show that starting from the basic premises of Objectivism can only lead one to reject the concept of IP and hence conclude that Rand was wrong to treat IP the way she did.

    Actually, IMHO the problem faced by most people who call themselves Objectivists is the failure to see that Rand made a mistake on IP. In my assessment, her position on IP contradicts her own concept of Individual Rights.

    Ayn Rand defined Morality as a code of values. As per Rand, the highest value to any man is his Life. Life is a sequence of self-generated and self-sustaining actions. The purpose of life is life.

    To sustain life, man, like every other living being, needs to act. Since man’s concepts and values are not automatic, he needs to form them using his rational mind. The concepts and values thus formed help man identify the best course of action under any circumstance. The end result of this process of concept formation and thinking is action. The purpose of such action is to seek value – value that sustains his life.

    To sustain his life qua man, man needs two fundamental conditions to be satisfied
    1. The Liberty to form concepts based on the percepts he receives from his environment and
    2. The Liberty to act on his choices
    Preventing him from doing either of these is to condemn him to death.

    The only way to infringe upon a man’s Liberty is to initiate force on him. Thus does the principle of “non-initiation of force” originate.

    The concept of Liberty has a “positive” and “negative” aspect. The “positive” aspect is that a man may undertake any action as long as he is not initiating force against another man. The “negative” aspect is that others may not initiate force against him. This is the moral and political concept of Liberty.

    The concept of property logically derives from the principle of Liberty thus outlined. Man is at liberty to seek the values he chooses either by gathering or by producing. As long as he is not initiating force against another man, no one may prevent him from doing so. Once he has acquired these values, there is only two ways to take the value away from him.

    1. Trade with him – give him some other value in exchange for the value he has
    2. Initiate force against him to make him give up the value for nothing or for some thing of less value

    The former is moral because it preserves his Liberty. The latter is immoral because it is an infringement of his Liberty.

    This, IMO, is the moral concept of Property Rights – not from labour; not from creation or anything else similar. The concept of Property is the recognition that initiation of force is not a proper means of dealing with other men.

    Rand also said “Law is a means of subordinating society to Moral Law”. While this is a very nice statement, what she (IMO) missed out is that society to a man is just a certain number of other individuals and that the ONLY Moral Law that others need to follow with respect to an individual is to refrain from initiating force against him. She herself said that no man has any obligation to another other than respecting his individual rights.

    In other words, the only Law that man needs is one that ensures that others do not infringe upon his Liberty and that if they do so, they will not get away with it. No law may be promulgated that violates individual liberty of those who have not violated that of others, even if it may claim to protect certain other rights.

    Specifically on the point of Intellectual Property and the “copying” of inventions, Rand’s error was fundamentally to ignore the simple (though not obvious) point that in forming a concept, man is not initiating force against anyone else. This error is especially intriguing, coming from a person who have given a very sound epistemology of reason in her book “Introduction to Objectivist Epistemology”.

    For instance, if you come up with an invention, incorporate it in a product and then sell the product to me, the first thing that happens is that the product becomes my property. When I subsequently study that product, I am not initiating force against you because I am engaging in a study of my own property. If in the process, I form the concept of how your invention works, I am completely at liberty to do so because I am acting as per my nature as man – a rational animal with a volitional consciousness seeking to organise his percepts into an intelligible system of interrelated concepts. If I then choose to give physical shape to the concept by arranging materials (which I procure by trading with those that have them, thus making them my property) suitably, I am being morally correct because surviving by producing value for consumption and trading is moral; it is the natural state of man.

    The concept of IP seeks to hold as punishable, the act of forming concepts and acting on such concepts even though the process does not involve any initiation of force by the individual on any one else, least of all on the person who “produced” the idea. By seeking to initiate force on such men to restrain them from being human, it is a gross violation of their Right to Liberty.

    To claim otherwise is either an error of omission (that goes for Rand) or an error brought on by a deliberate evasion of reality.

    In sum, even if one uses Ayn Rand’s conception of Individual Rights, IP is an abomination because it is antithetical to the concept of Liberty.

    A very simple inequality is very useful to condense my argument. The 3 key Individual Rights can be ranked on a scale of importance as

    Right to Life > Right to Liberty > Right to Property.

    This is a very simple inequality to understand. A look at the structure of the penal systems followed in civilised societies will give us a hint that this is indeed already implicitly accepted world over. Simple crimes are punishable with fines (loss of Property). Graver ones are punishable with imprisonment (loss of Liberty). The gravest ones are punishable with death (Loss of Life).

    Individuals practice it too. When faced with a choice between Liberty and Property, people mostly choose Liberty (when people choose to give up wealth or the opportunity to seek it to fight for Liberty). When forced to choose between Life and either Liberty or Property, people choose Life unless not acting otherwise can lead to a painful life with no scope of Liberty ever in their life-time – An example is rich people leaving a lot of their wealth behind and fleeing for their life.

    Thus, the only correct position (IMO) for an Objectivist to take is anti-IP.

    Published: November 16, 2009 8:07 PM

  • Silas Barta

    Could a moderator PLEASE delete Lord Buzungulus’s comments? Those are the very definition of what is not wanted here.

    Published: November 16, 2009 8:32 PM

  • Bala

    In fact, there is another simple way to understand why Rand was wrong on IP.

    As per Rand, all Rights are Right to action. There is no such thing as the Right to a value or a thing. IP, on the other hand, is all about the Right to a “thing”.

    The Right to “exclude” others when applied to IP is a right to violate their Liberty. Violation of Liberty is tantamount to enslavement. As per Rand, however, there can be no such thing as a ‘Right to enslave” coexisting with a “Right to Liberty” – Reality abhors contradictions. How can an Objectivist then reconcile IP with Individual Rights? IMO, never or by evading reality, i.e., by ceasing to be an Objectivist.

    p.s. Applying the “Right to exclude” to physical property is different because it would translate into a retaliatory use of force – an attempt to take away physical property without the owner’s consent necessarily requires the initiation of force.

    Published: November 16, 2009 8:34 PM

  • Lord Buzungulus, Bringer of the Purple Light

    Actually, Silas, you’re a shining example of what’s not wanted here. Enough of your internet stalking.

    Published: November 16, 2009 8:38 PM

  • T. Ralph Kays

    Silas Barta

    I find ALL of Lord Buzungulus’s comments interesting and enlightening, yours however…..not so much, to put it politely.

    Published: November 16, 2009 8:38 PM

  • Lysander

    Kinsella writes:
    “She should have realized that this means there cannot be property rights in value since this would have to mean property rights in arrangements or patterns, which would then give the owner of the arrangement rights in other people’s already-owned property.”

    Nonsense. You cannot lay claim to ownership of an arrangement or pattern if that pattern already occurs in other people’s property, because you would not then have the prior claim.

    In its most fundamental form, the claim to copyright is a claim to a pattern. Books, photographs and movies in digital form are bit-patterns. A chromosome is a DNA pattern.

    Of course there should not be property rights in “values”. Rand never said it, never implied it. Straw man.

    Published: November 16, 2009 11:41 PM

  • Seattle

    A point that I think should be made with regards to “Property Rights.”

    Property Rights don’t “exist” in the objective sense. When you lay claim to a piece of property, an “Ownership Particle” doesn’t entangle itself with it to solidify your claim.

    Property Rights, and by extension all “rights” are human constructions. And, like all human constructions, they only exist to the extent people believe in and respect them.

    With the exception of some certain State actors, people tend to respect and believe in property rights a lot. Why do they do this? Because property rights work.

    Why do property rights work? Because of scarcity with regards to physical objects. There has been more than enough discussion as to why this is, but the important thing to remember is there’s no such thing as scarcity with regard to ideas.

    It is THIS reason that IP “rights” should be abandoned and, in a free market would be, because simply they do not work! It doesn’t make any logical sense to apply a solution to a problem that doesn’t exist.

    Published: November 17, 2009 1:18 AM

  • Bala

    Lysander,

    ” Nonsense. You cannot lay claim to ownership of an arrangement or pattern if that pattern already occurs in other people’s property, because you would not then have the prior claim. ”

    You have misunderstood Stephan and I am responding because I expect him to respond as harshly as you have done.

    Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it, even though my doing so does not require any initiation of force against you by me. Preventing a person from acting as per the assessment of his rational mind can only be achieved by the initiation of force, thus violating his Liberty. Thus, your Right to your IP necessarily depends, for its implementation, on violation of my rights to Liberty and my right to property (which I may have owned owned before you even staked claim to the pattern under question). This is what he is objecting to.

    Assuming that you are talking from the Objectivist view of IP, how do you reconcile the inherent conflict between one person’s IP and another person’s Rights to Liberty and Property? IMO, you cannot.

    Further, from a very Objectivist point of view, IP constitutes a claim of a “Right to an object”, something Rand objected to very strongly. In Rand’s own view, all rights are rights to action. Thus, IP contradicts the Objectivist concept of Individual Rights.

    Published: November 17, 2009 2:07 AM

  • Peter Surda

    @Silas:
    Kindly respond to the objections wrote about with regards to your arguments.

    I can state it again, this time using Stephan’s quote of Hoppe: property rights are violated when the integrity is damaged. If you send a signal over a frequency that is already used by someone, it damages the integrity of that other signal. Even if you use compatible encodings, it decreases the bandwidth available to the other person. This is a measurable phenomenon and doesn’t require any concept of value and is valid regardless of the rights being recognised by anyone. It doesn’t even depend on people existing at all. If there were for example two robots communicating and a sun eruption would disturb the signal, the signal would still be disrupted.

    On the other hand, there is no equivalent phenomenon in IP. There is no integrity damage that can be measured. You can only measure changes of value, which you obviously cannot own. And the “violations” are very closely tied to the rights being recognised by other people. If noone (including the author/inventor) recognises IP, there is simply no violation/disturbance whatsoever.

    Cheers,
    Peter

    Published: November 17, 2009 6:41 AM

  • Lord Buzungulus, Bringer of the Purple Light

    Lysander writes:

    “In its most fundamental form, the claim to copyright is a claim to a pattern.”

    How can someone claim a pattern? If you arrange factors of production into a particular pattern, and I arrange different (but validly owned) factors into the same pattern, where’s the conflict? There is nothing you could do with your factors prior to my identical arrangement, that you can’t do after my copying. You can still, e.g., use your factors for your own personal enjoyment, my copying prevents that in no way. I’m guessing, then, that what you mean is that if you planned to sell the output of those factors, then my copying induces competition for your output. That’s true, but so what? You have no right to revenue on the market; you are still free to *try* to sell your wares, either before or after a copier comes along. In no sense is there conflict between the scarce objects here, the real property: namely, the factors of production. Ultimately, non-utilitarian defenders of IP do support rights in value, I would say.

    Peter Surda:

    You’re gonna be waiting a long time for a response from Silas. He does nothing more than come here like a small child and squeal about he’s (alledgedly) found an inconsistency in Kinsella’s position. A total tool.

    Published: November 17, 2009 6:58 AM

  • ktibuk

    A drunk woman has passed out. Deep a sleep. Some guy comes and has sexual intercourse with her.

    There is no physical damage to the woman.

    There is no conflict arising from scarcity of the physical, the body, since the woman has passed out and not using her body at the time.

    Prove that this is an act of aggression and a crime using the same premises used to argue against IP.

    Published: November 17, 2009 7:44 AM

  • Lord Buzungulus, Bringer of the Purple Light

    ktibuk,

    Are you completely deranged? Of course the woman in your example is using her body, whether she’s sleeping or not.

    Published: November 17, 2009 7:51 AM

  • Josh

    Silas’ point is well taken – it’s not easy to come up with an airtight definitions of “property”. Clearly “intellectual property” is over the line, but do you own the right to an EM frequency when you “homestead” it by transmitting information on it for the first time? I’d say no, but it’s an interesting question, and posts (like Buzungulus’ first in this thread) that consist entirely of ad hominem attacks merely detract from the discussion.

    Published: November 17, 2009 8:31 AM

  • Lysander

    Bala writes:
    “Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it”

    If you are referring to potential rather than existing patterns, then the question is not one of more or less liberty, but of whose property rights should take priority. If you accept, as I do, that intellectual property exists, then I am infringing the author’s property-rights by copying his patterns.

    Your view is that each claim to ownership of a pattern restricts my liberty to do what I may with my property. I acknowledge the restriction, but I regard it as reasonable because the patterns could never have come into existence without their authors.

    I accepted the restrictions on the potential abuse of my property when I bought it. I didn’t buy blank DVDs to bootleg films any more than I bought my gun to shoot my friends.

    I also believe that homesteading does not confer an unfettered right to pattern-replication. For when you establish a homestead by developing a property, you do not thereby lay claim to all potential uses to which the land might be put.

    If, for example, I develop land for farming, I do not thereby acquire rights to its airspace, or to its mineral rights, or to its airwaves, even if the technologies that use them were invented after I bought the land. The reason is that they are outside the scope of my homestead.

    In each case we have conflicting claims. The claim to airspace, the claim to minerals, the claim to airwaves, the claim to patterns. In Mises’s words, “this is a problem of delimitation of property rights”. I do not think the problem can be decided by appeal to “natural” rights. Nor can it be decided by statistics, which can be bandied about endlessly. I think that the issue can be decided only by a priori argument based on utilitarian considerations.

    Published: November 17, 2009 8:41 AM

  • Lysander

    Lord Buzungulus writes:
    If you arrange factors of production into a particular pattern, and I arrange different (but validly owned) factors into the same pattern, where’s the conflict?

    If you spend millions designing an automated factory, and someone else copies your blueprint, they can undercut you in the market. They do not have a huge R&D budget to factor into the price of the final product. They can send you broke.

    Is the consumer better off? Yes, in the short term. No, in the long term. R&D won’t be worth the candle.

    Published: November 17, 2009 8:43 AM

  • Silas Barta

    @T._Ralph_Kays:

    I find ALL of Lord Buzungulus’s comments interesting and enlightening, yours however…..not so much, to put it politely.

    Really? Even the one that did nothing but compare me to a child molester?

    @Peter_Surda: I’ve addressed this point several times, so you already have an answer, but as usual, I’ll answer its latest manifestation.

    property rights are violated when the integrity is damaged. If you send a signal over a frequency that is already used by someone, it damages the integrity of that other signal.

    You have switched the sense in which you use the term “integrity is damaged” when applying it to this context, so the argument doesn’t carry over. “Damaging the integrity of a radio signal” is not the same as damaging the integrity of physical goods. As I explained on my blog, a radio signal’s “integrity” is only destroyed because some abstract assumption — relied-upon to communicate — is violated. It’s no different than if I started hitting a gong at a time when your friends were expecting no one else but them to hit a gong.

    If you can have a right to this non-physical kind of integrity — the “integrity of assumptions remaining valid” — then you can have IP rights.

    Published: November 17, 2009 8:59 AM

  • Lord Buzungulus, Bringer of the Purple Light

    Josh, you’ll see that my first post here (the first one in the thread) addressed value theory, not Silas. Re. ad hominem attacks, hey, if the shoe fits. Just adopting the libertarian standard of proportionality here.

    Lysander’s scare stories about bankrupting inventors is totally irrelevant. Plainly lots of market actions can put people out of business; so what? No one has a right to collect money on the market, that’s the whole point of competition.

    Published: November 17, 2009 9:03 AM

  • Stephan KinsellaAuthor Profile Page

    “Lysander”:

    Bala writes: “Stephan’s point is that your laying claim to ownership of a pattern prevents me from modifying my property to create the same pattern on it”

    If you are referring to potential rather than existing patterns, then the question is not one of more or less liberty, but of whose property rights should take priority. If you accept, as I do, that intellectual property exists, then I am infringing the author’s property-rights by copying his patterns.

    But patent rights do not require you to copy the innovator’s pattern. It only requires that the pattern you use (or method, recipe, technique, design) be similar to what the patentee has described in a document filed with the government. You may have independently invented the pattern. In fact, you may have invented it before the patentee. Still, if you use your own property in the way described in the patent, you are infringing the patent.

    This is part of the problem: ignorant laymen libertarians pontificate about some vaguely described IP system. When you point out a particular application of it is unjust, they back down and say, “Well, well, of course, I don’t support that.” So… what do they support? Who knows. They can’t tell you. They can’t describe the system they support–after all, they’re not experts. They just think “innovation” should be “protected”.

    For example if the nym Lysander here says that copying should have to be shown, he is unwittingly supporting an amendment to the existing patent system that would largely gut it–there is a reason that all the normal, mainstream advocates of the patent system would fight this change tooth and nail–because they understand the patent system, unlike ignorant libertarians who feel compelled to weigh in vociferously on something they know little about.

    Published: November 17, 2009 9:49 AM

  • Lord Buzungulus, Bringer of the Purple Light

    Silas,

    I did not compare you to a child molester. I said you were the intellectual equivalent of a child molester: a foul corrupter of youthful minds, who lacks any sense of decency.

    Hope that clarifies things.

    Published: November 17, 2009 9:57 AM

  • Lord Buzungulus, Bringer of the Purple Light

    Here’s a question for all those (e.g., Lysander) who are so worried about inventors being “undercut” on the market by copiers: won’t inventors also be harmed, monetarily speaking, if consumers refuse to buy their products? Putting out a product no one wants can send a lot of R&D dollars down the drain.

    Here’s my question: if you’re so concerned about inventors, why not force consumers to buy their products in the first place?

    Published: November 17, 2009 10:52 AM

  • snargles

    @ Silas:

    The gong example is convoluted. Wavelengths can fit the definition of physical property rights because they are physical things! This goes for EM as well as all gongs. If someone hits a gong at you, they are inhibiting your physical enjoyment of your real property, your land! If however, they are shooting EM waves over your property, they are not.

    If someone is the first to transmit over a specific frequency over an area, they can raise revenue from advertisers. Since it is mutually exclusive, an owner of a transmitter who would transmit over the same frequency and area, would negatively effect the revenue generating ability of the original transmitter, thus effecting his claim to a physical property right.

    IP is none of this, and shouldn’t exist.

    Published: November 17, 2009 11:13 AM

  • Silas Barta

    @snargles: You’re putting too much emphasis on the nuisance aspect of the gong. For purposes of the example, assume that, by the time the gong hits other properties, it’s relatively quiet and below nuisance level, but still audible if you listen for it. In that case, it does contain information but does not inhibit the enjoyment of others property.

    Can people claim the right to inhibit others from interfering with their tradition of being the only gong-hitter at 8am? If not, neither can you inhibit others from interfering with your tradition of being the only one injecting information into a given frequency.

    Published: November 17, 2009 11:45 AM

  • Silas Barta

    @Lord_Buzungulus,_Bringer_of_the_Purple_Light:

    I’ll respond to your challenge as soon as your uncivil posts are deleted. So please delete them.

    Published: November 17, 2009 11:47 AM

  • snargles

    @ Silas:

    The nuissance of the gong is not relevant. If it affects how people can enjoy their property then it is a violation of property rights.

    Published: November 17, 2009 11:53 AM

  • Lord Buzungulus, Bringer of the Purple Light

    Not sure there’s much point to this, but:

    “Can people claim the right to inhibit others from interfering with their tradition of being the only gong-hitter at 8am?”

    Obviously, it depends. Since few people want to deal with such annoyances, they typically craft things like restrictive convenants governing what people can do with their property in a communal setting, e.g., no gong-banging early in the morning.

    “If not, neither can you inhibit others from interfering with your tradition of being the only one injecting information into a given frequency.”

    Obviously (again), the issue here doesn’t concern tradition, it concerns who was the first injector, and why his rights (to inject) trump those of second, third, etc. injectors.

    I now understand why Kinsella has to spend half of his papers on IP spelling out rudimentary issues of property rights.

    When you grow up Silas, maybe you’ll realize that word games with bad analogies (like conflating tradition with first-use) don’t constitute a coherent argument.

     

    Published: November 17, 2009 11:54 AM

  • Silas Barta

    @snargles: The nuissance of the gong is not relevant. If it affects how people can enjoy their property then it is a violation of property rights.

    And the copying of ideas doesn’t affect how people can enjoy their property…?

    @Lord_Buzungulus,_Bringer_of_the_Purple_Light: Again, delete your incivil comments and we can talk, Stephan.

    Published: November 17, 2009 12:04 PM

  • Lord Buzungulus, Bringer of the Purple Light

    Silas, I’m not Stephan. I am Lord Buzungulus. Please, learn my name.

    Published: November 17, 2009 12:08 PM

  • Stephan KinsellaAuthor Profile Page

    Silas, Lord B can’t “delete” his comments. I can.

    I am not Lord B–I don’t do nyms, unlike you, John Sharp, Richard Harding, Person.

    Published: November 17, 2009 12:11 PM

  • snargles

    @ Silas

    “And the copying of ideas doesn’t affect how people can enjoy their property…?”

    Positively, it does, it positively affects how people use their property. But only if they choose to copy, what to copy, and how to copy can you determine the benefits they will receive.

    Using this as a way to justify IP is ridiculous. The person IP supposedly protects is the copied person, and he is in every case unaffected. You’re in some very murky water here.

    Published: November 17, 2009 12:14 PM

  • Stephan KinsellaAuthor Profile Page

    You know, Lord B is making a lot of sense. Amazing I agree with him so much. Since, you know, Silas, I’m, like, not him. I mean, if I was him, would I have a little back and forth with myself like this? Wouldn’t I be able to predict what “I” was going to say?

    Let’s see, hmm, what will “I” do next… hmmm

    Published: November 17, 2009 12:15 PM

  • S Andrews

    Stephen,

    Yes, Lord B’s comments make sense – most of the time, but he did an unnecessary ad hominem on Silas. I think it would be in the interest of this blog to keep name calling and four letter words to a minimum.

    Published: November 17, 2009 12:25 PM

  • Stephan KinsellaAuthor Profile Page

    S, yeah, except Silas is sort of like the belligerant drunk who insults a burly longshoreman’s mom at a bar and is surprised to elicit a punch to the jaw. Yeah, it’s unjustified, I suppose–but it’s invited by engraved invitation, like the Dominique and Roark rape scene.

    In any event, “I” am not Lord B. (Right, Silas? Hmm? 😉

    Published: November 17, 2009 12:47 PM

  • Peter Surda

    Dear Silas,

    > You have switched the sense in which you use
    > the term “integrity is damaged” when applying it to
    > this context, so the argument doesn’t carry over.
    How have I switched? The “damage” is objectively measurable. In IP, only value change (subjective) is observable.

    > a radio signal’s “integrity” is only destroyed
    > because some abstract assumption — relied-upon
    > to communicate — is violated.
    No Silas, that’s incorrect. The integrity is violated regardless of any abstract assumptions, evaluations and merit. It is also violated if noone is attempting to communicate, e.g. eruptions on two stars also violate integrity of each others’ signals.

    The point is that the integrity (or lack thereof) can be objectively measured, observed and quantified.

    You cannot mix subjective evaluations into your arguments (regrettably, some of IP opponents do it too). Anything can be subjectively evaluated. That does not make it into a right. And if you remove the “value” aspect of your arguments, there is nothing left.

    So again:
    – you cannot use “value” to define property
    – integrity violations in EM can be measured in a value-free manner (just like praxeology requires)
    – integrity violations in IP cannot

    Your turn now.

    Cheers,
    Peter

    Published: November 17, 2009 2:14 PM

  • bob

    Audibility in some environment is certainly a own-able resource. A theater has every right to remove those who damage the audible integrity of their scarce space.

    Consider noise pollution, or the prohibition of amplified devices in public places without a license.

    Published: November 17, 2009 2:46 PM

  • Silas Barta

    Oh gosh, I’m so sorry; I’ve been remiss. I mistakenly *thought* that Lord_Buzungulus,_Bringer_of_the_Purple_Light was actually Stephan_Kinsella, but now with his clear, firm denial, I know they are actually two different people.

    Perhaps what threw me off was how they have the exact same writing styles, make the exact same complaints about alleged misunderstandings in Stephan_Kinsella’s writings, laud each other excessively, use the same profanities when attacking me, and manage to not get their comments deleted even when in blatant contravention of comment policy.

    A hasty rush to judgment on my part, I guess.

    Published: November 17, 2009 3:15 PM

  • Lord Buzungulus, Bringer of the Purple Light

    Well, I’ve been a big admirer of Kinsella’s work for a long time, he’s had a huge influence on me. But seriously, Silas, why would he use a pseudonym to deal with you here? He’s obviously taken the more sensible approach of simply ignoring you. I should continue to follow his influence and do likewise.

    Published: November 17, 2009 3:25 PM

  • Lord Buzungulus, Bringer of the Purple Light

    Also, Silas, where did either one of us “laud each other excessively?” He said I made sense, I referenced his extensive writings on the topic of property rights. You should simply realize, there’s plenty of hate to go around here for you, there’s no sock puppetry going on.

    Published: November 17, 2009 3:32 PM

  • snargles

    Silas,

    Your objections have been sufficiently answered. I would like to believe that more time has been used up by members of this community babying you along than any other person here.

    It’s high time for you to join our crusade against the evil IP law or stop commenting about your misunderstanding of the issues lest you continue to be berated by the people here.

    Published: November 17, 2009 3:44 PM

  • MichaelM

    The right to property is not a right to entities themselves. There is no ethical principle deriving from the nature of man that can establish a moral claim to control an entity in the absence of any application of ideas and actions to it. A property right is the right to control the use of unowned entities if and when they are the repository of the product of an autonomous application of ideas and actions to existence.

    That one must embody that which generates the value does not entitle one to regard the embodying matter as the source of value. Absent the buckets of chemicals my friends consist of, I could not value them. But the chemicals are not the source of their value to me – their minds and the contents thereof as manifested in their choices and actions are. Matter is just the medium of value.

    When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.

    Consequently, all property rights are rights to intellectual property that must be embodied to be protected. Knowledge, ideas, and labor cannot be protected — only combined applications of them in the particular format of their embodiment.

    Published: November 17, 2009 6:49 PM

  • T. Ralph Kays

    MichaelM

    I am sorry to say this because I don’t really want to offend you, but to quote a great man: “the language is the language of english, but the sense is the sense of nonsense”

    Published: November 17, 2009 6:54 PM

  • Lord Buzungulus, Bringer of the Purple Light

    “When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.”

    For example, a sandwich? I think your theory is a pretty open-ended grant of privelege.

    Published: November 17, 2009 7:14 PM

  • Stephan KinsellaAuthor Profile Page

    Lord B: “For example, a sandwich? I think your theory is a pretty open-ended grant of privelege.”

    See, Silas–I would never misspell privilege like that. Doesn’t that prove it? Heh.

    Published: November 17, 2009 8:09 PM

  • Bala

    Lysander,

    ” then the question is not one of more or less liberty, but of whose property rights should take priority. ”

    You are engaging in the well-known approach called question-begging. I have tried my best to show you why ideas and patterns cannot and should not be considered “property” and here you come back saying “whose property rights should take priority?” as though your suggestion that ideas and patterns should be considered “property” has been accepted. How is this a valid response to my (rather long) post questioning the very validity of your stand that ideas and patterns can and should be considered property?

    Since I seem to have been ineffective in conveying my point, let me try to present it differently.

    My point is that your notion that ideas and patterns can and should be recognised as “property” is absurd. I am giving below my reasons starting by stating my basic definitions and axioms.

    Definition : Rights are fundamentally a moral concept sanctioning man’s actions in a social context. The sanction required is not any external sanction (such as those of others) but one’s own long-term well-being and the nature of the reality that one faces (including the reality of one’s own nature).

    Axiom : Life is a sequence of self-generated self-sustaining actions. The most fundamental Right of any human being is the Right to Life.

    Argument :

    The logical corollary of the Right to Life is the Right to Liberty. The latter is nothing more than the freedom to act to sustain one’s life in consonance with one’s nature.

    The Right to Liberty is self-limiting – action that violates the Liberty of another person cannot come under the scope of “Liberty”. That’s because reality abhors contradictions and hence, you cannot claim for yourself a right that you deny to others. The means of violating a person’s Liberty is to initiate force against him and hence such action does not and cannot get moral sanction.

    The Right to Property is little more than a manifestation of the Right to Liberty. Action to sustain life is fundamentally to gain or keep value. You can take value that I have gained away from me with or without my consent. The latter is possible only through the initiation of force. Since the latter does not have moral sanction, neither does the action of taking away the value I have gained without my consent. This, IMO, is the real meaning of the concept “property”.

    By this understanding, only that can be considered property, which has been gained by one person and to take which away from him without his consent, you (or I) need to initiate force against him.

    By this yardstick, physical goods can and should be designated “property”. Ideas and patterns can be taken from one person without the initiation of force. Hence, it is absurd to try to label ideas and patterns as “property”.

    The notion that ideas and patterns be considered “property” is further damned by the obvious fact that while their taking does not constitute an initiation of force, preventing the “taker” from acting as per his rational mind necessarily constitutes an initiation of force. Thus, IP becomes no more than a means by which those who claim to have generated ideas get to enslave everyone else who “takes” them from the “producers” of ideas and tries to use them. Rather morbid, as I see it.

    The rest of your “explanation” is meaningless unless you address this point of mine and show why you are not enaging in question begging but in logical argumentation.

    Incidentally, my approach out here is to argue based on certain undeniable and self-evident axioms (what you call a priori) and the use of Logic to arrive at my conclusions. So, my approach is well within the boundaries that you tried to prescribe for the discussion. Your approach, however, does not meet your own standards. It definitely does not meet mine.

    Published: November 17, 2009 11:39 PM

  • MichaelM

    “For example, a sandwich?”

    Yes. A recipe for a unique sandwich, or soft drink, or wonder drug, or fuel additive, or ….

    “I think your theory is a pretty open-ended grant of privilege.”

    Characterization is cheap. Showing that it actually applies will require a greater investment.

    Published: November 17, 2009 11:49 PM

  • Lord Buzungulus, Bringer of the Purple Light

    MichaelM is trying to change the terms of the debate. His original claim was:

    “When someone creates an application of an idea to an entity, and that application did not previously exist, only he has a moral claim to benefit from whatever potential position that application can generate in the value hierarchies of others, because that position is a direct result of his and only his thoughts and actions.”

    Obviously, this would characterize a sandwich *as such*; prior to the genius who conceived of putting meat between pieces of bread, the application did not exist, and after his idea, changes to the value scales of others are generated as a result. Hence, by your thesis, the originator has a moral claim to the value thus generated.

    Now, however, after confronted with the absurdity of all sandwich eaters owing a tribute of some kind to the originator, you tell us that only “unique” sandwichs are worthy of such consideration. This is another good example of how IP proponents rely on moral bluster in principle and ad hoc adjudication in practice.

    Published: November 18, 2009 6:55 AM

  • TokyoTom

    I left the following comment on Jeffrey`s post:

    While I`ve read Rand, I hadn`t actually followed how the idea of IP affected her own life.

    My own view has come around to the idea that state-created IP is abusive and has been hijacked by rent-seeking. Firms and individuals that want to maintain information as property should do so without state grants, other than the use of courts in providing remedies for theft.

    But that the idea of IP itself as “property” does not seem absurd to me in the least; the prevalence of the idea is an example of the way that communities adopt and internalize rules and apply them rather reflexively (and feel them morally) and is a testament to the capacity of humans to minimize tragedy of the commons situations (as Yandle and Ostrom have noted). The problem is simply that IP has slipped its moorings and become abusive to the point that we need to start working (via legislation, no?) to lessen the evident parasitism and abuse.

    Absent the state, my notions of “property” are pragmatic (and consistent with Ostrom`s empirical studies of resources): property is what the owner possesses and can defend, which reflects both communities` acceptance of the legitimacy of such claims, and individual`s recognized stake in/claim on community property and institutions.

    Published: November 19, 2009 8:06 AM

  • newson

    the lord bit i get, but the purple light?

    Published: November 19, 2009 8:35 AM

  • Lord Buzungulus, Bringer of the Purple Light

    newson,

    The purple light is the medium by which I spread knowledge.

    Published: November 19, 2009 9:08 PM

  • MichaelM

    “Obviously, this would characterize a sandwich *as such*; prior to the genius who conceived of putting meat between pieces of bread, the application did not exist, and after his idea, changes to the value scales of others are generated as a result. Hence, by your thesis, the originator has a moral claim to the value thus generated.”

    IP rights cannot protect unspecified and undemonstrated future variations of a creation. A government cannot protect IP until and unless it is objectified — defined, specified, and demonstrated to be a viable improvement. To protect a sandwich *as such* the creator would have had to provide specifications for all possible variations and make models or exemplars as standards against which to measure all future claims of improvements.

    The original sandwich was itself only an improvement on a previous creation (bread) that would have been at that time in the public domain. Per Rand (if the original sandwich could have been patented or its recipe copyrighted), the IP rights would have expired 50 years after the creators death. Thereafter the original sandwich would be in the public domain and only unique improvements (recipes for specific new combinations and measurements of ingredients) could be protected.

    Rand made a clear distinction between property rights in material objects like land and IP. The former are unlimited, because their value can only be maintained by continued applications of reason and action. IP, however, can have value for a long or even infinite time without requiring further effort. Therefore she advocated a limit of 50 years beyond the creator’s death. That would insure value for the creator by guaranteeing any buyer of the rights time to profit from his investment in the event that the creator would die on the day of sale. It would also guarantee that others could not profit from it without contributing to its value.

    Published: November 20, 2009 12:05 AM

  • TokyoTom

    I note that Stephan chose to respond at Jeffrey Tucker`s thread rather than here.

    Stephan`s response is here; mine follow in the same thread:

    http://blog.mises.org/archives/011035.asp#c627755

    Published: November 20, 2009 1:39 AM

  • Lord Buzungulus, Bringer of the Purple Light

    MichaelM’s latest post confirms my observation that, stripped of moralistic bluster about creation, (non-utilitarian) defenses
    of IP amount to some ad-hoc maneuvers to avoid absurdity. He tells us that a sandwich as such is not subject to IP rights
    because one of the underlying factors of production (bread) was already in the “public domain,” whatever that is. Actually, we
    know what it is: a period 50 years after the creator’s death. Why 50 years? He appeals to the authority of Rand for this
    number, but it’s plainly proctologically inspired (i.e., pulled out of her ass). It’s completely arbitrary. No logic or
    analysis supports it, it just seems reasonable to IP defenders.

    Here’s another howler:

    “A government cannot protect IP until and unless it is objectified — defined, specified, and demonstrated to be a viable
    improvement.” How do any of these three steps establish “objectification?” (Let’s leave asise the question of establishing
    “viable improvement” from the perspective of [subjective] human ends, rather than in some narrower technological sense.) This
    is an example of another pro-IP trick: use physicalist language and metaphors to obscure the distinction between IP and valid
    property. It’s ironic: IP defenders reject the scope of property rights in things as being too narrow, yet they clearly feel
    the need to craft their own defenses of IP in precisely same language as ordinary (ie, justifiable) property rights. (You
    “objectify” an idea, “hence” you can own it. What crap.)

    Published: November 20, 2009 8:00 AM

  • MichaelM

    “moralistic bluster – ad-hoc maneuvers – avoid absurdity – whatever that is – pulled out of her ass – another howler – another pro-IP trick – What crap …”

    Gratuitous and purely decorative phrases like these undermine the credibility of the points you attempt to make, and are ultimately degrading to yourself, and the blog as well.

    ————————-

    “He tells us that a sandwich as such is not subject to IP rights because one of the underlying factors of production (bread) was already in the “public domain,”

    I did not. It illustrated the fact that IP is not necessarily a total object, but can and usually is an isolated modification or addition to a protected or unprotected item …

    ————————–

    “the ‘public domain,’ whatever that is. Actually, we
    know what it is: a period 50 years after the creator’s death. Why 50 years?”

    Wrong again. The ‘public domain’ is the state of being not or no longer protected. For IP, it must begin well after the creator’s death. If it ended at his death, the creator could not profit from his creation, because no one would buy rights that could end if the creator were killed or died immediately after making the sale. The length of the period is neither inexorably fixed nor arbitrary. It is conditional upon the factors that determine how long it would take IP buyers to recoup and profit from their investment. Present parameters could easily be quite different from those that would obtain 500 years from now. These must be defined in law just as all other equally conditional issues of justice, like punishments of crimes and such, are established and enforced by the government as designed by the populace.

    ——————————

    By the way, to use the term “appeal to authority” you must first learn how to distinguish learned knowledge from dogma and how to demonstrate that a statement is one or the other. Just asserting it doesn’t suffice.

    ——————————-

    “…defined, specified, and demonstrated to be a viable improvement.” How do any of these three steps establish ‘objectification?’ ”

    You make a sketch, you spec it and explain it, and then you make a prototype to show that it really does what you claim it does i.e. that the improvement claimed is viable. The degree of improvement is not a consideration and the effort required prevents frivolous claims. The Wright brothers objectified their claim and were due protection while all the other designs that did not fly were not. All claims to rights, to be enforceable, must be unambiguously concretized and demonstrated to be valid.

    Published: November 20, 2009 11:39 AM

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Note: I blogged about this article on my site and on againstmonopoly.org previously. The full article can now be found at Hardy Bouillon, “A Note on Intellectual Property and Externalities,”  in Property, Freedom, and Society: Essays in Honor of Hans-Hermann Hoppe, Jörg Guido Hülsmann and Stephan Kinsella, eds. (Auburn, Ala.: Mises Institute, 2009).

Archived comments from the blog post are collected below.
Comments (30)

  • Anonymous

    Maybe I’m missing something but if ‘Intellectual property’ has no impact on how I use my property, then what is the purpose of it at all? Just to establish the history of the ‘property’ in question?

    Published: October 27, 2009 10:32 AM

  • Michael A. Clem

    To put it differently, we can talk meaningfully of intellectual property and intellectual property rights. However, intellectual property as such—being free of any material “extension”—is of no immediate importance to business life. What counts in the market are the externalities that can be derived from intellectual property. How to deal with these externalities is, of course, a different matter.

    While the article helps clarify things in some small degree, I felt rather cheated to be left hanging like this. What is the analytical form or definition of property, and how can “intellectual property” be called such? And how we deal with these externalities is the primary question we’re trying to answer, isn’t it? Isn’t this just background leading to those answers?

    Published: October 27, 2009 11:18 AM

  • tz

    Ownership is just as much an abstract idea as any invention or artistic work, as are rights.

    Whether someone “owns” something or not tends to be subjective, even for real property – If I like the forest and lake as is – in it’s natural state, am I “using it” so would have a claim, or the fact that I don’t alter it means it is functionally abandoned? If ownership is merely the ability and willingness to use violence to defend something, then ideas and other things can be property. Usually the “evidence” of ownership is a deed or some other abstract proof of ownership granted by some human authority.

    I would also note that most people who reject IP will accept any term in any contract. So what happens if I sell you a book or let you use an invention under the terms you must not disclose the contents? Having no copyright or patents does not mean the information will be free – some may not exist (the same way property whose rights are disputed is usually left undeveloped), and other bits may be encumbered with individual legal and/or technical measures which may be even worse than what exists now.

    And “property rights” has nothing to do with any process involving a peaceful settlement of disputes. At some point one or more disputes will not be resolvable – both parties may have an equally good or bad claim or it would depend on some factor which cannot be independently verified. Either some authority (typically the state) comes in and says A is right and B is wrong and will do violence to B if he tries to pursue the claim or obtain the property. If there is no 3rd party enforcement of property rights (true 3rd party, not someone hired by either or both disputants), then the parties can go through whatever private ritual they want, but it will matter who has or can obtain the greatest stealth or most effective weapons – even such battles in an abstract place like an arbitration hearing will have to move to the real world which is where it will have some finality.

    My fundamental problem with the anarchocapitalistic models is the subtle assumption that there will be providers of “protection” instead of providers of mere violence. That there might be Pinkertons (who often were thugs – are Blackwater contractors today better because they are “private”?), but NOT that the free market will produce entrepreneurial, creative thieves and assassin’s guilds – and they would be effective with the full force of the free market. And the Thieves merely need to make it uneconomical for the protection agencies to do more than occasionally pay off on the insurance and raise premiums. (“The Professional Thief, written in the 1930s shows how this did work and is probably a better example and is a real case of how things work outside the state, or by going outside it; more recently the series “It takes a thief” on Discovery showing how easy it was to ransack a house on a weekly basis). They will not catch every thief, so the probability of recovering an amount which would pay for the investigation, apprehension, finding the property, disputing ownership of “stolen property” has to be greater than just doing the paperwork and paying off the claim. If a company would only begin investigating claims above $2000, thieves are smart enough to steal only $1900.

    There are stateless societies. Afghanistan before 9/11/01. Somalia. The tri-border region in South America and Now parts of Mexico. Returning to the US might be a problem, but these places without any state ought to be paradises. Yet I’ve never heard anyone say they actually want to move there and attempt to set up their anarchocolony in actual

    Published: October 27, 2009 1:25 PM

  • ktibuk

    There is one main, and false assumption underneath the opposition against IP.

    The first wrong assumption can clearly be seen in the Hoppe quote and often repeated by IP opposition.

    But to quote the author,

    “In other words, assuming that scarcity is the reason for conflict over goods with competing interests[4] and that the very function of property rights is to solve these conflicts peacefully, there is no need to provide property rights for intellectual property, because intellectual goods are not scarce.”

    This is a clearly positivist approach to law which is polar opposite of natural law. One can not claim to believe in natural law and repeat this assumption without contradicting himself.

    According to natural law theory, laws are not made by people but they are discovered. Laws exist and humans realize, accept and act accordingly. Or not, of course. The implications of disregarding reality and its laws may have different consequences but they do have consequences.

    Thus laws regarding property rights are not created by man to solve conflicts or better society or some other goal. Natural laws regarding property exist whether people realize and accept them or not.

    Laws are not made to resolve conflicts, conflicts arise when some other person disregards the laws of reality.

    This means Robinson Cruseo can own property before Friday comes to the island. Conflict may arise if and when Friday comes to the island and disregards natural law, that says Cruseo homesteaded property on the island.

    On the other hand Hoppes assumption suggests, Cruseoe can not own property before anyone else comes to the island (he should starve I guess). The only way to establish laws regarding property is for Friday to come to the island and both of them make a law that might resolve potential conflicts.

    Which is putting the cart in front of the horse, and wrong

    Published: October 27, 2009 1:36 PM

  • Andras

    The prevailing dogma in some libertarian circles is that IP is not property due to its lack of scarcity. However, whenever an idea first discovered or recognized it is scarce. It is so scarce it is unique (the reason it was an externality).
    Can we put the horse in front of the cart and say that the definition of IP is the extent of its scarcity. Measuring this extent, however, is a problem. We only know that the two extremes, the unique and the infinite what borders it. The transition from one extreme to the other coincides with the process of internalization of a new idea. In the patent laws the recognition of novelty is awarded by an extended grace period (monopoly) to slow this transition. Although this award is arbitrary it is not unique. Internalization of a physical property goes the same way in the sense that the process (homesteading) is also arbitrary though not with time.
    The advantage of having IP through patent laws that they enable for calculations even before the idea becomes fully internalized. Of all places, mises.org should be expected to comprehend this advantage.

    Published: October 27, 2009 5:45 PM

  • Peter

    Natural laws regarding property exist whether people realize and accept them or not.

    What, independent of men? If all life in the universe was wiped out tomorrow, “natural laws regarding property” would still be in operation?

    Somebody’s “disregarding reality”, but I don’t think it’s the anti-IP folk 🙂

    Published: October 27, 2009 5:51 PM

  • D

    Peter, you paint a picture where humanity has been wiped out totally….and then point fingers at others about ‘disregarding reality’.

    Yikes.

    Published: October 27, 2009 7:12 PM

  • Michael

    tz says:
    “I would also note that most people who reject IP will accept any term in any contract. So what happens if I sell you a book or let you use an invention under the terms you must not disclose the contents? Having no copyright or patents does not mean the information will be free – some may not exist (the same way property whose rights are disputed is usually left undeveloped), and other bits may be encumbered with individual legal and/or technical measures which may be even worse than what exists now.”

    This doesn’t take into account the fact that contracts don’t apply to third parties. The second this idea is revealed to someone who wasn’t a part of the contract, all the original protection is gone.

    And this doesn’t seem to be enforceable. How would you prove that a third party is violating a contract by printing a book or making an invention that takes advantage of an idea. You’d have to be able to trace it back to the person who signed the contract, and then that person would be at fault, not the third party.

    Published: October 27, 2009 8:17 PM

  • Michael Vogt

    ktibuk says:
    On the other hand Hoppes assumption suggests, Cruseoe can not own property before anyone else comes to the island (he should starve I guess). The only way to establish laws regarding property is for Friday to come to the island and both of them make a law that might resolve potential conflicts.

    This may be the strangest argument I’ve seen. How does what Hoppe state in any way imply that the island not a scarce resource in your example? Is it supposedly not scarce because only one person is there? I certainly can’t find a way to interpret his statement to arrive at that conclusion. And how is your Crusoe example any different than when someone homesteads any other property on Earth that nobody else has found yet?

    Of course we don’t have to worry about conflict until a second person comes along, but that doesn’t mean ownership hasn’t been established.

    Published: October 27, 2009 8:32 PM

  • averros

    First of all, “intellectual property” is not property – simply because it is a TEMPORARY monopoly privilege granted by the government.

    It does not exist without government, unlike real property.

    The idea that “IP” somehow does not collide with real property rights is just absurd. The property rights in photocopier and paper permit me to do whatever I want with them. Including copying a book. The claim by the author of the book that I cannot do that are preventing me from exercising my material property rights – while it does NOT cause any material, demonstrable harm to the author. (Loss of income due to non-aggressive acts of other people is NOT harm – otherwise, we’d have to outlaw competition… wait, that’s exactly what IP laws do).

    It is as simple as that.

    Published: October 27, 2009 8:34 PM

  • huh?

    ktibuk said that the following is a clearly positivist approach to law which is polar opposite of natural law : “In other words, assuming that scarcity is the reason for conflict over goods with competing interests[4] and that the very function of property rights is to solve these conflicts peacefully, there is no need to provide property rights for intellectual property, because intellectual goods are not scarce.”

    Anyone care to explain in detail why this is positivist?

    Published: October 27, 2009 8:53 PM

  • Michael Vogt

    Andras said:
    However, whenever an idea first discovered or recognized it is scarce.

    I don’t understand how you can consider an idea to be a scarce resource. If I find an unowned diamond, that diamond is a scarce resource that I own, and nobody can take that same diamond from me without my permission without violating my rights. But even if someone doesn’t reveal an idea to others, someone else could very well come up with the same idea separately. Here someone has the same idea as someone else who had it before, but obviously without a violation of property rights.

    And since when do we need to measure scarcity? With what? Utils? Seems to me that something’s either scarce or it isn’t.

    And what does internalization has to do with property rights?

    Published: October 27, 2009 8:59 PM

  • Russ

    Michael Vogt wrote:

    “Seems to me that something’s either scarce or it isn’t.”

    I think you just hit the heart of the matter.

    Obviously, information isn’t scarce. It mostly comes down to the fact that some people think that a person who comes up with an idea has a right to profit from it. If that is a moral position on the part of a pro-IP person, there’s not much arguing with it. (You can disagree with it, but it’s hard to argue a person out of a moral belief.) If it’s a utilitarian position, though, that’s different. Shakespeare didn’t have copyrights, and yet we aren’t denied Shakespeare’s art. He figured out a way to profit from his work without copyrights.

    Published: October 27, 2009 9:36 PM

  • Del Lindley

    To say that IP rights are non-existent (Hoppe) or to say that they exist but do not extend to material externalities (Bouillon) to me seems to be a distinction without a difference. Once a (public) idea is legally divorced from its material implementation it loses all market value, and any “good” without market value would not constitute property in any meaningful sense. Hoppe makes all ideas appear worthless because they are easily copied. Both approaches imply that idea discovery is an effortless process from which no market value can be derived.

    This conclusion is refuted by the fact that many (if not most) useful commercial ideas are not patented but held as closely guarded trade secrets. Having no external market, the value of these ideas may be gauged by the cost of guarding them. The authors of these ideas, if no one else, appreciate the effort required to create them.

    The material “collision” that supposes an IP owner can effectively own another’s property seems to be wildly overblown. How is the IP owner to know that his patent has been violated without the violator (directly or indirectly) advertizing the fact? The IP owner is concerned with competition in the marketplace, not how individuals or entities act with respect to their private consumption.

    Published: October 27, 2009 9:44 PM

  • Michael Vogt

    tz said:

    And “property rights” has nothing to do with any process involving a peaceful settlement of disputes.

    Are property rights not the basis of any natural rights process involving a peaceful settlement of disputes?

    At some point one or more disputes will not be resolvable – both parties may have an equally good or bad claim or it would depend on some factor which cannot be independently verified.

    If we’re still talking about property, how exactly would two parties have an equally good or bad claim? Why should a dispute not be resolvable? What sort of non-independently verifiable factor do you have in mind? This is so vague as to be difficult to understand what you’re saying.

    Either some authority (typically the state) comes in and says A is right and B is wrong and will do violence to B if he tries to pursue the claim or obtain the property. If there is no 3rd party enforcement of property rights (true 3rd party, not someone hired by either or both disputants),

    Why would someone hired by both disputants not be a “true” third party? If you want an example of a false third party, see every case where the government is both a party in the dispute and the decider in the dispute.

    then the parties can go through whatever private ritual they want, but it will matter who has or can obtain the greatest stealth or most effective weapons – even such battles in an abstract place like an arbitration hearing will have to move to the real world which is where it will have some finality.

    Why assume that stealth and weapons would immediately be used in disputes? Are people really just that eager to engage in a fight to the death or perhaps leave everything in the middle of the night?

    My fundamental problem with the anarchocapitalistic models is the subtle assumption that there will be providers of “protection” instead of providers of mere violence.

    There’s no subtle assumption about private protection agencies. This is explicitly advocated by anarchocapitalists, and if you feel that warlords would take over, that’s an argument you’ll need to back up with some reasoning. As it is today in the U.S., most organized violence happens in the black market, which wouldn’t exist in an anarchocapitalist society.

    That there might be Pinkertons (who often were thugs – are Blackwater contractors today better because they are “private”?),

    They certainly might be if they were on a free market, you had a choice about whether to hire them or not, and they were held responsible when they violated the rights of others.

    but NOT that the free market will produce entrepreneurial, creative thieves and assassin’s guilds – and they would be effective with the full force of the free market.

    Such criminals are hardly rendered ineffective by the presence of government. How would criminals operate any differently in an anarchocapitalist society than one ruled over by government? It’s not like criminals are currently hampered by bureaucratic red tape and regulation.

    And the Thieves merely need to make it uneconomical for the protection agencies to do more than occasionally pay off on the insurance and raise premiums.

    So we’re assuming the protection agencies would supply insurance and also make such bad decisions as to fail in the market place. Nevermind that insurance investigators have always been more effective at finding stolen property than state police forces.

    (“The Professional Thief, written in the 1930s shows how this did work and is probably a better example and is a real case of how things work outside the state, or by going outside it; more recently the series “It takes a thief” on Discovery showing how easy it was to ransack a house on a weekly basis).

    Wait, I haven’t read this, but I’m assuming this story takes place with the state in place. If that’s the case, why should the state’s inability to stop a thief be considered an evidence in the state’s favor?

    They will not catch every thief, so the probability of recovering an amount which would pay for the investigation, apprehension, finding the property, disputing ownership of “stolen property” has to be greater than just doing the paperwork and paying off the claim.

    It would be up to the protection or insurance agency to determine how to be profitable, and at least they would obviously have an incentive to find the thief. If you’ve ever had something stolen and spoken to the police, you’ll quickly find out how interested they are in recovering your goods.

    If a company would only begin investigating claims above $2000, thieves are smart enough to steal only $1900.

    That’s an incredibly arbitrary amount to choose, but like I said, the police practically never bother with looking for stolen goods. They’re only interested in catching criminals. And even when they do, they don’t care about your loss and really aren’t interested in recovering your goods for you.

    There are stateless societies. Afghanistan before 9/11/01. Somalia. The tri-border region in South America and Now parts of Mexico. Returning to the US might be a problem, but these places without any state ought to be paradises. Yet I’ve never heard anyone say they actually want to move there and attempt to set up their anarchocolony in actual

    Sorry you got cut off there.

    First, no anarchocapitalist has ever claimed it would be a utopia, or that their ideas are solely concerned with the mere absence of a state. This is obviously strawman nonsense. There were also stateless societies in Ireland and Iceland, and though they obviously weren’t anarchocapitalist, they were also relatively successful without states. You have to overlook the whole of anarchocapitalist thought to believe that Somalia or just any stateless society somehow represents its ideas.

    Published: October 27, 2009 9:55 PM

  • Michael

    Del Lindley said:
    The material “collision” that supposes an IP owner can effectively own another’s property seems to be wildly overblown.

    Really? Aside from defensive patents, what’s the point of having a patent if you can’t control other’s property? How can you enforce a patent against a competitor and not stop others from using their property

    How is the IP owner to know that his patent has been violated without the violator (directly or indirectly) advertizing the fact?

    I would imagine they typically find out because often their competitors are in the same field they are. It’s worth the effort of looking around if you can take someone like RIM to court over a patent, and I don’t think Blackberry was “advertising” their use of such technology. Or even look at the guy who developed open source software for a train set. If you can knock out a competitor, you might be able to make more money.

    The IP owner is concerned with competition in the marketplace, not how individuals or entities act with respect to their private consumption.

    Check the train set story. There are IP owners who produce absolutely nothing. What exactly is their competition in the marketplace?

    Published: October 27, 2009 10:07 PM

  • ktibuk

    “This may be the strangest argument I’ve seen. How does what Hoppe state in any way imply that the island not a scarce resource in your example? Is it supposedly not scarce because only one person is there? I certainly can’t find a way to interpret his statement to arrive at that conclusion. And how is your Crusoe example any different than when someone homesteads any other property on Earth that nobody else has found yet?”

     

    I am not talking about scarcity. The main point in Hoppes argument is “conflict resolution”, scarcity is just a potential reason for conflict.

    Positivist claim, laws are made to reach an end, in this case a broad goal “resolving conflicts”.

    Natural law theorists claim, laws are not made, they are discovered and conflicts arise only when some individual disregards natural law.

    Clearly Hoppes approach to property rights are positivist and legal positivism has many distasteful consequences.

    If potential conflict is the only reason there are laws regarding property, how can one claim

    “Of course we don’t have to worry about conflict until a second person comes along, but that doesn’t mean ownership hasn’t been established.”

    Published: October 28, 2009 4:36 AM

  • ktibuk

    There are two main epistemological approaches in philosophy.

    1. Reality and laws regarding reality exists independent of men. Men percieves, realizes and acts according to these realities in order to survive.

    Take “the law of gravity”. It doesn’t exist because men gathered and decided they didn’t want to fly off to nothingness. Gravity exists independent of men. People may realize this fact of reality and act accordingly or they may not. Both actions have consequences. In the case of the law of gravity consequneces of defying reality, jumping off of a cliff and flapping your arms for example, have direct and dire consequences so not many people dispute it.

    Laws regarding property rights (or economics laws) are just the same. They are dictated by reality. But in this case defying reality has indirect consequences so people may defy reality, for a while at least.

    2. Crudely, reality is dependent on the mens mind. Reality is what men wants and can be bent according to mens wishes. Or in the more sophisticated Kantian sense, even if there is some objective reality it can not be perceived by men, thus the main concern of men is the reality that is dependent of mens mind.

    This is the basis of positivism. At least legal positivism, because as I mentioned positivism is physics or chemistry is quickly identified as schizophrenia.

    Hoppes definition of property rights is tainted with legal positivism. The consequence is the oppostion of IP (IP socialism) in this case, but if one follows these assumptions to their logical ends you would reach nothing but full blown socialism

    Published: October 28, 2009 4:59 AM

  • Peter Surda

    @ktibuk:

    > There are two main epistemological approaches in
    > philosophy.
    Yes. And your “property theory” is clearly positivist. IP cannot exist without a mind, but (classical) property can. If there is an apple and a horse eats it, or if an eruption on Sun causes disturbances in EM spectrum around the Earth, the consumption of these resources becomes impossible even in the absence of people. But no phenomenon could prevent a parrot from singing “I’m bad” or a monkey from writing Hamlet. Men have to come up with that and hit the poor animals with a stick.

    I believe Hoppe’s argument wasn’t necessarily that conflict resolution is the justification of property. It could very well be a byproduct. Or that conflict resolution is a necessary condition, not a sufficient one, for rights.

    I do not like the term “scarce” when used in the context of property, I prefere “rival”. Non-rival does not imply infinite supply or zero cost (as non-scarce seems to, which confuses people).

    IP socialism would be if you were forced to disclose information or provide services against your will without an underlying contract. For example some of the people in the Free Software movement would like it to be compulsory for everyone to supply source code if they distribute binaries. Or make DRM illegal. In my opinion it would be more accurate to describe that approach as IP socialism.

    If I was to accept Hoppe’s definition of IP (and its non-overlappingness with the material world), in that case my position might be described as IP socialism: If an immaterial good is not a subject to a contract you aggreed to, you can consume it unrestricted. But I don’t aggree with Hoppe’s definition, because that shifts the focus into externalities (i.e. utilitarian approach).

    If you insist that your approach is natural, how do you naturally set boundaries of this immaterial property? What about the objections I wrote about in previous posts? E.g. translations, paraphrasing, change of form, usage by ownerless animals and machines? What if person A says “aguya beal afiruq” and person B says “oh, that gives me a great idea”, does that mean person B is using A’s property?

    Cheers,
    Peter

    Published: October 28, 2009 6:07 AM

  • ktibuk

    Peter Surda,

    Firstly I claim Hoppes definition of property is “tainted” with positivism. It is clearly not totally positivist, or he would be a socialist.

    Secondly, natural law doesn’t say men is totally irrelevant. Of course men is always in the middle. Reality may be independent of men but it certainly relates to men. We are all men after all and we are the ones thinking and arguing about these issues.

    The product itself (not only IP but also tangible property) may be the creation of the mind but the law regarding IP is not a creation of men. At least not all. Patent laws for example are the result of a positivist approach to a natural law subject. That is why they are always at the center of attack. And this is not unique. There are millions of written legal code based on natural law but perverted by positivism.

    But according to Hoppe not only property is mens making but laws regarding property, or property rights are mens making. They are means to an end. And that end is, as clearly stated, a conflict free world.

    Again.

    Laws are not made to resolve possible conflict, but conflict arises only when at least one party disregards natural law.

    Published: October 28, 2009 6:51 AM

  • Peter

    Positivist claim, laws are made to reach an end, in this case a broad goal “resolving conflicts”.

    Natural law theorists claim, laws are not made, they are discovered and conflicts arise only when some individual disregards natural law.

    These are not conflicting ideas as you claim; the natural law theorist (at least, the sensible ones) are not claiming there’s some sort of Platonic reality in which “laws” are floating around waiting to be discovered by physicists, which is what you’re implying here.

    Published: October 28, 2009 7:01 AM

  • Peter Surda

    @ktibuk

    > Firstly I claim Hoppes definition of property is
    > “tainted” with positivism.
    I don’t agree. I think you are misinterpreting his arguments and have not thought about the article thoroughly. I have read some of his previous work. He clearly makes a distinction between the normative and the positive but his wording is often overly complicated and takes time to comprehend correctly.

    > Secondly, natural law doesn’t say men is totally
    > irrelevant.
    In a way, they are. There is a distinction between being an originator of the law and being a passive observer of the law. A passive observer is not the cause of the law.

    > The product itself (not only IP but also tangible
    > property) may be the creation of the mind but the
    > law regarding IP is not a creation of men.
    After all this time you have failed to explain how it is anything but. As I said previously, IP is only the right to exclude, not the right to use and trade. So, how is the right to exclude using immaterial goods not a creation of men? How is it anything but a utilitarian experiment?

    > But according to Hoppe not only property is mens
    > making but laws regarding property, or property
    > rights are mens making.
    Again, misinterpretation. Hoppe knows the difference very well, probably better than either of us.

    > Laws are not made to resolve possible conflict,
    This is redundant. Natural law (should it exist) wouldn’t be created by men, and men’s law obviously has conflict resolution as one of the aims.

    > but conflict arises only when at least one party
    > disregards natural law.
    No. Conflict arises whenever there is a disagreement over the use of scarce resources. It doesn’t matter what the rights are or should be. You are probably mistaking conflicts for injustice. That’s not the same thing.

    Cheers,
    Peter

    Published: October 28, 2009 8:19 AM

  • Michael A. Clem

    I’m not going to defend Hoppe, other than to say I think you’re misinterpreting what he’s said. It would be absurd indeed for an anarchocapitalist to rely upon positivistic law for the foundation of an anarchocapitalist society. Natural law is more about human nature and how people interact with each other based upon that nature rather than about any particular legal system that may be built upon that.

    But to get back to the topic of IP, if it requires posivitism to have IP, then it is clearly unnatural and could not exist without an authoritarian government. However, the assumption that a creator cannot profit without IP is just that, an unwarranted assumption. There are, and may be, many different ways to profit. If an idea is worth something to someone, the market will value it and treat it accordingly. People will profit from their ideas. The mistake is in thinking that these ideas must be considered “property” and/or that some positivistic law must exist in order for people to profit from their ideas.

    An unskilled laborer is valued for the labor he does–showing up for work and punching in on the timeclock is merely a prerequisite for the labor he does. Likewise, having an idea, however unique it may be, is still just a prerequisite for implementing the idea and making a profit from it–the profit comes from how the idea is used, not merely for having the idea.

    Published: October 28, 2009 10:39 AM

  • Michael

    @ktibuk

    I can’t make any sense out of your argument. Hoppe’s recognition of conflict as a necessary (but not sufficient) condition for property rights. Natural rights come out of the nature of things. The nature of our existence includes multiple persons who can come into conflict with one another. I don’t see how this is problematic.

    Perhaps you can answer this question: How are property rights going to matter if there’s only one person on earth? How exactly would you conceive of natural rights in this situation in a way that would actually matter?

    I also have never seen your definition of positivism used in philosophy or in the legal profession. Where are you getting this stuff?

    Published: October 28, 2009 6:16 PM

  • Greg

    Either there is a property right to matter or a property right to patterns. Both cannot exist at the same time.

    “Intellectual property” rights would be rights to patterns. They would be superior to rights to matter, because rights to patterns would include rights to matter.

    Rights to patterns are therefore not compatible with libertarianism.

    Published: October 28, 2009 7:19 PM

  • ktibuk

    I am not misinterpreting anything since the assumption, the axiom, at the root of this “property theory” is quite simple and already quoted and repeated endlessly by IP oppononents.

    “”In other words, assuming that scarcity is the reason for conflict over goods with competing interests[4] and that the very function of property rights is to solve these conflicts peacefully”

    Thus the conclusion,

    “there is no need to provide property rights for intellectual property, because intellectual goods are not scarce.”

    I am challenging the assumption. I am saying it begs the question and I am also saying this is a typical positivist approach to law.

    And actually Michael asked the relevant question which I have brought up many times..

    “Perhaps you can answer this question: How are property rights going to matter if there’s only one person on earth? How exactly would you conceive of natural rights in this situation in a way that would actually matter?”

    If the reason for property is the possibility of conflict amongst individuals, how can Robinson Cruseo homestead anything and make anything his property?

    Property is property whether there is one person or many. It is dictated by nature, by reality. If humans doesnt homestead and use natural resources they can not stay alive.

    The core property, self ownership, is also dicated by reality not the whims of men. Even a slave is ultimate decision maker. He can rebel at anytime because he is in total control of his actions, he k-just choses not to rebel because of the possible consequences.

    This is not so because, people got together and decided each would have total and ultimate control over themselves because there may be conflicts otherwise. This is so because it is. And conflicts arise when someone else tries to enslave another because this action is against the laws of reality, nature.

    Coming back to IP.

    There is positivism in IP law, and I never denied it. All laws are tainted with it but the most perverse is patent laws. Patent law is natural law, perverted by positivism Also there are problems with copyright laws like time limit on ownership.

    But the core IP, the basic right to be left alone, is a natural right as any other.

    You can not arbitrarily dismiss it because you think you can make the law and decide what is a natural right or not.

    Published: October 29, 2009 2:57 AM

  • Peter Surda

    @ktibuk:
    Even if we assume that everything you write (about property making sense even if there are no people) is correct, you still haven’t explained how IP follows from nature. I can maybe see how you can “kind-of-homestead” an immaterial good (in a very narrow sense), but how can you naturally deduce its boundaries? There is no natural connection between an original and a copy, translation, paraphrasing, format change etc. That connection only exists in people’s minds and that contradicts your original assumption that it is independent of them.

    How do you prove that the immaterial “property” they use is identical? The only thing you can do is to compare some physical manifestations and try to interpret them.

    Without men (or aliens, whatever), there is no interpretation. Without interpretation, there are no boundaries. Without boundaries, there is no exclusion. Without exclusion, there is no IP. Therefore, without men there is no IP.

    Cheers,
    Peter

    Published: October 29, 2009 4:37 AM

  • Shay

    ktibuk wrote, “If the reason for property is the possibility of conflict amongst individuals, how can Robinson Cruseo homestead anything and make anything his property?”

    I think that it is meaningless until someone else arrives on the island. At that point, Crusoe has effectively already homesteaded the island.

    “Property is property whether there is one person or many. It is dictated by nature, by reality. If humans doesnt homestead and use natural resources they can not stay alive.”

    I tend to think of property ownership as simply meaning whoever has the ultimate decision about its use, and whatever it is cannot be used for more than one thing simultaneously. So a lone person inhabiting a place is effectively the owner of it all, unless perhaps there’s a fierce lion that won’t let him near a certain place. If there is a state that can take “your” property if you don’t pay taxes, for example, then the state effectively owns it and is simply allowing you some input on its use.

    “This is not so because, people got together and decided each would have total and ultimate control over themselves because there may be conflicts otherwise. This is so because it is. And conflicts arise when someone else tries to enslave another because this action is against the laws of reality, nature.”

    But the aspect of conflict is an explanation of how such laws come into existence. There wouldn’t be any if there weren’t the aspect of conflict. If there were no issue of deciding who decides what is done with something, then what would property mean? It’s all about the potential conflict when more than one person wants to decide what is done with something.

    Published: October 29, 2009 5:11 AM

  • Peter

    “In other words, assuming that scarcity is the reason for conflict over goods with competing interests[4] and that the very function of property rights is to solve these conflicts peacefully”

    Thus the conclusion,

    “there is no need to provide property rights for intellectual property, because intellectual goods are not scarce.”

    I am challenging the assumption.

    Which assumption? That scarcity is the reason for conflict over goods with competing interests or that the function of property rights is to solve conflicts peacefully? Both seem self-evident…what is your argument?

    Published: October 29, 2009 7:26 AM

  • Peter

    This is not so because, people got together and decided each would have total and ultimate control over themselves because there may be conflicts otherwise.

    Oh, is that what you’re arguing with? Well, sure; you’re right…but nobody ever made the claim you’re disputing! “The function of property rights is to resolve conflict” is not the same as “some people decided to make up property rights to resolve conflict” (after all, any process could do that!)

    Published: October 29, 2009 7:29 AM

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Thick and Thin Libertarians on IP and Open Source

From the Mises blog. Archived comments below.

Thick and Thin Libertarians on IP and Open Source

10/23/2009 Stephan Kinsella

IP

In Thin Liberalism and the Folly of Burning Bridges, Timothy Lee makes (at least implicitly) several interrelated claims. First, that libertarians tend to oppose net neutrality. Second, that “free software intellectuals like Richard Stallman and Eben Moglen” are anti-IP. Third, that this is compatible with libertarianism. Fourth, that Moglen and Stallman, despite some unfortunate rhetorical excesses, hold views that are not really inimical to the free market. Fifth, that some libertarians, who (properly?) oppose net neutrality, wrongly accuse the anti-IP/free software types as being unlibertarian. Finally, that the reason these libertarians get it wrong is that they have succumbed to thinness.

It seems to me that most of these claims are at least partly incorrect, or confused. Let’s take them one at a time.

  1. Libertarians tend to oppose net neutrality. (I’m inferring this position from Lee’s post.) Libertarians seem to me to be confused about this area, but the principled ones I am familiar with of course oppose net neutrality. I oppose it. On the other hand, the various forms of state support received by the telecom and other Internet infrastructure corporations should of course be abolished, which might alleviate most of the concerns of (left?) libertarians sympathetic to the aims of the net neutrality crowd. But libertarian position is clearly to oppose any state interference with the market to impose “net neutrality.” Service providers should be able to charge whatever they want, in whatever manner or tiers they wish, if the market supports it; at the same time, any state favors, monopolies, protectionist regulations, etc., should of course also be abolished.
  2. Free software intellectuals like Richard Stallman and Eben Moglen are anti-IP. (I’m inferring this position from Lee’s post.) Not really. The problem, from the libertarian perspective is not that Moglen and Stallman are anti-IP; it’s that they are not anti-IP enough. If I am not mistaken, Moglen, for example, is not completely opposed to copyright and patent. (See my Eben Moglen and Leftist Opposition to Intellectual Property.)
  3. The ideas of open source/free software/anti-IP are compatible with libertarianism. Yes, this is true, as I have argued extensively. But this is a strange argument coming from Lee, who himself is not opposed to IP in any principled way (and neither are the leftist free software types, as noted above). For example, as I noted in $30 Billion Taxfunded Innovation Contracts: The “Progressive-Libertarian” Solution [see also Libertarian Favors $80 Billion Annual Tax-Funded “Medical Innovation Prize Fund”], Lee has written: “I can’t agree with Baker that all copyright and patent monopolies are illegitimate. Copyright and patent protections have existed since the beginning of the republic, and if properly calibrated they can (as the founders put it) promote the progress of science and the useful arts. Like any government intervention in the economy, they need to be carefully constrained. But if they are so limited, they can be a positive force in the American economy.” Unlike the views espoused by confused, quasi-economically illiterate leftists and utilitarian, minarchist libertarians, the proper, principled, libertarian position is that patent and copyright are completely and utterly unlibertarian and unjustified.
  4. Moglen and Stallman, despite some unfortunate rhetorical excesses, hold views that are not really inimical to the free market. I tend to agree with Lee that various comments about “a bottom-up, participatory structure to society and culture, rather than a top-down, closed, proprietary structure” and “the democratizing power of digital technology and the Internet,” etc., are not anti-libertarian. However, as noted in Eben Moglen and Leftist Opposition to Intellectual Property, Moglen holds clearly unlibertarian views, such as his view that free bandwidth is everyone’s “birthright” (as socialist Finland believes, too-it recently enacted legislation making broadband access a legal right); and his opposition to regulating the EM spectrum as a property right (and his confused view that it already is, despite the state’s nationalization of the EM spectrum).
  5. Some libertarians, who (properly?) oppose net neutrality, wrongly accuse the anti-IP/free software types as being unlibertarian. This appears to be correct. Some libertarians are pro-IP and thus, mistakenly believing the free software socialists to be opposed to IP, confusingly criticize them on these grounds. In this respect, the confusion on both sides is similar to confusion about IP held by leftists and traditional libertarians: both the left and traditional pro-IP libertarians accept the false assumption that intellectual property is a legitimate type of property right. Libertarians who accept this premise thus favor IP, because they are pro-property; and leftists oppose IP because they are hostile to private property rights and mistakenly believe IP is a type of private property right.
  6. The reason these libertarians get it wrong is that they have succumbed to thinness. So here we have Lee, who is pro-IP, criticizing libertarians for being pro-IP. Leaving this bizarre critique aside, is Lee right that “thinness” is what makes some libertarians too pro-IP? Lee maintains that “A libertarian whose conception of liberty is confined to limited government is going to be left rudderless when confronted with a pro-liberty movement whose concerns are orthogonal to the size of government.” I think this is just confused. Thickness is actually problematic since it just muddies the waters, conflating issues pertaining to the permissibility of interpersonal violence with other interpersonal norms and institutions. The thickness theorizers add nothing of substance to our understanding of libertarian principle; instead, they pointlessly link the libertarian opposition to aggression to non-rigorous, malleable leftist gremlins like “hierarchy” and “bossism” and “pushing people around.” I am, in some sense, a “thin” libertarian yet oppose IP root and branch, on principled, pro-property, pro-rights, pro-individualist, non-leftist grounds. Thinness is not the cause of confusion about IP. Rather, it is the lack of principle. It is the lack of principle and the adoption of flawed, bankrupt utilitarian ideas which leads libertarians to try to be “moderate”, to support some IP, but not too much; and to be minarchist–that is, statist–rather than anarchist.

Update:

Discussing Stallman admits GPL flawed, proprietary licensing needed to pay for MySQL development, I mentioned to some friends this post and others criticizing lefists who have an unprincipled, nonlibertarian, non-abolitionist, economically illiterate approach to IP. I noted that GPL requires copyright to work, and mentioned these posts: Copyright is very sticky!, Eben Moglen and Leftist Opposition to Intellectual Property, and Leftist Attacks on the Google Book Settlement.

A friend, David Christy, said the following about Stallman (edited; posted with permission):

I met RMS once about 10 years ago. People were dogging him about the GPL and profit, and his responses were like what one would expect to see on Mises.org today about IP. It was pure enlightenment until I suggested that without copyright the market would probably favor people who share source openly to promote their code and create a similar effect to the GPL. The idea that people would share their source without the GPL forcing them to seemed to shock him. He’s almost like a principled libertarian about IP in every other way, but on every non IP issue is a hard core socialist. He is a genius in a lot of ways, but when it comes to freedom and liberty outside of IP, [he has flawed ideas]. He literally gave me these gazing stares, even an hour later like “how could you hurt me so bad,” and run away like a little boy or like I was a secret agent traitor. …

I remember at the time I didn’t know much about his other views. I looked at him like a hero because the GPL broke the copyright cartel and freed software from statist intervention bringing forth the bounties of free market cooperation. I saw the free software movement as a pure freedom and free market movement. When I realized that he saw me like a greedy capitalist traitor, I gotta say, it rather hurt and I took it personally hard.

Archived comments:

Geoffrey Allan Plauché October 24, 2009 at 12:41 am

Stephan,

Without getting into the thick vs. thin on IP issue: As you well know, the theoretical framework of thick libertarianism is not inherently leftist. As you well know, even Hoppe is a thick libertarian, whether or not he self-consciously thinks of himself as one and whether or not he explicitly makes use of the different types of thickness identified by Johnson and Long. And of course, as you well know, I disagree with your as yet unsupported, and probably never to be supported, claims about thick libertarianism as such.

REPLY

Stephan Kinsella October 24, 2009 at 12:53 am

Geoff, Yes, I do know you disagree with me. Not sure why you are telling me what I already know, but I appreciate the reminder.

In any event, the point is–”thinness” is not the reason some libertarians are pro-IP. Usually it’s because they are utilitarian, or accept Rand’s confused ideas about creation being an independent source of rights. Rand herself was hardly “thin.” So you don’t disagree with me here, do you, that Lee’s identification of thinness as a cause of fallacious views on IP is wrong, do you?

And second, do you make your comments above qua libertarian, or as a “thick” libertarian?

REPLY

Tim Lee October 24, 2009 at 7:21 am

Stephen,

Thanks for the thoughtful post. However, I’m confused about why you focus so much on whether I’m for or against “IP” (a phrase I don’t care for, but I’ll follow your terminology). In fact, I never mention “IP” in my post. And there’s no necessary connection between one’s views on “IP” and one’s views on free software. So I’m puzzled at your general approach of attributing “implicit” views (i.e. views I didn’t actually express) to me and then criticizing me for them!

REPLY

Stephan Kinsella October 24, 2009 at 10:32 am

Tim, thanks. You’re right–I was reading a bit more of IP-ness into your own remarks than are there explicitly. Though to my mind it’s the only way to make all this coherent: what other “radical agenda” of the free software types can possibly be unlibertarian? I assumed it’s their (ostensibly) anti-IP views; e.g., in the Epstein piece you linked to as an example of how “thin” libertarians go out of their way “to antagonize the free software movement,” he is quoted as saying, “Intellectual property often creates strange bedfellows on the left and the right sides of the political spectrum.”

So, … this is obviously the common theme. So the question is–why didn’t you mention IP? Is it the dog that didn’t bark? :)

REPLY

Tim Lee October 24, 2009 at 12:38 pm

Right, I think it’s true that many libertarian critics of free software are “strong IP” advocates who see free software as an attack on copyright protections. But I think you’re right that this is a misinterpretation of Stallman’s views: he uses copyright as a way to preempt downstream users of his software from creating proprietary software, something he wouldn’t be able to do in a copyright-free world.

Anyway, I didn’t discuss “IP” because that’s not what my post is about. I like free software not as a proxy for my views on “IP,” but because I’m a computer programmer and so I know from first-hand experience that free software tends to work well. There are all sorts of things I could say about the implications for copyright and patent law, but that just wasn’t the subject of this particular post.

REPLY

Stephan Kinsella October 24, 2009 at 1:20 pm

Tim: “I didn’t discuss “IP” because that’s not what my post is about. I like free software not as a proxy for my views on “IP,” but because I’m a computer programmer and so I know from first-hand experience that free software tends to work well. There are all sorts of things I could say about the implications for copyright and patent law, but that just wasn’t the subject of this particular post.”

Fine–but I don’t know “free software,” divorced of policy issues like IP, has to do with libertarianism then. “What software works well” is not in the domain of libertarian normative theory.

REPLY

Deefburger October 24, 2009 at 2:43 pm

Thanks for the clarification. I run into this all the time. The way I see it, most people are confused by the ends vs. means arguments thrown about.

The statement “Everyone should have access to affordable Healthcare” is an example of common ends. These ends, as stated, are reasonable and difficult to deny as worthy goals. The trouble arises with the means that are employed to achieve the goal.

Same is true of “Net Neutrality”. The goal, is to have a free and open internet. It’s the means, say via state regulations, mandates, etc. that create the opposite resluts from the stated goals. Over and over throughout history, lofty goals have been completely missed by regulatory force.

Libertarians place no faith in government. Instead, we place our faith in the common person, and the decisions they make for themselves. Free markets only work if people trust themselves and each other, rather than distrusting everyone except the regulators.

Most people cannot make the connection between trust in themselves, trust in the public-at-large, and distrust of regulatory bodies as the cornerstones of freedom and free society.

Communism, Fascism, Socialism all place the distrust in the individual and the people-at-large, and the concentrated trust of “society” in a handful of “regulators”.

This is an error in judgement at the very least. All of us as individuals are capable of regulating ourselves. Together, under the same circumstances, we tend to the same solutions. But put all the decision making capacity of an entire society into the brains of a few anointed ones is folly. The only exception to this is in time of war or disaster, or the voluntary raising of a leader in commerce. It is only important for the body to have a head when there is need for quick decisions. This is why we have an executive branch of government. This is why we have hiearchy in business.

But we don’t need a “head” for every social problem!

REPLY

Tracy Saboe October 24, 2009 at 8:10 pm

Don’t quite understand what you mean by thin vs thick.

But anyway,

TRacy

REPLY

George P. Burdell October 24, 2009 at 8:29 pm

The main take home for me from the original article and then the blog response was that there is still a lot of work to do to explain to some libertarians and the rest of the nation that IP is not property. Mr. Lakely, the author who wrote the original article, even goes as far as to say that IP is so important, that the framers “positively” protected it in the Constitution. Of course, Article 1, Section 8 only gives the Congress power to grant copyrights and patents, if it chooses. This is just a prime example of how many, well intended people, continue to twist history, logic, et al, to fit their misconceived ideas.

Also, I think a lot of ground can be gained by pointing out that the only reason that telecoms have the opportunity to have a monopoly and do “bad” things is because the government, especially local governments, have given the telecoms their position through franchising, regulation, miscellaneous laws, and the federal control of the electromagnetic spectrum. So, if government caused the problem, instead of giving government more power, auspiciously to fix its own shortcomings, why not deregulated and free the market up? Why is more government going to fix problems that are caused by government control and direction?

Lastly, the fear that the telecoms will do various “bad” things for the Internet is possibly a bigger farce than the run up to the Iraq war. No telecom has seriously proposed doing something that would break the supposed principals of net neutrality. Second, if they did, they would be put out of business from the backlash. Comcast already found this out the hard way when they tried to shape bit-torrent traffic, which actually might have been justified. Lastly, the telecoms could not do most of what people are afraid they might, from a purely technical point of view. Between proxy servers, encryption, and other technologies, no one can control the Internet, except that is governments, who can theoretical shutdown all networks with police actions and fiat. Look at China and Iran, those governments try to cut of their citizens off and can not, except for shutting down practically all traffic leaving and entering the country. But, ask the average, technically savvy Chinese or Iranian citizen, and they will tell you they can do whatever they want on the Internet, no matter what the government tries.

REPLY

Tim Lee October 24, 2009 at 9:02 pm

“‘What software works well’ is not in the domain of libertarian normative theory.”

Which was precisely my point: the free software movement is not hostile to libertarian values, and so it’s foolish for libertarians to go out of their way to attack it. I think this is a valid point irrespective of one’s views on “IP.”

REPLY

Stephan Kinsella October 24, 2009 at 10:21 pm

Tim Lee: “the free software movement is not hostile to libertarian values, and so it’s foolish for libertarians to go out of their way to attack it. I think this is a valid point irrespective of one’s views on “IP.””

Could be, but aside from IP-based arguments it’s hard to think of any valid reason for a libertarian to attack free software advocates. Anyway, I see no reason to think that it’s “thinness” that leads them astray.

REPLY

Crosbie Fitch October 25, 2009 at 1:06 pm

George, Article 1, Section 8 DOESN’T even give Congress power to GRANT copyrights and patents.

It gives congress power to SECURE the exclusive right that writers and inventors are RECOGNISED to have by nature. Writers and inventors are naturally able to prevent others accessing those works exclusive to them, and consequently have a natural exclusive right to those works that should be secured by a suitably empowered government.

There was a suggestion that monopolies in literary and technological works should be added to the bill of rights, but this thankfully didn’t go ahead. Even so, copyright and patent were legislated anyway. No-one at the time had sufficient clout to point out that not only were such monopolies not sanctioned by the Constitution nor any amendment, but that the Constitution (or bill of rights) CANNOT GRANT PRIVILEGES! (or legal rights as IP lawyers predictably prefer them termed today)

See Rights of Man:

Human rights originate in Nature, thus, rights cannot be granted via political charter, because that implies that rights are legally revocable, hence, would be privileges:

It is a perversion of terms to say that a charter gives rights. It operates by a contrary effect — that of taking rights away. Rights are inherently in all the inhabitants; but charters, by annulling those rights, in the majority, leave the right, by exclusion, in the hands of a few . . . They . . . consequently are instruments of injustice.

The fact, therefore, must be that the individuals, themselves, each, in his own personal and sovereign right, entered into a compact with each other to produce a government: and this is the only mode in which governments have a right to arise, and the only principle on which they have a right to exist.

And for the record, I am a libertarian proponent of intellectual property, but that’s natural IP, without unnatural monopoly.

REPLY

Crosbie Fitch October 25, 2009 at 1:19 pm

I should add that just as the Constitution cannot grant privileges, nor can it empower congress to grant them.

Thus the monopolies of copyright and patent are unconstitutional privileges and should be abolished.

Just to be clear about it.

REPLY

Crosbie Fitch October 25, 2009 at 1:20 pm

I should add that just as the Constitution cannot grant privileges, nor can it empower congress to grant them.

Thus the monopolies of copyright and patent are unconstitutional privileges and should be abolished.

Just to be clear about it.

REPLY

Crosbie Fitch October 25, 2009 at 1:24 pm

Let this serve as a DMCA takedown notice against the unauthorised duplicate copy that was made of my preceding comment.

(feel free to delete this comment along with the spurious duplicate)

REPLY

Russ October 25, 2009 at 10:43 pm

If I understand it correctly, Stallman’s position, although it is couched in the terminology of “free speech” (as opposed to “free beer”), it’s actually opposed to free speech. His GNU Public License says that if you modify his GPLed code, and share the resulting binaries, you *must* share your code as well (I’m not sure about the LGPL). Where then is the right to *NOT* speak? He claims he owns the rights to control duplication of his code, and will only let you distribute your modifications of his code if you do so according to his terms.

Thinking that you have the right to control the “speech” of others doesn’t seem particularly libertarian to me.

REPLY

Kid October 26, 2009 at 1:36 am

Copyright is necessary to enforce releasing the source code.

Without copyright, though, it is hard to imagine any serious developers to conspire to keep their source code secret. That is a development model that, without copyright, simply does not work.

I prefer to see the GPL as a copyright-neutralizing license: it uses copyright to create the conditions that would be there if copyright didn’t exist.

REPLY

PirateRothbard October 26, 2009 at 3:28 pm

The big difference between the open source people and Kinsella is that they are opposed to trade secrets. This is a big deal, because even if IP is abolished, MS can still keep the code secret as it sells the binaries.

I just think these are two very different movements. And of course, I like Kinsella’s better!

REPLY

Russ October 26, 2009 at 4:08 pm

Kid wrote:

“Without copyright, though, it is hard to imagine any serious developers to conspire to keep their source code secret.”

It’s not hard to imagine at all. Let’s say that some company has a binary copy of an un-copyrighted but non-open-source application. They would find it so much more useful, if only it had a few extra features. They contact you, the developer, and you tell them that you would be happy to add those features for a small fee. As long as the fee is not so large that it would be more cost-effective for them to reverse engineer the binary, it could be reasonable for them to go along with your deal.

REPLY

Russ October 26, 2009 at 4:17 pm

Kid wrote:

“I prefer to see the GPL as a copyright-neutralizing license: it uses copyright to create the conditions that would be there if copyright didn’t exist.”

No, it doesn’t. A world without copyright would *allow* free “speech” (in the form of sharing binaries). The GPL not only allows this form of speech, but *requires* that you share source code, which in a world without copyright you may not wish to do.

This is somewhat unrelated to the above, but I wonder: has the GPL ever been tested in a court of law in the USA? If so, what was the result?

REPLY

Crosbie Fitch October 27, 2009 at 12:54 pm

Russ, in a world without copyright you can’t sell copies, so no-one is going to be interested in keeping the source code secret, especially given it is the source code they have to start selling.

Even today, a software engineer employed by Microsoft who told them they should be happy paying him for his binaries as they were just as effective as his source code (which he’d prefer to keep to himself) would be fired on the spot.

The same thing applies post-copyright when people start selling software instead of copies. No purchaser is going to pay good money for a binary. They’ll demand the source or no deal.

REPLY

Michael A. Clem October 27, 2009 at 1:35 pm

Crosbie, what you said makes no sense. Without copyright, companies would be more interested in keeping the source code secret, not less, unless they were ideologically attached to open source. What would happen between a Microsoft employee and Microsoft is a contractual issue, not a copyright issue, and is hardly relevant.
People would still buy binaries if they have no interest or ability in using the source code, especially if the binary satisfies their computing needs. They would most likely also purchase a service contract to deal with updates or bugs from the company they bought the binary from, much as companies have service contracts with other companies for updates or bugs to open source software.
No doubt some would prefer the source, but if they’re that sophisticated, they probably already have their own coders who create original software as well as tweak existing software. But by no means is this appropriate for all users and companies, if only because of the increased productivity created from the division of labor.

REPLY

Stephan Kinsella October 27, 2009 at 1:41 pm

Clem, Crosbie always trots out this incomprehensible line on the Against Monopoly blog–that he’s for IP but not for government privilege. I’ve never been able to get him to explain it in a coherent manner.

REPLY

Russ October 27, 2009 at 9:20 pm

Crosbie Fitch wrote:

“Russ, in a world without copyright you can’t sell copies, so no-one is going to be interested in keeping the source code secret, especially given it is the source code they have to start selling.”

I’ve already explained how a developer could make money by giving away binaries, and then selling his services making customized modifications. And that’s just one of many possibilities. They wouldn’t have to sell source code.

“Even today, a software engineer employed by Microsoft who told them they should be happy paying him for his binaries as they were just as effective as his source code (which he’d prefer to keep to himself) would be fired on the spot.”

This is true, but completely irrelevant.

“The same thing applies post-copyright when people start selling software instead of copies. No purchaser is going to pay good money for a binary. They’ll demand the source or no deal.”

If a company says “$X for a binary, $100X for the source”, then there will be customers who would live without the source, believe me. I used to work for a company that made machine tools. The customer demanded the source code, which the machine tool company keeps proprietary. The president of the machine tool company said, “OK, the source is yours for $2 million, plus you sign a non-disclosure agreement.” (That was more than the cost of the automotive assembly machine that went with the software.) The customer stopped demanding the source code.

REPLY

a liberal thinker October 28, 2009 at 12:55 am

As hard as it may seem for some leftists: The FOSS movement is a copyright (and therefore ip) movement.

They do not want to abolish ip, but rather want it to be “better” in the future.

That (implying the property rights in intellectual works) is not libertarian.

REPLY

Crosbie Fitch October 28, 2009 at 11:24 am

It’s evidently very difficult for many to imagine a market for intellectual work in which copyright and patent have been abolished. NDAs are irrelevant if copyright no longer suspends an individual’s liberty to make/distribute copies. Contract cannot alienate someone from their freedom of speech.

Aren’t there any other natural rights libertarians here?

Anyway, if a software engineer is truly able to command a price of $2million on their software in a free market then that is the market price, and fine. If they are able to retain their market niche and can continue selling binary enhancements at $2k because no-one wants the source code (their IP without monopoly) at $2m then that’s fine too.

Are there really no competitors in the future?

Either the source code is indeed worth $2m, or it’s overpriced and a competitor can knock it out for $1m or less.

The free market rapidly brings the price of software (source code) to accord with the labour cost.

Binaries become free demonstrations that the software development (source code) has been produced to spec.

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Radical Patent Reform Is Not on the Way

Related:

Recent:

Stephan Kinsella, “Radical Patent Reform Is Not on the Way,” Mises Daily (Oct. 1, 2009). Text and archived comments below.

Update (May 5, 2026): The law has changed a bit since I wrote this in 2009. I have noted since1 that there have never been any legislative improvements to patent law (or copyright law) since its inception other than the 1997 limits on the ability to use patents to prevent surgeons from performing surgical procedures patents by other doctors and an expanded prior commercial user defense in Obama’s 2011 America Invents Act. As I wrote in Trump’s Plan to Raise Patent Office Fees: Thumbs Up:

Industries dependent on the patent and copyright monopoly grants scream bloody murder any time someone suggests any slight improvement.2 No radical reform is ever proposed. The only legislative improvements that come to mind are the 1997 limits on the ability to use patents to prevent surgeons from performing surgical procedures patents by other doctors3, and an expanded prior commercial user defense in Obama’s 2011 America Invents Act.4

(There are judicial, as opposed to legislative, changes from time to time since the courts are stuck with interpreting non-objective, made-up law, and sometimes this is a slight improvement. For example, at present it’s somewhat harder to get injunctions in patent cases5 or to obtain patents on business methods and software inventions,6 and of course the patent bar and IP shills are still going apeshit about this.)

See patent shill Gene Quinn’s bellyaching about this in Gene Quinn, “Purported Plan to Charge Patent Owners a Percentage of Patent Value is Fraught with Peril,” IP Watchdog (July 28, 2025):

And, of course, there is the elephant in the room, which is the unilateral dismantling of the U.S. patent system over the last generation. As a result of patent eligibility requirements run amok, some of the most innovative and valuable inventions of this generation are simply not patentable. Much of the innovation in the software, biotech and medical device industries have been summarily executed by the United States Supreme Court’s patent eligibility decisions in Bilski, Myriad, Mayo and Alice, including many artificial intelligence innovations. And, even when the USPTO is willing to grant patents in the software, artificial intelligence, biotech and medical device spaces—which isn’t often—those patents almost always fall to eligibility challenges in federal court, and often fall to novelty and obviousness challenges at the hyperactive Patent Trial and Appeal Board (PTAB).

Anyway, here we have a whole recent podcast episode where the patent attorneys lament and whine about all the tricks they have to play to get some patents allowed now, due to Alice (2014). I am not sure why they care or are so worked up about it; they are little technical patent experts, not people who can or have advanced serious arguments in favor of patents; they are simply are paid to navigate the system for wannabe patent holders. I guess they think it’s in their interest to simp for potential clients, to act like they feel their pain. In any case, see Eli Mazour’s Clause 8 podcast episode The AI Patent Team that Alice Built Shares Its Prosecution Secrets | Ngai Zhang and the Grok summary below. (Re Mazour, see Attempts to Get on Mainstream IP Podcast and AIPLA Quarterly Journal Predictably Fail and Desperate Patent Troll’s Plan to get Trump to Unblock his old patent applications to replace tariff games.)

Grok summary:

The podcast (Clause 8 episode with Eli Mazour and Ngai Zhang) is a practical, prosecution-focused discussion by two experienced patent prosecutors who started their careers right after the 2014 Alice decision. They compare notes on how they adapted their drafting and prosecution strategies to survive (and thrive) under the much stricter §101 eligibility regime that Alice created—especially for fintech/business-method inventions back then, and now for AI/ML inventions. The “first impression” approach they describe (integrating a compelling technical improvement story throughout the entire application, starting on page 1, in the background as a technical problem, in the claims with context, and woven into the detailed description) is their hard-won workaround for the post-Alice reality that examiners (and later courts) will quickly reject anything that smells like “just a business method on a computer.” They also cover examiner interviews as “hostage negotiations,” strategic claim amendments (sometimes removing features to keep claims clean and focused on the inventive crux), and why wordsmithing or art-unit gaming tools alone are losing strategies.

Quick Pre-Alice Background (Pre-2014)

Before Alice, §101 was a relatively low, forgiving gatekeeper for software and business-method inventions. After Diamond v. Diehr (1981) and especially the Federal Circuit’s State Street Bank decision (1998), claims were routinely allowed if they produced a “useful, concrete, and tangible result”—even pure business methods or software implemented on a general-purpose computer. Bilski v. Kappos (2010) rejected the machine-or-transformation test as the only test but left the door wide open; many practitioners interpreted it as confirmation that “add a computer” or “processor” language would suffice. The patent bar largely treated §101 as a non-issue; the real fights were novelty (§102), obviousness (§103), and enablement (§112). Fintech, e-commerce, and software patents issued in droves.

What Changed with Alice (2014) and Why It Matters

Alice Corp. v. CLS Bank Int’l (573 U.S. 208) was the Supreme Court’s unanimous follow-up to Mayo v. Prometheus (2012). It applied the Mayo two-step framework to computer-implemented business methods and invalidated Alice’s patents on intermediated settlement (a financial-risk-mitigation scheme):

  1. Step 1 (Directed to a judicial exception?): Are the claims “directed to” an abstract idea, law of nature, or natural phenomenon? (Here: yes—intermediated settlement is a “fundamental economic practice long prevalent in our system of commerce.”)
  2. Step 2 (Inventive concept / significantly more?): Do the additional elements, individually and as an ordered combination, transform the claim into a patent-eligible application? (Here: no—generic computer implementation, “apply it on a computer,” or conventional steps like creating shadow accounts and adjusting balances add nothing inventive.)

The Court explicitly rejected the old “on a computer” trick: “merely requiring generic computer implementation fails to transform that abstract idea into a patent-eligible invention.”

This was the sea change. It triggered an immediate surge in §101 rejections at the USPTO (especially in business-method and software art units) and early invalidations in litigation (often on 12(b)(6) motions). The podcast captures the patent bar’s initial denial phase—hoping the USPTO would issue favorable guidance, the Federal Circuit would cabin it, or Congress would fix it legislatively, or that appeals would buy time until “the law changes.” None of that materialized in a meaningful way. Adding “physical processor” or wordsmithing to game an art-unit predictor became unreliable. The podcast guys realized they had to fundamentally rethink drafting: the entire specification must set a technical first impression so examiners and future judges see a real technological improvement, not just automation of a business process.

Concerns of Patent Attorneys and Patent Holders

For prosecutors (like you and the guests):

  • Prosecution became unpredictable, longer, and more expensive. Examiners started rejecting almost everything in certain tech areas at first action.
  • Old habits (broadest Claim 1 with no context, tacking a “technical improvement” paragraph at the end, or relying on art-unit predictors) no longer worked reliably.
  • Training new attorneys is hard because the required mindset—reframing every invention as solving a technical problem with technical benefits integrated everywhere—feels unnatural and competes with traditional training.
  • Validity risk remains high even after allowance; a well-funded defendant can still tank the patent on §101 in court.

For patent holders/clients:

  • Weaker, narrower, or harder-to-obtain patents reduce portfolio value for licensing, enforcement, fundraising, or M&A.
  • Fintech and early software patents took a huge hit; many pre-Alice patents became vulnerable.
  • Now the same problem is hitting AI inventions: simply saying “use machine learning” or applying known ML techniques to a new domain is often treated as abstract (see recent Federal Circuit cases like Recentive Analytics v. Fox (2025)). Good applications survive; generic ones get crushed or replaced by AI-drafted junk.
  • Overall uncertainty depresses investment in certain innovation areas.

Your 2009 article (“Radical Patent Reform Is Not on the Way”) is spot-on here in a meta sense. You argued (correctly) that entrenched interests would prevent legislative radical reform or abolition of patents. Alice delivered a judicial curb on low-quality abstract/business-method patents without Congress lifting a finger. In a way, it partially vindicates your critique of over-patenting “abstract ideas” that function as state-granted monopolies, even if you and the podcast guests approach the system from opposite philosophical directions.

Current State of §101 (2026) vs. Pre-Alice Days

Pre-Alice: §101 was a low bar. Software/business methods were broadly eligible with generic computer language. Examiners rarely rejected on eligibility; the focus was 102/103/112.

Post-Alice today: The Alice/Mayo two-step test remains the controlling law—no Supreme Court reversal, and Congress never acted. However, the USPTO has provided significant practical relief through examiner guidance:

  • 2019 Revised Patent Subject Matter Eligibility Guidance (PEG) and its incorporation into the MPEP.
  • 2024 AI-specific guidance and 2025 memoranda reaffirming that examiners should not stretch “mental processes” or abstract ideas, should consider technical improvements to computer functionality (Enfish-style), and should resolve close calls in favor of eligibility.
  • PTAB reversals on §101 are up; examiners are trained to look for concrete mechanisms, data structures, training methodologies, or improvements to the computer itself rather than just results.

Bottom line: It is still materially stricter and more uncertain than pre-Alice, especially for functional claims or inventions that read as “apply known technique (including AI/ML) to a business problem.” But with sophisticated drafting—the exact “first impression” technical-story approach the podcast describes—strong, defensible patents are still obtainable. The Federal Circuit continues to invalidate purely functional or generic implementations (e.g., recent AI cases), but it upholds claims that recite specific technological solutions or improvements to computer functionality. The law has stabilized somewhat, but it remains case-by-case and examiner-dependent. The podcast’s strategies are precisely why experienced prosecutors like Eli and Ngai are still getting allowances in fintech and AI where others struggle.

If you’re prosecuting or advising on a specific application (fintech or AI), the key takeaway from the episode and current law is exactly what they preach: make the technical improvement the hero from the very first sentence, integrate it everywhere, and prosecute with people (examiner interviews) rather than just paper arguments. Let me know if you want a deeper dive on any particular claim-drafting example or recent CAFC/PTAB decision.

***

For a few significant cases since my 2009 article or around that time that I did not include, see this summary; none of them affect my conclusion in my article that there have been no legislative improvements other than the two mentioned; but there are a few cases that are good (such as Alice, making it harder to get some patents; and eBay, making it harder to get injunctions), which is one reason the IP socialists went apeshit about them—even though they are minor changes, equivalent to lowering the income tax from 42% to 40%, something like that.

Grok summary:

Major US Patent Law Cases Since Your 2009 Article (Plain Text Summary)

Your 2009 article predates the big wave of Supreme Court patent decisions.

eBay (2006) is included for context as it remains one of the most important modern remedies cases.

Supreme Court Cases (with one-sentence summary each)

Key Federal Circuit Cases (Highly Influential)

These cases (especially the Alice/Mayo/Myriad line, TC Heartland, Halo/Octane, and Amgen) collectively made patent law significantly stricter on eligibility, venue, remedies, enablement, and post-grant challenges compared to the pre-2010 environment. Let me know if you want more detail on any specific case.

***

Mises Daily

Radical Patent Reform Is Not on the Way

Mises DailyStephan Kinsella

“Calls for abolition of the patent system — especially those coming from a principled, rights-based approach — are very unlikely to be adopted at the present time.”[This paper is the first of a two-part series. The concluding article is “Reducing the Cost of IP Law“]

Hardly a day passes when we do not hear of one patent abuse or another.[1] Ridiculous patents are issued or filed and companies are enjoined from selling their products. Judgments are issued, and settlements reached, for billions of dollars. (See the Appendix for examples of ridiculous patents and outrageous judgments.) Not surprisingly, there is a growing demand for reform of our patent system.[2]

Whether their demands are modest or radical, the reformers share the belief that the patent system is broken; has gotten out of hand; and is not in sync with our fast-paced, high-tech, open-sourced, digitized world — in short, that it needs to be fixed.

At first glance, it might appear that change is already under way. In recent years the Supreme Court has issued a spate of decisions cutting back patent protection or making it more difficult to obtain patents. One of the most significant cases, KSR v. Teleflex, raised the “obviousness” bar. This raised the standards for getting a patent, and also made it easier to challenge the validity of issued patents.[3]

In eBay v. MercExchange, the Court made it more difficult to get injunctions against the alleged infringer (alas, too late for poor BlackBerry). The MedImmune decision made it easier for licensees to challenge the validity of patents they had previously licensed. Microsoft v. AT&T restricted the global reach of US patent law.[4]

And the Court of Appeals for the Federal Circuit (CAFC) — the sole appellate court for patent cases since its creation in 1982 — changed the standard for “willful infringement” in the Seagate case, making it harder to obtain enhanced (treble) damages. Most recently, in Quanta v. LG Electronics, decided in June 2008, the Supreme Court refined the “patent exhaustion” doctrine to make it more difficult for patentees to extract royalties from multiple parties for the same device or process.[5]

The U.S. Patent & Trademark Office (PTO) has also entered the fray. In August 2007, the PTO released new rules for patent practice that limit how many times a patent application can be “renewed” and also limit the number of “claims” in a patent application (these rules were enjoined just before taking effect, due to a suit from British drug maker GlaxoSmithKline).[6]

Finally, Congress has been considering various amendments to the Patent Act.Download PDF[7] Possible changes include switching from a “first-to-invent” to a “first-to-file” system, reducing damage awards, reducing forum shopping, and making it easier to challenge issued patents.[8]

 

Plus Ça Change, Plus C’est La Même Chose

According to the organized patent bar and intellectual property (IP) advocates, these recent and proposed developments are “radical.” In other words, they go too far.

Patent attorney John R. Harris, for example, ominously intones:

The U.S. has the best patent system in the world. What I’m afraid of is that they are about to throw the baby out with the bathwater.… The new rules are radical. The new legislation is radical. They will cause fewer patents to be issued.[9]

But the truth is that none of the developments noted above are really that dramatic. Patent law is always evolving due to court decisions, new rules issued by the PTO, and new legislation from Congress. Consider this brief sample of notable events in the history of patent law:

Date Patent Law Development
13.7 billion years ago God invents the universe. He does this without permission of anyone else. He doesn’t look in the Celestial Patent Office filings first to make sure he is in the clear.
1.9 million years ago Grog invents using fire to cook food. Arrgg sees this and imitates it. Soon, the practice spreads. Ditto with living in caves, using spears to kill animals, building “houses,” and dressing in cured animal hides. Nobody sues anybody. No patent system has been invented yet.
1474–1700s Sovereigns grant exclusive rights (monopolies) as a way to raise money without having to raise taxes. Strangely, nobody gets a patent on the idea of granting monopolies.
1789 US Constitution authorizes Congress to grant to “Authors and Inventors the exclusive Right to their respective Writings and Discoveries” “for limited Times” in order “To promote the Progress of Science and useful Arts.”
1790 First Patent Act.
1873 Patent exhaustion doctrine clearly established in Adams v. Burke.
1912 Henry v. A.B. Dick Co. confuses the exhaustion rule with the separate doctrine of “implied license.”
1917 1912 decision (above) overruled by Motion Picture Patents Co. v. Universal Film Manufacturing Co.
1930 Popular Science Monthly claims that the Patent Office “has become a national disgrace” because of the backlog of unprocessed patent applications. This complaint is still being made in 2009.
1942 United States v. Univis Lens Co. case harmonizes the exhaustion doctrine with the related law of contributory infringement.
1952 Congress significantly revises patent law, changing various aspects of settled law, e.g., in the areas of misuse and contributory infringement; it also codifies the exhaustion rule of Univis.[10]
1954 Congress amends patent law to allow patents on plants.
1966 Graham v. John Deere “clarifies” obviousness standards.
1978 Patent Cooperation Treaty enters into force.
1982 The Court of Appeals for the Federal Circuit (CAFC) is established and given exclusive appellate jurisdiction in patent cases. This leads to the unification of patent law and the strengthening of patents and patent protection.[11]
1992 CAFC in Mallinckrodt, Inc. v. Medipart, Inc.Download PDFagain conflates exhaustion and implied license doctrine as in the overruled 1912 case, A.B. Dick. Exhaustion doctrine to be modified yet again in 2008 Quanta Computer v. LG Electronics case (below).
1994 CAFC’s In re Donaldson decision requires the “means-plus-function” test used during patent litigation to be applied by the PTO during patent prosecution as well.
1994–1995 Patent law is amended pursuant to GATT: patent terms changed from seventeen years from the date of issue to twenty years from date of filing. The right to file “provisional” patent applications is established.[12]
1995–1998 Revised PTO examination guidelines, and cases such as Alappat and State Street, make it easier to obtain patents on business methods as well as software and computer-implemented inventions.[13]
1996 In Markman v. Westview Instruments, Supreme Court declares that patent claim interpretation is a matter of law, not a question of fact; this leads to the “Markman hearings.”
1997 35 USC 287(c) added to Patent ActDownload PDFto exempt certain surgical methods from patent liability.[14]
1999 The Intellectual Property and Communications Omnibus Reform Act of 1999 enacts “most significant changes” in U.S. Patent law since the 1952 Patent Act, according to PTO Commissioner Dickinson. Changes include early publication of pending-patent applications and a limited first inventor (prior user) defense for prior users of business methods.
2002 Festo case revises the “doctrine of equivalents.”
2006 MedImmune makes it easier for licensees to challenge the validity of patents. eBay v. MercExchange makes it more difficult to get injunctions against patent defendants.[15]
2007 (April) Microsoft v. AT&T restricts the global reach of US patent law. KSR v. Teleflex tightens “obviousness“ standards, raising the bar for obtaining a patent, and making it easier to challenge the validity of an existing patent.
2007 (August) CAFC in Seagate changes the standard for “willful infringement,” making it more difficult to obtain enhanced (treble) damages.
2007 (August) PTO releases new rules for patent practice that limit how many times a patent application can be “renewed” and also limit the number of “claims” in a patent application.
2007 (September) Congress poised to enact amendments switching from a “first-to-invent” to a “first-to-file” system, reducing damage awards, making it easier to challenge issued patents, and reducing forum shopping.
2007 (September) Comiskey and Nuitjen cases make it more difficult to claim mere “signals” and also seem to choke back on software, internet, and business method patents.[16]
2008 (June) In Quanta Computer v. LG Electronics, the Supreme Court arguably overturns Mallinckdrot (1992) and clarifies the exhaustion doctrine yet again — making it more difficult for patentees to extract royalties from multiple parties for the same device or method.[17]
2008 (October) The CAFC in In re Bilski further modifies the patentability test for software or business-method patents, partially overruling State Street.[18]

As can be seen, since the inception of modern US patent law in 1790, the field has been continually in flux. There is no reason to single out the last few years. Modern patent law has evolved for over two hundred years and will continue to do so. Indeed, frequent and arbitrary change in the law, and the uncertainty that this breeds, is common in state-run, legislation-dominated legal systems.[19] The fact that state law changes is not new.

But though various details of the patent system continue to morph pursuant to political pressures and legal trends, the essential aspects of the patent system have not changed at all: The scope of what is patentable has not shrunk appreciably. The term is still about seventeen years. Patents are still enforceable by injunction. The groundless presumption of validity is alive and well.

Patent defendants who win usually pay their own legal fees, as before. Defending patent lawsuits continues to be incredibly expensive. Lobbying goes on as before. Companies continue to need to obtain patents if only for defensive purposes.

Obviousness and novelty remain the standards for patentability — and these standards are still vague, nonobjective, and subject to unpredictable interpretation by an inept and bureaucratic government agency, by state courts, and by technically inept juries. And the patent system is still widely believed to be legitimate and necessary even while it is widely derided as seriously flawed.

“There is no reason to single out the last few years. Modern patent law has evolved for over 200 years and will continue to do so.”And so, for the foreseeable future, companies will continue to spend lots of money obtaining patents. And small businesses will still face the threat of patent-infringement lawsuits and court-ordered injunctions that could put them out of business.[20] And these suits will continue to cost literally millions of dollars to defend. “Bad” patents will keep being granted, and various patentability standards will always be murky, arbitrary, and uncertain.

This is not to say that recent changes will not be felt at all. Patent attorneys, for example, can expect to see more business as a result of all this legal turmoil.[21] (Why many of them are complaining about these developments is a mystery.)Download PDF

But other than more money being spent on patent attorneys and a relatively small, probably temporary, shift in the balance of power between patentees and alleged infringers, the patent system has not radically changed. All of the problems noted above stem from the basic nature of the patent system. They will not recede by merely tinkering with details and leaving the essential features of the system intact.[22]

Principle v. Pragmatism; Abolition v. Revision

What adjustments, then, should be made to our current patent laws? The answer to this question depends, in part, on one’s basic approach to law. Most people with an opinion on IP policy — both pro and anti — have a utilitarian mindset. They favor or oppose various patent policies based on whether or not these policies produce more societal wealth, in the form of extra innovation worth more than the cost of the system.

Others favor or oppose patent rights on more principled or deontological (rights-based) grounds. Some of them, such as Ayn Rand, argue that patent rights are important property rights;[23] others maintain that patents should be abolished precisely because they undercut property rights.[24]

As for the latter position — yes, property rights are indeed undercut by patents. And even on utilitarian grounds, it could be argued that the patent system imposes an overall net cost on the economy,[25] and should therefore be abolished or radically curtailed. It is apparent, however, that the patent system is very entrenched, as is the wealth-maximization approach to policy making.

Calls for abolition of the patent system — especially those coming from a principled, rights-based approach — are very unlikely to be adopted at the present time. In my forthcoming paper, therefore, I recommend certain changes to the patent system short of abolition, assuming a general “costs-and-benefits” approach.

Accordingly, to determine what adjustments ought to be made to the patent system (again, putting arguments for abolition on principled grounds to the side), we need a sufficiently clear understanding of the nature and extent of the costs imposed by the system, as well as its alleged benefits. With this in mind, the forthcoming paper suggests a laundry list of obvious changes that should be made to the patent system to reduce its costs with only minimal impact on its purported advantages. Stay tuned.

Stephan Kinsella, BSEE, MSEE, JD (Louisiana State University), LLM (University of London-King’s College London), a registered patent attorney in Houston, General Counsel of Applied Optoelectronics, Inc., and Editor of Libertarian Papers, has prosecuted hundreds of patent applications in a variety of technologies. His legal publications include Trademark Practice and Forms (editor, Oxford University Press, 2001–present); International Investment, Political Risk, and Dispute Resolution: A Practitioner’s Guide (London: Oxford University Press, 2005 [2nd ed. forthcoming in 2010]); Digest of Commercial Laws of the World (editor, Oxford University Press, 1998–present); Online Contract Formation (coeditor, Oceana Publications, 2004), and other legal treatises. His libertarian publications include Property, Freedom, and Society: Essays in Honor of Hans-Hermann Hoppe (coeditor, Mises Institute, 2009), Against Intellectual Property (Mises Institute, 2008), “The Case Against IP: A Concise Guide,” Mises Daily (Sept. 4, 2009), and other articles on IP. See his blog. Send him mail. See [AuthorName]’s [AuthorArchive]. Comment on the blog.

This paper is the first part of a two-part series. The concluding article is “Reducing the Cost of IP Law,” Mises Daily (Jan. 20, 2010).

Appendix: Examples of Outrageous Patents and Judgments

Examples of (at least apparently) ridiculous patents and patent applications abound (more at PatentLawPractice):

The Supreme Court, in the 1882 case Atlantic Works v. Brady, 107 US 192, itself lists examples of patents issued to “gadgets that obviously have had no place in the constitutional scheme of advancing scientific knowledge … the simplest of devices.” These included

  • a particular doorknob made of clay rather than metal or wood, where differently shaped doorknobs had previously been made of clay;
  • making collars of parchment paper where linen paper and linen had previously been used;
  • a method for preserving fish by freezing them in a container that operates in the same manner as an ice-cream freezer.
  • rubber caps put on wood pencils to serve as erasers;
  • inserting a piece of rubber in a slot in the end of a wood pencil to serve as an eraser;
  • a stamp for impressing initials in the side of a plug of tobacco;
  • a hose reel of large diameter so that water may flow through the hose while it is wound on the reel;
  • putting rollers on a machine to make it movable;
  • using flat cord instead of round cord for the loop at the end of suspenders;
  • placing rubber hand grips on bicycle handlebars;
  • an oval rather than cylindrical toilet paper roll, to facilitate tearing off strips.

Below are a few notable or recent examples of large, significant, troubling, or apparently outrageous injunctions, damages awards, and the like:

Notes

[1] A patent is a state-granted legal right in an “invention,” such as a device or process that performs a “useful” function. It is obtained by filing a “patent application” with the US Patent and Trademark Office (USPTO). The patent gives the patentee the right to exclude, i.e., to prevent others from practicing the patented invention.

[2] See, e.g., Rick Merritt, Countervailing Forces Propel Patent Reform, EETimes (Sept. 17, 2007); Patti Waldmeir, US Moves to Reform Patent Laws, Financial Times (Sept. 8, 2007); Executive Office of the President — Office of Management and Budget, Statement of Administration Policy: H.R. 1908 — Patent Reform Act of 2007 (2) (Sept. 6, 2007)Download PDF; “Patent Reform Act of 2009,” Patently-O (March 3, 2009); “Patent Reform 2009: Reactionary Causes,” Patent Baristas (March 3, 2009); Council on Foreign Relations, Reforming the U.S. Patent System: Getting the Incentives Right (2006); Adam B. Jaffe & Josh Lerner, Innovation and Its Discontents: How Our Broken Patent System is Endangering Innovation and Progress, and What to Do About It (2004); also Josh Lerner, The U.S. Patent Game: How to Change It (2004); Greg Blonder, Cutting Through the Patent Thicket, BusinessWeek (Dec. 20, 2005); Reed Hundt, Patently Obvious, Forbes (Jan. 30, 2006); James Bessen & Michael J. Meurer, Patent Failure: How Judges, Bureaucrats, and Lawyers Put Innovators at Risk (Princeton University Press, 2008); Patent Reform is Not Enough; A Proposal for Software Patent Reform; Patent Reform for a Digital EconomyDownload PDFand Real Patent ReformDownload PDF, Computer & Communications Industry Association; Declan McCullagh, Patent Reform: Who’s On First?, ZDNet News (Sept. 13, 2005). Other groups advocating reform or highlighting abuse include Free Software Foundation; Business Software Alliance; Foundation for a Free Information Infrastructure; Progress & Freedom Foundation; League for Programming Freedom; Electronic Frontier Foundation; Software Freedom Law Center; Coalition for Patent Fairness; End Software Patents; and the U.S. Chamber of Commerce.

Groups opposing significant change (in particular opposing the raising of the “obviousness” bar by the Supreme Court in KSR v. Teleflex, which made it harder to get a patent and easier to challenge an issued patent) include, not surprisingly (1, 2), legal and business interests such as the American Bar Association (ABA), the American Intellectual Property Law Association (AIPLA), the Federal Circuit Bar Association, the Franklin Pierce Law Center Intellectual Property Amicus Clinic, Intellectual Property Owners Association, Pharmaceutical Research and Manufacturers of America, the Manufacturing Alliance on Patent Policy (MAPP), and a descriptively-named group of “Practicing Patent Attorneys.”Download PDF

See also the list of various IP groups providing comments on the PTO’s proposed new rules of patent practice.

[3] Raising the bar for obtaining patents, while making them harder to obtain in the first place, may also make future patents more difficult to challenge, once they survive the more stringent examination requirements.

[4] On the Microsoft v. AT&T case, see also Patent Law: Baby Steps — Update; Microsoft v. AT&T: Extraterritorial Enforcement of US Patents.

[5] See Mike Masnick, Supreme Court Says Patent Holders Can’t Shake Down Entire Supply Chain, techdirt (June 9, 2008); Supreme Court Decides Quanta v. LG Electronics, U.S. (2008), Patently-O (June 9, 2008); Justin Levine, Supreme Court continues its positive trend with patent law, Against Monopoly (June 9, 2008); Supreme Court Reverses CAFC in Quanta: Method Patents Exhaustible, Peter Zura’s 271 Patent Blog (June 9, 2008); also Greg Stohr & Susan Decker, Quanta-LG Case at U.S. Supreme Court May Limit Patent Royalties, Bloomberg.com (Jan. 16, 2008); Supreme Court to Decide Patent Exhaustion Case, Patently-O (Sep. 25, 2007); Kinsella, Patent Exhaustion, Mises Blog (Feb. 1, 2008).

[6] See Court Blocks PTO Rules on Eve of Effective Date; All Four Equitable Relief Factors Suggest Injunction, Patently-O (Oct. 31, 2007). For the latest in this saga, see Stephen Albainy-Jenei, Tafas v. Doll: War Without End, Patent Baristas (July 8, 2009); Marcia Coyle, DOJ Seeks Stay on Suit Against New Patent Rules, National Law Journal (July 28, 2009).

[7] For recent status of pending patent reform legislation, see Patent Reform Act of 2009, Patently-O (March 3, 2009); Reid: Patent Reform a Top Priority (Sort Of), The 271 Patent Blog (Jan. 22, 2008); also Patently-O Bits and Bytes No. 12, Patently-O (Feb. 15, 2008) (”IPO reports a strong likelihood that no action will take place in the Senate until April 2008. In the meantime, the Reform Act is in secret revision in Senator Leahy’s office.”).

[8] The Eastern District of Texas, in particular, has been a popular choice for patent litigation due to its “rocket docket” and patentee-friendly juries. See What Does Forum Shopping In The Eastern District Of Texas Mean For Patent Reform?Download PDF; Why Did Blackboard File in East Texas; Judge Blocks Dynamic Web Patent Troll’s “Forum Shopping.” The draft amendments would impose strong limitations on venue, which would hamper the ability of patent plaintiffs to sue in this district. See Senator John Cornyn Press Release, Cornyn Pledges to Fight for Fairness for Eastern District of Texas Courts (July 13, 2007).

[9] Katheryn Hayes Tucker, GCs Draw Line in the Sand Over Changes to Patent Law, Daily Business Review (December 13, 2007). Harris goes so far as to raise the possibility of a patent-reform-caused depression: “If we’re about to go into a recession and all of a sudden you kill innovation in the country, we might not have a recession. We might have a depression.” How Harris knows we have “the best patent system” is not explained; it’s commonly believed among patent attorneys, for example, that European Patent Office examiners are much better than ours. See also Dennis Fernandez, 5 Reasons You Should No Longer Bother Getting U.S. Patents, Intellectual Property Today (February 2008).

[10] See Quanta’s briefDownload PDFin the Quanta Computer v. LG Electronics case.

[11] See Scott Atkinson, Alan Marco & John L. Turner, Uniformity and Forum Shopping in US Patent Litigation (2006); Matthew D. Henry & John L. Turner, The Court of Appeals for the Federal Circuit’s Impact on Patent Litigation (2005)Download PDF; Robert Hunt, Patent Reform: A Mixed Blessing For the U.S. Economy? (1999).Download PDF [12] See Kinsella, GATT and its Impact on Patents (2005).Download PDF

[13] State Street was partially overruled in 2008; see discussion of In re Bilski case, below. See also Kinsella, Computer Software Patents Are On The Way,Download PDFSHSL IP Report (Fall 1995); Stephan Kinsella & Robert E. Rosenthal, A New Traffic Cop at Intersection of Patents and Financial Inventions,Download PDFThe Legal Intelligencer (February 5, 1998).

[14] See Kinsella, How to Operate Within the Law: Patents on Medical Procedures, The Legal Intelligencer (September 3, 1998).Download PDF

[15] However, it is still possible to obtain patent injunctions. See, e.g., Transocean v. GlobalSantaFe (S. D. Tex. Dec. 27, 2006) (permanent injunction granted; leading to acquisition of defendant by plaintiff); and Tivo Inc. v. EchoStar Communications Corp. (S. D. Tex., Dec. 2, 2006) (injunction granted); TiVo Wins on Appeal: Permanent Injunction against EchoStar to be Reinstated, Patently-O (January 31, 2008). Both these cases are discussed in Robert H. Resis, Life after eBay v. MercExchange — The Strong Get Stronger, Intellectual Property Today (December 2007). For an example of an ongoing royalty awarded instead of a permanent injunction, see Paice LLC v. Toyota Motor Corp. (Fed. Cir. October 18, 2007). See also CAFC Approves Compulsory License (but calls it an “ongoing royalty”), Patently-O (October 19, 2007); Innogenetics: Forward Looking Damages Approved, Patently-O (January 21, 2008). For a more recent development in the eBay case, see MercExchange v. eBay: Injunction Denied Again, Patenly-O (December 18, 2007); MercExchange Saga Over: eBay Just Buys The Patents, Techdirt blog (February 28, 2008). Moreover, as injunctions become harder to obtain, patentees simply turn to the ITC. See Eric Bangeman, Permanent Injunctions Getting Scarce; Patent Holders Turn to ITC, ars technica (June 3, 2007).

[16] See discussion of In re Bilski case, below; Signal Claims Are Not Patentable: Nuijten Stands — Rehearing Denied, Patently-O (February 11, 2008).

[17] See also Ladas & Parry, A Brief History of the Patent Law of the United States.

[18] The court here abandoned State Street’s “useful, concrete, and tangible result” test for patentability and reaffirmed the “machine-or-transformation” test. Under this latter test, such a patent is valid only if (a) it is tied to a particular machine or apparatus, or (b) it transforms a particular article into a different state or thing. See “Appeals Court Smacks Down Software And Business Method Patents without Apparatus or Transformative Powers,” Patent Baristas (October 31, 2008); In re Bilski: Patentable Process Must Either (1) be Tied to a Particular Machine or (2) Transform a Particular Article, Patently-O (October 30, 2008).

[19] See Kinsella, Legislation and the Discovery of Law in a Free Society (1995).Download PDF

[20] Such a threat was the reason RIM, BlackBerry’s maker, paid $600 million to NTP even though NTP’s patents were being re-examined by the PTO: RIM couldn’t risk even a short-lived injunction. See also Patent Office Rejects Blackboard E-Learning Patent One Month After It Wins Lawsuit, Techdirt (March 31, 2008). Even after the eBay case, injunctions are still granted, as noted in endnote 15, above; or patent holders find alternative means of blocking competitors, such as ITC actions.

[21] Other than Seagate, which reduces the value of the lucrative “patent opinions” patent practitioners are often hired to write. On the uncertainty engendered by legal turmoil, see Kinsella, Legislation and the Discovery of Law in a Free Society.

[22] The process by which the patent law ebbs and flows, and continually changes, provoking cries of doom and disaster from biased, special-interest chicken littles, calls to mind an analysis by Llewellyn H. Rockwell, Jr., in his book The Left, the Right, and the State (Auburn, Alabama: Mises Institute, 2008), pp. xiii-xiv (emphasis added):

What is the state? It is the group within society that claims for itself the exclusive right to rule everyone under a special set of laws that permit it to do to others what everyone else is rightly prohibited from doing, namely aggressing against person and property.

Why would any society permit such a gang to enjoy an unchallenged legal privilege? Here is where ideology comes into play. The reality of the state is that it is a looting and killing machine. So why do so many people cheer for its expansion? Indeed, why do we tolerate its existence at all?

The very idea of the state is so implausible on its face that the state must wear an ideological garb as means of compelling popular support. Ancient states had one or two: they would protect you from enemies and/or they were ordained by the gods.

To greater and lesser extents, all modern states still employ these rationales, but the democratic state in the developed world is more complex. It uses a huge range of ideological rationales — parsed out between left and right — that reflect social and cultural priorities of niche groups, even when many of these rationales are contradictory.

The left wants the state to distribute wealth, to bring about equality, to rein in businesses, to give workers a boost, to provide for the poor, to protect the environment.… The right, on the other hand, wants the state to punish evildoers, to boost the family, to subsidize upright ways of living, to create security against foreign enemies, to make the culture cohere, and to go to war to give ourselves a sense of national identity.…

So how are these competing interests resolved? They logroll and call it democracy. The left and right agree to let each other have their way, provided nothing is done to injure the interests of one or the other. The trick is to keep the balance. Who is in power is really about which way the log is rolling. And there you have the modern state in a nutshell.

Likewise, the vested interests moan and caterwaul at the slightest change, thus making sure that serious, radical change is not even considered. This way, they keep the basic system intact.

[23] See Ayn Rand, “Patents and Copyrights” in Capitalism: The Unknown Ideal, p. 131, 133; also Ayn Rand Biographical FAQ, sec. 5.2.2; Kinsella, Rand and Marx (2006).

[24] See Kinsella, Against Intellectual Property; idem, “The Case Against IP: A Concise Guide.”

[25] See Kinsella, Yet Another Study Finds Patents Do Not Encourage Innovation, Mises Blog (July 2, 2009); Michele Boldrin & David K. Levine, Against Intellectual Monopoly (Cambridge University Press, 2008).

26 Apparently, Acacia has collected settlement amounts — rumored to be between $50,000 and $400,000 each — from a very long list of licensees.

 

Archived comments:

{ 47 comments… read them below or add one }

staff2 October 1, 2009 at 10:11 am

Patent reform is a fraud on America…
Please see http://truereform.piausa.org/ for a different/opposing view on patent reform.

REPLY

Ohhh Henry October 1, 2009 at 10:45 am

From the “truereform” blog linked above:

“what we need is 1) shorter patent pendency, 2) patent prosecution based on law – not politics, 3) competent and qualified management of the patent office free of political appointments, and 4) restoration of the teaching, suggestion, motivation basis for determining patentability.”

You want the government to award and enforce monopolies. Government is run by politicians. Yet you wish the process of granting monopolies to be free of politics?

REPLY

Dale B. Halling October 1, 2009 at 11:14 am

Staff2 excellent points on patent reform.

Ohhh Henry, Patents are not a monopoly and anyone who suggests that they are either does not understand the rights obtained with a patent or is pushing a political agenda. Patents only give the holder the right to exclude, they do not give the holder the right to make something, let alone a right to a market. A monopoly is a right to a market. For more information see http://hallingblog.com/2009/05/31/the-myth-that-patents-are-a-monopoly/

REPLY

Ohhh Henry October 1, 2009 at 11:31 am

Quibble noted. Now back to the main point.

You want the government to award and enforce [certain advantages in the marketplace]. Government is run by politicians. Yet you wish the process of granting [certain advantages in the market] to be free of politics?

REPLY

Mark October 1, 2009 at 11:46 am

I’m not sure that list showed what Kinsella wanted it to show. Human development sure has gone a lot faster since the patent system was created. ;)

REPLY

Jeffrey Tucker October 1, 2009 at 12:01 pm

“Human development sure has gone a lot faster since the patent system was created.”

You could say the same about the rise of the state generally. It is a matter of understanding the right relationship between cause and effect.

REPLY

Stephan Kinsella October 1, 2009 at 2:29 pm

Dale Halling says “Patents are not a monopoly and anyone who suggests that they are either does not understand the rights obtained with a patent or is pushing a political agenda. Patents only give the holder the right to exclude, they do not give the holder the right to make something, let alone a right to a market. A monopoly is a right to a market.”

Halling appears to be either economically illiterate or dishonest. As I explained here, patents are of course monopolies. A monopoly is simply state power used to stop competition, which is one thing a patent can be used for. The post office for example has a monopoly. Not because they exist and have the “right” to deliver mail, but because the law makes it illegal for others to compete with them. This is what patents do.

REPLY

Peter Surda October 1, 2009 at 3:04 pm

Dear Dr. Halling,

may I ask you what definition of the word “monopoly” you are using? Because it certainly is different from what the Austrian economic school uses, and also different from what http://en.wikipedia.org/wiki/Monopoly says (which is quoted from Friedman, who belonged to the Chicago economic school). So you already have two definitions by two economic schools that say something else than you. And yes, according to both of these, patents are a monopoly.

Of course, by redefining a term arbitrarily, you can defeat any argument.

Cheers,
Peter

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Fred McTaker October 1, 2009 at 3:57 pm

@Dale B. Halling: I could use the same language to say that “AT&T obviously doesn’t have a monopoly, because other phone companies exist. They merely have the right to exclude other phone companies from using /their/ lines.” The fact remains that I don’t have any choice but to subscribe to traditional POTS phone service from AT&T. Even if I use VoIP and deal with another ISP, that ISP is forced by government-dictated market conditions that the ISP use AT&T to “service” the DSL connection. It is another question to whether AT&T should be allowed to “own” lines that cross my property, but the fact remains that AT&T has a monopoly hold on my local copper-wire connection market. In the same way, Time-Warner holds a monopoly on my local coaxial-cable connection market. Those monopolies may be incidental to other provisions and market forces, but they are still monopolies.

@Stephan Kinsella: I think patents are beyond reform. They are inherently flawed, and can not be fixed to meet the Constitutional requirement of “promoting the progress.” I think we should abandon patents in favor of developing a system of “Registered Trade Secrets.” Registered secrets would go into the public domain after about 20 years, the same as patents, but wouldn’t affect any person or business not privy to those secrets. Licensing would stay relatively the same, but it would be a trade for revealing secrets (with some automatic NDA provisions), in return for fees and licensing agreements. The license payments would be for early access, not government-enforced artificial exclusion. Independent invention would not be stifled, and government could use the registry to be of more help with industrial espionage cases.

Patents were never inherently valuable to society — their only value was in comparison to trade secrets, which may never reach the public domain. The whole point is to give inventors (not trolls) an incentive to put their works in the (eventual) public domain. Registered secrets that are released to the public after a pre-defined timeout would have the exact same social value as patents, with little to none of the drawbacks that make patent law such a farce today.

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J. Chris Folsom October 1, 2009 at 4:39 pm

@Steve

“Halling appears to be either economically illiterate or dishonest”

Or a raving psychotic. I’m willing to give mr. halling the benefit of the doubt and assume that he actually believes the things he is saying (which is to say he is mentally ill not a liar).

You can clearly see that schizophrenia is at work here when you read the next sentence, which defines a patent as a monopoly after stating that it is not a monopoly. “Patents only give the holder the right to exclude.”

As long as you continue to debate statists as if they were sane human beings, you’re going to be coninually frustrated by the fact that they can’t comprehend simple ethics or logic.

If you want to fix a problem, you must first be able to understand it.

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Bala October 1, 2009 at 11:18 pm

Dale B. Halling,

I am unable to understand a fundamental point about patents which I request you to clarify.

It is possible for 2 people (A and B), working independently and based on similar or different and unrelated sources, to come up with the same idea. Why is it that it is alright for 1 of them (A, the one who filed for and got the patent) to act on that basis and enjoy the fruits of his actions while it is not so for the other (B)?

To discuss this further, I need to define something fundamental in my thought process. To me, Liberty means the freedom to act as long as such action does not translate into initiation of force against another individual.

With this definition, B’s act of coming up with the same idea as A had and then going on an producing goods based on that idea, thus earning profit, is not a violation of A’s Liberty because B, by acting, has not initated any force against A. However, excluding (taking your own wording) B from using the idea because A has a patent means that B is either

1. prevented from acting on his own idea

or

2. if he acts thus, a part of the fruits of such action will have to be given to A and if B fails to do so voluntarily, the government shall take away a part of B’s fruit and give it to A

In either case, there is a case of initiation of force against B even though he has not initiated force against A. B’s Liberty has thus been violated though he has not violated anyone’s Liberty. What’s worse is that in the second case, his property rights are also violated.

Could you please explain how patents can be called legitimate under these circumstances?

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bernardpalmer October 2, 2009 at 4:40 am

Radical Patent Reform Is Not on the Way.

I agree. It’s already here.

http://www.cashrampatent.com is an online alternative patent system that presupposes that the present patent system will disappear once all the world’s fiat currencies crash. The present system whereby governments provide the Force to protect a patent was always bound to fail simply because governments cannot run any business properly. And lets face it the present system is just a feeding trough for lawyers.

The idea behind CashRamPatent is that eventually only business themselves can look after the validity of a patent claim. Also by making it cheap to register a patent (AU$10) it gives those 99.9% of inventors the opportunity to get there ideas out there for all to see. Plus it also gives the patent examination process to anyone who wants to comment and pass a vote. No more waiting 2 years for an examiner. A three quarter majority against any patent would take away the grant.

Last but not least it is important for everyone that the life time of a patent be drastically reduced. In the CashRamPatent system the grant is for 5 years only. There is an optional period of 2 years where the patent owner has the sole right to manufacture. The remaining 3 years allows anyone to use the patent on agreeing to pay 10% of any profit they make to the patent owner. This is to insure competition comes in early.

CashRamPatent also includes a free service to help inventors find producers and a Real Bills component for financial backers but by using gold only.

All payments are made by using the CashRamSpam micro payment system which has been online now since 2002.
http://www.cashramspam.com

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Dale B. Halling October 2, 2009 at 8:45 am

Dear Peter Suda, according to Wikipedia “In economics, a government-granted monopoly (also called a “de jure monopoly”) is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement.” Since patents are clearly “government granted”, then this is the appropriate definition. Since a patent does not even provide the holder the right to sell their invention, it clearly does not grant an exclusive privilege to a firm to be the sole provider of a good or service.

Admittedly, some economists define a monopoly as anyone who has monopoly power. Under this definition of a monopoly any property rights, including ownership in your house or car results in monopoly power. This definition of a monopoly leads to the conclusion that all property rights are or have an element of monopoly power. I reject this definition of a monopoly as meaningless.

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Dale B. Halling October 2, 2009 at 8:55 am

Dear Bala, your concern about independent invention is common. However, the same principle applies in real property. If you an I both spot a deer, but you kill or capture the deer first, you are the owner of the deer and I have not right to the deer. This principle also occurs in science. If I were to conceive special relativity without any knowledge that Einstein had already discovered special relativity, this would not make me the discoverer of special relativity. I did not add any information to the store of human knowledge, by my independent discovery. The same is true of inventors, just because someone independently comes up with an idea after the inventor, does not make them an inventor. An inventor is the person who adds to the store of human knowledge. Being second, even without knowing that you are second does not add to the store of human knowledge or make you an inventor. The patent laws require the inventor to be the first in the world to create an idea.

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girl scout October 2, 2009 at 9:12 am

@ Folsom
according to your uncivil comment to Halling, a state sponsored university tenured professorship is a monopoly. I would enjoy the use of one, applying your rejection of such, I should just show up and teach the class. oh, and collect the salary. what if 1000 of us show up to “use” the salary? does the university have an obligation to pay us all?

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matskralc October 2, 2009 at 9:14 am

If you an [sic] I both spot a deer, but you kill or capture the deer first, you are the owner of the deer and I have not [sic] right to the deer.

Unfortunately, this is an inapplicable analogy.

Independent invention is more like Bala and I each spotting a deer in the woods, but because Bala spotted his first he gets to decide if I have a right to the one I spotted.

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matskralc October 2, 2009 at 9:15 am

Each spotting two different deer, in case that is not clear.

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Stephan Kinsella October 2, 2009 at 9:42 am

Halling: “Dear Bala, your concern about independent invention is common. However, the same principle applies in real property. If you an I both spot a deer, but you kill or capture the deer first, you are the owner of the deer and I have not right to the deer.”

This highlights the problem. There is only one deer; it is a scarce resource; to permit such resources to be used without conflict someone has to be assigned ownership; obviously the first one to homestead the deer has a better claim than the second guy.

This has nothing whatsoever to do with inventions. If A invents a way to use his property and B later thinks of a similar idea and patents it, there is no reason in the world that B has a right to use force to stop A from using his own property in this way. A already owned his property–like in the deer case, he came first. B is simply claiming a right to the “idea” that he independently invented. This is utterly absurd.

“The same is true of inventors, just because someone independently comes up with an idea after the inventor, does not make them an inventor. An inventor is the person who adds to the store of human knowledge. Being second, even without knowing that you are second does not add to the store of human knowledge or make you an inventor. The patent laws require the inventor to be the first in the world to create an idea.”

Halling, ostensibly a patent attorney, should know this is a misstatement of the law. First, the US patent system is unique in giving priority to earlier inventorship; other countries have a first to file based priority system. Which system a country adopts is simply arbitrary. Second, there are exceptions in the US–there is a limited prior user right in the case of business method patents. Does Halling think this exception should be abolished? If not, then why shouldn’t there be a more general prior user or independent invention defense?

Third, US law does not require you to be the first inventor. For example, suppose A invents a method (say, a method for mixing chemicals) and uses it in secret to produce a high-quality chemical. He keeps the method secret (trade secret). 10 years later B independently invents a similar method and patents it–then gets an injunction to shut down A. Why is this just, Halling? B is not even first. He is first to file… but you imply you are in favor of a first-to-invent system.

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Dale B. Halling October 2, 2009 at 11:02 am

Dear Mr. Kinsella, I have shown that the “scarcity theory of property rights” against patent is flawed both logically and factually. See my posts Scarcity – Does it Prove Intellectual Property is Unjustified? http://hallingblog.com/2009/06/22/scarcity-–-does-it-prove-intellectual-property-is-unjustified/
Scarcity and Intellectual Property: Empirical Evidence for Invention http://hallingblog.com/2009/06/25/scarcity-and-intellectual-property-empirical-evidence-for-inventions/
Scarcity and Intellectual Property: Empirical Evidence of Adoption/Distribution of Technology http://hallingblog.com/2009/06/25/scarcity-and-intellectual-property-empirical-evidence-of-adoptiondistribution-of-technology/.

These posts show that the empirical evidence does not support the scarcity theory of property rights. The posts also show that the “scarcity theory of property rights” does not explain how property is to be allocated, how property rights in an object or idea are created, why slavery is wrong, why murder is wrong, etc. While the labor theory of property rights explains this and more. Trading the scarcity theory of property rights for the labor theory of property is like trading the theory that “what goes up must come down” for Newton’s Law of gravity. The fact of the matter is that the proponents of scarcity have confused cause with effect. A system of private property results in efficient allocation of resource, but it is not the reason for private property – it is the effect of private property.

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Stephan Kinsella October 2, 2009 at 11:22 am

Halling:

“I have shown that the “scarcity theory of property rights” against patent is flawed both logically and factually…. These posts show that the empirical evidence does not support the scarcity theory of property rights. The posts also show that the “scarcity theory of property rights” does not explain how property is to be allocated, how property rights in an object or idea are created, why slavery is wrong, why murder is wrong, etc. While the labor theory of property rights explains this and more. Trading the scarcity theory of property rights for the labor theory of property is like trading the theory that “what goes up must come down” for Newton’s Law of gravity. The fact of the matter is that the proponents of scarcity have confused cause with effect. A system of private property results in efficient allocation of resource, but it is not the reason for private property – it is the effect of private property.”

Mr. Halling, you are gravely mistaken. Your posts show nothing of the sort; they are nothing but a confused mishmash of scientistic fallacies. Your very comment “the empirical evidence does not support the scarcity theory of property rights” shows how confused you are: “empirical evidence” cannot prove or disprove a given normative theory of property rights. You may be a fine patent attorney but you suffer, like too many of your ilk, from engineers’ syndrome. Why you guys don’t just keep quiet if you don’t want to take the time to learn a bit about political philosophy and economics is beyond me.

As Rothbard wrote: “It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a “dismal science.” But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.” –

For more on Engineers’ Syndrome, see C.P. Snow’s “The Two Cultures” and Misesian Dualism

Engineers’ Syndrome

Libertarian Activism–comments [engineers, etc.]

Yet More on Galambos

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Shay October 2, 2009 at 11:47 am

Stephan, the links at the end of your post just now are broken, saying something about the post being removed/renamed/unavailable.

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Bala October 2, 2009 at 8:00 pm

Dale B. Halling

” I did not add any information to the store of human knowledge, by my independent discovery. The same is true of inventors, just because someone independently comes up with an idea after the inventor, does not make them an inventor. ”

Your argument is most flawed. Are you saying that only the person who invented something (figured out an idea) first has the right to act on the idea and that others may act on it only by their permission? Are you implying that by the sheer act of inventing something, one individual gets the right to infringe upon the Liberty of un-named and an uncounted number of individuals? That to me sounds as bizarre as it gets.

You are engaging in circular reasoning when you refer to the existing patent system to justify it. Very avoidable and self-defeating, in my opinion.

Further, in your reply to Stephan, you tried to show that the “scarcity theory” against patent laws is flawed. Even granting your position (unlike Stephan), how does that negate my point that patents are an infringement of Liberty?

If you read my posts, you will realise that my opposition to the concept of IP is on grounds of Liberty alone. I don’t think referring to anything else (like scarcity theory) is an answer to my post. If at all, I see it as a shameful attempt to drag me into a different discussion that neither of us can win and which you can therefore prolong for as long as you wish. I hope you can see how academically dishonest that it.

Your post is the yet another reason I am urging Stephan to limit his discussion on IP to the Liberty principle and not allow people to side-track the discussion the way you are trying to.

Stephan, I am sure you are listening. Are you beginning to see what I mean when I say ‘Stick the the Liberty principle to defeat the very concept of IP”?

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Gil October 2, 2009 at 11:53 pm

Well to be hardcore Bala – do patent holders have to justify the system on Utilitarian grounds at all? After all, private real property don’t have to justify their property ownership on Utiliitarian grounds. Suppose a farmer and his family homesteads fertile land and a lake by fencing it off and begins to farm the land in an inefficient, organic way that’s land and labour intensive? Imagine the farm is so inefficient that the food output from the farm is lower when nomadic hunting/gathering people would extract food from the same place, can the nomads argue their liberty was destroyed by this farmer? They are now trespassers if they try to access the same land and they can’t access the resources on the land because the farmer has no intention of selling his produce rather he intends only to feed himself and his famliy. Suppose the farmer was knowingly doing all this because he wants his family and ultimately his tribe to solely occupy this area and has the ulterior motive of pushing out surrounding tribes – has he broken any Libertarian laws? Or were the previous nomads foolish in not homesteading the land themselves and settling down before a jerk of a farmer and his fellow tribe moved in?

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Bala October 3, 2009 at 2:55 am

Gil,

” do patent holders have to justify the system on Utilitarian grounds at all? ”

If you ask me, I would say no. Or rather, it would serve no purpose. The reason is simply that no utilitarian justification would overcome the moral case against patents as being an infringement of Liberty.

That apart, your pointless story about the farmer and the nomads just indicates that you are clutching at straws. When you do so, remember that straws do not make good flotation devices.

If I may make a suggestion, stop hesitating and just jump over to the camp of Liberty. The ride is not going to be easy but it is the correct thing to do.

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Dale B. Halling October 3, 2009 at 9:27 am

Bala,

You idea of liberty is skewed as best – anarchy is not liberty. Your desire to steal the efforts of inventors is not moral, it is not liberty, and it is not good for the economy.

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sweatervest September 4, 2011 at 4:10 pm

“anarchy is not liberty”

Anarchy does not imply liberty, but liberty implies anarchy (taken to mean no rulers).

“Your desire to steal the efforts of inventors”

You can steal an effort!? Can I steal the color blue? What about love?

“is not moral”

It’s immoral to imitate? This always reminds me of little school-children who get pissed off when some other little kid wears the same outfit they do. “Hey, you stole my idea!”

“it is not liberty”

Ahh so it is not liberty to be able to recognize what other people are doing as useful and to do it yourself. But it is liberty to do something useful in front of everyone and then insist that none of them imitate you!

“and it is not good for the economy.”

But it is good for the economy to outlaw imitation and insist that everyone pay each other to do so? Well, that sounds really inefficient considering that people could perform just as useful actions at a lower cost without outlawing imitation.

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Bala October 3, 2009 at 11:46 am

Dale B. Halling,

” You idea of liberty is skewed as best ”

My definition of Liberty is this – The freedom to act as I choose to as long as such action does not amount to initiation of force against another individual.

Now, please tell me what is skewed about it.

” anarchy is not liberty ”

Where did I speak of Anarchy? I think you are either imagining demons or trying to side-track the discussion. I am not sure I am ready for that.

” Your desire to steal the efforts of inventors ”

It is not my desire I am talking of. It is the principle that I am free to form any concepts at all by observing the world around me. I can even form concepts by looking at your property as long as I am not initiating force against you in doing so. To say that I should not form certain concepts that you think I should not or to demand that even if I form such concepts, I should not seek to act as my mind says I should is to demand that I subordinate my mind to your wishes.

In sum, the principle of your “argument” is that one man should have the “right” to force another man to subordinate his mind to the former’s wishes. That is nothing more than the definition of slavery. Thus, you desire that those who produce ideas may have the right to subject all others who use products that use their ideas to slavery.

And why do I form concepts based on my observations? Because I am human and it is in my nature to form concepts based on what I perceive and then use the concepts so formed to guide my actions. There is no other way a human can live and to demand that a person live otherwise is to demand that he lives a sub-human existence. If you demand that I do so so that you may derive your benefit, you shall be deemed the moral equivalent of a cannibal.

” is not moral ”

Looks like you and I have different definitions of the word “moral”. Stealing is not moral in my dictionary too. The difference is that forming concepts based on my perceptions, using such concepts to decide on a course of action and acting as per those decisions is moral as long as I am not harming myself or initiating force on another individual in the process. To call this process stealing is to categorise the entire process of education as an act of stealing. Is that what you are trying to say?

” and it is not good for the economy ”

And since when did the benefit to the economy become the standard of evaluating the morality of an individual’s action? Since when did my actions need the sanction of the “economy”, whatever you mean by that? Free men do not live by the sanction of others.

Your meaningless post only shows that you have run out of ideas and are trying your level best to try to divert the discussion. Unfortunately for you, I am not falling for those tricks. So try refuting my arguments instead.

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MHnTX October 3, 2009 at 12:53 pm

“property rights are indeed undercut by patents. And even on utilitarian grounds, it could be argued that the patent system imposes an overall net cost on the economy”

I fail to see how a pharmaceutical company developing a drug that cures cancer or the common cold or a scientist inventing a process to launch cargo into space for a dollar a pound could possibly be considered a net cost increase to society when the product itself would not even be in existence prior to the inventor’s idea making it possible. And any debate of holding back innovation or retarding price reductions for society afterward seem to be made moot by the fact that without the inventor society would not have had the value to talk of manipulating and looting in the first place.

“1.9 million years ago – Grog invents using fire to cook food. Arrgg sees this and imitates it. Soon, the practice spreads. Ditto with living in caves, using spears to kill animals, building “houses,” and dressing in cured animal hides. Nobody sues anybody. No patent system has been invented yet.”

One could also argue that Grog, the discoverer, was not a sweet little selfless Disney character. Upon discovering the magic of making fire, he was also a clever enough capitalist to understand the potential advantage this would give him ,and so he held his secret very close as a way to extract extra benefit and privilege and power among his tribe. The tribe, seeing Grog’s fire as a great benefit, might justifiably, in their own rational self interest, also seek to protect Grog from attackers from within and without the tribe, as without Grog’s great magic they would all be back to living in the cold and eating raw meat.

Arrgg, the stronger, on the other hand, could have arguably been one of the first plunderers and looters in history too. Seeing the benefit of Grog’s fire and envious of the great benefits Grog derived from it, and not at all happy that he or others should have to pay for such a thing, instead decides to trespass on Grog’s territory, steal the secret, and in true Michael Moore fashion, make the secret cheaply available to all… thereby removing any reasonable expectation of safety or security for further quality inventors and discoverers, hence holding back the discovery of the light bulb by almost a full two million years.

The patent system we have today may be in serious need of repair but IMO the anti-IP movement is looking more and more like the ‘libertarian’ anarchists intellectual “Jump the Shark” moment.

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Peter October 3, 2009 at 6:58 pm

anarchy is not liberty

That would depend how you define anarchy. If by “anarchy” you mean what the components of the word actually mean: “ἀν·αρχή” – no (political) rule – then “anarchy” and “liberty” are synonymous (what else could you mean by “liberty”?). If you mean something like “no (behavioural) rules” (ἀ·νόμος) or “chaos” then (a) your statement above is correct, but (b) you have an incorrect definition. (Either way, you’re wrong!)

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Dale B. Halling October 3, 2009 at 9:15 pm

According to you I should be able to copy Mark Twain’s book “Tom Sawyer” the day after it comes out without paying a royalty. After all you are human and allowed to conceptualize. That doesn’t sound like stealing – it doesn’t sound like you are using force. If I decide to harvest apples from your apple orchard, I haven’t initiated force against you, so you should not be able to enforce your fictional property rights against me.

Actually, yes your ideas do sound like stealing and are clearly immoral. According to your theory I can plagiarize ideas, steal ideas, and freeload off the creators of this world with impunity.

Free markets and freedom are based on the concept that a person owns himself and therefore the products of his labor, including both his physical and mental labor. The labor theory of value explains private property rights – including intellectual property rights, criminal law, who owns property, and how it is distributed. Mr. Kinsella’s scarcity theory of property does not explain how property is to be allocated, why one person is deemed to have ownership, and does not explain criminal law.

Ayn Rand’s comments on intellectual property might be illuminating to you. She states, in Capitalism: The Unknown Ideal, 130. “What the patent and copyright laws acknowledge is the paramount role of mental effort in the production of material values; these laws protect the mind’s contribution in its purest form: the origination of an idea. The subject of patents and copyrights is intellectual property.

An idea as such cannot be protected until it has been given a material form. An invention has to be embodied in a physical model before it can be patented; a story has to be written or printed. But what the patent or copyright protects is not the physical object as such, but the idea which it embodies. By forbidding an unauthorized reproduction of the object, the law declares, in effect, that the physical labor of copying is not the source of the object’s value, that that value is created by the originator of the idea and may not be used without his consent; thus the law establishes the property right of a mind to that which it has brought into existence.

It is important to note, in this connection, that a discovery cannot be patented, only an invention. A scientific or philosophical discovery, which identifies a law of nature, a principle or a fact of reality not previously known, cannot be the exclusive property of the discoverer because: (a) he did not create it, and (b) if he cares to make his discovery public, claiming it to be true, he cannot demand that men continue to pursue or practice falsehoods except by his permission. He can *copyright the book in which he presents his discovery and he *can demand that his authorship of the discovery be acknowledged, that no other man appropriate or plagiarize the credit for it—but he cannot copyright theoretical knowledge. Patents and copyrights pertain only to the practical application of knowledge, to the creation of a specific object which did not exist in nature—an object which, in the case of patents, may never have existed without its particular originator; and in the case of copyrights, would never have existed.

The government does not “grant” a patent or copyright, in the sense of a gift, privilege, or favor; the government merely secures it—i.e., the government certifies the origination of an idea and protects its owner’s exclusive right of use and disposal.”

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Bala October 3, 2009 at 10:27 pm

Dale B. Halling,

NOW….. the discussion is getting interesting. Especially your reference to Ayn Rand. It is precisely this point that we should be discussing. Once this is resolved, I am sure the issue would be much clearer. However, I am a little tied up for now and will respond in a day’s time. Until then, please bear with me.

Interestingly, I was until recently where you are. It was the identification of a teeny-weeny contradiction in Rand’s statements that brought me to the realistion that IP is a violation of Individual Liberty and should be discarded. Just bear in mind that mine is a completely moral position. I will soon elucidate it. Thanks in advance for the patience.

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Stephan Kinsella October 3, 2009 at 10:53 pm

Halling:

According to you I should be able to copy Mark Twain’s book “Tom Sawyer” the day after it comes out without paying a royalty. After all you are human and allowed to conceptualize. That doesn’t sound like stealing – it doesn’t sound like you are using force. If I decide to harvest apples from your apple orchard, I haven’t initiated force against you, so you should not be able to enforce your fictional property rights against me.

Actually, yes your ideas do sound like stealing and are clearly immoral. According to your theory I can plagiarize ideas, steal ideas, and freeload off the creators of this world with impunity.

Halling here just makes assertions and gives no arguments. He does not seem to realize an argument is required. He does not even seem to realize what question-begging is–since he engages in it extensively, in his comments that it’s “stealing”, and in his assertions that it’s “clearly immoral.” Well, that settles it then!

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Jason Gordon October 4, 2009 at 9:40 am

Halling:
“It is important to note, in this connection, that a discovery cannot be patented, only an invention. A scientific or philosophical discovery, which identifies a law of nature, a principle or a fact of reality not previously known, cannot be the exclusive property of the discoverer because: (a) he did not create it, and (b) if he cares to make his discovery public, claiming it to be true, he cannot demand that men continue to pursue or practice falsehoods except by his permission.”

But he can demand they use inferior, wasteful, and outmoded technology except by his permission?

Is there a difference between “discovering” a mechanical configuration that performs a desired task, e.g. a mousetrap, versus “discovering” a mathematical configuration that performs a desired task, e.g. Hooke’s law?

Legal positivism aside, I submit that there are simply no hairs here to split.

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Dale B. Halling October 4, 2009 at 11:10 am

Yes, Stephan providing evidence and arguments for one’s position is required for a useful discussion, however all you ever provide is name calling. Your position allows one to steal the product of other people’s minds. It does not force people to use substandard technology, it just does not allow you to steal the product of other people’s thoughts. Of course, it you do not believe that the creator of an invention has done anything special, why would you want to copy it? Stealing ideas is the same as stealing physical property.

By rejecting the value of the human mind, your have more closely aligned yourself with Marx’s physical labor theory of value than the free market. If your ideas are adopted, it will lead to the same disastrous consequences that occur wherever Marx’s ideas have been tried.

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Shay October 4, 2009 at 11:45 am

Dale, when you talk of stealing ideas, the only thing I can think of is somehow erasing the idea from a person’s mind after you have learned it. But I really doubt you mean this. I’m thinking you mean copying an idea, which means that the first guy still knows of the idea and can use it. But doesn’t this mean that “theft” is the wrong word to use?

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Stephan Kinsella October 4, 2009 at 11:57 am

Halling: “Your position allows one to steal the product of other people’s minds.”

You seen incapable of realizing that question-begging is fallacious. What we disagree on is whether it is stealing. Do you not even realize this is the debate?

“Of course, it you do not believe that the creator of an invention has done anything special, why would you want to copy it?”

Why does “doing something special” imply “I have a property right”?

“Stealing ideas is the same as stealing physical property.”

Really? The same? Stealing usually means taking something from someone so that he does not have it any more. But if I see your method for fishing and emulate it, you still have the knowledge. I didn’t take it from you.

“By rejecting the value of the human mind,”

I don’t reject the value of the human mind. Your comment is ridiculous and unfounded.

Are you unable to mount even the semblance of a rational argument on behalf of the statist IP privileges you support?

REPLY

Dale B. Halling October 4, 2009 at 1:01 pm

Stephan, perhaps you studied trademark law. When someone uses your trademark, they do not deprive you of it – physically. When you copy the Matrix movie and sell it to others you do not deprive them of it physically, but you deprive them of their invention, of their artistic creation, or of their brand.

Since I own myself, then I own the products of my labor both physical and mental. You only copy my inventions (mental labor) because you wish to profit from other people’s efforts without compenstating them. This either makes you a thief or a parasite.

REPLY

Jason Gordon October 4, 2009 at 2:37 pm

Halling: “You only copy my inventions (mental labor) because you wish to profit from other people’s efforts without compenstating them. This either makes you a thief or a parasite.”

Perhaps you can elaborate on the fundamental difference between discoveries and inventions by perusing the timeline for the field of quantum computing.

How does a scientific advancement become theft or parasitism in the absence of a preceding innovative building block becoming registered for government protection? (Set aside false claims of discovery/authorship/attribution.)

REPLY

Stephan Kinsella October 4, 2009 at 3:24 pm

Halling:

“Stephan, perhaps you studied trademark law. When someone uses your trademark, they do not deprive you of it – physically.”

Yes, and trademark law is justified only insofar as the seller defrauds his customers. It should not give a cause of action to his competitors. If you had read my systematic critique of IP law you would realize this; but you obviously haven’t, since you are just spouting the pro-IP line and are not really interested in whether it’s valid or not, and even in understanding the views of your opponents. To be clear: I completely understand your pro-IP position. No one can claim I do not. But you do not even (care to) understand your opponents.

“When you copy the Matrix movie and sell it to others you do not deprive them of it physically, but you deprive them of their invention, of their artistic creation, or of their brand.”

What are you jabbering about?

“Since I own myself, then I own the products of my labor both physical and mental.”

Wrong. Owning your “self” means you have the right to exclude others from using your body. If you had read my monograph you would see that you are merely repeating the flawed “creation” view of rights.

” You only copy my inventions (mental labor) ”

there is nothing wrong with copying mental labor–it’s called “learning.” Something you should do more of.

REPLY

Bala October 5, 2009 at 9:16 am

Dale B. Halling,

I have to agree with you on one thing – “to copy Mark Twain’s book “Tom Sawyer” the day after it comes out without paying a royalty” is immoral.

However, having read almost everything that Ayn Rand had said and considering that you too are shooting from her shoulder, let me try to give you a slightly different perspective on that statement of agreement.

As I understand what Rand said, Morality is a code of values guiding man’s actions when faced with choices. Under this definition, Morality is something that operates ONLY at the level of the individual.

Morally, the act copying Mark Twain’s book without paying royalties the day after it is published is a poor choice because the work is not mine. I shall derive no true rational happiness out of the act of copying the book, distributing it and collecting the profits except that I would have done the job efficiently.

Further, my doing so would deprive Mark Twain of the income he would have got in the form of royalty if even some of the people who bought the book I printed instead bought the one printed by the publisher who pays Twain a royalty. This would be a severe jolt to Mark Twain who would then think twice about writing another book because he may find that his time may be better spent pursuing other and more beneficial activities. In the process, I too lose the opportunity to read more books of his, provided I too derive happiness from doing so.

Thus, weighing the pros and cons, such an action does reduce my own long-term well being and happiness and if I am a rationally selfish person, I should not engage in the act of printing and selling Mark Twain’s book without his permission and without paying him a royalty.

I hope that tells you that it is not that I am interested in “stealing” (though as Stephan says, calling it that is question begging).

That said, let me bring in the other important point. If you have read your Rand properly (as I think I have), she has defined Morality as a code of values. As per Rand, the highest value to any man is his Life. Life is a sequence of self-generated and self-sustaining actions. The purpose of life is life.

To sustain life, man, like every other living being, needs to act. Since man’s concepts and values are not automatic, he needs to form them using his rational mind. The concepts and values thus formed help man identify the best course of action under any circumstance. The end result of this process of concept formation and thinking is action. The purpose of such action is to seek value – value that sustains his life.

To sustain his life qua man, man needs two fundamental conditions to be satisfied
1. The Liberty to form concepts based on the percepts he receives from his environment and
2. The Liberty to act on his choices
Preventing him from doing either of these is to condemn him to death.

The only way to infringe upon a man’s Liberty is to initiate force on him. Thus does the principle of “non-initiation of force” originate.

The concept of Liberty has a “positive” and “negative” aspect. The “positive” aspect is that a man may undertake any action as long as he is not initiating force against another man. The “negative” aspect is that others may not initiate force against him. This is the moral and political concept of Liberty.

The concept of property logically derives from the principle of Liberty thus outlined. Man is at liberty to seek the values he chooses either by gathering or by producing. As long as he is not initiating force against another man, no one may prevent him from doing so. Once he has acquired these values, there is only two ways to take the value away from him.

1. Trade with him – give him some other value in exchange for the value he has
2. Initiate force against him to make him give up the value for nothing or for some thing of less value

The former is moral because it preserves his Liberty. The latter is immoral because it is an infringement of his Liberty.

This, IMO, is the moral concept of Property Rights – not from labour; not from creation or anything else similar. The concept of Property is the recognition that initiation of force is not a proper means of dealing with other men.

Rand also said “Law is a means of subordinating society to Moral Law”. While this is a very nice statement, what she (IMO) missed out is that society to a man is just a certain number of other individuals and that the ONLY Moral Law that others need to follow with respect to an individual is to refrain from initiating force against him. She herself said that no man has any obligation to another other than respecting his individual rights.

In other words, the only Law that man needs is one that ensures that others do not infringe upon his Liberty and that if they do so, they will not get away with it. No law may be promulgated that violates individual liberty of those who have not violated that of others, even if it may claim to protect certain other rights.

Specifically on the point of Intellectual Property and the “copying” of inventions, Rand’s error was fundamentally to ignore the simple (though not obvious) point that in forming a concept, man is not initiating force against anyone else. This error is especially intriguing, coming from a person who have given a very sound epistemology of reason in her book “Introduction to Objectivist Epistemology”.

For instance, if you come up with an invention, incorporate it in a product and then sell the product to me, the first thing that happens is that the product becomes my property. When I subsequently study that product, I am not initiating force against you because I am engaging in a study of my own property. If in the process, I form the concept of how your invention works, I am completely at liberty to do so because I am acting as per my nature as man – a rational animal with a volitional consciousness seeking to organise his percepts into an intelligible system of interrelated concepts. If I then choose to give physical shape to the concept by arranging materials (which I procure by trading with those that have them, thus making them my property) suitably, I am being morally correct because surviving by producing value for consumption and trading is moral; it is the natural state of man.

The concept of IP seeks to hold as punishable, the act of forming concepts and acting on such concepts even though the process does not involve any initiation of force by the individual on any one else, least of all on the person who “produced” the idea. By seeking to initiate force on such men to restrain them from being human, it is a gross violation of their Right to Liberty.

To claim otherwise is either an error of omission (that goes for Rand) or an error brought on by a deliberate evasion of reality.

In sum, even if one uses Ayn Rand’s conception of Individual Rights, IP is an abomination because it is antithetical to the concept of Liberty. Let us be very clear on one point – Life > Liberty > Property. This is a very simple inequality to understand. Just take a look at the structure of the penal systems followed in civilised societies to get a grip on this. Simple crimes are punishable with fines (loss of Property). Graver ones are punishable with imprisonment (loss of Liberty). The gravest ones are punishable with death (Loss of Life). Get the point? Life makes Liberty and Property necessary while Liberty makes Property possible.

REPLY

newson October 5, 2009 at 10:30 am

let’s be realistic. first, who would publish “tom sawyer” one day after it’s released? only already successful works are attractive to the “pirate”. so by the time the renegade publisher commits to print, the authorized publishers have already recouped, at least partially.

second, whilst the author may be missing out on royalties, his name and reputation are likely to be more widely spread by the pirate (costs being lower, therefore the work is accessible to a poorer demographic, too). the person who buys a knock-off today, may be the same person who buys an authorized hard-back next year.

paris hilton should demonstrate to anyone that fame is a marketable commodity, even to those of modest talent. smart people like mark twain was should have no problem in capitalizing on this goodwill.

REPLY

Bala October 5, 2009 at 11:07 am

newson,

While I do agree that the outcomes you have identified are indeed possible, as an individual, I may still desist from reproduction. That is still to say that it is a completely personal decision and different people may react differently. It is definitely not justification to deem the act of “unauthorised” reproduction as criminal and punishable.

And yes. You are right in identifying that Dale Halling is tilting at windmills when he talks of copying a book the day after it is published.

REPLY

Michael A. Clem October 5, 2009 at 2:13 pm

It’s just painful watching you guys drag Dale Halling kicking and screaming from his vague and general points to specific and relevant points of the argument.
It’s important to be specific, I think, to clarify the issues. Newson brings up good points, but not ones relevant to the moral argument.
Forget “Tom Sawyer”. It’s public domain. Anyone can publish it and not pay Samuel Clemens or his heirs a penny.
Let’s take, say Stephen King, instead. It is not wrong to copy his latest novel for my own personal use. Perhaps I want a copy of it on my computer, or perhaps I think manually copying it will help me understand writing and make me a better writer.
It is wrong to copy his latest novel, and publish and sell it with my name as the author instead of his, because that would clearly be fraudulent. No IP law is necessary to deal with that.
It would not be wrong for me to take the same plot, style, or characterization of his novel and write my own novel with those same elements. Ideas are not property–we can only be concerned with specific implementations of those ideas. King’s novel would be one implementation, my novel would be a different implementation.
Would it be wrong if I published a novel that used the same characters as his, perhaps even the same settings, but with a different plot? Here we get into murky waters–how much of his novel is truly “his”, and off-bounds to other writers (without his permission) and how much is freely available to others to use? These are the kinds of issues that need a clear understanding to sort out.
Is it wrong to publish it, with his name on it, but not pay him anything for doing so? Actually, yes, I think there is a problem with that, but I must emphasize, that that doesn’t justify calling his novel his “property”. And that’s the problem with IP laws. To deal with an obvious injustice, they’ve tried to create a whole new class of artificial “property” that conflicts with traditional property, and then lawyers, of course, have tried to stretch that to cover more than it should, thus creating new injustices.
Sticking to fraud, tort, defamation of character and other common law developments should be enough to deal with obvious injustices, without allowing the law to go too far the other way.
Was the 1940′s Captain Marvel an infringement on the Superman character? CM was obviously a copy to a degree, but the Captain Marvel stories were quite different in other regards than the Superman stories. That didn’t stop National Periodical Publications from essentially bankrupting Fawcett with lawsuits. That’s the kind of injustice that IP law can’t seem to cope with.

REPLY

Bala October 5, 2009 at 7:56 pm

Michael A. Clem,

” That’s the kind of injustice that IP law can’t seem to cope with. ”

Someone who agrees with the concept of IP would not see that as injustice. In example of this kind that you show, they will only look for aspects that vindicate their stand. I can tell you this for sure because until recently, I was in the other camp.

REPLY

newson October 5, 2009 at 8:24 pm

to bala,
the history of copyright was the turning-point for me. it was a very shabby arrangement, but time and existing practice tends to blind us to the original agenda of the interested parties (rulers and the publishing industry).

http://questioncopyright.org/promise

REPLY

Bala October 6, 2009 at 12:17 am

newson,

Nice read. Thanks for the link. However, a glance at the comments, especially the ones that object to the idea behind the article and that support copyright laws, shows me that I am yet right.

My observation, to make it clear, is that the campaign for copyrights has worked in the sense that there are a lot of people who think that patents and copyrights are morally correct principles. People who think thus are likely to see existing laws on patents and copyrights as morally sound but riddled with loopholes through which “crooks” who wish to steal the product of the creative people’s minds escape (Dale Halling is a prime example. I was another example till I realised the connection to Liberty.). Such people are bound to ask for stronger laws, stricter enforcement and more stringent punishment. It is not that these are evil people who are against Liberty. It is that these people believe that is the right thing to do.

In fact, after reading this article and the comments, I stand all the more convinced (and vindicated) that if at all one is to make a success of the campaign against IP and to ultimately get rid of its infringment on our Liberty, we need to also present a moral case against IP. We need to show that Patent and Copyright Laws as they exist are immoral and need to go.

Just to draw a parallel, I am indeed happy that I read Ayn Rand and her moral case for Gold as money and for Capitalism as the only moral social/political system evolved by man, prior to reading Ron Paul’s “The Case for Gold” and Rothbard’s “The Mystery of Banking”. While these latter books presented me with a fantastic historical and logical case against fiat money and government intervention in the monetary system, the arguments struck deep in my mind because I knew that the authors were morally on a solid grounding. Given that I knew what was right, understanding what was wrong with what is happening, why it happened and how one is to go back to the right path was made easy.

In my opinion, the Moral case makes the Utilitarian case more valuable. The Utilitarian case will show that the Moral is indeed the Practical, but the Moral case needs to come first.

In case you do agree with the moral case I have tried to present above, please do suggest ways by which one can expand on it (or even condense it – the objective is to make it easy to understand but still comprehensive) and use it effectively in the campaign. (I have drawn heavily on Ayn Rand’s work in doing so.) At the end of the day, the idea is to spread this message far and wide. mises.org is a good way to do it.

In case you (or anyone else including Stephan too) think that it needs correction, I think making those corrections and making a solid moral case should be one of the key steps to take.

REPLY

sweatervest September 4, 2011 at 3:52 pm

Ideas are not property because they are not means employed in action. It makes no sense to “use an idea”. Therefore both value and ownership simply do not apply to “ideas”. It is meaningless to speak of the value or ownership of an idea.

The only thing you can “use” is a physical, scarce good. There is no such thing as “using” and idea, which means there is no such thing as “valuing” or “owning” an idea. Only the physical good that is the good it is because of its specific configuration can be used, valued or owned.

A clay wheel is just a bunch of a clay, and nothing more. To own a clay wheel means to own the clay that makes up the wheel and nothing more. To value the wheel more than something else is to prefer the clay that makes up the wheel to some other physical good. It is meaningless to attach value or ownership to this wheel beyond the clay that makes it up.

It is a “wheel” only because the clay is shaped to be round. If one reshaped the clay it would cease to be a wheel and, correspondingly, its value will likely change because one cannot employ the clay in the same way as one could if it was shaped to be round. This does not change the fact that they wheel is nothing but clay. They clay counts as a wheel because it is in a specific form, and derives its value from being in that form, but the value is attached only to the clay that makes it up. This is simply due to the fact that the only thing one can use, that is to employ as a means in action, is the clay.

The same goes for ownership. One owns the clay, not the fact that it the clay is shaped to be round. It is meaningless to speak of ownership of the latter, for to own means to exclude use, and so it only makes sense to speak of ownership for things that can be used, and one cannot use the fact that clay is round. One can only use the clay.

If another mold of clay is shaped to be round it will also be a wheel, and one can construct a mental category that includes all physical goods that count as a “wheel”. One can say that this mold of clay is the “same” good as this other mold of clay in the sense that they are both instances of this mental category. But the mental category itself is not a means to action and cannot be valued or owned.

This is no different than insisting, as any good economist always does, that there is no such thing as the value of “gold” or “water” per se, but only the value of this unit of gold right here and now, or this unit of water right here and now. One cannot use gold itself or water itself, one can only use a marginal unit of gold or water. Therefore both ownership and value apply only to the marginal unit.

If one molds one’s clay into a wheel, the one is only justified in doing this if he already owns the clay. He continues to own the clay after he has molded it into a wheel because it is his clay. The fact that one can establish a connection or similarity between this clay and this other clay (i.e. that they are both wheels) has no effect on this. One certainly does not gain ownership over the clay of others by molding his own clay into a wheel. To say that one does gain such ownership is at odds with the ownership rights the person had to have in order to justifiably make his first wheel! Doing so required the right to homestead clay and use it in any way that does not use without permission the physical goods of others.

If one can claim ownership over all clay by molding his into a wheel then one could claim ownership over all clay by using clay in any way. An IP proponent might object that he does not say one claims ownership over all clay by molding his into a wheel and patenting the wheel. He only claims ownership over all clay that is molded into a wheel. But this is false because to claim ownership is to restrict use and to say one owns any clay once it has been molded into a wheel is to claim ownership over all clay because it is restricting use of all clay to uses that do not involve it being molded into a wheel. It cannot be anything other than a claim of ownership over all clay.

But it’s worse than this. A wheel need not be made of clay, it can be made of anything sturdy. So patenting the wheel not only claims ownership over all clay but ownership over all goods that could potentially be molded into a wheel. This is quite clearly at odds with the original wheel maker’s right to make his first wheel, because he would also have to be the first user of any good ever. He would have to be the first actor engaging in the first purposeful action ever executed in order to be justified in making the first wheel, because otherwise someone else would have already made use of some other good, thereby making a claim of ownership over all goods at all times. The first wheel maker must rely on his right to homestead goods that are not already being used and maintain his ownership of those goods as he transforms them into more useful forms. The patent claim then contradicts this very right.

But this whole problem is easily solved by just remembering that one cannot “use” the “class of all wheels”. One does not employ the abstract concept of a wheel in action, so it literally means nothing to speak of the value of a wheel per se or the ownership of wheels per se. It only makes sense to speak of value or ownership of the thing being employed in action: the marginal unit of clay that has been molded into the shape of a wheel. The patent claim is not a claim of ownership over wheels per se, as such a claim is meaningless. It can only be a claim of ownership over all marginal units of scarce goods that could potentially be transformed into something that counts as a “wheel”. This implies one can establish ownership without use, and as soon as this is admitted the very concept of ownership breaks down. Ownership is only meaningful when it means that someone owns something until he volunteers to give up such ownership. To say someone owns something until someone else volunteers to transfer the ownership is to destroy the very concept of ownership itself.

This applies no less to novels, movies and music than it does to wheels. There is no such thing as using a novel, movie or song and therefore no such thing as value or ownership of a novel, movie or song per se. There are only physical goods, such as ink and paper, or computer memory registers, that can be transformed into an instance of a particular good. Just like clay may be molded into a wheel, ink and paper may be molded into a novel. And just how one can say that this clay and that clay have both been molded into the “same” good, a wheel, one can say that this ink and paper and that ink and paper have both been molded into the “same” good, a particular novel. This certainly does not mean that when one creates the first instance of a novel with his own ink and paper that he gains ownership over the ink and paper of everyone else. To say so is at odds with the author’s right to his own ink and paper, which he needed in order to justifiably produce the first copy of his novel.

There is no “value” or “ownership” of a novel per se. It makes no sense to say that this novel is more valuable than this other novel, unless one is speaking of marginal units, i.e. a specific copy of a novel. To say that one novel is “more valuable” than another novel is like saying “gold” is more valuable than “water” or vice versa. There is no value or ownership attached to the mental category of a particular good, only to marginal units of that good.

This is simply because there is no such thing as “using” a novel per se, just like there is no such thing as using a wheel per se. One can only use this clay which has been molded into a wheel, and likewise one can only use the ink and paper that has been molded into a particular novel. Yes the ink and paper would be almost worthless in a different configuration, just like a clay molded into a square would be relatively useless. But that does not affect the fact that what is being used, and therefore valued and owned, is the clay and the ink and paper. Not the abstract concept of a wheel or a novel.

This not only establishes the moral bankruptcy of intellectual property, as it is always attempting to claim ownership over all useful goods, it establishes what is so absurd about thinking that intellectual property could lead to more production of creative goods.

The economics argument is always that without intellectual property the price of intellectual goods will drop to zero or near-zero and thus destroy the incentive to produce creative goods. This is quite true, and to claim this is concerning is insane. This is precisely the system of incentives that causes a market economy to function so well. Now the argument is never that intellectual property makes people value creative goods more. No one is suggesting that intellectual property shifts the demand curve of any creative good. Thus the only way the per unit price of creative goods would decrease is by moving down and right along a stationary demand curve, which is moving to a larger supply. That is a somewhat complicated way to say a very simple thing: when supply goes up the per-unit price goes down.

This is no less true with creative goods than with any other goods. So essentially what the IP proponents are concerned about is that without intellectual property the supply of creative goods would explode to the point that their per-unit prices drop to near-zero. So we find ourselves in quite a paradox where there are not enough creative goods to go around because there are so many creative goods to go around.

If creative goods were scarce then their per unit prices would not be near-zero. They would only drop to near-zero as they get distributed for free and cause the supply to explode, making it near effortless to obtain a creative good. If it any time there is actually a shortage of creative goods, this literally means that people are willing to spend larger and larger amounts of money on the production of more creative goods. The IP proponent is insisting that people cannot or will not do that, i.e. that they will not act economically. Something they want is in shortage, which can only mean that they are willing to pay people a solid amount to produce more of what they want, and yet they won’t do that?

Of course they will. If no one makes music because they don’t expect to make money for it then there will be a shortage of music and so long as people *want* music production they will pay to have it done. Artists will offer to make music once they are paid a certain amount up front for it, just like any other production model, and if there really is a shortage of music then people will be more than willing to pay their favorite artists to continue producing. How will people know what artists they like and not? Same way it always happens, and is happening now. They hear some of their music for free. You make a little music and advertise it, perhaps even paying people to distribute your music, and then you will gain a fanbase who will pay you to make more music.

The only reason this wouldn’t happen is because people are already satisfied with all the music they can download for free off the internet and do not consider it worth it to pay for production of further music. This is literally saying that there is already an abundance of music, and it would undermine the very functionality of a market economy for there to be strong incentives to produce something that has already been produced into abundance.

It is a very good thing that there are no incentives to produce that which already exists in abundance. If that were the case then entrepreneurs would not be more drawn the production of goods that are not in abundance and economic calculation would not function. Too much of some goods would be produced at the expense of too little of other goods.

But to be clear IP cannot raise the incentives to produce creative goods. If it did it would still not be a good thing because it would only interfere with the incentive structure of a free market and result in over-production of some goods at the expense of under-production of other goods, and some legislature can do this. This is what has happened to roads. If creative goods were financed through taxes then one would expect an over-production of creative goods at the expense of under-production of other goods. Tax-subsidizing creative production *would* increase the incentive to be a creative producer.

But IP does not does this, and actually results in *less* production of creative goods and correspondingly *lowers* the incentives to be a creative producer. This is because, as said before, IP does not shift the demand curve for creative goods but only prevents its supply from increasing dramatically and resulting in a correspond decrease in per-unit price. To raise the per-unit price (and therefore the income of a single creative producer) requires moving back up the demand curve to a smaller supply. The amount of money people are willing to spend on creative production does not change. All that changes is that the number of creative producers is dramatically lowered so that each individual creative producer receives a much larger fraction of that total amount. For the few creative producers that remain in the market, they serve to make much larger incomes than without IP. But this literally comes at the cost of the income of all the creative producers who have been pushed out of the market entirely. Only because all of their incomes drop to zero do the incomes of the few survivors go up. This does not raise the incentive to be a creative producer but lowers it by making it nearly impossible to be a successful creative producer at all.

This is no different than arguing that giving GM a monopoly on car production, which of course *will* serve to increase the income of GM, raises the incentives to produce cars and therefore results in more car production. This is obviously not the case because one is literally outlawing car production! It raises the incentives to be GM, and dramatically lowers the incentives to be any other car producer. It is the same thing with intellectual property, which aims to increase the production of creative goods by outlawing creative production (i.e. manufacturing without a patent, covering without a license, composing without double-checking every copyrighted melody, etc.)!

To see more specifically how this functions in the market of music, intellectual property in music recordings raises the per-unit price of, say, a CD. A person is willing to spend more on a CD because his option of downloading the music for free is made riskier with the threat of punishment. But of course this does not make him willing to spend more money on music than he otherwise would want to spend. It only means that he must spend a much bigger fraction of that money on each individual CD. Therefore he will buy much fewer CDs, and will of course only buy the few CDs that he wants the most. He will not buy all the CDs that he still enjoys but not enough to justify the high price. Extrapolating to the entire market, only those artists who appeal to a very large majority of music listeners will see appreciable CD sales, while those appeal to smaller and more specialized markets will be pushed out of the market because people buy the most popular artists’ CDs and then don’t want to spend any more money on their CDs and their fans will buy less of their CDs. This also produces a positive feedback in that fewer CD sales results in less advertisement and so less popular artists tend to remain obscure and unknown because people only want to spend $10 on a CD by an artist they already know about. They may risk $1 on an unknown local artist, but not $10.

And thus is the explanation for the hollowing out of the “music industry” to the point that it caters only to the most widely held tastes, i.e. “pop music”, while music appealing to smaller crowds, i.e. “artsy music”, is pushed almost entirely out of the market. Leftists always try to explain the homogenization of the music industry with some absurd claim that everyone is being “brainwashed” to like what they don’t really like. My explanation is much more sensible. When the market is restricted to only a few producers the only producers who will survive are those who cater to the largest demographic.

  1. Trump’s Plan to Raise Patent Office Fees: Thumbs Up. [↩]
  2. Kinsella, “Radical Patent Reform Is Not on the Way,” Mises Daily (Oct. 1, 2009).  [↩]
  3. Kinsella & Rosenthal, “How to Operate Within the Law: Patents on Medical Procedures” (Duane Morris website version), The Legal Intelligencer [Philadelphia] (Feb. 5, 1998) [↩]
  4. “The America Invents Act and Patent Reform: The Good, the Meh, and the Ugly,” Mises Daily (Nov. 14, 2011). [↩]
  5. eBay Inc. v. MercExchange, L.L.C. (2006). [↩]
  6. Alice Corp. v. CLS Bank International (2014). [↩]
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The Case Against IP: A Concise Guide (2009)

“The Case Against IP: A Concise Guide,” Mises Daily (Sep. 4, 2009).

 

Mises Daily

The Case Against IP: A Concise Guide

Like many libertarians, I initially assumed intellectual property (IP) was a legitimate type of property right. But I had misgivings from the start: there was just something too utilitarian and results oriented in Rand’s purportedly principled case for IP, and something too artificial about the state’s copyright and patent statutory classifications. I started practicing patent law around 1992, and the more I learned about IP, the more my doubts grew.

I finally realized that IP is incompatible with genuine property rights. (This echoed the sloughing off of my initial Randian minarchism in favor of Rothbardian anarchism, when I realized the state is aggression incarnate and cannot be justified. See my article, “What It Means To Be an Anarcho-Capitalist.”)

And so, in 1995 I started publishing articles pointing out problems with IP, finally culminating in my lengthy 2001 Journal of Libertarian Studies article “Against Intellectual Property,” which was republished as a monograph last year by the Mises Institute. A summary of the argument in this paper was set forth in my article “In Defense of Napster and Against the Second Homesteading Rule” (LewRockwell.com, 2000), and various of these pieces have been translated into other languages.

In recent years there has been a good deal of more useful writing on IP and, as my previous Napster article is somewhat dated now, the time is ripe to concisely restate the basic libertarian case against IP and provide links to some of the key anti-IP publications.

The Libertarian Framework

This section provides a brief sketch of the libertarian framework before applying these principles to IP.1

As Rothbard explained, all rights are property rights. But a property right is simply the exclusive right to control a scarce resource. Property rights just specify who owns, who has the right to control, scarce resources.

No political system is agnostic on the question of who owns various resources. To the contrary: any given system of property rights assigns a particular owner to every scarce resource. None of the various forms of socialism, for example, deny property rights; each socialist system will specify an owner for every scarce resource.

If the state nationalizes an industry, it is asserting ownership of these means of production. If the state taxes you, it is implicitly asserting ownership of the funds taken. If my land is transferred to a private developer by eminent domain statutes, the developer is now the owner. Thus, protection of and respect for property rights is not unique to libertarianism.

What is distinctive about libertarianism is its particular property assignment rules — its view as to who is the owner of each contestable resource, and how to determine this. So the question is: what are the libertarian property assignment rules that distinguish our philosophy from others?

Property in Bodies

There are two types of scarce resources: human bodies, and external resources found in nature.

Human bodies are of course scarce resources. As Professor Hans-Hermann Hoppe observes, even in a paradise with a superabundance of goods,

every person’s physical body would still be a scarce resource and thus the need for the establishment of property rules, i.e., rules regarding people’s bodies, would exist. One is not used to thinking of one’s own body in terms of a scarce good, but in imagining the most ideal situation one could ever hope for, the Garden of Eden, it becomes possible to realize that one’s body is indeed the prototype of a scarce good for the use of which property rights, i.e., rights of exclusive ownership, somehow have to be established, in order to avoid clashes.

Now the distinct libertarian view is that each person completely owns his own body — at least initially, until something changes this (e.g., if a person commits some crime by which he forfeits or loses some of his rights). Implicit in the idea of self ownership is the belief that each person has a better claim to the body that he or she directly controls and inhabits than do others. I have a better claim to the right to control my body than you do, because it is my body; I have a unique link and connection to my body that others do not, and that is prior to the claim of any other person.

Thus we can see that anyone other than the original occupant of a body is a latecomer with respect to the original occupant. Your claim to my body is inferior in part because I had it first. The person claiming your body can hardly object to the significance of what Hoppe calls the “prior-later” distinction, since he adopts this very rule with respect to his own body — he has to presuppose ownership of his own body in order to claim ownership of yours.

The self-ownership rule may seem obvious, but it is held only by libertarians. Nonlibertarians do not believe in complete self ownership. Sure, they usually grant that each person has some rights in his own body, but they believe each person is partially owned by some other person or entity — usually the state, or society. In other words, we libertarians are the only ones who really oppose slavery in a principled way. Nonlibertarians are in favor of at least partial slavery.

This slavery is implicit in state actions and laws such as taxation, conscription, and drug prohibitions. The libertarian says that each person is the full owner of his body: he has the right to control his body, to decide whether or not he ingests narcotics, works for less than minimum wage, pays taxes, joins an army, and so on.

But those who believe in such laws believe that the state is at least a partial owner of the body of those subject to such laws. They don’t like to say they believe in slavery, but they do. The liberal wants tax evaders put in jail — that is, enslaved. The conservative wants marijuana users enslaved.

Property in External Things

In addition to human bodies, scarce resources also include external objects. Unlike human bodies, however, external things are initially unowned. The libertarian view with respect to such external resources is very simple: the owner of a given scarce resource is the person who first homesteaded it, or someone who can trace his title contractually back to the homesteader. This person has a better claim than anyone else who wants the property. Everyone else is a latecomer with respect to the first possessor.

This latecomer rule is actually implied in the very idea of owning property. If the earlier possessor of property did not have a better claim than some second person who wants to take the property from him, then why does the second person have a better claim than a third person who comes later still (or than the first owner who tries to take it back)? In other words, to deny the crucial significance of the prior-later distinction is to deny property rights altogether.

Every nonlibertarian view is thus incoherent. On the one hand, they presuppose the prior-later distinction when they assign ownership to a given person (in that it says that person has a better claim than latecoming claimants). On the other hand, they act contrary to this principle whenever they take property from the original homesteader and assign it to some latecomer.

But what is relevant for our purposes here is the libertarian position, not the incoherence of competing views. And, in sum, the libertarian position on property rights in external objects is that, in any dispute or contest over any particular scarce resource, the original homesteader — the person who appropriated the resource from its unowned status, by embordering or transforming it (or his contractual transferee) — has a better claim than latecomers, those who did not appropriate the scarce resource.

Libertarianism on IP

Given the libertarian understanding of property rights, as sketched above, it is clear that the institutions of patent and copyright are simply indefensible. Patents grant rights in “inventions” — useful machines, or processes. A patent is a grant by the state that permits the patentee to use the state’s court system to prohibit others from using their own property in certain ways — from reconfiguring their property according to a certain pattern or design described in the patent, or from using their property (including their own bodies) in a certain sequence of steps described in the patent.

Copyrights pertain to “original works,” such as books, articles, movies, and computer programs. A copyright is a grant by the state that permits the copyright holder to prevent others from using their own property — e.g., ink and paper — in certain ways.

In both cases, the state is assigning to A a right to control B’s property — A can tell B not to do certain things with B’s property. Since ownership is the right to control, IP grants to A co-ownership of B’s property. This clearly cannot be justified under libertarian principles. B already owns his property. With respect to him, A is a latecomer. B is the one who appropriated the property, not A. It is too late for A to homestead B’s property — B already did that. The resource is no longer unowned.

Granting A ownership rights in B’s property is quite obviously incompatible with basic libertarian principles. It is nothing more than redistribution of wealth. IP is thus unlibertarian and unjustified. (See Against Intellectual Property, pp. 43–45, 55–56.)

Why, then, is this a contested issue? Why do some libertarians still assert the legitimacy of IP rights?

Utilitarianism

One reason libertarians support IP is that they approach libertarianism as a whole from a utilitarian perspective instead of a principled perspective. They are in favor of laws that increase overall utility, or wealth. And they believe the state’s propaganda that state-granted IP rights actually do increase overall wealth.

Now, the utilitarian perspective itself is bad enough, because all sorts of terrible policies could be justified this way: why not take half of Bill Gates’s fortune and give it to the poor? Wouldn’t the sum total of the welfare gains to the thousands of recipients be greater than Gates’s reduced utility? After all, he’s still a billionaire afterwards. And if a man is extremely desperate for sex, couldn’t his gain be greater than the loss suffered by his rape victim, say, if she’s a prostitute?

But even if we ignore the ethical and other problems with the utilitarian, or wealth-maximization, approach, it is bizarre that utilitarian libertarians are in favor of IP when they have not demonstrated that IP does increase overall wealth. (For further discussion of various problems with utilitarianism, see Against Intellectual PropertyDownload PDF, pp. 19–23.) They merely assume it does and then base their policy views on this assumption. It is beyond dispute that the IP system imposes significant costs, in money terms alone — not to mention the cost to liberty.

However, the argument that the incentive provided by IP law stimulates additional innovation and creativity has not even been proven. It is entirely possible — even likely, in my view — that the IP system, in addition to imposing billions of dollars of cost on society, actually reduces or impedes innovation, adding damage to damage.

But even if we assume that the IP system does stimulate some additional, valuable innovation, no one has established yet that the value of the purported gains is greater than the costs of the system. If you ask an advocate of IP how it is that they know there is a net gain, you get silence in response (this is especially true of patent attorneys). They cannot even point to any study to support their utilitarian contention; they usually point to Article I, Section 8 of the Constitution, as if the back-room dealings of politicians two centuries ago is some sort of evidence.

In fact, as far as I’ve been able to tell, virtually every study that attempts to tally the costs and benefits of copyright or patent law either concludes that these schemes cost more than they are worth, that they actually reduce innovation, or the study is inconclusive. There are no studies showing a net gain. There are only repetitions of state propaganda.

Anyone who accepts utilitarianism should, based on the available evidence, be opposed to IP.

Libertarian Creationism

Another reason many libertarians favor IP is confusion about the origin of property and property rights. They accept the careless observation that you can come to own things in three ways: through homesteading an unowned thing, by contractual exchange, and by creation.

The mistake is the notion that creation is an independent source of ownership — independent, that is, from homesteading and contracting. However, it is easy to see that it is not, that “creation” is neither necessary nor sufficient as a source of ownership.

If you carve a statue using your own hunk of marble, you own the resulting creation because you already owned the marble. You owned it before, and you own it now. And if you homestead an unowned resource, like a field, by using it and thereby establishing publicly visible borders, you own it because this first use and embordering gives you a better claim than latecomers. So creation is not necessary.

And suppose you carve a statue in someone else’s marble — either without permission, or with permission, such as when an employee does this with his employer’s marble by contract — then you do not own the resulting statue, even though you “created” it. If you are using marble stolen from another, your vandalizing it does not take away the owner’s claims to it. And if you are working on your employer’s marble, he owns the resulting statue. So creation is not sufficient. (See also Against Intellectual PropertyDownload PDF, pp. 36–42.)

Or, as Sheldon Richman explains,

A key reason [many libertarians support IP] is the importance attached to the act of creation. If someone writes or composes an original work or invents something new, the argument goes, he or she should own it because it would not have existed without the creator. I submit, however, that as important as creativity is to human flourishing, it is not the source of ownership of produced goods. … So what is the source? Prior ownership of the inputs through purchase, gift, or original appropriation. This is sufficient to establish ownership of the output. Ideas contribute no necessary additional factor. If I build a model airplane out of wood and glue, I own it not because of any idea in my head, but because I owned the wood, the glue, and myself.

Of course, this is not to deny the importance of knowledge, or creation and innovation. All action, including action that employs owned scarce means, involves the use of technical knowledge — knowledge of causal laws, for example. To be sure, creation is an important means of increasing wealth. As Hoppe has observed,

One can acquire and increase wealth either through homesteading, production and contractual exchange, or by expropriating and exploiting homesteaders, producers, or contractual exchangers. There are no other ways.Download PDF

But while production or creation is a means of gaining “wealth,” it is not an independent source of ownership or rights. Production is not the creation of new matter; it is the transformation of things from one form to another — the transformation of things one necessarily already owns. Using your labor and creativity to transform your property into more valuable finished products gives you greater wealth, but not additional property rights.

So the idea that you own anything you create is a confused one that does not justify IP.

The Contractual Approach

Some also argue that some form of copyright or possibly patent could be created by some kind of contractual tricks — for example, by a seller selling a patterned media (book, CD, etc.) or useful machine to a buyer on the condition that it not be copied. For example, Brown sells an innovative mousetrap to Green, on the condition that Green is not to reproduce it. (This is Rothbard’s example, from “Knowledge, True and False,” which is discussed at pp. 51–55 of Against Intellectual Property.)

However, in order for IP to work, it has to bind not only seller and buyer, but all third parties. The contract between buyer and seller cannot do this — it binds only the buyer and seller. In the example given above, even if Green agrees not to copy Brown’s mousetrap, Black has no agreement with Brown. Brown has no contractual right to prevent Black from using Black’s own property in accordance with whatever knowledge or information Black has. Thus, the contract approach fails as well. (See also Against Intellectual PropertyDownload PDF, pp. 45–55.)

IP and Statism

One final problem with IP can be mentioned. And that is that IP rights are statutory schemes, schemes that are constructed only by legislation. A patent or copyright code could no more arise in a decentralized, case-based legal system in a free society than the Americans with Disabilities Act could. In other words, IP requires both a legislature and a state. For libertarians who reject the legitimacy of the state or legislated law,Download PDFthis is yet another defect of IP.

Anti-IP Resources

  • 1This section is adapted from “What Libertarianism Is,”Mises Daily, August 21, 2009. More detailed notes and references pertaining to this section may be found there; many links in this section lead to endnotes in that article. See also my speech, “Intellectual Property and Libertarianism,” delivered at Mises University 2009, Auburn AL, July 30, 2009 (audio), an adapted version of which is forthcoming in Liberty magazine.

Archived comments:

Comments (77)

  • Matthew
  • Like you, I am fully anti-IP, but your argument against “libertarian creationism” argument will be easily side stepped by pro-IP libertarians. They can simply make the argument that the laboring statue carver is simply exchanging his legitimately established ownership rights for wages in contractual exchange.You assert that creation is an invalid method for establishing property rights (and again, I side with you), but I do not think your argument in this piece is going to change anyone’s mind who has made up his mind that it is valid. I recommend that you bolster your argument in this area.
  • Published: September 4, 2009 10:11 AM

  • Stephan KinsellaAuthor Profile Page
  • Matthew:”your argument against “libertarian creationism” argument will be easily side stepped by pro-IP libertarians. They can simply make the argument that the laboring statue carver is simply exchanging his legitimately established ownership rights for wages in contractual exchange.”

    Except that this is not what happens. If the statue carver uses my marble with my permission, he simply never gains ownership of it. Further, this trick could not be used with the example of the thief using another person’s marble. Finally, it is clear that if you own the marble already, you don’t need to find another explanation of why you own the thing you carve it into–you owned the marble before you transformed it, so you own it even after transformation. There’s simply nothing to explain.

    “You assert that creation is an invalid method for establishing property rights (and again, I side with you), but I do not think your argument in this piece is going to change anyone’s mind who has made up his mind that it is valid. I recommend that you bolster your argument in this area.”

    If you follow the links, you’ll see I have. This was a concise piece and not the place to bolster in detail.

  • Published: September 4, 2009 10:33 AM

  • DixieFlatline
  • Matthew,Stephan’s points are usually addressed less at the IP supporter, and more at bolstering the confidence and foundation of the anti-IP argument.

    People who want to believe in mythical founding fathers, property rights which are nonsensical, and that they can sell ideas permanently out of their minds, will do so regardless.

    Reach for the low hanging fruit. For every person who wants to argue about IP being legitimate, there are several who have yet to think it through and are easier to reason with.

  • Published: September 4, 2009 10:44 AM

  • Silas Barta
  • I notice you left out discussion of rights to radio waves, which makes your criticism of claiming rights in what other people can do with their stuff, kind of ring hollow. Perhaps that’s why you left it out — didn’t want to let people know about the acknowledged holes in your argument. Anyway, here goes:***

    Like many libertarians, I initially assumed radio spectrum property (RP) was a legitimate type of property right. But I had misgivings from the start: there was just something too utilitarian and results oriented in supposedly principled cases for RP, and something too artificial about the state’s bandwidth and usage class statutory classifications. I started listening to the radio around 1987, and the more I learned about RP, the more my doubts grew.

    I finally realized that RP is incompatible with genuine property rights. (This echoed the sloughing off of my initial Randian minarchism in favor of Rothbardian anarchism, when I realized the state is aggression incarnate and cannot be justified. See the article, “What It Means To Be an Anarcho-Capitalist.”)

    And so, in 2006 I started publishing articles pointing out problems with RP, finally culminating in my brief 2008 Setting Things Straight post “The Shortest, Safest Libertarian Case for IP”.

    ***

    Anyone want me to do the rest?

  • Published: September 4, 2009 12:11 PM

  • Michael A. Clem
  • Whatever one’s position on the radio spectrum, it doesn’t change the arguments against IP presented in the current post. At best, assuming you are right, you can claim hypocrisy or inconsistency, but not a legitimate argument for IP.
  • Published: September 4, 2009 12:35 PM

  • Bill in StL
  • Mr. Kinsella,Your assertion that enforcement of IP requires a state is not precisely correct. Like murder, theft, and failure to pay taxes, all that is required for enforcement is a critical mass of people who will support, or at least accept, an enforcement action.

    Such support is easily imagined for non-controversial crimes against person and property. It is only those actions about which opinions are divided, such as drug prohibition and abortion, where a state is required to enforce laws. It is the public opinion of, not the basic justice or injustice of a potential rule that determines whether it could be enforced in a stateless society.

    So, when you say one cannot enforce IP without the state, you are only correct to the degree that public opinion dismisses it. Should enough people decide IP is valid, a stateless enforcement could be achieved.

    For instance, it is not necessary to maintain a large database of inventions and artistic works along the lines of the patent and copyright offices. The demonstration of prior publication of an artistic work could be accepted as prima facie evidence of a copyright infringement, subject to the traditional common law refinement of details. Similarly, an invention could be presumed original until a plaintiff could demonstrate some theft of a trade secret.

  • Published: September 4, 2009 12:56 PM

  • Stephan KinsellaAuthor Profile Page
  • Silas Barta:

    I notice you left out discussion of rights to radio waves, which makes your criticism of claiming rights in what other people can do with their stuff, kind of ring hollow. Perhaps that’s why you left it out — didn’t want to let people know about the acknowledged holes in your argument.

    Silas, Silas, Silas, Person, John Sharp, Richard Harding:
    As you know I have not dodged this issue; it’s discussed here. But you know, there are plenty of issues that are not discussed in this concise guide to IP, such as punishment theory, causation, oil & gas law, and EM spectrum ownership.

    Bill in StL:

    Your assertion that enforcement of IP requires a state is not precisely correct. Like murder, theft, and failure to pay taxes, all that is required for enforcement is a critical mass of people who will support, or at least accept, an enforcement action.

    Copyright and patent are statutes, like the Americans with Disabilities Act. To have a statute, you need a legislature, which requires a state. You can’t have copyright and patent without a statute.

    True, some crude, primitive form of invention rights could conceivably evolve without a statute, in which case it would merely be unlibertarian, but not legislated.

  • Published: September 4, 2009 1:10 PM

  • mpolzkill
  • Bill in StL,I was just thinking along these lines and I was starting to allude to it on another forum. Isn’t there a pretty widespread and strong distaste for rip-off artists and counterfeiters? (I’m thinking of a fake Rolex, pairs of Jordache jeans) Wouldn’t a truly free market be a far more wary and thus far more informed market? And wouldn’t said market have the strongest market penalties for rip off artists and counterfeiters?

    On the other side of the coin: look at Michael Bolton. He may have made more money than every classic soul performer that he ripped off combined (and didn’t even thank Percy Sledge when he won his Grammy! Oh, that burns me!)

    On the other, other side though, he did provide a new, safely bleached product derived from the old dangerous one, and may well have brought people to Mr. Sledge who never would have heard of him otherwise.

  • Published: September 4, 2009 1:23 PM

  • jc butte
  • Kinsella writes:”True, some crude, primitive form of invention rights could conceivably evolve without a statute, in which case it would merely be unlibertarian, but not legislated.”

    So now you are declaring volutary asssociations in an anarchical society “unlibertarian?” That actually strikes me as pretty funny.

    Have you ever read DeToqueville? If the USPTO were abolished tomorrow, there would be a private firm(s) issuing patents and protecting IP soon afterwards, supported by every manufacturing and trade association. I’m amazed someone who actually practices law in that field couldn’t recognize that eventuality.

  • Published: September 4, 2009 2:59 PM

  • Stephan KinsellaAuthor Profile Page
  • “butte”:

    “True, some crude, primitive form of invention rights could conceivably evolve without a statute, in which case it would merely be unlibertarian, but not legislated.”

    So now you are declaring volutary asssociations in an anarchical society “unlibertarian?”

    No. If this was a private contractual rule enforced only against members of the contractual regime, that’s fine. I meant if it was enforced against third parties who had not consented to it.

    Have you ever read DeToqueville? If the USPTO were abolished tomorrow, there would be a private firm(s) issuing patents and protecting IP soon afterwards, supported by every manufacturing and trade association.

    Hhahaha, nonsense.

    I’m amazed someone who actually practices law in that field couldn’t recognize that eventuality.

    That’s like saying people would find ways to tax and regulate even without the state. Funny.

  • Published: September 4, 2009 3:02 PM

  • jc butte
  • “That’s like saying people would find ways to tax and regulate even without the state.”This sentence reveals the source of your error.

    You obviously have no experience with any manufacturing industry. You no doubt are also ignorant of the fact that many federal regulations are essential and would simply revert to private firms to enforce in their (state agency) absence.

  • Published: September 4, 2009 3:17 PM

  • Russ
  • If a stateless society could not enforce IP laws without effectively becoming a state, how could a stateless society enforce EM spectrum rights (against third parties who had not consented to it) without becoming a state?
  • Published: September 4, 2009 3:21 PM

  • Troy Camplin, Ph.D.
  • Why isn’t an idea property? You make the argument that there are property rights in people, places, and things — but why not ideas? With an idea, one is creating a new thing, and adding to the universe. It takes me a lot of time and effort to come up with an idea. IP ensures that I am compensated for the work I do.Think of it this way. Suppose I agree to work for someone for $5/hr. But when payday comes, he only pays me $2/hr. Doesn’t he rob me of the work I did if he pays me less than half we agreed to?

    Another way to think of it is like this: a patent or copyright is a contract, or a contractual rule. If I invent something, I can just keep it to myself, maybe produce it as a corporate secret. Or, I can offer to release the idea for others to use under the condition that people pay me for that usage. Why is that not a legitimate contract? And isn’t that cheaper for everyone to not have to keep reinventing the wheel because people are afraid they aren’t going to be compensated for the work they do?

    This anti-IP stance seems to me to devalue intellectual work. How can one get compensated for one’s ideas? You are suggesting that ideas are common property and belong to everyone equally. Why, then, come up with anything? As a creative writer, I have a hard enough time making money from my work. Without IP, it would be impossible.

  • Published: September 4, 2009 3:41 PM

  • filc
  • True, some crude, primitive form of invention rights could conceivably evolve without a statute, in which case it would merely be unlibertarian, but not legislated.

    Even if it was un-libertarian a non-government enforced IP is completely feasible in a libertarian society. It just won’t succeed or produce good profit, thats all.

    The difference is, I would speculate, that consumers would naturally tend to purchase goods not covered under encumbering IP licensing agreements. In the long run, any attempt to do this would be at the loss of business, so those firms would naturally over the coarse of time abandon the IP practices or go out of business.

  • Published: September 4, 2009 4:12 PM

  • mpolzkill
  • Dr. Troy,Did you read the whole article?

    “How can one get compensated for one’s ideas?

    Ask someone if they want to give you money for one.

    “You are suggesting that ideas are common property and belong to everyone equally. Why, then, come up with anything?”

    I don’t know exactly. But they sure do. Look at the history of jazz music and how it grew into an incredible and original art form with very little funds all around. I’ll venture to say Charlie Parker came up with more than you ever did without a getting a penny (no insult intended, take Thelonious Monk, or Beethoven if you don’t like Bird).

    “As a creative writer, I have a hard enough time making money from my work. Without IP, it would be impossible.”

    In the early days of jazz there were musicians who thought like this. You’ve probably never heard of them. They were overtaken by the musicians who were open and shared ideas. Their ideas were freely given, but they still made MODEST livings from people just wanting to be in the same room with them (“IP” created ultra wealthy artists but where is it written that artists must make a lot of money? Can any one show that art improved because of their newfound wealth. I have strong opinions that it is the inverse) They were great, maybe only a few in any art really are. Maybe a handful in any art are enough.

    Maybe exactly what you do now WOULD be rendered impossible without “IP”, maybe that would be good for you. Maybe you would move on to another, better plain. Again, no insult intended. I’m an average musician. I’ve worked thousands of hours on musical ideas and received a bit of beer for it. Great musicians get big halls to play, great writers used to read in big halls.

    Just some ideas here, hope I didn’t piss you off.

    PS. I know that the record companies in the first half of the 20th Century had “IP” and that the industry had less problems with copying technology. But, the royalties somehow evaded most jazz musicians. Louis Armstrong died with 100,000 dollars in the bank after a wildly successful 50 year career.

  • Published: September 4, 2009 4:18 PM

  • jc butte
  • filc, thats a valid point but I believe an incorrect one. Sure, pirated products and rogue firms would exist but they would exist on the fringe of society. You would find such products where you currently find fake Rolex watches. Reasons? Trade and merchandizing association rules, branding… At the level of industrial products, it would be virtually impossible for unauthorized products to gain a foothold; the market is too limited.
  • Published: September 4, 2009 4:21 PM

  • filc
  • Err, It’s also worth pointing out that the only way to enforce IP is via a state. IP ideologies in a libertarian society would have to come up with their own technological means to protect their so called IP rights. Presently the state has been ill-equiped to enforce these silly laws so business’s have attempted to prevent “Piracy” on their own. This is being realized in systems known as DRM.The result however ends up at a net loss for the music industry however rather then a gain. First they waste a huge pool of capital to develop these sofisticated tools at preventing so called ‘pircacy’. Secondly, customers naturally move away from such confining systems and platforms. In fact, some of these DRM applications in the past have been labled virus’s. Case in point. DRM is a natural customer deterrent. Therefore the whole system operates at an economic loss. Without the state to inflict fear of repercussion such a system would not sustain itself for a long period of time.
  • Published: September 4, 2009 4:25 PM

  • filc
  • JC Butte

    You would find such products where you currently find fake Rolex watches. Reasons? Trade and merchandizing association rules, branding…

    Thanks for the comment JC. I don’t think comparing software piracy is an apples to apples comparison. The laws of scarcity apply much differently in the digital world.

  • Published: September 4, 2009 4:37 PM

  • jc butte
  • filc, I totally agree with the above. Often anti-IP advocates concentrate on copyright issues rather than patents. However Kinsella assumes a global anti-IP stance and makes the argument that IP protection itself is impossible without a state to grant and enforce it. I disagree. I just limit myself to the areas where I have direct experience. I’ll grant that without the USPTO, the realm of IP maybe become more limited.
  • Published: September 4, 2009 4:56 PM

  • Russ
  • jc butte wrote:”… Often anti-IP advocates concentrate on copyright issues rather than patents. However Kinsella assumes a global anti-IP stance and makes the argument that IP protection itself is impossible without a state to grant and enforce it….”

    I think that SK believes a contractually-based pseudo-IP scheme is compatible with anarchy, but would not be very effective. I also think he believes that a “true” IP scheme that would affect those third parties who had signed no contracts, would not be enforceable without leaving the bounds of anarcho-libertarianism. If my understanding of SK’s position is correct, I actually agree with it.

    I would be interested in how EM spectrum rights could be enforced meaningfully against third parties who have not signed contracts, without also leaving the bounds of anarcho-libertarianism.

  • Published: September 4, 2009 5:26 PM

  • jc butte
  • Russ, your comments above are interesting. They cause me to wonder whether yours and SK’s notion of anarcho-libertarianism would require a state to enforce it, or conversely that it would be possible that an anarcho-libertarian society would violate the principles that it’s theoreticians submit as essential.
  • Published: September 4, 2009 5:32 PM

  • Russ
  • JC,I won’t speak for SK here on the larger issue of anarcho-libertarianism. I only gave my interpretation of his opinion on IP because it seemed clear to me from his posts on this thread.

    My personal view is that I don’t think that anarcho-libertarianism necessarily requires a state, or that it is necessarily self-contradictory. I do believe it might evolve into a state, but that’s another issue.

    BTW, in the interest of full disclosure, I’m not an anarcho-libertarian. I believe EM spectrum rights are justifiable on utilitarian grounds. I believe “true” IP is *in principle* justifiable on utilitarian grounds, but am not convinced that a good enough utilitarian case has been made. I can’t see how either could be enforced without some sort of state.

  • Published: September 4, 2009 6:02 PM

  • Russ
  • JC,On second though, I’m not sure that even regular property rights or contractual rights could be enforced without some sort of state. Take EM spectrum rights as an example. Some people would think that EM spectrum rights are valid, others would think that they violate their property rights with respect to their own transmitters. How could you get everybody to agree to one version of EM spectrum rights without resort to coercion? You couldn’t. If you put two anarcho-libertarians in a room, you will probably get two opinions on the matter; maybe three. *grin* Similarly, how could you get everybody to agree to one version of property or contractual rights? You couldn’t. You’d have to resort to force. So maybe anarcho-libertarianism is self-contradictory.

    Thanks for making me think about this.

  • Published: September 4, 2009 6:30 PM

  • filc
  • Russ, JC,The Anarcho-Capitalist argument is that a free-market private organization could be realized to meet the services of things like protecting private property. A free market court system for dealing with contractual disputes, ect..

    Incidentally Stephan Kinsella has already written about this.

    Also read Chaos Theory by Robert Murphy.

    Enjoy the reading.

  • Published: September 4, 2009 6:38 PM

  • Russ
  • filc,I’ve read “Chaos Theory”, and it depends wholly on a contractual basis for society. This depends on a shared notion of what constitutes contractual rights. But how do you make sure that everybody works from a shared notion of contractual rights? If you don’t resort to force, the system breaks down. If you do resort to force, then you have a sort of state.
  • Published: September 4, 2009 6:43 PM

  • filc
  • Force isn’t necessary. In a free society business’s that choose to participate in more shadey types of agreements will naturally suffer since the consumer will responsibly decide not to associate with those providers.Consumers will then naturally be drawn to responsible firms and business’s they can trust. The market, through innovation, will also create technological means of protecting the consumer. Consider the now general retail standard, 30-day return policy agreements you see all over the place. This is a product of the free market, no government needed.

    You will also see “Contracts” as we understand them simplify in most cases. As stated before in this thread our beleif is that typical licensing laws would dwindle as they wuold not be desireable in a true free-trade environment. What that means is if you purchase something from you, you own it. You wouldn’t own a license to use it, you would simply own it.

    This makes fraud, theft, extortion, and other criminal acts extremely transparent or more black and white. Unlike our society where Fraud, theft, and extortion are a hazy gray area and in some cases not always illegal. This would never be the case in an an-cap society. The point is the market would regulate itself.

    If a man chooses to overtly be evil society will naturally tend to move away from doing business with him for fear of the ‘guilty by association’. Business’s incentive then becomes being honest and offering good business. Business’s equally have the right to discriminate against who they do business with. They may decide to revoke doing business with the town drunk for fear of bad press. This offers incentive to all individuals.

    I couldn’t honestly begin to explain everything here and there are others who could do a much better job then I. What I would recommend for you, if your interested, is ask your very question above on the mises.org forums. Just be sincere and you will get sincere responses from people far more intelligent on the matter then I. Thanks Russ!

  • Published: September 4, 2009 6:58 PM

  • Russ
  • filc,You’re assuming that I am a newbie to libertarianism and anarcho-capitalism. I’ve been interested in them for quite some time. I read Rothbard etc. in the mid to late ’90s, and for a time considered myself an anarcho-capitalist. After 9/11 I started to reconsider my position. I just have sincere differences of opinion regarding how well anarcho-capitalism would work. But thanks for your advice, and for not ridiculing me for my differences of opinion. There are others here that will take care of that! *grin*
  • Published: September 4, 2009 7:17 PM

  • newson
  • russ and silas barta show the risk to the anti-ip position of acknowledging electromagnetic spectrum rights. i think this needs more fleshing out by kinsella and tecnical experts in the field. i think this is work-in-progress.
  • Published: September 4, 2009 7:52 PM

  • filc
  • JC,If anything 9-11 should have you running from state-run protection. How can the worlds supposed most powerful military conveniently be running test operatives the day of 9-11? Where was or national defense that day? Oh thats right halfway across the country doing training ops! 🙂 Some defense. And instead of holding those officials accountable for pretty much disposing of our entire national defense we went to war. If anything 9-11 was further proves that our country doesn’t even have the managerial ability to protect us.

    Also we’ve been foreign occupying those middle-eastern countries for a decade. It becomes a chicken-egg argument, which came first? There those who believe that 9-11 was nothing more then blowback from us already illegally occupying other sovereign nations.

    I get your point though

  • Published: September 4, 2009 7:58 PM

  • scott t
  • “I was just thinking along these lines and I was starting to allude to it on another forum. Isn’t there a pretty widespread and strong distaste for rip-off artists and counterfeiters?”i dont know….i see something on tv called diamond-ique that is supposed to look like diamonds…and it apparently sells. numerous places serve ‘the taco’ are they ripping each other off?
  • Published: September 4, 2009 8:12 PM

  • jc butte
  • filc, the connection between IP and 9/11 is lost on me, lol.
  • Published: September 4, 2009 8:54 PM

  • Bob Alexander
  • I don’t quite follow this argument. Let’s say I come across some land and I’m the first human there. I start farming it, so now I have a claim to it. When someone else comes to use it, I basically say “I was here first. See all the labor I’ve invested.” And so the land, which was created with the planet, becomes mine. Everyone else has to find some other land. If they want the food I grow, I might consider selling them some, but they can’t just take it.Alternatively, I sit and think and come up with an idea. When someone else comes to use it, why can’t I say “I thought of it first. See all the thinking and experimenting and building I did”? Not only have I invested labor, but unlike the land that was created with the planet, I created something that didn’t exist before. Shouldn’t my claim be even stronger? Shouldn’t I be able to demand that everyone else come up with different ideas, just as I demand that use different land? If they want to use my idea, I might consider selling it to them, but they can’t just take it.

    Rand tried to make an ironclad proof of rights by asserting that an individual’s survival is good. But the reality is that her premise was not a fact; it was a value judgment. And the people she called anti-life would dispute it (e.g. saying that society’s well being is more important than the individual’s survival).

    If something as basic as that is a value judgment, then ownership of land vs. ownership of ideas is also a value judgment. And value judgments, alas, end up being argued on utilitarian grounds.

    I know libertarians (and I consider myself one) and objectivists hate to hear things like that. But all logical arguments start with a premise – an assumption. And in human affairs, the premises are always subject to debate.

  • Published: September 4, 2009 9:36 PM

  • newson
  • bob alexander says:
    “Alternatively, I sit and think and come up with an idea.”– a completely original idea, which owes absolutely nothing to the ocean of ideas in which we swim? does that sound likely?
  • Published: September 5, 2009 12:25 AM

  • Bala
  • SK,Thanks a ton for this post. This definitely is a better way of responding to my comment and request on your earlier blog (“Microsoft now wants a galactic IP”). This definitely makes the Libertarian position very clear to me. However, there is a very basic point I have to make. I will be brief now and will soon respond in detail. (The reason is that I live in India and it is now 2:30 pm. I am at work and will be able to post any detailed message only sometime tomorrow.)

    The simple point is that a theory is only as valid as its axioms. Your axiom, which you have made adequately clear and referenced Rothbard for, is that

    “All rights are property rights”.

    This is what I think is completely wrong. Yes. Like you said in an earlier response that Mises was wrong, I am now, with no loss of the respect I have for Murray Rothbard and his writings and ideas on Economics, saying that Rothbard was wrong on this one.

    Hence, you are too.

    More in my next post. Thanks once again for putting up this paper.

  • Published: September 5, 2009 4:04 AM

  • Bala
  • Sorry about the repetition. The first time I tried posting, I got an “error” message and hence, tried posting a second time and then found 2 occurences of the same comment.
  • Published: September 5, 2009 4:08 AM

  • Peter
  • You would find such products where you currently find fake Rolex watchesCurrently, at least where I live, people selling fake Rolex watches can be prosecuted and the watches destroyed. This is because of the government. For this reason, I wouldn’t know where to find fake Rolexes (I got mine at a street market in Kuala Lumpur, 25 years ago, for about $10). Get rid of the regulation, and that would change — I’d bet you’d find fake Rolexes wherever you went.
  • Published: September 5, 2009 6:08 AM

  • Shay
  • Excellent summarizing article. Sorry for the length of the quotes below.Troy Camplin wrote, “[…] there are property rights in people, places, and things — but why not ideas? With an idea, one is creating a new thing, and adding to the universe.”

    IP causes this “addition” to take property rights away from everyone.

    “IP ensures that I am compensated for the work I do. […] Suppose I agree to work for someone for $5/hr. But when payday comes, he only pays me $2/hr. Doesn’t he rob me of the work I did if he pays me less than half we agreed to?”

    Yes, and if there was an agreement (contract), you can sue for full payment. Regarding IP, your example applies regardless of the work you do for that person. You could be digging ditches, coming up with ideas, or whatever you contracted to do. If he doesn’t pay, you have a case against him. No IP laws are necessary for this arrangement.

    “If I invent something, I can just keep it to myself, maybe produce it as a corporate secret. Or, I can offer to release the idea for others to use under the condition that people pay me for that usage. Why is that not a legitimate contract?”

    Because it would have to bind all property owners now and forever, which is contrary to how contracts work, that is only binding those who agree to it.

    “And isn’t that cheaper for everyone to not have to keep reinventing the wheel because people are afraid they aren’t going to be compensated for the work they do?”

    The solution to being unable to find a viable way to make money isn’t necessarily state intervention to force people to pay you money; you might need to accept that your chosen way of making money isn’t going to work.

    “This anti-IP stance seems to me to devalue intellectual work.”

    The way I see it, ideas are valuable, due to the laws of nature making them virtually costless to share. But since they are so easy to share, they don’t naturally lend themselves to being sold. IP laws impose artifical restrictions on sharing, thus making it easier to use the standard “invest in product, sell product” model to find their creation. Thus, IP laws decrease the real value of ideas by making use of some of their most valuable aspects illegal.

    “Why, then, come up with anything? As a creative writer, I have a hard enough time making money from my work. Without IP, it would be impossible.”

    Explain the existence of works created before copyright.

    Bob Alexander wrote, “Let’s say I come across some land and I’m the first human there. I start farming it, so now I have a claim to it. When someone else comes to use it, I basically say “I was here first. See all the labor I’ve invested.” And so the land, which was created with the planet, becomes mine. Everyone else has to find some other land. If they want the food I grow, I might consider selling them some, but they can’t just take it.

    Alternatively, I sit and think and come up with an idea. When someone else comes to use it, why can’t I say “I thought of it first. See all the thinking and experimenting and building I did”? Not only have I invested labor, but unlike the land that was created with the planet, I created something that didn’t exist before. Shouldn’t my claim be even stronger?” Shouldn’t I be able to demand that everyone else come up with different ideas, just as I demand that use different land? If they want to use my idea, I might consider selling it to them, but they can’t just take it.

    In your land example, if they took your crops, you’d have fewer crops. If someone used your idea, you’d still have the idea. What you want is to be able to come up with an idea, and then tell everyone in the universe that they cannot use their property to implement that idea.

  • Published: September 5, 2009 8:15 AM

  • Troy Camplin, Ph.D.
  • I did read the entire article, and I’m not convinced. People do pay you for your ideas — if you can prove those ideas. A copyright is given once you prove your ideas work. The copyright makes it accessible to the public. Otherwise, there is going to be greater temptation to keep things corporate secrets. The bottom line is that those against IP are somehow arguing that intellectual work doesn’t create intellectual property, which itself isn’t valid. As someone whose work is almost entirely intellectual, I couldn’t disagree more.Now, the fact that I’m not compensated monetarily doesn’t mean that I don’t produce. Quite the contrary. I’ve had poems and short stories published without being paid — with one exception. Certainly, without IP, I would still be paid (or not) for original published work. But another problem would definitely come about.

    One of the things copyright does is protect writers, musicians, etc. from the predatory actions of others. That may be corporations who want to use a song without my permission to make money from advertising (which makes me think those against IP aren’t so much for the free market as for corporate interests — which is a very different thing). That may be other authors who want to take my work and pass it off as their own. In academia, we call that plagiarism. IP is a legal protection against plagiarism. At least, for those still living.

    One of the complaints I read against IP is regarding renewal. And on that, I agree. If the author is no longer living, the originator of the idea can no longer be compensated. The person’s family didn’t come up with the idea, so why should they receive compensation? I could be convinced of that argument. But not while the author of the idea is alive.

    Overall, I just don’t think China is a good example of how we ought to run things when it comes to IP.

  • Published: September 5, 2009 10:37 AM

  • gene
  • A good article and I agree that IP “rights” are a function of the State and not any “natural” or justified occurence.what I didn’t agree with is the ability of “contractual” monopolies to function in a free market.

    one can contract the ability not to “copy” a purchased product and also prohibit any “giving” or “reselling” of the product without a further restriction on the new owner. actual theft is illegal.

    in this way, although cumbersome and with transaction cost, monopoly is insured. it has a market cost and would have to compete against non restricted product. this is in contrast to the subsidized “idea” profit and “illicit” control of other’s property that is the norm now.

    it is a small disagreement and the article never states that such contracts should be made “illegal”, so there is no real debate, just conjecture.

  • Published: September 5, 2009 10:40 AM

  • Bob Alexander
  • Shay writes:
    “In your land example, if they took your crops, you’d have fewer crops. If someone used your idea, you’d still have the idea. What you want is to be able to come up with an idea, and then tell everyone in the universe that they cannot use their property to implement that idea.”In my land example, I also restrict other peoples’ rights. I’ve laid claim to an area, and they’re no longer allowed to walk onto it without my permission. Any property right imposes a restriction on others. Leftists frequently point this out as an argument that property is contrary to freedom.

    Similarly, an IP right would impose a restriction on others. The original article says this is invalid because it restricts another person’s freedom – essentially the same argument the leftists make.

    Libertarians accept that one person’s rights limit another actions – and that’s OK. My property rights restrict what you can do. A criminal’s actions can result in him losing his freedom. The question of whether to add IP to the list of things that can restrict freedom is a value judgment, not an objective principle.

  • Published: September 5, 2009 11:17 AM

  • Russ
  • Shay wrote:”…What you want is to be able to come up with an idea, and then tell everyone in the universe that they cannot use their property to implement that idea.”

    EM spectrum rights work the same way; an “owner” of EM spectrum rights wants to tell everyone in the universe that they cannot use their property (their transmitters) on a certain frequency, if it interferes with the “owner’s” broadcasts.

    And as Bob Alexander has pointed out, property rights work the same way, also; an “owner” of land want to tell everyone in the universe that they cannot use their property (their cars, for instance) to drive through the “owner’s” property.

    All notions of property rights involve limitations on what others can do with their property. If one form of property rights is invalid in principle for this reason, then they all are. Of course, you could admit that they are all valid in principle, say on a utilitarian basis, but argue that some forms of property (IP, for instance) would not result in utilitarian gains.

  • Published: September 5, 2009 12:03 PM

  • mpolzkill
  • Bala REALLY wants to know, and writes (where I think hardly anyone saw his question):”I wonder what would be the incentive for anyone at all to come up with good ideas if almost anyone could use a commercially viable idea that they produced (please note that I do not say created). I am somehow worried about the situation where no one at all is interested in investing a lifetime (or any portion of it) developing ideas that will inevitably be hijacked by someone else. I therefore have the sneaky feeling that Libertarianism is a one-way street to the Dark Ages. In simpler terms, I am saying that if you create an environment in which ideas cannot be given the status of property rights, you will have a world in which no one will create ideas or if they do create, share them. Is this not what the Dark Aages were all about? Would you care to prove me wrong?”

    I’m sure someone else here can give a powerful response; but will they PROVE that not respecting the concept of “IP” will lead to a “Dark Age”? Passing over the novel suggestion that the supposed “Dark Ages” were the result of insufficient enforcement of “IP” “rights”, I don’t know how such a thing can be proved.

    My response goes for Troy Camplin, Ph.D, as well. Particularly his, “how we ought to run things”:

    I plead with you both (and suggest to all who haven’t) to read this (if you two have read it, I hope you do so again):

    http://www.constitution.org/hs/ignore_state.htm

    Spenser brilliantly lays out “that a legislature is not “our God upon earth,” though, by the authority they [the politically superstitions] ascribe to it, and the things they expect from it, they would seem to think it is.” The State is a foul tool, and it will never be your tool but in the smallest way possible, and only if you are of use to the State. Hence, you ask them to enforce “IP” at an unknowable price. It is my OPINION (based on my understanding of the history of the world and the successful predictions of economists like Mises) that this is a bad idea, as it is YOUR opinion that it’s a necessary one. How shall this difference of opinion be resolved? Yes, if you somehow miss the powerful meaning of Spenser’s essay, you will appeal to the gun.

    As an aside: It is also my opinion that anyone who could ever believe that no one would create anything without IP, has never really created anything too earth-shattering. Creative people MUST create, I’d say they couldn’t stop it short of suicide. I only speak as a musician and from my knowledge of the great ones. I’m imagining a young Beethoven on our forum here, trying to get some assurances that his “IP” is safely protected by the State before embarking on his profound life.

  • Published: September 5, 2009 12:07 PM

  • Ned Netterville
  • Great article invoking a great discussion. I concur with Mr. Kinsella’s conclusion on the basis of his final argument alone. (“IP requires both a legislature and a state. For libertarians who reject the legitimacy of the state or legislated law, this is yet another defect of IP.”) And I think mposkill’s comments to Dr.Troy are most germane. (“Maybe exactly what you do now WOULD be rendered impossible without “IP”, maybe that would be good for you. Maybe you would move on to another, better plain. Again, no insult intended.”No one knows exactly what the world without states would be like, but many smart libertarians (viz., anarchists/voluntaryists) like Rothbard have logically deduced that we would all be better off without ’em. The essential problem with states is that their nature involves the initiation of force without provocation, if for no other reason than to collect the taxes upon which states depend.

    As I see it, there are two big barrier on the way to heaven (viz., that place without any states), which may actually be only one problem observed from two different angles. One is fear of the unknown and the other man’s (innate?) desire for security. For God-fearing people, Frederic Bastiat’s concluding advice in his magnificent essay, THE LAW, may contain the answer to overcoming these hurdles: “Let us cast out all artificial systems and give freedom a chance–freedom which is an act of faith in God and in His handiwork.” Libertarian atheists may vanquish the bogeyman of the state as a necessary evil by resort to common sense: the initiation of violence is certain to produce more violence and a state of unending conflict. Impirically, that is what we’ve always experienced under the sway of human governments. (For a simple, observable, repeatable, practical experiment available to doubters that should establish the truth of this common-sense conclusion, walk into any crowded bar and initiate violence by punching a patron in the nose, or, more in tune with the actions of a state, by grabbing the cash off the bar that is in front of some patrons. You mayl become a believer)

  • Published: September 5, 2009 12:20 PM

  • Russ
  • newson wrote:”russ and silas barta show the risk to the anti-ip position of acknowledging electromagnetic spectrum rights. i think this needs more fleshing out by kinsella and tecnical experts in the field. i think this is work-in-progress.”

    Thank you for saying this. This makes me feel that I have achieved a small victory, at least, in my self-appointed role as anti-ancap gadfly. *grin*

  • Published: September 5, 2009 12:25 PM

  • mpolzkill
  • I wanted to slightly amend and add to one passage of my sermon:It is my OPINION (based on my understanding of the history of the world, moral philosophy and the successful predictions of economists like Mises) that this is a bad idea, as it is YOUR opinion that it’s a necessary one. How shall this difference of opinion be resolved? Yes, if you don’t change your opinion, and I copy an idea of yours, if you believe you have been financially hurt, you will appeal to the gun. You will appeal to the gun when I have not assaulted you, taken anything that was truly in your possession or broken contract with you.
  • Published: September 5, 2009 12:32 PM

  • mpolzkill
  • Russ, tongue-in-cheek, I realize, but still on the mark:”my self-appointed role as anti-ancap gadfly”

    Yet another treasure we have to thank 9/11* for.

    (A very minor “treasure”, not up there with the Rape of Baghdad or anything. I know that I, as a self-appointed anti-Russ gadfly, must always carefully qualify the level and effects of Russ’s State advocacy)

    * The tragic events resulting on 09/11/2001 from the State’s self-appointed, exclusive and wildly incompetent protection of us.

  • Published: September 5, 2009 1:36 PM

  • mpolzkill
  • Ned Netterville,I very much appreciate your small kudos and your thoughts on this forum (Bastiat is definitely the right call here). You have caused me a bit of embarrassment however. I had hoped no one would notice my “move on to another, better plain”. And here you’ve unwittingly picked it out my error and reprinted it. That should have read, “better PLANE”. I’m over-sensitive, I know. Consider me the Anton Bruckner of blogging.
  • Published: September 5, 2009 1:48 PM

  • mpolzkill
  • * overly sensitiveHa ha, I didn’t go to finishing school and a thousand taunts forever ring in my mind.

    And I’m sorry to all for all the posts, and the unsolicited personal history, and amateur psychology, and generally going off topic. I’m done, even if I find another my gauchery. (I’m coining that, “gauchery”)

    Great forum, everybody.

  • Published: September 5, 2009 2:09 PM

  • filc
  • Sorry JC. I got confused. Apparently I should have responded to Russ.
  • Published: September 5, 2009 3:00 PM

  • Russ
  • filc,I’d love to respond to your 9/11 remarks, but JC is right; that would be far off topic. So why don’t we save such thoughts until a more opportune moment presents itself?
  • Published: September 5, 2009 3:19 PM

  • Mark Jones
  • This turned out to be quite long and is broken up into a few areas of inquiry. I think it worthwhile.—-
    Those who argue that patent or copyright rights are separate from property rights have not a leg to stand on.

    Disagree? Then, please, inform me of a definition of copyright and patent rights that make no mention of property rights, that are not defined by a description of property rights supposedly granted to the copyright or patent holder.

    ——

    Secondly, to those claiming to own ideas and who say that others should not be able to use the ideas of their “creation,” I ask how you expect people to know your idea and not use it.

    That is, perhaps, unclear. If you claim complete property rights over an idea, such that any use is theft, how can you even inform others of your claim without causing them to use your idea?

    ——–

    Thirdly, if you wish to declare a system of “intellectual property,” it is your onus to prove, first, that what you describe can be properly called property. You can not expect others to honor property rights where no property exists.

    ———

    Fourthly, while you may currently sustain yourself from profits made due to the existence of the fallacy of intellectual property, this does not support the continuation of said fallacy. That you live only by theft or unprovoked coercion at this time does not justify the perpetuation of a system of theft and unprovoked coercion.

    If what you do is not profitable without a bully acting on your behalf, then you must live by other means. It may be difficult for you, but that is just the way of things. I am both sorry for the state of mind which allows you to think otherwise in these matters and provoked to anger by your attempted usurpations of my property rights.

    ———

    As for how one might profit from ideas, I have a few suggestions that derive from the current state of affairs. All jobs require creativity to varying degrees. Consultants, lawyers, mechanics, and engineers all have jobs in which ideas and creativity are in great demand. Of course, these are all very “physical.” Less physical are the jobs of journalists, graphic artists, editors, copywriters, and advertisers.

    Now, perhaps not all jobs or work that is primarily “creative” will continue to be profitable. Some claim this would be a terrible occurrence. “What would happen to the artist? The musician!?” Current developments can provide a partial answer and an indication of a trend.

    As you surely know, with the advent of inexpensive personal computing, the Internet, and personal music devices, outlawed property rights due to copyrights with relation to music have been flagrantly ignored. Music is now widely shared for little expense and for little recompense, in some cases, to the writers and performers. What has happened to the industry? What changes have occurred? How do those artists who find little monetary profit deal with these circumstances?

    Despite the hubbub, many artists are very grateful for this state of affairs. Where 20 years ago their music would have had an exceedingly small effect without some providential occurrence, today their music is discovered, heard, and appreciated globally. Despite this, some benefit little monetarily and, yet, continue to produce music. Are these people mad? Perhaps, but they are still rational actors acting in their own benefit. To them, it brings them happiness that their music is so enjoyed.

    Yet others manage to reap appreciable sums from their efforts while imposing no or comparatively lax copyright restrictions. How do they do this? The particular method varies, but it can be said that creative marketing and the use of the fame to sell related services and products describes many such operations.

    Now, a similar approach can be used in any other creative industry. I know a fellow who invented numerous time, effort, and cost saving processes in the machining and mold and tool making industry. Many of these ideas were developed while working for others and freely shared. These ideas can be said to have allowed him to receive excellent recommendations to find very gainful employment. This then allowed him to save sufficient funds to go into business for himself and use his ideas and those he continued to create to great gain.

    If you wish to gainfully employ your creativity, you must determine the best way to sell your creativity. It is often not enough to have a good idea; its execution will determine one’s gain.

  • Published: September 5, 2009 4:55 PM

  • K Ackermann
  • Two examples that I see playing out right now speak poorly for the utility of IP ownership.The first one is the systematic “trolling” for IP by organizations that intend to use legal mechanisms to maximize financial gain by licensing IP, and by sueing for damages in cases of infringment. They may have the right to do so, but let’s look at what it does:

    They contribute nothing to the actual development of R&D;, and in all likelihood, tie up some amount of funding that would otherwise find it’s way to direct R&D; investment. Rather than feed the artist, they starve the artist and effectively invest in what can only be an inferior product, and probably delay the introduction of it to boot.

    On the practical side, one recurring complaint is that the IP ownership is often obfuscated, with the net result being that companies lose out on the normal process of writing contracts, and negotiating terms, as the terms wind up being dictated in the course of a settlement. They neither create wealth, nor promote the creation of wealth.

    The other example is the tax imposed by branding. Branding has great utility for the owner, but in most cases, it is a psychological phenomena. There is not practical value in a label to a consumer. For most products, I don’t know how to argue this, but for medicine, it is an undue taxation.

    Drugs are designed to fit very specific sites in biological organisms. In many cases, there are no other options, because the shape of the receptors cannot be changed. Drug companies effectively claiming rights to platonic Circles, and Squares, as
    their property.

    I find it impossible to completely divorce the issue from morality too. A charitable agent is actually prohibited from distributing life-saving, or life-enhancing platonic shapes that have no viable alternatives. Medicine is the one product people can be forced to consume, yet it is treated like any other product such as a car, even though you can pick from a wide variety of cars, and you will not die if you don’t purchase one.

    I don’t know the right way to frame this axiomatically.

    I do know that requests for me to rationalize the issue on free market principles over the years has so far left me unconvinced that medicine is not different. I would have to lie to myself that a company’s right to patent a platonic shape that is important to people’s very existance trumps all. I don’t feel that way about cars, or anything else except maybe food, air, and water. Food is readily available in a variety of flavors, and air and water are pervasive for the time being. We will have to burn that bridge when we get to it.

  • Published: September 6, 2009 12:07 AM

  • newson
  • to k ackerman:your argument that somehow medicine is different to other essentials like food, etc ignores why food is so abundant and cheap in the developed world – it’s an area where the government does not exercise total control.

    the non-ip pharmaceutical model would be different, to be sure; probably many more smaller, incremental developments rather than large-ticket projects. pharmaceutical companies may pool resources to fund the clinical trials (the largest cost item).

    abolishing the fda would lower barriers to entry, and smaller firms could also compete more effectively. consumers would have to rely on trusted names, and review services would spring up to fill the information void.

  • Published: September 6, 2009 4:36 AM

  • K Ackermann
  • @newson, hmmm, I don’t know about the gov’t and food. They still have their hands in too much of it, and in the wrong areas.I’m not against food safety inspectors. I am against subsidizing so much junk we put in our bodies.

    A girl that I date has a little niece, and they stayed the weekend a while ago. I was up late working, and I figured I would have a piece of the carrot cake I bought. It was about 1:00am, and I tried opening the plastic shell to get at my cake, and I woke everybody up, and one guest was very upset, and the other one wanted carrot cake.

    Instead of getting work done, now I’m babysitting a 3-year old who I watched become hyper after eating the cake. I only ate a couple of bites because I swear I could taste the chemicals in it.

    The next day, I went shopping to cook a big Sunday dinner for them, and I bought a cake mix and pudding, and yes, a can of frosting, and instead of that little girl sitting in front of a TV, we kept busy for an hour and a half making a superior product that does not cause sleep loss, polute, and has ingredients that the human body knows how to digest. I didn’t have to clean her, so it was a win all around.

  • Published: September 6, 2009 5:12 AM

  • Murray Rothbard
  • “Now the man who seizes another’s property is living in basic contradiction to his own nature as a man. For we have seen that man can only live and prosper by his own production and exchange of products. The aggressor, on the other hand, is not a producer at all but a predator; he lives parasitically off the labor and product of others. Hence, instead of living in accordance with the nature of man, the aggressor is a parasite who feeds unilaterally by exploiting the labor and energy of other men. Here is clearly a complete violation of any kind of universal ethic, for man clearly cannot live as a parasite; parasites must have non-parasites, producers, to feed upon. The parasite not only fails to add to the social total of goods and services, he depends completely on the production of the host body. And yet, any increase in coercive parasitism decreases ipso facto the quantity and the output of the producers, until finally, if the producers die out, the parasites will quickly follow suit.Thus, parasitism cannot be a universal ethic, and, in fact, the growth of parasitism attacks and diminishes the production by which both host and parasite survive. Coercive exploitation or parasitism injure the processes of production for everyone in the society. Any way that it may be considered, parasitic predation and robbery violate not only the nature of the victim whose self and product are violated, but also the nature of the aggressor himself, who abandons the natural way of production—of using his mind to transform nature and exchange with other producers—for the way of parasitic expropriation of the work and product of others. In the deepest sense, the aggressor injures himself as well as his unfortunate victim. This is fully as true for the complex modern society as it is for Crusoe and Friday on their island.
  • Published: September 6, 2009 5:41 AM

  • Gil
  • “This anti-IP stance seems to me to devalue intellectual work.” – Troy Camplin, Ph.D.”The way I see it, ideas are valuable, due to the laws of nature making them virtually costless to share. But since they are so easy to share, they don’t naturally lend themselves to being sold.” – Shay.

    Or should that be “intellectual work has been and still is artificially overvalued by threat of force”? People should be singing songs around campfires for the fun of it, it shouldn’t be a serious multi-billion dollar industry.

    “So, when you say one cannot enforce IP without the state, you are only correct to the degree that public opinion dismisses it. Should enough people decide IP is valid, a stateless enforcement could be achieved.” – Bill in StL.

    If I.P. is not real property and can be only be enforced through threat of violence then there can be no private equivalent as they are engaging in violence (or the threat thereof) too.

    Of course, it is interesting the way real property doesn’t need everyone to consent to it for it be held sacred in perpetuity.

  • Published: September 6, 2009 6:56 AM

  • thesixthsense
  • the channeled ghost of murray rothbard apologizes and says he screwed up on copyright. we are all dwarves standing on the shoulders of giants. he says the only parasites draw a public wage.
  • Published: September 6, 2009 7:08 AM

  • antiip
  • Let us do a basic thought experiment:Imagine a world full of tiny objects called atoms, which are indivisible. These atoms can be stuck together to make molecules. There exist many such molecules which on a greater scale are found as certain structures/objects.

    Imagine three inhabitants in this world: A, B, and C.
    Those inhabitants are themselves a structure consisting of molecules, which whatever the circumstances are produce in these inhabitants some sort of mind.

    Therefore A, B and C are considered to be some sort of intelligent acting agents.

    Questions arise: Who is to determine what A, B and C are allowed to do, that is how the can use their body consisting of these atoms?

    Questions of (natural) right arise.

    Who is allowed to use the objects of this world (that is the atoms, which are found in the molecules, which are found in the objects)?
    What is propertA, B and C

    Questions concerning natural right about self-ownership and ownership arise.

    The result:
    Property is the right to exclude others from using the owned objects, that is the molecules in these objects, that is the atoms. The right to exclude certain interaction with these atoms.

    So far so good.

    But what about IP?

    IP would be the right to PATTERNS of these object, the right to certain constellations of the atoms. The right to information.

    Could there be a super-right to patterns, that is higher that the right to the atoms themselves?

    Those rights (pattern-rights) would subsequently diminish the right to the object.

    Imagine A was the owner of object X and himself.

    Imagine B invented something with another object Y that was of the same kind as object X.

    Does the (later) invention of B give him the right to certain forms of use of object X? Does B have a right to say in which kind of patterns X could be used and in which not?

    What if A wants to sell object X to C? Does B have any right to forbid that?

    You see: Rights to patterns LOGICALLY would be superior to rights to atoms, molecules and objects..

  • Published: September 6, 2009 2:26 PM

  • antip
  • The case of EM spectrum rights:Imagine there is a large patch of unowned land. On the east of it there is land owned by person A.

    Person A uses very powerful light signals (high light density) and smoke signals from the second floor of his house to inform some persons in the west of this unowned patch of land with news.

    Imagine you homestead this patch of land.

    Does A have a right to transmit his EM signals (YES light is EM!) through your patch of land? Does he have the right to tell you not to build ANYTHING obstructing the path of his light on your property?

    Or do you have the right to build on your patch of land a house, even if that is in the way of the light stream?
    Do you have the right to tell A to stop using his very powerful light signals in the night, because he is harming your property (plants don’t grow too well if there isn’t a long enough break of light because they can’t rest)?

    Other example:

    Your neighbor B uses a powerful sender that emits certain EM waves, that do not harm anything you own at the moment. Sometime later you buy a certain machine that doesn’t work, because of this EM waves. On the long run your machine will be destroyed by those EM waves If in your opinion your neighbor B had the right to emit those EM waves, than it is your problem that your machine is destroyed. Is that your opinion?

    The problem of servitudes arise.
    http://en.wikipedia.org/wiki/Servitude_in_civil_law

  • Published: September 6, 2009 2:39 PM

  • Troy Camplin, Ph.D.
  • It’s not a matter of sitting around making sure my work is protected before I create. I create. Period. That being the case, why should I be forced to give everything away willy-nilly. I’m sorry, but that’s the same logic the socialists have with material production. It’s the duty of the capitalists to give away their intellectual labor that they put in that makes it possible to produce anything at all. That is the attitude of the Marxists and other socialists — something Hayek observed to be the case. It is precisely intellectual production that must be protected, as that is the soul of the catallaxy. In the end, the creative worker ends up giving the vast majority of his work away anyway. Why go out of our way to make it even more difficult to receive payment for that work? Here is exactly the wrong attitude:”People should be singing songs around campfires for the fun of it, it shouldn’t be a serious multi-billion dollar industry.”

    What a load of nonsense! Marxist to the core is what that attitude is. The fact that people can make billions from music and songs doesn’t in any way prevent people from atavistically sitting around a campfire and singing those same songs. In fact, there has been a proliferation of songs because of the music industry. In the end, though, if you don’t like IP-produced songs, stop buying music and only get the stuff made freely available online. There’s a pretty good reason why you and everyone else against IP likely don’t or won’t.

    As for guns, why is it okay to threaten people for stealing physical property, but not for stealing my ideas, which may in fact provide me with a real chance at making a living. It may be right that IP isn’t good law now, but that doesn’t mean we throw out the baby with the bath water. We need good IP laws, that allow the various artistic spontaneous orders to be maximally productive and creative. Part of that means people who want their works protected can get them protected.

    Intellectual work is not overvalued. Intellectual work is the only source of anything we have at all, is the source of all creativity and growth in all the spontaneous orders. If anything, we undervalue it. For the Marxist and socialists, it’s barely valued — or understood to have any value — at all.

  • Published: September 6, 2009 9:01 PM

  • newson
  • troy, because your ideas aren’t that original. what you think has also been thought and expressed by millions of others in the course of history.
  • Published: September 6, 2009 10:30 PM

  • Michael A. Clem
  • Troy, you are assuming that IP protection would increase creativity and creative works. This is the first argument and perhaps most important argument Stephan raised. Show that IP protection is truly beneficial, it’s not self-evident.
    Also, If intellectual “property” was truly property, then why shouldn’t it be passed down in perpetuity to the creator’s inheritors? Because it is not truly property. Can you imagine someone homesteading land, and when that person dies, it becomes common or public land instead of going to his heirs?
  • Published: September 7, 2009 9:25 AM

  • Bala
  • SK,Like I promised, I am responding to the specific point I objected to. I think your entire theory is flawed because at the root lies the assumption that “all rights are property rights”. Even more monstrous is to go on and talk of “scarce resources” and treat people and their bodies as scarce resources. Sounds very much like an economist trying to apply the tools of economics to politics.

    To begin with, I need to mention that while you may have read Ayn Rand, I think you don’t have a clue about the meaning and implications of what she said. Further, your entire understanding is from the perspective of a lawyer, not that of a political philosopher (though you seem to like to pretend like one). Hence the bundle of misunderstandings and misrepresentations.

    What Rand proposed, above all, was a MORAL FRAMEWORK.

    A moral framework is not a guide for designing a legal system (though it should be if the legal system is to make sense). It is a guide for individual action.

    Morals are a code of values. A moral framework is a code that helps a man assign a value to every option he ever faces and thus enables him to make choices from available options. Value is subjective and relative. Nothing has intrinsic value. Value is that benefit which something brings to me. It is the enhancement of my life that comes with it. The ultimate value for man is his life. Everything else is valued relative to it. Without life, no other value has any meaning.

    Life itself is a sequence of self-generated self-sustaining actions. While other animals engage in actions based on instinct, man acts based on rational choices worked out by his mind, which in turn works on the basis of the concepts he has gathered till-date and his (individual) assessment of reality. To sustain life, man needs to act. To act, he needs to what will enhance the conditions of his life and what will worsen them and thus make it tougher for him to sustain his life. This is where a Moral Framework comes in. Because man lacks the instinct that other animals have, he depends completely on his moral framework to guide his actions.

    Man is also apart from other animals in the range of concepts he can form. “Range” here refers to spatial as well as temporal. Man, unlike other animals, can form concepts of time. In particular, he can form concepts of time way beyond anything he may himself experience in the short-term. He can talk of a life-time and beyond. He can conceptualise aeons past and future. When man acts, he acts not just for the range of the moment (which too he does) but also for the immediate and not so immediate future.

    Man is different from other animals in another basic aspect – he lives by producing. He could live by hunting and gathering, but his rational mind led him into the task of production which greatly enhances his chances of survival and the period and quality of such survival. Modern man produces not just what he needs but also what he estimates other people need and to obtain which, they are prepared to give in exchange other products they themselves produce and which the man himself has need for. He produces not just for his own needs of today but for the needs of the distant future for himself and for others who are ready to trade with him.

    Man’s only guide in all this is his mind. Man lives by his mind and not by his physical labour. Physical labour got him his first berries and deer to eat. The working of his mind brought him the tools he produced, the crops he cultivated, etc. Without his rational mind, man would still be in the jungles, much like the dinosaurs did or the tigers still do.

    Man is a being of volitional consciousness. His senses bring him percepts of the world around him. His rational mind helps him make sense of these random percepts, organise them into concepts and thus derive principles according to which he may act. He chooses, on his own and based on his cognitive apparatus and the concepts he has formed using it, the course of action to follow in any circumstance.

    We now come to the most important point of all – the concept of morals and the definition of the concept “right”

    Life, especially human life, is not something that happens. It exists and sustains itself by choice. The most important choice man makes is the choice to live. Once he makes that choice, he has a whole lot of choices to make to be consistent with that. To a man who makes the choice to live, any action that tends to enhance his life (in terms of quantity and quality) is moral and that which diminishes it is immoral. As a simple example, to a man who wants to live, consuming poison knowingly is immoral.

    Having said this, there is only 1 axiomatic right – the Right to Life. This right is a completely moral principle that essentially means that Man, as a being of volitional consciousness, needs to be able to act as per the directions of his rational mind if he is to live as per his nature as man. Violating the Right to Life is nothing short of condemning man to death. The only way to prevent man from acting as per the directions of his rational mind is to initiate force against him. In other words, by taking away his Liberty to act as he deems fit.

    The Right to Life is very interesting indeed because it automatically prescribes the range of actions a man may undertake and simultaneously defines those that he may not undertake. This becomes clear when we realise that the very concept of Right to Life (and indeed all rights) makes sense only in a social context. In other words, the Right to Life, like all other Rights, is a political right. It is a statement that no man may prevent another from acting as per the directions of his own rational mind. Failure to acknowledge this principle is acceptance of the initiation of force. Since this is not in a man’s rational, long-range self-interest, he accepts the principle.

    A man who says “I recognise the Right to Life” automatically says that he recognises the Right to Life of every rational human being like himself on the principle of reciprocity. He does so because doing so has a better chance of guaranteeing that others likewise respect his Right to Life.

    The Right to Liberty is a logical corollary, though the most obvious one, of the Right to Life. Since preventing a man from acting as per the directions of his rational mind is a violation of his liberty, violation of the Right to Liberty is tantamount to violating his Right to Life. On the assumption of reciprocity, men thus realise that recognising the universality of this Right to Liberty is in their long-range self-interest.

    Property is a tricky question, but then a little application of mind soon reveals that it too is a logical corollary of the Right to Life, but is meaningless in an environment that denies the latter.

    Firstly, to recognise property, one needs to go back to the point that man acts to sustain his life as per the directions of his rational mind. He does this by seeking things of value. Value is that which one acts to gain or keep. On acts to acquire values because of one’s rational judgement that they add to one’s life. (In contrast, that which takes away from life would be called a disvalue).

    There are 2 ways of gaining something – taking possession of that which exists and producing something that did not exist before in the form in which it becomes the value sought. As far as the former is concerned, the fundamental principle of nature is that of “finders keepers”. The first person to stake claim to something found in nature becomes the rightful owner. Absurd statements like “What if someone stakes claim to all the air on earth?” are easily disposed off by the sheer irrationality of such a claim, especially on the implementation. It would take a really stupid person to make such a claim on the air (unless of course he has the ability to trap all the air on Earth).

    The tough part is production. Production is the act of modifying the environment to produce the value sought out of previously available materials. The key to this process is the production of ideas. The idea that something would be of value to his life logically and temporally precedes the actual production of the value. The ideas that make it possible for the creation of the value too go into the production of the value. These too are not given to man. He needs to produce them based on the range of concepts that he has managed to gather till date and their application and extension (meaning new ideas) to the problem on hand. Thus, a prerequisite for production of physical goods is the production of ideas. A world bereft of ideas will soon be bereft of valuable physical goods (except of course those that occur in nature).

    Having said this, it is now time to come to the Right to Property. The Right to Property is nothing more than the right to the fruit of one’s actions. In other words, if the value man produces to sustain his life as per the directions of his rational mind may be taken away from him, he is condemned to death. A rational mind working in a man’s own long-range self-interest would conclude that a productive man is most benefited by an environment in which there is no taking away of the fruits of one’s actions. Every rational man now needs to make a choice. Either he decides to respect the right of everyone else to the fruits of their respective actions and thus hopes to get his respected as a reciprocal gesture. Or else he prepares for a world where everyone is just trying to take away that which other people have produced. Once again, a rational man working for his own long-range self- interest has only one option – Recognise the Right to Property.

    By doing so, he immediately accepts the principle that the way to attain the value that someone else has acquired or produced is to deal with him on the principle of voluntarism – as a trader giving and receiving value.

    As mentioned earlier, physical goods or ideas need to be produced. They do not pre-exist. Every man needs to make a moral choice. Either he respects the Right of each person to the value (physical good or idea) he has produced and trade with him to get it or he soon creates for himself a world in which people have no incentive to produce and hence, where he has nothing of value to get from them, by trading or otherwise (unless of course he chooses to live as a cannibal).

    Rational men forced into a situation where others do not respect their right to the fruits of the ideas they produced have only two options. Produce ideas and stop sharing them with others (the beginning of the Dark Ages) or just keep mooching on others . The latter option of course assumes that others will continue to produce ideas which they can parasite on. Only a truly irrational person detached from reality will make that assumption. Such a world will soon become completely bereft of ideas.

    Thus, the case for IP is a completely moral one, on the same grounds as the case for the Right to physical property. Rational men would recognise IP because doing so would be in their long-range self-interest.

  • Published: September 7, 2009 12:55 PM

  • steve kowalski
  • Two thoughts on this article, one minor the other more important. The minor one. It is diningenuous to contrast a utilitarian perspective from a principled one. I’m sure that Jeremy Bentham and JS Mill thought their perspective was highly principled. The contrast should surely be between a utilitarian perspective and a rights-based (or deontological) one. (I agree, incidentally that the rights-based one is superior).The more major objection I have is with the thought that, to properly come to own a physical resource, there need be no element of creation or transformation. (We should be careful about using the term creationism, incidentally, for fear of confusion with the unscientific mumbo jumbo more usually associated with the term.) You yourself say that homesteading involves “using and thereby establishing publicly visible borders”. Using, in this sense, means creating something from the resource, transforming it in some way, such that the borders become established via this process. John Locke calls it mixing one’s labor with the resource. We do not, I presume, wish to claim that merely embordering a resource is sufficient to justify a claim – otherwise someone in the 19th century could have built a fence around the state of Iowa (or wherever) and made a just claim – even without doing any work on the land. Or, to use Nozick’s example, stuck a pole on the moon. It seems our theory must include a proper element of transformation, such that, were it to be taken away, one’s work on the resource would also be taken without justification. This introduces an element of something we may wish to call creation into the equation. (I agree entirely, incidentally, with all the points made about a hunk of marble). But if creation is necessary in this way in a theory of just ownership of resources, we have to admit that it opens the door for using creation as an element in justifying patentable objects.

    I am quite prepared to accept that there may be an additional relevant difference between the two, such that patenting is unacceptable, but I don’t believe we have yet been given it.

  • Published: September 7, 2009 1:29 PM

  • Russ
  • steve kowalski wrote:”The contrast should surely be between a utilitarian perspective and a rights-based (or deontological) one.”

    A rights-based argument does not have to be deontological. There is also a rule utilitarian approach that justifies the rules because they result in the best outcome.

  • Published: September 7, 2009 1:41 PM

  • Michael A. Clem
  • Not bad, Bala, Rand is always stirring and inspiring. But I think I detect a couple of flaws near the end. First of all, you must be clear on this: ideas in themselves cannot be property. An idea must be fixed in some physical form or media. Obviously, a novel is fixed in a manuscript and/or book. A collection of songs are fixed in a compact disc or, increasingly, a network drive or hard drive. Less obvious, but still the same thing, is the idea for a chair design, fixed in the production of an actual, material chair.I also find the right to property as the “fruits of one’s actions” to be a little less than specific as a guide to property rights. Many actions are possible, and some actions are more effective than others. Some actions are intended to create some durable product or result, and others aren’t. If I whistle a new tune without recording it, no property has been created, and thus, no property rights have been derived.

    You’re also making a leap that ideas have value to ideas should be protected. Obviously, in a more mundane sense, if I develop a unique accounting system to maintain my budget, it in no way interferes with my use of it if someone else also uses it. The only question is whether or not it is both unique and useful enough that others might value it, too. But even a common, ordinary budgeting system is valuable to many people, especially to young adults who have never had to juggle finances or keep a checkbook. So we see that an idea hardly has to be unique to have value. The question is, why should a unique idea be considered “property”, whereas a common idea is not property?

    Once again, no idea can be property. It can be unique only until more people know about it. But the fixed medium that holds an idea, be it common or unique, that is property. So, it comes back to Stephan’s argument once again. If I purchase a book, a cd, a computer porgram, etc., what are my rights in relation to it, given that it is only a copy of what the creator produced? Or to take a different example, if I purchase a chair that has an original, all-new design, is it wrong for me to make a copy of the chair with the same design, or is it wrong to produce copies of the chair and sell them, or is it just wrong to produce copies of the chair and sell them with the same brand or designer notice as the original chairs? Is the design intellectual property and deserving of protection, or is it just the brand name that should be protected?

  • Published: September 7, 2009 2:04 PM

  • Bala
  • Michael A Clem,” First of all, you must be clear on this: ideas in themselves cannot be property. ”

    Whether you choose to recognise something as property or not is your choice. But remember that while you are free to make your choices, you are not free to escape the consequences thereof.

    ” If I whistle a new tune without recording it, no property has been created, and thus, no property rights have been derived. ”

    A person who whistles a tune without recording it is deriving happiness out of the tune he whistles. (the reasons for that could be many) That is the reason he does so. That is the fruit he desired from his action and that is what he got. Clear?

    ” You’re also making a leap that ideas have value to ideas should be protected ”

    I never said it. I said we each need to make choices. The choice in this case is “Am I going to respect the idea producer’s right to the fruits of his actions?”. You are free to make your choice, but once again, the consequences will be yours too.

    ” why should a unique idea be considered “property”, whereas a common idea is not property ”

    All these are your distinctions, not mine.

    ” Once again, no idea can be property ”

    It is not easy, but when it is a moral choice, which side do you want to be on, the right side or the wrong side?

    ” If I purchase a book, a cd, a computer porgram, etc., what are my rights in relation to it, given that it is only a copy of what the creator produced? ”

    Wrong questions to ask. Ask yourself which way you will be benefited in the long run. By deferring to the author’s and the publishers right to the fruit of their actions or by infringing on it? Remember that by reproducing the book and distributing it, you are adversely affecting their income. What would you expect the author and the publisher to do is a lot of people started doing that? Publish more books? Wishful thinking.

    ” Is the design intellectual property and deserving of protection, or is it just the brand name that should be protected? ”

    At the end of the day, it is a MORAL question. The issue at stake is your own long-term self-interest. All the best in making the choice.

  • Published: September 7, 2009 2:19 PM

  • Michael A. Clem
  • Oh, I get it. You’re failing to make the necessary distinctions, because at the end of the day, morality is instinctive, not a matter of rationality.Just kidding, I’m pretty sure that’s not what you mean. But the vagueness of your responses leaves little for rational decision-making. That’s exactly why I was trying to to make these distinctions and ask these questions that you’ve decided to avoid. Reason doesn’t work in a vacuum. Logic is useless without the necessary inputs to work with.
  • Published: September 7, 2009 2:34 PM

  • Stephan KinsellaAuthor Profile Page
  • Bala, thanks. But what is your question?
  • Published: September 7, 2009 2:46 PM

  • Bala
  • Michael A Clem,” You’re failing to make the necessary distinctions, because at the end of the day, morality is instinctive, not a matter of rationality. ”

    Oops!!! That’s not the idea. The point is that the market is the best place to settle these distinctions but the idea of respecting the idea producer’s Rights to the fruit of his actions is a rational moral choice. Very simply, it is in your rational long-term self-interest to respect it and against your interests to violate it. Morality is indeed very hard and rational. The only problem is our respective individual ability to recognise reality for what it is.

    ” But the vagueness of your responses leaves little for rational decision-making. ”

    I was making a moral case. My responses too were moral. I cannot and should not provide all the answers because you too as a rational human are capable of arriving at conclusions on what is in your long-range self-interest. In fact, you are the only person who can make the choice. All I am saying is that respecting IP is a morally sound choice irrespective of the distinctions you have made. The distinctions are just splitting hairs trying to find a loophole.

    The quality of the idea and the returns the producer needs to get will be decided by the market, not by you or me.

    ” Logic is useless without the necessary inputs to work with. ”

    The inputs are clearly available – “Someone appled their mind and produced this idea. Am I going to respect his right to the fruits of his actions or am I not?”.

    Equally clear are the choices. A person seeking his own rational long-term self interest would choose to respect the producer’s rights to the fruits of his actions (profits in the case of commercially valuable goods).

  • Published: September 7, 2009 2:49 PM

  • Bala
  • SK,” Bala, thanks. But what is your question? ”

    That was no question. That was a complete refutation of your position on IP. I have said, stating my premises and my arguments, that by completely misunderstanding the very concept of Rights, specifically Property Rights, you are presenting a false and indefensible case against IP.

    I would like to see your response.

  • Published: September 7, 2009 2:53 PM

  • steve kowalski
  • Russ – I agree that rule utilitarianism can be made to look rights based, but since the good precedes the right under utilitarianism, I doubt that it can be described as deontological. Anyway, it is a minor point. I don’t particularly want to debate defintions – the point I was making that it is not correct to suggest that utilitarianism is unprincipled.
  • Published: September 7, 2009 3:21 PM

  • Antiip
  • “but not for stealing my ideas”Ideas can NOT be stolen.

    Ideas are a type of information.
    Information itself can only be copied.
    Only the medium in which information itself is presented can be stolen.

    So if you write a manuscript and the manuscript itself is taken away against your will and without a contract that IT is stolen. But if only a person hears about your manuscript and its content NOTHING is stolen.

    Clear?

    Property rights only in physical matter can exist. There are no property rights in patterns/information.

    Only by declaring positive law legitimate you could define such “property rights in information”.

    But that is NOT possible regarding natural rights. Objectivism failed.

  • Published: September 7, 2009 10:14 PM

  • Antiip
  • “I never said it. I said we each need to make choices. The choice in this case is “Am I going to respect the idea producer’s right to the fruits of his actions?”. You are free to make your choice, but once again, the consequences will be yours too.”Wrong.

    Your statement is wrong, because you assert that there is right to an idea.
    The right statement would be: “Am I believing that someone has a right in an idea, an information, or a pattern.”

    This is the choice people have to make.

  • Published: September 7, 2009 10:20 PM

  • Bala
  • Antiip,” Your statement is wrong, because you assert that there is right to an idea ”

    I never said that. I spoke only of respecting the right to the fruit of one’s actions. If that meant producing an idea, so be it. I never spoke of a right to an idea. That is your language.

    Your last statement reflects that you either have not read what I have posted or you have not understood it at all. I said “Morals are a guide to individual action”. I also said that whenever it comes to action, we need to choose from available options. In this case, the choice is from among 2 options – one that assumes the producer has a right to the fruit of his actions and another that assumes he does not. There is nothing to believe in. It is all about choices. All that each of us has to face up to is the choices we need to make in our actions, not in our beliefs.

    Talking in meaningless language like this is the anti-IP propagandist’s main problem. By doing so, he loses his touch with reality.

  • Published: September 8, 2009 12:00 AM

  • John Donohue
  • I second the posts of Troy Camplin, Ph.D. and Bala.The concept that an idea is not property — but the physical delivery system is — pushed forward by Michael A. Clem above is a mild subset of Kinsella’s deep hatred of the producer. Reality is quite different. Ownership, deep intellectual ownership of the soul has primacy. The creator owns his idea in the purest form when he thinks it. All of this sad anarchist mumbo jumbo to deny the root of ownership is like so much noise of insects crawling around in the basement compared to this.

    Just as a human owns his own soul and body as an absolute, a human owns his own original thoughts with no justification, outside sanction or permission of another.

    The creator can well discover totally original ideas. He can reference and build upon other truth, other original creations. Yet they can still be original themselves. Or, the owner/creator of the idea may have come upon something already thought of in total by another. He discovers this because the owner has published or invented or in some way publicly signaled his intent to exploit the idea. So be it. One can salute that person across the way and respect the steps the firstcomer has taken to profit by the idea. If one is of good soul, while perhaps being initially surprised or even crushed emotionally, one will soon be thrilled that the idea has validity and will look to expand into a branch or offshoot that leads to a new insight.

    Naturally, the intricacies of “who got there first” or “how much of his or my idea is actually new and not simply rehash of other discoveries” can become complicated — and not all are of good will.

    But make no mistake, the fire of creation in the mind is like the roaring sun compared to the pitiful twiddlings of those laboring in some dank cave to sunder the creator from his creation.

    Since this thread is totally against not only this creator soul ownership but also legal protection of the delivery of the content, I do not care to expound ways this complexity can be served by justice. Real justice with fair courts, monopoly of force, patent and copyright…everything the anarchist hates.

    I simply wish to call Mr. Clem and Mr. Kinsella on the perfidy of rejecting primal ownership of ideas. If they had any shred of respect for man they would be doing everything possible to bolster protection for the creator when he decides to put his idea into practice for profit. Instead, their hatred for the creator and his mind is virulent, vicious and unrelenting.

    Ayn Rand would not be happy with any Objectivist wasting time on this blog. She is probably right. However, I’ll speak to Ludwig von Mises. I have not looked in on his writings in 25 years until now. It cannot be possible that the great mind I knew back then would support under the banner carrying his name the kind of violent anarchism and anti-mind mentality exhibited by Stephen Kinsella. It is a disgrace.

  • Published: September 8, 2009 1:11 AM

  • Bala
  • John,” Just as a human owns his own soul and body as an absolute, a human owns his own original thoughts with no justification, outside sanction or permission of another. ”

    This is something Stephan finds impossible to digest. His entire approach seeks sanction outside of the individual. Take for instance the way he harps on “the benefit to society” due to IP protection. That is nothing short of collectivism, but then that’s Stephan for you.

    You and I would think that Law ought to be true reflection of Morality. People like Stephan think otherwise. That’s part of the problem.

  • Published: September 8, 2009 1:28 AM

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{ 3 comments }

IP Resources at Mises.org (2004)

Old post that I intend to update soon. See also our IP-policy wiki.

Intellectual Property at Mises.org

March 29, 2004 10:53 AM by Stephan Kinsella | Other posts by Stephan Kinsella | Comments (9)

In response to requests from readers, listed below are links to several IP-related articles, most available on Mises.org:

Property/Rights-based Arguments

Utilitarian Considerations

Mises Daily

Further reading

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{ 1 comment }

What’s Worse: $80 Billion or $30 Million?

On the Marginal Revolution blog, Alexander Tabarrok quotes Don Boudreaux’s justified ridicule of the federal government’s “paying [1, 2, 3] the City of Los Angeles $30 million to subsidize a ten-year run of Cirque du Soleil.” This deserves scorn and ridicule, yes–but then so does the proposal to have the feds spend $80 billion plus on a “medical innovation prize fund.” Tabarrok inexplicably supports the latter, even though it’s about… 2500 times worse [update: or about 110,000 times worse, if you extend Tabarrok’s logic to all of patent law, copyright law, and trademark law, to result in a cost of about $3.3T].  See Libertarian Favors $80 Billion Annual Tax-Funded “Medical Innovation Prize Fund”; $30 Billion Taxfunded Innovation Contracts: The “Progressive-Libertarian” Solution.

[LRC cross-post]

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{ 2 comments }

Imagining the Fate of Copyright in a Future World

From Mises blog and Against Monopoly blog: Archived comments below.

Imagining the Fate of Copyright in a Future World (May 20, 2009)

There’s been much talk lately of the imminent death of copyright, due in part to the increasing digitization of information and media, the Internet, large bandwidth, and encryption. Nora Ephron, for example, recently observed, “We’re in the last days of copyright, if you want to be grim about it….” And see The Death of Copyright, Item #241, Encryption, Strong Privacy, and the Death of Copyright, The Death of Copyright, and many other such comments.

Imagine a world 150, 200, 500 years from now–when virtually every work of art, every novel, ever movie, song, and recording ever produced until today–and many years after–is public domain. Now imagine you want to play muzak in your elevators, or nice background music in your dental office, or car repair waiting room, or restaurant. Or imagine you want to publish a book (or website) of great paintings. If you want to do these things today, most of the works you’d be interested in are still covered by copyright. Sure, there are older recordings on scratchy 78 rpm LPs, and musty tomes from the time of the Civil War or earlier–but modern stuff, in color, stereo, hi-fi, with modern acting and special effects–most is still subject to copyright. So to play muzak in your elevator or pipe in nice background music to the ceiling speakers of your waiting room, you have to pay annoying royalties each month.

But even now we are starting to see, with the advent of Google Books, The Internet Archive, and Gutenberg, and so on, increasingly modern books entering the public domain. Imagine 400 years from now, and every movie, song, painting, novel published from the dawn of time, every movie made in the 20th and 21st and 22nd centuries, plus hundreds of thousands or even millions of songs, photographs, paintings, … and the last 100 years or so is still locked up. Now let’s say you want to put up a website the 10,000 great paintings; or stream a music or movie station playing great songs and films–will you pay out the nose for the rights to publish the recent stuff? Well, maybe, but if you have an almost unending cornucopia of great, free stuff to choose from–methinks this might exert a strong downward pressure on the ability of copyright holders to extort much money from you. (And this is disregarding practical problems they face, such as some kid downloading all the world’s media into his petabyte thumb drive in 17 seconds via a totally secure encrypted link.)

Archived comments (from Mises blog):

{ 27 comments }

theblob May 21, 2009 at 8:15 am

Very nice post. I never believed that copyright would survive in the digital age, because its so easy to get around it. But this point never occured to me. Even if in the future there were strict copyright laws and enforcement, there would be an (practical )unlimited library of great books, movies, paintings and music to choose from.

Matthew May 21, 2009 at 9:14 am

While I acknowledge all your points Stephen, you don’t seem to address the possibility that advances in technology during the next 150/200/500 years will render obsolete the media over which copyright will expire. Just as “scratchy 78 rpm LPs” are now basically obsolete, perhaps so will be today’s latest digital recordings, etc.

David C May 21, 2009 at 10:28 am

Today, if one goes into a school teacher supply store, they may see 20 different books that teach the same thing. All in different formats, all with different approaches, all rewritten from scratch and re-written every few years to appease the copyright gods. Now that copyright is dead, I anticipate a great consolidation, a great standardisation of knowledge, and expensive hard back books will evolve into living work-books or on-line presentations/interaction. Not this college ritual where everyone needs to pay for overpriced books from select suppliers and then re-sell them used every year.

Michael Vogt May 21, 2009 at 10:35 am

@Matthew

It’s hard for me to imagine how the quality of today’s MP3s will be considered obsolete in the future to the point that people will choose not to listen to them. Even if people start to prefer a different format – such as Ogg Vorbis or FLAC files, it would be a trivial matter to convert MP3s to such formats on a computer.

The static of old LPs were very noticeable and distracting, but MP3s and Ogg Vorbis files already represent a decline in quality from CDs, but the convenience of reducing the storage space required for music far outweighs the reduced quality in most people’s minds.

If people did want higher quality audio, then I would have expected DVD-Audio and SACD do have done better on the market. But people haven’t really demonstrated a strong desire for higher quality than they have coming out of their combination of MP3 player and earbuds right now.

2nd Amendment May 21, 2009 at 12:44 pm

As a customer I find Muzak and piping to be extremely annoying as they force unwanted music on me.

I will be very satisfied with silence and reading books while waiting or playing on my PSP !

Muzak needs to go to hell and as a free acting customer I tend to avoid places with muzak unless I really have to use their services.

If IP rights means no muzak then I want more IP rights and high fines, LOL !

Muzak must die painfully and go to hell ! In fact, in Hell people don’t suffer because of fire, they suffer because of the muzak piped from the eternal choir in heaven, LOL !

2nd Amendment May 21, 2009 at 12:49 pm

Copyright is about controlling atoms, not information.

Any physical place that cannot escape their physical location and that cannot move around or run away from cops will be subject to copyright laws because such places are easy to find and control.

Individuals on the other hand can copy music from the internet and carry it with them all around and it’s difficult to know who has what illegal music. They are anonymous as a whole and nobody knows what they pipe.

Inspectors can’t arrest individuals in the street and control their MP3 players to make sure they have paid for all their music.

So IP rights will continue to haunt and harrass business owners but individuals have the power and will always get around it.

And individuals always got around it, even before the digital age it was easy to copy records and tapes and exchange copies with friends at random gatherings.

Sasha Radeta May 21, 2009 at 1:07 pm

Well imagine a libertarian future world, for change…

Copyright is not an issue for anyone who wants to pay the price for co-ownership of books, CDs, or any other work of ownership (real property). By paying this price, you would obtain the right to replicate these works, publish – or do whatever commercial use you want to do. Unfortunately, some pseudo-libertarians want to pay a small price for only a limited use of someone’s property — and then they want to be free to hijack this good and claim the full ownership they never paid for.

Should we prevent authors to contractually sell only a limited use of their works? Should we abolish the right of property holders to attach restrictions in use of their own goods? By the same token, should we force rent-a-car firms to let their clients do whatever they want with rented vehicles, regardless of terms of use through which they acquired limited access to this property…

If a property owner does not have an absolute control over services derived from his property, this logically implies that the owner does not have a legal capacity to exchange any services or use (such as rent or labor) for real property. Hence, arguing that authors should be prevented from protecting their goods from unwanted use implies aggression against private property.

Unfortunately, a non-economist will have a hard time understand that imposing a zero-price for use of books or CDs (through unrestricted, unauthorized use or theft), you would destroy all financial incentives for authors to provide these services to public. Abolishing property rights in these services would also destroy financial incentives for publishers to purchase co-ownership or publishing rights. Fortunately, that is not what the future really holds.

Regards,

Michael Vogt May 21, 2009 at 2:30 pm

@Sasha

I believe copyright is becoming an issue for people who have absolutely no connection to the author of a book:
http://zenhabits.net/2009/04/feel-the-fear-and-do-it-anyway-or-the-privatization-of-the-english-language/

If copyright were merely a form of contract between two or more consenting parties, I don’t think it would be problematic. But copyright is applied to people regardless of whether they have consented to any contract, or even had any contact with the author or copyright holder.

Your third paragraph seems to suggest that the loss of copyright would somehow abolish contractual rights for authors, which I don’t understand. Authors would still be free to engage in contracts with publishers, they simply wouldn’t have any control over non-contractual parties. The publisher and author would still have the right to publish first, and the first to market has obvious advantages.

Regarding your fourth paragraph, it is the copyright holder who infringes on the absolute control over the property and physical resources of others, who cannot print rightfully owned ink on paper in a certain order, because copyright laws make it illegal to do so. The aggression against property rights goes in the opposite direction from how you see it.

If your last paragraph were true, then one would think that no author would have published any books before copyright was in place. But books were written before the days of copyright. Even though one can download books such as “Against Intellectual Monopoly” and “Against Intellectual Property” for free, the books have sold very well on Amazon.

David C May 21, 2009 at 3:45 pm

@sasha

FYI, it’s the creators who get nailed the hardest with copyright and in practice creativity flourishes without copyright controls. How could you not notice the complete disregard for copyright on the internet, did all the artists, developers, and writers run away and hide? No creativity exploded. However, that is a red herring and you know it, this is really about the just nature of property so lets look at that instead.

In your car rental example, if I rent the car to deliver flowers and they didn’t oppose that in the contract I sign, then I didn’t break any contract. Now if the state came along and said that it did anyhow, that’s 3rd party interference, and regulation, and interference in free markets, and interference in how I use my property. Also, if I lend the car to someone else who unknowingly breaks the contract I signed. He is not liable for the contract, I am. But if the state came along and said he is anyhow, that would once again be 3rd party interference, and regulation, and interference in free markets. Amazingly, you go two steps further and say that the state can impose contracts that I and 3rd parties are obliged to uphold even though no contract was ever signed, and that the state can impose controls on how I use non physical entities that are even more restrictive than with physical ones.

All I can say is that it’s sad that you don’t you believe in free markets and property, however re-defining what property means will not help your argument. Do you own slaves on the plantation? Just because somebody calls something a property right doesn’t mean that it is. So prove it’s a property. And don’t give me platitudes like “you can’t prove free speech”, you are not being asked to prove it’s a right, you are being asked to prove it’s a property. A logical rational entity.

scott t May 21, 2009 at 8:04 pm

“I never believed that copyright would survive in the digital age, because its so easy to get around it.”

i guess….should it have ever been survived at all in any age?

i more or less think not.

i expect numerous market methods would have come into place to fund and promote artistic/intellectual endeavors.

Peter May 22, 2009 at 1:38 am

The static of old LPs were very noticeable and distracting, but MP3s and Ogg Vorbis files already represent a decline in quality from CDs, but the convenience of reducing the storage space required for music far outweighs the reduced quality in most people’s minds.

The “quality reduction” is only a technical issue anyway. If you have some electronics you can detect that the signal coming off the CD and the signal coming out of the Vorbis file are different. But you can’t hear the difference, at reasonable compression settings (e.g., ~160-192kpbs Vorbis; 320kbps MP3)

Sasha Radeta May 22, 2009 at 2:49 am

@ Michael Vogt:

Everyone who purchase only a limited (copyrighted) use of a book, knows well that they are not purchasing the full ownership rights (that cost a lot of money for best-sellers). By purchasing only a limited use, you are entering an implicit contract and its violation is nothing but a trespass against owners’ exclusive rights

Like I said: many non-economists will have a hard time understanding why publishers will loose incentive to purchase publishing rights from authors– when price of their product (print) is set to zero by unauthorized use. But that’s a simple fact that comes from the law of demand and supply.

By the way, market for online books is completely different from market for printed books. I dislike online books and like many others, I choose print. That’s why many authors choose to retain copyright over printed books, although they decide to offer their books online (form of advertising).

The fact that unrestricted access to some service (such as use of printed books) drives its price toward zero is an economic axiom that you can’t ever negate. Also, the fact that zero-price destroys financial incentive to provide this service is also true, although communists built their entire ideology trying to ignore this fact.

There will always be authors of pamphlets who will get financial support from their comrades, even without copyright — but if abolishing copyright is so great for the authors, why the vast majority of them choose to retain copyright protection? It should be their free choice, anyway.

=====================

David C said:

“In your car rental example, if I rent the car to deliver flowers and they didn’t oppose that in the contract I sign, then I didn’t break any contract. ”

David C illustrates a common fallacy in anti-IP arguments… Beautiful!

David C, if your purchase a strictly limited use of someone else car (rent-a-car), you exchanged property title of your money ONLY for certain services (personal use) stipulated in that contract. in this case, the rightful owner (rental company) decides to retain all other services that can be derived from his good. If you decide to go beyond this contractually permitted use, you are in fact trespassing against another person’s property.

I hope this helps… best regards!

Michael Vogt May 22, 2009 at 10:37 am

@Sasha

You didn’t address the problem of applying copyright laws to people who have made no agreements with the author, publisher, bookseller, or anyone else; such as the website I linked to where a blog was sent a letter from a lawyer for using a common phrase that happens to be the title of a book. Copyright is obviously applied to people who’ve had no connection with the copyright holder or anyone else, without consensual agreement. How is the application of copyright to people who have not agreed to its terms not an act of coercion?

You say people know they are buying limited rights in their books and CDs, but I disagree. I don’t think people do understand that they’re only buying “limited rights,” as I have to explain these concepts to people regularly. (Q: Why can’t we put a recording of a church service on our website? A: Copyright forbids us from distributing recordings of the hymns we sing. Q: Why can’t we use this as background music on our video, we already bought the CD? A: Copyright means we can’t distribute a copy.) Such frequent and repeated experiences tell me that copyright is not understood by the general population.

Thus I don’t believe there is truly any understanding or agreement between the bookseller and customer when a customer buys a book or CD, only a law forced upon them by the government without contract or agreement. When the music industry argues that customers shouldn’t be allowed to rip a CD onto their iPod, this strikes almost all customers as silly. They believe they paid for the music, why can’t they listen to it on a different device? Why can’t they make a copy for their spouse to listen to? I don’t think you’ll ever convince people they really only paid for a “limited use license” instead of for the actual CD and the right to use that CD how you please, like any other piece of physical property. This just shows how unnatural copyright really is.

You also say the problem is a lack of understanding of economics. I don’t claim great expertise in economics, but you really don’t know how much I’ve read or studied the subject, so it’s unreasonable to claim our disagreement is due to my economic ignorance instead of a difference of opinion and understanding. Do you really feel that people like Kinsella and Jeffrey Tucker are just ignorant of economics? It seems apparent that they are knowledgeable in economics, and still disagree with you.

I believe a lack of copyright would indeed drive the prices of books down. But what’s wrong with that? I believe fewer books would be written (but I think there are too many books being written as it is, and resources are being wasted because of that), and I also believe that books would be much cheaper.

It’s understandable why authors and composers support copyright, as it creates artificial scarcity, which can make their products worth more. But why should such favoritism be shown to authors and composers? Authors and composers were paid before our current understanding of copyright was enforced, perhaps they weren’t paid as well, but then books and music were cheaper for everyone else, which is surely not a bad thing.

Your idea that copyright is needed to prevent “zero-price” or create incentive is not supported by evidence or logic. Lack of copyright would not provide unrestricted access to books for consumers, they would still have to be printed by publishers and the first publisher would still have the right to be the first to print through contract law (see the 9/11 Commission Report book for an example of this with a book that has no copyright). Contract law and first to publish gives authors and publishers ample opportunity to make money.

If you read the second chapter (8th page) of “Against Intellectual Monopoly” ( http://www.dklevine.com/general/intellectual/against.htm ) you’ll see that British authors were sometimes paid more by American publishers, despite the fact that there was no copyright protection for foreign works in America at the time. The cheapness of such books might have even contributed to the dramatic rise of literacy rates in America as well.

It seems there would still be plenty of money to be made by authors and composers, they simply wouldn’t be shown such favoritism and make as much as they do now, and consumers would have cheaper goods to buy. A different balance, to be sure, but hardly the disastrous scenario you seem to suggest.

Michael Vogt May 22, 2009 at 10:49 am

@Peter

I agree. The difference is pretty minimal for decent MP3 and Ogg Vorbis files. I like to think I have a pretty good audio system at home, and that I can tell the difference if I really pay attention, but that’s with B&W speakers and a Rotel amplifier and preamp. When you’re listening on a iPod with the included ear buds, I can’t imagine you’re going to notice any difference at all.

I brought up that issue for two reasons. First, to show how concern for quality doesn’t seem to be that great for the average consumer, otherwise they’d stick with bulky CD walkmans. Second, the slight degradation in quality was the only argument I could think of for why MP3 files might be considered “obsolete” in later years, and as you’ve pointed out it’s a very weak argument indeed.

Michael Vogt May 22, 2009 at 11:17 am

Are we already seeing what Kinsella is talking about in the classical music world? I just notice far more recordings being released of music whose copyright has expired. I know this is a small store, but look at the selection at magnatune as an example:
http://magnatune.com/genres/classical/

You have to go to the bottom of the page to find three recordings released of classical music composed after 1800.

I would guess that there are better statistics out there, I’ll have to look around and see what I can find.

Michael Vogt May 22, 2009 at 11:28 am

@Sasha

Out of curiosity, have you read “Against Intellectual Property” or “Against Intellectual Monopoly”?

I was supportive of copyright in a far more limited form and term before I read these books. Slowly my mind has been changed on this issue because of these two books. I’d recommend giving them a look. Against Intellectual Property is pretty short, and you could easily print it off and read it in your spare time within a few days. There’s no reason to avoid reading it, I say! :)

Sasha Radeta May 22, 2009 at 1:33 pm

Michael Vogh said:

“You didn’t address the problem of applying copyright laws to people who have made no agreements with the author, publisher, bookseller, or anyone else…”

However, I did address that issue. If you never contractually purchased the right to reprint or to publish other person’s book (like putting it online) – and yet you decide to do these activities without owner’s consent – you are clearly trespassing and committing theft. Copyright is properly applied to people who never entered any contract only when they use other person’s property without his permission.

However, there is a beautiful example of economic illiteracy of anti-IP crowd. For example, Michael Vogh said:

“When the music industry argues that customers shouldn’t be allowed to rip a CD onto their iPod, this strikes almost all customers as silly. They believe they paid for the music, why can’t they listen to it on a different device?”

This argument is simply nonsensical. You cannot ever purchase “music.” You can only purchase real goods or services — in this case the service of limited use of a CD (even stipulated in print). Every rational person knows that the purchase of unlimited access, publishing, or co-ownership rights for these CDs cost a lot more money. That’s the price the publishers pay — an everyone knows it’s lot more than $14.99.

I will not even bother to comment that “British authors were sometimes paid more by American publishers” in absence of copyright… This “sometimes” might be a good argument in a ideological pamphlet, but not in a serious discussion about economics. If a business model of relinquishing copyright is so great and get authors paid more– why every single author give up their copyright protection :-) )) Why do we even have this discussion, if authors would get paid more by listening to dr. Kinsella?

You demonstrate another example of your trouble with economics by saying:
“they (books) would still have to be printed by publishers and the first publisher would still have the right to be the first to print through contract law (see the 9/11 Commission Report book for an example of this with a book that has no copyright)”

Anyone remotely familiar with economics knows that prices for inputs (in this case the prices of original manuscripts) are determined by the price of final goods (in this case the price of public book-use). Also, the current prices are always determined by the expectations of future prices (economics 101). If the prices of printed books always go down toward zero in short period of time, what publisher would be crazy to pay large sum of money to authors? If you think that this radical change would not be harmful to a supply of books, you clearly have a problem with the law of supply. by the way, the 9/11 report had a unprecedented marketing promotion before it was published and cannot be compared to the publicity that an ordinary author can ever get — but tell me please — how much money did the state make with this rubbish? Just curious…

By the way, I never implied that Tucker or dr. Kinsella are economically illiterate. That’s why “Against Intellectual Property” is copyrighted by Mises institute, as you could see from page 2 of this PDF file: http://mises.org/books/against.pdf .

What happened to:
“I, the copyright holder of this work, hereby release it into the public domain. This applies worldwide.

In case this is not legally possible, I grant any entity the right to use this work for any purpose, without any conditions, unless such conditions are required by law” ??????

Best regards,

scott t May 22, 2009 at 1:51 pm

“Your idea that copyright is needed to prevent “zero-price” or create incentive is not supported by evidence or logic. Lack of copyright would not provide unrestricted access to books for consumers…”

this is likely true.

numerous methods of front-end and direct patronage and artistic ‘retainership’ could be developed for endeavors that are now often copyrighted.

higher prices for real goods to support ‘entertainment divisions’ of companies without the dark-cloud copyright.

Michael Vogt May 22, 2009 at 4:37 pm

However, I did address that issue. If you never contractually purchased the right to reprint or to publish other person’s book (like putting it online) – and yet you decide to do these activities without owner’s consent – you are clearly trespassing and committing theft. Copyright is properly applied to people who never entered any contract only when they use other person’s property without his permission.

The “right” to reprint in the case of copyright is nothing more than a coercive monopoly that creates artificial scarcity.

Did you read the blog post I pointed to? The person simply used a phrase that has been around for many years, but was subsequently used as the title of the book, and the lawyers told him he needed to place a (C) next to it. Do you feel this was copyright “properly applied”?

What about derivative works? Should the copyright holder of Gone With the Wind have “the right” to stop The Wind Done Gone from being published? Is this how copyright promotes creativity? Is this copyright properly applied? Had the author of The Wind Done Gone engaged in a theft that is in any way similar to stealing a car or computer?

Copyright infringement isn’t like theft at all. If I make a copy of a CD, it has not taken a CD away from anyone else. That should be plain for all to see.

This argument is simply nonsensical. You cannot ever purchase “music.” You can only purchase real goods or services — in this case the service of limited use of a CD (even stipulated in print). Every rational person knows that the purchase of unlimited access, publishing, or co-ownership rights for these CDs cost a lot more money. That’s the price the publishers pay — an everyone knows it’s lot more than $14.99.

I was talking about popular conception. You ask a person on the street why they bought a CD, they’ll tell you they wanted the “music.” The value for the consumer is being able to listen to the music contained on a CD when they want. That’s what the consumer pays money for. They don’t have any concept that they’ve paid for a limited use license. They’ve just bought a CD that lets them play music when they want.

Is it nonsensical to think that once you’ve bought a CD you should be able to make a copy for your spouse or make a copy to keep on your iPod? Is this criminal? Have they committed an act of aggression? I think you’re wrong about the general public’s understanding of CDs and copyright. People have been sharing copies of tapes for ages, introducing people to new music. Computers have made this an order of magnitude easier, but I don’t believe that changes the average person’s understanding of copyright.

I will not even bother to comment that “British authors were sometimes paid more by American publishers” in absence of copyright… This “sometimes” might be a good argument in a ideological pamphlet, but not in a serious discussion about economics. If a business model of relinquishing copyright is so great and get authors paid more– why every single author give up their copyright protection :-) )) Why do we even have this discussion, if authors would get paid more by listening to dr. Kinsella?

How is a real life example of an author getting paid without the use of copyright not a part of a serious discussion about the economics of copyright? I never said authors would get paid more without copyright, in fact I said I expected the opposite for most authors, since they wouldn’t be allowed to create artificial scarcity for published works. But the point is that there’s no reason to believe that authors won’t be paid for their work.

Anyone remotely familiar with economics knows that prices for inputs (in this case the prices of original manuscripts) are determined by the price of final goods (in this case the price of public book-use). Also, the current prices are always determined by the expectations of future prices (economics 101). If the prices of printed books always go down toward zero in short period of time, what publisher would be crazy to pay large sum of money to authors? If you think that this radical change would not be harmful to a supply of books, you clearly have a problem with the law of supply.

The cost of books will be driven down “towards” zero, but obviously will never reach zero. Why are lower costs for books a bad thing? Only from the perspective of authors and publishers, but you conveniently ignore one side of the equation, the people who buy the books. Should there be no concern for them and the exorbitant prices they have to pay due to monopoly rights granted by government?

The reason a publisher would pay money to an author is that they would be first to publish. That was the point of the example given of American publishers paying British authors, who didn’t have copyright protection in America. How else do you explain American publishers paying British authors? Charity? No, they made more money because they were first to market.

If you think monopoly rights are absolutely required for authors and publishers to make money, I think the person suffering from economic ignorance is you.

by the way, the 9/11 report had a unprecedented marketing promotion before it was published and cannot be compared to the publicity that an ordinary author can ever get — but tell me please — how much money did the state make with this rubbish? Just curious…

You’re totally missing the point. The point is that the first to publish gains a significant advantage in sales without the use of copyright. But since you brought it up, there is some mention of it in Against Intellectual Monopoly:

The 81-year-old publisher struck an unusual publishing deal with the 9/11 commission back in May: Norton agreed to issue the paperback version of the report on the day of its public release….Norton did not pay for the publishing rights, but had to foot the bill for a rush printing and shipping job; the commission did not hand over the manuscript until the last possible moment, in order to prevent leaks. The company will not reveal how much this cost, or when precisely it obtained the report. But expedited printings always cost extra, making it that much more difficult for Norton to realize a profit

So we don’t know how much they paid for the right to first access to the document, but they did pay for it.

I don’t know why Against Intellectual Property, Kinsella would be a better person to ask for that information.

Sasha Radeta May 23, 2009 at 6:54 am

Michael,

In order to avoid miles-long replies, I will only outline basic flaws in your logic:

– ordinary person may think that they can purchase “music,” “beauty,” or “fun”… However, from perspective of law and economics, you can only purchase real goods or services.

– When you purchase strictly limited personal use of a CD (a service) for $14.99, you know well that the full ownership and publishing rights cost much more. If you go beyond the use you purchased – it’s a trespass.

– Law demand always holds: if we nationalize works of authorship by providing full access to goods like books or CDs to people who never paid for these ownership rights – authors will loose financial incentives to provide their services again (supply will go down, regardless of income-effect theory). Furthermore, such nationalization would be nothing but a theft and the first step toward communism.

– Mises Institute is not 9/11 commission. Mises Institute does not have an advantage of advertising “9/11 truth” all over media almost 24/7. In absence of copyright protection, it would only make a few dimes as “first-comers” before unauthorized prints would drive all profits to zero. In such environment of legalized trespass and theft, authors would inevitably suffer huge losses and supply of their works would go down (ceteris paribus). If you think such nationalization would benefit society and stimulate impoverished authors to produce more, why does it not work in other areas (socialism tried and failed)?

By the way, the business model in which you provide free online access as an advertisement, while protecting your printed books with copyright is a great idea for some publishers. However, advocating coercion and theft against those who don’t benefit from such model is simply wrong and unlibertarian.

regards,

newson May 23, 2009 at 7:01 am

to sasha:
when i purchase my $14.95 cd, can i loan it to a friend? or must i send him to a public library to achieve the same end?

newson May 23, 2009 at 7:13 am

to sasha:
how do you reconcile “fair use” with your moral argument for ip?

matskralc May 23, 2009 at 9:03 am

– Law demand always holds: if we nationalize works of authorship by providing full access to goods like books or CDs to people who never paid for these ownership rights – authors will loose financial incentives to provide their services again (supply will go down, regardless of income-effect theory). Furthermore, such nationalization would be nothing but a theft and the first step toward communism.

This is clearly borne out by the fact that nobody ever wrote anything before the 16th and 17th centuries when copyright was invented.

Michael Vogt May 23, 2009 at 12:04 pm

I had trouble finding this, so want to make it available to others. Copyright is automatically granted in the U.S., regardless of whether you want it or not. The reason why Kinsella’s book has a copyright notice is clearly explained here:
http://blog.mises.org/archives/009240.asp

@ Sasha

We’re obviously at the “agree to disagree” stage, but it seems pretty obvious that you haven’t read Against Intellectual Monopoly where they deal with the real world issues you talk about.

But to point out the flaws in your argument:

You’re obviously inconsistent in your belief about how knowledgeable most people are, choosing to see the general public as having very selective knowledge, whereby they understand copyright very well but don’t understand economics in any meaningful sense. :)

You say people are definitely knowledgeable about what “limited use” licenses consumers have bought in their CD, with absolutely no premise or evidence to back up that assertion. Judging by my own experiences with people and New Zealand’s experiences with lawyers who don’t understand copyright law ( http://is.gd/CHsB ), it’s obvious most people don’t understand copyright at all.

It’s likely people don’t understand it because copyright has no basis in natural law and is merely monopoly privilege creating artificial scarcity, disguised as a right. And if so many lawyers don’t understand it, what on earth makes you think the general population does?

You’re obsessed with pointing out that people can only buy goods and services. Apparently suggesting that the general population is only concerned with the value the CD gives them – allowing them to listen to the music on that CD – is a ghastly sin.

But a CD isn’t just a simple good, is it? It’s really a complicated limited use licensing agreement that only allows you to use it in restricted ways, since copying to an iPod or making a backup copy the moral equivalent of theft in your perspective. Understanding the CD as a “good” doesn’t really make things easier to understand, because the good is encumbered with invisible legal restrictions that are in no way self-evident.

And who suggested nationalization? That’s an obvious strawman argument that came out of nowhere. Without copyright, authors can still make agreements with publishers regarding their works, they simply can’t control it once it’s been published.

And copyright isn’t the same as theft, regardless of how much you try to equivocate copyright with property rights. If you steal my car, I don’t have a car. If someone makes a copy of a CD or book, the original still exists and is available for use. This could not be more apparent.

Copyright holders are those capable of true aggression, in that copyright gives you permission to aggress against other people’s rightfully owned property, preventing them from using it as they see fit.

Sasha Radeta May 25, 2009 at 5:47 am

Newson,

If you purchase the limited use of a CD for $14.99, in absence of any contractual restriction, you can only loan this limited use right to your friend. In this case, all other rights are reserved by the author and any unauthorized use is a trespass.

Fair use is a doctrine that allows copyright “trespass” to occur, as long as there is no financial injury to the owner (non-commercial use).

=====

matskralc,

your comment is a beautiful example of a basic problem with anti-copyright (nationalization of works of authorship) arguments. Before mass-printing was invented- there was no mass production of books and works of authorship. Printing press allowed authors to sell the limited use of their books — which benefited masses by providing cheep access to knowledge that used to be the privilege of aristocracy. It is interesting to note that you advocate the abolishment of copyright, while advocating the return to dark-ages of publishing and literacy before 16th century.

=====

Michael Vogt,

the alleged ignorance is not an excuse. You can’t buy “music” – period. You only buy certain limited use — and if you’re not sure what you’re buying, get informed. Information is well disclosed.

Even the most uneducated individual knows that publishing and co-ownership rights for CDs cost lot more than say $14.99. Therefore, copyright is just a defense from trespass of unauthorized use. If you believe in private property rights, you also believe in the right to exclude others from unwanted use of your property, while allowing certain use.

Hans Michaud December 5, 2009 at 5:40 pm

Thanks for the piece. It now seems to me that copyright law might quietly, eventually be ignored to death. After a certain point it may just slowly disappear. Or be eventually forgotten. I appreciate all the work you’ve put into this arena. It’s got me thinking on these matters in ways I wouldn’t have previously.

Louigi Verona December 9, 2009 at 4:52 am

@Sasha

“authors will loose financial incentives to provide their services again”

Perhaps. But it is a grave mistake to think that there are no other incentives apart from financial or that financial incentives are the main ones – on the contrary.

In fact, it is the importance that the financial incentive received that makes a lot of untalented people go into music and literature, hoping to make a fortune.

But art is a discipline of the spirit. Artists have always managed to make a living and the strong argument against the necessity of copyright is the fact that a lot of works, which in many cases surpass the quality of the modern pop culture, were created without any serious financial incentives. Although there were popular musicians and writers, hardly any one of them lived in luxury and it was generally not an incentive to start doing art.

 

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