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This is a nice, concise piece by , posted at Mises.ca. More and more libertarians are getting it. (See The Origins of Libertarian IP AbolitionismThe Four Historical Phases of IP Abolitionism, The Death Throes of Pro-IP Libertarianism,  Have You Changed Your Mind About Intellectual Property?Yet another Randian recants on IP.)

 

Intellectual Property: A Classical Liberal and a Libertarian Assessment

Monday, April 1st, 2013
IP Triangle Wheel
Many contemporary theorists and commentators frame the question of intellectual property as a question of ownership over ideas. In this framework, a new product is seen as an embodiment of a new idea. Producing multiple copies of a new product is then seen as a materialization of the same idea. Some conclude that ascribing ownership over a new idea to its original creator in the same way we ascribe ownership over material objects is inconsistent with either classical liberal or libertarian theory of rights. This inconsistency has led some to conclude that a creator of a new product has no right whatsoever in limiting the future replication of that object by others. This, however, is an erroneous conclusion.

The purpose of this article is two-fold. First I will elaborate why the concept of intellectual property is inconsistent with the classical liberal and libertarian theories of rights. In short, the root of this inconsistency is in the incoherent and ultimately subjective criteria for conflict resolution created by the concept of intellectual property. Second, I will argue that this inconsistency does not imply all replication of a new object is illegitimate. Classical liberalism and libertarianism contain clear principles for evaluating the legitimacy of copying in different situations. Both of these points bear heavily on the distinction between an idea and physical objects and on the nature of ownership under the classical liberal and libertarian theories of rights.

The Distinction between an Idea and Physical Objects

In its most general form, an idea has been defined throughout history as that which is not matter. For example, I may have an idea of a circle in my mind, but as far as we know, this circle does not exist anywhere as a physical object. It takes physical objects, say, pen and paper, to translate my idea into a material form. However, this translation is only provisional. I can imagine a circle that can never exist in reality. The equation x2 + y2 = r2defines an infinite number of dimensionless points in the x-y space, all at an equal distance, r, from one, central point. In other words, this is an equation of an ideal circular line in the Descartes’ two-dimensional coordinate system. This line, however, has no thickness or mass. No one can draw a line that has a thickness and a mass of zero. [continue reading…]

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From Prometheus Unbound:

PUP003 | Interview with Jeffrey Tucker

by GEOFFREY ALLAN PLAUCHÉ on MARCH 27, 2013 @ 8:05 AM

in Featured PostsInterview PodcastsIPNovels

 

Prometheus Unbound Podcast

In episode three of the Prometheus Unbound Podcast, Matthew and I have a fantastic interview with the wonderful Jeffrey Tucker, editor of Laissez Faire Books. It’s a long one, about an hour and fifteen minutes, and we knew you’d be eager to listen to Jeffrey, so we wasted no time with chit-chat and got right down to business. We covered a number of topics ranging from LFB, intellectual property, and Jeffrey’s favorite fiction.

We started off by asking Jeffrey Tucker what it’s been like working for a commercial publisher and bookseller after having worked for a nonprofit educational institution, the Ludwig von Mises Institute, where he was editorial vice president, for so long.

Then we went on to talk about the business model of Laissez Faire Books and the role of the publisher in the digital age as a curator and service provider (curation as a service); the compatibility of open source and business; intellectual property; the nature of competition; how many entrepreneurs and businesses misidentify the source of their profitability and don’t understand why people buy their goods or services; how copyright has held back the publishing industry; and markets as institutions of teaching and learning.

[Keep reading…]

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Another nice presentation from  learnliberty.org and Dr. Stephen Davies, a Historian with the Institute of Economics Affairs (see also SOPA and 3 Ways to think about Intellectual Property).

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McElroy: “The Last Gasp of Copyright Dies Within Me”

Great piece by Wendy McElroy, published today at The Daily Anarchist:

***

The Last Gasp of Copyright Dies Within Me

March 20th, 2013

Submitted by Wendy McElroy

 

grim2A few weeks ago, my position on intellectual property (IP) shifted. I abandoned the possibility that copyright by contract could function within a libertarian framework.

I have argued for decades that IP cannot be derived from natural rights. Most IP advocates claim IP is a product of your labor in the same sense as a chair you build; if you do not need a contract to claim the chair as property, then neither do you need one to own an idea. (See the Daily Anarchistarticle “The Basics of Copyright” for arguments against IP as a natural right.)

But I hoped the free market could provide the protection of contract for some forms of IP. Albeit, this protection would almost certainly erode over time as the idea spread. I have now concluded that such a contractual arrangement would be contradictorypolitically disastrous and incompatible with a libertarian legal system. Giving an example of each belief provides a sense of where my thoughts on IP are driving.

Contradictory

Chapter 10 of Murray Rothbard’s Man, Economy, & State makes a concerted libertarian defense of copyright by contract. Rothbard argues that a book with the word “copyright” imprinted on its first page constitutes a contract with which a buyer agrees to abide at the point of purchase. He concludes, “any infringement of the contract by him or a subsequent buyer is implicit theft and would be treated accordingly on the free market.” Elsewhere, Rothbard defines “implicit theft” as fraud.

It is a odd argument. If ideas are natural property protected by law, then taking them without consent is explicit theft. If they are property protected only by agreement, then misusing them is a breach of contract for which restitution and damages may be due. But a single word that the buyer may not have seen is far from an enforceable contract. A contract should have written or oral agreement by both parties, and agreement requires a knowledge of the terms which vary from one form of copyright to another. Equally odd is enforcing the ‘contract’ upon a third party who was not involved in the original agreement. What if that person found it abandoned on the ground? To what has he consented?

Perhaps Rothbard assumes that the original buyer has also agreed to terms of sale through which he can transfer ownership of his physical copy. If so, then he is extending copyright protection far beyond that championed by even diehard natural-right advocates of IP who argue that a buyer owns the physical copy of his book but not its content; that is, he can resell the book but not reproduce it. Rothbard seems to be saying that the word “copyright” means that the physical book itself is only conditionally owned with the author or publisher retaining control over the terms of its sale or gifting.

Of course, the same situation could occur with music, patented goods, movies, art… Indeed, why not stamp the bottom of every good produced with the equivalent of the word “copyright” and then assume a legally enforceable contract exists against the chair being replicated or sold on the ‘wrong’ terms?

Rothbard is stretching the concept of copyright and contract beyond recognition. But he does so because it is the only way to preserve a theory copyright by contract. [continue reading…]

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In the historical “Retrospective” section of Wendy McElroy’s 2011 Libertarian Papers article “Contra Copyright, Again,” she discusses the beginnings of the modern libertarian anti-IP movement in the 1980s, spearheaded primarily by her and Samuel Konkin III (“SEK3”). This resulted in a 1983 debate on IP between McElroy and J. Neil Schulman (“The Great IP Debate of 1983“), each of whom later published papers based on their presentation at that debate (McElroy’s is reprinted in “Contra Copyright, Again,” and first published in 1985; Schulman’s “Informational Property — Logorights,” in 1990, in the Journal of Social and Biological Structures, 13 no. 2, pp. 93–117).1 I discuss some of this in “The Origins of Libertarian IP Abolitionism,” “The Four Historical Phases of IP Abolitionism,” and “The Death Throes of Pro-IP Libertarianism.”

I had previously thought McElroy’s 1985 “Contra Copyright” was the earliest published work by a modern libertarian mounting a comprehensive and explicit attack on IP as such (even SEK3’s “Copywrongs” was not published until 1986). There was earlier writing skeptical of IP by Hayek, Rothbard, and Leonard Read, but these pieces were either not completely anti-IP (Hayek, Rothbard) or were not comprehensive and sustained (Read) (“The Four Historical Phases of IP Abolitionism”).

However, in a recent Facebook thread, Less Antman informed me that when he was publisher of Caliber, the California LP’s newsletter, it published McElroy’s article “On the Subject of Intellectual Property” in its Dec. 1981-Jan. 1982 issue.  He sent the PDF and a text version to me, an edited version of which appears below (PDF version; thanks to Ganine Van Alst for copyediting assistance). The article is a precursor to “Copyright and Patent in Benjamin Tucker’s periodical Liberty,” which appeared as a chapter in McElroy’s excellent 2003 book, The Debates of Liberty: An Overview of Individualist Anarchism, 1881-1908. This appears to be McElroy’s first published work on the topic of IP and, thus, the first comprehensive and explicitly anti-IP piece by a modern libertarian ever published.

McElroy sent me this email concerning her reflections about this piece and her current thinking on IP:

As a matter of preserving an accurate record, I do not like to rewrite articles from earlier years and, so, I did no editing. Nevertheless, my views on IP have changed in significant ways since 1981 and a few prefacing notes are required.

First and foremost, I no longer believe that patent or copyright by virtue of contract is either feasible or desirable. In fact, I think it would be incompatible with a libertarian legal system. I credit Stephan Kinsella with prompting this gradual drift in my position.

Originally, I took a vaguely Rothbardian view of IP; namely, I argued that a copyright claim could properly exist only as the result of an explicit contract and it would be binding only upon the agreeing parties. Huge logistical problems are immediately obvious. For example, how do you maintain a copyright on a book that is left lying around for others to read? I was not comfortable with the assurance “the market will evolve an answer” but I accepted it as the best I had.

I no longer do so. There are simply too many contradictions in “copyright by contract.” Consider the person who buys a physical book. Even diehard IP advocates agree that a purchaser owns the book itself and is merely constrained from reproducing it. But the only way to maintain a copyright by contract would be to deny the purchaser has any property in the book at all. Otherwise he could sell it to a secondhand store and the material within would be immediately and utterly unprotected. In order to maintain the protection, the copyright holder must deny that even the physical book can be owned by anyone else but him. Inserting a clause that bans resale into the original contract would not resolve the issue. Ownership means the “use and control” of a good, including disposing of it. If the copyright holder controls the terms on which the physical book can be sold, then he is asserting an ownership claim to the object itself and one that is superior to the purchaser’s.

Another reason I came to reject copyright by contract is that its enforcement would lead to an unjust and unlibertarian system of law. The purpose of a libertarian legal system is to provide reasonable restitution to victims. There are compatibility problems with copyright and restitution. Consider the case of a person who downloads a song. The purpose of restitution is to make the victim whole, perhaps with some additional compensation, perhaps not. (Disagreement exists on the justice of additional compensation but not on whether the overall compensation should be reasonable; otherwise, it is not just.) Yet the music industry and the courts have penalized people hundreds of thousands of dollars for a handful of downloads. To maintain IP, they must do so. If the courts assessed a download in terms of quadruple damages or some other reasonable sum, then there would be no incentive for people to eschew downloads. The chances of being caught are negligible, as would be the cost of being caught. One of the only ways left to minimize the number of downloaders is to make the laws draconian and severely punish a scattering of offenders as a cautionary tale to others. This moves the legal system away from justice and from restitution.

Yet another aspect of IP and libertarianism are incompatible: the incredible policing of individuals which would be necessary to prevent the ‘crime’. The immense free flow of information over the Internet means that more and more invasive methods are being used to monitor peaceful behavior. Now the advent of 3D printers has the potential to make the downloading and creation of duplicate goods as convenient as the downloading of music. This potential would devastate patents, of course. The only way to protect patents would be to monitor, restrict or ban people’s use of 3D printers. At every turn, as technology brings greater freedom and prosperity, IP is there to try and seize control … if not of the technology itself, then of individuals.

The race is on between freedom and IP, with government standing solidly and with both fists on the side of IP. And this is yet another change in my attitude from 1981. I now fully understand the vital importance of opposing copyright and patent.

 

ON THE SUBJECT OF INTELLECTUAL PROPERTY

By Wendy McElroy

(Published in Caliber December 1981-January 1982 Edition)

The question of what can be the proper subject of ownership — what is property? — is an important theme of libertarianism.

It arises in discussion of such diverse topics as slavery, pollution, animal rights and intellectual property. It is with intellectual property (by which is commonly meant, copyright and patent) that the question becomes unusually difficult, for what is being claimed is the ownership of intangibles, of ideas. The title of a recent book, Who Owns What Is In Your Mind?, concretizes a commonsense objection to intellectual property; most people would loudly declare, “no one owns what is in my mind!” Yet, if the information you have is a chemical formula which you accidentally glimpsed, do you have the right to market it as your own over the protests of the chemist who worked a lifetime to perfect it? Do you have the right to publish a book with characters named John Galt and Dagney Taggart? And if not, why not?

Intellectual property was the subject of intensive and unsurpassed debate within the pages of Benjamin Tucker’s libertarian periodical Liberty (1881-1908).  Because of this, the best presentation of this question is an overview of the debate.  The citations which appear directly after quotations refer to the appropriate issue and page of Liberty.

Although it is usually contended that the intellectual property debate was over the ownership of ideas, this is not quite accurate.  James Walker — who wrote under the pseudonym of Tak Kak — was a leading opponent of copyright and patent; he stated, “My thoughts are my property as the air in my lungs is my property…” (March 21, 1891, 4)  Both sides of the debate agreed that each man owns his own thoughts which he is free to express or not, as he pleases. [continue reading…]

  1. This piece appears in J. Neil Schulman, Origitent: Why Original Content is Property (Steve Heller Publishing, 2018) . []
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Cory Doctorow seems to keep inching more and more from IP reform to IP abolitionism. Jump on in, Cory–the water’s warm!

Copyright shouldn’t take away real property rights

 at 4:02 pm Mon, Mar 18

Meanwhile, progress is being made to legalize cellphone unlocking. With grassroots groups leading the charge, the Obama administration announced its support for overturning the ban last week. Since then, members of Congress have authored no fewer than four bills to legalize unlocking.This is a step in the right direction, but it’s not enough. Let’s make one thing clear: Fixing our cars, tractors, and cellphones should have nothing to do with copyright.

As long as Congress focuses on just unlocking cellphones, they’re missing the larger point. Senators could pass a hundred unlocking bills; five years from now large companies will find some other copyright claim to limit consumer choice. To really solve the problem, Congress must enact meaningful copyright reform. The potential economic benefits are significant, as free information creates jobs. Service information is freely available online for many smartphones from iFixit (my organization) and other websites. Not coincidentally, thousands of cellphone repair businesses have sprung up in recent years, using the repair knowledge to keep broken cellphones out of landfills.

As long as we’re limited in our ability to modify and repair things, copyright — for all objects — will discourage creativity. It will cost us money. It will cost us jobs. And it’s already costing us our freedom.

Forget the Cellphone Fight — We Should Be Allowed to Unlock Everything We Own (via /.)

Read more>>

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SOPA and 3 Ways to think about Intellectual Property

Here is a very nice, short video arguing against patent and copyright from learnliberty.org, by Dr. Stephen Davies, a Historian with the Institute of Economics Affairs.

Update: see also LearnLiberty: Can Artists Make Money Without Copyrights? (Video)

 

trademark perpetualThere are a few legal inaccuracies in the video, but they don’t affect the overall argument. But for example the video implies there are 3 types of IP rights—patent, copyright, and trademark—and omits others like trade secret and modern legislative innovation. It says that IP rights are limited in time, and gives as an example a 28-year patent and a trademark (the Coca-Cola mark). But patents last 20 years from issuance, not 28; and trademarks can be renewed indefinitely and trade secrets theoretically maintained forever. Still, this is a minor quibble.

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Free Talk Live Interview on Reducing IP Costs (2010)

From StephanKinsella.com:

KOL 033 | Free Talk Live Interview on Reducing IP Costs (2010)

by STEPHAN KINSELLA on MARCH 17, 2013

in INTELLECTUAL PROPERTY,KINSELLA ON LIBERTY PODCAST

Kinsella on Liberty Podcast, Episode 033.

I was interviewed back on Jan. 20, 2010 by Mark Edge, as part of his “Edgington Post Interview Series,” for his Free Talk Live radio show, about my Mises Daily article, “Reducing the Cost of IP Law.” The interview is lasts about 35 minutes, and starts at 2:02:36 in the original Jan. 20, 2010 show, which I have trimmed here. Edge conducted an excellent interview–very informed and interesting. And, like many others, he’s come around to the anti-IP position. (See, on this, Have You Changed Your Mind About Intellectual Property?Yet another Randian recants on IPThe Death Throes of Pro-IP LibertarianismThe Origins of Libertarian IP Abolitionism.)

Read more>>

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Nelson Loftin has produced a print version of my recent Libertarian Papers article “Law and Intellectual Property in a Stateless Society” at Lulu.com (Paperback, 44 Pages).

Thanks, Nelson! Or, as IP-libertarians might say, STOP, THIEF! 😉

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From C4SS, based on my interview (KOL 031 | Smash Walls Radio Podcast: Episode 9: Patent Shenanigans). N.b.: I did not say trolls cost $500B a year; but it’s possible the patent system itself does (it’s impossible to know for sure). (Patent Trolls Cost Productive Companies $29 Billion in 2011, Stall Innovation, and Hurt Small BusinessesPatent Trolls Cost The Economy Half A Trillion Dollars since 1990Costs of the Patent System Revisited.)

Patent “Trolls” are Bad. Patents are Worse.

Posted by  on Mar 11, 2013 in Commentary • Comments (5)

While global biotechnology firm Monsanto battled a farmer over soybean patents in the US Supreme Court, a District Court in eastern Texas heard a similar case: Personal Audio, an alleged “patent troll,” filed suit against Adam Carolla’s Ace Broadcasting network for patent infringement.

The patent allegedly infringed? “System For Disseminating Media Content Representing Episodes In A Serialized Sequence.” In other words, podcasting.

Personal Audio has been around since the mid-1990s, and credits itself with inventing the “Personal Audio Player,” a device similar to the iPod and the source of many of the company’s patents, including this one.

“[Personal Audio CEO James Logan] is a small businessman, an entrepreneur, who invested a ton of his money into a startup, who still owns the patent, and is just trying to get compensation for his hard work as an inventor,”the company’s vice president of licensing, Richard Baker, said. “This is what the patent system is for.” According to Baker, Personal Audio is also trying to sell its podcast license to several major and influential podcasts and providers.

“I will say that we’re certainly looking to license this patent beyond those three (companies they’re suing),” he said. “We’ve sent letters to a number of companies that we hope will come to a license with us amicably, without having to resort to litigation.” [continue reading…]

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From StephanKinsella.com:

KOL 031 | Smash Walls Radio Podcast: Episode 9: Patent Shenanigans

by STEPHAN KINSELLA on MARCH 10, 2013

in KINSELLA ON LIBERTY PODCAST

Kinsella on Liberty Podcast, Episode 031.

This is my appearance on the Smash Walls Radio Podcast, Episode 9: Patent Shenanigans, with host Trevor Hultner. We discussed patent trolls, the SHIELD Act, and related matters.

For more on that issue, see Patent trolls as mafioso (and that’s a compliment) and The SHIELD Act doesn’t go far enough: protect victims of all patent aggressors, not just “trolls”.

Read more>>

Update: See Trevor Hultner: Patent “Trolls” are Bad. Patents are Worse.

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Germany may ban Google Maps because of patent infringement

Yet more patent madness: German Court “Inclined” to Ban Google Maps. ‘Nuff said.

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Kinsella on Liberty Interview with Derek Khanna

From StephanKinsella.com:

KOL 030 | Interview with Derek Khanna

by STEPHAN KINSELLA on MARCH 8, 2013

in INTELLECTUAL PROPERTY,KINSELLA ON LIBERTY PODCAST

Derek KhannaKinsella on Liberty Podcast, Episode 030.

This is an interview of Derek Khanna, a conservative/libertarian pro-innovation and pro-free market activist. Khanna was the Congressional staffer who authored a copyright reform brief for the Republican Study Committee (the conservative caucus of House Republicans). The brief was entitled Three Myths about Copyright Law and Where to Start to Fix it, and attacked current copyright law and proposed sweeping, significant changes—reducing statutory damages, expanding fair use, punishing false copyright claims, and significantly limiting copyright terms. The brief was immediately taken down, and Khanna no longer works on Capitol Hill.

Read more>>

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How copyright makes my home stereo sounds worse

The other day I had my A/V guys over to make some adjustments to one of my systems. While there were there I asked them if they could take a look at a problem I’d been having for a while with my family room media system. I have an Anthem two-zone receiver. The first zone drives the TV and the speakers in the family room. Zone 2 drives speakers around the house through a speaker selector box. I often play music via the Apple TV on both zones 1 and 2, all around the house, say, on a Saturday. But I notice an odd echo effect between the sound coming from zone 1 speakers and that coming from zone 2: there is a slight delay, giving it a disconcerting feeling, if you are standing sort of between rooms.

I asked the media guys if there was maybe a polarity problem or an adjustable delay. They said that’s not it. Instead, all the big manufacturers of receivers have gimped their own systems due to copyright enforcement pressure from content companies: zone 1 is digital, but zone 2 has to be analog. What this means is that there is a delay in zone 1 because the DSP takes some time. So the sound coming out of zone 2 is slightly ahead of that coming out of zone 1. I said can I just buy a receiver with two digital zones? Nope, they said–the copyright enforcers don’t want you to be able to just duplicate that signal. So even if I am playing my own CD’s or streaming radio or spotify perfectly legally, I can’t have a device that digitally “splits” the signal to permit me to play it simultaneously on two zones. Instead, I can tap into the inferior analog signal and play it on zone 2, but then there are timing delays between the zones.

The media guys told me there are workarounds but they are complicated and not even guaranteed to work. I could buy some kind of add-on digital delay for zone 2, but the problem is you might never make it match up exactly, and further, the delay from zone 1 DSP varies by the type of music; it’s not necessarily a fixed delay, so there is no easy way to guarantee adding a delay to zone 2 will match it up to zone 1. I suppose I could buy two separate one-zone receivers, have all kinda signal-splitters at the output of my source devices like the Apple TV, but that’s kinda stupid.

Another example of how paying, law-abiding users are harmed by the copyright fascists.

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