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“Ending Copyright Could Save Art & Journalism”

Le sigh. Almost no one can ever get quite right even their criticism of copryight. This guy opposes copyright, because he thinks this would lead to “socialized copyright” and he’s in favor of socialism, just like he’s in favor of socialized medicine. No no no. Because he’s not a libertarian, and thus has no coherent understanding of the function and nature of property rights and justice, and because he’s apparently economically illiterate (otherwise he would not favor socialized medicine), he simply can’t get the analysis right.

But, it’s to his credit he somehow dimly senses that copyright is bad.

Shownotes: “The soapbox I’ve been on for 15 years, now summarized in 17 minutes with clipart. Probably the most important video I’ll ever make. ⚠️ Rough/incomplete math warning. ”

But his argument is totally confused. He wants to “relax” the enforcement of copyright and replace it with an “automated royalty system” “managed” by the government. He proposes we phase out copyright in 5 years—but not patent, trademark, or impersonation rights! (Why not? Patents do even more damage than copyright, you unprincipled hack.)1 And then, you cancel your spotify, netflix, disney.com, and find it all at a government-managed content server, “media.gov,” for free. Wow, the government giving us approved content! What could go wrong?

And the cost is low! He tallies up the cost of all these various services by looking at the revenues of various copyright-related industries: the royalties paid by or costs incurred by Spotify, Youtube, Netflix, Disney, the book publishing industry, to artists and creators, and so on. He comes up with $148B paid out to creators, amounting to $881 for every tax filer annually.

I mean he gets it 10% right or, being generous, 1/3 right. Not bad compared to most people but still… pretty sad. I mean at the end he says he wants a self-driving flying car. Yet he still supports the patent system, which impedes and distorts and blocks and slows down new technological innovations.

One would think a soi-disant “libertarian” would actually read up on, you know, libertarian critiques of IP,2 before weighing in on it in public. But alas, in this Internet age, everyone wants to be an expert without putting in the intellectual work.

  1. Patent vs. Copyright: Which is Worse?” []
  2. See Kinsella, You Can’t Own Ideas: Essays on Intellectual Property: A Skeletal E-book (Papinian Press, 2023); Kinsella, ed., The Anti-IP Reader: Free Market Critiques of Intellectual Property: A Skeletal E-book (Papinian Press, 2023). []
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Nineteenth Century Criticism of the Patent System

Adapted from the notes for “Fritz Machlup, The Patent Controversy in the Nineteenth Century (1850–73),” chap. 7 of Kinsella, ed., The Anti-IP Reader: Free Market Critiques of Intellectual Property (Papinian Press, 2023). [continue reading…]

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Patents and Pharmaceuticals

I’ve discussed in previous writing the harmful effects of patents, for example on the pharmaceutical industry. (See below.)

I just came across a couple of fairly recent pieces on this topic at Mises.org:

Both worth a read.

For some of my own commentary on this, see: [continue reading…]

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Koepsell on IP

My friend David Koepsell, an attorney and philosopher who serves on the Advisory Board of C4SIF, has written and spoken a good deal on patent and copyright. Below I collect some of his essential work in this regard:

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FDA and Patent Reform: A Modest Proposal

Some dashed off comments to some friends. I may clean this up later but for now, the informal comments—

In some of my talks I have made this proposal. Not sure if it’s cockamamie. But here it is:

People say we need patents (for pharmaceuticals) b/c the FDA process is too expensive and you have to recoup your costs. (See Kinsella, “Are Patents Needed to Make Up for FDA Kneecapping?” (July 2, 2011).)

Here is my proposal.

Abolish patents.

Now some company (#1) spends $300M doing trials and getting FDA regulatory approval. This temporary monopoly (even without a patent) lets them charge high prices. It lasts a couple-few years at least, normally.

Now suppose a competitor #2 comes along. They could not afford the $300M investment, or maybe they were just unable to create the new drug. So now they get the FDA approval for a lot cheaper since no clinical trials, no huge R&D cost, etc. Once the FDA ensures drug 2 is chemically adequate and the same as the original, they grant the second FDA approval to #2, but on the condition that they pay a pro-rata share of the total expenses originally incurred, by reimbursing #1 for half the expense #1 incurred but that #2 got to avoid. So basically, #2 pays half of $300M = $150M to #1. So now each one has paid about $150M roughly. [continue reading…]

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From Wendy McElroy, Oct. 8, 2010:
AN INTRIGUING ANTI-IP ARGUMENT
One of the most intriguing arguments against intellectual property — that is, the claim to owning a copyright or patent on any basis other than contract — was first presented to me by the science fiction writer Victor Koman. It is simple but profound. Read more>>
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Wendy McElroy, “Copyright and Patent in Benjamin Tucker’s Periodical,” Mises Daily (July 28, 2010), was first published as “Intellectual Property,” in Wendy McElroy, The Debates of Liberty: An Overview of Individualist Anarchism, 1881–1908 (Lexington Books, 2002). The Mises Daily version omitted the endnotes in the book chapter, which contain useful information (it also omitted some italics formatting). I have reprinted below the Mises Daily article, with the missing endnotes and formatting added. See also my post “Benjamin Tucker and the Great Nineteenth Century IP Debates in Liberty Magazine.” [continue reading…]

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In Alex Tabarrok’s recent post End Software Patents! (see video below), he argues against software patents. He states:

In an industry like pharmaceuticals, patents make sense. It costs about a billion dollars to develop the average new drug. But a generic imitation might cost just 50 cents a pill. If innovators are not able to recoup their costs of research and development, there’ll be no one left to innovate. But does every innovative idea need a 20 year monopoly? A concept like one-click shopping does not have the same sunk costs of research and development as does a new drug. In industries like software, where innovation costs and imitation costs are more balanced, patent protection isn’t needed to incentivize innovation.

[continue reading…]

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CC0
To the extent possible under law, Stephan Kinsella has waived all copyright and related or neighboring rights to C4SIF. This work is published from: United States. In the event the CC0 license is unenforceable a  Creative Commons License Creative Commons Attribution 3.0 License is hereby granted.