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From the great Rick Falkvinge. For related see Intellectual Poverty, Are Patents “Monopolies”? and Intellectual Properganda.

Language Matters: Framing The Copyright Monopoly So We Can Keep Our Liberties

George Orwell was scaringly right in many ways, but one of his most overlooked points is one of the most important. The language we use defines our reality and what problems we perceive, communicate, and solve. From theft of intellectual property to sharing culture and knowledge, it’s a war of words.

“1984″ by George Orwell is a book that seems to increasingly define our society, mixed in with a dash of Aldous Huxley’s Brave New World. One central theme to 1984 is the concept of Newspeak – but the language Newspeak never takes center stage in the book, it is just pervasive throughout the storyline.

copyright-brandedThe concept of Newspeak was simple. By taking away the expressions for free thinking and challenging authority from the language, the people in power would remove other people’s ability to conceptualize those thoughts, and thus ensure obedience.

In one passage in the book, translators of Oldspeak into Newspeak say they have a trouble with translating the Declaration of Independence into Newspeak – there is simply no way to express what it says in Newspeak. Orwell comments on this in an appendix: as long as the language has words for rebellion, freedom of thought, and dissent, then society will eventually throw off any tyrant.

This matters, because the words we use define the society we live in. That definition of society, in turn, decides what problems need to be solved and how. We are nerds and geeks; we tend to not bother with subtleties and nuances of communication, except to be technically precise in what we express. But all words have values to them. Some are negative, some are positive. Some have double meanings. Some evoke feelings of happiness, others of discomfort. Being aware of this as you discuss net liberty and culture today is paramount to the discussion – the side that wins the definitions, wins the long-term war.

It is not a coincidence that the deceptive term “Intellectual Property” has been relentlessly used by the copyright industry. They are trying to get others to use it. They are trying to make it define the copyright monopoly; to make people think of their monopoly in terms of property. Property is a positive word, and it follow-up-defines any violation of those monopolies as stealing (as violation of property rights is stealing). Don’t ever fall for using this term. Not once, not ever.

The way to spread your own framing of the world is not necessarily to correct others in their use of language – that would only seem rude. Rather, we use our own language consistently, persistently, and tenaciously. We use our language that defines the world of the net generation the way we see it, and in a way that doesn’t give influence to the copyright industry.

Every time you repeat a term of the adversary’s worldview, you help them take away your rights. Every time you use one of the terms that define our worldview, you help the net generation retain their civil liberties. People will copy your terms subconsciously. Be happy when they do, but don’t point it out. Again, that would be rude.

Here’s a sample of words to be conscious of:

Copyright industry – use this consistently instead of record industry and/or film industry. It highlights how the middlemen incumbents are monopolistic parasites that aren’t necessary for the cultural ecosystem, having industrialized lobbying for their monopolies and cashing in on them, and the term sticks very well.

Sharing knowledge and culture – use this instead of “file-sharing”. The “file-sharing” term tends to be too technical, and doesn’t appropriately convey the usefulness of the act. Also, “sharing knowledge and culture” is fundamentally positive to anybody who hears it – plus, it is technically correct. People who share knowledge and culture should never be punished, they should be rewarded.

Copyright monopoly – don’t ever use “copyright” alone. When you do, you will reinforce that it is a right of some kind, like the right to freedom of speech. In reality, it is a monopoly. While a somewhat clumsy term, it is necessary at this stage to communicate that the copyright monopoly is just that, a monopoly. Use language to tie the concept together with its nature to people who haven’t seen it as such yet.

Patent monopoly – Same thing there.

Industrial Protectionism – don’t ever use the IP term that reads out as some kind of “property”. That’s self-defeating. If you cannot escape using the IP term (which you should, as it lumps completely unrelated laws together) then take care to read it out as “Industrial Protectionism”. It’s what it is, and the value of the word protectionism is sharply negative.

Manufacturing copies – try avoiding “downloading” copies of something. That implies “taking”, and leads down the wrong line of thought. What people are doing aremanufacturing copies using their own raw materials, and it highlights how the copyright monopoly is trying to restrain a legitimate activity. Say “when people are manufacturing their own copies of knowledge and culture”, if you can’t highlight the process of “sharing knowledge and culture”.

Digital Restriction Mechanisms – DRM. No comment necessary. Read it out as Digital Restriction Mechanisms. (Some have used “Management” for M. That is a positive word that dilutes the negative “Restriction”; I prefer Digital Restriction Mechanisms.)

There are many more examples, but these are a starter. Remember that the side that wins the language wins the definition, and take time to judge the subtleties of how language defines and shapes the problem we discuss.

About The Author

Rick Falkvinge is a regular columnist on TorrentFreak, sharing his thoughts every other week. He is the founder of the Swedish and first Pirate Party, a whisky aficionado, and a low-altitude motorcycle pilot. His blog at falkvinge.net focuses on information policy.

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Evangelization vs. Copyright

Thought-provoking piece by Jeff Tucker:

Evangelization vs. Copyright

by Jeffrey Tucker

Brandon Vogt really liked the new papal encyclical but noted that the Vatican only made it available in HTML. So he worked to convert it to PDF, epub, Mobi, and more, and then he gave away these formats on his website.

Perhaps he was inspired by the message: “The transmission of the faith not only brings light to men and women in every place; it travels through time, passing from one generation to another. Because faith is born of an encounter which takes place in history and lights up our journey through time, it must be passed on in every age.”

Whoops. Both the Vatican and the USCCB wrote to demand a takedown. Clearly, Vogt was “stealing from the Pope” (really? I don’t think making other formats available causes the text to be mystically removed from the Vatican website). Also, he was accused of “violating the civil law.” Perhaps, but the Church does not need to take recourse to civil law — a law that restricts information flow by assigning legal right of ownership to the expression of ideas. The Church can easily publish into the commons, as millions of others do today as a way of avoiding restrictive state laws.

Multinational copyright enforcement is a legal invention of the late 19th century. It serves to block the light of truth. This is a great example of that. Thousands, maybe millions, who would be able to obtain the encyclical on their ereaders will now not be able to — at least not until it is published by the state-protected monopoly agent. That’s just a very strange way to go about distributing light and truth.

When faced with the question of whether to impose and enforce copyright over core Catholic texts, one might ask the question that was popular among the teen set a few years ago: What Would Jesus Do?

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How long copyright terms make art disappear

[From my Webnote series]

Good post by Cory Doctorow illustrating how copyright is a type of censorship—in this case, it suppresses the dissemination of books caught in the copyright “black hole” as a result of the combination of copyright terms, the orphan works problem (which is a result in part of the lack of a requirement for copyright registration formalities and renewal requirements).1 But notice that Doctorow—who does not oppose copyright per se2  —blames this on “long copyright terms” instead of copyright itself. This is akin to people who favor a “modest” minimum wage of say $10/hour but who would not favor a $100 minimum wage because they know that it would cause severe unemployment; a small amount of unemployment is tolerable, however. Likewise, even if copyright terms were shortened, the damage done by copyright would be reduced, but would still be real. The problem is not long copyright terms; it is copyright itself.

How long copyright terms make art disappear

 at 10:57 am Fri, Jul 5, 2013

Jill sez, “Exciting study samples new books for sale by Amazon and asks: Why are there three times more books initially published in the 1850’s than books from the 1950’s? The chart on page 15 is eye-popping, showing graphically decade-by-decade how many more new books initially published before 1923 are currently available than those published after 1923 [the magic public domain date]. The music and YouTube data are also compelling!”

How Copyright Makes Books and Music Disappear (and How Secondary Liability Rules Help Resurrect Old Songs)

Jeff Tucker, by the way, discussed this over a year ago, in Market Failure? The Case of Copyright (2), in which he observed that:

There was a brief moment in the early days of Google when the company naively imagined that it could do the right thing and make all of this literature available for instant viewing and printing. They had the technology to rescue it all and bring it to the whole world. Publishers, backed by regulations that favor them, went bonkers. Google tried a profit-sharing agreement. Didn’t work. Finally, Google bailed and cooperated with the prevailing system.

The results you see in this graph. There is an 80-year black hole in which literature is being buried. In some ways, a whole century of ideas is being forced under a rock by government in league with large publishers. And it is getting worse by the day. Publishers are going through their back catalogs and threatening anyone who puts even a scrap online. Not that they plan new editions; they are just claiming what they think of as their assets.

This is a case of incredibly tragic loss. As you can see from the above chart, the literature of 1850 is more available than the literature of 1970. How preposterous is that? This is all a direct result of unprecedented, outrageous regulations that have effectively put a censorship veil over history’s most-productive period of literary creation. This entire world is trapped in libraries that no one visits or is being put on remainder racks so that libraries can create more space for coffee bars.

There is a more general lesson that pertains to all government regulations. Even one line can be impossibly damaging to industry and to social advancement. It is extremely difficult to quantify the losses. This is just one case, but it is an important one because it deals with the most important thing any civilization possesses: its treasury of ideas. That treasury has been thrown to the bottom of the sea. Someday, explorers will discover it and wonder how any society could have let this happen even though it had the means to do otherwise.

  1. First Amendment Defense Act of 2021. [↩]
  2. See Cory Doctorow, Victim of Fox Copyright Legal Bullying, Should Take A Stand Against Copyright;  Paley & Doctorow argue over Non-Commercial licenses.  [↩]
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From Rick Falkvinge at Torrent Freak:

The Copyright Monopoly Was Always Intended To Prevent Freedom Of Expression

As I was explaining the need for copyright monopoly reform in Dublin this week, an elderly gentleman red-faced with rage exclaimed in the Q&A session that the copyright monopoly was absolutely crucial for freedom of expression. It surprises me that some monopolists still have things this backwards: the monopoly was always a gag on freedoms of speech and expression. copyright-branded

When Queen Mary I created the copyright monopoly onMay 4, 1557, it was a purebred censorship mechanism: in exchange for a lucrative monopoly on printing, the London Company of Stationers agreed to let anything printed first pass by the royal censors.

This was the norm for a long time in England, and the monopoly has been used to prevent freedom of speech since, with the exception of 1695-1710, as the monopoly did not exist during those fifteen years.

The examples are plenty of how the copyright monopoly has been used as a bludgeon against freedoms of speech and expression. From the landmark court case in 1765, when the Entick vs. Carrington case determined that authorities had no right to quell free speech unless the method used is specifically enabled by law, right up until modern times when the Finnish oil company Neste Oil disgracefully used the copyright monopoly to kill a legitimate Greenpeace protest site against the oil company (by threatening to sue the Internet Service Provider, to boot, and not Greenpeace directly).

The fact that the copyright monopoly is a limitation on freedom of expression, and therefore an interference with fundamental human rights, has even been confirmed recentlyby the European Court of Human Rights.

And yet, when you outline this very clear picture, some dinosaurs will insist that the freedom of expression only covers “your own” expressions, and not “other people’s” expressions, in an attempt to defend the legitimacy of the copyright monopoly. This is hogwash of the lowest conceivable quality. There is no such thing as “other people’s expressions” that aren’t covered by freedom of expression when I repeat them in a message of my own.

When I sing “Happy Birthday” to somebody, that is quite obviously a message of my own aimed at somebody having a birthday, despite my singing that song being an illegal violation of the copyright monopoly. It is therefore trivial to see how the copyright monopoly is an illegitimate limitation on freedom of expression.

Oh by the way, the Q&A session in Dublin ended well: after the elderly enraged gentleman had tried to “correct” my highlight of the need for copyright monopoly reform by reciting the entire arsenal of commonly-debunked arguments of the copyright industry, a younger professional took the microphone and calmly explained how pretty much every view I had expressed was perfectly in tune with his generation’s values. Everybody in the room took careful note.

About The Author
Rick Falkvinge is a regular columnist on TorrentFreak, sharing his thoughts every other week. He is the founder of the Swedish and first Pirate Party, a whisky aficionado, and a low-altitude motorcycle pilot. His blog at falkvinge.net focuses on information policy.

Book Falkvinge as speaker?
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On This Week in Law #213, the hosts were discussing DRM and the upcoming X-Box One, and speculation, based on a Microsoft patent, about whether that system might move away from standard DRM to  “visual DRM“—an Orwellian system where the Kinect looks around the room with its camera, counts the number of people watching a movie being played, and asks for greater fees if it determines there are “too many” people in the room for a standard consumer/home license (go to around 1:05:13 for the beginning). Peter Biddle of Intel then mentions an experience he had years ago with secure digital music industry (SDMI)  people  trying to implement some kind of DRM for music similar to that used for DVDs and movies. He got frustrated and sarcastically suggested that the group lobby Congress to enact a law requiring every citizen to have a neural shunt embedded into the base of their neck to shut off the person’s eyes and ears when the device detects that they are observing watermarked content that they don’t have a license to watch or listen to. Instead of laughing at the absurd joke, or expressing dismay at the utter evil of this proposal, it generates a buzz of excitement among the music executives, and one of them asks, “can you do that?”

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My IP Odyssey

[Update: see various biographical pieces on my publications page, including Alan D. Bergman, Adopting Liberty: The Stephan Kinsella Story (2025).]

I became libertarian in 1982, as a junior in high school, after reading Ayn Rand’s novels and nonfiction books. (See more biographical material here.)

A few years later I was in law school and a nascent anarchist and Rothbardian, having by this time rejected Rand’s attacks on libertarianism and anarchism. And I had always had qualms about her pro-IP arguments.1

And then in 1992 I started practicing law and soon started specializing in intellectual property and patent law. Hey, that’s where the money was. At the same time, I was starting to publish on various libertarian legal theory issues, such as rights theory. Naturally, given my chosen specialty and my interest in libertarian theory, my interest turned to the IP issue. I had tried for years to find some way to justify patent and copyright law, but by the time I finally started practicing and had passed the patent bar (1994), I had pretty much become a total IP skeptic. I started publishing articles critical of IP around that time, such as my “Letter on Intellectual Property Rights,” IOS Journal 5, no. 2 (June 1995), pp. 12-13, and my “Is Intellectual Property Legitimate?” Federalist Society IP Practice Group Newsletter (Winter 2000),2 and then In Defense of Napster and Against the Second Homesteading Rule, LewRockwell.com (September 4, 2000) and “Against Intellectual Property,” Journal of Libertarian Studies (Spring 2001), which won the Mises Institute’s Alford Prize.3

At first I was leery of admitting, as a “respectable” big-firm and IP lawyer, my growing libertarian and anti-IP radicalism. I was worried clients or bosses or partners would not like it. But I gradually realized: none of them care. They just want lawyers who are competent; they don’t care about your personal politics. You want your airplane pilot and your brain surgeon to be competent, not of the same political persuasion as you. So gradually I shed my initial reluctance to reveal my views. In fact I still get contacted by people who want me to help them with patent law or other IP law issues—they don’t care that I hate patents and want the law changed; they seem to assume that I must know my stuff if I am so passionate about it. Odd (but rational, I think).

As I have often mentioned, IP was never my primary interest, either as a lawyer or libertarian theorist. As a lawyer, I enjoyed other types of law more—oil and gas law, international law, even family law (wills, adoptions, name changes, etc.)—but went into IP because in the mid-90s as a young electrical engineer-background lawyer, there was an intense and growing demand in patent law for such highly specialized and technically trained attorneys. Plus, patent law  is a national rather that state-based field of practice, which provides more interstate mobility; you are not locked into one state’s legal system, as you might be in fields like family law, oil and gas law, tort law, and so on. And in terms of libertarian theory, I focused on IP only because the issue nagged at me and I felt I had to figure that issue out and get it out of the way; but I was always more interested in other topics, like philosophy in general, epistemology, rights theory, contract theory, aspects of property theory, Austrian economics, and the like. But of course, as one of the few libertarians with a deep knowledge of IP law, over the years, ever since 2005 or so, whenever I am asked to give a speech or interview or contribute an article, the most requested topic is IP.

I initially felt a tug of annoyance at this pigeon-holing, but finally got over it, for a couple reasons. First, I’ve become convinced that IP is not a marginal issue; that is is one of the top 5 or 6 evils the state foists on us, and crucially important to get this right and to help libertarians, at least, to understand this. (“Where does IP Rank Among the Worst State Laws?“) Second, I’ve discovered that sorting all this out requires one to carefully think about and refine one’s thought on a host of related issues, from the nature and purpose of property rights to issues like fraud, defamation, anarchy vs. minarchy, legislation vs. common law, and contract theory.

So, I guess the IP issue is here to stay—until we can abolish it, that is.

  1. Some of this is detailed in “How I Became A Libertarian,” in Legal Foundations of a Free Society. Some people reading this may also be interested in my posts New Publisher, Co-Editor for my Legal Treatise, and how I got started with legal publishing and Advice for Prospective Libertarian Law Students. [↩]
  2. This article was based on a version previously published in the Pennsylvania Bar Association Intellectual Property Newsletter 1 (Winter 1998): 3, a newsletter I founded in 1997. [↩]
  3. See also Roderick Long Finally Realizes IP is Unjustified. [↩]
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“Around this time I met the Galambosian.”

Tuccille, It Usually Begins With Ayn Rand [From my Webnote series]

Related

A great anecdote from Jerome Tuccille’s hilarious It Usually Begins with Ayn Rand, about one of the stranger kooks in the libertarian movement, Andrew Galambos.1 I quoted this way back in the Summer 1998 issue of the Pennsylvania Bar Association IP Law Newsletter (which I founded in 1997):

 Around this time I met the Galambosian.

“I am a Galambosian,” he said.

A what? I was beginning to feel like a right-wing Yossarian. All these mothers were out to destroy every principle I believed in! If it wasn’t squarejawed Southwesterners with mixed premises, or Ivy League intellectuals who mouthed off in public like truck drivers, or shifty-eyed carny barkers from the Middlewest, it was an S. J. Perelman character with a pipe and an ascot, telling me he was a Galambosian.

“What the hell is a Galambosian?”

There was this individual, it seems, named Joseph Andrew Galambos who evolved a theory of “primary property rights.”2 Apparently, as soon as someone came up with a new idea—whether an invention or an original philosophical concept—the prototype belonged irrevocably to him and was to be regarded forevermore as his primary properly. Somewhere along the line Galambos picked up the notion that Thomas Paine had invented the word “liberty,”3 whereupon he established the Thomas Paine Royalty Fund, and every time he gave a lecture and used the word “liberty” he dropped a nickel into his fund box as a royalty payment to Tom. How he determined that a nickel was the proper measure of homage to Mr. Paine, I have no idea. Legend even had it that Galambos was still diligently searching for Thomas Paine’s descendants so he could turn over moneys due their famous ancestor.

Sometime in the early or middle 1960s, Galambos decided that his name, Joseph Andrew, was actually the primary property of his father. In order to avoid giving his father a royalty payment every time he spoke the name, Galambos reversed the order and sent out notices to all his friends that henceforth his name was Andrew Joseph, and that he was to be addressed as Andy, instead of Joe.

“There are five legitimate functions of government,” said the Galambosian.

“No kidding. What are they?”

“I am not at liberty to say. The theory was originated by Andy Galambos and it is his primary property.”

The Galambosian also informed me that Andy had been introduced to Ayn Rand several years before, and that after five minutes of conversation they had pronounced each other insane.

“Of course, it is Miss Rand who is really insane,” said the Galambosian.

“Why is that?”

“I’m afraid I cannot tell you. The reasoning behind that theory belongs to Andy.”

The most peculiar thing about the whole Galambosian concept was the impossibility of finding out anything about it. Galambos’ disciples were not at liberty to disseminate his philosophy without paying a royalty to their leader—who could not even waive payment, since primary property was an absolute good and could not be given away. You were stuck with it whether you wanted it or not, throughout eternity. Consequently, all the converts were those proselytized by Galambos himself—a time-consuming and self-restricting process, it being physically impossible to convert more than a handful of people at a time.

“If the rest of us were free to discuss his ideas,” said the Galambosian, “there is no question in my mind that Galambosianism would spread throughout the world like wildfire.”

  1. For more on Galambos, see Galambos and Other Nuts; Galambosian IP Recursion; Shades of Galambos; Against Intellectual Property, p. 27). [↩]
  2. Which he arguably “stole” from one “Stanislas de Bouffler,” haha! Was Galambos an IP Thief? [↩]
  3. See Galambos on Paine.  [↩]
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From Karl Hess and Robert Anton Wilson Discuss Everything, a Q&A session at a 1987 Libertarian Party convention, an audience member asks them about their opinion on “so-called intellectual property rights,” and Apple’s assertion of IP claims over its computer systems (at 1:13:53).

Hess first replies that he thinks IP rights are “difficult to enforce” and Wilson adds that “they’ll become impossible to enforce very shortly.”

There is then this interchange between Hess and the audience member:

Hess: “They’ve always been sort of crazy, they protect the person who gets there first. … It’s been my understanding all along that libertarians were glorified … by the fact that they very early on had attacked the copyright laws.”

Audience member: “But you’re both authors.”

Hess: “Yeah, sure, … maybe [the copyright laws] protect us in some technical sense, but I’d be happy to sell things in a free market.”

Audience member: “Would you mind if I took Death of Politics and sold it to make a profit without cutting you in?”

Hess: “People are doing it all the time. Look, I made money off that. I mean I figure, somebody bought it, it’s not mine anymore. … And people do it. People do it constantly. And I think it’s fine …  If I were asked to do it again today, I’d say I’ll do it on the condition that a lot of people read it. And this … may help it.”

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Dante’s Divine Comedy and Intellectual Property

Interesting article at Strike-the-Root by Lawrence Ludlow, Dante’s Divine Comedy and the Divine Origins of the Free Market, which makes some interesting connections between Dante’s Divine Comedy, the free market, and (anti) intellectual property theory. An excerpt:

In short, Virgil asks Dante to abandon his outmoded economic paradigm of command-and-control economics, where the Diktat of economic viziers can only derail the spontaneous order of things and undermine the natural benefits of a free market. Virgil is telling Dante that the wealth created by the free and spontaneous order is as abundant as the divine light emanating from the sun. One person’s enjoyment of it does not subtract from the enjoyment of another. And please, let’s not over-extend the metaphor by talking about shadows cast by individuals positioned more closely to the sun! We must assume that Dante is referring to a divine sunlight that probably does not cause cancer either! In an analogous way, Stephan Kinsella’s path-breaking work “Against Intellectual Property,” demonstrated that the concept of intellectual property (IP) is inappropriate for a similar reason.

Divine Sunlight, Intellectual Property, and Love

The shared understanding of a concept among more than one person merely expands with the number of people who share that concept. When greater numbers of people appreciate the concept of a wheel and the advantages that a wheel brings to the art of transportation, the sharing of this concept among many minds does not dislodge it from the mind of the person who originally conceived it. One person’s grasp of a concept does not subtract from another’s. In other words, there is no scarcity in the realm of understanding just as there is no scarcity in the availability of divine sunlight to all who are illuminated by it. That is why the concept of IP is an anti-concept and quite destructive. As Kinsella has shown, the concept of property rights was developed to resolve conflicts of ownership that apply to real, or physical, property – not intellectual concepts. Only physical property is afflicted by the burden of scarcity because the limitations of its physical nature imply that it cannot be simultaneously employed by more than one person. In other words, one cannot have one’s cake and eat it, too. But this concept does not apply to intellectual knowledge – which like the sunlight described by Virgil, shares a quality in which “the blaze of Love is spread more widely, the greater the Eternal Glory grows.”

As much light as it finds there, it bestows; (Verse 70)
thus, as the blaze of Love is spread more widely,
the greater the Eternal Glory grows.

As mirror reflects mirror, so, above, (Verse 73)
the more there are who join their souls, the more
Love learns perfection, and the more they love.

In addition, we can perceive here the overwhelming importance of love in Dante’s exposition. Just as the divine sunlight described by Dante’s Virgil is not diminished by its ability to illuminate many darkened minds, and just as Kinsella’s rejection of intellectual property and replacement of that anti-concept by the concept of shared knowledge demonstrates the undiminished capacity of a shared idea to transform countless lives for the better, love itself does not diminish in proportion to its being shared. Instead, it increases and grows tremendously in its impact. This is a powerful message, and it is one we should all consider deeply. From an anarcho-libertarian perspective, the writer Glen Allport has explored the importance of love as a means of emotional connection in his many valuable essays at Strike The Root – most particularly in The Doctrine of Love and Freedom. While I frequently fail in my attempts to incorporate Glen Allport’s approach in my sometimes-snarky essays, these failures cannot diminish the intrinsic value of the important message of free markets or the equally valuable message of love. I hope that this essay does much to make up for the deficit – shortening my own future journey through Purgatory.

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Does Innovation Require the Patent Office?

From Jeff Tucker at Laissez Faire Today:

Does Innovation Require the Patent Office?

 · 

 Two years ago, I spoke to a gentlemen who had started and sold four companies. He was currently working on a new project that sounded very promising (for all I know, he has already sold that one too). We had just heard a talk in which the speaker told people that the whole key to business success in our time is patent ownership. Without it, no business can really succeed.

So I asked this gentleman what he thought of the talk. His response was quick (I paraphrase here):

“I’ve never once bothered with patents. They are expensive and pointless. They produce no revenue on their own. They sell no product or service. And they harm development by hemming in a company on a preset track. I need to be able to customize offerings and change what we do day to day. Patents bias a company toward old solutions even when they don’t work anymore.”

That’s an interesting perspective. And it raises the question: How much do patents have to do with innovation in the real world?

As much as we hear about patents, we might suppose there is some sort of direct link between them and the innovations we enjoy in our lives. Someone invents something and shows the plan to a bureaucrat. The exclusive license is issued, and away we go.

Economic historians have usually assumed a direct link between patents and innovation, basing much of their chronicle of history on records at the Patent Office. Much of what we think we know — that Eli Whitney invented the cotton gin, that the Wright Brothers were first in flight, that Thomas Edison holds the record for inventions because he has the most patents — comes from these records.

But is it true? Most patent holders assume so. They cling to them as a source of life and defend them against all encroachment. Some businesses build up their war chests with patents as purely defensive measures. The more you own, the more you can intimidate your competitors to stay out of your territory.

So how important are patents in generating innovation? The answer is not much, according to four economists from the Technical University of Lisbon. They are circulating their research on a platform sponsored by the St. Louis Federal Reserve. They looked at the best innovations between 1977-2004, as listed by the R&D awards in the journal Research and Development. They matched 3,000 innovations against patent records to establish the relationship.

Their findings are remarkable: Nine in 10 of the innovations were never patented. They were just created and marketed, and changed the world. In other words, it’s the market, not the bureaucracy, that innovates. The authors grant that there might have been downstream versions of the same innovations that were patented. But that fact actually doesn’t change the implications of the study, namely that there is no relationship between the existence of the Patent Office and direction and pace of innovation.

As you dig through their citations, you find other nuggets of information. It turns out that other researchers have found the same thing in early parts of the 20th century and even all the way back to the middle of the 19th. The results keep coming up the same way: There are patents and there are innovations, but they have little or nothing to do with each other.

Read more>>

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From the Insurance Journal, more depressing evidence about the baleful effects of the anti-competitive, anti-property rights fascist patent system:

Patent Claims Causing Firms to Exit Business Lines: Study

May 6, 2013

Patent demands are taking a big toll on technology companies, with results that range from forcing companies to tweak their products to exiting their business altogether, according to a study from the Santa Clara University School of Law.

The study underscores the increasing difficulty of dealing with patent claims. Patents have become a major part of business strategy, with companies like Apple and Samsung battling each other in courts around the world in cases that could result in hundreds of millions of dollars in damages.

The SCU report, “Best Practices in Patent Litigation Survey,” focuses on patent demands from companies that do not themselves make anything. The report calls them “patent assertion entities.”

Many detractors call them “patent trolls.”patented stamp

While PAEs have a bad reputation among technology firms, many patent litigants who do not make products or develop technology think of themselves in a better light. Many of them represent inventors, sometimes university researchers, who cannot afford to defend patents on their own.

Colleen Chien, an assistant professor of law at SCU, surveyed 116 in-house counsels, largely representing technology companies with more than $100 million in annual revenue.

More than 90 percent reported that patent claims from PAEs had affected them financially or distracted from their core businesses.

More than 80 percent said their customers had received PAE demands because the customers used or implemented products that were accused of violating a patent, and almost 40 percent said the claim had resulted in a change to the product.

About one-quarter of the companies surveyed said claims from PAEs lost them revenue or customers, or caused a delay reaching an operational milestone. About 12 percent said they had to tweak their business strategy as a result of a claim.

Around 8 percent said claims had caused them to delay hiring, or to exit a business line or business altogether.

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From MacRumours:

EU Antitrust Ruling Says Google Abusing Patent Position in German Lawsuit Against Apple

Monday May 6, 2013 7:01 am PDT by Eric Slivka

apple_google_logosThe New York Times reports that Google and its Motorola Mobility unit have been found to be abusing their patent dominance in 3G wireless networking technology by the European Commission. The ruling, which comes in the form of a preliminary finding that could lead to formal antitrust charges but has yet to do so, addresses Motorola’s efforts to bar European sales of Apple’s 3G mobile devices over infringement of “standards essential” patents that Motorola is required to license under reasonable terms. Apple did briefly pull a number of devices from its German online store in February 2012, but they quickly returned after an injunction was lifted and Apple later won long-term protection from sales bans while its appeal in the case is heard. The European Commission’s report today calls Motorola’s efforts to enforce a sales ban based on these standards essential patents “an abuse of a dominant position prohibited by E.U. antitrust rules.”

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As I’ve noted in previous threads, this is an example of the insane, mutually conflicting policies of national governments. On the one hand, they enact antitrust statutes to penalize private “monopolies,” even though the only real monopolies that are possible are those created by the state. Then, they create these monopolies by way of patent grants. They thus set up a “tension” between competing government “policies,” and this has to be “balanced.” Hey, I’ve got an idea—get rid of both patent law and antitrust law.

For more, see:

This type of schizophrenic behavior by the state is not limited to patents vs. antitrust law. It manifests itself in myriad was, e.g. the “tension” between copyright (and patent) and the first amendment (Blackmail, Copyright, Libel and Free Speech; Copyright Censorship versus Free Speech and Human Rights; Excessive Fines and the Eighth Amendment; Copyright is Unconstitutional), and other cases, e.g. Patents and Pot: Feds’ patents say medical marijuana is good, drug war disagrees.

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Great find by David Koepsell: A book published in 1869, Recent Discussions on the Abolition of Patents for Inventions in the United Kingdom, France, Germany, and the Netherlands: Evidence, Speeches, and Papers in Its Favour: With Suggestions as to International Arrangements Regarding Inventions and Copyright, ed. by Robert Andrew Macfie (London: Longmans, Green, Reader and Dwyer, 1869; free epub and pdf download).

Too bad they didn’t win the day. And too bad none of the modern statesmen or mainstream scholars will even consider patent abolition, as opposed to tepid reform.

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