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Kinsella on Adam vs the Man: Copyright and Neo-Mercantilism

Earlier today I appeared on Adam Kokesh’s show Adam vs. The Man (see embedded video below). We discussed U.S. Copyright Czar Cozied Up to Content Industry, E-Mails Show and related issues such as neo-mercantilist aspects of modern patent and copyright law (discussed in my post Rothbard on Mercantilism and State “Patents of Monopoly”).

This is the new, 3.0 version of Adam’s show. The previous version was carried by RT (Russia Today). I appeared a couple times on the 2.0 show–On Adam vs. The Man re Drug Patents and Adam the Man vs. IP. Adam’s new format permits longer interviews for more in-depth discussion.

[Podcast at KOL107]

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Andrew Torrance: Patents and the Regress of Useful Arts

As noted previously, I was on the IP panel of the Open Science Summit last weekend. I was please to meet co-panelist Andrew Torrance, a law professor at the University of Kansas School of Law. My presentation was libertarian and theoretical, while his was empirical. He presented the results of a complicated and detailed simulation he did to test the effect of patent law on innovation.

The results of his study are fascinating. They are presented in his 2009 paper Patents and the Regress of Useful Arts. Abstract:

Patent systems are often justified by an assumption that innovation will be spurred by the prospect of patent protection, leading to the accrual of greater societal benefits than would be possible under non-patent systems. However, little empirical evidence exists to support this assumption. One way to test the hypothesis that a patent system promotes innovation is experimentally to simulate the behavior of inventors and competitors under conditions approximating patent and non-patent systems. Employing a multi-user interactive simulation of patent and non-patent (commons and open source) systems (“The Patent Game”), this study compares rates of innovation, productivity, and societal utility. The Patent Game uses an abstracted and cumulative model of potential innovations, a database of potential innovations, an interactive interface that allows users to invent, make, and sell these innovations, and a network over which users may interact with one another to license, assign, infringe, and enforce patents. Initial data generated using The Patent Game suggest that a system combining patent and open source protection for inventions (that is, similar to modern patent systems) generates significantly lower rates of innovation (p<0.05), productivity (p<0.001), and societal utility (p<0.002) than does a commons system. These data also indicate that there is no statistical difference in innovation, productivity, or societal utility between a pure patent system and a system combining patent and open source protection.

He describe this also in his Google TechTalk, “The Patent Game: Experiments in the Cathedral of Law”:

Torrance’s simulation indicates that a society with no patent law would have more innovation than one with patent law. What is interesting is Torrance said that when he began this project he fully expected the simulation to show the opposite: to vindicate the legitimacy of patent law. In this, he is similar to Boldrin and Levine, authors of Against Intellectual Monopoly, who began their empirical study of patent law expecting it justify it, but ended up completely opposing patent and copyright law (Boldrin discusses their change of heart in the podcast mentioned in EconTalk Podcast on IP with Michele Boldrin).

Yet another nail in the IP coffin. (See also my post Yet Another Study Finds Patents Do Not Encourage Innovation.)

[continue reading…]

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Classificationism, Legislation, Copyright

[From my Webnote series]

Ideally law ought to be developed in a decentralized fashion by judges, juries, arbitral tribunals applying developed legal principles based on libertarian ideas about justice and property rights, to new disputes and fact situations.1 This was the basic model of the two grand legal systems in history: the Roman law, and the English common law. Better yet if the state were not involved, but in any case, an decentralized, caselaw, organic system is to be preferred.

But we have a system now dominated by legislation, by statutory law. The Roman law was codified legislatively by Napoleon and others, resulting at first in elegant civil codes enacted by legislation and backed by the force of the state. This enshrined legislation as the supreme source of law–legal positivism.2 These are the continental legal systems, the so-called civil law. In the meantime even the relatively propertarian and elegant civil codes have been swamped by a deluge of inelegant artificial and special-interest favoring legislation. Meanwhile the English common law has also been gradually submerged in a flood of English statutes. The US English-influenced common law system has also become steadily dominated by state and federal statutes. This should be no surprise given that the fount of our law is the Constitution, itself nothing but a statute, a piece of legislation. Sure, the Constitution as legislation is broader and more general and aspirational than most modern specialized statutes, which means that it is vague and ambiguous and subject to arbitrary interpretation–and since it is the state’s courts that interpret it, this means that it will be construed over time to grant more and more power to the state.3 Don’t fool yourself: the Constitution is nothing special, and is not libertarian. It’s just a cover for a centralizing power grab.4

When you get legislation law is divorced from justice. In a normal dispute, a case before some judge or tribunal, the court can attempt to “do justice” and find the right answer by appeal to developed legal principles and even abstract principles of justice.5 In such a system, it is at least possible for the legal principles that develop to be internally consistent–as the judge seeks to reconcile his decision with previous precedent and developed law–and to also be compatible with justice, since that is the purpose of such a dispute resolution proceeding. The law grows like a coherent crystalline structure on a substrate of justice and libertarian property rights. This is even true to some degree of civil law systems, even though they are based on legislated codes, since they are themselves elegant codifications of legal principles developed in decentralized form in the Roman law system. This is why scholars are able to speak  metaphorically of the legal principles staked out by articles of a civil code as embodying a

plasma that bathes and nourishes an entire code and its institutions. The obligations articles are traditionally rich in analogies, making them, in Portalis’ famous phrase, “fertile in effects.”6

But when law becomes dominated by legislation the judges’ job becomes merely to interpret words–words that have no necessary connection to justice; words of a statute decreed by a committee of corrupt, power-hungry political elites; a statute that embodies conflicting compromises and that has provisions not even guaranteed to be internally consistent, much less consistent with other statutes. For example, the Constitution itself is incoherent (it does not authorize censorship yet provides limits on what and how the state can censor; it does not authorize federal eminent domain yet places due process and compensation limits on this nonexistent power; it recognizes free speech rights yet authorizes the censorship of copyright) and contains ambiguous provisions (the interstate commerce clause, the general welfare clause, the patent and copyright clause, the necessary and proper clause). And the patent and copyright statutes empower the granting of monopolies, all the while the various antitrust statutes decry them, leading courts to helplessly conclude that there is “a tensionbetween antitrust and IP law. These modern statutes, even the Constitution, could hardly be viewed as enunciating principles of natural law that are embedded in a coherent “plasma” of natural justice. (The US Constitution is more abstract and general than modern statutes, and is based in part on organically developed principles of the English “constitution” that are somewhat compatible with libertarian principles, but as noted above, it is riddled with ambiguity, inconsistencies, and blatantly illiberal provisions precisely because it was the artificial decree of a committee of politicians, bureaucrats, and power-seekers. It is more accurate to say that the natural justice and libertarian principles that do inform parts of the Constitution’s fabric serve not to make it libertarian, but to give even its illiberal provisions legitimacy in the eyes of a confused and duped public. On this see Lysander Spooner’s comments about supporters of the Constitution being knaves or dupes.)

New York lawyer James Carter recognized this when he worte, in 1884, in opposing David Dudley Field’s attempt to (legislatively) codify New York’s common law, to replace case law with centralized legislation:

At present, when any doubt arises in any particular case as to what the true rule of the unwritten [i.e., judge-found, common-law developed] law is, it is at once assumed that the rule most in accordance with justice and sound policy is the one which must be declared to be the law. The search is for that rule. The appeal is squarely made to the highest considerations of morality and justice. These are the rallying points of the struggle. The contention is ennobling and beneficial to the advocates, to the judges, to the parties, to the auditors, and so indirectly to the whole community. The decision then made records another step in the advance of human reason towards that perfection after which it forever aspires. But when the law is conceded to be written down in a statute, and the only question is what the statute means, a contention unspeakably inferior is substituted. The dispute is about words. The question of what is right or wrong, just or unjust, is irrelevant and out of place. The only question is what has been written. What a wretched exchange for the manly encounter upon the elevated plane of principle!

This gives rise to a phenomenon I have referred to as “classificationism.” When the positive law becomes dominated by artificial state decrees–whether actual legislation, or administrative “rules” made by various federal “agencies,” or fumbling attempts by the courts to make sense out of mere words of a statute, the meaning of which is not connected to natural property or justice–then law devolves into endless squabbling and bickering over definitions and classifications.

There are a depressingly endless number of examples that could be given. Under the Americans with Disabilities act, what is, or is not, “reasonable accommodation” made by a business owner to the disabled? Who knows?

In copyright law, what is “fair use”? In patent law, when is an invention “obvious”? [continue reading…]

  1. See my articles “Legislation and Law in a Free Society” and “Legislation and the Discovery of Law in a Free Society.” []
  2. See my post Logical and Legal Positivism. []
  3. See John Hasnas, The Myth of the Rule of Law. []
  4. See Rockwell on Hoppe on the Constitution as Expansion of Government Power. []
  5. On the difference between more abstract principles of justice and more concrete, specific legal precepts and applications of the abstract principles, see my Knowledge, Calculation, Conflict, and Law. []
  6. See Shael Herman, Detrimental Reliance in Louisiana Law–Past, Present, and Future (?): The Code Drafter’s Perspective, Tulane Law Review, 1984, pp. 708-709; also idem, Minor Risks and Major Rewards: Civilian Codification in North America on the Eve of the Twenty-First Century, Tul. Eur. & Civ. L. Forum, 1993, n. 11; idem, The Louisiana Civil Code: A European Legacy for the United States, 1993. []
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Occupy the Patent and Copyright Offices!

That’s what we need–not this Occupy Wall Street nonsense!

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What Recession? Patent Attorney Job Postings

Unemployment might be high overall, but some areas are booming. I received this mail flyer from William K. McLaughlin Associates, a well-known patent headhunter. Make of this what you will.

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A 6-minute take-down of patent and copyright

Costa Rican libertarian Juan Sebastian Ortiz, who produces short libertarian-related videos (see his YouTube channel), has come out with one on IP: First Principles 8 – Intellectual Property and Copyright

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On Adam vs the Man: Copyright and Neo-Mercantilism

Later today I’ll be a guest on Adam Kokesh’s show Adam vs. The Man (at 3pm CDT, but not sure if it’s streaming live). We’ll be discussing this article, U.S. Copyright Czar Cozied Up to Content Industry, E-Mails Show, and related issues such as neo-mercantilist aspects of modern patent and copyright law (Rothbard on Mercantilism and State “Patents of Monopoly”).

This is the new, 3.0 version of Adam’s show. The previous version was carried by RT (Russia Today). I appeared a couple times on the 2.0 show–On Adam vs. The Man re Drug Patents and Adam the Man vs. IP. Adam’s new format permits longer interviews for more in-depth discussion.

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Natural Rights Libertarianism and IP: A Reply to Tom Palmer

Mark Friedman, a purported “natural rights” libertarian with an apparently religious grounding (he quotes the Talmud), has graced us with an incoherent defense of IP in the form of an attack on IP abolitionist libertarian Tom Palmer’s writings, in his post “Natural Rights Libertarianism and IP: A Reply to Tom Palmer“. It is no argument at all. Typical incoherent combination of amateur religious-influenced newbie theorizing and unprincipled and implicit and hidden utilitarianism.

Just to note a few obvious confusions and flaws:

  • “I ultimately found the author’s reasons for rejecting a rights-based justification for IP to be less than compelling.” Note how this subtly puts the burden of proof on the IP abolitionist, instead of on the defender of statist positive law. The burden should be on him, not us. A so-called advocate of natural law is here giving presumptive legitimacy to existing state positive law. Lon Fuller weeps.
  • “I will pause here just long enough to clarify that while I do not subscribe to the self-ownership thesis, which seems to be Palmer’s primary target, I believe that his argument, if successful, would also be telling against Nozick-style libertarianism, i.e. one grounded in respect for persons as rational (moral) agents.” So this religious “natural rights libertarian” does not respect self-ownership. There are a few possible explanations why a self-styled libertarian would make such claims.  First, pure inconsistency and amateurishness. Second, the believe that God “owns” us so we are not self-owners. I.e., we are God’s property, his slaves. Soi-disant religionists are free to propound such nonsense, but if they do, it is no wonder that they rebel against principled libertarianism. Yet I would point out that even if “God” “owns” us, that does not mean that in the real world of inter-personal and political relations, the normal Lockean-libertarian property rights and self-ownership rights don’t apply. That is, even if you think God has some ultimate claim and authority over us, his flock, his slaves, any one of us God-slaves has no right to commit aggression against the other. Third, if you reject self-ownership this means not merely God-ownership (whatever such ravings really mean) but other-ownership, i.e. chattel slavery. And I can think of nothing more libertarian than a rejection of chattel slavery–that is, of upholding self-ownership. Any so-called libertarian who expresses problems with self-ownership: in my view, they are either stupid, or confused/amateur-newbs, or statists in libertarian clothing. In this respect I am reminded of Francisco D’Anconia’s “Money Speech” in Ayn Rand’s Atlas Shrugged: “Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter.” Likewise, anyone who opposes self-ownership is either a fool or an advocate of slavery. In neither case is he a libertarian. (See Against the Non-Aggression Principle and Self-Ownership? Run!)
  • His criticisms of Palmer’s IP views rests on arguments like “I believe it should be apparent that patent rights actually represent a fairly trivial restriction on self-ownership” and “It is true that copyrights enjoy a much longer period of exclusivity (life of the author, plus 70 years), but this does not seem to constitute an undue burden on the freedom of others to write, compose, paint, etc.” Ah, I see: patents violate rights, but it’s fairly trivial (even though patent trolls cost the economy $80B a year), so hey, everyone, stop yer belly-achin’! And copyrights may be a tad “too long,” but hey, it’s not an  “undue burden”. It’s a due burden! Patents are a justified restriction since it’s only trivial! Don’t worry, be happy!
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Reason: Copyright Should Last Half A Century

[Update: See also Confused Reason writer Cathy Young Anti-SOPA but still pro-copyright]

My LRC post from 2009:

Reason: Copyright Should Last Half A Century

Posted by Stephan Kinsella on June 25, 2009 07:05 PM

You would think libertarians would be unambiguously for freedom of speech. In Intellectual Property vs. Creative Freedom, Cathy Young discusses a literal book banning by a federal judge: he has temporarily enjoined “publication of a novel called 60 Years Later: Coming Through the Rye,” based on copyright claims by “J. D. Salinger, author of the 1951 classic Catcher in the Rye.” The judge is expected to decide soon whether to make the ban permanent. Yes, this is all because of copyright.

Copyright now lasts well over 100 years, due to continual copyright extension over the years–as Young notes, “When copyright legislation was first passed in the United States in 1790, the term of copyright lasted for 14 years, with the option of renewal for another 14.”

Does Ms. Young want to abolish copyright, this obvious threat to freedom of press? Or at least return to the 14 + 14 year system? Why, no. She has figured out the optimal way to handle this: “Personally, I would support a term of 50 years, with a portion of revenues from any derivative work published thereafter going to the original author.” Fifty years. Where she gets this number is anybody’s guess.

This is libertarianism?

Update: Confused Reason writer Cathy Young Anti-SOPA but still pro-copyright

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From QuestionCopyright.org. This is indeed very good use of a CC license that does not prohibit commercial use or derivative works (the NC and ND clauses) is fairly rare; rarer still is one that does not even require imposition of a similar license (copyleft, or the SA clause). The most open CC clause that is easy to use and (hopefully) enforceable is the CC-BY license, that requires only attribution but that permits derivative works and commercial uses, without imposing a restrictive share-alike provision (see my post Copyright is very sticky!). This is why I, C4SIF, and the Mises Institute use CC-BY where possible instead of the more restrictive CC-BY-SA. Glad people are moving in an increasingly open direction.

A good sign: Blackboard.com bucks the trend and promotes a truly free license.

by Karl Fogel on 19 Oct 2011

A very interesting announcement from Blackboard.com:

… Blackboard will now support publishing, sharing and consumption of open educational resources (OER) across its platforms. […] Support for OER enables instructors to publish and share their courses under a Creative Commons Attribution license (CC BY) so that anyone can easily preview and download the course content in Blackboard and Common Cartridge formats…

What makes this big news is that these kinds of initiatives usually use one of the non-free Creative Commons licenses: one containing either no-derivatives (“ND”) or non-commercial (“NC”) clauses or both.  Instead, Blackboard.com bucked the trend and opted for full freedom: by offering CC-BY, they’re encouraging users to choose a truly Free Culture license.  Let’s hope others follow their fine example!

Kudos to Blackboard.com.  And congratulations to the educators and students who will now be able to share, translate, re-use, and transform educational materials for any purpose, without having to ask permission first.

Blackboard.com logo Creative Commons Attribution license (3.0)

 .. read the rest of this article »

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Open Science Summit Streaming Live

Open Science Summit 2011I’m here at the amazing Computer History Museum in Mountain View, to speak on a panel at the Open Science Summit. My panel is on intellectual property and science, and starts at 10:00 a.m. PST. The panels are streaming live here.

As I noted in previous posts (Open Science versus Intellectual Property and Kinsella on Panel at Open Science Summit), this is a fascinating and promising movement/group that is devoting a great deal of attention to how IP affects science (for more on the OSS, see The Open Science Shift, Xconomy; Open science: a future shaped by shared experience, The Guardian; footage from last year’s summit is available on the OSS Youtube channel).

In fact a good deal of the Opening Session of the 2010 Open Science Summit was devoted to IP horror stories and ways in which it interferes with science and the spread of knowledge (go to about 8:20 for the beginning of this discussion).

For a related talk, “Science is a Private Good – Or: Why Government Science is Wasteful” (video; audio; and below) delivered at the Fifth Annual Meeting of the Property and Freedom Society in Bodrum, Turkey,1 by Terence Kealey, a biochemist at the University of Buckingham and author of Sex, Science and Profits and The Economic Laws of Scientific Research.

  1. See my Bodrum Days and Nights: The Fifth Annual Meeting of the Property and Freedom Society: A Partial Report. []
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Great post by Mike Masnick on Techdirt:

Wyden: PROTECT IP Act Is About Letting The Content Sector Attack The Innovation Sector

from the don’t-let-that-happen dept

For years we’ve seen Silicon Valley basically ignore what’s happening in Washington DC, and this has allowed certain other industries to take advantage of that policy. Hopefully, more people are beginning to realize that this is a problem and that speaking out and doing something may have an impact. Thankfully, some in Congress are helping to spread that word as well. Senator Wyden, who we’ve obviously mentioned a bunch due to his willingness to actually fight against attacks on free speech and innovation, showed up in San Francisco earlier this week to speak at the Web 2.0 conference, where he laid out the issues behind PROTECT IP clearly. You can see the full interview below:

Around the five minute mark, he lays out the realissue behind the PROTECT IP Act, rather than the BS claims of those supporting it:

Let me go right to the question of the PROTECT IP Act… What this is, at its heart, is a question of whether one part of our economy — the content sector — can use government as a club to go after another part of our economy — which is the innovation sector and everything that the internet represents.

My only issue with this characterization is that it’s a little broad. For example, Techdirt is, very much, a part of “the content sector.” But we’re quite worried about PROTECT IP. I recognize that the Senator was using shorthand, but it’s helpful to distinguish the legacycontent sector from the next generation content players who don’t want to rely on the government to prop up our business models. Either way, the overall point is absolutely true, and it’s too bad that almost no one else in Congress is willing to address the reality of the situation. It has everything to do with a small group of companies — who are unwilling to adapt — trying to lash out at the industries they need most.

The PROTECT IP, when you really strip it down, is about whether or not you’re going to have arbitrary seizure of domains. Whether or not you’re going to have these vague standards for going in and seizing a domain. And then, and something I think is particularly ominous, ceding a significant portion of the authority over the internet to private companies, in effect, allowing them to bring private rights of action…. This legislation, in its current form, would take a significant toll on both freedom and innovation. And particularly now, when the digital space is one of the most exciting parts of an economy, where we’ve had some tough times.

The rest of the interview is equally interesting as well, touching on his efforts to make sure the 4th Amendment applies to the GPS info associated with your mobile phone, his efforts to press the Obama administration to reveal its secret interpretation of the PATRIOT Act, and a variety of other subjects that we talk about here all the time — including the idea that people here need to pay attention to what our government is doing and speak out when lobbyists and politicians are trying to hold back civil liberties or innovation.

I know it feels like we mention Senator Wyden pretty frequently, but there are two reasons for that: (1) So much of the things he gets involved in are the issues that we normally discuss here and (2) he’s one of the only people in Congress who seems to really be interested in these things. It’s good to see him come to Silicon Valley and spread that message directly to folks here.

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A C4SIF fan and kindred spirit

From Words in Posts:

by Chuck Baggett

It’s not often that I see anyone else express something resembling my oppostion to copyrights and patents.  The Center for the Study of Innovative Freedom, https://c4sif.org,  appears to be one of the rare cases.

The Center for the Study of Innovative Freedom (C4SIF) is dedicated to building public awareness of the manner in which laws and policies impede innovation, creativity, communication, learning, knowledge, emulation, and information sharing. We are for property rights, free markets, competition, commerce, cooperation, and the voluntary sharing of knowledge, and oppose laws that systematically impede or hamper innovation, especially those enforced in the name of defending “intellectual property,” such as patent and copyright; these should be radically reformed or entirely abolished.

via Center for the Study of Innovative Freedom — Pro-commerce ? Pro-competition ? Anti-monopoly.

I don’t support copyright or patents at all. I can’t see using force against someone for the things that copyright and patent laws prohibits.  If people are unable to earn for a lifetime from a finite, often short period of labor, that doesn’t bother me. Not earning a lifetime or more of income from a finite amount of time is how most people have survived throughout history.  There’s no way to enforce copyright and patent laws without a powerful, omnipresent state. The ill effects of such a leviathan are far greater than the supposed benefits brought by copyright and patent laws.

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Adam Smith Institute: Do not feed the patent troll

The Adam Smith Institute continues to impress–from previous articles criticizing IP (see Intellectual property: an unnecessary evil) to excellent pro-liberty books released in free PDF form pursuant to their admirable, progressive open access policy (see my post The Condensed Wealth of Nations).

And yesterday they published an excellent piece by their Research Director, Sam Bowman, which is clear, concise, principled, and hard-hitting attack not only on patent “abuse” but on the entire institution of patents (h/t Wendy McElroy):

Do not feed the patent troll
Written by Sam Bowman
Tuesday, 18 October 2011 05:42

Apple iPad vs. Samsung Galaxy

Apple iPad vs. Samsung Galaxy

Samsung’s move to have iPhone 4S sales banned in Australia and J

Samsung’s move to have iPhone 4S sales banned in Australia and Japan is just the latest battle in the patent war between Apple and Samsung. It follows the EU’s banning of the sale of Samsung’s Galaxy Tab (on hold for now). The war highlights the sorry state of the world’s patent laws.

The typical argument for patents is that they encourage innovation. By protecting a person’s potential invention from being copied, they increase the reward for coming up with an invention. But the other side of this coin is that they discourage innovation too, by increasing the cost of improving on or incorporating other innovations into your own work. If you want to stand on the shoulders of giants, you’ll have to cough up.

The Apple/Samsung patent war is an example of patents at their worst. There’s a big deadweight loss associated with lawsuits and restrictions on commerce. And most of the challenges are completely spurious – should Apple really “own” the pattern of a four-column grid of apps on a tablet home screen, or the concept of a rectangular tablet computer? Apple and Samsung have created enormous value to a huge number of people, but in this case they’re acting against consumer choice. Like blaming gravity for plane crashes or greed for financial crises, it’s silly to blame the firms themselves. Fundamentally, it’s the patent system that’s at fault.

Patents are anathema to private property rights. A pattern or idea is non-rivalrous and non-excludable – unlike property, there is no opportunity cost to someone’s use of an idea or pattern. An individual idea is not scarce unless we make it so through patent laws. …

Read more>>

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