http://www.libertarian.co.uk/lapubs/econn/econn113.htm
http://www.libertarian.co.uk/lapubs/econn/econn113.pdf
Intellectual Freedom and Learning Versus Patent and Copyright
Stephan Kinsella
Economic Notes No. 113
ISSN 0267-7164 (print)
ISSN 2042-2547 (online)
ISBN 9781856376273
An occasional publication of the Libertarian Alliance,
Suite 35, 2 Lansdowne Row, Mayfair, London W1J 6HL.
© 2011: Libertarian Alliance; Stephan Kinsella
Stephan Kinsella (nskinsella; www.stephankinsella.com) is a registered patent attorney and General Counsel, Applied Optoelectronics, Inc. (ao-inc.com); Senior Fellow, Ludwig von Mises Institute (www.mises.org); Founder and Editor, Libertarian Papers (www.libertarianpapers.org); and Founder and Director, Center for the Study of Innovative Freedom (www.c4sif.org). LL.M., Kingโs College London; JD, Paul M. Hebert Law Center, Louisiana State University; MSEE, BSEE, Louisiana State University. This paper is based on a speech of the same title delivered 6th November 2010, at the 2010 Students for Liberty Texas Regional Conference, University of Texas, Austin; audio and video available at http://www.stephankinsella.com/media/. All of the articles cited herein may be found at http://www.stephankinsella.com/publications/. For more extensive treatment of some of the ideas dealt with in this article, see the authorโs monograph Against Intellectual Property (Mises 2008), and his articles โThe Case Against IP: A Concise Guide,โ Mises Daily (4th September 2009), โIntellectual Property and Libertarianism,โ Mises Daily (17th November 2009), and โWhat Libertarianism Is,โ Mises Daily (21st August 2009).
The views expressed in this publication are those of its author, and not necessarily those
of the Libertarian Alliance, its Committee, Advisory Council or subscribers.
FOR LIFE, LIBERTY AND PROPERTY
Iโve given several speeches about intellectual property (IP). Tonight Iโll take a somewhat different approach to the subject. Let me ask you a general question. Why are you here at this great (government) school? Itโs to have fun, right? But it is also to learn; that is the basic purpose of education: to learn. To be sure, we learn things all the time. A university is a more formalized way of learning, but learning as a general matter is very important. This may sound like a trite observation. We make these comments all the time: โEducation is important. Learning is good.โ
The Role of Learning and Knowledge in Human Action
But this leads me to the focus of my talk, which is about learning and the importance of information and knowledge, and copying and emulation on the market and in life in general. So letโs think about how learning is important and how itโs used in everyday life.
Ludwig von Mises, the famous Austrian economist, the father of modern Austrian economics, systematized the study of human action and gave it a name: praxeology. This is the study of the logic of human action. Mises analyzes action in very simple, elementary terms. He breaks it down. I want you to think about it. If you havenโt heard of praxeology, donโt be daunted by the expression. The idea is to look at what the components of human action are; what we do every day, all the time.1
The Structure of Human Action: Means and Ends
When a human acts, what is he doing? He looks around the world. He chooses an end or a goal that he wants to achieve, some purpose of his, something he wants to happen, something that would not happen without his active intervention in the world. So he chooses one action over another. He chooses his highest value action or end, and demonstrates this preference by his action.
So we have a chosen end, or goal. But how does an actor achieve the goal he has chosen? He has to select certain means. This is what Mises and the Austrians call means: things that are physically efficacious, things that let you causally interfere in the world to achieve some desired goal.
Letโs take an example. Youโre all eating now so letโs take a food example. Letโs say youโre hungry. So you say, โI know I like cake. I know I like chocolate cake. I think Iโll try to acquire a chocolate cake.โ
You can see right off the bat that knowledge has entered the picture; the knowledge of what you like. Maybe youโve learned this from experience, but knowledge is already playing a role in your decisions and actions. It has informed your choice of ends.
So how do you achieve your end? How do you get the chocolate cake? Well, you might obtain a recipe for cake and get the ingredients and tools to make the cake: mixing bowl, eggs, flour, spoon, kitchen, oven. Then you spend some time and effort and make a cake. You make that cake instead of watching television or getting your car washed or changing your clothes or making a vanilla cake.
This illustrates that human action is the purposeful use of means to achieve a desired end or result.2 Notice that the means you employ have to be physical or scarce resources, things that are real things in the world, things that you can affect, like the mixing bowl and the oven.3 This is what you employ to achieve your goal. The Austrians, especially Mises, go into the logical structure of human action, which we just discussed, and show that it implies so many things.4 For example, it implies opportunity cost. You choose this goal instead of the other ends. The things that you did not choose are the opportunity cost of your action.
Action also presupposes causality. You have to believe there is a way to achieve your result by manipulating the world in accordance with time-invariant causal laws. The structure of human action also has the concept of profit and loss built in, which is not only a monetary concept, but a psychic concept. Not psychic in the Shirley MacLaine sense, but psychic in the sense of pertaining to mental phenomenon, such as value and ends. For example, if you achieve your goal, which is to obtain a nice chocolate cake, and if it is as you envisioned it, and if you enjoyed it like you expected that you would, then youโve achieved a profit. If it turns out to be a failure or you donโt enjoy it for some reason, then there is a loss.5
Knowledge as a Guide to Action
Where does this leave the role of learning? Learning is important because it is how we acquire information. Information is important because it gives us knowledge of how the world is. The more knowledge you have, the wider is your universe of choices. You have more ends to choose from, for example.6
Letโs say one person only knows the possibility of making a vanilla cake or a chocolate cake. If he learns that itโs possible to make a coconut cake, now he can choose between three possible goals. So his knowledge of the ends can expand and give him a wider array of choices.
Importantly, you also have to have knowledge of means and causal laws of the world because this informs your choice of means. To be able to choose a given end, you also need to know how to achieve it. You need to have a recipe.7 I donโt mean only food recipes. A recipe in this sense is just a general way to do something by exploiting resources in the world to achieve some end.
You know, for example, that if you take an egg, some flour, and chocolate, mix them in a certain way, and bake it, then, after a while, you have something that is edible. So the role of knowledge in action is to guide action. It is not the means of action. For example, you might know five different ways of getting the cake you desire. One may be to steal the cake. Itโs immoral, but itโs a possible way. One may be to bake the cake. Another may be to purchase the cake. Yet another is to hire someone to bake the cake for you. So, in other words, the more knowledge you have, the wider the universe of ends and means that you have to draw on. This is the reason why learning is good.
Consider the great creators in the pastโShakespeare, Michelangelo, Bach, sayโthey drew upon knowledge that they acquired from the culture they were born into. Even the greatest of inventors, innovators, and creators didnโt think of everything on their own.
Scarcity, the Free Market, and Abundance
Now, letโs now think about the role of scarcity in the free market. Given the above-mentioned understanding of what human action is, this very simple structural view of human actionโthat we use knowledge to guide our choices of ends and of what means to use to achieve the chosen endsโwhat is the role of external resources? That is, external objects, scarce things in the world? The role of these things is to be used by men to achieve their ends. Knowledge guides your action. It helps you choose what you want to do.
So reflect on the purpose of the free market system. What is its purpose, its role? What is its function or result? It is to help us achieve abundance. We live in a world of scarcity. We donโt live in the Garden of Eden.8 We live in a world where survival is not easy. Itโs difficult. We have to find ways to survive because there is scarcity. There arenโt bananas hanging from every tree, enough for everyone to survive off of, but the free market operates to unleash creative energy and to allow tremendous productivity.
If you think about it, although we have scarcity and there is nothing we can do about this fundamental fact of the universe, the free market, in a way, helps us fight and overcome this situation.9 The thing is, the only way you can do this is by having a free market. A free market has to be built on private property principles. The reason we have to have private property is because these things are scarce. Economists call them rivalrous because you can have rivalry or fighting over them. For example, for a productive use to be made of the spoon, in the cake example, someone has to own the spoon. Someone has to be the one person who has the right to control that spoon. How do other people know that a given resource is owned, and who owns it? Property rights set up objective borders. They tell you who owns things. Theyโre visible and observable.10
This doesnโt mean there is no crime. This doesnโt mean that everybody respects these property rights. There can be thieves, but at least with thieves we can theoretically deal with them with crime prevention techniques. Paraphrasing Hans-Herman Hoppe, thieves and criminals are just a technical problem.11 People who want to live in harmony and use these resources productively have to have a system of property rights to allocate the use of the spoon.
Sometimes itโs said that libertarians believe in property rights and that other political systems do not uphold property rights. This is true in a sense, if you mean property rights in a particular way, but if by โproperty rightsโ you mean the right to control a scarce resource, which is what propertyโownershipโis,12 then every system on the face of the earth upholds some form of property rights. Every system on the earth will have a legal rule that says who is the owner of this platform, who is the owner of that factory, who is the owner of your paycheck.
For example, in the modern quasi-socialist welfare state that we live in today, the ownership rule is that the government owns about half of my paycheck. Itโs clear there are property rights. Itโs just that I only have about half and the government has the other half.
So in every society the legal system assigns an owner to a given contestable resource. Whatโs unique about libertarianism is not that we believe in property rights; everyone does. Rather, itโs our particular property rights scheme, which is basically the spinning out of the Lockean idea that the person who owns a given contested resource is the first user of it, or someone that he sold or gave the property to. The purpose of property rights is to permit us to peacefully, productively, and cooperatively use these things that are, unfortunately, scarce and cannot be used by more than one person at a time.13
Cooperation, Emulation, and Competition
I donโt know if all of you have heard of the Misesian โcalculation argument,โ but in the 1920s, Ludwig von Mises published a seminal paper that explained why socialism cannot work, why economics is literally impossible under full-fledged socialism.14 The reason is there is no way to compare competing projects unless you can do so in cardinal, numerical terms. Itโs a very simple idea. You canโt compare building a bridge to planting an orchard. Theyโre not comparable units. Mises realized that in a free market system with money prices, everything resolves in terms of money. You can compare with money prices. The problem in socialism is you donโt have real money prices. You donโt have real money prices because there is no private property in the means of production. This is the basic insight of Mises as to exactly why a private property system permits the free market to be prosperous and to generate wealth and to fight this condition of scarcity.
The market is producing more things all the time. It doesnโt ever eliminate scarcity, but it fights it. If we had the government off of our backs, you could probably buy a Mercedes for $500. You could buy a microwave oven for a penny. It would not be infinitely plentiful, but it would be so plentiful everyone could have what they wanted.15
What are the key elements of a free market economy that allow this to happen? One is cooperation. The free market, by setting up property borders, allows people to cooperate instead of fighting over a resource.
It also gives rise to competition. My friend Jeff Tucker, of the Mises Institute, related to me a really good formulation of what competition is that was given to him by Larry Reed who is now the president of FEE, the Foundation for Economic Education. Reedโs formulation is โcompetition is the striving for excellence in the service of others.โ Thatโs true. Thatโs what it is. You try to constantly improve what youโre making to try to please the customer. This gives rise to a relentless effort on the part of the people in the market to lower cost, to make things more efficiently, to serve customers the best you can because youโre in competition with others.
But weโve left out one thing. Remember we talked about human action. A key aspect of human action is knowledge. You have to have knowledge to guide your actions. So how does this relate to the market? Whatโs the role of knowledge in human action, in the market context? Itโs emulation.16 If you see someone successful in the market, you emulate them. This is how competition arises. You see someone attracting customers. Letโs say some guy invents a slushee stand and heโs getting a lot of customers. You might build your own slushee stand to compete with him. You copied his idea. So what? Customers are better off. Now the original guy might improve his slushee stand. He might offer more flavors.
This relentless striving to please the customer benefits everyone. This is the process of the market and it presupposes the idea of copying information, learning information, emulating. Competition means you can compete with someone, but you have to respect their property rights. You cannot trespass against them. You canโt steal your competitionโs property, but you can โstealโ their customers because they donโt own their customers.
Letโs tie this back to the structure of human action. Remember, we said human action uses means and it is guided by knowledge. So the means of action need to be privately owned only because theyโre scarce. Thatโs why we have to have property in those things. Now, you canโt say scarcity is a bad thing, as itโs part of the nature of reality, but itโs definitely a challenge. We humans have to try to overcome scarcity. The free market allows us to create wealth.
Creation of Wealth versus Creation of Property
Now, I want you to think about this for a second. What does it mean to create wealth? Does it mean to actually create an object out of thin air? No. It means to make things that you own more valuable. That increases wealth.17
Imagine two people engaging in a simple exchange. I give you my goat and you give me some eggs from your chickens. Was anything physically created? No. There was just an exchange. But as we know from very basic Austrian economics that one transaction increased the sum total of wealth in society because I wouldnโt have given you my goat if I didnโt want the eggs more. So after the exchange, Iโm better off and the same thing for the other guy.18
So just by allowing people freedom and respecting property rights, you can increase wealth, but the key thing to recognize is that wealth is not an object. Value is not a substance. Things are more valuable because theyโre in a different shape. Theyโre more valuable to customers, for example. When we talk about creating wealth, what we mean is we are rearranging things that we already own, rearranging scarce resources to make them more valuable to customers or to yourself.
So, yes, you use your creativity, you use labor to do these things. Labor and creativity can be said to create wealth, but that is just another way of saying that oneโs labor and actions are guided by knowledge to transform things that you own already to make them more valuable to you or to others.
I emphasize this because thereโs an insidious argument that is commonly used, even by libertarians, by proponents of this idea of intellectual property. The argument goes like this.
Oh sure, I agree with you that if you find something in the state of nature that was never owned, youโre the owner. Finders keepers. Yes, that is one source of ownership. And sure, I agree that if someone transfers something to you by contract, which can include gifts, a contractual consensual voluntary transfer, that is another way you can come to own something.19 Thatโs another way of acquiring property rights.
So, they admit that weโre right on two things: you can come to own some scarce resource by finding it or buying it.
But they say if you create it, you also own it. It just seems natural. Weโre used to thinking about this because what do we say in America? โYou make money.โ Now, all that really means is you had a profit from a certain entrepreneurial endeavor. These metaphors can mislead us if weโre not careful.20 You donโt really make money. (Now the Fed makes money, but thatโs a different story! They donโt make real money. They make these artificial tickets we have now by printing them.)
Then they will say there are three ways to acquire ownership of things: you can find it, you can buy it, or you can create it. If you create it you should own it. Itโs natural. If there is a thing that someone created, and itโs got to have an owner, well I guess itโs got to be the creator. Heโs got the best connection to it. It just makes sense, right? Then theyโll say, well, who created that song? Didnโt you create that song? Who created that painting? Didnโt you create that painting? So, youโre the owner of it. The problem is theyโre wrong. Creation is not a third means of acquiring ownership of things.
We can see it in the examples I gave already. Creation just means transforming things you own already. Think about a man who has a big chunk of marble. He owns it because he found it. He didnโt create any new ownable thing. I guess you could say heโs creative in finding it, but heโs not creative in the modern intellectual property sense. His neighbor sneaks over in the middle of the night and carves a statue out of it. Who owns the statue? Under current law, itโs indeterminate. Under libertarian law, the original guy owns it. This is a clear example that creation by the neighbor is not sufficient to give rights. Itโs also not necessary since the first guy acquired ownership because he found it. So you can see that creation is neither necessary nor sufficient for property rights and things. Creation is not an independent source of ownership or property rights.
This is the mistake that is made over and over again by pro-IP libertarians. One libertarian philosopher says there are ontologically many types of things out there. Sure there are tangible things, but there are poems and movies. Why canโt we own those too?21
But what about, say, welfare rights? If rights are good, why canโt there by welfare rights? What do modern liberals say? They say, โoh, I believe in property rights, but there is โalsoโ a right to education and a right to food. Now, of course, we libertarians already understand that the problem with this idea is that these rights are not free. They come from something else. When you have a set of rights allocated and you start giving out more rights, they have to start chipping into the previous ones recognized. They have to come from something else. Rights and obligations are correlative. If you have a right to education or welfare, someoneโs got to provide it. They have to provide it out of their property. So recognizing โnewโ rights just amounts to a redistribution of property.
Itโs the same thing with intellectual property, which is nothing but a redistribution of rights. It is a redistribution of property rights from the original owner of a thing, to someone who applied at a state agency for some kind of monopoly certificate that gives them the right to go to government courts to ask the court to point their guns at the original owner and tell them โyou have to share your property with this guy, or you canโt use it in this way without this guyโs permission.โ It is a way of redistributing property rights. The idea that you can just add IP rights to the set of property rights in scarce resources is a pernicious one that leads to redistribution of control that owners have over their property, to other people.
Here is whatโs perverse about it. As Iโve already pointed out, the free market is working to let humans overcome scarcity. Yet, you have people who advocate intellectual property rights in the name of the market. Whatโs going on here? Theyโre actually imposing an artificial scarcity on things that are non-scarce by their nature.22 The free market is trying to overcome the problem of scarcity. These people are saying, โletโs make something that is already free and not scarce artificially scarce just like real things are.โ Why would we want to do this?
Letโs imagine we had the ability to change physical laws so that you could easily duplicate a car just by looking at it. I look at your Rolls Royce and I blink my eyes and I have my own. It didnโt take anything from you. You can still drive your car around. Who would be against that? Well, the auto workersโ union would be against it I guess, but normal people wouldnโt be against this. This would be free wealthโa good thing.
Yet, we already have this idealized situation in the case of knowledge. We have an expanding base of knowledge that we have all benefited from. It is growing all the time with every succeeding generation. The idea of shackling it is crazy. Why would libertarians support the government in imposing restraint on information?
IP as Censorship and Monopoly
There was one free market economist who actually wrote for one of the free market think tanks that many of you have probably read from before. He explicitly says โpatents and copyrights slow down the diffusion of new ideas for a reason: to ensure there will be more new ideas to diffuse.โ23 We can debate whether heโs right about this means (slowing down the diffusion of ideas by means of state grants of monopoly privilege) achieving this end (ensuring there are more new ideas generated). I think, of course, that heโs wrongโobviously wrongโbut heโs admitting that IP advocates want to slow down the spread of ideas. They want to make it more difficult to spread ideas.
There was a recent Salon magazine article about copyright in China. The magazine articleโs author sort of innocently stated that โWe may have more to gain, economically, from removing impediments to the widespread distribution of knowledge than from attempting to restrict them.โ24 Oh really!
It should be no surprise that patent and copyright have such perverse effects. If you realize the history of these statutes, it is no surprise at all. Patents originated in the granting of monopoly privileges by monarchs. The first modern patent statue is called the Statue of Monopolies of 1623 in England. A patent was given to Sir Francis Drake, a notorious pirate, or privateer as he was euphemistically called, in the late 1500s, which authorized him to go around looting Spanish ships. The origin of patents is in privilege, monopoly, and real piracy. So all these proponents of intellectual property who point their fingers at todayโs โpiratesโ and are against piracy, well, there is a link between piracy and intellectual property: they go hand in hand.25
Copyrightโs origin is literally in censorship. Before the printing press, the state and the church found it pretty easy to control the distribution of thought. There were certain scribes who would copy books by hand. So the state and church could stop people from copying what they didnโt want copied. The printing press started to upset matters and so the state established an elaborate system of monopolies and controls over the use of printing presses. This led to the Statue of Anne in 1710 in England, is the first modern copyright statue. Actually, part of the reason that some authors in the French Revolution, and even in England, were in favor of modern copyright laws was they wanted the control back. The government was controlling whether their own works could be reproduced. It wasnโt a desire to get this monopoly from the state to go around suing people to stop them from reading their work. It was a desire just to have the ability to have it reproduced and copied.26 So the entire history of patent and copyright lies in statism. It lies in piracyโreal piracyโpirates that kill people and break things, not guys that have a Jolly Roger banner on their website.
Let me give an example of a mousetrap. Letโs say some guy makes a mousetrap. He gets the idea to improve the standard mousetrap by coating it with Teflon. He figures these rat guts are sticky; they keep sticking to my mousetrap. Iโll coat it with Teflon and this will make a better mousetrap. So maybe he sells some and when he sells his mousetrap a lot of people learn about it. The realize, โHey, itโs possible to make a mousetrap out of Teflon. It works even better.โ
Letโs say I have some Teflon and a mousetrap. I improve my own mousetrap by adding Teflon to it. Now, the first guy has a patent on his Teflon-coated mousetrap. He can actually get a court order, an injunction, that tells me I cannot make this mousetrap even in the privacy of my own home or I will go to jail. This is really the force of government. So this is just an example of how patent rights literally rob people of their property rights. (Note: the patentee can do this to me even if I independently came up with the idea of a Teflon-coated mousetrap; even if I came up with it first.)27
The IP Mistake
Why did this happen? How did my property get transferred to this patentee? Ultimately, causally, it was transferred because of a mistake, a mistake in the law, a mistake in peopleโs thinking, a mistake in believing that ideas can be owned. Ideas cannot be owned. Ideas guide action. Means of action are scarce. Property rights are recognized in means because theyโre scarce. Ideas are not scarce things. They are infinitely reproducible. The growing body of knowledge is a boon to mankind.
We need to cast off the mistakes of the past. The young libertariansโyou get this. Youโre immersed in the internet, digital information, easy access to online books and online information, billions of pages of information available at your fingertips, yeasty productivity, copying, emulating, file-sharing, social networking and borrowing. The movie The Social Network depicts Mark Zuckerberg, the creator of Facebook, as being accused of stealing the Winklevoss twinsโ idea. He was rightly outraged at the suggestion. He says, โDoes a guy who makes a really good chair owe money to anyone who ever made a chairโ?28
Heโs right. The very idea is ridiculous. Copying information and ideas is not stealing. Learning is not stealing. Using information is not trespass. I urge you young libertarians to stay on the vanguard of intellectual freedom. Fight the shackles of patent and copyright and keep on learning.
Thank you.
Notes
(1) For further discussion of the structure of human action and its relationship to IP, see note 13 and accompanying text, et pass., of my article โIdeas Are Free: The Case Against Intellectual Property,โ Mises Daily (Nov. 23, 2010).
(2) For further discussion of the nature of human action, see n.4 and accompanying text of my โIdeas Are Freeโ; also Stephan Kinsella & Patrick Tinsley, โCausation and Aggression,โ The Quarterly Journal of Austrian Economics 7 no. 4 (Winter 2004): 97โ112.
(3) Non-scarce things are classified by Austrians as โgeneral conditionsโ of action, as opposed to scarce means or goods. See Ludwig von Mises, Human Action (Mises Instiute, 4th ed., 1996), ch. 4, sec. 1, and Murray N. Rothbard, Man, Economy and State (Mises Institute 2004), ch. 1, sec. 2, both available at mises.org.
(4) See Hans-Hermann Hoppe, โPraxeology and Economic Science,โ in Economic Science and the Austrian Method (Mises Institute, 1995), text following n. 18 (โAll of these categoriesโvalues, ends, means, choice, preference, cost, profit and loss, as well as time and causalityโare implied in the axiom of action.โ); idem, A Theory of Socialism and Capitalism: Economics, Politics, and Ethics (Mises Institute 2010 [1989]), p. 141; and idem, โIn Defense of Extreme Rationalism: Thoughts on Donald McCloskeyโs The Rhetoric of Economics,โ Review of Austrian Economics 3, no. 1 (1989), p. 200; both available at hanshoppe.com/publications.
(5) See Mises, Human Action, ch. 4, sec. 4; Rothbard, Man, Economy and State, ch. 4, sec. 5.C.
(6) For related commentary, see my post โKnowledge is Power,โ C4SIF Blog (Dec. 28, 2010), c4sif.org/2010/12/knowledge-is-power/ .
(7) See Rothbard, Man, Economy and State, ch. 1, sec. 8; Kinsella, โIdeas Are Freeโ; and Jeffrey A. Tucker & Stephan Kinsella , โGoods, Scarce and Nonscarce,โ Mises Daily (Aug. 25, 2010).
(8) See Tucker & Kinsella, โGoods, Scarce and Nonscarce,โ text at notes 4-5.
(9) See the concluding three paragraphs of my โThe Death Throes of Pro-IP Libertarianism,โ Mises Daily (July 28, 2010).
(10) See notes 23-24 and accompanying text of my โIntellectual Property and Libertarianism.โ
(11) See Hans-Hermann Hoppe, โRothbardian Ethics,โ LewRockwell.com (May 20, 2002), http://www.lewrockwell.com/hoppe/hoppe7.html (โThe existence of Friday the gorilla poses for Crusoe merely a technical problem, not a moral one. Crusoe has no other choice but to learn how to successfully manage and control the movements of the gorilla just as he must learn to manage and control the inanimate objects of his environment.โ); idem, Democracy: The God That Failed (Transaction, 2001), pp. 201โ202.
(12) See note 4 to my โIntellectual Property and Libertarianism.โ
(13) For elaboration, see my โWhat Libertarianism Is.โ
(14) See Ludwig von Mises, Economic Calculation in the Socialist Commonwealth (1920), idem, Human Action, ch. 16, secs. 1โ3, and other references in Kinsella, โKnowledge vs. Calculation,” Mises Economics Blog (July 11, 2006), http://blog.mises.org/5306/knowledge-vs-calculation/
(15) See Stephan Kinsella, โHow much richer would be in a free society? L. Neil Smithโs great speech,โ StephanKinsella.com (Nov. 7, 2009), www.stephankinsella.com/2009/11/how-much-richer-would-be-in-a-free-society-l-neil-smiths-great-speech/
(16) See Jeffrey Tuckerโs talk โThe Morality of Capitalism,โ FEE Freedom University (2010), http://fee.org/seminars/podcast/
(17) See โIntellectual Property and Libertarianism,โ text at n. 26; and Kinsella, โLocke on IP; Mises, Rothbard, and Rand on Creation, Production, and โRearranging,โโ Mises Economics Blog (Sep. 29, 2010), http://blog.mises.org/14045/locke-on-ip-mises-rothbard-and-rand-on-creation-production-and-rearranging/
(18) See Murray N. Rothbard, โToward a Reconstruction of Utility and Welfare Economics,โ Mises Daily (July 8, 2006), http://mises.org/daily/2205
(19) See Kinsella, โA Libertarian Theory of Contract: Title Transfer, Binding Promises, and Inalienability,โ Journal of Libertarian Studies 17, no. 2 (Spring 2003): 11-37.
(20) See Kinsella, โObjectivist Law Prof Mossoff on Copyright; or, the Misuse of Labor, Value, and Creation Metaphors,โ Mises Economics Blog (Jan. 3, 2008), http://blog.mises.org/7614/objectivist-law-prof-mossoff-on-copyright-or-the-misuse-of-labor-value-and-creation-metaphors/
(21) See Kinsella, โOwning Thoughts and Labor,โ Mises Economics Blog (Dec. 11, 2006), http://blog.mises.org/6000/owning-thoughts-and-labor/
(22) Kinsella, โIP and Artificial Scarcity,โ Mises Economics Blog (Dec. 3, 2009), http://blog.mises.org/11151/ip-and-artificial-scarcity/
(23) See Kinsella, โShughartโs Defense of IP,โ Mises Economics Blog (Jan. 29, 2010), http://blog.mises.org/11559/shugharts-defense-of-ip/
(24) Andrew Leonard, โThe key to economic growth: Stealing,โ Salon (Aug. 18, 2010),
www.salon.com/technology/how_the_world_works/2010/08/19/the_key_to_economic_growth_is_stealing
(25) See Kinsella, โHow Intellectual Property Hampers Capitalism,โ StephanKinsella.com (Oct. 18, 2010), www.stephankinsella.com/2010/10/how-intellectual-property-hampers-capitalism-transcript/
(26) See Michele Boldrin & David K. Levine, Against Intellectual Monopoly (Cambridge 2008), available at www.c4sif.org/resources at ch. 2, text at n. 27 et pass.
(27) See Kinsella, โCommon Misconceptions about Plagiarism and Patents: A Call for an Independent Inventor Defense,โ Mises Economics Blog (Nov. 21, 2009), http://blog.mises.org/11076/common-misconceptions-about-plagiarism-and-patents-a-call-for-an-independent-inventor-defense/
(28) See Jeffrey A. Tucker, โA Movie That Gets It Right,โ Mises Daily (Oct. 26, 2010), http://mises.org/daily/4806
Discover more from The Libertarian Alliance
Subscribe to get the latest posts sent to your email.








[…] the rest here: Stephan Kinsella on Intellectual Property | The Libertarian … This entry was posted in Uncategorized and tagged given-several, somewhat-different, subject. […]
[…] article, “Intellectual Freedom and Learning Versus Patent and Copyright,” was published today in Economic Notes (No. 113, Jan. 18, 2011), a publication of the […]
[…] here is an edited transcription: Kinsella, “Intellectual Freedom and Learning Versus Patent and Copyright,” Economic Notes No. 113 (Libertarian Alliance, Jan. 18, […]
[…] this link: Stephan Kinsella on Intellectual Property | The Libertarian … This entry was posted in Uncategorized and tagged given-several, somewhat-different, subject. […]
It is a good summery of what is wrong with intelectual property. However, I do not undertsand the argument that ideas are not scarce. I think this is missing an important point. Only ideas that already exist are not scares. But, good new ideas are indeed scares, very scares. And in some areas like for example software production, it might be a good idea to give creaters of these information a limited monopoly on them, so that they can get a revenue out of producing them. Otherwise we would slow down progress significantly, as the open source comuunity is demonstrating. Most of the time this community is running behind the progress that commercial software producers already reached years ago. Not to imagine where the open soucre community would be today without the role model of Microsoft and co.
Scarce means rivalrous. I and you can both use the same idea at the same time to guide our actions with respect to our own means. Thus ideas are not scarce.
Ideas may not be scarce, but good ideas seem to be. Ideas do not just ‘appear’, they are created, in just the same way your chocolate cake is created.
You work to create a chocolate cake, you therefore have a right to it, it is the fruit of your labour. You work to create a novel, it is also the fruit of your labour.
To say that ‘ideas are not scarce’ as an argument against intellectual property is silly.
I think it is a misconception to think that intellectual property is supposed to protect ideas or information that are already in the world. Sure a lot of the current intellectual property laws are doing exactly that and thus can hardly be justified. But there is a different way of looking at it. Some forms of intellectual property can be seen as a protection of ideas that are not yet in the world, so that they can come into being. And those ideas are very scarce. Denying that would imply that human kind possesses absolute knowledge and can produce any form of information at any time and no cost. That is obviously false. In many cases it is an expensive process to produce valuable information. So creating an artificial monopoly that allows these producers to exclusively control these information for a while might be a good idea, because everyone is profiting from it. This is not like in Bastiatโs Candlemakers Petition. It is not special interest policy from one group on behalf of another. Everyone wins, because if the monopoly does not exists the information will not be produced and thus the copier would have nothing to copy. With or without copyright the person who copies, so the person who is allegedly oppressed, is in the same situation. In other words with or without copyright the information that is supposed to be copied is scarce. It is not the copyright who makes it scarce. The copyright just makes the scarcity apparent.
Nico, “I think it is a misconception to think that intellectual property is supposed to protect ideas or information that are already in the world. Sure a lot of the current intellectual property laws are doing exactly that and thus can hardly be justified. But there is a different way of looking at it. Some forms of intellectual property can be seen as a protection of ideas that are not yet in the world, so that they can come into being. And those ideas are very scarce. Denying that would imply that human kind possesses absolute knowledge and can produce any form of information at any time and no cost. That is obviously false. In many cases it is an expensive process to produce valuable information. So creating an artificial monopoly that allows these producers to exclusively control these information for a while might be a good idea, because everyone is profiting from it. ”
Are you seriously saying that libertarianism–which is about individual liberty, justice, respect for property rights, and either no or very limited government–is or ought to be concerned with granting artificial monopolies to ensure that the right or enough ideas get produced? Are you serious?
First of all I am making the point that intellectual property in some cases does produce good results, meaning results that benefit everyone. There are no losers. The practical consequences of this is a different story.
I am an anarchist. I would certainly not keep the state alive to protect intellectual property. I also do not make a moral argument for intellectual property. Information needs a medium. Therefore, there is an inherent conflict between intellectual and physical property.
But I also donโt see a moral argument for most forms of land ownership and yet libertarians do not seem to have a problem with that, for utilitarian reasons.
Also, I do believe that because intellectual property in some cases is beneficial for everyone, it will be enforced in an anarchist society. More than that I donโt see how a free market can completely exist without any form of intellectual property. You will need at least a limit form of branding. Suppose company A produces a product and now company B starts imitating this exact product under the exact same name, how are customers suppose to know what they are buying? Even opponents of intellectual property admit that, but for some reason donโt call it intellectual property but simply fraud. Giving it a different name however does not change the nature of it.
[…] Regional Conference, University of Texas, Austin (audio and video versions may be found here). A previous version was published today under the same title inย Economic Notes No. 113ย (Libertarian Alliance, […]
[…] University of Texas, Austin; audio and video available atย www.stephankinsella.com/media/. Aย previous version was published under the same title inย Economic Notes No. 113ย (Libertarian Alliance, […]
[…] of the body of human cultural and scientific knowledge is a good thing.1 See Kinsella, โIntellectual Freedom and Learning Versus Patent and Copyright,โ idem, โIdeas are Free: The Case Against Intellectual Property: or, How Libertarians Went […]
Even today with patent rights, drug companies still struggle to turn a profit on most drugs.
They need monopoly to recoup the hundreds of millions of $$$ used in R&D
If companies can’t patent, then they would not spend millions in R&D.
Only a small percentage of new drugs make money for companies.
And that’s today with patents.
What more if we remove patents?
[…] means and ends: that humans, in acting, employe scarce means to achieve certain ends. As I argue in Intellectual Freedom and Learning Versus Patent and Copyright and Goods, Scarce and Nonscarce, the role of scarce means is to be employed in action causally to […]
[…] โIntellectual Freedom and Learning Versus Patent and Copyrightโ and โHow to Slow Economic […]
[…] Libertarian Publishing“; Gary North, โA Free Week-Long Economics Seminarโ; Kinsella, โIntellectual Freedom and Learning Versus Patent and Copyrightโ and โHow to Slow Economic […]
[…] โIntellectual Freedom and Learning Versus Patent and Copyrightโ and โHow to Slow Economic […]
[…] recommended]; p. 158 note 120; alsoย chs. 1 and 2Rights and the Structure of ActionKinsella, โIntellectual Freedom and Learning Versus Patent and Copyright“Argumentation EthicsRothbard, “Beyond Is and Ought“AnarchyGeorge H. Smith, […]
[…] โIntellectual Freedom and Learning Versus Patent and Copyrightโ […]
[…] (registered patent attorney and Senior Fellow at the Ludwig von Mises Institute) gave on the topic of intellectual property, which is posted at libertarianalliance.wordpress.com. โฆ.. intellectual property, which is […]
[…] more information on the above property theory,ย see myย Intellectual Freedom and Learning Versus Patent and Copyrightย http://libertarianalliance.wordpress.com/2011/01/18/stephan-kinsella-on-intellectual-property/ย ; […]
[…] Yet another great post by Rick Falkvinge. See also myย โIntellectual Freedom and Learning Versus Patent and Copyright.” […]
Using the power that the sun offers the world, solar water heaters keep the water that
you need for your sinks and tubs feeling hot. A thermostat inside the heater tells the heater when to use the ignition system to add more heat
to the stored water. 20 dollars here, twelve dollars
there, before you know it, the whole amount will run hundreds of dollars.