Manual Against Intellectual Monopoly

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Constitution and economic logic dictates. There is no evidence it "works" to increase creation and innovation.

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Chapter 9: The Pharmaceutical Industry pdf But what about life-saving drugs? References pdf entire book as a single file pdf. But the most obvious cost of patents lies not in the side effects of the struggle to obtain them but in their direct purpose:. The "submarine patent" is an especially insidious means of impeding competition. Here, someone files for a patent on a general idea without completing the application process:.

Although the patent term was measured from the date of award, … the validity of the patent [is] … measured from the day of submission.

Hence, the submarine patent — the filing of a useless patent on a broad idea that might, one day, be useful. The existence of the filing is secret … and the application process is dragged out until some actual innovator invests the time and effort to make the idea useful.

Against Intellectual Monopoly with David K. Levine

At that time, the amendment filing stops, the patent is awarded, and the submarine surfaces to demand license fees. As this example shows, the authors display a thorough familiarity with the ins and outs of intellectual property law. But even more important is a less technical point that they emphasize. People learn through imitating others, and to the extent that patents and copyrights impede this process, they block progress:.

Imitation is a great thing. It is among the most powerful technologies humans have ever developed … imitation is a technology that allows us to increase productive capacity. Innovators increase productive capacity directly, while imitators increase productive capacity by purchasing one or more copies of the idea and then imitating it.

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It is far more sensible simply to prevent imitation in the first place, by aggressive legal enforcement of patents and other forms of intellectual monopoly. Even if the authors are so far correct, they must confront a formidable objection. Suppose, as they wish, that patents and copyrights were abolished. According to their neoclassical model of competition, is there not a strong argument that innovators could derive little profit?

Once the innovation is on the market, copiers can quickly expand production until marginal revenue equals marginal cost, driving profits down to nothing. Boldrin and Levine prove fully equal to the challenge. Within their neoclassical framework, they find ample room for profit for both innovators and imitators:.


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Because copies of ideas are always limited … they always command a positive price. Nowhere is limited capacity more important than in a nascent industry. The first entrants earn large rents, over and above the opportunity cost of capital, for quite a while, until enough productive capacity is built up to push prices down toward marginal cost. In contrast to shoe factories, even with minimal installed capacity, the copies of a book that can be made over an extremely short period of time may be so many as to essentially flood the market, dropping the price to near marginal cost almost immediately.

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Laddas ned direkt. We witness teenagers being sued for 'pirating' music - and we observe AIDS patients in Africa dying due to lack of ability to pay for drugs that are high priced to satisfy patent holders. Are patents and copyrights essential to thriving creation and innovation - do we need them so that we all may enjoy fine music and good health?

Across time and space the resounding answer is: No. So-called intellectual property is in fact an 'intellectual monopoly' that hinders rather than helps the competitive free market regime that has delivered wealth and innovation to our doorsteps. This book has broad coverage of both copyrights and patents and is designed for a general audience, focusing on simple examples.

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Against Intellectual Monopoly by Michele Boldrin | | Booktopia

The authors conclude that the only sensible policy to follow is to eliminate the patents and copyright systems as they currently exist. Passar bra ihop. Recensioner i media.