Apparently, patents discourage innovation

Jason · Only in cartoons

Apparently, patents discourage innovation

john31584 · Zinc Saucier

Interesting, but I'm not sure how much bearing that simplistic simulation has on the real world.

For example, many third-world countries have tried to make necessary technologies cheaper and more widely available by loosening or practically eliminating intellectual property protections for certain products, such as pharmaceuticals. The government of a country might tell a company that if they want to sell their drug there, they have to let anyone in the country manufacture it in competition with them, or something like that.

It's almost invariably backfired, simply causing the companies to invest elsewhere. I'll admit that patent isn't really my specialty - I'm more of a trademarks and copyright guy, but I think the same basic principals apply: when someone creates an invention or creative work, they profit off of it more when they have, at least for a limited period of time, a right to prevent it from being misappropriated by third parties.

I'd say one of the bigger hindrances to the free dissimentation of useful information is the antitrust law of various countries which makes international licensing of intellectual property quite burdensome, and requires very significant concessions on the part of rights-holders.

-- Edited by john31584 on Thursday 2nd of July 2009 09:14:03 PM

Jason · Only in cartoons

I realize this doesn't defeat all IP theory in one foul swoop, but it certainly does raise questions. If these findings do not hold true in our markets, then it would behoove us to figure out why.

MATHSEX · MASTER BATOR

this is intellectual socialism, dag nabit.

it makes sense that by sharing industry-best practices and cutting-edge creativity among a broad spectrum of companies, a more efficient marketplace will emerge

john31584 · Zinc Saucier

And protecting property rights doesn't prevent this, it simply prevents people from stealing from one another.

Anyone who has a patent can license it to whomever they want.

MATHSEX · MASTER BATOR

john31584 wrote:

Anyone who has a patent can license it to whomever they want.

bah. licensing patents just detracts from the efficiency of the market

john31584 · Zinc Saucier

There's no "market" when people able to appropriate inventions for free, leaving their creators with no recourse.

john31584 · Zinc Saucier

Laws against shoplifting detract from the efficiency of the free market!

MATHSEX · MASTER BATOR

john31584 wrote:

There's no "market" when people able to appropriate inventions for free, leaving their creators with no recourse.

this competition forces any business that develops products to earn its market share. as long as a company can rip off other enterprises' ideas, then the demand for inventors will not be hurt. it also stands to reason that if there is less profit margin for any product and that the ability of enterprises to create products (from a free marketplace of inventions), then there would be an increased demand for newer ideas and inventions

Jason · Only in cartoons

Don't innovating companies "earn [their] market share" by spending hundreds of hours researching and developing new technologies?

MATHSEX · MASTER BATOR

according to that simulation, the costs of the hundreds of hours of r&d would be distributed among the firms in the intellectual commons