I have recently taken the time to review a particular thread,
Read this before having an opinion on economics" which was begun (by bitcoin2cash) in support of a particular book "Economics In One Lesson." by Henry Hazlitt. I have decided to begin a new thread for several reasons. Firstly the name of the thread and the issue it was swiftly co-opted by,(that of IP) made a tangential subject of Hazlitt's book, while the name of the thread became a misnomer. Second the above thread didn't for my BTC, tend towards any equitable resolution, but rather, it trailed off without fully addressing some fundamentals, which were only lightly brushed upon. Finally that thread has been dead for sometime, so I thought I would try to give the Intellectual Property debate some air, with a more fitting title and start again.
Having read the thread completely, I also read through Economics In One Lesson, for some context over the whole thread (in case it was relevant). I was, I must say, presently surprised at what turned out to be a very inspiring affirmative book, that reminded me, that the more I learn about economics, the more it seems I already knew. Not to be a smart ass, but I've been saying the same sort's of things for decades and Hazlitt only confirms them. In light of the above thread, I was expecting an obtuse diatribe of sophist rhetoric, to justify a preconceived agenda. I think it's quite instructive that Hazlitt's book, lends so much import to technical innovation and invention and following the central theme of the book illustrated by the 'The Broken Window' analogy, we can clearly see an irony emerge in the application of this principal to the special pleadings of the Anti-IP brigade. In this book, Hazlitt makes no overt pronouncements of his views of Intellectual Property, but If read without bias, the treatise makes a case as damning to the special pleadings of Anti-IP crusaders as any special interest. Perhaps the most overt testimony Hazlitt makes for an endorsement of IP though, is the very first thing presented in the book. No not in the first chapter. Not in the preface. Not even in the Contents list, but before all that, his book sets the record straight:
ECONOMICS IN ONE LESSON
Copyright, 1946, by Harper & Brothers
Printed in the United States of America
All rights in this book are reserved. No part of
the book may be reproduced in any manner
whatsoever without written permission except
in the case of brief quotations embodied in
critical articles and reviews. For information
address Harper 6 ̄ Brothers
r.-c
I should note, this is not issue of contention for Hazlitt, who implicitly endorses IP in the tenets of his Economics, as well as embracing it as a function of his professional life. The irony goes to those who would elevate this publication with the merit it so clearly deserves and yet fail so completely to apply its lesson to their own position.
I can honestly declare I have a fair degree of ambivalence regarding IP as it stands today, not because I feel that it should be abolished, but because it so often serves the less deserving interests at the expense of those who it should be protecting. I personally have failed to find the capital required to launch innovations due to the complexity, paperwork and expense of patent law. I have also, foolishly (without non-disclosure agreements), trusted people and consequently had innovations that were the earnest fruits of my mind, used by people I can reasonably assume would not have otherwise had them and commercialized for good profit. Had I been better placed or supported, I would have been the (I will say 'rightful') beneficiary.
If anybody is going to benefit from the providence of a good idea, then it should at least
in some part be the innovator themselves. The problem in a world without any reward structures for intellectual providence, is that it not only destroys the incentives of the creative endeavor but leaves those who would innovate in the gutter, while those who have no part in the creation of a valuable idea, to profit from the spoils. There should be no need to restate the free-rider problem. What concerns me, is not to restrict the liberty of the end-user from having the object and using it, but the misappropriation of the creative process that adds value to the finished product.
Argument's of shrill, petulant indignation. for the liberty of a person to obtain and posses the creative product, once divorced from it's physical medium, give no consideration for where the value of the thing comes from. All value is equated to the material instance of the thing and none to the value of the intangible creative component that makes the thing so much more than just a blob of matter. Disregarding the value proposition, in the creative processes is as limited and biased as anything Hazlitt mentioned in his book.
One thing we should dispense with from the outset, is the petulant recourse to a slippery slope of escalating retaliation, that some Anti-IP libertarian crusaders like to resort to. A LAW is a LAW. That doesn't guarantee it is morally just, not by any means. Almost everybody knows laws they find ethically unsatisfactory. I might prefer, to be allowed to go wandering naked in the streets and claim this liberty to be an unalienable right. I have the right to take this position as a matter of principal. In practice however, I have to acknowledge that I am a member of a (however imperfectly) democratic society and that however intensely earnest my own convictions may be, I am not above the law and that the rule of law applies to all the laws I do like, as well as those I don't.
The simple fact that
any law when disobeyed, will lead to a similar escalation in punitive repercussions, does not give recourse to any argument about the ethical validity of the particular law that is being enforced. Whether it is littering loitering or looting, you will be expected to face the consequences. And yeah the law can be a proper ass. Most libertarians have a whole slew of contentious bones to pick, before we proclaim we're satisfied with the ethical values of the law. But as they say in the big house, if you do the crime, be prepared to do the time.
It's sufficient to say that you disagree with a law, but what makes it wrong, should not rely on the fact that it will lead to repercussions if not obeyed. The argument that Intellectual property is right or wrong either way, should stand or fall on it's own merit, not on the consequences of it being enforced. It goes without saying that an unjust law encroaches on our liberties but disobeying law is not one of our liberties. Pretending that it shouldn't be law, because of the consequences implicit in disobeying that law, is simply begging the question.
In a similar vein, I see there is a tendency to appeal to the un-policeable nature of IP law, such that if by some furtively covert means you could sidestep it, that somehow demonstrates that there was no ethical basis for the motive behind enshrining it in the first place. I'm referring here to the convoluted scenarios being entertained about how the contents of a book or a blueprint might fall into the wrong (or right - depending on your view) hands. Whether by X-ray glasses, telescopes or by the transgression of a third party, the laborious details are hammered out to show just how the Anti-IP crusader can
'get away' with an act of espionage, as if to proclaim that the futility of policing the law, somehow demonstrates their ethical precedence, in claiming it to be unjust.
What needs to be considered before all else, is the underlying justifications for our society having invested our reward system in recognizing intellectual accomplishment and the value proposition, engendered by those who are able to manifest it. What is considered to be
'property' by this standard, is the product of the social collective, who value the intellectual fruits of talented minds, that are (and rightly should be) entitled to fair rewards for their innovative creativity, toils and tenacity, from inspiration through, research, design, prototypes and on to licencing and production. It's hard enough for the inventor as it is to catch a break and the proposition that coming up with a good idea is easy, is what you might expect to hear from any damn fool who literally has NO IDEA!
You tell me that you have come up with any
ORIGINAL idea that is as remotely useful as a paper-clip for instance, and that you have been through the trial and tribulations, from the first moment of inspiration to seeing you idea realized and rolling off the production line,
then you tell me that good ideas are plentiful. You tell me how pleased you will be to stand there, having made neither cent nor satoschi, for the benefit you have bestowed upon the world, while some greedy tyrant, who sold out on you or just used your idea if you gave it up freely, is now on the way to being worth millions. I doubt that anybody so flippant as to claim 'ideas are plentiful', would ever have the slightest chance of ever being in this situation. Inventing is like rescuing victory from the jaws of defeat and almost nobody wants you to win, no matter how damn honest you are. Let me see the anti-IP crusader who has genuine valuable ideas, that are worthy of pilfering for profit set about realizing them or giving them up freely.
Otherwise, I would like to be enlightened exactly how, without the basic protection of IP, an honest but poor, diligent, hard working inventor, can have any hope of creating ideas so valuable that are worth stealing but be granted the benefit of taking them to the market. The original idea is obviously a subject of some value if anybody else might like to make use of it. That by the way, is NOT increasing the plenitude of ideas (hint: It's still the same idea if you simply copy it.). You cant proclaim that ideas are plentiful because they may be copied. Copying an idea and originating it are worlds apart In principal. If you are talented enough to have your own ideas worth paying for then you shouldn't have any need to endorse the profiting from ideas that are originated by others. Go have your own ideas if you profess them to be so plentiful. And
nobody is precluding anybody from possessing and using the manifestations of an idea that is protected by IP. The example given in 'Against Intellectual Property', which point's out that: "If I invent a technique for harvesting cotton,
your harvesting cotton in this way would not take away the technique from me." is a prime example of disingenuous sophistry.
Theres a huge difference between being allowed to buy a cotton harvester, manufactured under licence and incorporating a royalty for it's inventor and
not being permitted to use an instance of the intellectual property. You will not be asked to pay the price of having the monopoly to USE something, but simply to manufacture and market it. Of course the idea of invention are non-exclusive, that's the beauty; the inventor recognizes a need and solves a problem that is not just manifest in the single instance s/he first sees it and solves it, but by generalizing that solution s/he see the potential to solve the same problem on a much wider scale. It seems to me that the Opponents of IP cant make this distinction between USE and manufacture. In order to prevail in their views, they hold to rigid semantics of arbitrary definitions, wherein
'work' can only be valued if it is physical labor and
'possessions' or 'belongings' must be tangible assets not some some intellectual concept that you cant directly touch, taste, see, hear or smell. The concepts of their value system are held to be tangibles and that is that.
Since discovering bitcoin I have learned so much about economics and I have plenty more to learn yet. One thing I had always known, but has been reiterated over and again, in everyday life it is so easy to habitual forget, is that
ALL value is subjective. I had long known and acknowledged the momentarily enlightening principal, that something is only worth what somebody is prepared to pay for it. But to carry that with me and recognize that things do not have any intrinsic value is another matter. We all subjectively value things on our own terms. Yet it's hard not to think as if the ounce of gold or glass of beer is valuable in it's own right. We know there are many others who will agree with us and conspire to
place value in the object. We are the ones who objectify things with value, whether individually or collectively. Nevertheless, all value embedded in anything of human value, originates from the subjective idea that is borne of this primal subjective desire. Value itself is an idea. There is nothing less legitimate about the value of an idea, just because it has no immediate manifestation in the physical world. As soon as it does, we may throw away the, idea and only value the item that has benefited from incorporating it, or we may see that the intellectual providence or talent imbued in it by creative thought, is intrinsic to it and what gives it value. It is subjective value by any measure.
What has happened in history, is that we have started out with physical things, which can have value, only by virtue of their utility function or aesthetic appeal, then progressively the value of the creative intellect or art, has been liberated from the utility of the tangible medium. A famous sculptor or painter could be rewarded well for the providence of their talent, but they could only expect a one-off payment for each piece of art they produce. Nevertheless the renown and popularity they might well deserve for their creative product, is likely be manifest in the inordinately high price paid if the art pieces were in good demand and were perceived subjectively to have aesthetic (or perhaps abstract conceptual) value. It's far from likely that highly prized art such as this is likely to have any price correlation to the canvas, the paint or the timber in the frame. The materials that make the piece, in other words, you might ironically say, are actually immaterial. The reward for the merit of the artists talent is practically the whole essence of the value and the confinement of this art to it's physical medium contributed to it's rarity. The renascence painter may get no royalty today, nor would his descendants, but then the paintings sold could command higher value, because they were each one of a kind.
Moving on to the book publishing industry of more modern times, the ability to print copies of a book, enables the talent of an author to be shared by many more people, but obviously the individual rarity of the creative product is not as potent. Publishers aspire to selling in volume because theirs is a mass produced product. The author is rewarded the same way but to a lesser degree. If their work is highly prized they make more even if they make much less per unit value. It's easy to see that the publishers have a job to do and have to compete in the market for business. They ad an important component to the value that is the whole value of the book. Likewise the printers contribute paper ink and printing services that are factored into the whole price. The bookstores buy at wholesale and add their markup to cover expenses and profits, so that we can go shopping and buy a book. Now the Anti-IP crusader claims that the only one not deserving of payment is the one who wrote the book in the first instance. The one who provided all the creative talent to begin with, is begrudged the right to lay claim to the creative output of their own mind.
Sure you can point out that you have the physical means to download and print a book and that doing so is nobody's business because you are only using your own equipment. That A) what you do with your own equipment is your own business and B) any effort to impose a restriction on you is an imposition on your liberties. The question is this. Let's say you want the physical book because you want to give it to somebody (who still likes physical books) as a gift. If you HAD bought the book from a bookshop then, and so you had happily paid for the physical product of paper and inkalong with the editors services and the service that the bookshop provides, and everybody involved with the production of the book; are you then, still going to begrudge the only vital and necessary contributor to this finished product; the author? In that protracted gravy train, of middlemen and coat tail jockeys, would you choose the only person with any real talent and the one who provides the primary reason to produce a book in the fist instance, and say that the dollar they earn from a $20 book is unjustified? If their creative contribution were not worth paying for, you might as well go buy a pretty blank pad of nicely stationed paper, bound in a fitting cover and give that to Aunt Betsy, saying "I would have bought you the latest Daniel Steele title, but I couldn't bring myself to pay royalties for the authors talent".
Laws are fully intended to impose on your liberties. Are we so self possessed as to claim that because we own our own car, gas pedal and foot that our liberty is being imposed upon if we can't go screaming through quiet suburban streets at 100 MPH? The risk of hitting a child chasing a ball onto the road might be nothing but an intangible, remote probability, at least till it happens. If the argument holds that it's your car and your foot and nobody has the right to tell you what to do with it, then undermining somebodies livelihood with your unlimited liberty to use your computer and printer may quite sensibly seem have little consequence. The point is not to invoke a contrived
reductio ad absurdum equating copyright violation to killing children, but that we agree as a society, to limit the consequences of some potential outcomes, by surrendering some liberties. It's simply not true that just because you own something, it's your unassailable right to do with it, whatever you wish.
I'll be the first to admit that the copyright laws are way off beam, especially to the extent that they confer the rights to royalties well beyond the lifetime of the author/artist. But to contend that they should be abolished completely is also way beyond the pail. In exercising your 'liberties' to the extent of using your own equipment for self serve entertainment, I am somewhat ambivalent there. Most of what we help ourselves to that way, comes under the heading of stuff we never would have never paid for, if we had no choice. So there's an argument to be made that the artist is not loosing a paying customer. But what of the many paying customers who do willingly buy the real thing? If you remove the mechanism by which the writer/artist/performer is assured of their reward, there should be something in place to ensure they are offered what they deserve. If anybody should be cut out of the gravy train, the least deserving of such reform is the talent.
In music and other multimedia it's becoming more practical to get rid of the middleman and I have much less problem with that. I'd like to think people could be generous and voluntarily offer the artist a token of appreciation for their work, but in entertainment and aesthetic arts, it is much easier for the performer/artist to bid for their own reward. They are in the business of being known, popular and liked. It certainly seems unfair though, that two or three generations of a pop star's descendants/beneficiaries, get to be born with a silver spoon in their mouths and want for nothing, just because their granddaddy/mommy was somewhat talented. You might give a little coin voluntarily to who ever you like while their music/performance gives you entertainment, and that would rightfully dry up in the timely manner as the fans dictate.
You are however, hardly likely to buy a loaf of bread at the store, and say to the assistant: "Here, this is a 10 cent tip, because I want you to see too it, that the guy who invented the little plastic tag that keep my bread bag closed is rewarded for his inventive contribution." Ten cents is all he might cost you in your whole life, for his part in the cost of taking this innovation to market, but without IP laws he might receive nothing and possibly never did. The huge number of similar innovations we regularly take for granted, are embedded into our multitudes of products and services in such a way as we would never hope to individually reward the creative talent that has manifested in them. Moreover, we expect our products to compete on price so we want the best premium of value we can get, regardless of the fact that creative rewards are inbuilt. If anybody is taking a free ride there, it's not the poor inventor guy, who more often than not get's screwed over by the money people and marketing parasites. To axe IP wholesale, would do most damage to the deserving talent and intellectual benefactors of our current time.
Meanwhile there is still no valid philosophical justification, for why the virtuous
idea or
concept, should not be granted the imprimatur of a possession. It's a mater of fact that as a society we agree to do so, and that is because we have grown up in a world in which ideas have been gradually liberated from their physical constraints. The value of
anything is subjective and society on the whole, is better off if we seek to reward that which we perceive to have value. In particular where practical invention is concerned the
idea, if it is indeed a good idea, deserves some guarantee that just because it is comprised of intangible information, that the originator will not be sold short and their idea allowed to be stolen from them by opportunists, who will take advantage of the profitable value it may manifest without even acknowledging the originator.
It's all very well to cynically propose that you might have thought of the same idea independently but the purpose of patenting is to establish a priority. In a sense it's like solving the current block in the block-chain and 'staking a claim' to the treasure. I can remember the crude schoolyard protocol of 'finders keepers, losers weepers'. But that was often challenged by the plaint 'Hey! I saw it first'. Patenting establishes who has first rights to an original concept, even if the process is bewilderingly complex and expensive. We store information as a repository of value between the block-chain and our bitcoin.dat wallet files and so bitcoin demonstrates that information can be used purely as a store of value. We are way beyond saying that nobody can own information or a particular pattern. You can give me your wallet.dat file if you disagree. Information can be of mutual value and so it must be granted equitable protocols of origin, ownership and distribution. Who's to say what protocols are fair? I think we all are. I can think of nothing worse than the nihilistic anarchy, of throwing our arms up and saying "If you think of a good idea, it belongs to nobody". Even 'finders keepers' is more civilized and conducive of equanimity than that.
Sorry for the long rant.