《經(jīng)濟(jì)學(xué)與法律的對(duì)話》課件 3 16 17 Intellectual Property

PropertyvsCommonsThebenefitsoftreatingsomethingaspropertyAmechanismformovingittoitshighestvalueduseAnincentivetomaintainpropertyAnincentivetomakethingsTherightincentiveThecostsoftreatingsomethingaspropertyYouhavetomonitoruseandenforceyourrightsYouhavetobearthecostoftransactingoverit–considertollsvsfreetrespassTheremaybecoststoconvertingunownedresources,suchaswildernessland,topropertyHowImportantIsEachofThese?ThatdependsontheparticularthingthatmightormightnotbepropertyDoesithavetobeproduced?Istherealimitedsupply?Isoveruseaproblem?Howelasticisthesupply?Willnotgettingownershipmuchreduceit?Aretherecoststoassigningpropertyrights?Considerland.ItalsodependsonthetechnologiesforenforcingpropertyrightsConsiderthedifferencebetweenIPthatrequiresaprintingpressandthatdoesn’tTechnologiesfordetectingtrespassers.Burglaralarms.DogsWhatBelongsintheBundle?ConsiderthecaseoflandWhichrightsbelongtogetherWhichrightsareclearlymorevaluabletosomeoneelse?Whicharevaluabletotwoormorepeople?InwhichcaseyoumightgettheinitialassignmentwrongWhichraisesthequestionofhoweasilycanitbefixed?Thatgetsusbacktopropertyvsliability,transactioncosts,andallthatstuffOryoumightfindsomewayofdividingtherighttogiveeachpersontheparthewantsYouhavetherighttodigonyourproperty,exceptthatIhavetherightoflateralsupportOrofdividingitsothatonlythepartvaluabletobothmustbetransactedoverCoalrightsinPennsylvaniaOnlythesupportrightneedbargainingoverPropertyRightsforSpaceAssumewegetmuchbetteratgettingthingsupcheaplyWhatsortofthingsoughttobetreatedasprivateproperty?WherearethebenefitsofpropertyhighThecostslow?Volumeofspace?PhysicalBodiessuchasAsteroids?Orbits?GeosynchronousorbitsarealreadyascarcegoodSolidAngleontheSun?GlobalWarmingCurrentlyacommons:anyoneisfreetoputCO2intheair.Supposewebelievethatisaproblem,wanttochangeit.How?Propertyrights:Youcan’tputCO2intheairIfitaffectsmebyraisingglobaltemperature,sealevelUnlessyouhavemypermissionLiabilityrule:Ifyoudo,youpaymedamagesbasedontheharmtomePigouviantax:CarbontaxRegulationWhataretheproblemswitheach?Propertyrightssolution:Nobodycanlightamatch.Breathout?Lifeends.Liabilityrule:Ihavetosueyoufordamagesof.000001cent?Carbontax:Problemofestimatingtheexternality,monitoringCO2output.DirectRegulation:NeedpermissiontodoalmosteverythingUsualproblemsofinformationneededbytheregulatorsIncentivesoftheregulators—lotsofopportunitiesforcorruptionofvarioussortsIntellectualPropertyCopyrightislonglastingandeasytoget,patentshortandhard.Why?CopyrightisbettersuitedtobepropertybecauseItiseasiertomarkandobserveboundariesYoueitherdidordidnotcopymychapterAndifyoudidit’seasytoproveAccidentalviolationisunlikely,forthesamereasonthat…Thereisnoproblemofdepletingthecommons.TherearesomanypossiblebooksSomeoneputamillionmonkeysonamilliontypewriterstotrytowrite“Hamlet”Afteramillionyears,thebesttheyhadcomeupwithwas“Tobeornottobe,thatisthegrglflx"IfIdidn’twritemine,nobodyelsewouldSoIamremovinganegligibleamountfromthecommonsofbookstobewrittenButallofthisisforprotectionagainstliteralcopyingLookandfeelandderivativeworksraisemoreofaproblemBecausetheyhavefuzzierboundariesPatentisworsesuitedtobepropertybecauseBoundariesarefuzzyandinvisiblePatentracesareevidenceofaproblemofdepletingthecommonsofideastobeinventedWhatistheRightIncentivetoCreateIP?ItdependsonthevalueproducedbytheIPConsiderthealternativeofusingasystemofrewardsHowdoyoudecidehowmuchrewardeachbookorinventiondeserves?Patentandcopyrightprovideanautomaticsolutiontothatproblem,sinceHowmuchpeoplewillpayyoutouseitevidenceofitsvalueButthereisacosttothatmethodMarginalcostofonemoreuseofanideaorexpressioniszeroButthelicensingfeeismorethanzero,sothereisadeadweightcostPeoplewhovalueitatmorethanMCbutlessthanthepricedon’tgetitItalsodependsonhowsoonsomeoneelsewouldproducethesameIPWhynotpermanentcopyrightprotection,sincenobodyelsewouldeverwritemybook?Thereisatradeoffbetweenalittlemoreincentive,andthedeadweightcostofmonopolyThesameargumentimpliesthatpatenttermshouldbeshorterthanthesimplerule“setincentivetoproduceequaltovalueofwhatisbeingproduced”impliesLouisKaplowwroteanarticlepointingthisout.Iwrotethesamearticleataboutthesametime,onlymysubjectwascriminalpunishment—theincentivenottocommitacrimeTheargumentinbothcaseswasthatincentivesarenotfree.Ifanincreaseinincentivethatcausestendollarsmorevaluecoststwentydollars…Orlessharminmycase(alaterchapter)TheExceptionstoCopyrightProtectionScenesafairedoctrineIfthereisonlyoneway,orafewways,ofsayingsomethingSayingsomethinginthatwayisnotprotectedBecausecopyrightingthatwaywoulddepletethecommonsFairUseexceptionSmallinfringementscostmoretotransactoverthantheyareworthAndsomeusesarebelievedtoproducepositiveexternalities,soimplicitlysubsidizedattheexpenseofthecopyrightholderBytreating(some)educationalandscientificusesasfairuseButthereisaproblemoffuzzybordersRequirementsforPatentProtectionNoveltyIftheideaisalreadyknownNothingofvaluehasbeenproducedNon-obviousnessIfanyonewhoneedstheideacaneasilyhiresomeonetoproduceitNotmuchofvaluehasbeenproducedNotworthmorethansixmonthsofprotection—whichisn’tanoptionUsefulness.Olddefinition:NotperniciousStory:“anewinventiontopoisonpeople,ortopromotedebauchery,ortofacilitateprivateassassination,isnotapatentableinvention”Soviagrashouldnotbepatentable,JamesBonddevicesareRicardvsDuBon:“It’spernicious,sothepatentIaminfringingisinvalid”Butnotillegal,soIshouldbeabletodoittoo”Argumentfortheolddefinition:Iftheinventorwantstowastemoneygettingapatentonsomethingnobodywantstodo,whyshouldweobject?Newdefinition:Uselessmeansnotuseful.Yet.Kitch’sProspectTheoryofPatentTherearetworeasonstogiveaprospectorrightstowhathefindsOneistorewardhim,givehimanincentivetofinditTheotheristocreateapropertyrightthatcanbeusedtobetterdevelopwhathefindsConsiderthecommonpoolproblemappliedtogoldorsilverminingTheoredoesn’tflowlikeoilorgasButknowingwhereyouhavefoundittellsmewheretodig—nexttoyourholeWhichnotonlyreducesyourincentivebutwastesresourcesEdmundKitcharguedthatthesameappliedtopatentsAninventionrequiresfurtherdevelopment,otherinventionsThepatentholderhastheincentiveandabilitytocoordinatethatprocessJustashomesteadingturnspubliclandintoprivatepropertyMakingitpossibletoinvestinimprovingitCoordinateusesofitPatentsviewedashomesteadingideaspaceTheArgumentAgainstIntellectualPropertyInthe19thcentury,therewereseriousargumentsagainstIPSomemadebypeoplewhosawitasinconsistentwithliberalfreemarketprinciplesSwitzerlanddidnothavepatentlawuntil1907BoldrinandLevine,TheCaseAgainstIntellectualMonopolyOneargumentisthedeadweightlossofchargingwhenMCiszeroInaddition,theyarguethatpatentlawretardsinnovationThefirstinventorcanblockimprovementsonhisinventionTheyclaimthatsteamtechnologieswasfrozenuntiltheWattpatentexpiredWhichraisesthequestionofwhyhedidn’tlicensetheimprovementsTheydescribemechanismsfordealingwiththefreeriderproblemSinceinvestorsincoalminestypicallydiversifiedtomanymines,theydidn’tmindifimproveddesignsinoneminegotcopiedinothersAndthefirstinventorgenerallyhassomefirstmoveradvantagesJusttheoppositeofKitch’sapproach,arguingcommonsarebetterforideaspaceComputerLawIsacomputerprogramawriting?SourcecodeonpaperobviouslyisWhataboutmachinelanguagecodeburnedintoaROM?ThecourtsdisagreedontheanswerTheprecedentwasaplayerpianorollRulednottobecoveredbycopyrightEventually,CongresssteppedintolegislatetheanswerTherightsolutionbutthewrongquestionNot“isaprogramawriting?”butDoesaprogramhavethecharacteristicsthatmakecopyrightappropriateforwritings?Theanswerisitdoes–hardtocreate,easytoreproduce,unlikelytobyaccident,…ReproducingthePCROMs:WhytheyneededtodoitCopyingwouldviolatecopyright,butindependentcreationdidn’tSotheyusedthecleanroomapproachPerhapstheyshouldhavecopiedandclaimedthescenesafaireexceptionTherebeingonlyonewayofwritingtheROMsthatwouldrunthePCprogramsTheDeathofCopyrightSofar,IhaveassumedthatcopyrightiseasytoenforceItisifcopyingisdonebyfirmswithprintingpresses,easytofindandworthsuingButnowthatanyonecaneasilycopydigitalworksandsharethemDigitalcopyrightislargelyunenforceable.Possibleexceptions?SoftwareusedbylargeorganizationswhoseemployeescouldbetraythemforpiratingFancydigitalrightsmanagementschemestomakesharingharder,but…AnyprotectionofaworkfullyrevealedinoneuseisbrokenbytheanalogholePlaythecopyprotectedsongintoarecorderthendigitizeit—nowitisoutofprotectionWhatsortofworksarenotfullyrevealedinuse?AdatabasesuchasWestlawAgamesuchasWorldofWarcraftSohowdoyougetpaidtocreateIP?Patronage–the18thcenturysolutionCharity–Patreon.Thesametechnologymakessmallscaledonationseasy.Tie-ins—webyourbooksforfree,chargeforspeechesorconsultingOtherideas?ExamplesofIPThatAlreadyWorksThatWayTheacademicworldYoudon’tgetpaidtowritejournalarticlesInsomefieldsyouhavetopaythejournalYourrewardisinthepositionorpromotionyougetfrompublicationMoregenerallythereputationyougetOpensourcesoftwareContributingtoaprojecthelpsestablishcredentialsasaprogrammer,getsyouajobFirmsthatuseopen