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This post is a response to the question posted by @leighwelch :
"What problems could arise from getting rid of all intellectual property laws?"
I think the biggest problem that could arise from the removal of intellectual property laws is the disincentive to innovators and entrepreneurs to put time and money into developing solutions. People innovate because they think they can capture some of the value the innovation can add to society. These innovations cost time, money, and effort, but the entrepreneur decides that the value to be gained outweighs these costs. Intellectual property laws incentivize innovation, particularly for entrepreneurs with relatively low resources.
If intellectual property laws were removed, these innovators would not be able to guarantee that they will be able to capture any of the value from their innovation, even if that innovation proves to be very valuable to society. Intellectual property laws prevent anti-competitive practices in business with lots of resources.
I will illustrate with an example. Let us say I have an idea for a great innovation in drones. With patent laws in place, I know that no one else will be able to use my own work to take a share of the market from me. With this in mind, I do the research and development to create my drone innovation. I can then start selling my drone, giving value to consumers and capturing some for myself. If a competitor with lots of resources wants my innovation, they can purchase it from me. Then the consumers needs are better satisfied, I am compensated for my work, and the big business still captures some value from my innovation.
Now, If patent laws are removed, I have two options when I have my great idea. I can either abandon it if I think a company with more resources will outproduce me, in which case the innovation is never developed and that value is never added to society. If I still want to go through with my innovation, I do so with great secrecy. However, eventually it will be introduced to the market, and a competitor will be able to get ahold of it. If they have more resources than me, they can produce more, faster, and they did not have any of the costs of R&D. I fail as an entrepreneur and some other company has a monopoly on my innovation. The only winner is the company With the most resources.
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