This paragraph :
A chemist produced medical tablets, which are of the same standard as any large pharmaceutical corporate. She found a chain of pharmacies , which required her services for cheaper medical tablets. She could easily undercut the large corporate due to their massive overheads. So she traded her tablets, which she sold on a large scale, for industrial property. For me this is exactly what the above paragraph from the book explains :) One person value for other value …
Makes me wonder how copyrights/patents would be controlled in a free market. Personally, I think that they are currently too extreme, but where to draw the line?
Assume the Pharma company spent 1000 man hours developing the medicinal tablets. Whereas, the chemist was able to reverse engineer the tablet in 20 minutes. She can sell for 10% of the Pharma, and she was able to "develop" the tablet for 0.03% of the expense that Pharma spent to figure it out.
I would argue that the free market would enjoy the less expensive tablets. I don't think it would be fair to Pharma that they will never see a return on investment. However, I also don't think it would be fair for them to hold the exclusive rights to a tablet, just so they can maintain their high price, even after the return on investment has been achieved.
I guess a similar argument would be if a whale were to post this article as if it were there own without getting permission from @jacor.
No need to intrude into the transactions of others. If I sell you a Donald Duck baseball cap, claiming or implying that he's my original creation, I have defrauded you.
If, however, you want to buy one of my Donald Duck baseball caps, knowing full well that its a "counterfeit" copy made without permission of the original inventor/creator, then nobody should be interfering in our voluntary transaction.
Those who value inventiveness and creativity can buy solely from the product's originator, chasing for fraud anyone who falsely claims the title, and those who don't care don't have to.
Thank you for the comment @mattclarke . You used a very good example with the counterfeit products. Free society and a free economy is all about accountability and responsibility.
The way I understand the Free Society is that it should not be necessary to manage the patents, as it will be owned by the community and not by 1 person or company. I might be wrong. The theory is that we as a society will not want to steal patents to make money of it, hence no reason to manage it. You provide your services / value to the community from the talents that you have, and everybody returns value to you through their talents. I might be totally wrong, but this is how I currently understand it.