Capitalism and monopolism

[Steve Schear]

At 08:40 PM 5/4/2003 -0700, Andy Lopata wrote:
>On Sunday, May 04, 2003 3:18 PM, Adam Back wrote:
> >Anyway my view is that what props up software virtual monopolies is
> >the current IP laws.  If they were revised to remove copyright, and
> >patents I think it would help level the playing field.
>
>Removing patents would undercut your argument for the market working well in
>the processor markets.  Removing patent and copyright protection for
>software would be great, but politically unrealistic (because of the power
>of the copyright content cartels among Congress).  However if Freenet, or
>some other technology, makes untraceable anonymous file-sharing effective
>and wide-spread, it could mean the effective end of copyright for digital
>materials.  On the other hand, if the anti-copy technology produced through
>agreement between MS, the processor producers and the copyright cartel,
>becomes a reality, it could severely hamper, marginalize, or effectively
>destroy any type of anonymous file-sharing technology.  I think that IP in
>general is a bad idea, especially when there are other methods of
>compensating creator's for their works.  Those who argue that the market is
>the best way to produce innovation and a better world rely on the false
>gov't stamp of "property" on these non-rivalrous goods.

I gave a presentation at a conference a few years back in which I raised 
the idea that since Intellectual Property (e.g., trademarks) aren't 
(property), its really a lease, that our society should consider setting 
limits on the market penetration (say 50%, which is already in excess of 
the what many economists call the "friction free" point wherein companies 
can continue to gain market share merely by dint of their already 
considerable presence) of single companies in markets whose size (the 
therefore probably importance) exceeds some minimum threshold of the 
GDP.  However, instead of enforcing these limits via the Department of 
Justice, they would become a civil matter and one's competitors can use the 
courts to strip a company of its sole lease on a trademark or patent 
applied to this market.

steve