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Mises Economics Blog

The Tao of IP

October 31, 2008 12:27 PM by Stephan Kinsella | Other posts by Stephan Kinsella | Comments (4)

When I saw the title of this Cato podcast--"Intellectual Property Versus Reason" (October 20, 2008)--I was hopeful and interested. Then I noticed it's an interview with the Nobel-winning, er, physicist Robert B. Laughlin, author of the new book, The Crime of Reason and the Closing of the Scientific Mind. Physicists and engineers are notoriously scientistic (see Yet More on Galambos; also Galambos and Other Nuts, Libertarian Activism--comments and C.P. Snow's "The Two Cultures" and Misesian Dualism). But, still, the title implied Laughlin thinks IP is, well, unreasonable (Cato scholars' IP positions seem to be mixed and largely utilitarian).

As I listened to the 16-minute podcast, I had a succession of impressions. For the first 6 or so minutes, I could not tell whether Laughlin was pro- or anti-IP. I know a bit about IP but I was not even sure what he was talking about much of the time. Oh, Laughlin is articulate enough--he speaks slowly, ponderously, and often pauses dramatically, as if struggling to pick just the right Deep Thoughts in response to Serious Questions--and even pronounces a French word or two properly. But soon it becomes obvious that his views on IP are just a mess, and he is, indeed, infected by the scientistic virus that physicists are susceptible to.

It soon become clear that Laughlin believes there is a tension between economic prosperity (which requires IP) and "human rights" (in particular the "right to learn," which IP impinges on). At first he seems to be very concerned that human rights will "give way" to IP and economic prosperity--even pessimistic about this--even while he himself seems to grant that we ought to be concerned about prosperity--and, thus, IP. So he's pessimistic that IP is infringing the human right to learn, yet he not only thinks nothing can or will be done to stop this--after all, we've now entered the information age, where IP rights are even more important to economic prosperity--he even seems to think that we should not abolish IP. We need to "supply the data" to "the legislature" (Congress), and achieve the right "balance", even though he admits he doesn't know what the right solution even is--it's "above my pay grade." Naturally, then, he doesn't blame the Congresscritters for how they have voted to date on IP issues, whether pro or con; their efforts are sincere and based on the best data possible. One wonders why he is depressed, or why he even wrote a book. I guess Nobel laureates can sell just about anything they slap their name on, which is reason enough.

I can't bring myself to read his book now, but from this interview it seems apparent that he holds a number of erroneous views: that both the state and the democratic process are legitimate, and that legislation is the right way to make law; that IP is pro-property rights; that IP is necessary for and promotes prosperity; that there is a conflict between human rights and economic rights; not to mention his implicit scientism. In his confused attempt to weigh in on legal and economic and policy issues he reminded me a bit of physicist Fritjof Capra's New Agey The Tao of Physics (hence the title of this post).

A few other things to note: from the Cato description of his book:

"Though we may feel inundated with information today, Nobel laureate Robert Laughlin argues that intellectual property laws and government security demands are increasingly restricting access to the most useful information. Government rules and businesses' legal pressures to sequester information threaten the development of new knowledge, he says. The rights of free people to investigate their world are threatened. Laughlin's fresh perspective and light, sometimes whimsical, bent do not mask the central warning of his readable book: that we risk bequeathing our heirs a world where knowledge is criminalized and our intellectual tradition of unfettered inquiry is lost."

So he sees IP as "criminalizing" knowledge ... yet is not completely opposed to it. So we need only a reasonable degree of criminalization of knowledge. I guess Laughlin chooses IP over reason... sometimes.

Publishers Weekly (from the Amazon.com listing) identifies some of the weaknesses in Laughlin's book:

"The provocative premise of this short book is that even as we appear to be awash in information, governments and industry are restricting access to knowledge by broadening the concept of intellectual property to include things as diverse as gene sequences and sales techniques. According to Laughlin, the right to learn is now aggressively opposed by intellectual property advocates, who want ideas elevated to the status of land, cars, and other physical assets so the their unauthorized acquisition can be prosecuted as theft. With examples drawn from nuclear physics, biotechnology and patent law, Laughlin, a Nobel laureate in physics, paints a troubling picture of a society in which the only information that is truly valuable in dollars and cents is controlled by a small number of individuals. But while Laughlin poses urgent questions, he provides neither in-depth analysis nor potential solutions. Many intriguing arguments--for example, that electronic technologies such as the Internet, which inundate us with useless information, are not instruments of knowledge dissemination at all but agencies of knowledge destruction--are offered but none are usefully explored.

So Laughlin views IP as "restricting access to knowledge"--if he instead viewed IP as an infringement of property rights, he would have a harder time making the mistake of thinking IP is on the side of economic prosperity and property rights. The "right to learn," whatever that is, is not any primary kind of right, and would seem to be jeopardized by government education and propaganda more than by patent and copyright. Again, IP undercuts and infringes property rights, and harms innovation (see here, here, here, here)--if he realized this, he would not set up the false alternative of prosperity versus human rights. And the idea that IP is more important in the information age is also flawed.

Comments (4)

  • pieniadz
  • i reckon that the vast majority of scientists(proponents of labour theory of value) seem to be afraid of the fact, others can use their innovations without paying them any money, what i think is the antonym to something like scientist duty to humanity.

  • Published: October 31, 2008 7:00 PM

  • Fephisto
  • I remember reading an article while walking through the halls of my alma matter's mathematics department that had an argument akin to, "What if you had to pay a $0.05 royalty every time you used addition?"

  • Published: October 31, 2008 9:05 PM

  • alansmithee
  • I just read your 2001 working paper on IP and found it really quite stimulating. Even though (for myself) you basically reiterate my own views on the matter it was good to hear someone more scholarly than I give this position, and also to have a wealth of citations for me to follow up on.

    I think the main issue that confused even liberty minded individuals about IP is the scarcity thing. I get the impression that if one could just explain that 'ideas are not scarce' and somehow manage to convince IP advocates of this then the pro-IP arguments fall apart. To debate them on issues of economic prosperity/utility (while still a good stick to hold) is really just counter productive appeasement.

    For me personnally this is enough: "The rights of free people to investigate their world are threatened."

  • Published: November 1, 2008 6:59 AM

  • Valerie
  • I get the impression that if one could just explain that 'ideas are not scarce' and somehow manage to convince IP advocates of this then the pro-IP arguments fall apart.

    A scarce enough prospect - the one to manage it could very well become a rich man under today's laws. ;-)

    I have read hours' worth of arguments going back and forth on the subject (long ago in the comments of articles such as this one - it was my introduction to the IP controversy) where, I believe, Mr. Kinsella himself had done a very fine job supporting his position. So much so that I lean very strongly in his direction on this matter - not that my opinion matters. But his main antagonist would not bend (I think he was a man intent on making a very good living as a writer). I came away frustrated, not fully comfortable with the idea of absolutely NO IP laws.

    I think it has everything to do with this modern day entertainment society in which we have all become thoroughly immersed. Not to mention the celebrity status that goes along with it. Most of us have been overwhelmingly educated in an environment that gives great attention, praise, and honor to "Great Men" and Famous People and their words and works. We grow up wanting to be like that in some fashion.

    We grew up watching movies and TV, seeing musicians being elevated to idol status and learning their names. I suspect that the vast majority of Americans have at some point in their lives - likely many times - fantasized about being Famous. We've dreamed of being a famous writer, actor, musician or what have you -- of the accolades and especially the riches that we expect to go with it.

    Even if you have grown up and shunned such silly notions, a part of you still may hold a special place in your mind in favor of it. Don't you still get a good feeling somewhere deep inside when one of your favorite actors, writers, or musicians makes a "good show of it," or feel at least a bit of dread when they flop? (Or is that just me?) Who are these people, really, and what makes them SO worthy of our notice?

    Where would TV and especially movies be without IP laws? (Where would our society be without - in the words of Neil Post - "Amusing ourselves to Death?") Actors wouldn't be rich and famous, for the time wouldn't be worth the money unless movie tickets were priced too high for most people to afford (or the production cheesy) - thus self-defeating. Is it true that actors and singers were once popularly seen as low-brow and maybe just a little creepy?

    And full-time writers would be extremely few, and back to the lower end of the economic spectrum, or at least endowed by a rich uncle or supported by a spouse, or some such thing. Most writers would be doing it for the good of society and in their free time from their more financially productive employment.

    Life as we know it would be utterly shattered.

    If IP laws never existed, Obama wouldn't be on the verge of the presidency.

    I'm thinking maybe we would all be a whole lot better off.

    How much longer are we going to allow our minds to be thus controlled? Can't we find better things to do with our time? What a very strange era we live in compared to the rest of world history.

    And it seems to me that without fiat money and the Fed, we would have never gotten to this point.

    I'm sorry for having gone on so long, but I am not known for being "succinct," though I have tried to hold back.

  • Published: November 2, 2008 1:16 AM

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