Now that unemployment has topped 10 percent, some liberal-leaning economists see confirmation of their warnings that the $787 billion stimulus package President Obama signed into law last February was way too small. The economy needs a second big infusion, they say.

It might be fun to think of similar headlines in history, e.g.: New Consensus in Salem Sees Too Few Witches Burned.

Under copyright law, someone who independently creates an original work similar to another author's original work is not liable for copyright infringement, since the independent creation is not a reproduction of the other author's work. Thus, for example, a copyright defendant can try to show he never had access to the other's work, as a defense. The reason for this is that the fundamental copyright is, well, a right to copy one's original creative work. By the nature of creative works that are subject to copyright, it is very unlikely someone would independently create the same novel, say, or painting, as another author. (And if copyright only protected literal copying, it would be much less a problem; but unfortunately it protects a bundle of rights including also the right to make "derivative works".) But, in the rare case where author 2 independently creates a work very similar to that of author 1, it is not an infringement of author 1's copyright, since author 2 did not copy anything.

Patent law is different. Very different. Most defenders of IP do not seem to be aware of this difference--one reason they should not be opining in favor of legal regimes they know little about. When patent defenders say that patent abolitionists are in favor of plagiarism and idea theft, they imply that patent law is like copyright law--that it simply prevents people from copying others' ideas.

Obviously, it should be. The Intellectual Property and Communications Omnibus Reform Act of 1999 did add a limited first inventor (prior user) defense for prior commercial users of "business methods"--see 35 U.S.C. § 273--but not a general one. Justice obviously requires that, at the very least, a general independent inventor defense be added to the patent system. To blunt its sharp, unjust edges. In particular, a defense should be provided for those who are prior users of, or who independently invent, an invention patented by someone else. This would greatly reduce the cost of the patent system since one difficulty faced by companies is that they do not know what patents they might infringe. If someone learns of an invention from another's patent, at least they are aware of the risk and can possibly approach the patentee for a license. But quite often a company independently comes up with various designs and processes while developing a product, which designs and processes had been previously patented by someone else. If the goal of patent law is to reward invention, it should be sufficient to permit patentees to sue people who actually learned of the idea from the patent--just as copyright infringement exists when someone reproduced another's work but not when it is independently created. A broad prior user right defense should be established, as well as an independent inventor defense that even a later inventor could use. (Pending patent reform legislation originally proposed to broaden the existing prior user defense by eliminating the business method patent limitation so that users of all types of inventions would have been able to use the defense, but this was removed from later versions of the bill. The Council on Foreign Relations study, "Reforming the U.S. Patent System: Getting the Incentives Right," recommends a prior-user right be adopted; James Bessen & Michael J. Meurer, Patent Failure: How Judges, Bureaucrats, and Lawyers Put Innovators at Risk (Princeton University Press, 2008), recommend an independent inventor defense--see the Introduction.)

Even pro-IP libertarians usually reluctantly agree that independent invention should be a defense, once you dispel their ignorance about the system they for some reason support (well, the reason is not that hard to see--it's lingering state-indoctrination, or some form of statism such as minarchism, or some unprincipled, incoherent grounds like utilitarianism). This is one of the aspects of arguing IP policy that infuriates me. Whenever you point one of these things out to a libertarian defender of IP, he will usually say, "well, I don't support that." So you say, "well, what do you support?" The answer is basically, "Hey, I'm not a patent lawyer; that's just a detail." I.e., they are in favor of some ideal patent system; not the current, statist one (though they oppose abolishing it or weaking it!), but a "libertarian" one (as if one could imagine a patent system concocted by decentralized courts without legislative power! [on this see my Legislation and the Discovery of Law in a Free Society]). In other words, they don't know what in the heck they are even talking about. They can't describe the system they favor, and are not willing to abandon a statist system they admit is unjust.

And they seem blithely unaware that removing the obvious, "problematic" features of patent law would largely gut it, resulting in an emaciated, weak patent system--a change that would be attacked by mainstream IP advocates as "harming innovation," in the same way that these libertarian patenteers criticize us patent abolitionists. Libertarian IP advocates are schizophrenic. They shy away from the obvious injustices of patent law, and would favor reforms that most normal IP proponents would recoil in horror from; while they try to maintain the facade that they support IP because they support innovation and inventors' "rights", even though they cannot tell you what their ideal libertarian patent system even looks like.

Don't believe me that providing an (obviously just) "independent inventor" defense would gut the patent system? I've been practicing patent law since 1993. I have lost count of the number of times I've been called upon by a client to analyze a patent that has come to the client's attention, that concerns it. What typically happens is this. Company A is producing or developing a product. They hear a rumour from a customer "Hey, I think that Company B has a patent on something similar to this." Or, they get a letter from Company B saying, "Hi, we attach a copy of our latest patent for your interest! If you want to discuss licensing, give us a call! <smiley face! we're all friends! it's all good! Don't file a declaratory judgment action against us, please! We wouldn't want to give you cause to sue us first, robbing us of the chance to choose the venue! <double-smiley-face> Love, Company B". So Company A calls me, says, "can you take a look at this patent? Are we in trouble? Are we infringing? Is the patent valid? If so, can we change our design to get around it? We'll be happy to pay your $30k fee for an analysis and opinion." Such a productive use of precious capital!

Now, what I want to emphasize here is that: in all the umpteen times I've done this over the last 15 or so years, I have never, ever, even once, seen a case where the client's engineers copied the patented invention. In every case that I can recall, the company designed its product on its own--using available technology, to meet the market demands--and then only later were made aware of some patent buried among millions in the bowels of the patent office. Then they panic, worrying that they might be shut down by an injunction by a competitor, or sued into the ground (for examples see my Radical Patent Reform Is Not on the Way).

No doubt in some cases there is copying. An entrepreneur espies a popular product, and makes a similar one; lo and behold, it turns out there were some patents, and so he is sued. Still unjust--what is wrong with emulation, competition, and learning?!--but still, sure, in some cases, there is copying. But there can be no doubt that millions and millions of dollars are lost on attorneys' fees alone, not to mention the cost of changing designs to avoid infringement, or foregoing development in a field crowded with patents or rife with uncertainty, in cases where the victim was not copying or even learning anything from the company that just happens to hold a red-ribbon adorned manilla certificate issued by a technocratic bureaucracy of the criminal central state. Add an independent inventor defense, and a lot of the work done by lawyers like me would dry up--meaning a more efficient economy, lower priced goods, more competition and innovation, more innovative freedom, more breathing room.

This is a type of reform that most libertarian patent advocates, in my experience, begrudgingly agree to. And it would gut the patent system. The caterwauling of the patent bar, deprived of half their federal law-sponsored teats, would reach a deafening crescendo. Large companies that rely on the inchoate threat of patent lawsuits to squelch competition and keep small innovators down, would increase their bribes to DC, fearful of barriers to entry falling.

So why not come all the way with us, my fellow libertarians? You see the injustices of the patent system, and usually agree with our concrete criticisms of them. You are not sure of what a good patent system would even look like. The current one is undeniably a mess. And it's just an arbitrary fake-law scheme enacted by an obviously incompetent, evil, illegitimate, and criminal state. Why in the world would a libertarian support this? Besides, by advocating such reforms you are going to be lumped in with us "enemies of innovation" by the vested IP interests. So if you are doing the time, you might as well do the crime.

"Also, I don't think von Mises and Hayek and the other Austrian economists have gotten enough credit for.. . their theory of the business cycle. I really do think we are experiencing. .. what Austrian business cycle predicts. If you print a lot of money and you send it through the economy you'll have certain bubbles and those create market distortions and if the bubble's big enough and it goes on long enough when it pops, it creates great harm in the society. I think that's what we're living through right now. That kind of bubble in the stock market and the real estate market."

Cory, Google is not perfect but the attacks on them for attempting this seem to me to be demonizing the wrong party. The problem is copyright law--a state legal system. The state is, as usual, to blame. Why some people are trusting the same state that foists IP law on us to protect is us mystifying. In attacking Google they are allying with the state (see my post Google Digital Library Plan Opposed by German Chancellor), which is the real enemy. I don't see any choice for google to accomplish the quasi-digital libertarian of orphan and other works other than its creative legal-settlement route.

"Nobody likes this "only-for-Google" aspect of the settlement--in fact, Google has said that it would support orphan works legislation that would empower the Registry to make the same deal (or even a better deal) with others who want to use these unclaimed works."

I am not sure I see the concern here--seems to me only someone who cares about copyright would object to this.

"The settlement agreement even has a provision that makes it clear that the UWF can license others "to the extent permitted by applicable law"--what amounts to an "insert orphan works legislation here" invitation."

I'm not sure what is wrong with this. Even partially libertaring orphan works from the confines of copyright law would be good.

"But absent some legislative supplement to the revised Settlement 2.0, it still seems that any other company would have to scan these books, get sued, and hope for a class action settlement. That, of course, is the kind of barrier to entry that any monopolist would envy."

Again, it seems to me that Google is doing it the only way they see possible, given the terrible state regime.

"...But we shouldn't be satisfied with antitrust law here."

This line really bothers me. The EFF and others supposedly concerned with individual rights should recognize the state as the enemy. They should recognize antitrust law is completely unjustified; the real monopoly is the state, which arrogates a true monopoly to itself. This line implies that antitrust law is okay; it's not. It's immoral and unjustified. All antitrust law should be of course abolished.

See my An Open Letter to Leftist Opponents of Intellectual Property: On IP and the Support of the State and Eben Moglen and Leftist Opposition to Intellectual Property.

I know. It's nuts. Discussion on the forum.

"For four decades, untold numbers of Abilene area residents called Dr. Rorabaugh their doctor. He started practicing in Abilene in 1959 back in the days when doctors charged $3 or $4 per visit and made house calls."

Congress, of course, got the ball rolling for financial censorship in a big way when it barred use of credit cards to fund bets with offshore gaming Web sites, but this might be the first case of a "private" shutdown at the initiative of a group not exercising actual "legal" power over the card operator.

You can still buy books and DVDs, even reserve a place at a series of private meetings he's holding with fans in the US (Irving is British) currently using your Visa, MasterCard, or PayPal accounts, at least so far. Hikind may not be pursuing the matter further as he's currently in Israel, encouraging Americans to purchase real estate in East Jerusalem on formerly Jordanian territory occupied by Israel since its 1967 War.