Two points against Intellectual property laws

[sam h]

Having jumped in the thread early but been away from my computer, I'll just chip in with a few comments.

1. Intellectual property protections go far beyond the patent system, which is only one part of the whole IP apparatus. A large part, perhaps most, of the IP produced by firms falls under the rubric of "trade secrets." A lot of what firms are most concerned with is not that somebody will infringe on a patent, but that competition will simply hire away an employee, or otherwise acquire a lot of knowledge concerning operations, plans, R&D development, etc. These kinds of concerns are huge.

2. The merits of IP in the abstract notwithstanding, the fact is that getting rid of IP protections for any single country today is probably a terrible idea. There is a lot of evidence that the strength of IP is a huge factor in firms' decisions concerning investment and where to locate high-end processes like R&D and operational innovation. This is particularly evident in the experiences of high-flying developing countries like India and China, for which making a credible committment to IP protection has been absolutely essential.