Re: Intellectual Property II

[Alexander Terekhov]

Rui Miguel Silva Seabra wrote:
> 
> On Fri, 2006-02-10 at 16:52 +0100, Alexander Terekhov wrote:
> > Rui Miguel Silva Seabra wrote:
> >
> > [... "monopoly" ...]
> >
> > William M. Landes and Richard Posner:
> >
> > -----
> > A property right is a legally enforceable power to exclude others
> > from using a resource, without need to contract with them. So if A
> > owns a pasture, he can forbid others to graze their cattle on it
> 
> Yes, we all know that. But contrary to grass & cows, people can copy
> digital content ad aeternum without loss of the source.

-----
................................ The dynamic benefit of a property 
right is the incentive that the right imparts to invest in the 
creation or improvement of a resource .........................
............................................................
...................................... For example, a firm is less 
likely to expend resources on developing a new product if competing 
firms that have not borne the expense of development can duplicate 
the product and produce it at the same marginal cost as the 
innovator; competition will drive price down to marginal cost, and 
the sunk costs of invention will not be recouped.
-----

regards,
alexander.