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Against Intellectual Monopoly, by Michele Boldrin, David K. Levine
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"Intellectual property" - patents and copyrights - have become controversial. We witness teenagers being sued for "pirating" music - and we observe AIDS patients in Africa dying due to lack of ability to pay for drugs that are high priced to satisfy patent holders. Are patents and copyrights essential to thriving creation and innovation - do we need them so that we all may enjoy fine music and good health? Across time and space the resounding answer is: No. So-called intellectual property is in fact an "intellectual monopoly" that hinders rather than helps the competitive free market regime that has delivered wealth and innovation to our doorsteps. This book has broad coverage of both copyrights and patents and is designed for a general audience, focusing on simple examples. The authors conclude that the only sensible policy to follow is to eliminate the patents and copyright systems as they currently exist.
- Sales Rank: #483081 in Books
- Brand: Brand: Cambridge University Press
- Published on: 2008-07-07
- Original language: English
- Number of items: 1
- Dimensions: 8.98" h x .87" w x 5.98" l, 1.20 pounds
- Binding: Hardcover
- 312 pages
- Used Book in Good Condition
Review
"One should bear a heavy burden of proof to enjoy a monopoly. Boldrin and Levine have dramatically increased that burden for those who enjoy intellectual monopoly. All economists, lawyers, judges, and policymakers should read this book." - W. A. Brock, University of Wisconsin, Madison
"Boldrin and Levine, highly respected economic theorists, have produced a lively and readable book for the intelligent layman. In it, they challenge conventional wisdom about patents and argue that we would be better off without them. The book will open a fresh debate on the policy on intellectual property protection." - Boyan Jovanovic, New York University
"There is a growing and important skepticism about the fundamental rules we have used to regulate access to information and innovation. This beautifully written and compelling argument takes the lead in that skeptical charge." - Lawrence Lessig, Stanford Law School
"For centuries, intellectual property rights have been viewed as essential to innovation. Now Boldrin and Levine, two top-flight economists, propose that the entire IPR system be scrapped. Their arguments will generate controversy but deserve serious examination." - Eric Maskin, Nobel Laureate, Institute for Advanced Study, Princeton
"This is an important and needed book. The case made by Boldrin and Levine against giving excessive monopoly rights to intellectual property is a convincing one. Monopoly in intellectual property impedes the development of useful knowledge. I think they make the case that granting these monopoly rights slows innovation." - Edward C. Prescott, Nobel Laureate, University of Minnesota
"Boldrin and Levine present a powerful argument that intellectual property rights as they have evolved are detrimental to efficient economic organization." - Douglass C. North, Nobel Laureate, Washington University in St. Louis
"How have we come to view ideas as if they have some physical existence that we can lock up behind a set of property rights laws akin to, but remarkably different from, those we use to protect our physical property? This is the central question in Against Intellectual Monopoly by Michele Boldrin and David Levine. The answer they come to is startling: except in a few rare cases, intellectual property protection does more economic harm than good and ought to be eliminated. The technology of digital computers and the Internet, as Boldrin and Levine show again and again, has exposed long-standing moral shortcomings of current intellectual property laws in a particularly stark way." - Stephen Spear, Carnegie Mellon University
"Boldrin and Levine expose many real and costly flaws of the U.S. system of patents and copyrights.... [and] provide support for further reforms of intellectual property law." - Richard Gilbert, University of California Berkeley, Journal of Economic Literature
About the Author
Michele Boldrin is Joseph G. Hoyt Distinguished Professor of Economics in Arts and Sciences at Washington University in St Louis. He is a Fellow of the Econometric Society and a Research Fellow at the Centre for Economic Policy Research (London) and at FEDEA (Madrid). He is an Associate Editor of Econometrica, an Editor of the Review of Economic Dynamics, and an Advisory Editor of Macroeconomic Dynamics, published by Cambridge University Press. His research interests include growth, innovation, and business cycles; intergenerational and demographic issues; public policy; institutions; and social norms. He is the coauthor or coeditor of four books and has published in leading journals such as the American Economic Review, Econometrica, the Review of Economic Studies, the Journal of Political Economy, the Journal of Economic Theory, the Review of Economic Dynamics, the Journal of Monetary Economics, and the Journal of Economic Dynamics and Control.
David K. Levine is John H. Biggs Distinguished Professor of Economics in Arts and Sciences at Washington University in St Louis. He is a coeditor of Econometrica, coeditor of NAJ Economics, President of the Society for Economic Dynamics, a Fellow of the Econometric Society, and a Research Associate of the National Bureau for Economic Research. Author with Drew Fudenberg of Learning in Games and editor of several conference volumes, his research interests include the study of intellectual property and endogenous growth in dynamic general equilibrium models; the endogenous formation of preferences, institutions, and social norms; and the application of game theory to experimental economics. Professor Levine has published in leading journals such as the American Economic Review, Econometrica, the Review of Economic Studies, the Journal of Political Economy, the Journal of Economic Theory, the Quarterly Journal of Economics, and the American Political Science Review.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Lots of useful info.
By Jordan Inman
The time for tearing down the unneeded walls of IP is now. Lots of useful info.
7 of 11 people found the following review helpful.
A Very Good Primer
By John Spiers
Anyone who has taken a seminar from me knows I attack "Intellectual Property Rights" (IPR) as a bad idea for small business. I draw on what I learned from the highly successful people I worked for long ago, and what has proven true being self-employed myself these last 25 years. As a practical matter far from harming my business, eschewing IPR gives me a competitive advantage when competing on design as opposed to monopoly or price.
I lay out this view in the morning session, and then follow up in the afternoon, while directly addressing contracting designers, with the views of a patent attorney by the name of Stephan Kinsella out of Houston. It was a delight years ago to read his critique from a patent attorney's point of view, with which I concurred. He is more radical (and right) than another lawyer who is somewhat anti-IPR, Lawrence Lessig, the Stanford Law professor. I've developed my arguments over time to the point I was invited to spend an hour making my argument to 17 patent attorneys at a leading IP firm in Seattle last Fall. The IPR lawyers know change is coming, and are working to correct the abuses.
With business and law advancing arguments against IPR, that left academia to round out the condemnation. Washington University professors Michelle Boldrin and David Levine do just that in their book AGAINST INTELLECTUAL MONOPOLY. These are not some flakes being contrarian to get attention, they are regime intellectuals and their book is endorsed by three Nobel Laureates and Lawrence Lessig.
Business in USA is split between the Hamiltonian and Jeffersonian ethics, one loving fascism and the other loving freedom. Obviously with war and economic depression and shortages the Hamiltonians have had the upper hand, so it is very welcome to see a central tool of the bad guys in the USA economy, IPR, being taken apart both by law and academia.
Lawyers practice law and academics practice theory, neither of which seem to be very well informed about how business happens. In some ways their arguments are far more important, since they influence the thinking of so many people. Although it is unstated, AGAINST INTELLECTUAL MONOPOLY proceeds from the theoretical basis laid down by R H Coase as he has laid out in THE FIRM, THE MARKET AND THE LAW. At some point I will review that enormously influential book, but suffice it to say Coase is a Hamiltonian. Essentially, their guiding light is "does policy result in aggregate in a net increase in prosperity.?" By their analysis, the answer is no, IPR is a net deficit. For this conclusion, the book is most welcome, and should be read for the examples that contradict the "pro-IPR" arguments. Jeff Tucker at the Mises Institute has read the book and wrote a series of essays that might be a companion piece that you should read alongside the book.
AGAINST INTELLECTUAL MONOPOLY carefully takes apart the IPR regime as it is, but says nothing about what might be if we were to rid ourselves of it completely. You'll be glad when you put the book down that you've been disabused of the notion that IPR is a good thing, especially the nonsense that we'd have no new medicines without patent monopoly to recover the up front costs. But what should we do? Coase was flexible on policies, because the acid test for his followers is the vague "net increase in wealth." their solution is wishy washy.
That leaves the task of someone writing a book that rejects IPR from a free market point of view, laying out what we would have absent intellectual property rights, and give any startup competitor a road map for crushing those who want to compete by monopoly, doing good while doing well.
I'm working on it.
9 of 9 people found the following review helpful.
A very clear set of arguments for the non-economist.
By Gabe
Before continuing, you should know that I also read the free copy available online, not the print book.
The book is a simple and clear set of reasoned arguments against the existence of intellectual monopoly. Boldrin and Levine are careful to distinguish between intellectual property rights and intellectual monopoly: intellectual property is argued to be just as important as other property rights, while they eventually equate intellectual property to something close to public theft.
No difficult math or statistics are employed, so the average reader will be able to understand the arguments and agree or disagree. Each chapter also includes references to statistical and mathematical treatments of the subjects, although I wish they'd included brief outlines of these in an appendix.
The ideas themselves are impressively simple. Arguments in favor of intellectual monopoly can be made to seem very obvious. Arguments against intellectual monopoly can be a little complicated. It's easy to say that patents and copyrights are necessary to pay back authors and inventors for their risks and creativity. But how much should they be payed back? And does it occur without government intervention in the forms of patents and copyrights? Does piracy actually put the legitimate creators and inventors out of business?
One striking example from the book was the Linux company Red Hat, which distributes the open-source Linux platform and provides support. Its pirating competitors sell the same thing for cheaper (and indeed, the whole thing is available for free!) and yet Red Hat has grown and its competitors have shrunken or disappeared altogether. Boldrin and Levine point out that while something may be free, people are still willing to pay for other peoples' knowledge. There is value in knowledge, and consumers don't always have the time to educate themselves. Those with a background in economics will remind themselves immediately that there is no such thing as a free lunch: even pirated material has an opportunity cost of time, or might require a certain level of knowledge. Another interesting example was the pornography industry. Here is an industry that has always been a constant target of piracy, yet it continues to grow!
Boldrin and Levine have managed to simplify the arguments into clean examples and easy statistics. Unfortunately, I find that when the statistics do not go in their favor they are more likely to wave away the outliers than attempt to explain them, a choice I find leaves their argument looking weaker than it might otherwise be.
Overall, the book is a pretty quick read that will inform you of several arguments in the anti-monopoly position. The writing is clear and direct. Boldrin and Levine also have an off-beat sense of humor, which at times made me smile but mostly made me grimace.
Recommended to anybody interested in this current debate, regardless of the side of the debate on which you may fall.
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