Against Intellectual Monopoly

AGAINST INTELLECTUAL MONOPOLY
    "Intellectual property" - patents and copyrights - has become controversial.
We witness teenagers being sued for "pirating" music, and we observe AIDS
patients in Africa dying because of their lack of ability to pay for drugs that are
expensively priced by 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 broadly covers both copyrights
and patents and is designed for a general audience, with its focus on everyday
examples. The authors conclude that the only sensible policy to follow is to
eliminate the patent and copyright systems as they currently exist.
    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 Center for Economic Policy Research (London) and at Fundacion de Estudios de Economia Aplicada
(Madrid). He is an associate editor of Econometrica, an editor of 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 American Economic
Review, Econometrica, Review of Economic Studies, Journal of Political Economy,
Journal of Economic Theory, Review of Economic Dynamics, Journal of Monetary
Economics, and 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 and 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.
Levine has published in leading journals such as American Economic Review,
Econometrica, Review of Economic Studies, Journal of Political Economy, Journal of Economic Theory, Quarterly Journal of Economics, and American Political
Science Review.

     

Against Intellectual Monopoly
    MICHELE BOLDRIN
    Washington University in St. Louis
    DAVID K. LEVINE
    Washington University in St. Louis

     

Acknowledgments
    Above all we are grateful to our families, Emanuela and Niccolo, Joyce, and
Milena, for putting up with us while we wrote this - not to speak of reading
and criticizing parts of it.
    A great many people contributed to our ideas and knowledge of "intellectual property" expressed in this book - though many of them no doubt
would disagree with our sentiments and some of our conclusions. We are
particularly grateful to Nicholas Gruen, Doug Clement, Jim Schmitz, Tim
Sullivan, and Scott Parris for their continued support and advice. Toward
Scott Parris, our editor at Cambridge University Press, we have accumulated
a particularly large debt for his infinite patience, careful reading of an endless sequence of versions, and very professional handling of our repeated
mishaps.
    Many people advised us about particular issues. We are grateful for Preston McAfee's analysis of the Rambus case; Alessandro Nuvolari's advice,
especially about steam power; Ivan P'ng's example of the wheeled suitcase; Eric Rasumussen's analysis of marketing and copyright; Jean-Laurent
Rosenthal's leads on the history of copyright; and George Selgin and John
Turner's corrections to our story of James Watt.
    Many people contributed examples, comments, and references, especially
Serguey Braguinski, Tim Erickson, Jack Hirshleifer, Bronwyn Hall, Andrea
Moro, G. Moschini, Ed Prescott, Paul Seabright, Malik Shukayev, Robert
Solow, William Stepp,