Okay, thank you. I'd like to introduce the Marian Roth Board Memorial Lecturer. It's a Stephen Kinsella. Stephen is general counsel for Applied Opto-Electronics in Houston and formerly a partner in the Intellectual Property Group of the Philadelphia law firm Dwayne Morris. He is a registered patent attorney with over 15 years' experience, having represented clients such as Intel, Lucent, General Electric, Motorola, Schlumberger and UPS. He received his LLM in international business law from King's College London and his law degree in BS and MS in electrical engineering from Louisiana State University. He has taught as adjunct professor at South Texas College of Law in Houston and has published numerous articles and books about intellectual property law and international law including International Investment, Political Risk and Dispute Resolution, a Practitioner's Guide, published by Oxford University Press in 2005. Other books include Trademark, Practice and Forms, World Online Business Law, Digest of Commercial Laws of the World and Online Contract Formation. Stephen has also published articles on libertarian topics such as rights theory, contract theory, legal theory and intellectual property law. And served for several years as a book review editor for the Journal of Libertarian Studies. So it's my pleasure to give to you Stephen Kinsella. Thanks, Joe. For some reason all of a sudden I feel a little bit like I'm at a lawyer's anonymous meeting. Hi, I'm Norman. I am an intellectual property attorney. Jeff had titled this, the Rethinking IP Completely and I came up with a little bit more to script the title here. And I'll come up with it in a little bit, but I spelled out what IP means. Apparently a lot of people don't even know what IP is. So what I'm going to talk about is we live in an age of technological marbles, as we all know. I want to elaborate that. We have laser pointers, airplanes, computers, the internet, plasma and televisions. We have abundance of the arts, movies, film. Now we libertarians would say this is because individual creativity in an unhampered free market or free enough has led to this. But many people say that's not sufficient. There's something else that's necessary for these intellectual creations to have occurred, which is intellectual property law, primarily patent and copyright law. Even libertarians have tended to accept this idea. After all, it's intellectual property and we support property rights. It's a type of property. So is it? Well, I'm going to focus primarily tonight on patents and copyrights. Patents and copyrights, also, mass works, trademarks and trade secrets are considered to be types of intellectual property. There are three types of patents, utility, plant, and design patents, and there's copyrights. There are sort of related legislative rights like databases, which are pending, and boat hull designs, which are, of course, very important. Design patents are similar to copyright, but no one really knows exactly how.  But because most people, from what I've seen, especially on the pro-IP side, don't really know what IP is. I'll see trademark, copyright, and patent confused all the time, and that's fine as a specialized discipline. And yet they're in favor of this, even though they don't really know the difference. So a copyright protects original works of authorship that are fixed in a tangible form of expression. Songs, lyrics, novels, paintings, MP3 files. It's not just the right to copy. It's a bundle of rights. The right to reproduce or prepare derivative works, right? Or to perform the work publicly in some other works as well. Now the term of copyright nowadays is very long, 70 years after the life of the author. So it's practically infinite nowadays. One thing that's commonly misunderstood, and we'll talk about this in the panel tomorrow, Paul, copyright is secured automatically upon creation. You don't have to put a copyright notice on it. You don't have to register it. These are totally relevant. In fact, I have a copyright on this page right now. And it's self-referential, as you can see. So what it means is you can't copy this without my permission. And copywriting is a noun, not a verb. You can't copyright something. Once you write something original or created something original, federal law gives you a copyright, whether you want it or not. This is just a background of, I showed Jeff this the other day. This is a flow chart for figuring out how long a copyright lasts. As you can see, this is clearly the product of natural law. Patents. We have utility, design, and plant patents. Plant and design patents can mostly be ignored. Utility patents is what everyone thinks of. It's for inventions, things that have usefulness or utility. Now you have to obtain this by filing a patent application with the Patent Office, a government agency. It's examined by an examiner and then later issues as an issued patent if you're lucky. And what it does is it gives you the right to stop other people from making, using, selling, importing, or offering for sale, whatever is claimed in that patent. It doesn't give you the right to do it. The right to stop others. Now I'm just going to give you one quick example, a part of an actual issued patent so you can see what they look like. This is one I did for my company. It's on a spatially coherent surface emitting, grading coupled quantum cascade laser with an unstable resonance cavity. The unstable is the key part. So this is the front page. It shows the title, the inventors, the company that owns it, the patent lawyer, the examiner, the patent office, a key, a typical figure. Then there's several figures that illustrate the invention. Then you have a detailed description that explains it. Then it terminates and claims. This is where the property right is. Right here, claim one is the first claim. What is claimed is, and it's a sentence starting with the word uh or the. That's just the way it works. So this is a unipolar surface emitting laser blob that has the following features. Okay, it ends in a period. This is what a property, this is the meats and bounds of the patent. Again, clearly natural law. This is just some more, this is an example of the steps you go through when you prosecute a patent. Executing is what you call going back and forth of the patent office to get a patent. This is an example of a flowchart we consult to determine whether a computer implemented invention is patentable. Now I'm going to give some examples of some patents just so you can see what was the outcome of this process of the government issuing patents. This is a patent for a viable shaped bumper hitch.  This is a tow puppet.  Peanut butter and jelly sandwich with no crust.   This is a Santa Claus shaped Christmas watering tree stand. You know, it has two purposes, right? Decorative and this is the way to initiate someone into Harvard. Okay, this is how you exercise the cat. You just chase it. If you ever do this with a cat, you're infringing this patent.  Pat on the back apparatus. Or if you're feeling guilty about it, you can kick yourself in the rear. User operated amusement apparatus for kicking the user's buttocks. This is the Amazon One Click patent which they sued Barnes & Noble for about four or five Christmases ago. Clicking once to order something instead of twice. Genius. This is something that people around here might like. You know, it speaks for itself. And this is the patent attorney who prosecuted that by the way. He's in jail now for mail fraud. Totally unrelated but interesting. A pooper-scooper on the bottom of hole. Who would have thought that one? For showing some cleavage in your pants? Now, in the old days, from what I hear, people were buried without being embalmed. And every now and then they would wake up. So this device was invented so that in case you wake up, you could pull the string and blow a horn and alert people. Seriously. This is old. 1891. I could use this one. This is a way of doing a creative comb-over. Anyone golfs here do not hold your putter like this. Or you're in trouble. A better way of measuring bra size. Just measure the breasts directly. Sorry what I think about this. This is a design patent, by the way. This is a patent on the way this looks. Hans might enjoy this as a smoking hood. This is one that bothers me. This is a method for drafting a patent application. It's really good. I just can't use it, unfortunately. My wife has the new MacBook Air. It's wonderful. It has this great little drop-down, flip-down door with the ports. And, of course, they have patents on it. But, you know, when I saw this, I thought, it reminds me of the overhead storage compartment on an airplane, right? Like we wrote today. I'm sure they have a patent on that, too.  I had about 10 more pages of these, but we have to stop somewhere. The most recent was just this week. Gibson says the guitar hero violates patents. Activision says no. Apple's been sued for the combination of iPod and iTunes. And Manuel told me at the Philadelphia airport. He saw the massage chair with the placard saying patent pending. I saw that, too, in the Houston airport today, by the way, too. So they're everywhere. Now, let me talk about some of the, what people do with some of these patents. Again, there's another example almost every day. So let me just highlight a few. This is a study I saw as of March 2003. The top five patent infringement awards range from almost $1 billion to $200 million, and settlements from $1 billion to $300 million. There's a recent judgment against AT&T for $156 million, which might be tripled. A New Jersey doctor was given $432 million as a royalty against Boston scientific. Sprint recently won $70 million, and they settled for more because they were afraid they were going to get shut down by the patent injunction. Qualcomm has been enjoying from importing chips to help conserve power on cell phones. This new television design called SED, which is promised to be revolutionary, has been postponed for over a year or two now because of a patent lawsuit. It may just die on the vine because it's too late to compete with the other technologies. Blackberry paid $600 million about a year and a half ago because of a patent injunction threat, even though the patents were being examined and likely to be overturned in the patent office because they could still get an injunction. So they paid that much. They paid $25 billion jury award against it in a recent MP3 suit, which was reversed on appeal. I did an estimate, and others have done that, so patents probably cost on net $31 billion to the U.S. economy alone, or maybe more. This is just from hard numbers, looking at hard numbers. Now, in terms of copyrights, just a few examples of some apparent abuses of the copyright system. The RIA has been pushing for damages that would amount to about $1.5 million if you copy one CD with 10 songs. And this is just a funny example. Ford recently, there was an enthusiast group of Ford owners, and they were posting pictures of their own cars to each other. Ford said, you can't do that. We own the car. We own the design. NFL recently prohibited churches from having Super Bowl parties because the TV is more than 55 inches tall. This is true. There was a proposal to ban you from the Internet if you illegally download music. There was one case where a guy got a cease and desist letter, and he posted it, and the company that sent him the letter said, oh, we have a copyright letter. You've got to take it down. And the court said, yeah. And finally, there was a kind of infamous case. There was a $220,000 verdict against Jami Thomas, this woman who just shared 24 songs. So it amounted to $9,000 bucks per song. It could have been up to $3.6 million. There's an interesting study by a guy named John Tehranian, and he just kind of said, look, if you do a typical set of things like we all do every day, no P2P downloading or anything like that, just sending emails to people, sending a few articles, sending a few pictures you found on the Internet. He counted up to 83 acts of infringement with liability up to $12.45 million plus criminal charges. And if you multiply that for the rest of the year, in person, this is all of us. Up to $4.5 billion of damages that you should owe if you're theoretically sued under all the copyright statutes. It's insane. This is a spoof CD liner which says, you know, what you can do with this CD. It can be difficult to use this and not be arrested, but here's some things we think are acceptable. You can listen to it alone with a towel stuffed under the rock on the door, et cetera. This is just funny. So, why would anyone favor this? Well, the typical rationales we all know, even for some libertarians, it's more of a utilitarian or wealth maximization rationale. The idea is that if you don't have IP rights, then IP will be under-stimulated or under-produced. So we need to stimulate innovation, creativity, and art by granting these rights. The interesting thing to me is that there seems to be almost universal belief on the part of economists who studied this, even from a utilitarian point of view. Almost everyone concludes that the patent system is either you can't prove that it does any good or it's a net drain on the economy. I'm not aware of any study that concludes conclusively that the patent system is a net benefit. Everyone just seems to believe it. That's their argument, but they don't know. This is Maqulop back in 1958. He even said, you know, we can't know for sure. It'd be irresponsible to implement a patent system right now if we didn't have one. Researchers have concluded that even now we don't know anything more than we did back in the 50s. Recent professors, Boston Law School professors and economists, they have a book coming out, I think, this month. They concluded that the patent system discourages innovation on average. Some studies by an economic historian, Eric Schiff, he studied, he said when Switzerland and the Netherlands abolished patent law back in, I think in the 50s for a while, they actually measured that innovation was increased. There was more competition for the companies that had previously relied on the patent monopoly. And Petra Moser did a study of some World's Fair exhibits and she concluded that countries without patent systems innovate just as much or more than those with patent systems. These aren't conclusive and they are utilitarian, but even by the utilitarian standards all the studies seem to say this is just a big mess. No one knows. If you ask someone why you favor the patent system, it helps to benefit the economy. You say, well, what does it cost? What are the benefits? What's the difference? They have no idea. They don't know. There's some more studies, just more studies. Everyone includes the same thing. Now, what about libertarians who reject utilitarianism? Why do we favor it? How do we get started down this road of including intellectual property as a legitimate part of property rights? I'm calling this libertarian creationism. I think it stems from the notion that it's snuck in the back door that creation is a source of rights. And this is sort of mixed up with the idea of labor in the Lockean idea of homesteading. So basically if you believe the kind of simplistic idea that whatever you create with your labor is yours then, well, what's a whatever? Well, it could be anything. You can create a poem, you can create a field, you can create a house. So you own all those things, right? So the Lockean idea is that we own our labor, right? And even Rothbard says this. And therefore we own resources we mix our labor with. Now, to my mind, there's always been a problem with this. There's the idea that if you spit in the ocean, you own your spit, but then you lose the spit. You don't own the ocean, right? So just because you mix something you own with something else doesn't necessarily mean you own the thing you mix it with. But even if you did, do you own your labor actually? I'll get back to that in a second, but let me just show how the objectivist really take off on this. You know, as Aaron Rand said, IP protects a man's right to the product of his mind. And a recent quote from an objectivist law professor, Masafa, property is the right to acquire, use, and dispose of the things that one has created through one's labor. Every person has a right to enjoy the fruits of his labor. So you see there's this focus on labor, creation. Okay, now let's think about what Rothbard said. Do we really own our labor? What did Rothbard say about free speech rights, for example? Is there really a right to free speech? Standing alone in independent right to free speech? No. There's a right to property. You can do what you want on your own property. So really the right to own property is sufficient to let you speak on it if you want or not speak on it. But you don't have some independent free speech right that would let you speak on someone else's property, right? Although enshrining it as a right in the constitution has in a way led to this, right? Because the courts say that a private shopping mall has to let people speak on it. So in a way, holding these things that are derivatives of real rights is independent rights infringes the rights that they're supposed to derive from. Okay? So do we own labor? I think it's similar to the free speech idea. Labor is just an action. It's what we do with our bodies. You own your body. That's enough to give you the right to decide what to do with your body, right? To dispose of your labor, to sell it if you want, to bargain with it, to withhold it, to profit from it. But you don't own your labor. Or to say that is misleading is an overuse of a metaphor. You can say it as long as you're aware that it really just means you own your body. It's not an independent right from from your body. Speaking of labor, this is one more patent. This is a patent on having a child by centrifugal force. Just imagine spinning spinning around here. That was Namwell's idea to keep that one in here. Okay, so then why would we own, if we don't own our labor why do we own things that we homestead? We don't own it because when we appropriate it first, we have a better claim than anyone else because with respect to us they are a latecomer, as Hoppe shows extensively in his argumentation ethics. This is, in fact, in my view is the distinct libertarian view. Everyone believes in property rights, right? Socialists believe in property rights. Communists, they just have a different view of who owns it, right? The state owns it, or the people own it, or the poor people have a right to a claim on part of your money. They dispute over a particular piece of property. The question is who gets to own it. The libertarian view, what is distinct about it is we believe that property rights are going to be recognized in the first user to permit conflict-free use of scarce resources. Okay? This argument does not rest upon the assumption that we own our labor. Just rest upon the assumption that if you use or transform or in border or appropriate or scarce resource that is unowned first, you have a better claim than anyone else because with respect to you, they're a latecomer. Okay? Now, what about creation? This idea that, whatever you create is yours. Actually, it's not true. It's sort of commonly said that if you you can acquire ownership and things by appropriating it from the unowned state or by buying it from someone else contract, or by or by producing. But this is actually a little bit misleading. Actually, producing is not an independent source of rights. To produce, you actually already have to own the factors that you're producing the new thing from. Producing just means transforming the property you own already, right? So for an example, this is a simple example to show that creation is not sufficient or necessary for rights. So if you have a big hunk of marble and you carve a statue in it you already own the statue because you own the marble. So you don't have a new property right. You just have transformed the marble. So that means creation is not sufficient. Not necessary. Sorry. If you carve a statue in your neighbor's marble without his permission, you don't own the statue. You still hit statue. So creation is not sufficient. So it's neither one. So again, there's only two ways to acquire property. Appropriation or contract. That's it. You can increase your wealth by producing. That is by transforming products you own already. But it presupposes this. Back to the objective. This sort of overaligns on an imprecise metaphor and on the idea of creation as a source of rights and on the idea that you own labor has led the objectives, for example, to believe in reputation rights, right, libel and defamation law, intellectual property rights, the state, legislation, bureaucracies because these things are all necessary for all these things, right? You create your reputation, right, in vengeance and art, and it has value to you. This is another thing. Another confusion that a lot of these, they mix up value, labor and creation. They believe that value is sort of an independent objective thing that you don't create a value. You create a thing that has value to people, subjectively valued by different people, right? David Kelly, someone I respect and admire, wrote, the essential basis of property rights lies in the phenomena of creating value. You see this here. For things that one has created such as a new product, one's active creation is the source of the right, regardless of scarcity. Now, he said this trying to argue that IP rights are justified. Now, but for tangible things, the creation actually does not, is not the source of the right. He already owned the tangible things, so he's wrong. Okay? So creation is not necessary for that. For intangible things, I think he's just begging the question. I mean, that's the question. Okay? So, as Rothbard has argued and Hoppe has elaborated, there are no property rights in values, right? You have a property right in the physical integrity of your property. To have a property right in the value means you have a right to what other people believe or assess or feel about your own property. You don't have that right. It's the same reason Rothbard denies reputation rights, and it's the reason that Randians uphold reputation rights, right? So you don't have to write to what someone else thinks about you. So you don't have a right to your reputation, not directly. Now, in my opinion, patent and copyright, and from practicing from the inside, I mean, I'm astounded when people think it could have arised in the common law system. It's literally inconceivable to me, literally. I mean, no more than the Americans with Disabilities Act could have arisen on the free market. It's just ... I mean, it's probably easier for monkeys to type Shakespeare. Okay? So think about what it would require anyway. It requires a state. It requires legislation, which is artificial law. And it would also require a government agency or bureaucracy to administer this program, right? I had a debate with an objective as attorney, Murray Frank, and I made this point, and he said, no, no, no, he goes, he goes, I think they could arise on the common law, but even if they couldn't, there's nothing wrong with legislation. In fact, the same judges that make wise common law choices can use the deductive reasoning, blah, blah, blah, to laws that legislate universal laws. I mean, I don't know if this even needs a comment. I mean, look at our government. These guys are supporting what the legislation does. And this is a recent one, too. This is just kind of a side point. Another objective has had something about producers deserve to be rewarded handsomely for their efforts. Again, this focus on labor reward.  What if the patent is not enough to stimulate, what if you can't sell your bird flipping stumble with a patent monopoly? But it's ingenious. You should be rewarded. So there's going to be an underproduction of labor. So actually, I've seen four or five proposals in the last couple of years. The government should establish a board which has a panel of experts which uses taxpayer-funded money to give awards to people that have ingenious inventions. It's sort of like a government MacArthur award or something. And Stiglitz suggested this literally just in the last couple of years, a medical prize fund to give large rewards for cures or vaccines that could be funded by governments in advanced industrial countries. So I think that this focus on rewarding labor leads to all kinds of the statist measures. My suggestion would be to abolish the patent and copyright system. I'll just flip through a few more modest reforms. If you could do a few things that would reduce the harm the most, I would say reduce the patent term. That would be the first thing. It's 17 years approximately now. Go down to five or seven years. Amazon CEO Jeff Bezos even proposed a three to five year term for business method and software patents. This is a little inside baseball because you have to understand why it's a bad thing, but if you're sued for a patent infringement you can be shut down, not just forced to pay royalties. To me, that's bad enough to have to pay royalties, but at least if it was just a tax you could pay the tax. It would hamper the economy a little bit, but you wouldn't be shut down. And remember, that's why I said that the blackberry maker was shut down. I have some other proposals too. This is going to be in another paper I'm working on right now, but there should be a prior use in independent inventor defense too. Under the current law, and this is where Ayn Rand got this wrong, by the way, she was defending something, she misunderstood the patent system and that she was at pains to defend what she misunderstood. She thought we had a first to file system which most countries do. First one to the patent office beats another guy who came up with the same idea. Actually the American system is the first to indent who wins. So she came up with all kind of reasons why it makes sense for the American system to reward the first to file, which we don't do. But under the current system, someone who invents something first in secret, however, and never files a patent on it, or if you invent it independently later, you can be shut down by someone with a patent. So I think this could be provided for with a prior use in independent inventor defense. This is inside baseball a little bit. Right now, when you file a patent application, it's published at 18 months after you file it, if you don't promise not to file it internationally. It's an exception. The idea is that in fact, the patent system was meant to encourage inventors to publish their ideas, not necessarily to invent but to publish. So the idea is there's a bargain.  So why is there an 18 month delay? It makes no sense. I think they should be published instantly. Give people notice that they're stepping into a minefield while they're infringing on your patent. Right now there's willful damages. Damages can be as much as troubled if it's willful infringement. I think that should be abolished because of punitive and other requirements too. There's some similar reforms I would suggest for copyright, in addition to abolishing it. Reduce the term from infinity to a 5 to 10 years and require active registration. Right now, like I said, it's automatic. So it's impossible to determine who owns a copyright, whether there is a copyright quite often, especially for orphan works which the Mises Institute deals with this problem quite often. So these are some reforms I would suggest. Also get rid of the Digital Millennium Copyright Act's criminalization of anti-circumvention technologies. Crazy. People copy, not machines. So and one other reform I think we should change the name of intellectual property. Intellectual property is a little too glorifying. I remember when I first started working in the law firm in Philadelphia, this old attorney got on the elevator with me and he said, intellectual property we're all intellectual, something like that. UIP guys aren't so smart. He was crusty. But intellectual is a little bit of a positive term. So let's get rid of that. Property also has positive connotations, right? Now there's an IP advocate named J. Neal Schulman which most of you probably know of. He has an idea of called logo rights. I think it's a little bit extreme on the wrong side but the term is interesting. Logo in the Greek meaning pattern we don't want to use the Greek word. Rights has positive connotations. I think what gets at the essence of what IP rights are, especially for patent and copyright is it's a government-granted privilege that protects patterns. The pattern, the way your machine is designed the steps you take to create something which is a recipe or the pattern that describes a painting or a book or a music performance. So basically what IP is is a state-granted pattern privilege. So in conclusion I would say down with the state, down with state law down with legislation, and down with pattern privileges. Thank you. So we have some time for questions but we won't. Yeah. Well, what I mean by that is labor is not an ownable thing. Your labor is just what you do with your body. With the help of the government you have constitution to give us the right the right. No one can force you to give your labor to food. No, because you own your because Well, exactly. Because you own your body. I would just say it's not an independent right. Just like free speech is not an independent right. Free speech is something you can do with your property. If you own property or your body, then you can do what you want with it. I agree, and that's because you own your body. For example, I don't have a right to stand on this stage right now.  I have the right to do anything as long as it's not violating anyone else's rights. In my opinion, the right to control your body gives you the right to control your labor. It's just not independent. Yeah. I think things like that can be done. They're not done too much now because of the pervasiveness of copyright law. They're done to an extent with shrink wrap agreements, but in a way shrink wrap agreements, for example, which is what that would be a type of or click wrap or something. If it goes beyond or broader than what copyright grants courts are probably going to strike it down anyway. So in a way, copyright law is preventing innovation in contracts. Now, I do think it would be difficult to ensnare third parties who are not in privity with the contracting parties. And that's one disagreement I have with Rothbard. He gives an example of he tries to use an idea of a mousetrap, but he calls it copyright because mousetrap is really what's an invention. It's not copyright. It's a confused example, and it relies in my opinion on the idea that you own your ideas or your own information. And I think that's the mistake because the information is not an ownable thing. It's a pattern. Yes. I think that's right. He was trying to suggest a contractual way that you could simulate some aspect of this. No. I agree it wasn't fundamental. Yes. I didn't get into that today. I was talking more about I was assuming that we already own our bodies and that if you own your bodies then we body owners can go around homesteading unowned inanimate not cell phone things in the world. I do have an opinion on why we own our bodies. And it's basically in line with Hans Hermann Hoppe's argumentation ethics. But it's basically the idea that it would take too much time to explain, but basically the idea is that for the same reason that you have ownership of something you homestead which is because you have a better claim to it than anyone else because with respect to you they're a latecomer. In the same sense, you have a better claim to your body than anyone else for that and for other reasons as well.  But you also have other connections to your body that give you a better claim than anyone else. But I think that's beyond the scope of Yes. Also can you So the question was, can you be liable for damages in a copyright or patent lawsuit if you don't profit from it? Yeah, the answer is yes. There's statutory damages for copyright number one, which is what Jami Thomas, the woman in the example, $9,250 I think was near the bottom of the statutory range. And for patents too, there's any number of theories you can be sued for. Creative Commons license I think there's a number of these open source type movements and things that are trying to find a private way to overcome the sort of limiting effects of all these copyrights, especially with respect to software and music and arts like that. But all those are sort of hybrid systems that exist in a world of copyright law because they all rely on the idea of copyright itself because basically they're a license and what a license is is a license is permission. Now you don't have to get permission unless someone has the right to stop you. The copyright law gives someone the right to stop you, right? And that owner says, okay, I'm going to not stop you, I'll give you permission or a license. And that's what Creative Commons is built upon, licenses. So really there's sort of a, it's piggybacked on top of the copyright monopoly anyway, so I think it's in a way problematic. Yes, you. Well, first of all, as I pointed out all the studies I'm aware of none of them include that. Okay, there's a couple that conclude that if IP has a case for patents it's stronger in the pharmaceutical area itself. But from what I can see it's actually the opposite. It's typical with government legislation. It's usually done at the behest of them for the benefit of large corporations. Small companies are at a terrible disadvantage. Startup companies like the one I'm at face unimaginable threats. There's probably a million United States patents issued and pending right now. We're all constructively on notice of the existence of those, just like you're constructively on notice of what the law says, which is why innocence ignorance of the law is no excuse, right? And, you know, if a small company is sued by a larger company even if they're innocent they would have to spend one or two or three million dollars to defend themselves. They can't afford to do that. So they cave in or they just don't compete in the first place or they stop competing or they get bought up for a song by the big company. The companies have a lot of profits. They can afford to engage in a lawsuit which is why one of the reforms I suggest is the loser pays, but even that wouldn't help enough. So I think right now the patent system helps the large companies much more than the small companies. I think the small companies are, can be just terrorized by the large companies. Small companies typically can't afford to defend a patent lawsuit. Yeah, Larry. Real quickly. Please don't delete both of these lines. Well, it's a multi-million dollar business and I'm afraid that they got this wrong. So I I don't know what to do with those comments. I retract the boat hold disparagement. But one other thing, more serious though.  I'm more serious though. You say the cattle management will evolve in a two to three month. Right. What would you envision as evolving in a two to three market? In this sense, would it evolve only into prohibitions against fraud and deception in some form? So if I literally copy something that you produce that continues to my own. Well, I mean, I think, okay. Is that what it is? For the patent system, I mean the patent system is run by a huge government bureaucracy. So it's literally inconceivable. I don't even know what it means to have a patent. Copyright. I guess you could imagine judges starting to say that, you know, someone published something. There was a common law copyright doctrine, but all it said was if you have something that's secret, not published yet, okay, and someone like steals it from your desk drawer, then you can stop them from publishing it first or something like that. It was more of a private property right against trade secret theft, something like that. People are confused all the time. They'll say, well, if you don't have copyright, I could just publish, you know, Aristotle's books or Mises' books or your books with my name on it. I mean, you can publish Aristotle's books with your name on it now. It's not illegal. It's out of copyright.  Right? And as for, you know, here if I give anyone permission to... So, a living person, I think it would be the same thing. Okay, I mean, who's going to take their time to... I mean, why are you doing it? Are you doing to make a profit off of a popular novel or something, or are you doing it for an academic reason? For an academic reason, it makes no sense to publish it because you just be laughing stuff, right? As for a novel, if you publish it, it's either going to be a knockoff under the author's name or it's going to be a knockoff with your name. Now, with your name on it, I think the buyers have a potential fraud claim because if you're lying, you say, if they bought it because they wanted to buy what you wrote and you're misrepresenting that, that's just a fraud claim. That's what I'm getting at. But I don't think that would happen very much and if it did, I wouldn't have a problem. I think so, yeah. Yes? The presentation is excellent from a youthful failure from the youth. I think we have to discuss some amara for the youth. Just one is stealing. Following your rejection of patents, does that abolish the crime of stealing? Well, I mean, to my mind, stealing is a derivative concept. It depends upon what property is. I mean, stealing just means taking someone's property. That's the property, really, property. And that was the question. So if intellectual property is not property, then there's no way to steal it. I mean, remember there's a famous phrase by Thomas Jefferson who was the first patent examiner but also skeptical of the patent system and he clearly said it wasn't a natural right. It wasn't a moral right. It was purely a kind of a civil privilege given to stimulate invention. But he gave the example of, if you have a candle burning and someone else lights their candle, you both have a burning candle now. You didn't take the flame of the guy you lit your candle from. So patterns and things, information, ideas that are infinitely reproducible in a way can't be stolen. If I learned something from you, I didn't take it from you. You still have it. So it's not theft. Everyone agree? Roger. Okay, good. Bill. Well, I would say the rivalries are scarce. Not necessarily tangible. The rivalries are scarce. Well, I mean you could conceive of airways like where jets fly or something like that. It's part of the three-dimensional time-space continuum. It's something that could be fought over. You can use it at a time. Two jets can't be flying together at the same time. So I think it has to have that element. Whether you call it tangible or not, I'm not sure where tangible has to be used. However, if you think about it, every lawsuit and dispute by people that claim to have property rights, it all really comes down to tangible things.  The dispute really is always about a scarce thing and maybe a tangible thing. Because it comes down to instantiating the idea. If I have a patent on a new way to make a law, the guys are living in caves and some guys say, hey, let me make a cabin, a log cabin. The other caveman sees him doing that and starts doing it. Well, if the first caveman wants to stop him, he wants to make him not use his own logs on his land to make a house. So he really wants control over that guy's logs and physical things. So that's where the dispute always comes. The current rule is who gets to control these physical things? The guy who found it. Not the guy who thought of a way to use his physical things. Yeah. Yeah, I'm back. Okay. Yeah, the Constitution does authorize copyright and patent law. It does not authorize trademark law. That's been passed under the Lanham Act based upon the Interstate Commerce Clause. Just because Congress has the power to do something doesn't mean they have to do it. It doesn't mean it's justified in the first place. The ridiculous examples, I don't mean to imply that everything that's patented is not a good invention. There are some good inventions. And you're right, most of these inventions will not be asserted. The silly ones I showed are not going to be asserted against someone, but some of them were. The Amazon one-click patent, and that's ridiculous in my opinion. And there's a lot that are not ridiculous. Even the ones that are not ridiculous that are good inventions, the guy that comes up with it have a right to stop you. I mean, look, you don't have to copy it from under patent law. Like I said, I can independently invent something. I can independently invent it first. And if you come up later with a patent on it, you can stop me. This is the danger that large chemical companies face. For example, they have these nozzle designs. They usually keep them trade secret, ways of mixing chemicals. They spend billions of dollars building these plants. The danger of keeping it secret, the good thing about secret is trade secret lasts for decades. It can last forever, theoretically, as long as you keep it secret. But let's say you're doing it for 40 years and some guy finally reinvents it on his own and files a patent on it.  So I don't see why that's just. I agree that Congress has the authority to do it. The Congress has the authority to conscript people as well. I think it's all unjust. Did you briefly explain where the consensus mentioned got the idea to give the patent? I think they were trying to systematize what had been done in a kind of ad hoc way previously as like a kind of monarchical privileges being great. Like you'd have a patent on you're the only breadmaker in the city or something like that. And it was done in exchange for it was a favor given to this merchant to support you or something like that. So I think they were trying to do away with the have a more democratic system a more less monarchical system and have a more systematic, bureaucratic way of administering it. I don't know where they got the kind of wealth maximization idea.  Well, I mean my understanding is a lot of independent musicians put their stuff out for free on Myspace and stuff intentionally trying to get, they want people to listen to their stuff, they want to get a name. So I don't know if your case is... Absolutely. I don't have all the answers to that. We live in a copyright-mired world where we're used to it. A lot of institutions and arrangements and creative ways of financing and mumbling and all these kind of things we can guess at them and there's some ideas. We don't really know what would arise in the absence of copyright law. But I suspect there's going to be ways to make things... people will come up with ways to do it. I mean maybe touring and live performing will become the predominant way of making money and... still that. I hear you and I just, in my opinion, the solution is not the state copyright system. I mean, the concept of copyright like patent is inherently ambiguous. It doesn't cover just literal copying which is what your CD would be. It covers derivative works and all these things, subtle changes. I mean all of your work and everyone's work builds to some degree upon what people have done in the past. So where's the dividing line? I don't trust the government to make that decision. So I don't know what the answer is. I think people would have to figure it out on the free market but I don't think that justifies the copyright system. The other solution is if you think about the way that, for example, the law of merchants was able to secure agreement solely to that boycott and reputation not through not through any kind of worsening then it's possible that the ways of submission times as it were, copyright protection not before, specifically then that companies that outpaying the artist rather than just sort of spontaneous individual boycotting have sort of a systematic legal system although it's a coercive power but has a sort of reputation effect this company doesn't pay as artists so on I agree completely and a system like that wouldn't be perfect, it wouldn't stop everyone even today's system doesn't there's bootleg copying rampant in China and Asia and even in America there's just enough profit for people to do it so a system like that I think that's possible too I think that could be explored one more question yeah they might if anti-trust law didn't prevent them from doing that, that's true


But the country music hall of famous inducted Ray Charles, the Jerds and two studio musicians who contributed to classic country songs. Charles' induction in Nashville, Tennessee showcases genre-defined country releases which demonstrated the country's music's commercial appeal. He grew up listening to the Grand Ole Opry and the 1962 released Modern Sound in Country and Western music, which became one of the best-selling country releases of his era. Blinded and often at a young age, Charles is best known for R&B, gospel, and soul. His decision to record country music changed the way the world thought about the genre-expanding audiences in the civil rights era. Willie Nelson said, Ray's recording of I Can't Stop Loving You did more to expand country audiences than any other record had before. He recorded it for his Modern Sounds in Country and Western music album, a landmark work that introduced innumerable pop music fans to the beauty and soul of country music, from then on, until his death in 2004, he made country music an integral part of his repertoire. His first recording in 1959 to I'm Moving On, to informing that record company in 1961 that he would record an entire country and Western album, they told him he was crazy. Mr. Charles always stood his ground for what he loved, and country was one thing that he truly... Hello, hope you enjoyed the news. Please do subscribe to our YouTube channel and don't forget to hit the notification button so you get notified about fresh news updates.