Copyright and Patent Laws Are Killing Innovation

Michele Boldrin and David K. Levine, two leading economists from the Washington University in St. Louis, believe that the time has come for patents and copyright to disappear as pieces of legislation from the laws of all countries. They say that the most important asset that any nation now has in front of the economic crisis is innovation, but that these two types of laws hinder it, and prevent new and potentially marketable products from reaching customers. In their new book, “Against Intellectual Monopoly,” the two argue the necessity of making copyright and the patenting systems obsolete.

“From a public policy view, we'd ideally like to eliminate patent and copyright laws altogether. There's plenty of protection for inventors and plenty of protection and opportunities to make money for creators. It's not that we see this as some sort of charitable act that people are going to invent and create things without earning money. Evidence shows very strongly there are lots of ways to make money without patents and copyright,” Levine, who is the John H. Biggs Distinguished Professor of Economics at the Washington University, argues.

He goes on to explain that “Most patents are not acquired by innovators hoping to protect their innovations from competitors in order to get a short term edge over the rest of the market. Most patents are obtained by large corporations who have built portfolios of patents for defense purposes, to prevent other people from suing them over patent violations.” He and Boldrin also say that, at the moment, license fees, regulations and patents make it extremely difficult for new ideas to get across, and to do their part in helping boost the damaged economy.

“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,” Boldrin, who is also the Joseph Gibson Hoyt Distinguished Professor in Arts & Sciences, as well as the Chair of the Economics Department at the WU, adds.

They do not advocate the complete eradication of patents, but rather that they only be granted to people who can prove that their inventions have social values, that their idea will not block others, as well as the fact that it would not be cost-effective if they don't have a patent.

Their work is bound to raise numerous controversies among economists, as well as with corporations that now hold portfolios containing numerous such patents. But, just maybe, in times of crisis, they will learn the importance of actually promoting innovation rather than hindering it.