Developing Markets Without IP Enforcement

It is clear that stringent enforcement of most intellectual property rights have the effect of granting monopoly rights for the exploitation of ideas or designs to firms or individuals. However, an enduring question among lawyers, economists and physical scientists is whether intellectual property enforcement of copyrights, patents and trademarks are altogether a precondition for innovation and development of products.

I am glad to link to Hal Varian's article in the New York Times today arguing for a more considered interrogation of the conventional wisdom that stringent protection is the only way to defend certain markets. This piece does not resolve the issue but argues cogently and links to other papers which attempt to demonstrate that not all industries benefit from IP rights enforcement. This certainly will not end the debate but points to the need for more incisive market analysis to develop principles that would allow for better public policy.