• Unit 9: Intellectual Property

    Can you own an idea? This 9th unit looks at the concept of intellectual property from the Austrian perspective. Topics include libertarianism, self-ownership, property rights, and the state's role in legislating them. We discuss the work of Stephan Kinsella on patents and copyrights.

    Completing this unit should take you approximately 3 hours.

    • Upon successful completion of this unit, you will be able to:

      • explain how the scarcity of a resource can prompt individuals to declare property rights over it;
      • explain the relationship between libertarian political philosophy and the market economy;
      • identify the elements of legitimate property;
      • differentiate between natural law and legislation;
      • explain the concept of intellectual property rights and why some consider it illegitimate; and
      • evaluate the different problems with patents.

    • 9.1: Lecture

      • Lecture Page

        Property may be defined as an exclusive right to control an economic good and is derived from scarcity. How, then, could it be possible to own an idea if it is not scarce? Watch this video lecture to understand the fundamental concepts of property rights and the problems caused by intellectual property laws.

        Topics covered include:

        • Challenges with patents
        • Natural law vs. legislation
        • Scarcity and property rights
        • Elements of legitimate property
        • Intellectual property controversy
        • Libertarianism and the market economy

        Key points:

        • Patents stifle innovation and cause endless litigation
        • Intellectual property laws are simply state grants of monopoly privilege
        • First mover advantage provides enough motivation to encourage innovation
        • Property comes from scarcity. It is the scarcity of a resource that urges individuals to declare property rights over it
        • Libertarianism revolves around the idea that no man or group of men may aggress against the person or property of anyone else

    • 9.2: Discussion

      • Discussion Page

        Since you have watched the video lecture for unit 9, it's time to watch Saifedean moderate a discussion on the unit's theme by addressing questions asked by your fellow classmates. As you watch the discussion unfold, take notes to help you retain information. Make sure you watch the entire discussion seminar video; otherwise, you may skip over important points. To get the best learning experience and mastery of the major concepts covered in this unit, you'll want to watch all videos in their entirety.

        Topics discussed include:

        • The FDA system and its huge regulatory burden
        • Would there be less innovation without government intervention?
        • What would the legal profession look like without intellectual property laws?