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IP lawyer here. Rayiner is correct, but he left out one piece of the explanation of why it's thought to be important to keep out free riders: The rationale is
by dctoedt 9y ago
IP lawyer here. Rayiner is correct, but he left out one piece of the explanation of why it's thought to be important to keep out free riders: The rationale is that, when innovators make significant investments in R&D, those innovators need a period of time in which to be the only ones able to sell the benefits of the innovation. Otherwise, free-riding copiers, unburdened by the innovators' R&D costs, would compete on price, which would drive prices down to competitive (i.e., marginal) levels that would not allow the innovators to recoup those R&D costs.
And here's the important part: Such rapid price reductions, it's said, would discourage future investment in R&D, because innovators and their investors would think "why bother; I'm not going to donate my time and/or my capital for no return, just for the sake of being a benefactor to humankind."
A simple analogy: Why bother spending the time and money to plant and raise a crop if your neighbors can come in and harvest the crop without paying you — among other problems, you'll be far less inclined to pay for the seeds and fertilizer it would take for you to raise the next crop.
So goes the theory; the extent to which that theory adequately models reality is something on which I'm not competent to opine.