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The problem is that it does affect the free market systems that China trades with. If China didn't trade with other countries I would agree, however Chinese com
by mattnewton 7y ago
The problem is that it does affect the free market systems that China trades with. If China didn't trade with other countries I would agree, however Chinese companies do trade in massive amounts, and the government has signed on as a member of the WTO. They agreed to certain rules of the road when dealing with foreign market economies and have benefit greatly from selling goods and services abroad. And in those market economies, expensive R&D that is cheaply replicatable is disincentivized without IP- the dominant strategy is to just wait for a competitor to innovate and then clone them. IP is a hack that balances out this strategy with licensing costs. If you remove the licensing costs, the free market most likely won't incentivize expensive R&D, and there will be a net loss to everyone in the market system. So of course people in the capitalist market system are kvetching about how they are competing with someone who doesn't pay licensing fees to balance out R&D costs.