This is not a correct application of the law of supply and demand because your premise is flawed. IP may be super abundant, but any one piece of IP, if it is truly an original creation, is unique. That is what gives it value. For you to say that IP loses value because there is so much of it out there, approaching infinity in abundance, would be true only if every piece of IP was identical to the next. But they aren't.
It is a perfect application of supply and demand-though applied to a unique, immaterial "thing".
If something is "unique" then law of supply and demand says the value goes up, not down. This was the point I was trying to make.
Having a million identical widgets for sale drives their value down. Having a million unique ideas available for development or publication is not equivalent, because each idea is unique. A good song about teen angst can still make money, while a crappy song about teen angst won't make any, and doesn't lessen the value of the good song even though they are both songs and they are both about teen angst. They are unique, not the same commodity.
Yes, but a widget that exists in the quantity of a million is less valuable than the widget that exists in the quantity of 10. You misunderstood the premise.
No, I didn't misunderstand the premise. That's why I used a quantity of a million. If you have more supply, price goes down. I was trying to illustrate that identical widgets are not the same as unique ideas. A million of one doesn't equal a million of the other because it's "same thing" vs. "each is unique."
To use Zippyjuan's example, your argument that something loses value because there is a near infinite supply doesn't hold water unless you have a million different people each coming up with their own unique, unrelated design for super efficient engines, all of which work and produce the same result. But you don't. You might have a few different designs for such an engine, but not approaching infinity.
Not true. The laws and principles of economics apply regardless of the situation. Since we have a limited number of people at any one time "chasing" an idea, and the demand for the idea can be met perfectly simply by copying, the price of the idea (not the medium it is captured in) goes to zero. If I hear your song on the radio (and can remember it perfectly), I can perform it as many times as I wish without taking a cent from you. The premise you rely on is that a copy represent a "lost profit" or "lost opportunity". But it simply isn't true. Had there been no historical precedent of legal grant of IP, this argument would never have occurred to you because of its obvious absurdity.
But saying it's an obvious absurdity, and/or saying or implying that there is no good reason for such a legal precedent, is an ad hoc argument. The reason IP laws exist is precisely because it IS possible to copy information (unlike a tangible good) and thereby deprive a creator of the ability to be compensated for the results of their work. When the results of your work can simply be copied, without IP rights, you can work your butt off and someone else can profit from it, or get the fruits of your labor for free without your consent, and to me that is an obviously absurd situation.
If your boss said to you on payday, "Well thanks for all your hard work, and by the way, we decided not to pay you for your efforts any more, but thanks, and see you tomorrow, keep up the good work!" Would you keep working there? I hope you wouldn't, because your work should be rewarded (in a free market system).
Now, the hearing a song on the radio example might get ridiculous. If someone says I can't sing a song I just heard on the radio for my own enjoyment, that's ridiculous. It isn't depriving anyone of any income opportunity, obviously. But--if I hear a song on the radio and now I sing that song to an audience and make money doing it, then I should pay a portion of that income to the person who wrote the song. Because, without their creation, I would not be making that money by performing my copy. I don't see anything sinister about that; it's common courtesy and common sense to me.
To me, one book might have value and I don't mind paying ten dollars for it, because the subject interests me. Another book may be of zero interest to me, so the value of that book to me is zero, and therefore I won't buy it. The two are unique; they are not the same commodity just because they both happen to be IP.
Not relevant. You are just proving my point that the "value" of IP is subjective and arbitrary.
Clear? If not, I'll elaborate. I'm writing somewhat hastily at the moment.
I agree, it is subjective, and some ideas have more value to some people than other ideas. But again, I was trying to explain my original point, that you cannot say intellectual property is worth zero simply because so much of it exists. Because each piece of it is unique. When you have only one of a unique thing, it has more value, not less.
Through copying something as many times as you want, then yes you can create a near infinite supply of that IP; it's no longer unique. That reduces it's value to zero. If
that's what you were saying, then I agree. But that is why IP rights exist, because again, people should be able to profit from the results of their work. Without any concept of IP, then people whose work yields a valuable result that is intangible and able to be copied, may find themselves shortchanged for their work.
I don't see why people are willing to pay a painter to do work to paint their house, and they're willing to pay for the food they eat, and they will pay for a car, they will pay for a shirt or a new pair of shoes, they will pay for all the other products of someone's work, but they think musicians or authors or other creators should not get paid for their work. I don't understand why one person's work should be compensated while another person's shouldn't. If someone chooses to work for free, that is their decision, but they're the only one with the right to decide that, not me. If they want to make money on their creation, they should also have that choice. (Libertarianism is the concept that I don't own other people.)
There is a difference between a free market and anarchy. If you had two supermarkets next to one another, and either owner is free to walk into the other and take anything they want, without paying for it, and go back to their own store and then sell it for a profit, that is not a free market. That is anarchy. A free market does have to have some basic property rights in order to function. This applies equally to work that results in intangible valuable products too, not just work that results in tangible valuable products. That's why the concept of IP exists.