A brief musing on intellectual propertysteemCreated with Sketch.

in musing •  8 years ago 

I just read an article on Interesting Engineering about the inventor of the fidget spinner, a small toy held in the hand and spun around a hub to release nervous energy. According to the article, which I won't link to because I don't want to give it the SEO points, the toy is a worldwide hit, but the inventor hasn't profited from it. The article goes so far as to state in its tag line that this is due to her lack of patent on the product:

The woman behind the worldwide phenomenon [ ... ] isn't making a penny from them -- all because she couldn't afford the patent fee.

Now, I'm generally an opponent of intellectual property (IP), since my thoughts on IP conclude that it is far more likely to harm creativity than incentivize it. Initially I was inclined to move on since the article was clearly based on invalid premises, but some small voice of reason in my head said maybe I would benefit from reading it and seeing if I could spot the error.

I quickly diagnosed the tag line to be a direct contradiction with the article, as the article reluctantly points out that she held a patent for more than 8 years, but apparently couldn't sell the product because she couldn't spare $400 to renew said patent. I say it points this out reluctantly because rather than lay this information out directly, they hid it by only saying that the woman who invented the toy did so more than 20 years ago, and lost her patent on it in 2005 when she could not afford to pay a $400 fee to renew it. If it's 2017 and she invented the toy more than 20 years ago, it must have been before 1997, and if she had a patent until 2005, she must have had it for more than 8 years, from '97 to '05, during which time it made her absolutely nothing since she couldn't afford to renew it for $400. If the patent had been in the tiniest degree profitable, she would have gladly dropped the four benjamins to keep the party going.

So possibly the most irrational conclusion possible is that holding the patent for more years would have made her rich, yet this is exactly the article's conclusion (and introduction). This conclusion seems to be an application of the principle, If what you're doing isn't working, keep doing it. Right, obviously it must be an effective strategy; if it weren't, it would be working by now!

Perhaps it's time we dropped that principle. Practice has demonstrated time and time again that intellectual property is not the optimal strategy to reward creativity. It works sometimes for some people, but far more effective models have already been pioneered. I know your school teaches you (without ever directly saying) that IP is the only way to go and any other ideas can be safely ignored. I know your government tells you IP is necessary and civilization would collapse without it (even though civilization was invented without it and, historically, has thrived most successfully in its absence). But none of it is true.

Articles like this may accidentally propagate the very ideas that impoverish the creatives we all (especially opponents of intellectual property) want so much to reward. IP was a bad idea. It's time to lay it to rest. Using IP to reward creativity is like sticking a knife in your foot to fix an ingrown toenail. In theory it's supposed to help, but in practice it just makes the problem worse.

That is all. Thanks for reading!

This post was written for you by @modprobe in the hopes that it makes your day just a bit better. Intellectual property is a lie; use the text of this post however you want, after all, I wrote it for you! If you post it elsewhere, though, you get extra awesome points for mentioning it in a comment here!

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In the age of hackers, property theft, etc, we don't even know where ideas originate anymore. Patents benefit big corporations and not inventors.

Hmm... Try putting some blockchain on it. ;-)

Yeah. New technology should serve all of us. But on the other hand we would not have many great inventions if companies were not able to earn back the money that they invested in development. Maybe the solution could be the law which is now used only for medicine patents. Company can patent new pill but after 5 (or 10) years the patent cease to exist and everyone can start making that same pill...

Crazy! My daughter was playing with one that looks exactly as pictured and I had never seen these until two days ago!

I saw them in an imported goods store last week for the first time. Haven't tried one yet, though.

@modprobe I heard about the story too. I feel so bad for her. With the boom of shopify in the last years, lots of people make millions with the fidget spinner.

The whole concept of intellectual property is interesting. The whole purpose of it is to claim ownership and distribute it. We want others to have things, but we don't want to be theirs. We want to sell someone the privilege to use things that we want them to use. Paradox?

Interesting. My nephew, a 4th grader, was over last night and had one of those gizmos. Anyway, there are other examples of the situation you cite, where a lone inventor becomes impoverished due to lack of production. Look up the story of intermittent windshield wipers as an example.

But my real question is this - Do you have a sense of how to positively incentavise creativity? In theory, an inventor, author, muse, etc. should be able to reap some reward if a product of their creativitiy is found useful. Particularly in cases where others are profiting from that creation.

I'm with you though, as a purvayor of open source software, I am not so worried about licensing my output as I am about producing what other people want. But this model isn't for everyone. Particularly not for folks inventing useful or novel gadgets and need help manufacturing and bringing them to the market.

Circling back to the little spinny dealies, does the source article state whether or not the inventor tried to license her invention to manufacturers and failed? Or manufactured some and failed to get them to the right market? I wonder why she failed to be successful during the patent period.

  ·  8 years ago (edited)

I don't want to speculate on the details of why the manufacturer failed to be profitable during those 8 years. I'm not sure anyone other than her has enough information to render such a diagnosis. Like all such stories, it's a complex and unique situation. I can, however, take a step back and see the overall pattern: as is so often the case, people trusted IP to help them get rewarded for their invention, and instead it prevented the invention from helping anyone at all, least of all the inventor. Intellectual property has not yielded a desirable outcome, and it rarely if ever does so, but counterexamples are abundantly available. Literally any other strategy is better than a known bad one. An even worse strategy still teaches more than a known bad one.

But the problem with IP isn't simply that it's a bad strategy. In fact, the problem isn't IP at all. IP is the symptom. The problem is the mindset and goals of the inventor, as evidenced by the use of IP. Why did the inventor create the toy? Was it to get rich, or to (for lack of more specific information, I will say...) make people's lives just a little bit brighter? If her goal was to get rich, her strategy of inventing a toy to get rich is horrible. Inventing widgets is one of the hardest ways to make money. Thus if her goal is to get rich, she failed because her strategy was not designed to realize her goal. To get rich, a better strategy is going into banking. Federal Reserve Notes are monopoly money, so the best way to get them is to be Hasbro, which can print them to its heart's content. :-P

Was her goal then to brighten people's lives? If so, then I think we must agree that she succeeded in her goal, albeit only after pruning the self-destructive strategy of using a patent. If this was her goal, the patent is a strategy directly inimical to her goal, thus it makes sense that she accomplished little until abandoning such a terrible strategy.

Now, of course this still feels incomplete, and indeed it is. We still don't have what we actually wanted. What we actually wanted was for the inventor whose goal was to brighten people's lives, and who succeeded in achieving that goal, to be rewarded for her efforts. But this didn't happen. Why not?

To unravel that knot, we must first consider that one goal of money is to reward such inventors for their work. Money, being a technology, albeit an old one, was invented to serve this purpose (or at least, it's illustrative at present to suppose it was). It is a decentralized reward mechanism which flows from consumers to producers, and inventivizes all to produce more than they consume. The degree to which money flows to a person should parallel the degree to which they produce more than consume. Why doesn't it do this?

Well, that's a very complex problem, which no doubt stems from many bad strategies implemented by inventors and many others. The world has been convinced to adopt a lot of self-destructive strategies, and we are seeing the consequences of those. But in the case of money not reflecting value creation like it should, we need look no further than the strategy represented by the Federal Reserve Notes people have been given to use as money. Those notes are not intended to work as a good money; in fact, quite the opposite, they are designed to implement the abstract interface of money*, while providing a very different result entirely: to transfer economic energy from the users of the money to the printers. In short, if we want our money to start reflecting value creation correctly, we need to stop using this monopoly money that is designed to accomplish something fundamentally different, and even opposite.

Will that solve all of our problems? No, but it will simplify them more dramatically than any of us can predict, and from there it will be much easier to see the next biggest failing strategy.

* For the less computer science inclined among us, this means to look and feel like money to the extent that you can't tell the difference between federal reserve notes and real money in day to day life. But the differences are there behind the scenes, and they have effects that eventually trickle back to you, but by that time it's no longer obvious that the fake money was the cause; all you can see is that you can't buy as much per hour of work as you used to be able to.
  ·  8 years ago (edited)

Generally speaking if an inventor is good at their job they will receive rewards by being just that: an inventor. If you've only ever invented the hammer and could not think of anything else, then that is where your creativity ends and thus your role as an inventor didn't evolve into a real career to support your community. Just because the hammer is particularly useful doesn't mean you can hoard the idea without direct negative consequence to your entire society. However, if you invent regularly and others find them useful inventions, people will come to you with their problems and you can then negotiate a wage to compensate for the time and effort you will put into solving their problems. Curators do not make a living off of their creations, they make a living off of their ability to create.

I know this is gonna sound crazy, but maybe the reason they became so successfully is because they don't have a patent on them, meaning that anyone can make them thereby reducing the price to a worthwhile one. Who would have thought that reducing the costs of production increases the rates of production? Why even have economists if no one listens to them -_-

Great point here and food for thought, thanks! 😀👍

THIS is how it's done my friend ; )
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HIGHLY rEsteemed!

Good read! Thanks @modprobe

very good

Lot to learn from this for future inventor's... how important is IP to become profitable...

I literally found out yesterday what a fidget spinner was lol

We have a new law now (in Czech republic) thanks to which you can win lawsuits even without patent. You just have to have enough evidence that you were the first making it / selling it. Anyway, nice article.

I do not say that IP is generally a best strategy BUT… U said she couldn´t sell it because she couldn´t afford prolonging of her patent. The thing is, in capitalism an idea is not enough. You have to spread the knowledge about anything basically with money investment. Patent only servers for her to have her 20 years to try and make money out of something she created while no one can do the same for that period of time. If they do so, they earn you money anyway (if you find someone breaking your patent ofc:D). The point is that patent only gives you the time to use your invention however you want (in capitalism making as much money as you can from it, before capitalistic whales come in and just copy all you have done with incomparable amount of money). If she wasn´t able to afford the prolonging, she weren’t able to gain that much money, but that’s fine she can still sell her innovation, it’s just others can do so now too.

I see a few errors in your reasoning, and I see several unquestioned pundit talking points reproduced in your rhetoric that do not hold up to scrutiny. Perhaps research Austrian economics (searching YouTube videos is a good start), which is the most clear-headed and easy to understand economic discipline I know of, which is why it usually produces the most accurate results. Things will begin to make more sense. It will take some time, but give it an honest effort, don't just go in trying to prove a point, but really try to understand what is being said. If it's not making sense, try another source until you find one that puts it in a way that makes sense to you. When you do, you'll understand what I mean. Good luck, friend! :-)

Be particularly careful to only understand words in the sense that the speaker uses them. Words like "capitalism" are tricky because they mean so many different things to so many people, and it's impossible to have a meaningful conversation without a shared vocabulary. I think that's where 90%+ of the confusion around these arguments comes in: not being fully clear on what each other mean by certain words.

I never said I know it all. I´m not really into IP and I admit that half of the knowledge I have about it comes from school. I never force my opinion onto anyone – just saying what I feel is true. I do not feel the same from you yet, but since I´m strictly positive I´ll give it a try.

You don’t need to teach me the essence of my studies :D. If you think you don’t understand a word I used, just ask. Capitalism doesn’t have strict definition in my mind. Its understanding comes from me watching how world under the system we call “capitalism” works. Basically sector, where money is located, has power and individuals, which have money, have power. Money is cumulated under personal, or corporative ownership. Quick example – earth is dying because it’s not being protected by people, because there is no money from it. When the situation reaches critical threshold, money will flow into a sector “saving planet”, minds will be attracted, because they could gain part of that money for their own needs.

Now to the IP. Its purpose is to guard your idea from plagiarism. If there was no shield from individuals, or corporations, that have tons of money to use your idea to produce products that could be sold on a market, you would be helpless. Though if they have a lot of money and you don’t they can bypass it anyway (even if they had to terminate you - that’s just way of life, in this case the humanity).
Now instead of saying IP is bad and my argumentation is bad…please enlighten me :). As I said I´m not really into it and I would be honoured if you explained why it’s bad and what would your solution for it be, since every real sceptic has to have at least an idea of what could work better. I don’t have time, nor motivation to study something I don’t want to study, but I have plenty of time to hear out constructive perspective of another human being.

I wouldn't say your argumentation is bad. The issue is that your premises are wrong. Your argumentation may be fine, but if your axioms are wrong, you'll still get wrong conclusions and it'll make perfect sense the whole way through, it just won't describe reality accurately.

Unfortunately, experience has taught me that I am not presently able to explain issues this complex in comments and text. When I try, it goes badly. If you want to understand my perspective, you can't get it by fitting what I say into your current framework, you've got to build a new framework within which you can properly understand what I say. Does that make sense? In practice, to understand my meaning, you'll have to look at how I describe the world and to understand how what I'm saying can possibly make sense. Once it does, you'll be able to compare this new perspective with your previous one and either unify them, or determine which one is more constructive and descriptive of reality. I think you will find that your current understanding is valid, but incomplete.

I do not assert that I am smarter than you, or even more correct than you, but I see things that you don't in this particular case, and I think you would benefit from understanding my perspective. There are undoubtedly countless other topics where you see things I don't, and I would absolutely benefit from seeing your perspective on them. What I'm still working out is how to effectively accomplish that sharing of perspectives, particularly over the internet. No one ever taught me how to communicate like that, so I'm trying to figure it out for myself. Forgive me if I flail a bit as I make mistakes and learn from them. :-P

We are understood then and positively on the same boat. It does make perfect sense, since I´ve already incorporated that knowledge into my pillars. So all I do is, that I humbly ask, whether you will try to share your pillar (or more if needed) with me, so I can get more insightful perspective, or you won´t, because it will be waste of time for you (perfectly understandable don´t take me wrong). Be it anyway, was a good talk to me!

if shee was on steemit it would give hetr 100% upvote.. the world is crual

For solve this problems , we are in new era . check this :

https://steemit.com/art/@rayandoelimi/are-you-an-artist-or-creator-check-this-is-for-you

Also, it is quite possible the only reason anyone made money off these toys is that when the patent lapsed, bigger more profitable businesses were able to recreate it, rebrand it, and market the hell out of it.

Just guessing the creator didn't have the business sense to do so or she would have got more than the $400 she needed to keep it active.

I too am not in favor of patents and IP, but I am not out there trying to make a buck off a product. I think unfortunately it is a fairy tale story people, especially in the US believe, that "one good idea" will make them rich!

We need to wake up and get to work and share our ideas openly to collaborate and bring them to fruition. Plus almost no one wants to "steal" your ideas, because well, they have their own half-baked ideas...