Theses about Intellectual Values

Written after a discussion with V.Sh.Kaufman

Laws on intellectual property (IP) cause unprecedented criticism, up to the creation of quite successful political parties to act against the existing laws. For example, the Pirate Party exists in 9 EU countries.

Rationale behind the existing IP is unconvincing.

Criticism against the existing laws is reasonable from different points of view, and it is convincing.

The commonly proposed changes for these laws are either insufficient or destructive, without offering alternative solutions.

I believe that patent and copyright laws were useful at least until 1970.

As latest from 2000, copyright, patents, and other IP laws do more harm than good. Over time, the situation is aggravating.

I suggest a gradual transition to an alternative version of the laws in this area, the laws on intellectual values (IV).

Do not ban the use of intellectual products without permission of the copyright or patent owner (in order to give the opportunity to earn on this product). Instead, pay remuneration to the authors, according on the value of their contribution. The concept of the copyright (or patent) owner should gradually disappear.

Funds for the payments of remunerations could be taken from a special fee or tax on the use of IV. The tax/fee can be similar to a tax on income for individuals (progressive or flat rate). For legal entities it can be either similar to tax on profits, or depend on the actual use of patents, etc.

The amount of the reward must always increase with increase of real contribution: economical effect due to patents, number of playbacks of the author's songs, etc. And with increased contribution, the compensation rate should gradually be reduced. The following function looks suitable.

reward = A * log2 (contribution / B + 1)

The author, whose songs during a month people have listened B times (or whose patents saved B rubles) is rewarded by A rubles for the month. Parameters A and B allow to adjust the function to a real situation. The initial values of A and B should be chosen so that for the majority of the authors recipient of money the reward is almost unchanged.

Estimating of the contribution is to be done by the methods used today for ratings of TV program, artists, authors of books, etc.