A theory of the Law and Policy of Intellectual Property - Building a New Framework

Two conflicting theories explain and justify the foundation of intellectual property.1 At one extreme, natural rights theory justifies the foundation of intellectual property rights to be based on the natural right that originates from the act of creation, as one owns one’s own creation. At the other end of spectrum is the theory that allowing free-riding by the second runner who imitates would give the second runner an excessive advantage and provides a disincentive to the creator who invested in the intellectual creation as the first runner. Incentive theory explains that intellectual property is founded to prevent this free riding.