At the same time, ideas are different from physical property, like a house or a machine that two people or companies can?t use at the same time. Ideas are ?non-rival? in nature, which means everyone can use them at once, and they don?t wear out from use. We allow patents to expire after a number of years so they can eventually be used by everyone, and we permit inventors to license their use to others in exchange for payment, so the greatest number of people benefit from innovations even in the short run.
We also let people buy and sell ideas?the same as a house or car?to allow their rights to be transferred to those who can make the best use of them. Biotech companies can focus on developing new drugs, then transfer their ownership to pharmaceutical giants that can manufacture and market them. The much-romanticized solitary inventor can focus on coming up with new ideas, then sell them off to someone better suited to selling licenses or using an application.
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