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Saturday, July 5, 2025

Property Rights

 Property Rights

Property rights have evolved over centuries, shaped by legal, economic, and philosophical developments.

·       Natural and historic – animals’ territory (especially for predators) with fights when territories violated. Human predators were likely similar.

·       Early tribes had specialized tasks, hunters, gatherers, cooks…Consider environment needs like fresh water. Then with the Agricultural Revolution farms and herds needed protection from thieves.

·       Premodern times no patent laws, all inventions could be stolen and often were, so no advantage to inventor if it could be copied. In fact, the inventor might be in peril.  For example: The story of the Prague Astronomical Clock, or Orloj, and its designer, Master Hanuš. According to folklore, after completing the clock in 1410, Hanuš was blinded by city officials to prevent him from replicating his masterpiece elsewhere. While historians debate the accuracy of this tale, it raises compelling questions about property rights and intellectual ownership.

·       Lack of property rights, especially intellectual property rights can discourage innovation, especially where upfront investment is high (like research) and imitation is easy once the formula or method has been  found.

Before Formal Property Rights

Before structured legal systems, property was often controlled by customary laws or communal ownership. In early societies:

  • Land and resources were typically shared among tribes or communities.
  • Possession was often determined by physical control rather than legal ownership.
  • Disputes over land were settled through force, negotiation, or tradition.

The Emergence of Property Rights

  • Ancient Civilizations – The Code of Hammurabi (circa 1754 BCE) in Babylon included laws protecting ownership and punishing theft.
  • Roman Law (circa 500 BCE - 500 CE) – Established legal property rights, distinguishing between personal and real property.
  • Medieval Feudalism – Land was controlled by monarchs and distributed to nobles in exchange for loyalty and military service.
  • The Enlightenment (17th-18th Century) – Thinkers like John Locke argued that property was a natural right, influencing modern legal systems.
  • Industrial Revolution (18th-19th Century) – Property laws expanded to include intellectual property and corporate ownership.

Property Rights & Intellectual Ownership

  • Control Over Creations – The alleged blinding of Hanuš reflects an extreme form of intellectual property protection, where authorities sought to monopolize his craftsmanship.
  • State vs. Individual Rights – If true, this act highlights a time when governments exerted control over artisans, limiting their ability to profit from their own work.
  • Modern Parallels – Today, intellectual property laws protect creators through patents, copyrights, and trademarks, ensuring they can reproduce, sell, or license their work without fear of suppression.
  • Ethical Considerations – The legend raises ethical concerns about who truly owns an invention—the creator or the entity that commissions it? In modern times, disputes over patents and proprietary designs often mirror this dilemma.

While the legend of Hanuš may be exaggerated, it serves as a cautionary tale about the balance between innovation, ownership, and control. Should creators always retain full rights to their work, or are there cases where restrictions are justified?

Before formal copyright laws, creators often struggled to protect their work from unauthorized reproduction. Here are some notable examples:

  • Shakespeare’s Plays (16th-17th Century) – William Shakespeare’s works were frequently copied and performed without his permission. Some scholars believe he intentionally altered scripts to prevent unauthorized versions from being widely circulated. There is some speculation that Shakespeare didn’t write all of his plays.
  • The Gutenberg Bible (15th Century) – Johannes Gutenberg’s printing press revolutionized book production, but early printed works had no legal protection, leading to widespread copying.
  • Venetian Printing Privileges (15th Century) – The Republic of Venice granted exclusive rights to certain printers, effectively creating an early form of copyright. However, these privileges were often temporary and did not fully protect authors.
  • French Royal Privileges (17th Century) – In pre-revolutionary France, authors and publishers had to obtain royal approval to publish books. These privileges were exclusive but could be revoked, limiting creative freedom.
  • Opera Monopolies (17th Century) – Jean-Baptiste Lully, a composer in Louis XIV’s court, was granted a monopoly over opera performances in France, preventing competitors from staging similar works.

These examples show how creators navigated intellectual property challenges before modern copyright laws.

History is full of cases where inventors had their ideas taken or credited to someone else. Here are some notable examples:

  • The Telephone – Alexander Graham Bell is widely credited with inventing the telephone, but Antonio Meucci had developed a similar device years earlier. Meucci couldn't afford the full patent fee, allowing Bell to secure the patent instead.
  • The Light Bulb – Thomas Edison is famous for the light bulb, but Joseph Swan had already developed a similar incandescent lamp in Britain. Edison later reached a settlement with Swan.
  • Monopoly – The famous board game was originally created by Elizabeth Magie in 1903 as "The Landlord’s Game." Charles Darrow later repackaged it and sold it to Parker Brothers, taking credit for its invention.
  • TelevisionPhilo Farnsworth invented the first fully functional electronic television system, but Vladimir Zworykin, working for RCA, attempted to claim credit. Farnsworth won a legal battle but struggled to receive full recognition.
  • Intermittent Windshield WipersRobert Kearns, an independent engineer, invented the intermittent windshield wiper system and patented it in 1964 and the patent was granted in 1967 but major car manufacturers like Ford and Chrysler used his design without permission. Kearns fought a long legal battle and eventually won damages in 1990 and 1992, but it consumed his life.

The last point about windshield wipers would have been quite different had Kearns worked for Ford or Chrysler. Using their facilities they likely would have been entitled to the invention. How they compensated him would be up to the corporation. This is a similar dynamic we saw in the distribution in Economic Value and Billionaires, concerning sweat equity (the usually lower pay for promise of rewards should the enterprise make it big) for employees in start-ups.

The discussions about Risk, Value and Worth, Billionaires, Wealth Distribution, Conquest, Conflict, Basic Economics, Motivation, and practically every topic relate. 


Private Property 


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