Who Owns an Idea?

For most property, ownership is a straightforward issue. We give the auto dealer money and in return we receive ownership of a vehicle. We give the grocer money and in return receive ownership of a basket of food. The exchange of values transfers ownership.

Ownership in these instances is straightforward because we are dealing with a particular piece of property–a particular automobile or loaf of bread. While there may be a multitude of similar properties, we are obtaining ownership of a singular, specific property.

Intellectual properties–such as songs, books, and software–present a more complex issue. Who owns an idea?

The simple answer is: Nobody owns an idea.

For example, nobody owns the idea of accounting software. However, individuals (and companies) can own the particular material form in which that idea is made manifest. Intuit doesn’t own the idea of accounting software. It does own the particular form of that idea that is known as Quick Books.

The same is true of songs, books, and every other form of intellectual property. The individual (or business) that gives material form to a melody, a plot, or any other idea owns that particular material form, it is his property to use and dispose of as he chooses.

If an individual chooses to sell his work he can attach terms and conditions to that sale. For example, software applications come with terms of use that often prohibit installing the software on more than one computer. If we don’t like the terms and conditions, we don’t have to buy the software. We can write our own software, buy a competing product, or do without.

The right to property means the freedom to create, attain, keep, use, trade and dispose of material values. Property rights protect our freedom to determine what will happen to our property, even after we sell or license it.