Thomas Jefferson. A letter to Isaac McPherson August 13, 1813 Xavier Sala-i-Martin Columbia University

Background Information Before writing the Declaration of Independence and before being the third President of the United States, Thomas Jefferson served on the U.S. Patent Board In 1813, he wrote some thoughts on the patent system in a letter to Isaac McPherson

“If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of everyone, and the receiver cannot dispossess himself of it. Note: Jefferson says that ideas are NON- EXCLUDABLE

Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. Note: He says that ideas are also NON- RIVAL

That ideas should freely spread from one to another over the globe, for the moral and mutual instruction of man, and improvement of his condition, seems to have been peculiarly and benevolently designed by nature, when she made them, like fire, expansible over all space, without lessening their density at any point, and like the air in which we breathe, move, and have our physical being, incapable of confinement or exclusive appropriation. Note: He thinks that it is good that ideas are non-rival and non-excludable (“benevolently designed by nature”)

Inventions that cannot, in nature, be a subject of property, society may give an exclusive right to the profits arising from them as an encouragement to man to pursue ideas which may produce utility, but this may or may not be done, according to the will and convenience of the society, without claim or complaint from anybody. NOTE: In order to induce creation, we may want to protect intellectual property rights. BUT notice that this may also bring problems (because we grant a monopoly right to the inventor)

Accordingly, it is a fact, as far as I am informed, that England was, until we copied her, the only country on earth which ever, in general law, gave legal right to the exclusive use of an idea. NOTE: England was the first country to embrace the patent system

In some other countries, it is sometimes done, in a great case, and by a special and personal act, but generally speaking other nations have thought that these monopolies produce more embarrassment than good to society. NOTE: Other countries prefer not to grant monopolies to inventors because monopolies are bad.

And it may be observed that nations which refuse monopolies of inventions are as fruitful as England in new and useful devices”. NOTE: After weighting costs and benefits of granting monopoly power to inventors, he concludes that the harm is larger than the good. Thus, according to Thomas Jefferson patents are a BAD idea.