IP

The purpose of property is to better manage the allocation of scarce resources. Since the resource is limited and not everyone can have it, property rights and property law make complete sense for a civilized society, allowing those with rights to the property to buy, sell and exchange their property. This allows for resources to be efficiently allocated through commerce and the laws of supply and demand. It's a sensible system for the best allocation of scarce resources. However, when it comes to infinite resources, there's simply no need to worry about efficient allocation -- since anyone can have a copy. The purpose of copyright (and of patent law), then, wasn't the same as the purpose of property law. It has nothing to do with more efficient allocation of scarce resources. Instead, it's a government-granted incentive -- a subsidy -- to encourage the creation of new works. In other words, it was a case where the government believed there was a market failure. That is, they believed that without this incentive, certain intellectual works wouldn't be created -- and the tradeoff between locking up that idea and creating more content was one that was worthwhile.
http://techdirt.com/articles/20070521/015928.shtml