Question

Intellectual property rights are important to a free enterprise system because they:

A. ensure that all companies benefit equally from new ideas.
B. help governments set prices for essential products.
C. prevent the courts from interfering with private businesses.
D. prevent companies from stealing ideas from innovators.

Answer 1

• Prevent companies from stealing ideas from innovators.
• It allows entrepreneurs to profit from their ideas.

Step-by-step explanation:

Intellectual property is as vital. It protects the same type of work and the same esteem as property. IP rights are worth securing, both home-wise and overseas. Most free-market advocates will continue to recognize these points rather than falling for myths and misunderstandings.

• Unregulated free enterprise refers to business activities by the government but is defined by a set of legal rules such as property rights, contracts, and competitive bidding.
• The argument for free enterprise is based on the belief that government interference in business and the economy hampers growth.
• A free enterprise legal system tends to result in capitalism.

Intellectual property (IP) contributes enormously to our national and state economies. Dozens of industries across our economy rely on the adequate enforcement of their patents, trademarks, and copyrights, while consumers use IP to ensure they are purchasing safe, guaranteed products. It thus guards the life and freedom of its owners and provides uniquely important support to free expression and free inquiry.

Answer 2

D. prevent companies from stealing ideas from innovators.

Step-by-step explanation:

Ideas/inventions alone are not enough to be successful in business. People also need to have the capital and connections necessary to be able to sell the products that they invented to the market.

Without Intellectual property rights, massive corporations could just take away game changing ideas/inventions from the smaller innovators and beat their sales in the market simply because they have larger capital. (These massive corporations could spent a lot more money for things such as advertising and mass productions .)

This is why intellectual property rights are important. So new businesses are not discouraged to invent a new/better product and join the existing competition in the market.