CASE ANALYSIS - CONT'D

Case #7 - Gifted transmission medium  / Wishing to retain ownership

This is the case where the medium carrying IP information can be owned by other people because the owner is gifting it. It is also the case where the owner of the absolute rights to the IP wishes to retain them.

There are two possible sub-cases.

Sub-Case #1: This scenario is the same as Case #4 above where a third party is allowed to view the IP but it is not allowed to re-transmit it. It is also theoretical only.

The result of this sub-case is that in this scenario the owner of absolute IP rights cannot lose them in a valid manner.

Sub-Case #2: This scenario is represents the case where the owner of the absolute IP rights wishes to gift the transmission medium (presumably for other uses) but to preserve all IP rights. For example, the case where a magnesium flare could be used to illuminate a field at night but where the light cannot be used to describe the manufacturing details of the flair itself.

This sub-case is the same as Case #1 above.  The result of this sub-case is that in this scenario the owner of absolute IP rights may lose them in a valid manner.

Case #8 - Gifted transmission medium  / Wishing to give away ownership

This is the case where the medium carrying IP information cannot be homesteaded (i.e. owned) by other people because it already has an owner who wishes to give it away. It is also the case where the owner of the absolute rights to the IP wishes to give them away.

This is the same as the Case #5 above.

The result of this case is that in this scenario the owner of absolute IP rights will lose them in a valid manner.

Case #9 - Gifted transmission medium  / Wishing to sell ownership

This is the case where the medium carrying IP information cannot be homesteaded (i.e. owned) by other people because it already has an owner who wishes to give it away. It is also the case where the owner of the absolute rights to the IP wishes to sell them.

There are two possible sub-cases.

Sub-case #1: In this case if the IP owner does not use a transmission medium in the process of selling the IP, then the transfer can occur in such a manner that the new owner obtains absolute IP rights. This is the same as the sub-case #1 in the Case #6 above.

For example, if Ulrich wants to sell the book without either him or the buyer having to read it first. As the book is never read, there is no transmission medium and hence there is no possibility to lose IP ownership.

Sub-Case #2: This scenario is represents the case where the owner of the absolute IP rights wishes to gift the transmission medium (presumably for other uses) but to sell all IP rights. For example, the case where a magnesium flare could be used to illuminate a field at night but where the light cannot be used to describe the manufacturing details of the flair itself which will be sold.

This sub-case is similar as Case #1 above.  The result of this sub-case is that in this scenario the owner of absolute IP rights may lose them in a valid manner.

Case #10 - Failure  / Wishing to retain ownership

Because the medium has become homesteadable, this case is exactly the same as the Case #1.

The result of this case is that in this scenario the owner of absolute IP rights may lose them in a valid manner.

Case #11 - Failure  / Wishing to give away ownership

Because the medium has become homesteadable, this case is exactly the same as the Case #2.

The result of this case is that in this scenario the owner of absolute IP rights will lose them in a valid manner.

Case #12 - Failure  / Wishing to sell ownership

Because the medium has become homesteadable, this case is exactly the same as the Case #3.

The result of this case is that in this scenario the owner of absolute IP rights will likely be able to transfer them to a new owner, but this is not certain nor guaranteed.

SUMMARY OF ANALYSIS

If we summarize the results, we obtain the following table:

As you can see, of all the 15 cases and sub-cases, there are only 4 scenarios where it is not possible to lose absolute IP rights. However, they are either the cases where a theoretically perfect control can be exercised on a transmission medium (not a real world scenario) or no transmission medium is used (also an extremely unlikely scenario).

GENERAL RULE OF THUMB

From all this analysis we can create a general "rule of thumb". Said rule states:

If you are going to utilize IP in an economically active manner, you must be prepared to risk losing your absolute IP rights in a valid manner.

Not surprisingly, this is nothing but the old saying: there is no free lunch.

We would have been extremely surprised if we would have reached a different conclusion.