I don't think IP laws are economically viable and thus they wouldn't exist if the law was formed in a free market process.
Laws are not formed in a free market process. E.g. laws against murder don't arise in a free market, a free market ASSUMES laws against murder. If you mean that laws are just like any other commodity then I am sure that you will be able to find societies where it is "economically viable" to enslave, say, 10% of the population and to murder another 10% who are not fit to contribute to society. 80% say so. That does however not make it right.
When that is said I will grant you that BOTH the IP laws of today AND the practices of the various companies in the industry are bad. A major problem is in fact lack of micropayment, which in turn is largely caused by the insane regulations and taxations on money and banking. Thus, indirectly much of the cause of the current debacle on copyright are the banking laws and regulations and the taxes.
With micropayment systems much of the problems associated with piracy would be almost non-existent.
Another major problem is with industry who haven't understood that most people are actually NOT pirates. Most people respect intellectual property and want to pay for it just like they would any product. The problem is that the industry is punishing people who are legal. Where do you see a gigantic warning against piracy? On every DVD that is sold, i.e. those who actually PAY for the product and DON'T pirate are harassed by the industry. Furthermore, legal copies often have copy protection and time zone restrictions, which means that the legal product is LESS convenient and LESS available than the pirated copy. And often you simply CAN'T get the product via internet, you MUST buy a physical copy of a DVD that you care nothing about and that needs to be shipped halfway around the globe. Furthermore without proper payment systems there are no per usage payment for software. In some cases you have to pay hundreds or even thousands of dollars for a product you want to use 4 times. And why do you have to pay full price for a Blue Ray version of the movie when you bought the DVD? Here you're paying for the same information (the IP) twice, and for no good reason. And if you lose the DVD too bad for you, you have to buy a completely new one.
All this is experienced as deeply unfair by consumers and rightfully so. Part of the problem is with the laws (e.g. banking laws) and part of the problem is with the dinosaur industry that is being unreasonable. We see that as somewhat ok consumer solutions arise people do prove that they don't want to be parasitic criminals who pirate other people's hard work. spotify.com is a brilliant example which has more than 1 million paying customers now, mostly from Scandinavia. In Sweden the music industry is now making more money through Spotify than through regular channels. And remember, Sweden was the home of Pirate Bay. Once fairly reasonable solutions are available, people choose them.
The key here from a customer service point of view is not to treat your regular customer as a criminal. Look at ordinary shops. There is maybe 2% shop lifting there, and you can quite easily get away with stealing, but most people don't AND most importantly: the shop owners will rather have 3% theft than to treat their customers as criminals with draconian anti-theft measures. In other words, the ordinary customer should NOT notice any anti-theft measures (i.e. guards who searches everyone on their way out) and this is where the music and film industry has simply misunderstood everything. You cannot avoid a certain amount of piracy, but treat your paying customers with respect and provide them a good service and most people will buy, not steal.
Of course the anti-IP libertarians are not exactly doing people any favors. They are spreading an idea that goes much further than to criticize the bad service attitude of the IP industry. They are in fact spreading the idea that piracy is NOT MORALLY WRONG. In essence they are trying to normalize pillaging and violation, and by so doing they not only contribute to a more sinister form of IP theft, but actually pushes many of the pro-IP people towards draconian measures.
Ok, I am now going to make a list of things that you will be able to do in the Free State that today is impossible in the United States or pretty much any country in the world:
- 100% privately owned roads
- 100% private health care
- 100% private education
- 100% private social security
- 100% private water and sewage
- 100% private airports and ports
- 100% private money (including Bitcoins) and free banking
- very close to 100% free immigration
- extremely low taxes, possibly zero (the goal is to have the Free State entirely financed by voluntary donations)
- zero regulations, other than that provided by private property
Anyway, I think this is a good enough reason to give it a try. It would still be way better than any other state in the world. IP laws can (hopefully) be changed later if they are found unjust.
This is true, and as of today The Free State Initiative is the only project where Bitcoins will be accepted as a fully free and legal payment without any legal hindrances. The Free State Initiative currently accepts and a future Free State will accept donations in Bitcoins to show this. Yet, despite this not a single person in the Bitcoin-community has donated a single Bitcoin to the initiative. I find that very, very strange.