While that is certainly a nice and well regarded model, it does not say much about what actually happens. It really only amounts to a proposition, and cannot be read as indicating a necessity. As Landes and Posner themselves later say:
"Economic analysis has come up short of providing either theoretical or empirical grounds for assessing the overall effect of intellectual property law on economic welfare."
-- 'The economic structure of intellectual property law'; Landes, Posner; 2003.
Conclusion, p422, s3.
That is, to spell it out, we do not know if intellectual monopoly law is doing any good at all. This is easy to see for oneself: there must be, and obviously are, costs -- legal, enforcement, search engine 'fixing' -- yet we have no idea how much the gain is. If there is a negative, but the positive is unknown, it is quite possible the sum is itself negative.
"Economic analysis has come up short of providing either theoretical or empirical grounds for assessing the overall effect of intellectual property law on economic welfare."
-- 'The economic structure of intellectual property law'; Landes, Posner; 2003. Conclusion, p422, s3.
That is, to spell it out, we do not know if intellectual monopoly law is doing any good at all. This is easy to see for oneself: there must be, and obviously are, costs -- legal, enforcement, search engine 'fixing' -- yet we have no idea how much the gain is. If there is a negative, but the positive is unknown, it is quite possible the sum is itself negative.