Question

The Ethics of Intellectual Property Rights (IPR): The Case of Jagadis Bose

Jagadis Bose was a scientist-inventor from India who is known to have made critical contributions to the invention of the radio. However, Bose deliberately insisted upon not filing a patent for his invention in the belief that scientific discovery should be freely shared and its resultant benefits should be a free domain for all of humankind. As a result, not only did he lose out on potential profits of his research but also the recognition that was his due. In time, much of Bose's research was applied to the development of profitable inventions and devices including the radio.

Here is an excerpt of Bose's speech given during the inauguration of the Bose Institute in 1917:

The advance of science is the principal object of this institution and also the diffusion of knowledge.....In adding this feature, and on a scale hitherto unprecedented in a Research Institute, I have sought permanently to associate the advancement of knowledge with the widest possible civic and public diffusion of it; and this without any academic limitations, henceforth to all races and languages, to both men, and women alike, and for all time coming.....these publications will reach the whole world. The discoveries made will thus become public property. No patents will ever be taken.

Excerpt taken from:

http://resources.boseinst.ernet.in:8080/xmlui/bitstream/handle/123456789/3184/The%20Voice%20of%20Life.pdf?sequence=1&isAllowed=y

Keeping in mind how closely companies guard their secrets, and the millions of dollars spent in patents and copyright protection, do you think

1) Bose's ethical value system has any lessons for today's society? (Hint: think of the world of Open Source - you can research this online)

2) Consider also Bose's stand and the position taken by most businesses today in light of Kohlberg's model of moral development (Chp. 2 - pg. 39). Where do you think corporate businesses fit within this model? - hint: think of the methods employed to motivate workers in a job (often reward/punishment based) Where does Bose fit in the same framework? Why?

Basically, in the second question you are expected to think along the lines of why we do (as business decision makers), what we do using Kohlberg's model? Is it because of Stage 1: a fear of some sort? Is it because of a desire of reward? Stage 2: Is it because of peer pressure? Is it because we totally believe in this system as the very best for all concerned (stakeholders)? Stage 3: Are we ready to take decisions,which are more universally beneficial - that is, beneficial to more than just our shareholders and investors?

Answer 1

1. Although Bose's choice to make his innovation public is commendable, it is slightly problematic due to the free-rider problem. In today's competitive market, if an organization were to not patent protect their products or innovation then other companies would freely copy the products and sell it into the market. The issues that arise with this is that the company loses power over its products as well as most companies are then not incentivized to innovate new products because they can freely copy, causing the free rider problem. The company that initially spends a lot of money in R&D, now has fewer profits because other companies do not need to pay more research and development. The free rider problem states that one person/entity can avail benefits of a product at the cost of someone else paying for it.
2. Most corporate companies behave as per the Kohlberg's moral development because:
   1. They conform to rewards and benefits. Following an ethical path as recommended by Bose cannot reap their maximum profits or benefits. Being able to copyright and patent their innovation can help them to achieve market power and get higher rewards
   2. There is severe pressure to look good in society so that consumers do purchase their products. Thus businesses have to demonstrate a good boy/girl morality through treating their employees and consumers correctly. They also need to maintain a good image against their competitors and thus it forces them to abide by the law so that they can get Government licenses and patent protection easily.
   3. Businesses need to demonstrate that they have strong decision making power which are in line with universal principles and ethics. Through corporate social responsibility, companies showcase that their decisions aren't just to benefit their employees and shareholders but also consumers and people of deprived parts of society.