Intellectual property rights incentivize investment of time and money in developing new products  When a real chance of profit exists in the development of a new product, or writing a new song, people put the effort into developing and creating them. The incentive to profit drives a great deal of people’s intellectual endeavors. Research and development, for example, forms a major part of industries’ investment, as they seek to create new products and inventions that will benefit consumers, and thus society as a whole. Research and development is extremely costly, however. The 2000 largest global companies invest more than €430 billion a year in researching new products1. The fear of theft, or of lack of profit stemming from such research, will serve as a powerful disincentive to investment, which is why countries with less robust intellectual property rights schemes are not home to research and development firms. Without the protection of intellectual property rights, new inventions lose much of their value, since a second-comer on the field can simply take the invention and develop the same product without the heavy costs of research involved, leaving the innovative company worse off than its copycat competitor. This will lead to far less innovation, and will hamper companies currently geared toward innovative and progressive products. Furthermore, intellectual property is particularly important to firms with high fixed costs and low marginal costs, or with low reverse engineering costs, such as computer, software, and pharmaceutical firms. The costs of commercialization, which include building factories, developing markets, etc., are often much higher than the costs of the initial conception of an idea2. Without the guarantee of ownership over intellectual products, the incentive to invest in their development is diminished. Within a robust intellectual property rights system, firms and individuals compete to produce the best product for patenting and licensing that will give them a higher market share and allow them to reap high profits. These incentives lead firms to “invent around” one another’s patents, leading to gradual improvements in technologies, benefiting consumers. Clearly, intellectual property is essential for a dynamic, progressive business world.  1 Institute for Prospective Technological Studies. 2009. “The 2009 EU Industrial R&amp;D Investment Socreboard”. Economics of Industrial Research and Innovation  2Markey, Justice Howard. 1975. Special Problems in Patent Cases, 66 F.R.D. 529.