The complicated legal arrangements created by intellectual property raise costs of doing business:  Many firms cannot act independently, but rather rely on the technology and systems of other firms. The complicated, and often convoluted, licensing arrangements needed by many firms to function sap resources and effort, slowing productivity and causing general economic sluggishness. In high-tech and science research firms particularly, mutual licensing pacts are needed that often slow production and advancement due to the complicated legal arrangements that must be entered into to allow firms to go about their business. For example, the recent battle over rights to computer technology between Hewlett-Packard and Oracle, which has cost both firms millions of dollars in legal fighting1. These costs are entirely mitigated in the absence of intellectual property rights, as ideas flow freely and people can go about their business without the complications of licensing. 1 Orlowski, Andrew. 2011. "Oracle and Itanic: Tech's Nastiest Ever Row?". The Register.