Firms and individuals misallocate resources trying to race others to the same goal, and spend resources stealing from one another:  Intellectual property rights systems create perverse incentives in firms, leading them to inefficiently allocate resources. One such inefficiency arises from the duplication of effort by firms seeking to develop the same process or product, though only the first to do so may profit from it. This leads to brutal races and excessive expenditure of resources to be first over the line and to monopolize the production, at least for a time. Another serious inefficiency arises in the production of similar products to existing ones, seeking to get around existing intellectual property rights. Such has been the case for years in the pharmaceutical industry, which has succeeded in curing erectile dysfunction dozens of times. An overemphasis on such spinning off of similar products is the result of intellectual property rights perverting incentives1. Furthermore, intellectual property rights create the problem of corporate espionage. Firms seeking to be the first to develop a new product so as to patent it will often seek to steal or sabotage the research of other competing firms so as to be the first to succeed. Without intellectual property rights, such theft would be pointless. Clearly, in the absence of intellectual property, markets and firms will behave more efficiently. 1 Gabb, Sean. 2005. "Market Failure and the Pharmaceutical Industry: A Proposal for Reform". National Health Federation.