Correct, however.
Yes. Selling out DOES make intellectual property a product but you are incorrect in your example of Venture Capital.
Capitalization of a business would be a product for money transaction but for the fact that the VC is not buying the whole Idea, merely investing in it's success. VC is better described with the Open Source analogy: I have an Idea, the Idea has "x" value. I then share the idea with a limited number of people who legally agree not to exploit the Idea without cutting me in. At this point an improvement is made by the Capitalist in the form of investment, increasing the value of "x". Note that the Capitalist is not buying the idea but investing/partnering (speculating) in the future returns of the idea.Nor is the idea literally defined as "x+investment=value" after this point as the idea has NO value until it is applied. After the idea is applied it only has value as a formula, all the real assets lie in the business separate from the concept. Without the person who defined the idea it loses value because in someone elses head it isn't the same idea. Steve Jobs is a brilliant example of this.
Selling out is the ONLY example of intellectual property becoming a tangeable product.
Yes. Selling out DOES make intellectual property a product but you are incorrect in your example of Venture Capital.
Capitalization of a business would be a product for money transaction but for the fact that the VC is not buying the whole Idea, merely investing in it's success. VC is better described with the Open Source analogy: I have an Idea, the Idea has "x" value. I then share the idea with a limited number of people who legally agree not to exploit the Idea without cutting me in. At this point an improvement is made by the Capitalist in the form of investment, increasing the value of "x". Note that the Capitalist is not buying the idea but investing/partnering (speculating) in the future returns of the idea.Nor is the idea literally defined as "x+investment=value" after this point as the idea has NO value until it is applied. After the idea is applied it only has value as a formula, all the real assets lie in the business separate from the concept. Without the person who defined the idea it loses value because in someone elses head it isn't the same idea. Steve Jobs is a brilliant example of this.
Selling out is the ONLY example of intellectual property becoming a tangeable product.