Rent-seeking

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Rent-seeking is the Marxist (ooh! saucy!) term when a fellow (a “rentier”) monopolises access to property (including, for modern readings, intellectual property) and gouging profits out of it.

It comes in many guises:

• Physical property: you know, literal rent-seeking
• Intellectual property: Rather than using the fruits of your blood, toil, tears and sweat you use antediluvian intellectual property rules to gouge everyone else. In this way Mick Jagger and Keith Richards can extract millions over 60 years from 15 minutes of work — in Richards’ case, while he was asleep — composing Satisfaction.
• Franchising: Taking an idea or a business model someone else has invented — McDonald’s is the best example — and paying them a franchise fee to operate it. Here is double rent-seeking: the franchisee pays the franchisor, and the customer pays the franchisee.
• Software as a service: The simple answer to the question why is reg tech so disappointing? — is that tech businesses can’t make money if all they get paid for is writing software. This would be like Mick Jagger only getting paid for fifteen minutes’ work — where is the logic, or the justice in that?

See also

• Reg tech
• Intermediaries