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Let us take a step back and look afresh at the idea ofproperty rights. Libertarians believe in property rights intangible goods (resources). Why? What is it about tangible goods that makes them subjects for property rights? Whyare tangible goods property?

Palmer also argues that trademark law is legitimate. Suppose some Lachmannian changes the name on his failinghamburger chain from LachmannBurgers to RothbardBurgers, which is already the name of another hamburgerchain. I, as a consumer, am hungry for a RothbardBurger.I see one of the fake RothbardBurger joints run by thestealthy Lachmannian, and I buy a burger. Under currentlaw, Rothbard, the “owner” of the RothbardBurgers trademark,can prevent the Lachmannian from using the markRothbardBurgers to sell burgers because it is “confusinglysimilar” to his own trademark. That is, it is likely to misleadconsumers as to the true source of the goods purchased.The law, then, gives a right to the trademark holder againstthe trademark infringer.

Trade secrets are easier to justify than patent or copyright.Palmer argues that they “emerge” from common lawtyperights, and are, thus, legitimate. Trade secret lawallows damages to be obtained for, or an injunction to beissued to prevent, acts of “misappropriation” of a tradesecret. This can be applied against the person who hasimproperly acquired the trade secret or who divulges thesecret contrary to a contractual obligation, and also againstothers who know that they are obtaining the secret fromsuch a person.