Exactly. Also, no customs & border enforcement against trademark / copyright / whatever infringement. Louis Vitton didn't pay IP tax ? They don't get to stop knock offs from being imported.
Align value with cost - that's the way to properly allocate resources.
So, assuming that such a system was adopted worldwide, you would have to pay a tax in every country of the world if you wanted your IP to be enforceable in all territories? Because if that's the case, owning IP will be so prohibitively expensive that only large corporations will be able to afford it. I'm not sure if that would be a good thing.
If you get value from all those countries, then why not? Nobody is forcing you to get patent in each and every one of those country, just like you don't have to right now, either.
Well, it's already prohibitively expensive to get patents all over the world, and -- People keep forgetting that -- a patent is an offensive measure - it gives you the right to sue and litigate, but not much else! If you don't have the money to litigate, your patent is already worthless. In some countries, litigation is cheap; but in the US, you need $200k-$500k available to have a chance to enforce your patents.
Applying for a multiple jurisdiction patent (in e.g. US, Europe and japan - which for example still doesn't let you enforce in Russia, Mexico and Switzerland) already costs upward of $50k
This might be true for patents, but don't forget that copyright is (mostly) free. If any band, indie developer, unsuccessful writer and amateur photographer would have to pay such large fees for simply owning their works, what would happen?
They simply declare them worth zero for the year, and pay nothing. They still own the copyright. And if 5 years down the line, they realize someone else is making a profit of it, they declare a reasonable value at the end of that year, pay the tax, and collect their fees (through court or otherwise).
