I'm against quantifying it at all because, while useful, price is a very limited metric. There are numerous cases where you can increase the transaction sum and achieve 0 value increase, eg. monopolistic pricing in a market with inelastic demand or bad investing (destroying capital) or externalities, etc.
>I don't understand the point you're making. Obviously somebody thinks Microsoft's Android patents are valuable, or they wouldn't pay to use them. What do you mean by "would it create extra value?"
Nobody is "using them", in fact nobody knows what patents are in question, all that's known is that Microsoft forced different Android manufacturers to pay up for Linux kernel or they take them to court. That's textbook rent seeking. It's likely that Linux devs arrived at the solution independently (since IIRC it's unknown what patents are in question), or would have done so - so you can't make the point that without granting Microsoft a monopoly you wouldn't have Linux kernel.
>That makes no sense. Demand existing isn't enough for something to spring into existence. You make it sound like other people slaving away to create music, movies, and software is your birth right or something.
People choose to share their creations, once it's copied the copy is no longer their property. They can do whatever they want with their property but knowledge is a non-rivalrous non-excludable good (without infringing on excludable property of others) and creating artificial scarcities to sustain someones business model is ridiculous. Software can translate nicely to a no IP environment by SaaS, NDAs and open-source development financed by consulting. There are various routes for other industries, and many more can be created. I'm not sure about things like pharmaceuticals and maybe other industries have different conditions that would lead to catastrophic results, but that doesn't apply to software and entertainment, bankrupting Disney and Microsoft != bankrupting a company with 10 years of R&D in cancer treatment research.