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Supporters of strong database protection laws and of strong contractual regimes to reinforce them believe that the benefits of private property rights are without limit, and that more is always better. They expect that these powerful legal incentives will attract huge resources into the production of electronic databases and information goods. In contrast, critics fear that an exclusive property right in noncopyrightable collections of data, coupled with the proprietors' unlimited power to impose adhesion contracts in the course of online delivery, will compromise the operations of the national system of innovation, which depend on the relatively free flow of upstream data and information. In place of the explosive production of new databases that proponents envision, opponents of a strong database right predict a steep rise in the costs across the information economy and a progressive balkanization of that economy, in which fewer knowledge goods may be produced as more tithes have to be paid to more information rent seekers along the way.



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