The next subsection we are covering is (7) intangible property. Commons felt that Macleod made a mistake by calling intangible property as incorporeal property. He then goes through a series of definitions to clarify what Macleod meant:
“annual income for ever” = the expected products for one's own use or the money income from future sales of the products, or future “ground rent.”
“His credit” = is not a particular credit against a debtor, but is the general “good credit” of a business man, that is, the good-will of investors and bankers who are expected to be willing to lend to him by buying his promises to pay.
“The good-will” = expected profitable transactions with customers.
“The practice” = the good-will of a lawyer's clients or a physician's patients, willing to pay for his services.
Copyrights and patents = expectations of preferential or monopolistic sales-incomes.
“The shares” = commercial company are the present value of expected dividends or other opportunities to make a profit over and above all expenses.
“Tolls” and “ferries,” = expected preferential prices arising from franchises. (Commons, pg 421, 1934)
Commons says these are all examples of intangible property which is contrasted to incorporeal property which is the expectation of a debt payment at a certain point in the future. The expected profit or income from intangible property has no set date or amount.
Commons uses the example of buying the physical equipment of a company for scrap value - the tangible or corporeal property versus buying the company's name and good will and right to operate it for a project which is the intangible property. A key term he uses is that intangible property is "expected participation" by all interests.
Commons also translates this into Hohfeldian legal language. Debt may be owed to a company as incorporeal property or a legal duty in the form of accounts receivables. The state may have a duty of non-interference in certain business transactions. Expectations of customer and worker contracts are intangible property and can be both a legal duty and legal right depending on the relationship.
This whole section again consists of Commons trying to clear up and rehabilitate Macleod from his confusions and double meaning mistakes.
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