Q Assignment states about laws and economics,challenges of intellectual property law ,"fair use" & its effects. Home, - CED 6110: Law and Economics Some economists have argued that the key ingredient to successful economic development is a well-defined and easily enforceable system of property rights. In other words, it is necessary for property rights to be well-defined in order to achieve economic development. Private property rights give individual the rights to use their own resources the way they wanted and even earn on their talent and goodwill. Thus they enjoy the full right on using their rights and employ those resources in the right direction. The benefits which are produced by their efforts can be called as efficient outcomes as their talent, skills and creativity lead to increase in employment, increase in revenue of any particular Company and gradually the benefits are provided to the whole world (Dinopoulos and Segerstrom, 2010). If their rights will not be secured for using their talent and skills in their own way then it can lead to misuse by not the people of nations but also at the international level. Well defined property rights enhance the prosperity, peace, efficiency, and liquidity in the asset market which ultimately lead to the development of the economy in various aspects. Further, the property rights should also be consistent with any institution whether national or international in order to reduce the complexity of understanding the rights given to property rights holder (Besley and Ghatak, 2010). Property rights will open the opportunity for the whole world if applied in the right manner and with effective laws. The challenges facing intellectual property law in the digital age Internet and World Wide Web becomes the normal part of human life. Actions of ordinary people such as downloading of scanned copies, photos of a playboy bunny on websites, embroidery pattern sharing on listserv violating the intellectual property laws. These actions are making available the consumable copies and may alsoshow for sale on which owner of the copyright holder should have control (Bently and Sherman, 2014). Other activities such as posted articles sending to the friend on the internet which may involve the requirement of subtle and interpretation of copyright law differently. Today, it is easy for an average individual to copy to some extent that needs some large investment and perhaps can also call as criminal intent. The current intellectual property law is complex and it is not easy to find out which is acceptable or legal in copying and sharing on the internet and which is not. It is not easy to even find out the easy bright-line answer for any use on internet and thus increasing challenge for intellectual property right law to perform fair judgement and take fair decision. The doctrine of “fair use" & its effect The economic rationale for allowing someone to make use of another’s creation without first obtaining his or her permission. The doctrine of ‘fair use' means any using the copyright material for limited or for the purpose of trans formative and intends to balance the interest of copyright holder. Activity such as to comment upon, criticizing and making a parody of copyright work can be done without taking permission from the owner of the copyright. People ordinarily use contents on websites and other places on the internet frequently without even knowing that such content is having the copyright (Sag, 2012). Thus, it saves the penalties for the innocent users who have no such intention of misusing the copyrights. Fair use saves the right of copyholder by defining the limits under the actions of the user of copyright other than the copyholder is accepted. Copyright fair use prevents the others from reproducing or using the work of copyright holder.