But it has everything to do with innovations in an "unprotected" market.
I don't think so. In this case the company decides voluntarily to not protect its innovations in a protected market. That means there would be no difference for them if they operated in an unprotected market. We are talking about how an unprotected market or differently protected market would work, so a company for which is makes no difference is simply irrelevant.
They just keep innovating and making the best pencils they can.
Sure, whatever. They are irrelevant. Use a company that
does use patents to protect its works as an example.
Well, it's not the consumers you're worried about; it's competitive companies.
The easiest way a competitive company can get a hold of another company's innovation is by simply buying the product like any other consumer. So the buyer's license that makes it illegal to reverse engineer it must be the same for consumers and competitors.
That would be the people.
Represented by the Supreme Court or however you have organised it. That's because it is not practical to get everybody to decide.
And a LOT of people are speaking out against these unconstitutional laws.
There are also a lot of people who don't, and even believe there are a lot more things that should be considered constitutional that libertarians consider unconstitutional.
No, a parable is a work of fiction, which has a moral to it.
I would argee with you if you want to argue that the distinction between fiction and non-fiction is sometimes blurry. But a story about a talking pencil clearly belongs under 'fiction', imho.
This is a real-life description of how pencils and the free market work.
No, it isn't. Just because the story teaches people something about real-life, does not make it non-fiction.
The legitimate protections operating under Article I Section 8 Clause 8 which do not engage an any activities the government is restricted from doing elsewhere in the Constitution.
Don't keep me guessing: what does it say?