The basis of every commercial transaction is exchange, and its primary goal is profit for both parties. In this simple, two-sided relationship, the seller and the buyer are the main beneficiaries. The seller receives money—a universal medium of exchange that allows them to continue their business activities. The buyer, in turn, receives a good or service that has a specific use value for them.
So why do many people not understand or accept this basic principle? This lack of understanding most often stems from several key factors:
The complexity of supply chains. In today’s economy, a transaction is rarely simple. There’s a whole network of intermediaries between the producer and the consumer, such as distributors, wholesalers, logistics companies, banks, and payment systems. This complexity blurs the picture of who is actually profiting from a given product and by how much.
The psychological perception of money. For many people, money is more than just a medium of exchange. It has emotional value, provides a sense of security, or represents social status, which can distort the perception of its role in transactions. Money stops being a tool and becomes an end in itself.
Information asymmetry. Sometimes, one party in a transaction has more information than the other. The seller might hide product defects, and the buyer might not know its true market value. A lack of knowledge and full transparency obscures the real benefit of the exchange.
Business risk. In B2B (business-to-business) relationships, payment delays often occur. Even though the transaction was concluded, the seller does not receive the money on time, which can lead to losses. This shows that even a perfectly planned transaction can fail.
Maximizing Profit and Legal Protections
A key objective for any business is revenue maximization. This means making strategic decisions to increase the difference between revenue and costs. This is not about being greedy; it is a fundamental principle of economics that allows a company to grow, invest, hire new employees, and develop new products. Without a profit motive, a business cannot survive in a competitive market.
Furthermore, it is important to note that the law protects the smooth flow of commercial transactions. In many countries, including EU, the UK and US, legal frameworks prohibit actions that hinder or disrupt trade. For example, laws on unfair competition, abuse of a dominant market position, and payment terms are designed to ensure that transactions are conducted fairly and efficiently. These regulations make it illegal to deliberately obstruct a transaction, delay payments without justification, or use one’s market power to harm a business partner. These legal protections reinforce the core principle that a transaction should be a fair and beneficial exchange for all parties involved.
Understanding these factors is crucial for both consumers and business owners. The awareness that a transaction is not just an exchange but a complex process with many variables helps people make better decisions and avoid potential problems
Ownership is a legally recognized right to a property or asset, giving the owner the exclusive authority to:
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Possess: Physically hold or control the asset.
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Use: Utilize the asset for personal or business purposes.
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Transfer: Sell, lease, gift, or bequeath the asset to others.
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Exclude: Prevent others from using or interfering with the asset without permission.
Ownership is established through a legal transaction: purchase with a contract, deed, or receipt or by creation – creating a copyrighted work. It is a right defined by law, not just by physical possession or use.
How to Protect Your Ownership Against False Claims
Here’s how to protect your ownership and counter fallacious claims of possession:
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Formalize Ownership with Legal Documentation:
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Tangible Assets such as propertyor vehicles: Always have a deed, title, bill of sale, or formal contract that clearly establishes legal transfer of ownership. A person who simply possesses an item without such a document is a mere possessor, not an owner.
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Intangible Assets: copyrights and trademarks rely on legal frameworks. Copyright is automatic upon creation, but registration with a national office (like the UK Intellectual Property Office or the US Copyright Office) provides a public record and stronger legal standing. Trademarks and patents require formal registration. These documents are primary defence against false claims.
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Distinguish Between Possession and Ownership:
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This is the key to countering the “possession is ownership” fallacy. Possession is a temporary, factual state of control. Ownership is a permanent, legal right. Clearly explain or state that the other party has temporary possession (like a borrower or licensee) but not ownership.
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Enforce Your Exclusive Right to Exclude:
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Do not allow unauthorized use to continue unchecked. If someone is using your property or IP without permission, you must take action.
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For tangible property, this means issuing a notice to vacate or taking legal steps to remove a trespasser.
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For intangible property IP, this means sending a cease and desist letter to the infringer. This is a formal, legal notification demanding they stop their unauthorized use. If they don’t, you must be prepared to escalate to legal action, such as filing an infringement lawsuit.
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The fallacy of believing one is an owner without legal ownership is a dangerous misunderstanding of the law. It ignores the fundamental distinction between temporary physical control – possession and a permanent, legally enforceable right – ownership. Legal documentation and a clear understanding of property law are the only true defenses against such claims.
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