The effectiveness and boundaries of rights are the starting point and foundation to assess whether the value of intellectual property can be fully realized. Under this premise, intellectual property transactions can proceed smoothly. Research on entitlement issues can not only help the transacting parties to reduce information costs but also limit the space for rent-seeking behaviours of intellectual property right holders through the system. Although intellectual property is created spontaneously, and sometimes for non-market-oriented purpose, they can still be protected by intellectual property law. Nonetheless, non-utilitarian motives for creation do not prevent right holders from relying on intellectual property law to control the market and pursue profit maximization. Intellectual property producers who are inherently market-oriented are more concerned with decision-making based on the institutional arrangements of existing laws when making behavioural choices, and they strive to gain a competitive advantage in horizontal and even vertical competitive relationships. Intellectual property law is in fact established by virtue of the latter and is essentially an economic mechanism. Understanding why it is necessary to grant intellectual property entitlement allows us to understand why intellectual property transactions occur.