Much of the discussion regarding nanotechnology centers around perceived and prosphesied harms and risks. While there are real risks that could emerge from futuristic nanotechnology, there are other current risks involved with its development, not involving physical harms, that could prevent its full promise from being realized. Transitional forms of the technology, involving “microfab,” or localized, sometimes desk-top, manufacture, pose a good opportunity for case study. How can we develop legal and regulatory institutions, specifically centered around the problems of intellectual property, that both stimulate innovation, and make the best possible use of what will eventually be a market in “types” rather than “tokens”? This paper argues that this is the most critical, current issues facing nanotechnology, and suggests a manner to approach it.