How do the ideas of "free information" and "open source" work in a free market system based on private property?

1) Rules for IP change greatly by country. Consider the freedom of panorama issues that are becoming more contentious within wikimedia. 2) IP legal framework is rapidly changing, in accord with the times. My 2 cents, but I believe that, in the interest of progress, a viable alternative option would be a reward/prize system where economic actors within a particular industry who have generated valuable intellectual property would prosper off of "pay and play" framework, contra exclusive rights to use. This would be particularly helpful for technology that is beneficial within the industrial world, but life changing in the third-world, like pharma-tech. But, that's just a short answer to a question for which encyclopedic answers have been written.

How does a church soup kitchen work in the context of a free market that also has grocery stores and restaurants that sell prepared soup? How does a group of volunteers getting together on a weekend to build a children's playground work in the context of a construction industry that can also do these things for profit? I think the same idea applies.  We've always had volunteer and charitable efforts competing in terms of goods and services with for-profit corporations.  Now this has come to software engineers as well. As far as intellectual property goes, open source is based on open source licenses and these licenses are grounded firmly on the author's copyright.   Open source is not the same as public domain.  It is still property.  If you violate the license you can be sued.

Most Libertarians hate IP. It's better compensate innovators and scientists with voluntary cash prizes like crowdfunding. See this: http://en.wikipedia.org/wiki/Prizes_as_an_alternative_to_patents and it: http://research.stlouisfed.org/wp/2012/2012-035.pdf

There's nothing in a free market system that prevents someone from sharing or even giving away things he owns.