Abstract: Intellectual property can encourage innovation is the usually explanation about the institutional functions of intellectual property,but there is a suspicion of circular argument between this statement and the related historical facts. In fact,the historical interpretation by different value orientation showing more abundant development history about intellectual property system,reveals that the theory of encouraging innovation is likely a legislative strategy which takes effect as cause. Through the comparison on the history of enlightenment and development about intellectual property in the society of ancient China,will find interest demand and social recognition,rather than the expectations for encouraging innovation,are most important reasons for the formation of intellectual property system,and then clarify the basic problem that institutional function of intellectual property is not value interpretation,but factual description. In the end,Clarifying the most important function of intellectual property system is:to provide market-oriented institutional environment for the works,inventions,trademarks and other information and distribute interest which generated from the information among different social subjects.