On Llu, 2004-01-05 at 18:47, Christoph Hellwig wrote:
> On Mon, Jan 05, 2004 at 12:52:46PM -0500, David Andrews wrote:
> > Jay is right insofar that -- practically speaking -- you can only sell
> > your code for more than your distribution cost one time.  Eventually
> > somebody like CheapBytes will come along and redistribute your GPLed
> > code for next to nothing.
>
> Why would you give the software software you just bought for lots of
> money freely away?

You don't. You sell it for a little less (because the person who wasnt
willing to pay for it clearly didnt value it as much as you did as they
didnt pay). Your total overall cost is now very low, but you took a high
risk in obtaining it.

The next person took a slightly lower risk but got it later and sold it
for a bit less.

Iterate a few cycles and for an infinitely cheaply replicable item it
becomes free. The "information wants to be free" slogan is actually
rather sound economics, but in the other sense of free 8). This is one
of the reasons for copyright in its modern forms - to create an
artificial value for information so that it is produced - even though it
harms the overall economic efficiency by distorting the market to do so.

Stallman's model works very well for some things, but it doesn't work
for speculative development "I think xyz people want this so I'll put up
the capital and profit if my information about xyz people is right and
my information is better than the rest" or for some kinds of work like
pooled development, unless these can be set off against other gains be
they support revenue, more mainframe sales, whatever.

You might argue that now when you buy an IBM mainframe with a free Linux
you've merely altered upon which desk the money arrives. That's
simplistic because it pre-supposes there is no value in your new rights
to the source code enabled by this model and also ignores the higher
efficiency in the development model due to lack of duplicate work which
reduces the real software creation cost.

This is also why there is so much interest all over the place in
licensing models which give the end users the parts of the free software
value they think they really want while allowing for speculative
development and the like. While the MS and FSF models are radically
different and both only work for some cases, it would also be a mistake
to assume that there are not other licenses that play with the
parameters between the two - Bitkeeper, Sun CSL, and ghostscript[1]
being clear examples. Its an important area because free software models
don't appear to work well for 'leading edge' technologies, but do as the
product becomes more commodity (for obvious reasons - competition drives
out profit margins on the software, entry and exit of the market is easy
and a lot of the perfect market type conditions get fulfilled).

Alan

[1]Ghostscript for the S/390 not free software guru people who actually
read this far has a license whereby the newest version is payware but
becomes free software over time/releases. You get to pay for support
and for having it "now", while everyone else gets the free one which is
older

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