If Software Companies Ran the Country
by Jay Kinney

[This essay originally appeared in Whole Earth Review #57 (Winter
1987). It is now both terribly dated and still apt. It can be viewed,
perhaps, as ahead of its time. It earned hate mail when it first
appeared.]

The Shmoo has returned.

You remember the Shmoo, don't you? It was a cute little white colored,
squash-shaped cartoon character created by Al Capp in his comic strip
"Li'l Abner," in 1948. Shmoos bred like rabbits and could produce any
object at the drop of a hat. Since they loved to please humans, they
would willingly pump out milk, eggs, filet mignon, caviar, or anything
else if requested.

At first glance Shmoos seemed to herald the arrival of Utopia.
Unfortunately, a plethora of Shmoos meant that people quit their jobs,
stopped paying taxes, and civilization as we know it began to
degenerate quickly - or so Al Capp sought to demonstrate in his mildly
didactic way. In other words, there is such a thing as too much of a
good thing.

The great funnies-reading public was not so sure. Shmoos were
enormously popular and thousands of Shmoo products were bought and
sold before the Shmoo fad ran its course. Al Capp supposedly became so
sick of Shmoos that he killed them off and banished them from the
strip. They popped up again for another short appearance in "Li'l
Abner" ten years later, were killed off again and this time were gone
for good.

Or so it seemed until recent rumblings about software piracy in the
computer trade press convinced me that the Shmoo has snuck back - in
real life this time.

The source of the rumbling is the simple fact that most computer
software is nothing more than an array of bits magnetically recorded
on thin, plastic floppy disks. This is true of both commercial
software (which often retails for hundreds of dollars) and the file
disks that store all the information and writing produced by the
computer user. That these arrays of bits are easily copied from disk
to disk - with a copied disk being virtually indistinguishable from
the original - is one of the much-touted selling points for the
personal computer revolution.

Where the shmoo-factor comes in and software executives begin to grit
their teeth is when a PC user decides to make a copy of a
commercially-produced program for a friend. Suddenly there are two
programs where there once was one, and there's a good cha nce that the
recipient of the copied disk will never break down and buy his own
legitimate copy. This scenario, which is repeated daily all over the
world, is the bane of the software industry, which contends it is
losing millions of dollars in potential sales through this penny-ante
thievery. All sorts of copy-protection methods are in use to prevent
software customers from making illegitimate copies, but nearly every
protection method can be circumvented with some patience, cleverness,
and one of numero us commercially available copying programs.

When similar concerns over rampant copying tore through the music
industry a few years back the solution that developed was the levying
of a tax on the sale of all blank cassette tapes. The proceeds from
this tax are distributed amidst the record compa nies in compensation
for lost income. A bizarre form of corporate socialism, perhaps, but
it probably beats having stereo-cops busting through our doors in
search of home-recorded audio cassettes.

The advent of affordable VCRs on a mass scale introduced this
now-familiar dilemma into the realm of video. The Supreme Court
concluded in this case that folks at home could legally make personal
video-tapes of programs and movies that were broadcast o ver the air.
However, making unauthorized duplicates of commercially produced video
tapes is a violation of copyright and punishable by law, as big FBI
notices at the start of most movie tapes remind us. (That this, in
effect, makes the FBI into an enforcer for the Mafia, which is
reputedly knee-deep in the video-porn business, is just one of life's
little ironies, I suppose.)

With software the issue at hand is hazier still, since there is no
single agreement on matters as elementary as defining exactly what
software is. On the one hand, most software programs consist of
thousands of lines of coded instructions which tell one's computer to
perform in a certain manner. This code, which is written by
programmers and consists of a mixture of words, letters, and numbers,
is covered by the same copyright laws that apply to other published
material.

On the other hand, the words, letters and numbers that make up
software code are generally combined into algorithms that describe
mathematical procedures. Considered separately each algorithm can no
more be taken as private property than can phrases like "2+2=4" or
E=mc2. Among programmers an elegant algorithm or set of algorithms
that address common programming tasks are likely to become community
property, and justifiably so. Definitive mathematical answers to
recurring questions have traditionally become the property of everyone
since they represent an advance in general human knowledge. Be that as
it may, unique sequences of coded algorithms have tended to fall under
the rubric of intellectual property fostering their controlled
dissemination and retailing by the individuals or corporations that
own them. In an information economy it is information that becomes the
most precious commodity.

Where things begin to get weird, however, is with the subtle
redefining of both economic and wider social relations that the
present software situation introduces. This redefinition, which is
subtle yet far-reaching, is almost never acknowledged by the software
industry or computer press despite the fact that it is at the root of
the so-called software piracy problem.

In making copies of software programs for their friends, thousands of
normal citizens have not suddenly become moral degenerates and lawless
nihilists. Rather, they've been resisting the encroachment of a new
form of property relations which runs counter to common sense and the
best human instincts. In their desire to have their cake and eat it
too, software companies are actually lobbying for a new form of
legalistic capitalism whose overt operating principle would be Caveat
Emptor.

What would life be like if software companies ran the country? Perhaps
the following little drama may offer a clue: Having recently noticed
that the bushes outside your living room window have grown unruly you
decide to trim them. Your old hedge-clippers having long since
succumbed to rust, you decide to run over to the nearest hardware
store and buy a new pair. At the store the following dialog ensues
with the eager salesman.

"How are these hedge-clippers? Pretty good?"

"Oh yes sir! They are the best on the market. They are twice as sharp
as any other clippers and are greased at the joint to work faster than
any clippers ever made!"

"Well, that sounds pretty impressive. How much are they?"

"Just $450.00, sir!"

"Hmm. A bit pricey perhaps. I presume they have a good warranty?"

"The best, sir! You'll be excited to know that their warranty offers
absolutely no guarantee that they will perform as described. But
that's not all! Should you be dissatisfied with these clippers you
cannot get your money back! And best of all, you cannot legally resell
these clippers to anyone else! In fact, your $450.00 merely buys you a
license to use these clippers. Should you violate any of the other
terms of the warranty contained in this sheet of tiny print, ownership
of the clippers will revert to the manufacturer and you will be liable
to prosecution."

"By jove, that sounds like the best deal I've been offered since I
purchased the Brooklyn Bridge a few years back! I'll take them!"

Back home again you set out to trim the bushes. Things are going along
smoothly until the clippers let out an unexpected series of beeps and
collapse in upon themselves. Consulting the 100-page manual which you
had been hoping to ignore up 'til now you discover that you may have
run into a "bug" which resides in this series of clippers. Phoning the
manufacturer you discover that by sending back the clippers along with
an additional $25 they will send you an updated pair of clippers
without the "bug". A llow 6 to 8 weeks for delivery.

This is less than thrilling but you have little choice it seems, so
you send in the clippers along with a check and wait a couple of
months. Once the new clippers arrive you return to trimming bushes
that have begun looking like mutant growths from Venus. Within an hour
or two the job is done and you are about to go hang up the clippers in
the garage when your neighbor, Joe, stops by.

"Hey hey! New clippers I see!"

"Don't ask."

"Eh? I was thinking that I ought to trim those shrubs of mine that
have been hanging over onto your driveway for months now. If you'll
lend me your new clippers I ought to have them polished off in a
jiffy. Okay?"

"Sorry, Joe. But it says in my clipper-owner agreement that went into
effect the moment I began using the clippers that these clippers can't
be used by anyone besides me. If I let you use them we'll both be
taking food out of the mouths of the company that makes these clippers
and turning ourselves into felons in the process!"

"Gee, sorry I asked! But, hey, what if I buy the clippers from you for
five cents and when I'm done with them sell them back to you for five
cents? Surely there's no harm in that?"

"I'm afraid there is, Joe. Any change in ownership violates the
warranty and I'd never be able to obtain a future update if the
clippers unexpectedly collapse. Besides, I don't really "own" these
clippers I only have the right to "use" them and that right is
non-transferable. C'mon, be a good American and buy your own pair!"

"Thanks for setting me straight, pal! If it weren't for honest
citizens like you I can see how we'd rapidly slip into a state of
criminal anarchy with uncontrolled sharing of commodities! Well, I'm
off to the hardware store to purchase one of those beauties!"

While most software companies may howl about the illegality and
injustice of unauthorized copying of programs - a complaint that is
not entirely without merit - they are simultaneously engaged in a
anti-consumer campaign of guerrilla warfare worthy of the Contras at
the Nicaraguan border. Computer software (and hardware) warranties are
among the least protective in the marketplace; in fact, they are
mostly legal documents designed to disengage the companies from any
but the most minimal responsibilities to their customers.

The disjunction between the claims of most software advertising and
the terms of the actual license agreements is almost total. Note the
following verbatim quote from a typical agreement: "Limited Warranty:
The program is provided "as is" without warra nty of any kind. The
entire risk as to the results and performance of the program is
assumed by you. Should the program prove defective, you (and not
[Software company name] or its dealers) assume the entire cost of all
necessary servicing, repair or correction. Further, [company name]
does not warrant, guarantee or make any representations regarding the
use of, or the results of the use of, the program in terms of
correctness, accuracy, reliability, currentness, or otherwise; and you
rely on the program and results solely at your own risk."

Were most of us to be handed such a "limited warranty" for any other
product or industry we'd consider ourselves the victims of a crass
practical joke or worse. Yet this is the norm with software companies.

In similar fashion, the companies' heated opposition to shared
ownership — or just plain sharing — of programs is a new wrinkle in
the evolution of capitalism. The advent of private property at the
beginning of capitalism's reign tended to gobble up pre-capitalist
forms of property such as the village commons or peasant communal
land, but it still allowed for numerous grey zones of shared property
use. Laundromats, taxi companies, mass transit, furniture rental
firms, and many other enterprises are all predicated on the assumption
that it is both socially valuable and personally profitable to provide
access to products and services that people might not be able to
afford individually.

When was the last time you heard Maytag wringing their hands over how
many washing machines sales have been lost due to the prevalence of
laundromats? And despite the apparent fact that a Hertz car that is
rented out to one hundred patrons in the cours e of a year has, in
effect, been "copied" a hundred times, there have been no overt moves
by GM to shut down Hertz. However, firms that rent software are coming
under increasing fire from software companies whose new model for
consumption seems to be "one person per commodity."

My observations have led me to conclude that most unauthorized copies
of programs are made on the spur of the moment between friends and
more often than not are tried a few times out of curiosity and put on
the shelf to gather dust (or simply erased al together). Since this is
the moral equivilent of taking a friend's new car out for a spin most
people don't think twice about it. Estimates of massive software sale
losses in such cases are largely specious.

Where software publishers may have a legitimate gripe is in the
practice at some of our biggest corporations of buying one copy of a
program, such as Lotus 1-2-3, and making dozens of copies for clerks
in dozens of departments, who then use the program daily. This does
represent a significant loss of income in a context far from that of
friendly disk-sharing over the backyard fence.

While the computer industry may cast itself in the roll of staunch
protector of private property — particularly its own — it has few
misgivings about profiting from other kinds of unauthorized copying.
The burgeoning growth of image digitizers and OCRs (optical character
readers) which allow anyone to capture the pictures or words of
someone else onto disk, regardless of copyright, is one instance.
Commercial on-line databases that are accessible from any
modem-equipped computer represent another. This immediate access to
others' information is the stuff with which recent dreams of an
amazing computerized future have been spun. And it does have its
allure.

As our culture increasingly moves from print to electronic media -
with computers as central processing and distribution channels — all
writing, images, coding, or other forms of "information" will begin to
shift to a new realm of social ownership where old concepts of
property and copyright will be turned inside out. This trend is
inherent in the technology itself.

Attempts to enforce the old forms of ownership and profit-extraction
in the face of this technological drift entail retooling corporations
into autonomous intelligence agencies while simultaneously redefining
the better human impulses such as generosity and sharing to be
criminal acts. One recently developed copy-protection scheme which
illustrates this mentality at work would cause destructive software
"worms" to be released into one's computer if one tried to make an
unauthorized copy of the protected disk. These worms could pop up
unexpectedly at later dates randomly destroying other unrelated data
and software. Welcome to the era of software publisher as sniper!

Yes, the Shmoo has returned and is turning Silicon Valley into the
Valley of the Shmoon, despite the loud protests and desperate schemes
of the software companies. For, you see, software is shmooware and it
loves to reproduce.

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