On Mon, 8 Jun 1998, Gordon Campbell wrote:
> Boy, you Yanks make your businesses go through some pretty strange hoops. I
> staill want to know why Intel should share their trade secrets with
> competitors. Makes no sense to this Canuck, let me tell you. It's their
> info, they shouldn't have to give it to anybody.
It's not really the trade secrets at issue.
As I understand it, what got Intel into this mess is their specs for
interactions with the motherboard. The reason the large companies can
make non-intel systems (i.e., much cheaper clones) is that the
motherboards used to use common sockets defined by common specs. Intel
could make their chips for a motherboard set, but so could anyone else.
If Compaq wanted to make Intel versions (pricey, but suited for business
types), they could, but without drastically redisgining manufacturing
processes, they could also make cheap computers with alternative chipsets.
Intel tried to proprietize the board interface. This would mean that now
a company like Compaq has to have one production line for Intel systems,
and another for any other systems. There's no longer interchangeability,
and thus the cost benefits are lost. If it's not cost effective to do
alternatives, the market leader secures the long term commitment to their
specs, AND they eliminate the ability to make clones.
I think the MS case confuses the issue for many people, as it's in some
ways completely opposite of Intel. MS has to give away specs, and is
being questioned for controlling the linkage of products (to render the
fact that they have to give away specs so people will develop software
less of a threat to business). Intel doesn't, and their benefit is in
the spec linkage of their product to hardware. While both involve
unfair product linkages, they occur in different ways, and consumsers
get confused. I don't see it as a matter of forcing Intel to fork over
proprietary secrets, but of questioning their use of such secrets to
stifle competition.
brett
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