Software and profits
Scoble makes a point that I've made here many, many times - making software is expensive, and it has to be paid for somehow. There are a few people who don't seem to get this - apparently, the notion of having to pay bills never occurs to them. Now, this really doesn't have anything specifically to do with Closed Source vs. Open Source; you can make money off of either model. Here's what Scoble had to say:
Eben Moglen asks an interesting question: "If I can provide to everyone all goods of intellectual value or beauty, for the same price that I can provide the first copy of those works to anyone, why is it ever moral to exclude anyone from anything?"
Because humans are incented to do more when there's motivation, that's why.
Society learns this over and over and over and over. Communism vs. Capitalism. In every instance, humans do better when the people who do more for society are rewarded.
Which is exactly correct. People will only do so much (and in most cases, that's not a lot) out of altruism. Take BottomFeeder, for instance. Sure, it's freely available, and it'll stay that way. However, my ability to work on it is directly related to it's connection to my job (promoting Smalltalk in general, and Cincom Smalltalk in particular). Don't believe me? Go look at SourceForge - how many of those projects are active? Look at the big, successful open source projects - they all have funding (either direct or indirect). Non-trivial software projects are just too hard to be sustained by any model that doesn't involve some kind of funding.
So to get back to the question Scoble answered - if you provide a good freely, it's value will end up approaching zero. If there's no compensation, no one will feel any compulsion to support or create that good. Ultimately, we all have to eat :)


Comments
Funding?
[Shane King] March 21, 2004 23:02:07.089
The most downloaded projects from sourceforge seem to mostly have something to do with music/video and/or the downloading of it. The top 5 has 3 P2P clients (eMule, DC++, BitTorrent), one CD ripper (CDex), and one video editor (VirtualDub).
What's interesting to me is that all of the top 5 seem to run counter to your conclusion. All of them, as far as I can tell, are done out of altruism. They're all hobby projects, done because the authors have use for such tools. None have any kind of corporate sponsorship that I'm aware of.
We're not talking piddly little user bases here, we're talking software with 9 to 34 million downloads from source forge alone, a figure most commercial app vendors would love to have!
So I really think it depends on the app. If it's something that's likely to be useful to the kinds of people who write software (and obviously P2P clients, CD rippers and video editors must fall into that category), then I think you can expect people to make it for the love of it. It's more specialised (and boring) software that's harder to convince people to work on for free.
Re: Software and profits
[James Robertson] March 22, 2004 0:46:29.823
Comment on Software and profits by James Robertson
Shane
That's not inconsistent with what I said - such projects have very little to do with altruism, and an awful lot to do with self interest...
bittorrent
[bryan] March 22, 2004 8:53:44.119
I'm pretty sure that bittorrent is profitable in some way. anyway, I must protest: incented!!?
Altruism vs self interest
[Shane King] March 22, 2004 9:29:04.940
I don't see altruism and self interest being mutually exclusive. In fact, I'd say all altruistic acts are motivated by self interest: if we didn't have the self interest to perform the act, we wouldn't do it.
Of course, the actual self interest involved has been described differently by different people. An egoist might say it's because helping others gives the individual satisfaction. A buddhist might say it's the playing out of one's karma in the search for enlightenment. And an open source advocate might say it's scratching one's itches. Whatever you call it, it's still altruism despite also having self interest at heart.
Whether you agree or disagree with the FSF position, I think they've done one very important thing: they've brought the idea that copyright is a tradeoff, rather than a natural right, into the spotlight. Sometimes you need to hear the extreame view from one side to see how far from your starting point you've come.
Marginal costs of production?
[~winterblue~] March 22, 2004 9:36:53.059
Marginal costs of production? Only from a technological point of view. If I spend one year of my life writing a book, then sure, making a PDF file of it and putting it on a website for distribution will not constitute a big cost factor. But who is going to give that year of my life back to me? (And maybe a few more years in addition, so I can write more books?) Just because distributing my book, once it IS produced, can be done at negligible cost, technologically, does that mean it is worthless? Disqualifying intellectual property as a concept on the grounds that it is misused by artificially upheld monopolistic organizations is not the answer to this question. Society will have to install a fair and profitable marketplace for intellectual goods, but not abolish it entirely.
~winterblue~
Untitled
[Hmmm...] March 22, 2004 11:14:13.270
All these assume we are all playing Monopoly. In particular, we are reaching a point in which as we play Monopoly there are fewer and fewer winners, and far worse consequences for the losers. Where did "we do something because we enjoy it" end? There are other games to play.
Motivation
[Dennis Decker Jensen] March 22, 2004 15:10:50.413
Some people might find it interesting to read this article with quite different conclusions, http://www.gnu.org/philosophy/motivation.html
Last time I checked, bread and butter gives you satisfaction, but certainly do not gurantee motivation.
There is a gulf between being driven (motivated) to something and just staying alive or keeping status quo.
Re: Software and profits
[James Robertson] March 22, 2004 16:41:52.667
Comment on Software and profits by James Robertson
Bread and Butter guarantee the ability to code another day :)
Live and Enjoy
[~winterblue~] March 23, 2004 10:21:54.976
The game is called "Live And Enjoy As Long As You Can", but, well, one might consider this to be a variant of Monopoly.