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Date:      Fri, 30 Jul 1999 22:30:45 -0600
From:      Brett Glass <brett@lariat.org>
To:        "David Schwartz" <davids@webmaster.com>, "Norm Jacobowitz" <normj@aa.net>, <freebsd-chat@FreeBSD.ORG>
Subject:   RE: Cooperative Funding of Development
Message-ID:  <4.2.0.58.19990730222252.040353c0@localhost>
In-Reply-To: <000801bedb0b$54637540$021d85d1@youwant.to>
References:  <4.2.0.58.19990730202201.040563c0@localhost>

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At 09:15 PM 7/30/99 -0700, David Schwartz wrote:

 >       Of course, this could only affect a company that was subsidizing the
>unprofitable development of one product with the proceeds of another. 

Not true. Destroy a revenue stream, and unless the company lets a whole
bunch of people go and downsizes, it can be in serious trouble. And
if it acts ethically and continues to support its existing users, this
will likely be sufficient to produce a big loss.

The fact is that subsidizing the development of open source software --
particularly GPLed software -- in an effort to destroy a market and
hurt a company can be a very dangerous weapon.

Microsoft did something similar to Quarterdeck in the late 80's, with
software that wasn't open source but WAS free. To ensure that DESQview 
could not compete with Windows 3.0, Microsoft made Windows incompatible 
with Quarterdeck's QEMM memory manager and at the same time began to 
give away its own memory manager for free.

DESQview was not unprofitable, but the loss of the revenue stream
from QEMM -- the company's best seller -- threw the company into
turmoil and sapped its marketing budget. Quarterdeck never recovered.

--Brett Glass


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