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Date:      Thu, 19 Apr 2001 22:46:06 +0000 (GMT)
From:      Terry Lambert <tlambert@primenet.com>
To:        mwm@mired.org (Mike Meyer)
Cc:        tlambert@primenet.com (Terry Lambert), trevor@jpj.net (Trevor Johnson), freebsd-chat@FreeBSD.ORG
Subject:   Re: Stallman now claims authorship of Linux
Message-ID:  <200104192246.PAA22437@usr01.primenet.com>
In-Reply-To: <15071.14666.204581.853258@guru.mired.org> from "Mike Meyer" at Apr 19, 2001 02:15:22 PM

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> > You clearly do not understand that some businesses can switch
> > from a "service" to a "product" business model.
> 
> You can say that after I pointed out that there were alternative
> business models?

Yes.  I can categorically state that your proposed revenue
models require input proportional to the revenue they
generate, whereas proprietary software models have revenue
which is based on market valuation, not on effort input,
and that the difference between those two values is the
amount of money you can show as profit for shareholders,
as well as applying to R&D costs.

It's pretty obvious if you think about it.  Microsoft is going
to spend $12B in R&D this year.  What is RedHat going to spend?


> If you start a research project aimed at modifying a GPL'ed
> program, the "product" model clearly isn't available.

You are confusing "R" with "D".  The model is vailable, but is
contingent on a business plan.  Business plans can change.

Since the model is, as you say, unavailable, clearly, GPL'ed
code is not desirable to use when starting a business where
you don't want to be locked into a single revenue model or
exit strategy.

> Again - what kind of idiot would invest 3 years without a
> plan to pay for it?

A researcher, who has only the materials available at hand,
including open source software, from which to build upon to
do his research.


> > > selling the ability to run the program (B),
> > 
> > Technically, this constitutes a limited transfer of ownership;
> > under the GPL, I can demand the source code, so long as I have
> > a paid subscription.
> 
> I think we need to clarify which version of the GPL we're talking
> about. The most recent one I have handy (Version 2) says at the top of
> paragraph 2:
> 
>     Activities other than copying, distribution and modification are not
>     covered by this License; they are outside its scope.  The act of
>     running the Program is not restricted, [...]
> 
> That seems to pretty clearly exempt this case. If I transferred the
> program to their computer so they could run it, it wouldn't be - but
> that's not what's happening here.

You are mistaken.  If it is outside of the scope of the license,
then rights are not granted by the license, and therefore no rights
exist.

As far as running the program, the question is whether, when the
program is run on the web server on behalf of a user, whether it
is you running the program, or whether it is the user running the
program using your equipment.

I think you need to read some of RMS' recent writing on the
subject of Application Service Providers, since it's clear that
such an arrangement would be against the spirit of the GPL.

If you want to argue my interpretation, take it up with IBM's
legal department, since it is the lawyers, not me, who arrived
at this interpretation.



> > > or simply saving staff time (C).
> > My employee can demand the source code, and since no additional
> > restrictions are permitted, their non-disclosure agreement with
> > my company is not binding on them.
> 
> That's certainly true, but has nothing to do with this model for
> funding the development. The staff timed saved is the same whether
> they can demand and distribute the source code or not. It'd be rather
> nasty if you were planning on funding the development by selling the
> results as a product, but that wasn't the plan described.

Fine.  If you could point me toward the GNU equivalent of Microsoft
Office, I'd be happy to use it.  It should be able to read and
write all Microsoft file formats, since my staff must communicate
with real world customers in order for me to make money.


> > D) Being a paid support flunky for the software.
> > 
> > E) Being a wage-slave for improvements to the software.
> > 
> > F) Being paid a small amount for the initial developement
> >    as a work for hire for the benefit of the GPL, such
> >    that your wages need to be arbitrarily low, since your
> >    wages can not be amortized.
> > 
> > The GPL thus promotes amateurs in place of trained engineers,
> > unless you are willing to work until you die, and never be
> > able to retire as a result of rewards for your efforts.
> 
> First, this means the GPL has the same effect as commercial software.

No.  I can own a commercial software company, even if it's just
me and some guy named "Bob".  Microsoft is not the only commercial
software company.


> Second, the working conditions you described apply to the vast
> majority of people in the US.

I won't debate economics with you; let's suffice to say that this
is a matter of choice on their part.


> Since many of them do manage to retire as a result of the rewards
> of their efforts, I'd say your final conclusion is false.

"Many" != "vast majority".

Let us say "retire at a monetary standard of living equal to or
in excess of the working standard of living".

That dumps out all the people with union pensions who you care to
point to, etc..


					Terry Lambert
					terry@lambert.org
---
Any opinions in this posting are my own and not those of my present
or previous employers.

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