Volume vs monopoly? Does not work...
Posted Jul 7, 2009 3:32 UTC (Tue) by khim
In reply to: Again: why are you so sure?
Parent article: Ogg codecs dropped from HTML5
Industry understands volume. If you produce enough of things
and over long enough time, the initial development cost is
If and only if you have monopoly. Otherwise your own chinese
partners will kill all your profits before you can recompense your
development cost. Patents are not the only way to achive monopoly - there
are trademarks, exclusive contracts and so on. But patents are important
part of the whole. Even if they close just one market (US one) for would-be
contenders - it's important market.
Industry also understands monopolies. These are licences to
print money. Generally, the attitude is "get yourself one of those, if you
The more secure your monopoly the better. And industry does not
understand that well enough - that's why they are losing money with
ineffective DRM (like DVD or Blu Ray). But certain level of future
monopoly's security is a requirement - or the development will not even
If you take away (partially) the ability to do the second one,
the industry will continue doing the first one.
If you take the monopoly away significant part of the industry will go
bankrupt - this is exactly what is starting to happen to a lot of firms in
last few years. Is it any wonder that industry fights for its survival
tooth and nail?
Note: I'm not saying we need to keep raising monopoly to the more and
more ridiculous levels for the sake of the industry. After all well-being
if the industry is not an end in itself. But to say that without patents
we'll have the same technological landscape we have today is equally
Analogue? Yeah, that'd be cheaper, faster and more flexible.
Not. There is a very good reason we are in a digital age right now. Many
things are done with "smaller, faster, cheaper, better" gizmos -
You don't need to push everything to the analogue part. Just enough to
make effective unauthorized use of your gadget impossible. Sony did this
even without analogue today (Ok, they did it three years ago, not today),
but it was not an option 20 years ago.
to post comments)