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Meaningful vs. meaningless support from businesses

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 6:29 UTC (Thu) by bojan (subscriber, #14302)
In reply to: Meaningful vs. meaningless support from businesses by FlorianMueller
Parent article: Red Hat Responds to U.S. Patent and Trademark Office Request for Guidance on Bilski

> Your mobile phone theory is demonstrably wrong because mobile phones became pretty affordable despite strong IP protection. It didn't require parasitic business models to bring prices down from the $20K level.

That is actually your theory. You are claiming that it is better that public spend more (10 times more, no less) on the same thing. And it has nothing to do with IP protection. You are seeing the current situation as is and saying that nothing else can work, based on nothing but assumptions.

There is a reason we get cheap stuff from China these days. They can make the same thing for less. We cannot. How many are willing to pay 10 times more for essentially the same thing? Not many. And yet, you are saying we should continue doing it, because nobody wants to write open source software (demonstrably false).

> My point is that innovation has to be paid for in the end, and an entire economy can't follow the model of taking other people's developments and monetizing them because then nobody would create a product in the first place.

Red Hat contribute _all_ of their software back to open source and they wrote quite a bit. They also pay salaries of a large number of open source developers. What would you have them do? Just say "Oh, we won't use PostgreSQL, we didn't write it from scratch. Oh, we won't use Apache, we didn't write it from scratch." Please be serious. Red Hat are exploiting the fact that _other_ people found open source attractive. So can others. If everyone in the market contributed as much as Red Hat, open source would continue to be innovated just fine. Red Hat are well and truly paying their rent.

This thing where you describe Red Hat as some sort of parasite is offensive to anyone that knows that they put every last line of code back into open source.

You obviously have a problem with Red Hat because they are successful. You should really get over it. They didn't get there by stealing other people's stuff, like you are trying to portray. That stuff was there for picking, whether Red Hat wanted that or not. And once they got on it, they started doing the right thing - contributing back.


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Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 11:23 UTC (Thu) by FlorianMueller (guest, #32048) [Link] (17 responses)

You are claiming that it is better that public spend more (10 times more, no less) on the same thing

No. The market should result in competitive prices but on the basis of healthy, R&D-centric business models (including healthy, R&D-centric open source models). I took Red Hat's own numbers and assumptions, plus publicly available information on R&D budgets. The 10:1 ratio is their claim. My reasoning was that their case isn't a model for the innovative economy at large and you don't seem to contest that point -- which is the key conclusion it was all about.

There is a reason we get cheap stuff from China these days. They can make the same thing for less.

That's a question of a competitive global market. My angle was which approach to innovation -- parasitic weak-IP vs. R&D-centric strong-IP -- would work for an economy at large. If you let China copy any medications researched in the West, it will be cheaper but at some point there will be no more research. That's what intellectual property rights are for, and China has software patents by the way.

How many are willing to pay 10 times more for essentially the same thing? Not many. And yet, you are saying we should continue doing it, because nobody wants to write open source software (demonstrably false).

The thing you say I said is wrong. I never said that.

On the first part, I've been in this industry for a long time and I can see that open source development has certain unique strengths, but I can't see that full-time programmers on a payroll are 10 times more productive because of open source. So if you want the same quantity of the same quality of programmers, you need more or less the same R&D budget.

Red Hat contribute _all_ of their software back to open source and they wrote quite a bit.

They didn't create their original product. That's different from MySQL and JBoss (yes, I kno Red Hat acquired the latter, but it never acquired Linux).

What would you have them do? Just say "Oh, we won't use PostgreSQL, we didn't write it from scratch. Oh, we won't use Apache, we didn't write it from scratch." Please be serious.

Instead of you telling me to be serious, I have to ask you to stop claiming things I said or implied that I never said or implied. This is already the second such item I have to address in reply to just one posting.

I don't complain about them bundling other software on open source terms. You bring PostgreSQL or Apache, which aren't the issue. I said Red Hat didn't create or acquire the core of its offering: Linux. In all other market segments the leader has either created or acquired the core of his offering. Therefore, no serious politician will dare bet (in terms of intellectual property rights) on the Red Hat model, which so far works in only one market (Linux -- and not even in any other open source segment on any noteworthy scale), to be replicable and to be a model that can replace the traditional R&D-centric strong-IP innovation model.

You obviously have a problem with Red Hat because they are successful. You should really get over it.

In addition to claiming things I said or implied, you now turn this into a speculation on my motivation. Actually it's already the 2nd time you allege envy of Red Hat. That's not a facts-based, issue-focused way to have a discussion.

I've repeatedly made it clear, on my blog and here, that the angle from which I look at it is whether they are an argument for or against software patents with their business model, and responsible politicians can only conclude "for", regrettably.

They didn't get there by stealing other people's stuff, like you are trying to portray. That stuff was there for picking, whether Red Hat wanted that or not.

I'm not trying to "portray" it as stealing. Yet another thing you falsely claim or misguidedly conclude. It's not about a moral dimension, it's all about whether it's an economically sustainable approach to innovation. Even a parasite in a biological sense is just part of nature and can't be condemned morally, but an ecosystem can't live out of just parasites because eventually they all need a host.

My whole point, to state it one last time in this reply, is that politicians look at how innovation must be incentivized and (in terms of IPRs) protected, and Red Hat is a counterproductive "success story" to show to politicians when arguing against software patents. It's almost as bad as if you used the success of manufacturers of generic drugs as an argument against pharmaceutical patents.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 12:20 UTC (Thu) by RobSeace (subscriber, #4435) [Link] (2 responses)

> I said Red Hat didn't create or acquire the core of its offering: Linux.

What are you talking about? They're creating it right now! Have you seen the
various LWN analyses of kernel changes? Red Hat is consistently the top company
making changes to the kernel... They (along with various others) ARE the creators
of Linux!!

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 12:24 UTC (Thu) by FlorianMueller (guest, #32048) [Link] (1 responses)

My blog posting doesn't deny their contributions at this stage and more recently. But if politicians talk about how to incentivize and protect innovation, the assumption is that the original innovators as well as those (often the same ones) taking the initial risk of market adoption have to be incentivized with strong intellectual property rights.

Meaningful vs. meaningless support from businesses

Posted Oct 1, 2010 7:20 UTC (Fri) by bojan (subscriber, #14302) [Link]

> But if politicians talk about how to incentivize and protect innovation, the assumption is that the original innovators as well as those (often the same ones) taking the initial risk of market adoption have to be incentivized with strong intellectual property rights.

You are definitely right about that. It is an assumption.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 12:58 UTC (Thu) by pboddie (guest, #50784) [Link] (5 responses)

If you let China copy any medications researched in the West, it will be cheaper but at some point there will be no more research. That's what intellectual property rights are for, and China has software patents by the way.

I can't let this one go. What you're saying is that no-one would be bothered any more to develop medicines to prevent/treat/cure diseases that in many situations would take people's lives and in many others would noticeably diminish the quality of people's lives. I think you need to stop reducing everything to a single dimension with the label "revenue" attached.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 13:07 UTC (Thu) by FlorianMueller (guest, #32048) [Link] (4 responses)

I firmly believe that patents are needed for the pharmaceutical industry. One can be against software patents and still in favor of pharma patents because those industries have very different characteristics. Most of the arguments used against software patents wouldn't work against pharma patents. In the event you are against pharma patents, you're entitled to your opinion but you won't convince any political decision-making body anywhere in the civilized free world that pharma patents should go away. The alternative would be state-run research aka the most radical form of communism.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 15:04 UTC (Thu) by jbh (guest, #494) [Link] (1 responses)

> state-run research aka the most radical form of communism.

I don't know what to say. This is just silly.

Meaningful vs. meaningless support from businesses

Posted Oct 3, 2010 23:12 UTC (Sun) by Wol (subscriber, #4433) [Link]

aol!

Florian needs to take a look at reality. Most NEW treatments (as opposed to reruns of old drugs) ARE state-funded. They have a habit of coming out of University research.

The other big problem is that most big-pharma research is aimed at the self-inflicted illnesses of affluence. It's widely known that most of the killer diseases of the poor are simply ignored. Unless, of course, they have a habit of causing the poor old western tourist some discomfort ... malaria for example.

Cheers,
Wol

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 15:57 UTC (Thu) by pboddie (guest, #50784) [Link] (1 responses)

In the event you are against pharma patents, you're entitled to your opinion but you won't convince any political decision-making body anywhere in the civilized free world that pharma patents should go away.

You haven't heard my argument, so how would you know that it wouldn't convince anybody unless you believe that either no argument is sufficient for the abolition or curtailment of pharmaceutical and life science patents or that everyone who needs to be convinced is already thoroughly and irreversibly corrupted by the idea that the availability of medicines must be driven on a purely profit-oriented basis?

The alternative would be state-run research aka the most radical form of communism.

Because, after all, states have absolutely no interest in funding research into keeping their citizens healthy/alive? Even the US government spends considerable amounts of money on medical research (from which corporations have benefited hugely), so maybe a reanimation of Senator McCarthy is necessary to combat this "form of communism". If nothing else, it would at least provide this discussion with a participant who might share your enthusiasm for such alarmist and unfounded rhetoric.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 16:06 UTC (Thu) by FlorianMueller (guest, #32048) [Link]

The thing I said about "state-run research" didn't relate to a certain amount of government-funded research, which obviously takes place everywhere in the capitalist world, but to replacing the entire private research sector with state-run research.

In terms of your argument that I haven't heard, I was cautious enough to say "[i]n the event" up front. I still don't see an argument that pharma doesn't need patents, and if I saw one some other time, we might slip off topic at some point.

I used generic drugs as an example. The companies providing them do very limited R&D. It's nice for consumers if their perspective is shortsighted; but they also want the next generation of drugs to be researched and those investing in that research (plus those taking the risk of original market introduction) must be incentivized and protected. That was the perspective. I'd be very interested in analogies from other industries. That would be more useful than a debate on the validity of pharma patents (I don't see any parliament in the industrialized world even talking about the possibility of abolishing those patents).

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 14:03 UTC (Thu) by bojan (subscriber, #14302) [Link] (7 responses)

You know, when you continue with this nonsense about hard working folks at Red Hat being parasites, I just don't have any patience to reply to with anything but an assertion that you must hate their guts.

You obviously don't understand the first thing about open source. Without community, there isn't any (examples: OOo, OpenSolaris). With community, there is (examples: Linux, Apache).

For anyone that understands what Red Hat does, it is quite clear they do not need to "acquire" Linux. After all, their core product is a distro, not the kernel (which I will bet they can swap to say BSD if they wanted to within 5 to 6 Fedora cycles).

When 90% of your distro is coming from elsewhere, this is not called parasitic, it is called open source community. The waste of effort in $50G is largely unnecesary duplication and profiteering, which FOSS mostly eliminates.

So, no, open source is not ten times more efficient because programmers are ten times better. If is more efficient because there are no artificial IP barriers that would cause unnecessary duplication and profiteering. What Red Hat writes today, you can improve tomorrow.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 14:13 UTC (Thu) by FlorianMueller (guest, #32048) [Link] (6 responses)

about hard working folks at Red Hat being parasites

A business model can be parasitic no matter how hard people work. Those are unrelated issues.

If is more efficient because there are no artificial IP barriers that would cause unnecessary duplication and profiteering. What Red Hat writes today, you can improve tomorrow.

That isn't an argument for hugely lower total R&D costs. You can argue that it's desirable to have that freedom to modify the code, or "to enough eyeballs, all bugs are shallow", etc. But at the end of the day, a given amount of development requires a given amount of total input. If from one vendor, it's tha vendor's R&D budget; if from multiple vendors, it's their collective R&D budget. But ultimately a programmer will be on someone's payroll, and that someone paying the programmer must make money somewhere. You just attribute the R&D budget of proprietary software companies to "largely unneces[s]ary duplication and profiteering". I can't see "duplication" being such a big issue, especially since commercial licensing deals can always be worked where they're more efficient than duplicate efforts; and "profiteering" happens with all business models.

I presume many people here program for a living and want to be sure that there's a lot of demand on the job market for software developers. I'd like to know your theory for how the realization of Red Hat's vision (them making $5B in exchange for destroying $50B others make) would be good for programmers seeking (or seeking to retain) a job. Should tens of thousands of developers currently developing proprietary software be laid off and enter the job market? If not, what's your theory for how they will all be better off if Red Hat does what its CEO says?

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 22:04 UTC (Thu) by bojan (subscriber, #14302) [Link]

> I presume many people here program for a living and want to be sure that there's a lot of demand on the job market for software developers. I'd like to know your theory for how the realization of Red Hat's vision (them making $5B in exchange for destroying $50B others make) would be good for programmers seeking (or seeking to retain) a job. Should tens of thousands of developers currently developing proprietary software be laid off and enter the job market? If not, what's your theory for how they will all be better off if Red Hat does what its CEO says?

Look who's whining about job losses now. It's always the same thing - we can't change the economy because people will lose jobs - an argument used by monopolies worldwide. Well, yeah, that's how transformation generally works. A less efficient model is replaced by a more efficient one.

It is not about who's going to keep their jobs. It is about how much money the general public need to spend on a particular type of good.

So, the theory has nothing to do with programmers being better off. It has everything to do with general public being better off.

BTW, if Red Hat need to grow ten times (example) to get to $5B, that means that 10 times more _open_ _source_ programmers will get a job there. In terms of others, like myself, who get paid by _other_ companies (not strictly in the business of open source) to use and maintain this software, we'll continue being paid just fine. And we'll contribute back just fine (in my case, admittedly, not as much as I would like to, but somewhat). And you may also find that should more proprietary software be displaced by open source, more folks like myself will be around in these "other" companies, creating an even more powerful community. You are ignoring this effect entirely.

Your world view involves replacing one thing with another, without any change whatsoever occurring anywhere. This is not the nature of progress. Disruptive changes, like this one, change many different aspects of society and new equilibrium is then established. This is then shattered by a different model, when the weight of the next big change is sufficient to collapse the new, now old model. At which point, more whining will be heard about job losses and the like.

Meaningful vs. meaningless support from businesses

Posted Sep 30, 2010 22:24 UTC (Thu) by bojan (subscriber, #14302) [Link] (3 responses)

> I can't see "duplication" being such a big issue, especially since commercial licensing deals can always be worked where they're more efficient than duplicate efforts;

Of course. I'm sure Oracle, IBM and SAP share most of their code. Give me a break.

> and "profiteering" happens with all business models.

Yeah, and Bill Gates and Larry Ellison are not worth $80G combined. Where were you in the last two decades?

Meaningful vs. meaningless support from businesses

Posted Oct 1, 2010 4:02 UTC (Fri) by FlorianMueller (guest, #32048) [Link] (2 responses)

I'm sure Oracle, IBM and SAP share most of their code. Give me a break.

Sharing code across companies with a different focus only makes sense for larger pieces. Cross-licensing patents is another thing.

There are plenty of problems when trying to integrate open source code available under one license into code under another. GPLv2 isn't even compatible with GPLv3...

Yeah, and Bill Gates and Larry Ellison are not worth $80G combined. Where were you in the last two decades?

Aggressive questions like the last one don't strengthen any of your arguments. Of course I'm aware of the money that's been made in that sector. That's part of capitalism, and as long as competition rules are enforced properly, wealth creation is a good thing. The biggest achievement of those entrepreneurs is not that they made themselves mega-multi-billionaires but that they made many of their employees (typically through stock options) millionaires over the years.

Red Hat has reached a market cap of $8 billion, so it has also had that effect, but the ratio between the value it created in terms of stock and the employment it created for the economy appears less favorable.

Meaningful vs. meaningless support from businesses

Posted Oct 1, 2010 6:06 UTC (Fri) by bojan (subscriber, #14302) [Link] (1 responses)

The difference in this "wealth creation", is that proprietary software does this by overcharging for their monopolies (i.e. what happened in the last two decades), while open source does it by charging for service and support. There is a lot less chance the second model will run away into profiteering, because competiotors have a much easier way of getting in.

Unfortunately for your theories, Red Hat are, as I said before, very good at what they do. So, they take the lion's share (for now).

I have no idea when was the last time you installed anything Red Hat made, but if you did, you would know that there is plenty of innovation there. So, although you are trying to present a situation in which they supposedly don't have the "core" of their product (whatever that's supposed to mean), I can assure you that their "core" is just fine and being rewritten daily. How do you think one gets from Linux From Scratch to Fedora, if not by innovating.

In the end, the main test is which model produces the same goods cheaper. You seem to think that we have to keep spending $50G instead of $5G, because someone may lose their job.

Meaningful vs. meaningless support from businesses

Posted Nov 14, 2010 19:30 UTC (Sun) by promotion-account (guest, #70778) [Link]

And also remember that RedHat has engineers on most of the relevant FOSS layers. From the kernel, to the plumbing layer (NetworkManager, *kit packages, etc), to GCC, to X, to glibc, to GTK, to the foundational GNOME libraries (libxml2, etc), to the user-facing GNOME applications, to the RPM packagers themselves.

So they are not really 'taking away' anything. Our stack wouldn't be the way it is without RedHat.

And speaking of jobs, there are lots and lots of FOSS developers who are having projects that they love thanks to these developers original contributions. Where are they? They are allover the place in the usual silicon valley companies.

Meaningful vs. meaningless support from businesses

Posted Oct 3, 2010 23:15 UTC (Sun) by Wol (subscriber, #4433) [Link]

Sounds like you haven't heard of the word "symbiosis", actually.

Cheers,
Wol

Meaningful vs. meaningless support from businesses

Posted Oct 1, 2010 3:05 UTC (Fri) by vonbrand (subscriber, #4458) [Link]

Not only that: Red Hat has bought companies/software packages with the express purpose of open sourceing the software. Look at 389 Directory Server, the KVM stuff, JBoss.


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