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+<!--#include virtual="/server/header.html" -->
+<!-- Parent-Version: 1.77 -->
+<title>Free World Notes
+- GNU Project - Free Software Foundation</title>
+<!--#include virtual="/philosophy/po/free-world-notes.translist" -->
+<!--#include virtual="/server/banner.html" -->
+<h2>Free World Notes</h2>
+
+<blockquote>
+<p>This file contains supplemental notes to the manifesto &ldquo;Only
+the Free World Can Stand Up to Microsoft&rdquo;, currently published
+at <a href="/philosophy/free-world.html">
+http://www.gnu.org/philosophy/free-world.html</a>.</p>
+</blockquote>
+
+<p>
+You may write the author, Tom
+Hull <a href="mailto:ftwalk@contex.com">&lt;ftwalk@contex.com&gt;</a>. Hull is
+also the author of the Ftwalk programming language, a script
+programming language which is free software available for Unix
+systems.</p>
+
+<p>
+In general, this critique reflects a more general line of thought,
+which is based on the recognition that the inefficiencies and ulterior
+motives in our current modes of production require much unnecessary
+work to produce products and services of often dubious merit for
+grossly inflated prices, effects which diminish the quality of our
+lives and the worth of our work. Nonetheless, my proposal here is not
+especially radical: it does not challenge the precepts of intellectual
+property; it requires no political action (not even the application of
+antitrust law); it can be initiated by a small group of people, and to
+some extent simply builds on work already done by various individuals
+and groups.</p>
+
+<p>
+Some paragraph notes:</p>
+
+<ol>
+<li>Commercial software companies typically divide their costs into
+several sectors: development; manufacturing; marketing/sales;
+service; general and administrative. Development costs are usually
+less than 20% of revenues. By far the largest cost is
+marketing/sales, so most of what the customer is actually paying for is the
+persuasion to convince the customer to pay so much for something
+that costs so little to develop, and practically nothing to
+reproduce and deliver.</li>
+
+<li>More expensive software often includes after-the-sale service,
+which should be considered a marketing/sales cost, since it props
+up an extravagant price structure. Service should be considered a
+separate cost, independent of development. Free software is always
+delivered with no service, and customers who need service can
+obtain help independently, since the inner workings of the software
+are public knowledge.</li>
+
+<li>Media companies have comparable cash flows, but necessarily work
+within the technical standards of their media. Consuming their
+products does not in any way prevent or even disincline one from
+consuming competitive products.</li>
+
+<li>Microsoft likes to expand its operating system to eliminate the
+market for add-on software, such as for disk compression and
+networking. Microsoft's claim that IE is part of the operating
+system is spectacularly spurious.</li>
+
+<li>Microsoft's dominance is at least partly due to the lack of any
+significant challengers. Apple and IBM used their operating systems
+to lock customers into their hardware, and would at any rate have
+been rejected by the rest of the PC industry, which at least with
+Microsoft got access to the same product. Unix vendors have stuck
+steadfastly to higher priced markets, avoiding direct competition,
+even though NT is aimed directly at destroying Unix. The longer
+Microsoft goes without serious competition, the harder it gets to
+mount any such competition.</li>
+
+<li>The last sentence is a slight exaggeration. Many capitalists do in
+fact realize that they will never be in the position to wield the
+sort of power that Microsoft commands, and as such have no use for
+the megalomania that goes with such power.</li>
+
+<li>The main point, however, is that under current circumstances no
+sane investor will directly challenge Microsoft. The cases in
+other industries where challenges are made to dominant companies
+depend on the discovery of some significant cost advantage (e.g.,
+MCI's challenge to AT&amp;T), but cost advantages are essentially
+impossible in software, unless you're willing to forego all your
+margin, a position no investor will take.</li>
+
+<li>Antitrust laws work more for the protection of other businesses
+than to protect consumer interests, although consumers generally
+do benefit from increased, more even handed competition, at least
+in the long run. In the short run consumers may benefit more from
+crippling price competition. Netscape, for example, having gained
+a dominant market share in its niche, still cannot raise its prices
+because of Microsoft's competition, which is a windfall of sorts
+for customers.</li>
+
+<li>We talk much about the advantages of &ldquo;letting the market
+decide,&rdquo; but most business activity is oriented toward rigging
+the market. Look at any business plan and the key section will be
+something like &ldquo;Barriers to Competition,&rdquo; because
+competition kills profits, and successful companies are the ones that
+avoid competition, or at least are able to dictate its terms.</li>
+
+<li><p>The key thing here is that the free software must have at least the
+same level of quality and utility as the commercial software that
+it challenges, which means that it must be professionally designed
+and developed, tested and supported. Which means that free software
+must move well beyond its current niche as an academic hobby, to a
+point where it is supported by well-financed organizations that can
+attract and support quality workers.</p>
+
+<p>Of course, Microsoft (and all other commercial software companies
+so threatened) will do their best to compete with free software,
+and can be expected to do so as desperately as they compete with
+everything else. There will be many arguments floated as to why
+commercial software is better than free software. Many of these
+arguments are variations on the master salesman's boast that he can
+sell more $10 bills for $20 than a less convincing huckster can
+give away. Such arguments can be defeated by establishing that free
+software is quality software and makes sound economic sense. Some
+arguments are more substantial: commercial software companies have
+a huge head start; some such companies have convinced many users to
+trust their brands; the true costs of software include the time
+that it takes to learn and use, so no software is really cost-free;
+the investment that users and companies have in commercial software
+can make switching painful; many people still regard commercial
+software as something of a bargain.</p>
+
+<p>
+One issue that needs to be recognized and understood is the notion
+that free software, openly published in source form and freely
+inspected by anyone who has an interest or desire to do so, is
+worthy of far greater trust than closed, proprietary, secretive
+software. I for one found the installation of Microsoft's Internet
+Explorer to be a very scary experience: the computer running
+totally out of my control, reconfiguring itself, plugging into
+Microsoft's own web sites, setting up preferences and defaults
+according to Microsoft's business machinations.</p>
+
+<p>
+Sometimes I wonder whether Microsoft's underlying goal isn't simply
+to make the world safe for computer viruses. I'm not an especially
+paranoid person, but how can you ever know?</p></li>
+
+<li><p>Consumers nowadays are so often (and so effectively) fleeced that
+there is much resistance to paying for something you can get away
+with not paying for, so this will be an uphill educational battle.
+There is a game theory problem here: Who should I commit to paying
+for a development which I can get for nothing if only I wait for
+someone else to pay for it? But if everyone waits, no one benefits.</p>
+<p>
+There are other ways to handle this level of funding, such as
+imposing taxes on computer hardware (sort of like the gas tax is
+used to build roads) or even on commercial software (sort of like
+using cigarette taxes for public health). Developing countries, in
+particular, should support free software development, since the
+notion of intellectual property must appear to them as one more
+form of tribute to the rich. These approaches require political
+efforts that are sure to be contested and hamstrung. I'm inclined
+to start small, start voluntarily, and see how far reason and
+civility takes us.</p>
+<p>
+It should also be emphasized that there is at present a substantial
+amount of free software already written and available, and that
+there are many organizations and individuals that have contributed
+to the development and dissemination and support of free software.
+What is missing is a systematic approach to funding development,
+and a strong and consistent system for user feedback and
+direction.</p></li>
+
+<li>I would estimate that free software can be developed to quality
+standards that meet/exceed commercial software for less than 25% of
+the price of equivalent commercial software. This estimate is based
+on common R&amp;D expenditure levels plus a generous amount for those
+organizations which coordinate development and promote use. Given
+that free software is not compelled to become obsolescent (it can
+continue to be used as long as it is useful, whereas commercial
+software must obsolete old product to promote the sales of new),
+the costs for free software will decline over time, sharply except
+for the cases where new needs arise.</li>
+
+<li><p>Much of this work is already being done. What's missing is not so
+much the people or even the organization as a coherent sense of the
+economic imperatives. To date, free software has largely been
+driven by political sensibilities and the traditions of academic
+freedom, which have led it into a hodge podge of areas, many of
+which have very little impact on common needs and usages. (Some,
+such as the Web, have had major impact, and as such have attracted
+enormous commercial attention.) However, the driving force behind
+free software must be economics: why do we spend so much money
+propping up empires when all we really want are clean, simple
+programs that do our work? And why do software professions have to
+work for commercial companies when their skills and work are more
+immediately needed by users?</p>
+<p>
+The argument that large companies (government, any organization
+that spends serious money on software) should routinely support
+free software development is strong and well focused. Even if such
+an organization never directly used free software, its existence
+would provide a damper on prices and a strong bargaining point with
+commercial software vendors. It is a win/win bet: free software,
+cheaper software, more options, more competition.</p>
+<p>
+It is completely obvious that free software organizations must be
+international in scope. It seems likely that most of the support
+for free software will come from outside the US, perhaps by an
+overwhelming margin.</p>
+<p>
+This proposal does not dispute the rights of intellectual property
+owners. Under this proposal it should be possible to buy or license
+technology where appropriate, and inventors should consider the
+possibility of selling their inventions to the free world. Whether
+intellectual property rights in fact encourage innovation in any
+useful way can be debated separately.</p>
+<p>
+Another aspect of this proposal is that it does not try to kill off
+the profit motive in software development. As I envision it, most
+of the free software work would be done by small companies bidding
+on contract proposals, presumably with the intent of making a
+profit. (The companies are likely to be small because they won't
+need to float a large marketing/sales organization, which is the
+main advantage big software companies have over small ones. Also
+because the free software networking organizations should work for
+providing sharable resources, such as capital and services, saving
+small companies from having to overextend themselves.)</p>
+<p>
+My proposal is that free software will start out aiming to produce the
+most basic and most broadly used software: it will in effect harvest
+the &ldquo;cash cows&rdquo; of the commercial software industry,
+rather than attempt to innovate at the fringes of development. (Of
+course, innovators are more than welcome to contribute.) Beyond free
+software there will still be shareware and commercial products, which
+will to some extent compete with free software and to a larger extent
+open up new niches where free software is not yet available. The free
+software industry will provide a damper on the sort of prices that can
+be charged. It will also help lower the costs of all software
+development, and may eventually provide a salvage market for
+discontinued commercial software. Shareware may be a fruitful ground
+for speculative software development, with the goal being to develop
+and popularize a new product that can be sold off to the free
+market.</p>
+<p>
+Finally, I believe that no restrictions should be placed on the use
+of free software: that it can be repackaged, sold, incorporated
+into commercial products. Free software will reduce the development
+costs of commercial software, which will help make commercial
+software cheaper, better, more competitive: all good things. The
+goal after all is better, cheaper, more usable and useful software:
+victory is not measured in bankruptcies. The impulse to segregate
+free software from commercial software is doomed, as is the impulse
+to isolate free software from commerce. We live in a jungle of
+commerce, which no one can truly flee from, regardless of how
+offensive it may seem. The proposal here is to start to take short,
+deliberate, sensible steps toward reclaiming parts of that jungle
+for everyone's use and betterment.</p></li>
+</ol>
+
+<p>This implies, of course, that (following the Reagan demonology)
+Microsoft et al. are &ldquo;The Evil Empire.&rdquo; That's a joke, of
+course, but if it didn't harbor a shred of truth it wouldn't be
+funny.</p>
+
+</div><!-- for id="content", starts in the include above -->
+<!--#include virtual="/server/footer.html" -->
+<div id="footer">
+<div class="unprintable">
+
+<p>
+Please send questions and comments regarding this specific page to Tom
+Hull <a href="mailto:ftwalk@contex.com">&lt;ftwalk@contex.com&gt;</a>.
+</p>
+
+<p>Please send general FSF &amp; GNU inquiries to
+<a href="mailto:gnu@gnu.org">&lt;gnu@gnu.org&gt;</a>.
+There are also <a href="/contact/">other ways to contact</a>
+the FSF. Broken links and other corrections or suggestions can be sent
+to <a href="mailto:webmasters@gnu.org">&lt;webmasters@gnu.org&gt;</a>.</p>
+
+<p><!-- TRANSLATORS: Ignore the original text in this paragraph,
+ replace it with the translation of these two:
+
+ We work hard and do our best to provide accurate, good quality
+ translations. However, we are not exempt from imperfection.
+ Please send your comments and general suggestions in this regard
+ to <a href="mailto:web-translators@gnu.org">
+ &lt;web-translators@gnu.org&gt;</a>.</p>
+
+ <p>For information on coordinating and submitting translations of
+ our web pages, see <a
+ href="/server/standards/README.translations.html">Translations
+ README</a>. -->
+Please see the <a
+href="/server/standards/README.translations.html">Translations
+README</a> for information on coordinating and submitting translations
+of this article.</p>
+</div>
+
+<!-- Regarding copyright, in general, standalone pages (as opposed to
+ files generated as part of manuals) on the GNU web server should
+ be under CC BY-ND 4.0. Please do NOT change or remove this
+ without talking with the webmasters or licensing team first.
+ Please make sure the copyright date is consistent with the
+ document. For web pages, it is ok to list just the latest year the
+ document was modified, or published.
+
+ If you wish to list earlier years, that is ok too.
+ Either "2001, 2002, 2003" or "2001-2003" are ok for specifying
+ years, as long as each year in the range is in fact a copyrightable
+ year, i.e., a year in which the document was published (including
+ being publicly visible on the web or in a revision control system).
+
+ There is more detail about copyright years in the GNU Maintainers
+ Information document, www.gnu.org/prep/maintain. -->
+
+<p>Copyright &copy; 1997 Tom Hull</p>
+
+<p>You may link to this document and/or redistribute it
+electronically.</p>
+
+<!--#include virtual="/server/bottom-notes.html" -->
+
+<p class="unprintable">Updated:
+<!-- timestamp start -->
+$Date: 2019/08/03 14:55:12 $
+<!-- timestamp end -->
+</p>
+</div>
+</div>
+</body>
+</html>