As someone who HAS been working in the computer science industry for a couple of decades, I can only shake my head. You can try any business model you want - but, then, so can I.
If a mechanic fixes my car, I pay him the bill. No one else can ever use the “fixes” to my car. That transaction lives in a moment of time.
If I create a software program (I being me or my company), it has a life that is determined by the market. People might buy it for months, for years, or, sadly, for only a few days. I charged what I thought was a good price point. However, as you know, I have only granted them a license to use the software. I have not licensed them to distribute my software, for which I would have charged them more and they would have to pay me a royalty of some sort.
Why do I only license software (you can put music, musical performance, or whatever here)? Because I have no idea what the earning potential is of this work. I don’t know what it’s worth, so I don’t know how much to charge for an outright sale of the work. I only let you use it. It looks the same to you as you use it, but it protects me and my business.
I use the revenue stream from this product to pay the people who developed it, the secretaries, the parking lot attendant. Those are the people benefiting from the protection of my intellectual property. This is our livelihood. Why would we give it away?
If someone down the road wants to use my product in their product, then they have to license it for that use, and pay me. It would not be fair to my employees to give their work product away.
A commissioned work is a little different. For a set price, I create a work for someone. They own the copyright. They can decide what to do with the work. If they want to sell it for more than I was commission for, that is fine. I got my price for the work. If they want to give it away, fine. If they want to start a business with it, fine as well.
You need to remember that in the copyright world you are only granted a use license.
I am under no obligation to set a price point for my work that allows anyone to buy it. That price point would be – FREE – and that is not my business model.
Real world example.
We contracted with “Company A” for some engineering work to design “Product X” based upon our specifications. (We were shy a couple of mechanical engineers at the time, so had to contract it rather than do it in-house at the time)
The work was done, we received our drawings and prototype “Product X” and “Company A,” with which we contracted, received their somewhat healthy paycheck (a little over 1/4 million dollars…for about 640 engineering hours plus prototyping and testing). We shook hands and parted friends. (They did the work on our paycheck and part of the deal was that we owned the IP when it was all said and done)
We contracted with another company to do our manufacturing for us. They rolled off a small run of “Product X” and then went on to do other contracts.
We were then working with “Company B” as a teaming partner to do a large-scale IT integration project. We were trying to sell “Product X” as part of this project. “Company B” wasn’t interested in buying our “Product X,” though (they still wanted us to work with them, just not to provide “Product X”)
We find out during part of the architecting process the reason why “Company B” didn’t want to buy “Product X” from us. They found out that “Company A” was also selling “Product X”…but for cheaper than what we offered it.
(We convinced “Company A” to take the product off of the market, but that’s a different story)
Bottom line is that “Company A” stole our IP and then tried to sell the physical artifacts from that IP as if it was their own IP. How could we acuse them of doing this? Because the original idea for “Product X” was our idea. We risked 1/2 million dollars in R&D money (the 1/4 million paid to “Company A” for engineering services plus money for our own engineers) to bring that idea into a concrete product.
You may ask, well, the engineers got paid for their time, so the product should be in the public domain, right?
Well, my company wouldn’t have put up the money to allow the R&D for the product if they didn’t have a reasonable expectation to see some return from the R&D investment. That is not a good way to keep a company profitable.
You say: profits…baaahh…humbug.
I say, tell that to the 401(k) investors, the IRA investors, the union pension fund investors, and all the other people who risked their money on me…believing that I would turn a profit. If I don’t turn a profit, then they get no return on their investment. If enough people have that attitude, the stock market goes down and
we’re in a recession.
And what about the employees of that company? If there’s no money coming in to pay their paychecks, how can we pay them? (If we don’t get return on risk, then guess what: people get laid off)
So who’s the better Catholic? The one who tries to turn a profit, keeping people employed and providing return on investment…or the one who doesn’t care about that stuff, but ends up getting people laid off and causing investors to lose their shirts? Who is
REALLY considering the Universal Destination of Goods? Who is
REALLY supporting the common good?