Open Source, Ecosystems, and Intellectual Property issues

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Open Source: What ?
Software:
• Distributed with source code
• Includes a license that allows users to modify
etc. Establishes other “rules”
• Version is available for free
• Open standards versus Closed / Proprietary
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Open Source: Examples
• Linux: 1991, Operating System (Businesses)
• Apache: 1995, Web Server, 45% market share
• Firefox: 2003, Web Browser, 19% market share
• Wordpress: 2003, Blogging Platform
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Open Source: Examples
• Hadoop: 2005, Big Data
• Android: 2007, Mobile Operating System (Linux
Fork)
• Bitcoin: 2009, Cryptocurrency
• OpenStack: 2010, Cloud
• OpenSSL: 1998, Encryption (Heartbleed)
– Core Infrastructure Initiative
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Open Source: Evolution
• Life Cycle curve
• From Philosophy to:
• Business cases
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Open Source
• Free Software movement to:
– Richard Stallman (Idealist)
• Open Source movement
– Eric Raymond, Linus Torvalds (Pragmatist)
– Linux, Cathedral & Bazaar
• Fertile ground for Linux project
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Open Source: License
Expresses use, for Copyrighted software:
• Right to share, use and spread, versus hoard
• GPL (Copyleft): Stallman FSF
– Source code freely available
– Free version
– Changes back to project
– License remains with derivative works
– Anyone can distribute product
• Apache: Expands business case
– More permissive: license does not have to remain
with derivatives
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Open Source: Requirements
• Leadership, examples:
– Linux Foundation, Linus Torvalds
– Apache Software Foundation
• Effective communications infrastructure
• License
• Developer Community: nurture
• Useful Project (stage of life cycle)
– Compete with incumbent re: price and utility
– Innovate (Hadoop)
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Open Source: Requirements
• Rewards
– Ego
– Instant gratification
– Network effects (Product)
– Utility
• Corporate contributions
– Red Hat: Linux
– Google: Linux
– Yahoo: Hadoop
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Open Source: Advantages
• Network Effects
• Rapid Development Cycles
• Cost Savings
• Protected from Lock-in
– Alternate vendors
– Life of code (Windows XP)
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Open Source: Advantages
• Flexibility in implementation
• Influence development
• Developer community support
• Spread the code, sharing
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Open Source: Risks
• Free rider effect ?
• IP risk? (Apple versus Samsung)
• Forking (Android / Kindle Fire)
• Security (OpenSSL versus Linux)
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Open Source: Business Models
• Cost and innovation sharing
– Apache
– Facebook (storage)
– Hadoop
• Market Position
– Firefox - defensive
• Market Share
– Android
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Open Source: Business Models
• Support model
– Red Hat (Linux)
– Cloudera / HortonWorks (Hadoop)
• As a Service: hybrid with proprietary code
– Facebook, GitHub, Amazon
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Crowdsourcing: Examples
• The product
– Open Source
– Wikipedia
– Machine learning (Waze)
• The service offering
– Uber
– Airbnb
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Crowdsourcing: Examples
• The funding (Crowdfunding)
– Kickstarter, Indiegogo, Gofundeme
– Funding (not capital investing)
– Community around an idea
– $1bn on Kickstarter, longtail
– Oculus, raised $2.4m on Kickstarter
• The Marketing / Events
– #hashtags
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Ecosystems: Examples
• Mobile
– BlackBerry
– iOS (developer $s leader)
– Android (market share leader)
– Windows (Gaming?)
• Social Networks
– Facebook (lost gaming F8 returned)
– Twitter (developer conference returned)
• Apple Pay: retailers, banks
• Wearables: Nike out, Android Wear, Google Glass
• Auto-interface: Apple versus Android Auto versus Industry
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Ecosystems: APIs
• Application Programming Interface (API)
• Gateway between app developer community
and platform
• Set of rules developer needs to know that the
app works
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Ecosystems: APIs
• API communicates platform updates
• Open versus closed (relatively)
• Stage of lifecycle impacts API strategy for
platform
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Ecosystems
• Build community around platform
– Conferences: updates / roadmaps / APIs
• Positive sum relationship
– Outsource development expands possibilities
(resources & imagination)
• Increasing returns
• Consumer lock-in hinders new entrants
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Ecosystems
• App developer community priorities
• Customer experience depends on entire
ecosystem
• Versus closed system: Car
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Intellectual Property: Patent
• Novel and useful invention
• Need to file: USPTO
• 14 or 20 years, from file date
• Standards Essential Patents
• Patent Trolls
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Intellectual Property: Patent
• Invent, license or litigate
• Google Contact Lense
• Amazon 1 click Patent (with shopping cart)
• Apple versus Samsung (Google’s Android)
• Tesla
• China
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Intellectual Property: Copyright
• Expression of work
• Subsists (no requirement to file)
• 70 years after death of author
• Digital Millennium Copyright Act: Safe Harbor
• SOPA (Internet blackout)
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Intellectual Property: Copyright
• Napster / MegaUpload
• RIAA, MPAO
• Google’s YouTube versus Viacom
• Getty Images
• Aereo loses
• Vine and World Cup: Fair Use ?
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Intellectual Property: Trademark
• Name protection
– Permanent while in use, build brand
• Apple versus Apple: 30 year dispute
• Google: Glass
• Apple: App Store
• Trade Secret
– Search algorithm
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