I've spoken with a lot of entrepreneurs around Seattle, who have a misconception that using open source might somehow force them to give away their intellectual property. Intellectual Property is a hot topic around here, and entrepreneurs are told regularly how they need to have some to get funded. Yet they often think they can add their patented idea to free software and lock up their core idea. It's a bit funny how they want to have their cake and eat it too.

I'm talking specifically about patents here. My understanding of the intent of patents is to give the originator of an idea a legal monopoly that allows them to invest large amounts of capital to bring a new innovative product to market, for the benefit of the rest of us. In an industrial age, patents make a lot of sense--building an assembly line takes a lot of capital, and if you have a bunch of competitors, nobody would make the investment to build the infrastructure, if they couldn't lock up the market and get paid back for their investment.

Now, I won't go into the social ramifications of this arrangement, but I'd like to make two arguments about patents in the age of software here:

  1. The cost of building a distribution and manufacturing network for a software idea is pretty much nil.
  2. Very few software ideas are non-obvious and innovative, or worthy of patent protection.

On the first point, if you had to build or buy your whole set of tools to run your application--compilers, web servers, operating systems, text editors--then yes, maybe you need some sort of way of protecting your investment in all that infrastructure. But with free software, you get all of this for free and have it deployed today on a $600 computer. Your next dollar spent is in your time getting your application actually written. The individual craftsman working from home after hours can develop software in his spare time that can rival anything coming out of a venture-funded startup or a multi-million dollar corporation with the help of all of this free software. Why does the startup need protection from a solo garage programmer? The only reason I can think of is to keep free-market economics from harming the investors, and profits going into the pockets of the entrenched players.

Patents take time and money to obtain. In the world of free software, programmers are far better served creating their idea and bringing it to market first, rather than wasting time and money on patents. Developing a solid program quickly and accumulating a base of customers for your service is going to be the best way to stay ahead of your competition.

So the big question I have for startups is, why should you get all the benefits of Free software with no financial outlay and ability to bypass all sorts of startup cost, and then keep your invention protected by patent? If patents protect a large capital investment necessary to bring a product to market, but then suddenly there is no large capital investment necessary to do so, why should you still need a patent? You can bring a product to market today with a few hundred dollars and a lot of elbow grease.

Of course, you might still be trying to get fabulously wealthy by locking up your idea so nobody else can use it. Fine. Take out your patent. Buy licenses from all the proprietary vendors to use as a platform for your idea. Don't use software covered by the GPL, because you would not be able to protect your patent when you distributed your product--the GPL is incompatible with your patents, and you would lose your license to use the GPL software. Pay a whole lot more for startup costs, all to protect your fine idea... and then you'll run up hard against the second point I'm making here: lots of other people have the same idea as you.

Our patent courts are getting inundated by suits from patent "trolls" who have purchased patents from inventors or researchers, and then sit on those patents purely for the purpose of suing others for profit. The targets of their lawsuits almost always had no awareness of the patent they're being sued for violating--they came up with the same idea independently. Why on earth would we reward the person who filled out a bunch of paperwork to take out a patent, and punish the person who actually brought it to market so the rest of us could benefit?

Patents are supposed to be innovative, and non-obvious. The fact that many different companies come up with the same ideas independently all the time should indicate that those ideas are obvious to people in the field. Because the cost of bringing these ideas to market have dropped to virtually nothing, software companies do not need patent protection--there is very little capital outlay necessary to protect. Our current patent system punishes innovation, instead of promoting it.

Fortunately for the open source community, there are several things that make us more resistant to the patent threat than proprietary companies. We should assert these points whenever someone in the community is threatened by a patent holder:

  • No big pot of money. Because we don't need much capital to get started, there's not really any prize for patent trolls to go after. The patent trolls attack software companies, and their goal is not to drive the company out of business, but to profit off somebody else's work. If there's not enough cash in one place to provide that profit, they won't bother to try. They'll keep suing Microsoft and Blackberry and all those other venture-backed startups that still think the patent system isn't broken.
  • Prior art. Here the public process of open source projects is a huge advantage. One of the best ways of invalidating a patent is to prove that there was prior art. What matters for this is the date of publication--was there prior art published before the date of the patent application? If so, and if that can be proven, it can completely invalidate the patent. Well, the Internet is nothing if not a big publishing machine. A public repository with revisions available by date seems to me like a great way of proving when an idea first entered a codebase of a particular project. Back that up with a look in the Wayback machine or a Wikipedia article, blog entries, IRC logs, and we can prove prior art with any discussions that happened before the patent application.

    Those poor, poor proprietary companies... they can't even talk about things they're trying to patent until they have their application in, or they might invalidate their own patent. When it comes to validating patents, the first date of publication or patent application wins.

  • The GPL. GPL v2 prevents patent holders from providing patent licenses to some recipients of the software, but not others. GPL v3 makes the rules much more specific, basically making covered software incompatible with patents. If you patent something you've extended from GPL v3 software, you're violating the license and lose the right to use that software. So much for that business model.

Patents were originally designed to make it financially possible to bring innovative products to market so the world could benefit from that innovation. The current patent system, at least for the software world, does the opposite, standing in the way and penalizing innovation instead of promoting it. The Free Software movement is trying to do the same thing patents were created to do: make it possible to bring innovations to the public and protect innovators, in the face of a broken patent system. And while free software has taken away the potential for huge profits, it has also taken away the huge costs.

I was talking with a programmer last week about open source. He kept asking, "but how can I make money programming free software?" He seemed to think he was entitled to develop his idea, control it from start to finish, get venture funding, bring it to market, and everybody would buy it and make him the next Bill Gates. He kept saying that free software was not friendly to the community, because it took away everybody's ability to make money. He seemed to think that proprietary software companies developing in a closed ecosystem was the key to developing good software, that that was the only way to make money in software, so if you didn't work with his software community, you wouldn't make any money.

I asked him where the money came from, and his answer was "the customers."

Ah, so let me get this straight: customers are going to fund your closed ecosystem of buddies all trying to corner the market on particular ideas, just to keep this group of developers making money. Really? Even when there's a completely viable alternative that does every bit as much as your system, without vendor lock-in?

Free software is, if nothing else, an advocacy group for users. Customers are the users in this case. Free software is software that users can use for whatever purpose they wish, can give to anybody they want, and change to suit their needs in any way they want--as long as they don't restrict what other users do with it.

Free software is about community. However, in the free software world, users and customers are part of the community, not merely an external entity funding it all, a sugar daddy. In the free software community, the lines between users and contributors, between customers and vendors, become quite blurry. Doing something at the expense of part of the community, just so you can make a fabulous profit, isn't going to keep you in business very long.

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