product: open source, ecosystems, and intellectual property issues
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Open Source, Ecosystems, and Intellectual Property issuesTRANSCRIPT
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 projectDigital Marketing [email protected] University of Delaware
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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
derivativesDigital Marketing [email protected] University of Delaware
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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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