perm filename FOO.XGP[ESS,JMC]6 blob sn#119258 filedate 1974-09-11 generic text, type T, neo UTF8
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␈↓␈↓↓␈↓
␈↓ ↓H
␈↓ β~HOW ARE ALL THESE GOOD THINGS TO COME ABOUT?
␈↓ ↓H

␈↓ ↓H

␈↓ ↓H
␈↓ α_The␈α∞developments␈α∞discussed␈α∞in␈α∞other␈α∞sections␈α∞of␈α∞this␈α∞book␈α∞can␈α∞come␈α∞about␈α∞in␈α∞a␈α∞number␈α∞of
␈↓ ↓H
␈↓ ↓Hways.␈α
Here␈α
are␈α
soee␈α
relevant␈α
considerations:
␈↓ ↓H

␈↓ ↓H
␈↓ α_1.␈α
A␈α
lot␈αdepends␈αon␈αwhether␈αthe␈αdevelopment␈αis␈αa␈αsystem␈αor␈αa␈αproduct.␈αWe␈αwill␈αuse␈αthe␈αterm
␈↓ ↓H
␈↓ ↓H␈↓↓product␈↓␈α∀for␈α∀something␈α∀that␈α∀can␈α∀be␈α∀developed␈α∀and␈α∀manufactured␈α∀by␈α∀a␈α∀company␈α∀and␈α∪sold␈α∪to
␈↓ ↓H
␈↓ ↓Hindividuals␈αand␈αwhich␈αhas␈αthe␈αadditional␈αproperty␈αthat␈α␈↓↓the␈αfirst␈αperson␈αwho␈αbuys␈αone␈αwill␈αbenefit␈↓.␈αA
␈↓ ↓H
␈↓ ↓H␈↓↓system␈↓,␈αon␈αthe␈αother␈αhand,␈αrequires␈αa␈αpublic␈αdecision␈αto␈αimplement␈αit,␈αand␈αrequires␈αmany␈αcustomers
␈↓ ↓H
␈↓ ↓Hbefore␈αany␈αget␈αbenefits.␈αOften␈αa␈αsystem␈αis␈αa␈αnatural␈αmonopoly␈αso␈αthat␈αa␈αdecision␈αto␈αimplement␈αit␈αone
␈↓ ↓H
␈↓ ↓Hway␈α∂excludes␈α∂other␈α∂implementations␈α∞and␈α∞may␈α∞exclude␈α∞competing␈α∞companies.␈α∞Sometimes␈α∞there␈α∞is␈α∞a
␈↓ ↓H
␈↓ ↓Hchoice␈α
whether␈α
a␈α
given␈α
benefit␈α
can␈α
be␈α
obtained␈α
by␈α
a␈α
product␈α
or␈α
system,␈αand,␈αin␈αthat␈αcase,␈αI␈αwould
␈↓ ↓H
␈↓ ↓Hprefer␈α∞to␈α∞see␈α∞it␈α∞implemented␈α∞by␈α∞a␈α∞product,␈α
because␈α
competition␈α
is␈α
then␈α
possible,␈α
and␈α
because␈α
each
␈↓ ↓H
␈↓ ↓Hperson␈α∞can␈α∞decide␈α∞for␈α∞himself␈α∞whether␈α∞the␈α∞benefit␈α∞is␈α
worth␈α
the␈α
cost.␈α
Of␈α
course,␈α
a␈α
case␈α
could␈α
arise
␈↓ ↓H
␈↓ ↓Hwhere␈αthe␈αcosts␈αare␈αvery␈αmuch␈αlower␈αwith␈αa␈αsystem,␈αand␈αthen␈α
it␈α
might␈α
be␈α
preferable.␈α
Within␈α
systems,
␈↓ ↓H
␈↓ ↓Hwe␈α⊂can␈α⊂also␈α⊂distinguish␈α⊂services␈α⊂like␈α⊂the␈α⊂telephone␈α⊂that␈α⊂are␈α⊂natural␈α⊂monopolies,␈α⊂but␈α∂where␈α∂each
␈↓ ↓H
␈↓ ↓Hperson␈αcan␈αdecide␈αhow␈αmuch␈αof␈αthe␈αservice␈αhe␈αwants␈αto␈αbuy,␈αfrom␈αservices␈αlike␈αpublic␈αroads,␈αsewers,
␈↓ ↓H
␈↓ ↓Hor␈αdefense␈αwhere,␈αonce␈αa␈αpublic␈αdecision␈αhas␈αbeen␈αmade␈αof␈αhow␈αmuch␈αsociety␈αwill␈αbuy,␈αeach␈αperson
␈↓ ↓H
␈↓ ↓Hhas␈αto␈αpay␈αhis␈αassessed␈αshare.␈αThe␈αformer␈αis␈αusually␈αpreferable␈αif␈αthe␈αservice␈αcan␈αbe␈αorganized␈αthat
␈↓ ↓H
␈↓ ↓Hway.␈αPrimary␈αand␈αsecondary␈αeducation␈αis␈αa␈αservice␈αthat␈αcan␈αbe␈αpaid␈αfor␈αby␈αthe␈αconsumer␈αbut␈αwhich
␈↓ ↓H
␈↓ ↓His␈α
usually␈α
paid␈α
out␈α
of␈α
taxes.␈α
It␈α
seems␈α
to␈α
me␈α
that␈α
the␈α
usual␈α
reasons␈α
for␈α
handling␈αfree␈αeducation␈αare
␈↓ ↓H
␈↓ ↓Hvalid␈α
and␈α
may␈α
apply␈α
also␈α
to␈α
health␈α
care.
␈↓ ↓H

␈↓ ↓H
␈↓ α_2.␈α⊃The␈α⊃simplest␈α⊃kind␈α⊃of␈α⊃product␈α⊃to␈α⊂put␈α⊂into␈α⊂use␈α⊂is␈α⊂one␈α⊂in␈α⊂which␈α⊂the␈α⊂major␈α⊂development
␈↓ ↓H
␈↓ ↓Hexpenses␈α∞are␈α∞for␈α∞a␈α∞particular␈α∞design␈α∞and␈α∞preparing␈α∞for␈α
production␈α
in␈α
the␈α
factories␈α
of␈α
a␈α
particular
␈↓ ↓H
␈↓ ↓Hcompany.␈α⊂The␈α⊂first␈α⊂company␈α⊂to␈α⊂introduce␈α∂the␈α∂product␈α∂knows␈α∂that␈α∂potential␈α∂competitors␈α∂will␈α∂face
␈↓ ↓H
␈↓ ↓Happroximately␈α
the␈α
same␈α
expenses.␈α
Another␈α
favorable␈α
case␈α
is␈α
when␈α
the␈α
product␈α
involves␈αinventions
␈↓ ↓H
␈↓ ↓Hof␈α_a␈α_type␈α_that␈α_can␈α_get␈α_good␈α_patent␈α_protection.␈α_The␈α_worst␈α↔case␈α↔is␈α↔when␈α↔there␈α↔are␈α↔large
␈↓ ↓H
␈↓ ↓Hproof-of-concept␈α∞and␈α∞market␈α∞education␈α∞expenses␈α∞that␈α∞do␈α∞not␈α∞result␈α
in␈α
patent␈α
protection.␈α
In7such␈α
a
␈↓ ↓H
␈↓ ↓Hcase,␈α⊃a␈α⊃company␈α⊃that␈α⊃doesn't␈α⊃already␈α⊃have␈α⊃a␈α⊃near␈α⊃monopoly␈α⊃may␈α⊃find␈α⊃introducing␈α⊂the␈α⊂product
␈↓ ↓H
␈↓ ↓Heconomically␈α⊃not␈α⊃worthwhile,␈α⊃because␈α⊂other␈α⊂companies␈α⊂will␈α⊂enter␈α⊂the␈α⊂market␈α⊂after␈α⊂the␈α⊂market␈α⊂is
␈↓ ↓H
␈↓ ↓Hestablished,␈α
and␈α
the␈α
pioneer␈α
will␈α
not␈α
recover␈α
its␈α
initial␈α
expenses.␈α
This␈α
is␈α
particularly␈α
acute␈α
when␈α
a
␈↓ ↓H
␈↓ ↓Hsmall␈α
company␈α
considers␈α
introducing␈α
a␈α
product␈α
and␈α
can␈α
see␈αthat␈αa␈αcertain␈αvery␈αlarge␈αcompany␈αwill
␈↓ ↓H
␈↓ ↓Hbe␈α∪able␈α∪to␈α∪take␈α∪90␈α∪percent␈α∪of␈α∪the␈α∪market␈α∪after␈α∪the␈α∪concept␈α∪has␈α∩been␈α∩proved.␈α∩Many␈α∩possible
␈↓ ↓H
␈↓ ↓Himprovements␈αto␈αautomobiles␈αhave␈αthis␈αcharacter,␈αand␈αan␈αexample␈αis␈αthe␈α
firstsmog␈α
control␈α
device.␈α
In
␈↓ ↓H
␈↓ ↓Hthe␈αnineteen␈αfifties,␈αthe␈αState␈αof␈αCalifornia␈αpassed␈αa␈αlaw␈αmaking␈αsmog␈αcontrol␈αdevices␈αmandatory␈αas
␈↓ ↓H
␈↓ ↓Hsoon␈α⊂as␈α⊂two␈α⊂manufacturers␈α⊂had␈α⊂demonstrated␈α⊂them.␈α∂Two␈α∂did,␈α∂but␈α∂the␈α∂automobile␈α∂manufacturers
␈↓ ↓H
␈↓ ↓Hmade␈α
their␈α
own␈α
instead␈α
of␈αbuying␈αthem␈αfrom␈αthe␈αcompanies␈αthat␈αmade␈αthe␈αdemonstrations.␈α(Check
␈↓ ↓H
␈↓ ↓Hto␈α∂make␈α∂sure␈α∂this␈α∂is␈α∂right.)␈α∂The␈α∂computer␈α∞controlled␈α∞car,␈α∞as␈α∞discussed␈α∞earlier,␈α∞may␈α∞well␈α∞have␈α∞htis
␈↓ ↓H
␈↓ ↓Hcharacter␈αunless␈αit␈αturns␈αout␈α
to␈α
be␈α
accomplished␈α
in␈α
a␈α
patentable␈α
way␈α
which␈α
is␈α
very␈α
doubtful.␈α
Another
␈↓ ↓H
␈↓ ↓Hexample␈α
is␈α
that␈α
Thomas␈α
Edison␈αgave␈αthe␈αfirst␈αproof-of-concept␈αfor␈αsupplying␈αelectricity␈αas␈αa␈αpublic
␈↓ ↓H
␈↓ ↓Hutility,␈α
but␈α
the␈α
other␈α
electric␈α
companies␈α
didn't␈α
have␈α
to␈α
pay␈α
him␈α
anything␈α
for␈α
this.
␈↓ ↓H

␈↓ ↓H
␈↓ α_The␈αautomatic␈αdelivery␈αsystem␈αis␈αa␈αsystem␈αpar␈αexcellence.␈αIt␈αrequires␈αdigging␈αup␈αthe␈αstreets,␈αit
␈↓ ↓H
␈↓ ↓Hneeds␈αlots␈α
of␈α
customers␈α
for␈α
success,␈α
and␈α
the␈α
benefits␈α
to␈α
an␈α
individual␈α
subscriber␈α
depend␈α
on␈α
stores,␈α
etc.
␈↓ ↓H
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a␈α
good
␈↓ ↓H
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␈↓ ↓H
␈↓ ↓Harea␈α
from␈α
the␈α
government␈α
and␈α
raise␈α
the␈α
money␈α
itself.␈α
The␈α
latter␈α
has␈α
the␈α
advantage␈α
that␈α
the␈α
company
␈↓ ↓H
␈↓ ↓Hrisks␈α∂its␈α∂investors'␈α∂money␈α∂on␈α∂the␈α∞proposition␈α∞that␈α∞the␈α∞service␈α∞will␈α∞prove␈α∞popular,␈α∞whereas␈α∞if␈α∞thhe
␈↓ ↓H
␈↓ ↓Hinvestment␈α⊂is␈α⊂made␈α⊂with␈α⊂public␈α⊂money,␈α⊂many␈α⊂more␈α⊂people␈α⊂have␈α∂to␈α∂be␈α∂convinced.␈α∂Naturally,␈α∂the
␈↓ ↓H
␈↓ ↓Hinvestors␈αwill␈αexpect␈αto␈αbe␈αrewarded␈αfor␈αtheir␈αgamble␈αby␈αhigher␈αrates␈αthan␈αthe␈αcity␈αmight␈αcharge.␈αIf
␈↓ ↓H
␈↓ ↓Hthe␈αproof-of-concept␈αand␈αproof-of-market␈αexpenses␈αare␈αvery␈αhigh,␈αas␈αI␈αexpect␈αthey␈αwould␈αbe␈αfor␈αthe
␈↓ ↓H
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system,␈α
the␈α
franchise␈α
would␈α
have␈α
to␈α
cover␈α
a␈α
wide␈α
area␈α
in␈αorder␈αto␈αbe␈αworth␈αthe␈αnecessary
␈↓ ↓H
␈↓ ↓Hinvestment␈α∃-␈α∃a␈α∃wider␈α∃area␈α∃than␈α∃could␈α∃immediately␈α∃be␈α∃promised␈α∃service.␈α∀An␈α∀attempt␈α∀by␈α∀the
␈↓ ↓H
␈↓ ↓Hgovernment␈αto␈αoptimise␈αby␈αgiving␈αaway␈αa␈αsmall␈αfranchise␈αand␈αthe␈αexpecting␈αto␈αput␈αother␈αfranchises
␈↓ ↓H
␈↓ ↓Hup␈αfor␈αbids␈αmight␈αfail␈αif␈αthe␈αinvestors␈αthought␈αthey␈αwould␈αbe␈αdeveloping␈αthe␈αsystem␈αfor␈αthe␈αbenefit
␈↓ ↓H
␈↓ ↓Hof␈αfree-loaders.␈αAn␈αalternative␈αwould␈αbe␈αfor␈αthe␈αgovernment␈αto␈αdevelop␈αa␈αdemonstration␈αsystem␈αand
␈↓ ↓H
␈↓ ↓Hthen␈α
put␈α
the␈α
franchises␈α
up␈α
for␈α
bids.␈α
Even␈α
this␈α
might␈α
require␈α
a␈α
different␈αpolitical␈αatmosphere␈αthan
␈↓ ↓H
␈↓ ↓Hexists␈α
now␈α
-␈α
an␈α
atmosphere␈α
in␈α
which␈α
legislatures␈α
would␈α
support␈α
something␈α
that␈α
promises␈αa␈αbenefit
␈↓ ↓H
␈↓ ↓Hrather␈αthan␈αconfining␈αthemselves␈αto␈αsupporting␈αprojects␈αwhose␈αsupporters␈αpredict␈αdisaster␈αunless␈αthe
␈↓ ↓H
␈↓ ↓Hproject␈α
is␈α
undertaken.
␈↓ ↓H

␈↓ ↓H
␈↓ α_All␈αthis␈αsuggests␈αanother␈αway␈αof␈αencouraging␈αdevelopment.␈α
The␈α
idea␈α
is␈α
that␈α
the␈α
developer␈α
of␈α
a
␈↓ ↓H
␈↓ ↓Hsystem␈α⊂should␈α⊂be␈α⊂able␈α⊂to␈α⊂expect␈α⊂a␈α⊂financial␈α⊂reward␈α∂for␈α∂his␈α∂pioneering␈α∂(if␈α∂it␈α∂is␈α∂successful)␈α∂under
␈↓ ↓H
␈↓ ↓Hcircumstances␈α⊂in␈α⊂which␈α∂the␈α∂patent␈α∂system␈α∂is␈α∂not␈α∂good␈α∂enough.␈α∂Why␈α∂isn't␈α∂the␈α∂patent␈α∂system␈α∂good
␈↓ ↓H
␈↓ ↓Henough?
␈↓ ↓H

␈↓ ↓H
␈↓ α_First␈α
and␈α
simplest,␈α
if␈α
it␈α
takes␈α
the␈α
public␈α
a␈α
long␈α
time␈α
to␈α
decide␈α
they␈α
like␈α
a␈α
product␈α
or␈α
system␈α
and
␈↓ ↓H
␈↓ ↓Hthe␈α
seller␈α
loses␈α
money␈α
while␈α
this␈α
is␈α
going␈α
on,␈α
when␈α
the␈α
public␈αfinally␈αis␈αattracted,␈αother␈αthere␈αis␈αno
␈↓ ↓H
␈↓ ↓Hpatent␈αprotection␈αfor␈αthe␈αresult␈αof␈αthe␈αmarket␈αdevelopment.␈αIf␈αthe␈αoriginal␈αdeveloper␈αis␈αa␈αvery␈αlarge
␈↓ ↓H
␈↓ ↓Hcompany,␈α∞it␈α∞may␈α∞hope␈α∞to␈α∞get␈α
a␈α
large␈α
share␈α
of␈α
the␈α
market␈α
and␈α
will␈α
accept␈α
the␈α
free-loading.␈α
This␈α
is
␈↓ ↓H
␈↓ ↓Hwhat␈αhappened␈αwith␈αRCA's␈αdevelopment␈αof␈αcolor␈αTV.␈α
A␈α
small␈α
company␈α
may␈α
simply␈α
decide␈α
that␈α
it␈α
is
␈↓ ↓H
␈↓ ↓Himpractical␈α
to␈α
undertake␈α
the␈α
development.
␈↓ ↓H

␈↓ ↓H
␈↓ α_Secondly,␈α∂patent␈α∂protection␈α∂may␈α∂be␈α∂unobtainable,␈α∂because␈α∂the␈α∂basic␈α∂ideas␈α∂are␈α∞in␈α∞the␈α∞public
␈↓ ↓H
␈↓ ↓Hdomain,␈αand␈αthe␈αrealization␈αmay␈αbe␈αcarried␈αout␈αin␈αa␈αvariety␈αof␈α
ways.␈α
Moreover,␈α
most␈α
of␈α
the␈α
cost␈α
in␈α
a
␈↓ ↓H
␈↓ ↓Hdevelopment␈αmay␈αbe␈αin␈αgoing␈αfrom␈αa␈αdevice␈αthat␈αsometimes␈αworks␈αto␈αone␈αthat␈αis␈αreliable.␈αBesides␈α
all
␈↓ ↓H
␈↓ ↓Hthat,␈α
the␈α
concept␈α
of␈α
patentable␈α
invention␈α
as␈αdistinguished␈αfrom␈αa␈αnatural␈αdevelopment␈αof␈αthe␈αprior
␈↓ ↓H
␈↓ ↓Hart␈α
has␈α
been␈α
whittled␈α
away␈α
by␈α
innumerable␈α
court␈α
decisions.
␈↓ ↓H

␈↓ ↓H
␈↓ α_One␈αidea␈αfor␈αrelieving␈αthe␈αsituation␈αis␈αto␈αmake␈αpost␈αfacto␈αawards␈αof␈αroyalties.␈αThe␈α
idea␈α
is␈α
that
␈↓ ↓H
␈↓ ↓Hafter␈α∂an␈α∂development␈α∂has␈α∂been␈α∂put␈α∂into␈α∂use␈α∞and␈α∞has␈α∞proved␈α∞valuable,␈α∞a␈α∞legal␈α∞proceeding␈α∞should
␈↓ ↓H
␈↓ ↓Hdetermine␈αwho␈αhas␈αcontributed␈αwhat␈αto␈αthe␈αdevelopment␈αand␈αdivide␈αroyalties␈αover␈αa␈αperiod␈αof␈αyears
␈↓ ↓H
␈↓ ↓Haccordingly␈αamong␈αindividuals␈αand␈αfirms.␈αThere␈αwould␈αhave␈αto␈α
develop␈α
a␈α
body␈α
of␈α
case␈α
law␈α
before␈α
it
␈↓ ↓H
␈↓ ↓Hbecame␈αfeasible␈αfor␈αa␈αcompany␈αto␈αpredict␈αwhat␈αit␈αmight␈αget␈αback␈αif␈αit␈αput␈α
money␈α
into␈α
a␈α
development
␈↓ ↓H
␈↓ ↓Hthat␈α∞would␈α∞subsequently␈α∞be␈α∞used␈α
by␈α
others.␈α
The␈α
payment␈α
should␈α
include␈α
compensation␈α
for␈α
risk␈α
as
␈↓ ↓H
␈↓ ↓Hwell␈α∂as␈α∂for␈α∂direct␈α∂costs.␈α∂Perhaps␈α∂a␈α∂company␈α∂contemplating␈α∂a␈α∂development␈α∂could␈α∂announce␈α∞it␈α∞and
␈↓ ↓H
␈↓ ↓Hannounce␈α∃the␈α∃risk␈α∃they␈α∃thought␈α∃they␈α∃were␈α∃taking.␈α∃Another␈α∃firm␈α∃who␈α∃thought␈α∃the␈α∀risk␈α∀was
␈↓ ↓H
␈↓ ↓Hover-estimated␈αcould␈αput␈αup␈αsome␈αof␈αits␈αown␈αmoney.␈αOtherwise,␈αit␈αwould␈αhave␈αto␈αaccept␈αthe␈αestimate
␈↓ ↓H
␈↓ ↓Hput␈α⊃forth␈α⊃by␈α⊃the␈α⊂developer.␈α⊂A␈α⊂feasible␈α⊂scheme␈α⊂might␈α⊂require␈α⊂considerable␈α⊂development,␈α⊂but␈α⊂the
␈↓ ↓H
␈↓ ↓Hgeneral␈αidea␈αis␈αto␈αencourage␈αnew␈αdevelopment␈αby␈αincreasing␈αthe␈αprobability␈αthat␈αsuccess␈αwould␈αlead
␈↓ ↓H
␈↓ ↓Hto␈α
profit.
␈↓ ↓H