Friday, 19 August 2011

The Part of Palm that Smartphone Companies Should be Bidding For

Anytime a CEO gets ousted in disgrace, his or her pet projects are vulnerable to a quick trip to the gallows if they falter.  Mark Hurd was the CEO who bought Palm, so it was at risk from the moment Hurd left.  HP's mobile device performance had not been good this year -- the Veer smartphone launched and vanished on the same day, and the TouchPad turned out to be a sales disaster.  If Leo Apotheker had chosen to invest further in the business, it would have turned into his responsibility.  It's far easier to just walk away.

You can make an argument that HP should have given the business more time, and it's a shame that we'll never get to see the Pre 3.  But Palm's sales have been troubled for years, and I think its fundamental mistake was that it tried to be too much like Apple.  From the start, Pre was aimed at the same users and the same usages as the iPhone (even down to a failed effort to tie the phone directly to iTunes).  HP proved that most people don't want to buy an incremental improvement to the iPhone that can't run iOS apps.

Then just for kicks, HP went and proved the same point again with the TouchPad.

The lesson to other mobile companies, I think, is that unless you're a low-cost Asian vendor, you need to differentiate from Apple, not draft behind it.

I'd love to see Web OS live on, but the hardware debacle makes that less likely.  As I mentioned the other day, licensees choose an OS because they think it'll generate a lot of unit sales for them.  Since Web OS couldn't do that for HP, who else would want to license it?

If you believe that every smartphone company needs to own its own OS, we ought to see a mad bidding war between LG, HTC, Sony Ericsson, Dell, and maybe Samsung to buy Web OS.  (The loser could get RIM as a consolation prize.)  Maybe a buyout will still happen, but I think HP has probably been quietly shopping Web OS for a while, and if there were interest it would have tried to close a deal before today's announcement.

(By the way, HTC, if you do buy Web OS, you should insist that HP give you the Palm brand name as well.  It's still far better known than the HTC brand in the US.  The same logic applies for LG.)

But I'm not persuaded that buying an OS is the right way to go for any smartphone company.  Turning yourself into a second-class imitation of Apple isn't a winning strategy, especially if your company doesn't know how to manage an operating system.  (Case in point, look what it did to HP.)  You can create great mobile systems without controlling the OS; all you need is a great system development team and the freedom to put a software layer on top of whatever OS you use.

That means the real crown jewel in the Web OS business unit is the system development people -- the product managers and engineers -- that HP just threw in the garbage.  In my opinion, that's the part of Palm that smartphone companies should be fighting for.

Tuesday, 16 August 2011

Google and Motorola: What the #@!*%?

It's two days later and I'm still confused.  When I saw the headline yesterday, my jaw literally dropped.  "Google bought who?  That's got to be a misprint.  They must have bought a mobile operator, like Sprint or something.  But Motorola?  Really?" 

Usually when a big tech merger happens you can see the logic behind it.  Even if you don't agree with the logic, you understand why they made the deal.  But in this case the more I think about it the more confused I get. 

Did Google buy Motorola for the patents?  If so, why isn't it spinning out the hardware business?  Or did Google buy Motorola because it wants to be in the hardware business?  If so, does it understand what a world of other problems that will create for Android and the rest of Google?  Seriously, if Google tries to integrate Motorola into its business we could end up citing this as the deal that permanently broke Google.

Why roll the dice like that?  Maybe I'm missing something, maybe Google has a screw loose, maybe both of the above.  Or maybe I'm wrong to look for airtight logic.  Companies sometimes make decisions on impulse, especially when they are under stress, and it's a sure thing that Google is under stress these days on IP issues.

So I have a lot more questions than answers.  My questions are about Google's intent, its next steps, and how other companies will react...


Why did Google do it, really?  The conventional answer is that Google wanted Motorola Mobility for its patents.  That's what Google itself implied, and Marguerite Reardon over at CNET agreed (link).  That might well be the explanation.  Om Malik had a really intriguing take: Google bought Motorola as a defensive move to prevent Microsoft from getting the Motorola patents (link).  And Richard Windsor of Nomura, who I respect deeply, said in an e-mail that this is all about the patents.  He predicts that Google's new patent portfolio will create a balance of power enabling Google to quickly force a settlement to the patent lawsuits against its licensees.

But if you wanted only the patents, I think you'd buy Motorola, keep the patents and then spin out the hardware company to avoid antagonizing your licensees.  Google says it intends to keep Motorola and run it.

Besides, as Andrew Sorkin pointed out in the New York Times, Google could have bought a different but also important mobile patent portfolio from InterDigital for about $10 billion less than Motorola (link).  Maybe there's some magic patent at Motorola that Google feels is worth $10 billion more, or maybe there are some terms in Motorola's patent cross-license agreements that Google desperately needs.  But again, if that's the case, why not keep the patents and resell the hardware business?

Unless Google is lying about keeping Motorola intact, I think Google intends to be in the mobile hardware business.  Which raises the next question...


Does Google know how to run a hardware business?  No, of course not.  The processes, disciplines, and skills are utterly different.  The same business practices that made Google good in software will be a liability in hardware.  Google's engineers-first, research driven product management philosophy is effective in the development of web software, because you can run experiments and revise your web app every day in response to user feedback.  But in hardware, you have to make feature decisions 18 months before you ship, and you have to live with those decisions for another 18 months while your product sells through.  You can't afford to wait for science.  Instead, you need dictatorial product managers who operate on artistry and intuition.  All of those concepts (dictatorship, artistry, intuition) are anathema to Google's culture.  Either Google's worldview will dominate and ruin Motorola, or worse yet the Motorola worldview will infect Google.  Google with Motorola inside it is like a python that swallowed a minivan.

To put it another way, I think Google has about as much chance of successfully managing a device business as Nokia had of running an OS business.

But the real question is, does Google realize that it doesn't know how to make hardware?  I doubt it.  Speaking as someone who worked at PalmSource for its whole independent history, an OS company always believes that it could do a better job of making hardware than its licensees.  It's incredibly frustrating to have a vision for what people should do with your software, and then see them screw it up over and over.  The temptation is to build some hardware yourself, just to show those idiots how to do it right.

I think maybe Google just gave in to that temptation.

But if Google really wants to sell hardware, that raises questions for the other Android licensees...


How will Google really manage Motorola?  Google says it's going to treat Motorola as an independent company without any special access to the Android team.  But what's the point in that?  Motorola hasn't exactly been dominating the mobile device world lately, so I find it very, very hard to believe that Google would buy it and leave it intact.  Wouldn't you want to have Motorola create special products that take advantage of the latest Android features?  Kind of like a flagship operation?  Then when you announce a new initiative at Google IO, you can have some nice new Motorola hardware ready to ship with it on day one.  Of course, the other Android licensees will be allowed to participate too.  They're welcome to run flat out to keep up with every Google software initiative, disregarding expense and business risk, just like Google's Motorola subsidiary will.

Which makes you wonder...


How will the Android licensees react?  I think we can safely disregard the positive quotes from the other Android licensees.  What would you do if your company depended utterly on Android, and Google called you up twelve hours before the announcement and asked for a quote?  Would you risk Google's anger by refusing to give a nice quote?  Of course not.

But would you honestly be happy?  Of course not.  In the last year, you gained share at the expense of Motorola.  Now instead of being a weak and failing vendor you can snack on, Motorola has infinite financial resources and cannot physically go broke.  Sure, I am happy to compete with that.

The other issue is the one everyone else has already pointed out -- even though Google says there will be a firewall between Motorola and Android, you suspect it'll be semi-permeable, meaning you'll always be at a bit of a disadvantage.

So what do you do?  A lot of people are predicting that Android could be in danger of losing licensees.  For example, Horace Dediu at Asymco drew a parallel to the Symbian consortium, whose members were uncomfortable because Nokia held the largest share of the ownership (link).  But when Symbian was launched, those companies were happy to sign up, despite the asymmetric ownership, because they thought Symbian was going to dominate the mobile OS market, and they were scared of Microsoft.  They dropped out only after it was proven conclusively that only Nokia was capable of making a Symbian phone that sold well in Europe. 

I can tell you from personal experience at Palm that licensees don't care about governance issues when they think your OS will help them sell a lot of units.  It's only after growth slows down that they get twitchy.  As long as Android continues to grow explosively, the licensees will be right there with it because they're terrified not to be.

Google probably knows the licensees can't go anywhere.  In fact, it has a history of treating them very roughly in private (check out the nasty tone in the private memos between Google and Samsung exposed by the Skyhook lawsuit here).  So in some ways the Motorola deal is just more of the same.

But there is still a risk to Google.  Android licensees will probably be more willing to talk to Microsoft now, and they might do a few more Windows Phone products, if only to get leverage against Google.  So Google has just thrown a lifeline to Windows Phone, which otherwise might have been headed for extinction if the first round of Nokia products failed.

This might also be an opportunity for other mobile platforms.  If there were any...


Is there a third path?  The Android licensees are probably pretty wary of both Google and Microsoft at this point, and may be wishing forlornly that there was a third alternative for mobile operating systems.

Unfortunately, I don't think there is.  The handset vendors' embrace of "royalty-free" Android strangled the other Linux mobile platforms.  TrollTech was bought by Nokia and then killed, while Access's evolution of Palm OS died for lack of customers.

There's speculation that HP might broadly license Web OS (link).  But HP has its own hardware conflict of interest (a much stronger one than either Google or Microsoft).  Far more importantly, keep in mind that mobile phone companies license an OS because they believe it's going to sell millions of units for them.  If HP, with all of its resources and channel presence and strong brand, can't sell significant numbers of Web OS phones, why would HTC or Samsung believe they could do it?

[Edit: In the original version of this post, I failed to mention MeeGo.  A couple of people have told me that was unfair, and I think they are right.  Based on past experience, I have a lot of skepticism about OS consortia, especially ones involving Intel.  But if MeeGo's ever going to get serious consideration from hardware companies, now is the time, and I should have acknowledged that.]

Hint to Android licensees: If you build up HTML 5 as a platform, you won't have to depend on anyone else's platform.  But in the meantime, your realistic choices are Android and Microsoft.

Speaking of Microsoft...


What will Microsoft do now?  Steve Ballmer faces a very interesting decision.  Windows Phone just got a boost because it's now seen as a more vendor-neutral platform than Android.  The door is probably open for Microsoft to build deeper relationships with Android licensees.  If Microsoft sill believes in its licensing model, it will focus on walking through that door.

But as others have pointed out, Microsoft's position is now a bit lonely in some ways.  The other major smartphone platforms (iOS and Android) now have captive hardware arms.  Even RIM has both hardware and OS, although it's been a while since RIM was held up as a model for others to emulate.  Will Microsoft feel exposed without its own hardware business?  And if it does feel exposed, will it buy Nokia?

I'd be very surprised if it did.  Buying Nokia would decisively end the Windows Mobile licensing business.  You'd be betting Microsoft's mobile future even more completely on the ability of Nokia to execute in hardware.  Besides, why buy the cow when you're already milking it?

I'd also like to think that Microsoft learned from the Zune debacle that it's not great at creating mobile hardware.

And then there's the fruit company...


What will Apple do?  Apple's history since Steve returned is that it doesn't react to competitors; it forces competitors to react to it.  Apple is brilliant at setting the terms of the competition so other companies are forced to compete on Apple's turf.  Everyone else is focused on building licensed commodity hardware, so Apple creates integrated systems.  Everyone else has optimized their supply chains to sell through third party retailers, so Apple creates its own stores.  Everyone else stopped making touchscreen smartphones, so what does Apple make?

You get the picture.  So I don't expect Apple to make any changes in response to the Motorola deal, but I would be shocked if Apple didn't have plans for changing the terms of the competition again now that Google is trying to build more integrated hardware and software.  There are all sorts of game-changing moves Apple could make -- do a much larger push in web services, create an iPhone Nano (fewer features and lower price), even create its own search engine or social network (potentially valuable just to make Google crazy).


What's next?

To sum it all up, it's impossible to predict what will happen.  Hopefully the new balance of power in patents will make the big lawsuits go away, although I doubt we'd see a resolution before the deal closes, and that could take many months.  If Google bought Motorola for the patents, it'll either sell the company or let it gracefully rot, and we'll go back to business as usual. 

On the other hand, if Google tries to integrate Motorola into its business, that's a noble mission, and I hope they'll succeed because the mobile industry needs more competition to Apple in systems design.  I dearly hope Google will take the challenge seriously and recognize that it'll need to make fundamental changes to its culture.  But those changes would be daunting even for a company experienced in mergers, and Google's never done a deal this big before.  I think the most likely outcome of the Google-Motorola merger is some flavor of train wreck.

I hope I'm wrong.

Sunday, 14 August 2011

WHAT DOES A WHOLE HUMAN BEING LOOK LIKE?

AND HOW TO BECOME ONE! ---- I wandered away for a few days to Santa Fe for a movie "fix": (Cowboys and Aliens--2 and a half stars---Rise of the Planet of the Apes---4 stars---Captain America --2 stars) --Began reflecting on the above questions----decided to pursue the answers by returning to Tierra Amarilla, NM to chat again with Paul Namkung---A living example. The landscape enroute is a joy to pass through--will show more of it later. It is Georgia Okeefe (famous artist) country--where she lived and worked. That's Ghost Ranch ahead on the right.

Down there is the little village I'm header for.

It made National news once as the focus of land grant fights---google Reies Lopez Tijerina for the full story. (still alive--and returned recently for a visit)

It's Saturday and again musicians work their magic.

Afterwards, some impromptu fun ---Lovely lady does the hoop--with amazing skill.


Then a second lady joins in with new tricks.

I gave it a shot----aaahhh wellll!


But here's what I came for----Paul sits down for another session---what I want to know is more about his "personality path"----what choices or experiences help nudge a person up the scale of being. About one person in a hundred becomes SELF ACTUALIZED---exhibits the quality of creative aliveness. (Want to know more?----scroll down---I have condensed Maslow's study of "whole" people---see how you stack up against the best that humanity has to offer---you may be higher than you think. I will also point to some role models. )

Paul is a delight to chat with---tells great stories----He is the eldest child---was a lifelong maverick, lover of music, fun and creative challenges. His interest were so broad that he neglected for a long time settling down to a career. Eventually became a social worker, couselor, program initiator. Along the way he built a house in the forest, raised pigs, chickens and rabbits, invented, manufactured, sold his drums and then settled here and started this coffeehouse. Says he's learned to enjoy the processes of life rather than end products.
RANDY PHILOSOPHIZES: As open and responsive as he was, I still come away not understanding why some people climb high on the ladder of being and most don't. I don't want to believe that it's genes but maybe it is. I speculate that a long series of tiny choices---small moments of curiosity/ creativity /courage build on each other---opening door after door of new experience / insight----making subsequent moments of them easier and more fun----activating a feedback loop--a self-enhancing spiral--- upwards---like evolution-- that may last a lifetime and giving to the world a polished, exciting, contributing personality. But I'm guessing! Perhaps my readers have a theory that explains advanced personalities.

Here are a few personalities, fictional and real that I think illustrate self actualization:

Zorba the Greek (movie)
Gus McCrae--(movie--Lonesome Dove)
Benjamin Franklin
Voltaire
Warren Buffet (see what he said today in the NY Times)

Below, I have summarized Abraham Maslow's study of "whole" people.

CHARACTERISTICS OF SELF-ACTUALIZED PEOPLE

1. HAVE MORE EFFICIENT PERCEPTION
Unusual ability to detect the spurious, the fake, dishonesty in personality
In general, to judge people correctly and efficiently.
They can see reality more clearly.
2. ARE NOT FRIGHTENED BY THE UNKNOWN
Tolerate, even enjoy ambiguity

3. ACCEPT THEMSELVES AND OTHERS
Self - A relative lack of overriding guilt, crippling shame and severe anxiety
They accept their own human nature in stoic style, their shortcomings and discrepancies.
Others - They also accept others with their shortcomings and discrepancies.

4. ENJOY THEMSELVES WITHOUT SHAME

5. LACK DEFENSIVENESS AND POSE
Distaste for guile, hypocrisy, front, face

6. EXPRESS SPONTANEITY - SIMPLICITY - NATURALNESS

7. ARE MOTIVATED BY AN URGE TO GROW (Versus deficiency motivation)
Living vs. preparing to live
They don’t strive, they develop
They attempt to grow to perfection - to develop more and more fully their own style.

8. FOCUS ON PROBLEMS OUTSIDE THEMSELVES
They are problem-centered rather than ego-centered.
They usually have some mission in life.

9. HAVE THE QUALITY OF DETACHMENT
They remain unruffled, undisturbed by that which produces turmoil in others.
They find it easy to be aloof, reserved, calm, serene.
They take personal misfortune without reacting violently.
They are more objective and therefore can concentrate better.
They don’t need others in the ordinary sense.
They are self-governing, self-disciplined.
They are the deciding agent rather than a pawn.
They have more free will.

10. HAVE A GREATER NEED FOR PRIVACY

11. ARE MORE INDEPENDENT OF CULTURE AND ENVIRONMENT

12. HAVE A CONTINUED FRESHNESS OF APPRECIATION
They count their blessings.

13. HAVE HAD A MYSTIC EXPERIENCE (a peak experience)
These are experiences, usually brief, of limitless horizons opening up to the vision.
The feeling of being simultaneously more powerful and more helpless than ever.
The feeling of great ecstasy, wonder, awe.
The loss of placing in time and space.
The conviction that something extremely important and valuable has happened so that
One is to some extent transformed and strengthened.

14. HAVE DEEPER FEELINGS OF IDENTIFICATION, SYMPATHY AND AFFECTION.
Despite occasional anger, impatience, disgust.

15. DESIRE TO HELP THE HUMAN RACE.

16. HAVE DEEPER, MORE PROFOUND INTERPERSONAL RELATIONS.
Capable of more fusion, greater love, more perfect identification.
Especially deep ties with fewer people
Circle of friends rather small

17. ARE DEMOCRATIC
Are friendly with anyone with suitable character, regardless of class, education, or race

18. CAN DISCRIMINATE BETWEEN MEANS AND ENDS, GOOD AND EVIL
They are clear in themselves though often their notions of right and wrong are not the
conventional ones.

19. ARE PHILOSOPHICAL

20. HAVE A NON-HOSTILE SENSE OF HUMOR

21. ARE CREATIVE

22. ARE RESISTANT TO ENCULTURATION
They transcend any particular culture.

Wednesday, 10 August 2011

The Case for Software Patents

It's become popular lately to call for the elimination of software patents.  Tim Lee at Forbes sounded the call last month (link), and this week Mark Cuban joined the chorus (link):
"Because of software and process patents any company could be sued for almost anything. It is impossible to know what the next patent to be issued will be and whether or not your company will be at complete risk. It is impossible to go through the entire catalog of patents issued over the last 10, 15, 20 years and determine which will be used to initiate a suit against your company."

I have a ton of respect for many of the people arguing against software patents, but I disagree strongly with their arguments.  I think software patents play an important role in encouraging innovation, especially by small companies.  The loss of them would make it harder for small companies to survive, and would discourage fundamental innovation in software.

The online debate about software patents is very contentious, and much of it focuses on philosophical issues like the nature of software and whether that's inherently patentable.  The debate also often gets mixed with the contention that all software should be free.  I'm not going to get into either topic; the arguments are arcane, sometimes quasi-religious in their fervor, and besides they've already been debated to death online. 

What I want to focus on is the broader issue of the economic role of patents and how that applies to software.  The patent system is designed to encourage innovation by giving a creator a temporary monopoly on the use of an invention.  Does that mechanism work in software?  What are the problems?  And what's the best way to fix them?

When you take that perspective, I think it's clear that there are some genuine problems with software patents.  (Actually, there are problems with patents in general, and software is just the most prominent example.)  But I think there are better ways than a ban to solve those problems.  To me, banning software patents to solve patent problems would be like banning automobiles to stop car theft.  The cure is far worse than the disease.


The value of software patents

Let me start with a personal example.  As I've mentioned before, I'm working on a startup.  When we brief people on what we're doing, one of the first questions we get is, "how will you prevent [Google / Apple / Microsoft / insert hot web company here] from copying you?"

A big part of the answer is, "we've filed for a patent."

A patent isn't magic protection, of course.  It might not be granted, and even if it's granted, patents are difficult to enforce against a really big company.  But it reassures investors, and more importantly if a Facebook or Google wanted to copy our work, the patent makes it safer and quicker for them to buy our company rather than just ripping us off.  So it helps to protect the value of our company.

Without the patent, I think it could be open season on us the moment we announce our product.

Advocates of eliminating software patents say there are other ways to protect software companies.  The first is that software can be copyrighted.  That's technically true, but the only thing copyright protects you from is word for word theft of your source code; it does not protect inventions.  For most software innovations, copyright is no protection at all. 

The second argument is that small companies should move quickly, so the big companies can't catch up with them.  The idea is that if you move fast enough, you won't need patents.  I think there's a consumer web app bias in that advice -- it works best for small apps that can be adopted quickly, or that have a strong social effect (so the user base is part of your competitive protection).  It doesn't work well for software tools that have a slower adoption curve.  The more complex and powerful the software, the slower the adoption cycle.  This is especially true for enterprise tools.  Without patents, those companies are exquisitely vulnerable to being ripped off soon after they launch, when they're just starting to gain word of mouth. 

So for companies creating new categories of software, and especially for enterprise software tools, I think patents remain the best (and really only) protection from theft.

But what about the damage being caused by abuse of the patent system?  If we keep software patents, are we then endorsing those abuses? 

I don't think so.  In the articles I've seen, there are two primary arguments for eliminating software patents: Trolls and patent warfare.  They need to be discussed separately.

Discouraging patent trolls.  The troll problem is something we all know about: patent licensing companies buy large collections of patents and then extort fees from companies that had no idea they were violating the patents.  That's the core of the problem Mark Cuban was talking about above, and it is outrageous.  These surprise lawsuits can have a devastating effect on smaller companies that can't afford to hire a lawyer to defend themselves.  Even if you're in the right, it can be so expensive to defend yourself that you just have to give up and pay the license fee.  That definitely has a chilling effect on innovation, it is contrary to the intent of the patent system, and therefore it needs to be restrained.

But I think the answer in that case is not to eliminate software patents; it's to restrict the right of "non-practicing entities" (patent trolls) to sue for patent infringement.  That would still have a financial effect on small companies -- in the case of my startup, it would make it harder for us to sell our patent if we wanted to.  But patent law exists to protect the process of innovation, not to protect inventors for their own sake.  If you can't put your patent to good use, you aren't contributing to the public good and you shouldn't get the same level of protection as a company that has built a business around a patent.

Patent warfare is a very different issue.  Several large tech companies are using patent lawsuits to slow down competitors and pull revenue out of them.  Eliminating software patents would not stop these wars; they're also based on hardware patents, antitrust law, and any other field of law that the companies can apply.  It's like one of those cartoon fights in a kitchen where a character opens up a drawer and throws everything inside it. 

 
Yeah, like that.

The underlying problem here isn't about patents; it's about the use (and abuse) of the legal system as a competitive tool.  I've had more involvement in tech industry legal wars than I want to think about: I gave depositions in the Apple-Microsoft IP wars, and I testified in Washington in the Microsoft antitrust lawsuit. The overall experience left me plenty cynical about the legal system, but it also persuaded me that big tech companies are perfectly capable of taking care of themselves in court.  They do not need our help.  You should think of lawsuits as just another way that tech companies express love for one-another.

I'm somewhat sympathetic to the Android vendors being sued by Apple, but a lot of it is their own fault.  HTC in particular has no one to blame but itself for its situation, in my opinion.  HTC was one of the first companies in mobile computing, creating PDAs for Compaq and early smartphones for Orange and O2.  I've got to believe that if HTC had been thinking clearly about patents, there are a lot of fundamental mobile inventions it could have patented.  Then it would have had a big enough patent portfolio to force a cross-licensing deal with Apple.

The same thing goes for Google.  When it decided to enter the mobile OS business, it should have expected that it would end up at war with Apple and Microsoft (heck, anyone could have predicted that).  Google should have bought up a big mobile patent portfolio (like maybe Palm's) back when they were inexpensive.

Are we obligated to change the patent laws just because Google and HTC were careless?  No.  Is it in the public interest for us to intervene anyway?  I doubt it.  Here's how the mobile patent wars will play out:  The big boys will do a whole bunch more legal maneuvering, they'll scream bloody murder, and in the end one of them will write a check to the other.  Then they'll all go back to work.

My advice: If it bothers you, stop reading the news stories about it.  Or sit back and enjoy it as theatre.  It's hardly an important enough issue to justify stripping the patent protection from every small software company in the US.


A world without software patents

If you want to understand the importance of software patents, go back and talk to the first people who patented software.  That's what I did.  Two years ago, I corresponded with Martin Goetz, holder of the first software patent (link). 

Goetz was a manager at Applied Data Research, one of the first independent app companies in the 1960s.  ADR made applications for mainframes, and IBM copied and gave away a version of ADR's Autoflow application (the first commercially marketed third party software app).  ADR might have been wiped out, but it had patented Autoflow, and it was able to successfully sue IBM.  That lawsuit, plus a related one by the US government, laid the foundations of the independent software industry by forcing IBM to stop giving away free apps for its mainframes.

The lawsuits involved a lot of legal issues, including antitrust, so you can't say that software patents alone led to the birth of the software industry.  But I think it's clear that patents helped codify the value of software independent from hardware.  If that value hadn't been recognized, the antitrust suit would have been meaningless because there would have been no damages.

So antitrust and patent law have worked together to help protect software innovation.  Antitrust helped to restrain big companies from giving away free competitors to an app (although that protection has eroded lately), while patents restrained big companies from copying apps directly.  It's like a ladder.  If you pull out either leg, I worry that it won't stand.

In his online memoirs (link), Goetz makes the case that application innovation was slow and unresponsive to users in the decade before software patents, and accelerated dramatically in the decade after.  I agree.  That is exactly the sort of innovation that patent law was meant to encourage, and so I view software patents as a success.

Without software patents, I think it would be far too easy to go back to the bad old days when the big computing companies walked all over small software companies, the software industry consisted of only consultants and custom developers, and software innovation moved at a much slower pace.

_____

More reading:  Software entrepreneur and investor Paul Graham wrote a nuanced and detailed take on the subject here.  Some of his conclusions differ a bit from mine, but the essay is well worth reading.

Monday, 8 August 2011

FOUND: A HERO IN THE HINTERLANDS

HEROIC DEEDS ARE USUALLY ONE-SHOT EVENTS, BUT I CALL YOUR ATTENTION TO AN HEROIC LIFESTYLE; A MAN WITH THE COURAGE TO RESPOND TO HIS FASCINATIONS OVER THE LONG HAUL. Word reached me of such a man---ensconced--in the tiny village of Tierra Amarillo, New Mexico---about a hundred miles northwest of Santa Fe. People are drawn from all over by the charm of his character and the good things to be found at his coffee shop. This crowd is assembled to hear music by an impromptu band---every Saturday 2 to 5.







That's him on the right playing a drum of his invention. Sounds great---like a deep Conga. Here is a youtube video of them playing: http://www.youtube.com/watch?v=XFm3LXrYEDA













Then he switches to his trash can base (fiddle?). It sounds exactly like one---with the same range.







The coffee house is named THE THREE RAVENS------and here they are on the porch roof.







His 4000 sq foot building-----Once a derelict scheduled for bulldozing---but he says he loved it when he saw it---bought it for a song---and spent the next nine years renovating it. It cost about $250,000 to bring it to this condition----and he did so without borrowing money. Mostly he paid for it by selling his wonderful drums at Craft fairs. (he charges about $350 apiece)







The heart of the coffee shop---with a range of sandwiches, goodies and coffee.







Of course I want the story---and on this day I caught him out back, unloading wood. Meet Paul Namkung---the personality that has breathed life and purpose into a dying town. He agrees to an interview.







Makes his drums here: fascinating story with almost metaphysical implications: He saw a guy drumming on an orange crate in SanFrancisco---sounded good---wondered if he could improve on the idea----did experiments with wood and sounds---found a special North forest wood with a super good sound, discovered the perfect thickness--sound holes etc---constructed to also be a seat for the drummer. They are a work of art and lots of fun to play on.







He demonstrates for me.







Then settled himself for an extensive Q&A. Here's the story in a nutshell: 72 yrs old, born in Korea---lived in many places the world round----China, Singapore, Indonesia---settled in the Bay Area---had a 30 yr career as a social worker/counselor----invented his drum and began to sell them at Craft fairs---met a lady who showed him the charms of Northern New Mexico---then-While touring one day, saw this building and immediately decided to sink his roots here. Living modestly, using his social skills to blend with the local culture, (not everyone can move into a "alien" community and win the affection of neighbors) he began the 9 yr task of renovating the building. About 2 years ago he conceived the idea for the coffee shop---lots of people were drawn into the enterprise---now it has the feel of a cheerful, bustling restaurant













Paul working in his office--pulling up something to show me. I noticed that members of his "team" flutter around him like friends rather than employees. A lady brought him that cup of coffee unasked. Charismatics are advanced personalities that draw others near and "infect" them with their magic. To hang around one is to become one yourself. (from the bible: And the crowd perceived that they (the desciples) had been with Jesus)







As we chatted, I noted that he interacts with about everyone who walked in---cheerful banter mostly. The world seemingly has beat a path to his door. One casual visitor was the chief justice of NM Supreme court---whom paul teased a bit---then ended up receiving an order for a musical instrument.







I gave the drums a shot----Hey---I'm pretty rhythmic. Maybe everyone should have music in their life.







Saw this on the wall of an old building in the area----and suddenly--BINGO---my thoughts came together for this entry: Paul has no such difficulty planning his day----ENJOYING THE WORLD IS HIS WAY OF IMPROVING THE WORLD.








RANDY PHILOSOPHIZES: He is living proof that FINDING OUR OWN HAPPINESS IS THE BEST WAY TO CONTRIBUTE TO THE HAPPINESS OF OTHERS. Drums--led to the Lady--led to the tiny village/ big building---to the Coffee Shop---to other artists and musicians (three other craftsmen/artists have since moved in, bought houses. Here is an art-colony-in-the-making. Paul invites all to come feel the village---see if it "speaks" to you. The famous artist, Georgia O'keif settled in just down the road at Abique, NM. For more--click here:

http://www.worlddrums.org/coffeehouse.php



















Wednesday, 3 August 2011

Quick Takes: Logitech's Misstep, Nokia's New Names and Fonts

Short thoughts on recent tech news...


Logitech strays from the path

I haven't written much about Logitech here, but they've long been one of my favorite tech companies because they have a history of breaking all the rules of Silicon Valley:

--The Valley says you can't make money in commodity hardware, but Logitech makes good profits from the most commoditized bits of the computer industry.

--The Valley says you especially can't make money in low-end consumer hardware, but that's where Logitech thrives.

--The Valley says that if you want to make money in hardware, you need to be based in a low-cost part of the world like China.  But Logitech is Swiss-owned and headquartered in Silicon Valley, two of the highest-cost places to do business in the world.

Logitech succeeded by picking well-established markets like keyboards and webcams where its skills in design, user experience, and added-value features let it charge a bit more than the commodity players.  As the folks at Logitech will tell you, "we're chefs, not farmers."  In other words, we don't create new markets, we come to existing markets and do an especially nice job of rearranging the ingredients.

But Logitech's financial performance hasn't been great for the last two years, and the company's most recent quarter was a loss.  The disappointing earnings report stood out to me because Logitech put much of the blame on its Google TV product, which apparently had apocalyptic negative sales last quarter (more returns from retailers than shipments) (link).  Apparently somebody at Google convinced Logitech to do some farming, and the company is paying dearly for it. 

I'm usually an advocate of companies taking risks and pioneering new markets, and I think that's something Logitech has the skills to do if it's careful.  But in this case, it chose a terrible target: the uncertainties of a new market, but with a user experience constrained by Google's software.  So Logitech took on the risks of farming without the ability to fully apply its own strengths.  Logitech was more or less a passenger on Google's boat.

The lesson, obviously: Be very careful when you step away from your proven strategy.  Oh, and never trust Google to develop a new market for you.


Good luck naming your phones, Nokia (again)

Nokia announced that it has changed the naming system for its phones, going back from letters to numbers (link).  The last time Nokia changed its naming, five years ago, I wrote a piece saying why technology naming schemes eventually break down after about six years.  This morning I thought about updating the post, but actually I think it's still valid as-is, except that naming schemes now apparently last only five years.  Here's a link to the article, so you can judge the rest of it for yourself (link).


Font games

Speaking of Nokia, there are few things more embarrassing for a company than announcing to the world that you have chosen a new font for your corporate communication.  Making font and logo changes is often interpreted as rearranging deck chairs on the Titanic -- "we can't fix our fundamental problems but by God at least we'll fix the font!"  That's unfair, of course; Apple changed its logo in the middle of its rebirth, ditching the six colors, and it turned out just fine.  So I didn't blame Nokia when it announced on March 25 that it was moving to a new font (link).

But I'm surprised that more than four months later, Nokia's old font is still splattered all over its web pages.  You can find the new one in some spots, but a lot of website navigation, headlines, and even new product announcements are in the old font.  Here are some examples (click on the images for a larger view):

Nokia Conversations (official company blog), August 2, 2011.  Note the use of the old font to announce the company's newest product.  That means the use of the old font isn't limited to legacy bits of the website that haven't been converted yet.

Nokia Press website, August 2, 2011.  New and old logos together on the same page.  That's got to annoy the corporate branding folks.

Nokia UK home page, August 2, 2011.  New font used for the headline, but the old font is used elsewhere.

Nokia US home page, August 2, 2011.  Old font almost everywhere.  Well, you kind of expect Nokia's US site to be behind the times.

Nokia Finland home page, August 2, 2011.  The greatest use of the new font -- except when they mention Ovi.  Freudian slip?


I feel childish and petty for picking on Nokia about a little detail like this.  Fonts stand out to me because I used to run a font company, but I know most people don't even notice them.  Nokia has much bigger problems to solve. 

However, four months is more than enough time to switch over to a new font, especially in newly-created headlines.  Since the criticisms about Nokia's smartphones often center on inattention to detail and slow execution, you'd think they would want to execute crisply wherever they can.  In its March announcement, Nokia wrote that the new font is important because "the letters flow into each other somewhat, creating the impression of forward movement." Since the old font lingers, does that create the impression that Nokia's not moving forward?

Tuesday, 2 August 2011

LAST DANCE AT LITO'S BALLROOM

THIS WAS A DAY OF STRANGE EVENTS AND FEELINGS---I've recorded it as best I can with pictures. I show the ending first to suggest how serendippity pulls me where she will. This is Carmalita---I was "destined" to meet her before the day was over--in a very strange place.
I saw this and got it into my head to go to the other side of the mountain where that rainbow ended.

It's not easy to get there---first I drove the length of this valley---I take my rig with me---I'm not coming back.

I cross a 9,800 ft pass.

On the far side I'm attracted down this gravel road--- something immense on the horizon is drawing me.

A home-made sign gives me pause. I think it says LAND OF DEATH Zapata lives. A warning?

There's the immense thing that's drawing me. And a village of some sort at it's base. Now I'm intrigued.

Nary a soul in sight---an old old spanish village.

Still, not a soul. Houses everywhere vacant.


Abandoned---like the folks just walked away.

Then out of the blue---this strange sight---a little old lady just staring into this unusual building. Of course I want to engage her. I turn to get my hat and turn off my engine----and suddenly she's gone. Must have gone through that doorway. I'll go find her!


Can you read it? LITO'S BALLROOM----can you believe it---a ballroom in a tiny village.

I'm surprised to find the door slightly jammed. I pushed it open and picked my way through the entryway.

Whoa! What has happened here? A major collapse. I see no sign of the lady.

A bandstand stage---pieces of an old piano.

Then on the far wall---Carmelita----that's the name I've given her. With no one to tell me what happened here----I shall have to improvise: Once this was a lively, thriving, frontier town of happy people who loved to dance and so they constructed a ballroom. The best dancer in the village was Raul----devlishly handsome---and when he took the floor---all the ladies swooned. Carmelita especially lost her heart to him---but alas, she had no talent for dancing and just sat and yearned as Raul swirled the other girls round the dance floor.

Desperately in love--she turned to the holy mother for help. A nearby grotto captures the moment Carmelita begs for the gift of graceful dancing. And in an instant knew in her heart the request was
granted-----that her feet and body were now infused with the fire and skill and rhythm of the gypsies. She made herself a dancing dress and when next the ballroom filled on a snowy winter night, she boldly moved to its center and while curious eyes marveled--- began to sway in perfect rhythm to the music. Alone on the dance floor--so graceful that Raul was smitten. Moving onto the dance floor like a toreador, he embraced her and together they did the dance of love. The band seized the moment to play flamenco music. The couple began to stamp----first one and then the other---then both together in such wild abandon that the walls and ceiling began to shake---the crowd cheered---the couple stomped faster and faster---Suddenly a loud crack and timbers began to fall. The people all ran away but Raul and Carmelita---continued to dance. That was the last the town ever saw of them. Some say they slipped out the back door and ran away together.

Bodies were never found. But as a tribute to the miracle dance they witnessed that night---the townspeople placed the shoes they were wearing on the spot the couple danced the flamenco so fiercely that the roof caved in. And there they remain to this day. Some say that after a long happy life together both passed on---but on special occasions---Carmelita's spirit returns to this ballroom to give thanks again to the virgin mother for her miracle.

Search as I may, I never found the lady---but I'm thankful she led me to this dramatic site.