[CS-FSLUG] Proprietary Software: Capitalism or Greed?

[Don Parris]

On 3/26/06, Robert W. <robertwo at insightbb.com> wrote:
> On Mon, 20 Mar 2006 10:55:39 -0500 Don Parris <dcparris at carolina.rr.com>
> wrote:
> > Recently, Eben Moglen was quoted as saying that proprietary software
> > wasn't  really about capitalism, but about greed.  While that sounds
> > good, what is the  basis for such a statement?  The statement is
> > important because it cuts to  the heart of the defense of proprietary
> > software.
> [snip...]
>
> The dictionary defines capitalism as follows:
>      An economic system in which the means of production and
>      distribution are privately or corporately owned and development
>      is proportionate to the accumulation and reinvestment of
>      profits gained in a free market.
>
> I've never heard anyone argue with the first part. Even code released
> under the GPL is privately owned by the original author. Proprietary
> software, obviously, also falls under private ownership as well.
>
> Most proprietary software advocates like to ignore the second part,
> though. The profits gained from a free market follow the law of supply
> and demand. If your supply outpaces the demand, then prices fall. When
> your supply trails the demand, prices rise.
>
> The supply of software is nearly infinite. One can make a perfect copy
> of any software. And one can continue making perfect copies without
> degrading the original. So as the supply approaches infinity, the price
> drops closer to zero.
>
> That is why proprietary software companies can not survive in a
> capitalist economy. They produce a nearly valueless product.
>
> A proprietary software license is an attempt to artificially reduce
> supply so prices rise. In other words, proprietary licenses counteract a
> free market. And, therefore, goes against the very definition of
> capitalism.
>

Interesting, and I agree.  Essentially, it's a form of price gouging. 
Would that be a fair assessment?

Don
--
DC Parris GNU Evangelist
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