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But the inducement law failed to appreciate some of the other differences that make the software world special and thus led directly to the explosion in the number of P2P technologies. In understanding why, three other physical world assumptions come into play.One is that it is expensive to create distribution technologies that are capable of vast amounts of infringement. Of course in the physical world, the creation of such technologies, like printing presses, photocopiers, and VCRs required large investment. Research and development, mass-manufacturing, marketing and delivery all require massive amounts of cash. Thus, the law came to assume that the creation of such technologies was expensive.That led directly to the next assumption – that distribution technologies are developed for profit. After all, nobody would be investing those massive sums without some prospect of a return.Finally comes the fourth assumption: that rational developers of distribution technologies won't share their secrets with consumers or competitors. Since they needed to recoup those massive investments, they had no interest at all in giving them away.
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Topic: Does the cartel just have the wrong business model? (Read 767 times)
