On Tue, Oct 14, 2003 at 09:01:50AM +0200, Peter Svensson wrote:
> OK. I think some of this might be solved.
> 1. I'm out of my league here, but I wonder how Redhat, Mandrake et.al. pays
> *their* license fees since the stuff can be installed from thos installs (At
> least MPEG2). Anyone with more info on this?

The problem is how the fees are collected. I've worked in some
industries where this type of thing has to be dealt with and the
problem is that the fees are twofold. First, there is an upfront
license fee, (for the sake of argument, say it's $100,000) and then
there is a per-unit fee (say $3)

You'd at minimum need to raise that much money just to get going; and
you'd need to do it for each encumbered codec.

> 2. Most probably one would have to disable burning. It is still legal to
> make personal copies of stuff you own,however isn't it?

That's not how the law works, unfortunately. Thanks to laws in Europe
and the USA, they can sue first and wait and see if you run out of
money. 

> We could have different market propositions; Just an installed and
> essentially unconfigured system for the lazy tweaker, Games system with USB
> set up and tested with two (or more?) USB gamepads, Audio system with lots
> of Webradio and tons of free content (Classical music, for instance)
> pre-installed + good cables for 6+1 dolby and so on...

It's possible, but very difficult, unless we have it download
mplayer/xine/etc when it's first turned on, but even then... I don't
know if that will be considered circumvention.

> The main software is free (As is Redhat - again my prime example) but
> install CD's are sold, and pre-installed system of diverse flavors are sold.
> And no, it won't undercut its own market, since the customers different in
> the respective cases.

Well, being an Economics student, I can tell you this; what will
happen (assuming there is some popularity) is that the company who can
lower their per-unit costs the most will own the market. Because
Freevo is free, this is a perfectly competitive market and in the long
run the profit will be equal to a normal rate of return. :)


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