INTELLECTUAL VALUE
by Esther Dyson

Wired 3.07 (1995)
(excerpt)
"In a new environment, such as the gravity field of the moon,
laws of physics play out differently. On the Net, there is an
equivalent change in "gravity" brought about by the ease of
information transfer. We are entering a new economic
environment - as different as the moon is from the earth -
where a new set of physical rules will govern what intellectual
property means, how opportunities are created from it, who
prospers, and who loses.

Chief among the new rules is that "content is free." While not all
content will be free, the new economic dynamic will operate as
if it were. In the world of the Net, content (including software)
will serve as advertising for services such as support,
aggregation, filtering, assembly and integration of content
modules, or training of customers in their use. Intellectual
property that can be copied easily likely will be copied. It will be
copied so easily and efficiently that much of it will be distributed
free in order to attract attention or create desire for follow-up
services that can be charged for. Advertising has a poor
reputation in many quarters because most advertising is
designed for a broad market. But in the one-to-one world the
Net promises, advertising will often be tailored and of higher
quality. Those with more money to spend will get higher-quality
advertising.

What should content makers do in such an inverted world? The
likely best course for content providers is to exploit that
situation, to distribute intellectual property free in order to sell
services and relationships. The provider's vital task is to figure
out what to charge for and what to give away - all in the
context of what other providers are doing and what customers
(will grow to) expect.



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