Monday, February 28, 2011

Designer Royalties

What the record companies and publishers do, is say, invest $5000 (or $5 million) getting a book or CD out in the market place... then the first $5000 (or whatever) the design earns in royalties for the designer, the publisher keeps to pay back the costs of getting the work out there...  it’s an illustration of how as a company gets bigger, it starts calling more shots.  The implicit reverse is, dsigners get a very good deal working with small and start -up compaines, with the straight royaltiy deal. 

What then begins to happen, and pharmaceutical companies do a versiuon of this with the "costs" of producing a drug, is they begin to live ever more lavish lifestyles, charge it off to development, and then claim these costs are critical to development.  We just absolutely must have chilled caviar on the private jet taking us to vail for our corporate retreat.  Otherwise there will be no new drugs.

With intellectual property rights, costs go up, quality goes down, options are limited, we are burned.


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