Sunday, May 6, 2012

Business Cloning & Free Markets

Hi Tech entrepreneurs whose MO is to steal others people's ideas and capitalize on them have gotten together to complain about people who steal other peoples ideas and capitalize on them.

"One media executive recounted learning about the launch of photo-sharing app Color just before boarding a flight to Shanghai, where he was to meet with Chinese entrepreneurs. The following morning, the second entrepreneur who pitched him presented a complete Color clone."

This is nothing new.  People did this when I sold baskets made in China.   And this practice started long before there was a China.  Only people in the Silicon Valley believe the history of the world started the day they wee born.

Ideas are always the result of a dialectic in which there is a thesis, antithesis and a synthesis.  Various actors feed off themselves.  Countless people were addressing the idea of microcomputers and stealing each others idea.  the one who marketed best won, and that is Apple.

In USA, a state that has an organizing principle grounded in violence, to stop this non-event from happening we have something called "intellectual property rights" (IPR)  that requires 4th and 5th parties to pay 3rd parties to involve themselves in marketing challenges between 1st and 2nd parties.

The 4th and 5th parties are you and I, the 3rd parties are the govt and their minions in the legal profession, the 2nd party is the "copycat" and the first party is the "originator."

If the search engine was patented, we'd be stuck with yahoo.  Google outclassed Yahoo, with an idea first thought up by the fellow that went on to start Baidu in China.  What if he had patented his idea, and stopped us from having google, and forcing upon us the Chinese version of google?  (I understand google's competitive edge is its secret logarithms, and not IPR, but my point stands.)

It is not just a matter of design, marketing, customers matter too.  Clearly Apple has superior design, but that is because they care about customers, something Microsoft, whose business tracks govt growth, never had to care about.  IPR allows the people the market does not care for to force the market to buy from them.  IPR is essentially a govt granted monopoly.  And if you resist, the govt applies pressure, up to and including violence against resistors.

In a free market people do copy others, but those who best serve the customers wins.  This is good.  This is the is idea that so many people whose lives are oriented around money, who we call capitalists, are so concerned with... they fear the part where they may have to serve the customers.  They would rather you and I pay the government to destroy anyone who would better serve their customers.  Why should we pay money to keep ourselves from access to more better cheaper faster? I would like to hear and answer to that question.

If we want the best on offer to the most, we must get rid of IPR.  Copycats already exist, so we'd have nothing new.  What we would see, in in the hidebound industries like medicine and law and banking and education remarkable improvement.

So what if someone cloned Color?  Anyone can clone anything.  The next step is to try to get customers.  Good luck with a "me too" offer.

Feel free to forward this by email to three of your friends.


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