Can “open source” and proprietary players in the software business play nice together? And why should entrepreneurs and small businesses care either way?
Under open source, program source code is made freely available for use or modification by users and developers with minimal restrictions. In contrast, proprietary software is owned by an individual or company, and its use is controlled by that owner, such as through contracts and licensing agreements.
The open source vs. proprietary software debate has raged on for some time, and the fight is always passionate. But in the marketplace, some businesses and individuals have found value in proprietary software, others in open source software, and still others in both, or mixed software.
This shows that the market works. Provide a level playing field, and let competition and choice reign.
But the importance of intellectual property rights cannot be denied, nor should they be undermined. Open source advocates often have a tough time recognizing this fact of economic life. The world – including the software world – would be far, far less innovative, inventive and wealthy without strong IP protections. Indeed, without IP rights and protections, we would be living in relative squalor.
So, the March 30 announcement that Microsoft and TomTom, the Linux-based, Dutch GPS navigation maker, settled their patent-infringement cases filed against each other is a hopeful sign.
According to a release, Horacio Gutierrez, corporate VP and deputy general counsel of Intellectual property and Licensing for Microsoft, said: “We were able to work with TomTom to develop a patent agreement that addresses their needs and ours in a pragmatic way. When addressing IP infringement issues, there are two possible paths: securing patent coverage or not using the technology at issue. Through this agreement, TomTom is choosing a combination of both paths to meet the unique needs of its business, and we are glad to help them do so.”
And Peter Spours, director of IP Strategy and Transactions for TomTom, stated: “This agreement puts an end to the litigation between our two companies. It is drafted in a way that ensures TomTom’s full compliance with its obligations under the GPLv2, and thus reaffirms our commitment to the open source community.”
For good measure, there reportedly is an agreement not to sue end users in the settlement, which is an obvious plus in terms of providing certainty in the marketplace.
But based on assorted responses to this settlement, there are many in the open source community who are not pleased. That’s unfortunate. Providing a clear and stable intellectual property system is critical to innovation, entrepreneurship and economic growth. Gutierrez is right – either respect property rights or work around the technology.
After all, patents spur innovation in two ways. First, they incentivize invention and innovation by assuring that inventors reap the rewards of their inventions. Second, they in no way stop others from finding better ways to better serve the market.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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