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Blog Watching The Business Case for Open Hardware Unfold
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  • Author Author: DaveYoung
  • Date Created: 5 Oct 2012 4:28 PM Date Created
  • Views 703 views
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  • Comments 6 comments
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Watching The Business Case for Open Hardware Unfold

DaveYoung
DaveYoung
5 Oct 2012

image

“What designs would you open if product sales were your primary source of income?”

 

The Open Hardware Summit was held last week, and I had the pleasure of attending.  The principles of open licensing are simple: share all design files into the public domain and place no ownership or restrictions on the technology, allowing the community to learn from and build on it without wasting time 'reinventing the wheel.'

 

The reason I was so excited to attend OHWS was the license's requirement disallowing the use of a non-commercial clause.  This clause means that the designer cannot limit others' use of the design files for commercial purposes.  Many people worry that a design can be copied as-is and produced at a lower price than the designer offers thanks to reduced R&D costs. I am not yet sure how valid the concern is, however the outcome is currently being defined which makes for a very exciting time.

 

There are many companies that embrace the open source approach with all of their designs.  By dumb luck I sat next to Nate, CEO of Sparkfun on the flight back to Denver.  When asked why he gives designs away, he said that it started in order to make customer service easier and better.  From there, they continued opening designs because they understood that they would be reversed engineered even if closed.  He and his team use the knowledge that the competition is close on their heels to drive them to innovate faster and provide value outside of the physical product and price.  Talk about motivation!

 

There are others that find deviations from the OHW license as something to consider.  Chris Anderson from DIY Drones said in his keynote address that there are many varying uses for opening designs depending on different businesses.  Marco Perry from Pensa spoke about his company's move towards opening some designs while recognizing there are many applications that will never work with any open license.  Marco was the source of my favorite quote from the event, saying People copying you is a business problem, not an open source problem.

 

As open licensing becomes used more often in business, there are some that find the completely open approach to be a risk to their bottom line and are becoming more closed.  Bre Pettis from Makerbot gave a talk on the challenges that they have seen in people using their own designs to undercut them, and why they decided to close parts of the most recent Replicator 2.

 

I must admit that I see this almost like a movie playing out since the entire conversation will be over soon.  The time it takes to reverse engineer a design is getting shorter. Low-cost manufacturers are reaching markets faster and faster with knock-offs.  In the end, closing a design will only prevent your customers from having it as the competition will have figured it out on their own.  But until then, my favorite question to ask people in the industry will still be, “What designs would you open if sales were your primary source of income?”  

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  • DaveYoung
    DaveYoung over 13 years ago in reply to Former Member

    G.S.: That's a great point, a patented design that is reverse engineered (or simply lifting the IP off the patent) would open up the offender for litigation.  However litigation can be much more expensive and time consuming than just aquiring the patent.  If an inventor knows he or she doesn't have the money or stomach for litigation, a patent's value is reduced to either  (1) A deterrent to potential infringement or (2) increase the value of the company for possible aquisition by someone with the resources for litigation.  But as you point out, each situation needs to be evaluated individually.  Thanks!

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  • Former Member
    Former Member over 13 years ago

    Nice article. The business case for Open Design can be compelling, but it's worth noting that concerns about reverse engineering only apply to some types of intellectual property. Reverse engineering a patented design, for example, could make one liable for infringement. Patenting isn't possible for many (most?) designs, but it should be considered before automatically adopting an open policy.

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  • DaveYoung
    DaveYoung over 13 years ago in reply to gervasi

    As I understand it, if the designer wants to use the open source license, logo, etc... the non-commercial clause applies.  I suppose if someone put years of research in, they probably wouldn't open it up. 

     

    I think the OS movement is about opening everything possible to allow others to learn from the design and not have to bother with patents and lawyers.  In the end, everyone understands that it is the designers' choice to keep a design open or closed (although I've noticed hints of stigma in the community when a design is not opened).

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  • gervasi
    gervasi over 13 years ago

    Does this only apply to simler designs?  If you put a year of research into something, it seems reasonable to keep it a secret. If someone wants to develop from it, you can license it to them.

     

    I know this is a moot point b/c when we talk about circuit boards, there's usually not years of research.  Usually we're connecting parts that may have taken years of research.  It's more common in the software world. 

     

    I the open-source movement about opening all designs or just ones that really don't merit secrecy? 

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  • DaveYoung
    DaveYoung over 13 years ago in reply to DAB

    Good call on the continuous innovation.  Like Nate's team recognizes, they've gotta move quickly!  And I had a blast in NYC last week at both events.  Looking forward to it next year!

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