Re: Responsibility, Copyright and New World Order

On Wed, 25 Aug 1999, Albert Henderson <noblestation[_at_]compuserve.com> wrote:
>
> On 24 Aug 1999, Karsten M. Self <kmself[_at_]ix.netcom.com> wrote:
> >
> > RedHat's own IPO comments identify its primary assetts as goodwill
> > and existing service contracts, not the traditional concept of
> > intellectual property as such in software.
> >
> > I expect Mr. Henderson will have difficulty wrapping his mind around
> > these concepts.
>
> Not really. What you are saying is that Red Hat's major
> assets disappear every night at quitting time.

Though I haven't inquired on this specific issue, I'm pretty sure the existing service contracts are filed on premesis and are not left to scatter to the four winds.

> The merest employee/employer gripe can send it scattering to the
> four winds in the worst case scenario. Employees have minds of
> their own, you know. So do customers. Service contracts are only
> as good as the latest service.

You could make the same argument for a bank, any other software consultancy (though this is only a portion of RH's business), a law office, an accounting firm, an educational institution, a magazine publishing house. The fact is that RH is in no better, or worse, shape than any of these types of businesses. Partners or staff may leave to found their own firms, but they need to build up a similiar level of competence, name recognition, and goodwill to the parent company. Goodwill is neither made nor lost in a day (Barrings Bank, BCCI, and others being exceptions that prove the rule).

Similarly, a publisher's past works aren't going to do it much good if it cannot keep soliciting and selling new materials. Even proprietary software companies have had to face this fact. Computer Assciates bought Ingress (a database company) several years ago. Virtually every programmer and engineer walked out of the office that day. News reports said there weren't enough technicians around to _shut off_ the computers. CA has since been listed as one of the best companies to work for several years running in several industry magazine polls.

We're all dependent on goodwill, Al. All of us. Really. Scary thought, isn't it?

-- 
Karsten M. Self (kmself[_at_]ix.netcom.com)
    What part of "Gestalt" don't you understand?

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