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From: terry@cs.weber.edu (A Wizard of Earth C)
Subject: Re: distributing linux on floppies
Message-ID: <1992Oct8.235813.5776@fcom.cc.utah.edu>
Sender: news@fcom.cc.utah.edu
Organization: Weber State University  (Ogden, UT)
References: <1992Oct7.164402.29427@uc.msc.edu> <1992Oct8.200527.1567@fcom.cc.utah.edu> <3928@ra.nrl.navy.mil>
Date: Thu, 8 Oct 92 23:58:13 GMT
Lines: 87

In article <3928@ra.nrl.navy.mil> eric@tantalus.nrl.navy.mil (Eric Youngdale) writes:
>In article <1992Oct8.200527.1567@fcom.cc.utah.edu> terry@icarus.weber.edu writes:
>>In article <1992Oct7.164402.29427@uc.msc.edu> fink@et.msc.edu (Paul Fink) writes:
>>>
>>>I think it might be more appropriate for linux distribution to be done
>>>by a user group rather than a for profit company.
>>
>>Not only appropriate, but the only possible mechanism, short of self
>>distribution over a network.  From the GPL:
>>
>>  "1. You may copy and distribute verbatim copies of the Program's source
>> code as you receive it, in any medium, provided that you conspicuously and
>> appropriately publish on each copy an appropriate copyright notice and
>> disclaimer of warranty; keep intact all the notices that refer to this
>> General Public License and to the absence of any warranty; and give any
>> other recipients of the Program a copy of this General Public License
>> along with the Program.  You may charge a fee for the physical act of
>> transferring a copy."
>>
>>In particular, the last sentence, "You may charge a fee for the physical
>>act of transferring a copy" prevents centralized distribution; this is
>>because only the distributor may make money; no money may be made from
>>at the retail outlet, unless the retail outlet provides direct support
>>or copy production facilities.  The only other alternative is that the
>
>	That clause only applies to source code.  Section 3 applies to
>binaries:

[ section 3 deleted ]

Section 3 says nothing about charging about anything, let alone for a
copying fee.  Are you saying I can only charge a copying fee for the
source?  I don't think so.  8-).

>	A linux/gnu shrink-wrapped distribution could consist of a box with the
>binary distribution on floppies in it, a manual, a pair of 3d glasses, and
>information about how to order the source code diskettes.  The charge for the
>source code diskettes would be limited to just the usual media charges,
>but you could charge anything you want for the shrink-wrapped box itself.
>Note that someone else could copy your disks and sell them themselves,
>and this would be perfectly legal (as long as they also made the source
>code available).

The problem comes from mark-up.  Is the retailer going to be required to
mark up only the parts that aren't under GPL?  How does he seperate the
"other valuable merchandise" from the GNU stuff for the purposes of doing
the mark up so he doesn't mark up the GNU stuff accidently and violate
the GPL?  I don't think standard retail practices allow "percentage of
percentage" markup -- it's usually a static percentage in the 25%-40%
range.  This has been my experience for about 7 years, but I could be
wrong (NOT!).  The only way I can protect my retailers is by charging
ridiculous pricing for my 3d glasses.  What are the problems with this?

1)	I can not sell for government use because what I am charging for
	is priced above "fair market value".  Ask Zenith and Unisys
	what happens to vendors who do this.  The governemnt can get
	3d glasses *real* cheap from another vendor.

2)	I can't charge a copying fee because the retailer or distributer
	will mark it up rather than doing "the right thing" with the
	percentages.

3)	I can't charge for the media, since this is part of the copying
	fee and will get marked up.

4)	You may fool you, and you may get me to agree to fool myself, and
	you may even get FSF and Linus to fool themselves, but we all
	know the $200 (or whatever is charged) won't fool the end user --
	he is paying for the software.

5)	You won't get my lawyer or my distributors lawyer or the retailers
	lawyer to take the chance, and if I'm not a totally private company,
	what the lawyer says goes.
	user


					Terry Lambert
					terry@icarus.weber.edu
					terry_lambert@novell.com
---
Any opinions in this posting are my own and not those of my present
or previous employers.
-- 
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