Do Free Mobile Apps Harm Consumers?

Google distributes proprietary applications for its open-source Android mobile operating system (OS) free of charge. Some of those applications (apps) are offered together as a suite of apps known as Google Mobile Services (GMS). Manufacturers of mobile devices can agree, pursuant to Google\u27s Mobile Application Distribution Agreement (MADA), to install the suite of apps on their devices at a price of zero. Some theorize that Google\u27s policy of offering some applications together as a suite of apps harms competitors or menaces consumer welfare. In April 2015, the European Commission expressed such concerns when it initiated a formal antitrust investigation that will scrutinize Google\u27s licensing practice with respect to Android, mobile apps, and mobile services. In April 2014, an antitrust class-action complaint filed against Google by individual mobile device owners in the U.S. District Court for the Northern District of California presented similar allegations. However, the theory that the MADA\u27s requirements have anticompetitive effects is wrong. As a matter of economics, Google\u27s practice of distributing free mobile apps in the GMS suite benefits consumers -- as well as manufacturers, mobile carriers, app developers, and advertisers -- by stimulating demand, by reducing the risk of fragmentation of the Android OS, and by preventing Google\u27s competitors from free riding on its investment to make the Android OS and mobile apps a viable open-source competitor to closed and proprietary -- walled garden -- platforms for mobile devices. As a matter of antitrust law, Google\u27s distribution of apps as part of a larger whole -- GMS -- is lawful under the Supreme Court\u27s four-part test for such arrangements. Google does not force consumers to pay for apps they do not want, and the MADA\u27s requirements enhance competition overall. The same conclusion holds with even greater certainty under the rule-of-reason analysis for software integration that the D.C. Circuit adopted in its historic Microsoft decision. Although European competition law differs in some respects from American antitrust law, the pertinent economic analysis does not vary by jurisdiction. Google\u27s licensing practice has invigorated competition among mobile platforms and mobile devices. Google\u27s distribution of free mobile apps in GMS has produced a market success, not a market failure, and should not be considered anticompetitive

Generating Value Through Open Source: Software Service Market Regulation and Licensing Policy

In the software industry, commercial open-source software vendors have recognized that providing services to help businesses derive greater value in the implementation of open source–based systems can be a profitable business model. Moreover, society may greatly benefit when software originators choose an open-source development strategy as their products become widely available, readily customizable, and open to community contributions. In this study, we present an economic model to study how software licensing attributes affect a software originator’s decisions, aiming to provide policy makers with insights into how welfare-improving, open-source outcomes can be incentivized. We show that when a competing contributor is apt at reaping the benefits of software development investment, a less restrictive open source license (e.g., Berkeley Software Distribution, or BSD style) can improve welfare. On the other hand, when the originator is better at leveraging investment and service costs are high, a more restrictive license (e.g., General Public License, or GPL style) can be best for social welfare even when a contributor can cost-efficiently develop the software. The online appendix is available at https://doi.org/10.1287/isre.2017.0726

Dual licensing in open source software markets

Dual licensing has proved to be a sustainable business model for various commercial software vendors employing open source strategies. In this paper we study the main characteristics of dual licensing and under which conditions it represents a profitable commercial strategy. We show that dual licensing is a form of versioning, whereby the software vendor uses the open source licensing terms in order to induce commercial customers to select the proprietary version of the software. Furthermore, we show that the software vendor prefers dual licensing to a fully proprietary strategy when the customers are very sensitive to the reciprocal terms of the open source license

The Abertay Code Bar – unlocking access to university-generated computer games intellectual poperty

Progress report on a digital platform and dual licensing model developed to unlock access to a University repository of new and legacy computer games based Intellectual Property (IP) assets for educational and commercial use. The digital creative industries have been identified by a number of governments as a priority area in delivering sustainable economic growth. Code Bar is an innovation that allows digital products to be commercially successful beyond the end of the Dare competition or coursework submission. To be selected for Code Bar, game products must be well designed for both player and market; technically robust (i.e. operating consistently and reliably on a single/multiple platforms), and be free from ambiguity around 3rd party IP. We describe various technical, pedagogic and legal challenges in developing the digital platform, licensing model and packaging of computer games products for release through the platform. The model is extendable beyond computer games to other software products

Free and Open Source Software in Municipal Procurement:The Challenges and Benefits of Cooperation

The use of free and open source software by municipal governments is the exception rather than the rule. This is due to a variety of factors, including a failure of many municipal procurement policies to take into account the benefits of free software, free software vendors second-to-market status, and a lack of established free and open source software vendors in niche markets. With feasible policy shifts to improve city operations, including building upon open standards and engaging with free software communities, municipalities may be able to better leverage free and open source software to realize fully the advantages that stem from open software development

Economic barriers to development : cost of access to internet infrastructure

The Internet is increasingly viewed as an "indispensable" resource for general development and economic growth (UNDP 1999). Its adoption by governments, organizations and individuals has resulted in the shrinking of spatial and temporal distances between different regions of the world, and has greatly facilitated the "free" and quick exchange of information. Such constrictions of time and space impact upon social and economic interactions at all levels of society. Furthermore, ramifications of this impact are felt by a society, group or individual irrespective of whether or not they use the Internet. The ability to access the Internet, and in particular the costs associated with such access, are therefore important points of consideration. Not only do these costs contribute to the disproportional spread of the Internet across the world's population; they also potentially contribute to uneven patterns of development within, and between countries

Concurrentie, innovatie en intellectuele eigendomsrechten in software markten

This study analyzes under which circumstances it may be desirable for the government to stimulate open source software as a response to market failures in software markets. To consider whether policy intervention can increase dynamic efficiency, we discuss the differences between proprietary software and open source software with respect to the incentives to innovate and market failures that may occur. The document proposes guidelines to determine which types of policy intervention may be suitable. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations. This publication is in Dutch.

A theory-grounded framework of Open Source Software adoption in SMEs

This is a post-peer-review, pre-copyedit version of an article published in European Journal of Information Systems. The definitive publisher-authenticated version Macredie, RD and Mijinyawa, K (2011), "A theory-grounded framework of Open Source Software adoption in SMEs", European Journal of Informations Systems, 20(2), 237-250 is available online at: http://www.palgrave-journals.com/ejis/journal/v20/n2/abs/ejis201060a.html.The increasing popularity and use of Open Source Software (OSS) has led to significant interest from research communities and enterprise practitioners, notably in the small business sector where this type of software offers particular benefits given the financial and human capital constraints faced. However, there has been little focus on developing valid frameworks that enable critical evaluation and common understanding of factors influencing OSS adoption. This paper seeks to address this shortcoming by presenting a theory-grounded framework for exploring these factors and explaining their influence on OSS adoption, with the context of study being small- to medium-sized Information Technology (IT) businesses in the U.K. The framework has implications for this type of business – and, we will suggest, more widely – as a frame of reference for understanding, and as tool for evaluating benefits and challenges in, OSS adoption. It also offers researchers a structured way of investigating adoption issues and a base from which to develop models of OSS adoption. The study reported in this paper used the Decomposed Theory of Planned Behaviour (DTPB) as a basis for the research propositions, with the aim of: (i) developing a framework of empirical factors that influence OSS adoption; and (ii) appraising it through case study evaluation with 10 U.K. Small- to medium-sized enterprises in the IT sector. The demonstration of the capabilities of the framework suggests that it is able to provide a reliable explanation of the complex and subjective factors that influence attitudes, subjective norms and control over the use of OSS. The paper further argues that the DTPB proved useful in this research area and that it can provide a variety of situation-specific insights related to factors that influence the adoption of OSS

Open Source Software: From Open Science to New Marketing Models

-Open source Software; Intellectual Property; Licensing; Business Model.