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What's The Linux Kernel Worth?
schneelocke writes "What's the value of the Linux kernel? After an offer by one Jeff V. Merkey to pay 50K USD for a BSD-licensed copy of Linux, David Wheeler does some calculations and comes up with an estimate of 612M USD." Wheeler has come up with a number of interesting software-worth estimates and other quantified facts about Free software; since some aspects involve ineffables and hypotheticals, the details can be argued, but he provides a good framework with SLOCCount.
There seem to be a remarkably large number of people posting on this one who haven't read past the title, never mind the article.
This isn't about a consumer price for a kernel binary. Comparisons with copies of Windows are irrelevant. The $612 million dollars quoted is a suggested figure representing the kind of cost a commercial company would have to take on to develop an identical operating system kernel.
Software companies have in the past changed hands for large sums of money. The brand is of course worth some of that money, as are relationships with existing customers, but a large part of that value is the IP possessed by the company. There are few companies that have possessed software assets of a complexity and widespread use comparable to the Linux kernel that have changed hands, and such companies when sold have been bought for large sums - to pick one example, Netscape was bought by AOL at a price tag of $4.2 billion dollars.
The value of the Linux kernel code and Linux branding, if a company with sufficient resources were interested in obtaining it, and if it were for sale, would quite probably exceed this figure of $612 million by a sizeable percentage.
$50K is a derisory offer for even an non-exclusive right to develop and redistribute the IP, which is effectively what a solitary copy under the BSD licence would give. Certainly the company I work for would laugh helplessly if such an offer was made for our code, which is several orders of magnitude smaller and less complex than the kernel.
Savant
No. Some groups require that (most notably the Free Software Foundation), but many do not. Linus and the other kernel folks are part of the latter group.
While there are some benefits to having a single copyright holder, you need a lot of bookkeeping to track everyone's copyright assignments and a lot of work to make sure they are proper. US copyright law requires that any copyright assignment be in writing and identify (in writing) exactly for what works copyrights are being assigned. Many European countries recognize "natural rights" or "droits d'auteur" that cannot be assigned to a third party. Some programmers have employment contracts that stipulate all software copyrights for things they write while employed belong to their employer, even if the software was written on the programmer's own time. Et cetera.
Linus decided either the effort was not worth it or that there were other benefits to not requiring copyright assignments. The Free Software Foundation does go to the effort to work all the details out. If you (or anyone else) wants to have a single copyright holder for a GPLed program, I encourage you to assign that copyright to the FSF. It saves a lot of effort on your part and ensures that the copyright holder has both the resources and resources to protect the software.