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Mozilla Foundation Launches Mozilla Corporation

An anonymous reader writes "MozillaZine is reporting that the Mozilla Foundation has created a commercial subsidiary to continue development of Mozilla Firefox and Mozilla Thunderbird. Don't let the word "commercial" scare you, the new Mozilla Corporation (as it has been dubbed) will be owned 100% by the Mozilla Foundation. The change is mostly a legal/tax thing to avoid the problems of pursuing revenue-generating avenues while remaining a non-profit. There will be no change to the development process and end-users won't notice much difference either. See also the Mozilla Foundation press release about the Mozilla Corporation and the Mozilla reorganization FAQ."

25 of 270 comments (clear)

  1. So. by PsychicX · · Score: 3, Funny

    It's not enough that Mozilla, this irresponsible pet owner who constantly loses its pets to suspicious ends, is now making a corporation. Its first pet, Phoenix, just vanished. Its second pet, a fox, got set on fire and presumably died. Its two birds are both in bad shape -- one is on fire and one got hit by lightning.

    Would you really invest in such a corporation? How can a dinosaur be trusted to manage a corporation, when it can't even keep its own pets safe??

  2. Strange business plan by Knx · · Score: 3, Funny

    The change is mostly a legal/tax thing to avoid the problems of pursuing revenue-generating avenues while remaining a non-profit.

    Hmm... This is unusual.

    1. Fix this legal/tax thing
    2. Avoid the problems of pursuing revenue-generating avenues
    3. ???
    4. non-profit!

    --
    The problem with Slashdot memes is that YOU INSENSITIVE CLOD!
    1. Re:Strange business plan by ikkonoishi · · Score: 2, Funny

      I for one welcome our meme-breaking overlords.

    2. Re:Strange business plan by byolinux · · Score: 2, Funny

      in soviet russia, Mozilla incorporates you!

  3. Except... by Dante+Shamest · · Score: 3, Funny
    Plus there's nothing wrong with making money for all your hard work!

    That's what I've been saying for years! =(

    -Bill Gates
  4. Re:OB by BoldAC · · Score: 2, Interesting

    For once the slashdot cliche actually works...

    Making money is not a bad thing for such a product. It gives the project insurance against the evils that will be thrown against it--patents, hacks, clones.

    My prediction is that firefox will develop more and more commerical-like features: Bundling with certain software, branding for certain services, etc.

    IE will likely develop more open-source-like features: listening to user, more standards compliance, more open APIs.)

    In most battles, the enemies become more and more like each other in the end. For example, in politics, as the election draws nearer both candidates spirial toward the center.

  5. Something doesn't make sense by amliebsch · · Score: 3, Interesting

    There's no reason that that a non-profit corporation can't have revenues. In fact, they can have massive revenues. The profits just can't accrue to private profits. So there's really only two reasons I can think of for this change: (1) the folks at Mozilla want to start getting rich, and/or (2) they want to attract private investment (which neccessarily entails revenues accruing to the investors).

    --
    If you don't know where you are going, you will wind up somewhere else.
    1. Re:Something doesn't make sense by Brendan+Eich · · Score: 3, Interesting
      There's no reason that that a non-profit corporation can't have revenues. In fact, they can have massive revenues. The profits just can't accrue to private profits.

      The issue with non-profits in the US is not about accruing "private profits" but about the type of activities pursued for the non-profit's "public benefit purpose". "Acting as if" we were a for-profit entity is a problem, even if we never accrued private profits and never distributed them somehow to the owners (in this case, the Mozilla Foundation is the sole owner).

      So even if we act to further our public-benefit purpose, and distribute funds as grants, or otherwise avoid profit-taking, if our action in the market and with partners resembles for-profit commercial activity, we may lose our non-profit status. That is something the Foundation does not want to risk.

      This is the main reason for the reorganization.

      Yes, it means Firefox is making money, and in ways that may put us in the position of "acting as if" we are a for-profit commercial entity.

      No, we will not start charging for Firefox or any of our other free (beer and speech) products.

      /be

  6. The Google Connection by MBoffin · · Score: 3, Interesting

    I think one of the underlying reasons for this is Google. It's not explicitly stated that this is the reason, but that's what I read between the lines when reading the FAQ about the reorganization. After reading Mitchell Baker's blog, I'm almost certain of it (though he doesn't explicitly state it either).

    I think we will be seeing some more serious collaboration between Mozilla and Google now.

    1. Re:The Google Connection by Finuvir · · Score: 2, Informative
      They are collaborating now. Google employs at least two major Mozilla developers, including the Firefox lead developer Ben Goodger. Also the default Firefox start page is hosted by Google and the default search engine is Google.

      According to Mitchell Baker--MoFo's Chief Lizard Wrangler and the new MoCo's President--the Foundation already generates revenue through "search relationships". No prizes for guessing who she's talking about.

      --
      Why is anything anything?
  7. deviantART? by IAmTheDave · · Score: 4, Interesting

    This may be cause for a tiny bit of concern, considering what has been happening over at devianART, with the ousting of jark (one of the two original founders) by the corporate entity.

    The lesson of deviantART is that once the corporation starts pursuing profits, and this becomes more important than the community, the origins of the foundation and the original purpose and driving force of the community may become lost.

    --
    Excuse my speling.
    Making The Bar Project
  8. "To promote choice and innovation..." by NickFortune · · Score: 2, Interesting
    What is the role of the Mozilla Corporation?

    The Mozilla Corporation is responsible for productizing and distributing Firefox, Thunderbird, and related branded products built on the Mozilla open source code base. The Mozilla Corporation's mission, shared by that of the Mozilla Foundation, is to promote choice and innovation on the Internet.

    Whoo, what'd they do - cut and past that last bit from an epiphyte(2) prospectus?

    Sometimes I could almost wish one of these press releases would say our aim is to make the Internet a shittier place for everyone and to gouge the public so deep that their children's children will still be paying off the debt. I wouldn't approve, but at least it would reduce the entropy of the data stream.

    It's not that I suspect the Mozilla corp of anything untoward, and short of omitting it entirely, I can't think of a better way to to say what they appear to be saying.

    All the same, it's a bit semantically null, innit? Where's the point of a FAQ if you fill it with meaningless platitudes?

    --
    Don't let THEM immanentize the Eschaton!
  9. Positive and negative. by hkmwbz · · Score: 2, Interesting
    This could be a good thing if Mozilla wants to grow, although I am puzzled by Mitchell's comment that they won't be pursuing a profit. Is there such a thing as a non-profit corporation? Surely, they will need to turn a profit to bring in money for the Mozilla Foundation?

    One might also wonder how everyone who has contributed to Mozilla's development because it was a project they believed in will feel. A lot of people have contributed to Mozilla through the years, and now Mozilla is going to profit?

    In the end, I guess this is what it takes to take the battle with Microsoft to the next step.

    But will Mozilla now lose the funding it receives from Google, IBM, Sun, and so on? Until now, hasn't Mozilla simply received donations from these and other large companies who didn't want to see Mozilla die?

    --
    Clever signature text goes here.
  10. Will this help by C_Kode · · Score: 3, Interesting

    Fix the issues with filtering/moving emails around in your folders in Thunderbird? I'm getting close to being forced to abandon Thunderbird. I send an email and I cannot copy it into the sent folder (and I must have copies of my sent email) The filters stop functioning and I have to shutdown and restart Thunderbird to even manually copy the email to the correct folder.

    Don't take this as a flame, I've used Netscape Messenger/Thunderbird since around 1997, but I am starting to have way to many problems... I've seen bug reports about this for several years now, yet no fix gets released. (Thunderbird hardly gets any new releases compared to Firefox)

    My programming skills are minimal otherwise I would try myself to fix it...

    Anyone know of another email client? (mainly for windows, Eudora, Pegasus, and Outlook) are either not options or I do not like them.

    I like Thunderbird... It's a shame that it's such a task to use with this problem...

    1. Re:Will this help by jurt1235 · · Score: 3, Interesting

      You can help in the following way: Instead of your time, you can use a small bonus for the person who solves the problem. That way you and the community both benefit from it.

      --

      My wife's sketchblog Blob[p]: Gastrono-me
  11. Re:MHO about possible IPO by maxwell+demon · · Score: 4, Insightful
    If the proper binding contracts are not put in place before hand, then we can say good buy to the popup blockers.

    If the Mozilla Corporation should go wrong, the Foundation can just re-start to release the official Firefox/Thunderbird versions themselves, including any improvements dome by the Corporation in the mean time. That's the power of Open Source: Even if the corporation gets evil, it cannot suddenly remove the code. The only possible weak point would be the trademark, but I hope the trademark rights remain at the Foundation.
    --
    The Tao of math: The numbers you can count are not the real numbers.
  12. Re:MHO about possible IPO by Haydn+Fenton · · Score: 2, Interesting

    I'm no business or legal expert, and I'm not completely sure about what IPO means exactly.

    Does becoming 'IPOed' that mean big mean Microsoft can come along and buy the whole thing? Or does IPO mean the company offers shares to be bought, but keeps a significant amount for itself to prevent that kind of thing from happening?

    All this stuff aside, a Corporation sounds like it's much more capable of kicking ass than a Foundation, even if there's no real difference.

  13. Re:MHO about possible IPO by bunratty · · Score: 4, Informative
    I do have a BIG problem about IPOing. Once there is stock publicly held, the stock holders value is required to be maximized.
    From MozillaZine's article on the Mozilla Corporation:
    While the Mozilla Corporation will be a for-profit, the Mozilla Foundation is keen to stress that it is not selling out. The Mozilla Foundation will ultimately control the activities of the Mozilla Corporation and will retain its 100 percent ownership of the new subsidiary. Any profits made by the Mozilla Corporation will be invested back into the Mozilla project. There will be no shareholders, no stock options will be issued and no dividends will be paid. The Mozilla Corporation will not be floating on the stock market and it will be impossible for any company to take over or buy a stake in the subsidiary. The Mozilla Foundation will continue to own the Mozilla trademarks and other intellectual property and will license them to the Mozilla Corporation. The Foundation will also continue to govern the source code repository and control who is allowed to check in.
    There's no public stock, so the problem you mention cannot happen.
    --
    What a fool believes, he sees, no wise man has the power to reason away.
  14. Re:MHO about possible IPO by cwhicks · · Score: 2, Insightful

    I disagree as well. Unfortunately, very few people continue to do "the right thing" when there is money to be made to not do "the right thing", i.e. insert ads, stop blocking certain pop-ups, add propriatary code. I am not saying this will happen, but up until now the insentive for adoption has been the opposite of what the insentives will be now.

    Also, when money becomes available, like flies to shit, people whose only interest is money immediatly try to get involved and usually succeed.

    --
    - I like pudding.
  15. Re:MHO about possible IPO by Nytewynd · · Score: 3, Informative

    Going IPO means your shares are publicly traded, and you have a duty to your shareholders to make money. That can mean that you make decisions based on money rather than what is best for your product. In games, it usually means rushed releases and unfinished products. In software it can mean anything from a rushed release to signing a deal with Gator to include their software in your browser for extra money. That is obviously a worst case scenario.

    --
    /. ++
  16. Re:MHO about possible IPO by lwagner · · Score: 2, Informative

    Yipes.

    An Initial Public Offering of stock (i.e., an "IPO") is done when there are venture capitalists or owners who want an exit strategy to realize their investment proceeds (i.e., "cash out"). These are traditionally only used by large companies, though, in the "tech boom", small companies were boosted with cash so that they could function like large companies through outside investment. IPOs are very expensive and time-consuming, so they are mostly only used for large businesses.

    Another strategy that owners use to get out of the business is an Employee Stock Ownership Plan (ESOP). These can be used by large and/or small businesses. It's not as glamourous and it takes a while. There's no immediate "cash out".

    Both an IPO and an ESOP are similar in that the owners are giving up some sort of control. With an ESOP, owners are giving up some control to employees. With an IPO, owners are giving up some control to the public.

    99% of businesses are small businesses and thus do not have the interest nor funding nor capability to do an IPO.

    Mozilla Corporation will likely be a small business run by a small group of people who are passionate about developing Mozilla to its fullest potential.

    Twist of events: I imagine it is necessary for Mozilla to make a profit under the for-profit side to keep their nonprofit 501(c)(3) status. Sometimes organizations started for humanitarian purposes end up taking in too much cash (and, by that, I don't mean a lot..because the limits are low) and have to do this for tax reasons.

    That's it.

  17. Mozilla has sold out to Google already by Everyman · · Score: 2, Informative

    I have asked Mozilla Foundation for a copy of their 2004 Form 990, which would reveal how much money they took in from Google. Rumor has it that it's tens of millions. I'm curious about whether they filed a 990-T to pay taxes on this unrelated business income. Mozilla is late with their 2004 filing, just as they were with their 2003 filing. It's clear that there is a massive jump in income from 2003, which was appropriate for a nonprofit, to 2004, which promises to be more interesting. There is no question in my mind that the 501(c)(3) tax-exempt public charity status is not the ideal vehicle for laundering Google's lucre. It raises too many eyebrows.

    The sellout to Google is quite substantial. We all know about the prefetch for the Google search bar, and how you can disable this in about:config under network.prefetch-next if you don't like collecting cookies from places that you never visit.

    What's not commonly known is that this configuration option does not affect the behavior of terms entered in the address bar. If Firefox cannot parse the URL, it will go to Google and pick up the number one site, and then take you there directly. It's like a built-in "I'm feeling lucky."

    Convenient? Sure, assuming that a huge percentage of surfers haven't a clue about the difference between search terms entered in a search box, and a URL entered in an address bar. Studies show that this is indeed the case.

    Explorer does something similar, in that a search term in the address bar will take you to a search preview, assuming that you don't have Active Scripting disabled. But arguably, this is more benevolent than what Firefox is doing with Google. The way that Firefox is doing it gives Google much more control over web traffic patterns. It makes it much more important to be number one on Google for your selected keywords than it is to be number one on MSN for the same keywords, if everything else is equal.

    And it's not like Google's first result is always the best. Recent studies show wide disparity between various engines for the top results.

    Moreover, all the several-year-old Google bombs still work. Except one, that is. I made a Google bomb for "out-of-touch executives" that led to Google's corporate executives page. It was doing great in all the engines for the first half of 2004, and even got mentioned in the New York Times in June, 2004. But then Google defused this particular bomb by doing a hand job on their algorithm in July, 2004. It disappeared in Google, and I took my links down. But it was a great bomb nonetheless, and is still doing fine in Yahoo and MSN.

    So Google cannot even claim that their mathematical methods are untainted by self-interested sabotage in certain cases. That makes them evil. And with Firefox going along with their game plan, that moves Firefox one step closer to the dark side.

  18. Re:MHO about possible IPO by Anonymous Coward · · Score: 2, Interesting

    Yeah, but when the Mozilla Corporation and Foundation having so many ties, how do we know that the Foundation is really looking out for it's best interests instead of just providing cover for the Corporation? The Foundation doesn't look independent enough.

  19. Everyman = google-watch.org. by hkmwbz · · Score: 2, Interesting
    "And it's not like Google's first result is always the best. Recent studies show wide disparity between various engines for the top results."
    Exactly. You are Daniel Brandt, the guy behind google-watch.org, and you created GW because your insignificant site which no one linked to wasn't ranked as #1 on Google for searches on people in the U.S. administration.

    You were pissed off, and decided to have your revenge. Daniel is your name, Slander and lies against Google is your game.

    You basically have no credibility what so ever when you talk about Google.

    "Moreover, all the several-year-old Google bombs still work."
    These are exceedingly lame. They are terms hardly anyone uses or links to, so it's no wonder Google doesn't have any high-ranking links for those. The only value of "Google bombing" is for the fun of it.
    --
    Clever signature text goes here.
  20. The End by _aa_ · · Score: 2, Interesting

    This is outrageous. There's absolutly no law against non-profit organizations seeking, earning, and keeping revenue. The real story here is that Mozilla has become profitable, and is moving so that those in control can take advantage of it. This is not how successful open source projects should behave. They should not beg for donations so they can advertize (see spreadfirefox), and any profits they earn should go back into the project, then to the developers, and then into the open source community.

    Let me preface my next statement by saying that I love and use firefox exclusivly, but it's time for firefox to fork so it stops fucking up the mozilla foundation.