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30th Anniversary of Gates' Letter to HCC

suso writes "30 years ago today, Bill Gates wrote the infamous Open Letter to Hobbyists about licensing of Altair BASIC to the Homebrew Computer Club. Looking back it's interesting to read this emotionally written document as it is probably Gate's first publicly written opinion about licensing software." From the letter: "The fact is, no one besides us has invested a lot of money in hobby software. We have written 6800 BASIC, and are writing 8080 APL and 6800 APL, but there is very little incentive to make this software available to hobbyists. Most directly, the thing you do is theft. What about the guys who re-sell Altair BASIC, aren't they making money on hobby software? Yes, but those who have been reported to us may lose in the end. They are the ones who give hobbyists a bad name, and should be kicked out of any club meeting they show up at."

26 of 544 comments (clear)

  1. ... says the guy who stole gobs of PDP-10 time ... by Big+Jojo · · Score: 5, Insightful

    Odd how Bill Gates doesn't really like to tell the side of the story where he stole PDP-10 time from a Seattle company (which went out of business), one of the Universities in Seattle (which kicked him and Paul Allen out when they found out about it), and even Harvard University.

    Yes, the PDP-10 time used to run 8080 simulators. Used to write that initial Basic interpreter ... stolen.

    Pot. Kettle. Black.

  2. Opening the Gates by dingDaShan · · Score: 3, Insightful

    He makes a good point. Intellectual property is something that should be defended in order to preserve good order and for the sake of those who do the work. If there is no incentive to make money in a certain field, progress will suffer in a society such as a capitalist one.

    1. Re:Opening the Gates by Mateito · · Score: 4, Insightful
      If there is no incentive to make money in a certain field, progress will suffer in a society such as a capitalist one.

      Absolutely, but there shouldn't be blanket permission to prevent societies evolution to your gain. This was the original idea of copyright - the holder could make money out of their invention/creation for a "reasonable" period of time, then the content fell back into the public domain.

      Also, once something is in the public domain, it should be there for all. Disney has made a fortune by taking out-of-copyright material (Cinderella, Pooh, Snow White), reworking it, then throwing lawyers at everybody who attempts to use the original material.

      Finally, people who want to put their creations "conditionally" into the public domain (eg - GPL) should be protected. Although they aren't motivated by money, to see somebody else get rich by using your work (outside the rules) is a different kettle of fish.

  3. I'm actually going to agree with Gates?!? by rewt66 · · Score: 5, Insightful
    Wow, this sure feels weird. But I'm actually going to agree with Bill Gates.

    If somebody is selling software, taking a copy of it and using it without paying for it is not cool. Taking a copy and selling copies of the copies is even less cool.

    I mean, look, we get on people for GPL violations if they use GPL code in something and won't let people have the source code. Why is that bad? Because they are using somebody else's stuff without permission. The author has made it available under some terms, and other people want to make money off of it without following the terms. That is rude; it is unethical; and it is illegal.

    Now, given all the stuff that Microsoft has done over the years, i don't think Bill Gates has a lot of room for the moral outrage. And the world might have been a better place had he shared the spirit of the hobbyists - the idea of freely sharing. But he still has a point.

  4. Reselling? by Karma+Farmer · · Score: 4, Insightful

    They are the ones who give hobbyists a bad name, and should be kicked out of any club meeting they show up at.

    People would show up at club meetings and sell pirated copies of commercial software? And people didn't see anything wrong with this?

    Frankly, every time I read this letter, I'm very damned impressed with Bill Gates. He's worked very had to create an environment where commercial software can exist, and I'm very damned grateful to him for it.

    1. Re:Reselling? by HuguesT · · Score: 4, Insightful

      Absolutely,

      Even if it's labelled a crime it's not necessarily wrong. RMS keeps arguing this point over and over again, for example here, and as the parent is writing it was certainly a matter of debate at the time whether software could be copyrighted at all.

      Simply put morality and the law are two separate issues. Even justice and the law are separate issues. Need I bring Martin Luther King Junior in here?

  5. His letter is interesting. by Zork+the+Almighty · · Score: 3, Insightful

    Of course, the exact same argument is being made today, by Microsoft and Adobe, but also by the RIAA and MPAA. It's funny how Gates earlier words on the subject seem to carry so much more force. At the time he had a small company with an honest mission, and it's hard not to feel a little bit bad about how everyone was using his software but hardly anybody was paying him for it.

    Fortunately, what is true for small markets is not true for larger, established markets. Enough companies make money off of OSS to help support its development, and free music will hopefully become viable as the cost of production falls closer and closer to hobbyist levels. That being said, there is a fundamental truth to Gates' words: successful pioneers deserve to be paid.

    --

    In Soviet America the banks rob you!
  6. Your ad hominem argument... by xiphoris · · Score: 3, Insightful
    Your argument is based on a logical fallacy known as ad hominem. Some examples of other such arguments (from Wikipedia that I linked):
    • "You claim that this man is innocent, but you cannot be trusted since you are a criminal as well."
    • "You feel that abortion should be legal, but I disagree because you are uneducated and poor."
    • "He's physically addicted to nicotine. Of course he defends smoking!"
    • "Tobacco company representatives are wrong when they say smoking doesn't seriously affect your health, because they're just defending their own multi-million-dollar financial interests."

    In short, there's no reason for you to point out that Bill Gates also stole. It doesn't make his argument less convincing or less applicable. The person making the argument is a completely irrelevant aspect of the argument itself. An argument is true or false no matter who says it, no matter their character or past actions.

    The fact that you're attacking his past actions instead of the argument he made is telling. I think he has a point. Would you like to reply to his actual argument instead of just attacking the man?

    If you want to discuss all the other, horrible things that Bill Gates may have done ... then that's fine. But it also is completely offtopic and should be moderated as such.
    1. Re:Your ad hominem argument... by Zork+the+Almighty · · Score: 5, Insightful

      That would be a nice form post (especially on slashdot), except in this case Bill Gates' argument is intimately tied to him. He argues about how his company has made an investment and deserves renumeration. When $40,000 of that investment is in fact stolen from someone else, why does he deserve to be paid ?

      --

      In Soviet America the banks rob you!
    2. Re:Your ad hominem argument... by IgnoramusMaximus · · Score: 4, Insightful
      Would you like to reply to his actual argument instead of just attacking the man?

      His actual argument, like all those wishing to own and trade "intellectual property" disintegrates upon the examination of what it is that they wish to trade and then accuse others of stealing. Information is not, under any possible definition that can withstand even a most cursory test of logic, an object which can be traded. All principles of mercantile trade and also that of capitalism which is built on that trade are constructed upon the premise that the only things valid for trade are either physical (private property) or labour. An attemt to use law to redefine esoterical thought representations and large numbers into physical objects are not only morally repugnant but also a dire warning, a clear demonstration that the legal system is dangerously out of control and no longer subject to rules of decency and logic.

      That is also a wholly independent and separate issue of that of how to reward artists and inventors for their creative works. To which a question many answers exist which do not require a totalitarian regime and a wholesale crippling of our freedoms to accomplish. However those who are enemies of those freedoms as they see them in the way of their boundless greed and therefore those who our mortal enemies, enemies of the human kind, enemies like Bill Gates or the so-called "music industry", would stop at nothing in order to use perversions of law to reap "rewards" so out of proportion with their contributions that soon their fortunes exceed that of 99% of their fellow citizens individually and probably good 30% of global population combined. There is no possible justification for that state of affairs, other then out-of control rule of greed and wholesale subjegations of law and the society to it.

    3. Re:Your ad hominem argument... by Daniel+Dvorkin · · Score: 4, Insightful

      The person making the argument is a completely irrelevant aspect of the argument itself.

      That's true only in a very limited sense. Logicians love to quote clear examples of logical and then claim that their examples apply to real arguments (ironically, this is itself an example of fallacious argumentation -- it's a straw man.) In the real world, the relationship between the argument and the person making the argument is a lot more complex. If the person making the argument has a known bias or pattern of behavior which may be affected by the outcome of the debate, it is entirely logical, and not at all fallacious, to take this into account when interpreting his words.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    4. Re:Your ad hominem argument... by jdavidb · · Score: 4, Insightful

      He argues about how his company has made an investment and deserves renumeration.

      All right, leaving ad hominem attacks aside for the benefit of those who commented about that previously, let's point out the fallacy in the argument, independent of Gates' character:

      Just because you make an investment does not mean that you "deserve" remuneration, at least not in any meaningful sense that creates an obligation in anyone else. My dad, for example, invested in several stocks of companies that went belly up. While we can argue that he "deserved" remuneration because of his investment (after all, think of the children! which at the time would have been me and my brother), the fact is that his stocks turned into toilet paper, and his investment didn't somehow create a magic obligation on the part of the public to see to it that he got his "remuneration" regardless of whether or not there were an actual market for what the company did.

      So, if nobody wants what you're selling, you may "deserve" to recoup your investment, but nobody is obligated to give it to you. I further contend that in that case it's not right to try to manipulate the market through coercive laws in order to _make_ a market that gives you your "deserved" "remuneration."

    5. Re:Your ad hominem argument... by Zork+the+Almighty · · Score: 4, Insightful

      This is starting to get bland and pedantic, but there is a distinction to be made. In Gates' letter he makes two arguments. One is the general argument that developers deserve to get paid ("What hobbyist can put 3-man years into programming, finding all bugs, documenting his product and distribute for free?"), and the other is that he specifically deserves to be paid ("The value of the computer time we have used exceeds $40,000."). Maybe we are talking about two different things ? I think the fact that he stole that $40,000 of computer time invalidates the latter. His general argument still stands. I even supported it in a another post.

      --

      In Soviet America the banks rob you!
    6. Re:Your ad hominem argument... by arkhan_jg · · Score: 3, Insightful

      Ad hominem has no place in debating a point of logic (an argument is true or false no matter who says it), but it does have a place when dealing with human testimony.

      Take two of your examples.

      "You claim that this man is innocent, but you cannot be trusted since you are a criminal as well."

      If the criminal's claim is a testimony of another man's confession in prison for example, and the criminal is a criminal because he committed fraud and perjury... His character very much becomes part of the debate, as he may be lying again, which makes his testimony unreliable.

      "Tobacco company representatives are wrong when they say smoking doesn't seriously affect your health, because they're just defending their own multi-million-dollar financial interests."

      If the tobacco rep says that smoking doesn't harm people's health, the fact that his role is specifically to defend the tobacco business makes his position questionable, his likelyhood of lying is greater, and his evidence should go through extra scrutiny to see if it is reliable. If he has no independant evidence at all, then his position becomes even more tenuous.

      In a more abstract example, man A says argument T is the truth, based solely on his testimony. man B says A is lying because of his vested interest. According to you, that's an ad-hominem. T may or may not be true, but it's only true if A is not lying, so B has a valid reason to attack A's history of lying.

      Ad-hominem is best called out when an attack is made on someone's character that bears no relation to the argument they're making - your 2nd example is much better.

      In relation to TFA, Bill Gates is arguing that copying software is morally wrong, but he's doing it from a position in which he committed a similar moral wrong to write the software in the first place; i.e. the 'theft' of time from another. It's a case of "do what I say, not do what I do".

      He bases his case for renumeration on "The value of the computer time we have used exceeds $40,000."

      Man A is claiming he deserves remuneration because of costs C, and that without payment P, he cannot afford to make software (argument T). Man B claims that man A didn't spend anywhere near costs C, because he used the expensive computer time without paying for it, so P is not actually paying for C, but is pure profit for A. P is not needed to cover C, so without sufficient P there's no reason to assume that A will stop making software. Ergo, argument T is false, and Bill Gates needs to find another reason why we should buy his software.

      So it comes down to who you believe, A (Bill Gates) or B (Big Jojo), without other evidence. Man B's claim of theft of computer time directly affects man A's argument for remuneration, and is not an ad hominem.

      --
      Remember kids, it's all fun and games until someone commits wholesale galactic genocide.
    7. Re:Your ad hominem argument... by IgnoramusMaximus · · Score: 4, Insightful
      I don't know about you, but I pay for the intellectual or creative content. The paper and ink is worthless to me. When I buy eBooks, I don't pay for the DRM, or the bytes. I pay for the content. I buy books, electronic or paper, based on whether they can inform me, emotionally or factually.

      That is merely your preception or perhaps your intent. In fact you do pay only for the media and the processing of it. Information simply has no attributes which would make a transaction of its sale possible.

      Yes, once the copyright expires. I buy lots of Shakespeare plays - but I can reproduce Shakespeare's insight as much as I please. Even under copyright, I can tranfer what I learned from the books to others, as long as I don't copy the text outright.

      Then what is the difference between the information before the expiration of the copyright and after? Does it change qualities? Does it become a different thing? Or is it perhaps that some misguided people thought that by dictating conditions of what you can do with the thing you supposedly purchased after its sale (thus violating another of basic tenets of mercantile society) is a good way to encourage artists to produce more? And that this scheme, in addition to rewarding distributors and marketers of plastic disks far more then the artists, produces wee little side effect: that any logically consistent attempt to enforce this must result in one form of totalitarian repression or another? "copying the text outright"? Didn't you do so by reading it? Did not the CD player copy the data and then the amplifier, the speakers, the air particles and finaly your ears do so? Where is a differnce between "copying outright" and "orally transmitting it"? By hand signals? Etc and so on. And then of course onto more advanced questions like "what exactly is the information itself which is so protected?" A series of ink blots on paper? Electrons in neural pathways? Dimples in plastic? What exactly?

      No. I pay for the creation of the work.

      No you don't. Vast majority of the money goes to mass marketers, distributors, manipulators and gate keepers of the information. The artist receives a mere fraction of that money, and ironically, is rarely the "owner" of his own work. You are simply falling a victim to another aspect of this odious scam, that is the purposeful conflation of the attempts of turning information into private property and that of providing means of rewarding artists or scientists for their labour. In fact these two are separate and wholly independent issues. What the book and CD-sales model is attempting to do is to treat the process as if all creative activities were one and the same with assembly line production of mass market goods. It is the "idea as a plastic widget" model. The resulting effect is that of the artists receiving less in compensation for their effort then that under various patronage and pay for performance schemes of the past while some forms of "art" (read: kitsch) are manipulated and abused to create "products" by means of shameless marketing.

      would rather not pay for the compilation - but even if that were free, I would voluntarily pay people who provide me with unique or interesting information.

      That system is called patronage and is indeed a sane aproach. But you would be paying for the labour of producing the information, not the information itself as it has no possible way of being traded. It is simply so due to its fundamental nature.

      I am in favor of all methods of unlinking these, so I can give more money to people who create intellectual value, rather than those who merely package it.

      The problem is not unlinking the two, which happens regardless of the wishes of the stakeholders, and is merely a result of the nature of information. The problems is that an attempt to enforce a "mass market widget" model of renumeration to artists leads inevietably, logically and unavoidably to totalitarian measures. There is simply no other way to defeat the fu

  7. Historical context by Tony · · Score: 5, Insightful

    There's a lot to understand about the early days of personal computing. Consider Microsoft: it's biggest accomplishment was porting BASIC (for which they used publicly-available source code) to port to the ALTAIR (for which Mr. Allen wrote the interpreter). So, the BASIC which Mr. Gates so zealously defended was taken from BASIC source code which was publicly available.

    His defense of copyright was hypocritical, at best. The one piece of code to which Microsoft had clear copyright (the ALTAIR emulator) was written on a college PDP machine, and wasn't contested. The bit that *was* contested was code *which Gates himself* had taken from public domain.

    The historical context is simple. At the time, code was shared freely, to the profit of everyone involved. Everyone stood tall, until Gates and his ilk arrived, standing on the shoulders of giants and proclaiming they were the tallest motherfuckers around.

    The whole idea of someone "owning" a chunk of computing is bunk. It always has been. It hurts us all. Do you think Microsoft would be where they are today without freely-available code? If so, take back Altair BASIC, take back the TCP stack in MS-Windows (taken from BSD TCP), take back MS Internet Explorer and MS HTTP. Take it all away, and see where Microsoft stands.

    Historically, his rant was nothing but petty hypocritical gutter-sniping from an ultra-rich college punk.

    --
    Microsoft is to software what Budweiser is to beer.
  8. Re:Attitude hasn't changed much by jb.hl.com · · Score: 5, Insightful

    He still hates casual software piracy; the only difference is now he has much more influence...

    This is a bad thing? I didn't realise software piracy was some kind of fundamental right. Nor did I realise that, you know, not liking software piracy made you some kind of bully.

    You didn't explicitly say that, no, but that's the impression I got.

    --
    By summer it was all gone...now shesmovedon. --
  9. Re:Attitude hasn't changed much by l33t.g33k · · Score: 3, Insightful

    OK, I'm not implying that software piracy is a good thing. If it's not free, then you should pay for it, to show respect to the people who worked hard to produce the software.
    But also, Bill Gates was definitely much rougher in the letter than he needed to be to get his point across, which is why it is difficult to feel sympathetic to his cause. The perception of him as a "bully" is mostly because of the tone of the letter.

    --
    My sig is permanently on strike.
  10. Re:... says the guy who stole gobs of PDP-10 time by marvinglenn · · Score: 5, Insightful
    [...]where he stole PDP-10 time from a Seattle company (which went out of business), one of the Universities in Seattle (which kicked him and Paul Allen out when they found out about it), and even Harvard University.

    I'm not questioning the validity of this statement in this post, but it would be great if someone would post some links to evidence supporting this allegation.
    --
    The whores get mad when the sluts give it away for free.
  11. Re:Attitude hasn't changed much by IgnoramusMaximus · · Score: 4, Insightful
    From that to Billionaire. God bless America.

    I hope you realise that it shows that something is profoundly wrong with America. Since the capitalist system is supposed to be a meritocracy, whereby individual, haphazard transactions of consumers magically even out over time to reward contributors in direct proportion to their contributions (a.k.a. The Invisible Hand), this can only be construded as a total and complete failure of the capitalist system. Neither Bill Gates nor Paul Allen did ivented anything novel or unique, they merely happened to be, by happy circumstance at the right place and knew the right people. Add to it the supremely tenacious and boundless selfish greed of Gates and the rest is history. Unless of course you are going to suggest that a progression of work of others these two appropriated over time and an 8080 rendition of BASIC (a language neither of those two invented) was worth all those untold billions.

  12. Re:Attitude hasn't changed much by newrisejohn · · Score: 3, Insightful

    They may have been mediocre programmers, but they were shrewd, lucky and willing to take risk and that is what makes you successful in a capitalist system.

  13. Re:Attitude hasn't changed much by IgnoramusMaximus · · Score: 5, Insightful
    shrewd, lucky and willing to take risk

    Shrewd? Bill was an efficient abuser of others and quick to exploit any disadvantages, like say, a conscience, they might have had for his profit. I guess you could call that "shrewd" although I have more choice words for it. Lucky? Certainly. But if luck is to be the cornerstone of the capitalist system then it is simply feudalism in a fancy dress. Risk? You gotta be kidding. We are talking about a spoiled, already rich brat whose entire early operation was underwritten (foolishly) by IBM.

  14. Real Irony. by twitter · · Score: 3, Insightful
    That being said, there is a fundamental truth to Gates' words: successful pioneers deserve to be paid.

    It's funny that he now thinks of pioneers as "loss leaders" and pledges not to enter a "market" until it's "mature". "Mature" means there's enough public awareness to buy one of the "loss leaders" for a song or crush the rest of them for nothing.

    The biggest mistake, however, is to buy the core message. Free software, developed by users, blows non free software away. The "quality" software and docmentation he said could only be created by paying him is here and "flooding the market." The whole binary ecology is based on a lie. The biggest part of that lie is that there's no other way to make software and that we must sacrifice our freedom to have computers that work.

    The tide is already turning. DRM'd music is making the cost of non free software obvious to everyone. The abundance of free software that anyone can download and use, blows everything Bill says right out of the water. Your children will not be able to believe that public school systems were once sued for sharing text editors.

    --

    Friends don't help friends install M$ junk.

  15. Re:Attitude hasn't changed much by Saanvik · · Score: 4, Insightful
    I remember the time when this letter was written and although I don't agree with his position, I think the tone of his letter was appropriate.

    At the time nobody took seriously the idea that someone should be paid for software. We didn't pay for what was on the disk, we paid for the disk. Once we owned the disk, we felt anything on it was ours. The position of people like Bill Gates was very different, and he had to make a strong statement to get his point across.

  16. Re:Attitude hasn't changed much by IgnoramusMaximus · · Score: 3, Insightful
    Microsoft produced a product that a whole bunch of people thought was worth spending money on instead of its competitors, and thus made its founders rich.

    What competitors? I am not sure if you are familiar with the history of this but the "success" of Microsoft is a result of confluence of several factors: a) IBM's irrational decision to tie its fortunes to Microsoft's on an exclusive basis, b) general public's lack of understanding of principles of computing, leading it to treat everything and anything PC-related as a brand-new, never before heard of discovery, never you mind not realizing that Microsoft was doing them great disservice by reinventing 20 year-old principles, poorly and c) Bill's ability to create a vendor lock in, by unethical and morally repugnant manouvers both legal and technical. One leading to exclusions of all competitors by forming essentially a protection racket with major vendors and the other by creating great obstacles for users and developers should they consider a competing product. This is a text book example of failure of capitalism, the dangers of trusts and cartels and the limitations of the contribution-reward scheme when the consumers are deprived of sufficient information to make an informed purchase.

  17. Re:Attitude hasn't changed much by IgnoramusMaximus · · Score: 3, Insightful
    Seems to me that someone is a bit jealous of Gates' success more than anything else... Probably still banging his head against the wall for not joining Microsoft when he had the chance...

    Jealous is not the word. Try "dismayed at the great deficiencies of society" is more like it. My argument is not that either I or more likely one of those far more brilliant coders I spoke of should have replaced Gates. My point is that noone, ever should have been in Gate's today's position as competition should have established a vast network of suppliers cooperating within common standards based on the quality of their work. In such a scenario, each of these people would have his/her niche and the society would be better of for being far more egalitarian, just and ended up having much greater choice and strong scientific progress instead of what we have now. I am not sure if your realise this but Microsoft has set the computing industry back 50 years. Only now its products are beginning to feature ability to use terminals and begin to approach true mutitasking and multiuser functions. If you wait a few more years, we will have the 1960s OS virtualization coming back as a built-in feature. I don't know about you but I find the way things unfolded rather sad and tragic.