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From "Happy Hacking" to "Screw You"

tquid writes "Trying to bridge the digital divide in Canada's poorest postal code, a principled group of hackers adopt "open source"-based technology spun off from an MIT project. Then the terms on the hardware are changed, and changed again, and then firmware to lock out the frustrated group's software is installed, screwing them out of their investment and many hours of development work."

14 of 243 comments (clear)

  1. Let everyone know by Anonymous Coward · · Score: 4, Insightful

    Their wiki article has no Controversy section. It needs one. I strongly suggest that someone who was abused by them edit the wiki article setting out the case. Given their hippie like idealistic looking web site, I would have to accuse them of hypocrisy at least.

  2. Re:I don't think they are viable by masonc · · Score: 5, Insightful

    I talked to Meraki about using their mesh network fro a resort I wanted to equip, but when I asked what would happen to our investment if they went belly up, they told me it the network hardware would be unusable if that happened. I said thanks but that's not acceptable.
    Who would walk a client into that sort of scenario? How many bright hopeful startups have we seen disappear without a mention? It's not like they would ever be honest and tell you they are running low on cash.
    I wouldn't mind if their service was value added, billing or accounting or something, but the network could still be used in the event they vanished. If the hardware was open and I could install a Open Source version later, I might have done it.
    Maybe Meraki needs to revisit their model and look at it from a customer's viewpoint.

    --
    CM www.cometenergysystems.com Blog: http://caribbeanrenewable.blogspot.com/
  3. Re:Anyone know the details of the MIT agreement? by JustinOpinion · · Score: 5, Insightful

    Part of the problem is that the company (Meraki) pushed firmware upgrades to all the units, including older boxes purchased before their revised licensing model. The new firmware locks down the units, making it impossible to hack them and impossible to load custom firmware and bypass the new locks.

    That's the really sleezy part--changing your licensing terms for new sales is annoying for loyal customers, but obviously can't apply retroactively to goods you've already sold. But this company is doing just that--trying to retroactively impose their new licensing and payment model onto units that were already sold under an open, permissive terms.

    So even though they still have the free code, they are now blocked from loading the code onto their own purchased hardware. It's probably not impossible--a talented hacker can maybe bypass the firmware and load custom code again... but of course they shouldn't have to. It seems to me that Meraki has more or less broken into customer devices without permission and made unrequested changes--rather illegal as far as I know.

  4. Re:Vendor lockin is a myth by ShieldW0lf · · Score: 4, Insightful

    They sold the first taste of Heroin at less than cost in the hopes of locking people into an ongoing profit stream, and their hopes didn't materialize. That's terrible. Those poor business people.

    The hackers did show a lack of savvy. They were trying to help people who have no means to pay, and they put themselves in a position where they were relying on a for-profit corporation to achieve their goals. That's just stupid. Make deals with the devil, end up on fire. They should have known better than to leave themselves vulnerable to external leverage like that.

    --
    -1 Uncomfortable Truth
  5. Sounds like lawyer time by Registered+Coward+v2 · · Score: 4, Insightful

    IANAL, but it sounds like time for them to find a nice CDN lawyer who would do some pro-bono work to see if they have grounds for legal action. It would seem to me tha a "Tortuous interference" claim might be valid; given the actions appear to interfere with the owners of the hardware's ability to provide services as a result of the update.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  6. Re:Vendor lockin is a myth by JustinOpinion · · Score: 5, Insightful

    What did they expect? They probably expected to pay the list price for the quoted product.

    The company is taking a loss on each box at $50. That's the company's problem, of course. They are of course free to charge more or less for the devices whenever they want.

    So Meraki then does all it can do at that point, force the HW to only run the special software and try to get back into the market. Ah... so I see you missed the part where Meraki pushed firmware upgrades to existing units? They basically forced new software onto older units which lock them out. So, in effect, they sold a device with certain promises (namely, "open!") at a certain price, and then afterwards log into the devices and load new software to prevent the owners of the hardware from exercising the rights that were granted to them under the original contract terms. As far as I know, logging-into someone else's hardware (and then changing the software so that the hardware is now under your control) without their permission is illegal.

    The hackers (especially those who put some kind of trust in "openness") are the ones who ruined the municipal network for everyone. They showed a clear lack of political savvy and it ended up turning what could have been a boon for both the city and Meraki into a political morass which ends up with no one at all happy. I disagree. If the company was indeed selling the units at a loss, then that is their own stupidity. Customers taking advantage of what you offer ("open, hackable, access point for $50!") is their legal right and frankly is sensible. I disagree that giving into corporate demands at every turn is "political savvy". The company screwed them (and possibly broke the law), so they are warning others not to deal with that company, and it seems like they are going to try to find other hardware suppliers in the future.
  7. Re:Vendor lockin is a myth by mgblst · · Score: 5, Insightful

    How the hell would they now whether or not the company was taking a loss on each box? Is this something I need to research on everything I buy? You seem to consider this ok? Maybe I should check out the details on my monitor, to make sure that I am not supposed to make up some of the income for the company by visiting certain websites.

    If some company screws up and sells my "faulty" goods, then how is this any of my responsibility. And how does this allow them to go in and change the goods they already sold me?

    I am having great difficulty understanding your logic on this one.

  8. Re:Vendor lockin is a myth by Gailin · · Score: 4, Insightful

    Is it the hackers fault that Meraki instituted a poor business model? Is it the hackers fault that Meraki is incapable of finding a profit model that suits their needs? Is it the hackers fault that Meraki is retroactively applying their license by updating boxes without notice or consent?

    What a company hopes for and the reality of what they get is not my problem or concern. They are from fricking MIT. If they can't do a simple business analysis to come up with a workable pricing and support model, then what the hell are they doing staying in business. This is elementary level thinking, so no, the eggheads from MIT get no sympathy from me.

    G

    --
    I wish there was a fscking blue pill
  9. Re:Vendor lockin is a myth by Broofa · · Score: 5, Insightful

    You're blaming the "hackers" for this? This was a project for a poor community with a limited, fixed budget. The hackers got involved because volunteer efforts were likely the only way this project was going to happen. The only thing that changed was that Meraki switched from one unaffordable model to a different, still-unaffordable one, and in the process alienated a group of hackers with a vested interest in helping them improve their product. Perhaps Meraki should have instead open-sourced their Dashboard code and tried to leverage the efforts of people who are able and willing to help them make it better. And at the same time take a long, hard look at their business model. Because it's threatened by a bunch of hobbyists with some spare time on their hands, they're going to be in real trouble. Rather than trying to extort (too strong a word?) subscription fees for their software, perhaps they would be better served by slightly raising the price on the hardware (which they did) and offering support/services contracts to those customers who can afford them. It's a pretty safe bet that these other customers are going to be evaluating vendors not just on the hardware and software, but also on how open their code is, how robust the user and developer communities are, and whether or not they can count on the vendor (Meraki in this case) to act in their best interests in the future.

  10. Re:Vendor lockin is a myth by Opportunist · · Score: 4, Insightful

    A company selling hardware at a loss trying to recover that loss with software sales is their problem. Not mine. Printer manufacturers do that, too, selling their ink printers at a loss to cash in with cartridges. Of course, third party vendors quickly tried to push their own cardridges onto the market, along with refill kits, both of which are being battled fiercly by the vendors of the printers who want to protect their business model. You now have chips in cartridges, protected by law against being duplicated... and so on.

    It is a vendor lock in attempt. Try to sell the original part cheaply to win a customer, then milk the customer when he got the item and needs "fuel" to keep it running. Whenever something like this happens, you see a company get all defensive and try their utmost to keep their business model working.

    This of course raises the question, why don't they just raise the price to match the cost? You offered that question yourself, why didn't they just raise the price by 70 bucks to make a profit with the original piece of hardware? The answer is simple: There's more money in milking locked in customers.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  11. Re:What a bunch of bunk by Pogie · · Score: 4, Insightful

    I'll grant you that the goal of the do-gooders was a little ephemeral compared to giving the poor food, but if your goal is sustainable improvement of the lives of the economically downtrodden, you need to do more than simply give them something to eat. Also, it's pretty damn insulting to a poor person to imply that their biggest problem is putting food on the table. Maybe their biggest problem, now that they've solved the food and housing issue, is helping their kids to a better life. You know what might help with that? Access to a computer and the internet at home.

    One of the most difficult barriers to entry for folks from low-income backgrounds trying to gain some upward mobility is the lack of access to technological services/devices that those of us raised in a middle-class environment consider basic tools of life. How can you move from slinging burgers or picking strawberries (definitive low class jobs) to secretarial or temp office work (entry level middle class jobs) if you don't have a computer, or access to the internet, or excel, or MS word, etc? These guys were setting out to help bridge the "digital divide" -- explicitly trying to provide access to the online resources the middle and upper classes have to people who don't normally have access to them.

    The poor have a variety of needs, don't patronize them by assuming the only need you see is the only need they have.

  12. Re:So talk to them? by ivan256 · · Score: 4, Insightful
    There are three types of IP lawyers:

    • Good, Honest IP Lawyers - These are usually unemployed, or stuck in low paying academic jobs
    • IP lawyers which profit off the fear of their clients. These guys lie about the requirements and risks of various IP issues, charge dozens of billable hours to write copyright header comments for the company's source code, tell companies that if they run their product on Linux they'll be forced to open all the code, etc. They usually also dabble in helping companies file bogus patents.
    • IP lawyers which help their clients come up with a fake cover for their real licensing motives. That's what we have here. They generate endless legalese to try and dissuade a company's customers from behaving in a way that is inconvenient for the company.


    If you want to have a "rewarding" conversation with an IP lawyer, you need to figure out which bucket they are in so you can understand the motivation behind their selected language. If you assume "logic", or "reason" are involved you may as well just bang your head against the wall.
  13. Re:Vendor lockin is a myth by ShieldW0lf · · Score: 4, Insightful

    Don't you mean "In a fascist society like this one"?

    --
    -1 Uncomfortable Truth
  14. Re:Vendor lockin is a myth by pla · · Score: 4, Insightful

    The company is taking a loss on each box at $50.

    And? Your point?

    If they unwisely chose to sell them at a loss - TFB. They have every right to change the terms and price on new units, but IMO they have committed an outright crime (computer trespass, at the very least) by forcing new firmware on already-purchased units.


    but these hackers come along and provide the service for free on the same hardware.

    Any company that hasn't learned that lesson yet, deserves their fate. If your business model critically depends on something that a third party can provide cheaper (or free), your customers will use the cheaper version.


    They showed a clear lack of political savvy

    Riiiight - Because we engineers normally have legendary people-skills and political-prowess?

    Meraki presented a problem to people who live for solving them. Politics? Gimme a break. If you add non-game rules to the puzzle, someone will find a way to take them out to achieve a better solution.