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Re: FSF : lackeys of their corporate masters

From: Stefaan A Eeckels
Subject: Re: FSF : lackeys of their corporate masters
Date: Fri, 7 May 2004 00:50:36 +0200

On Thu, 6 May 2004 16:20:31 +0000 (UTC)
"Bernd Jendrissek" <> wrote:

> In article <> Stefaan A
> Eeckels <> wrote:
> >Either the investment can be recouped by the sale of the
> >original item, or it needs to be spread over the sale of
> >a number of copies.
> You can't really "spread" the investment over the sale of a number of
> copies - the investment is a sunk cost that you can't "trade in" for
> something else.  Once it's made, it's made.

Granted, but the original investment will have to be
factored into the price of each copy. The larger the
number of copies, the lower the price of each can be.
If not enough copies are sold, money will be lost, reducing
the ability of the producer to invest in a new project.

> You have to fund it out of your *economic profits*.

Which are the revenues from the sale of a number of copies 
minus the original investment, the cost of producing the
copies, and a provision for the warranty and/or after sales

> >In the latter case, if not enough revenue can be derived from the sale
> >of copies (because someone else makes and sells them), then it might
> >not be economically possible to produce the original.
> You might find (or just predict, rather) that the equilibrium price
> would be below what you need to be able to make a profit out of which,
> *once pooled*, your mortgage on the investment must be paid.

I'm not sure I understand what you say here. 
In any case, if the cost of producing a perfect copy is
sufficiently low, and doesn't require access to the
original (a CD with just a program would qualify), the
creator is at a serious disadvantage if he needs to cover 
the costs of producing the original out of the sale of copies. 

"What is stated clearly conceives easily."  -- Inspired sales droid

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