The economic argument goes like this: “I want to get rich”—usually described inaccurately as “making a living”—“and if you don’t allow me to get rich by programming, then I won’t program. Everyone else is like me, so nobody will ever program. And then you’ll be stuck with no programs at all!” This threat is usually veiled as friendly advice from the wise.
I’ll explain later why this threat is a bluff. First I want to address an implicit assumption that is more visible in another formulation of the argument.
This formulation starts by comparing the social utility of a proprietary program with that of no program, and then concludes that proprietary software development is, on the whole, beneficial, and should be encouraged. The fallacy here is in comparing only two outcomes—proprietary software versus no software—and assuming there are no other possibilities.
Given a system of software copyright, software development is usually linked with the existence of an owner who controls the software’s use. As long as this linkage exists, we are often faced with the choice of proprietary software or none. However, this linkage is not inherent or inevitable; it is a consequence of the specific social/legal policy decision that we are questioning: the decision to have owners. To formulate the choice as between proprietary software versus no software is begging the question.
The Argument against Having Owners
The question at hand is, “Should development of software be linked with having owners to restrict the use of it?”
In order to decide this, we have to judge the effect on society of each of those two activities independently: the effect of developing the software (regardless of its terms of distribution), and the effect of restricting its use (assuming the software has been developed). If one of these activities is helpful and the other is harmful, we would be better off dropping the linkage and doing only the helpful one.
To put it another way, if restricting the distribution of a program already developed is harmful to society overall, then an ethical software developer will reject the option of doing so.
To determine the effect of restricting sharing, we need to compare the value to society of a restricted (i.e., proprietary) program with that of the same program, available to everyone. This means comparing two possible worlds.
This analysis also addresses the simple counterargument sometimes made that “the benefit to the neighbor of giving him or her a copy of a program is cancelled by the harm done to the owner.” This counterargument assumes that the harm and the benefit are equal in magnitude. The analysis involves comparing these magnitudes, and shows that the benefit is much greater.
To elucidate this argument, let’s apply it in another area: road construction.
It would be possible to fund the construction of all roads with tolls. This would entail having toll booths at all street corners. Such a system would provide a great incentive to improve roads. It would also have the virtue of causing the users of any given road to pay for that road. However, a toll booth is an artificial obstruction to smooth driving—artificial, because it is not a consequence of how roads or cars work.
Comparing free roads and toll roads by their usefulness, we find that (all else being equal) roads without toll booths are cheaper to construct, cheaper to run, safer, and more efficient to use.[2] In a poor country, tolls may make the roads unavailable to many citizens. The roads without toll booths thus offer more benefit to society at less cost; they are preferable for society. Therefore, society should choose to fund roads in another way, not by means of toll booths. Use of roads, once built, should be free.
When the advocates of toll booths propose them as merely a way of raising funds, they distort the choice that is available. Toll booths do raise funds, but they do something else as welclass="underline" in effect, they degrade the road. The toll road is not as good as the free road; giving us more or technically superior roads may not be an improvement if this means substituting toll roads for free roads.
Of course, the construction of a free road does cost money, which the public must somehow pay. However, this does not imply the inevitability of toll booths. We who must in either case pay will get more value for our money by buying a free road.
I am not saying that a toll road is worse than no road at all. That would be true if the toll were so great that hardly anyone used the road—but this is an unlikely policy for a toll collector. However, as long as the toll booths cause significant waste and inconvenience, it is better to raise the funds in a less obstructive fashion.
To apply the same argument to software development, I will now show that having “toll booths” for useful software programs costs society dearly: it makes the programs more expensive to construct, more expensive to distribute, and less satisfying and efficient to use. It will follow that program construction should be encouraged in some other way. Then I will go on to explain other methods of encouraging and (to the extent actually necessary) funding software development.
The Harm Done by Obstructing Software
Consider for a moment that a program has been developed, and any necessary payments for its development have been made; now society must choose either to make it proprietary or allow free sharing and use. Assume that the existence of the program and its availability is a desirable thing.[3]
Restrictions on the distribution and modification of the program cannot facilitate its use. They can only interfere. So the effect can only be negative. But how much? And what kind?
Three different levels of material harm come from such obstruction:
• Fewer people use the program.
• None of the users can adapt or fix the program.
• Other developers cannot learn from the program, or base new work on it.
Each level of material harm has a concomitant form of psychosocial harm. This refers to the effect that people’s decisions have on their subsequent feelings, attitudes, and predispositions. These changes in people’s ways of thinking will then have a further effect on their relationships with their fellow citizens, and can have material consequences.
The three levels of material harm waste part of the value that the program could contribute, but they cannot reduce it to zero. If they waste nearly all the value of the program, then writing the program harms society by at most the effort that went into writing the program. Arguably a program that is profitable to sell must provide some net direct material benefit.
However, taking account of the concomitant psychosocial harm, there is no limit to the harm that proprietary software development can do.
Obstructing Use of Programs
The first level of harm impedes the simple use of a program. A copy of a program has nearly zero marginal cost (and you can pay this cost by doing the work yourself), so in a free market, it would have nearly zero price. A license fee is a significant disincentive to use the program. If a widely useful program is proprietary, far fewer people will use it.
2
The issues of pollution and traffic congestion do not alter this conclusion. If we wish to make driving more expensive to discourage driving in general, it is disadvantageous to do this using toll booths, which contribute to both pollution and congestion. A tax on gasoline is much better. Likewise, a desire to enhance safety by limiting maximum speed is not relevant; a free-access road enhances the average speed by avoiding stops and delays, for any given speed limit.
3
One might regard a particular computer program as a harmful thing that should not be available at all, like the Lotus Marketplace database of personal information, which was withdrawn from sale due to public disapproval. Most of what I say does not apply to this case, but it makes little sense to argue for having an owner on the grounds that the owner will make the program less available. The owner will not make it