hans.gerwitz a soliloquy

Corporate rights

From Tim Cook’s internal email addressing Apple’s 2012 Supplier Responsibility Progress Report:

Our team has built an ambi­tious training program to educate workers about Apple’s code of conduct, workers’ rights, and occu­pa­tional health and safety. More than one million people know about these rights because they went to work for an Apple supplier.

In 1791, when the United States ratified the Bill of Rights, the popu­lation of “free white males of 16 years and upward” was 807,094. (The total popu­lation was more than 3 million more.)

I don’t mean to draw any conclu­sions about the ascen­dancy of corpo­ration as a gover­nance insti­tution, but do find it note­worthy that the scale of a single company’s global manu­fac­turing network is compa­rable to the birth of its nation.

Shared problems

Schaeffer warned that America’s descent into tyranny would not look like Hitler’s or Stalin’s; it would probably be guided stealthily, by “a manip­u­lative, author­i­tarian élite.”

These words were written by Ryan Lizza in his August New Yorker article about Michele Bachmann. He was making the case, accu­rately, that Francis Schaeffer was a paranoid conspiracist.

But a month later, Zuccotti Park was filled with Americans who seem very unlikely to subscribe to Schaeffer’s ideology, but are likely to agree with that warning. Occupier or Tea Partier, at least Americans seem to agree about our shared manip­u­lative, author­i­tarian élite. Eventually we may figure out that the Koch brothers and Fanjul brothers both represent social problems.

City Rights

Today I’ve learned that NYC tried to implement congestion pricing but was foiled by their state government, and that Washington state is consid­ering “allowing” cities to set speed limits on the roads that those cities build, maintain, and patrol.

America’s cities are respon­sible for over 80% of the popu­lation and 90% of the nation’s GDP. 1 Yet this is the United States, not the United Cities, and our atomic units of gover­nance are large land areas that generally have capitols in sparsely-​​populated areas. They tend to over­rep­resent rural interests and prior­itize highways and social conser­v­ative issues with a dismissive attitude toward the collec­tivist pref­er­ences of dense popu­lation centers. Rhetoric from the right often extolls the virtues of local decision making, but generally mean to empower states.

Remaining compet­itive in an increas­ingly urban world is going to require more attention to the needs of cities. Our mayors need to fight for city rights.

  1. Bruce Katz at Fast Company []

Just like the last time

Five years ago, the Motorola Razr was the top-​​selling phone. Imagine trying to sell 6 million of them today.

Jonathan Chaplin, quoted in the WSJ

This feels like a fair comparison. At its height in 2006, the RAZR held a 22% market share. The iPhone has recently been esti­mated at 27% among smart­phones.1

Yet consider how the RAZR’s popu­larity fell off. It was domi­nating the high end of a category (now called “feature phones”) that had its top end chopped off by the iPhone and the other pocket-​​tablet phones it spawned. It was designed as a skunkworks project within Motorola, and after launch the only inno­vation the Motorola product machine brought to it was new colors and sacri­ficing profit to address the mass market. Apple, in contrast, no longer needs irre­pro­ducible skunkworks to develop disruptive products. While Motorola had to lower their margins to drive RAZR sales, Apple is prof­iting hand­somely from the iPhone and will remain moti­vated to develop it.

What’s most trou­blesome about this sort of analogy, though, is the framing. Among mobile telecom­mu­ni­ca­tions industry analysts, Jonathan Chaplin is rather astute2, but is still a member of an old guard that has learned to analyze an industry that has undergone dramatic change. They are working with an obsolete model where consumers visit carrier-​​sponsored store­fronts, find a phone that matches their coat, and then settle on a service contract under the guidance of sales staff.

Today’s market is quite different. Many consumers are choosing a device based on its own features and perceive the carrier as a service provider. Each carrier is strug­gling to preserve its status as a direct marketer of handsets, and they have all failed to establish them­selves as a credible provider of services beyond wireless data and, for now, voice commu­ni­ca­tions.3

Device choice is leading consumer choice4 and arguably the most compelling feature is appli­cation platform. Which is why I don’t advise much attention to analysts that are veterans of the telecom industry, who have only managed to add “OS” to their box of phone features. Listen, rather, to those who see plat­forms and under­stand, for example, that the Amazon app store is a platform that has some cross-​​benefit with Google’s but should not be simply confounded as “Android”.

Except even these voices are lazy and want to believe this market will be a repeat of the Mac vs. Wintel history, or the iPod vs. everyone else history. Better to just remain suspi­cious of historical analogies.

  1. http://blog.nielsen.com/nielsenwire/?p=28237 []
  2. He’s one of very few who forecast Verizon’s iPhone sales growing from their own customer base, rather than AT&T turnover. []
  3. Which is hard in a world where other business models support “free” services, and when your orga­ni­zation is built only for servicing a utility and reselling. But that’s another article. []
  4. Why else would Sprint attest that iPhone-​​seeking is their #1 attrition driver? []

I should patent this idea.

There has recently been much attention to the problem of software patents. I think Marco Arment probably best summed the prevailing wisdom: The USPTO has repeatedly shown that they do not possess the ability to issue software patents respon­sibly. This isn’t the agency’s fault — it’s impos­sible in practice.1 and the current reform is likely to only exac­erbate the issue by rewarding first-​​filing over invention.

I used to agree with a talk Paul Graham gave at Google in 2006; the system had created a tense stalemate that didn’t punish entre­pre­neurs too much, but patent trolls were upsetting the balance. Today, I fear, we’re seeing the result of that, with large and reputable players sniping at each other in Bush-​​style preëmptive strikes.

So the internet is abuzz with calls to end (or restrain) software patents. But what’s “software”? It seems algo­rithms are behind most things patented, even predating the concept of software. Is Intel’s new chip-​​level random number generator just software expressed in circuitry? The line between software and hardware is not one we can simply entrust the USPTO with, and letting the courts decide only re-​​frames the problem we already have.

It may be too late to return to the cold war of the past, but maybe we should try, and disable patent trolling as an industry. Award patents only to humans (not corporate “persons”) and do not allow transfer except via inheritance.

  1. “Software patents”, Marco.org, 2010-​​03-​​06 []
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