[comp.sys.apple] Upgrade fees

kevin@claris.com (Kevin Watts) (05/19/89)

From article <memo.127827@lynx.northeastern.edu>, by davidbrierley@lynx.northeastern.edu:
 
> ...  People with older versions usually must pay an early version
> penalty in order to trade in their old version for the new one.
>            ...         The question is whether or not this is a case
> of piracy on the part of the software publisher (discriminatory pricing).

I don't see that it is.  For example, compare this to a similar situation
in the automobile industry:  Every year, manufacturers release new models
of their cars, frequently at a similar price to that of the year before.
Would you seriously expect them to allow you to purchase the new 'version'
at anything other than the full retail price?

Now, I realize that there is one significant difference between cars and
software: cars cost a lot of money to build, not just to design, whereas
almost all of the cost (to the publisher) of software is in the design
(i.e. programming).  Not ALL the cost, mind; there is significant cost
in packaging, distributing, marketing, etc.  But the fact remains: when
you buy a software package, you are making a simple transaction - your
money in return for ONE COPY of that software.  I will certainly agree
that the publisher has an obligation to ensure that the software
functions essentially as desribed, and so it is reasonable for users
to expect free (or nominal cost) 'bug fix' updates.

Major upgrades are another matter.  Large portions are rewritten and
added; the functionality of packages is markedly improved (one would
hope, anyway :-)  This takes significant resources (i.e. time, money
and good old sweat - frequently from people who would rather be working
on a new project). The end result often bares little resemblance to
the older version, and could almost be considered a new program.
In these cases, it is definitely unreasable for a user to expect to
receive an upgrade gratis.  The situation is very similar to
of the new car model.  In fact, software publishers are doing
customers a favour by allowing upgrades at costs significantly
less than the full retail cost.  Of course, there are obvious
marketing reasons for doing so - I won't claim anybody's being
altruistic here.

Upgrade fees can be justified by at least the following:
	The publisher deserves a fair return for the work to
	  improve the software.
	The user has had the use of the old version for however
	  long - in fact, if upgrades were free the new purchasers
	  might claim that THEY were being discriminated against!

On the other hand, since the material cost of giving a customer
a new copy is relatively small compared to traditional products
(i.e. cars), it doesn't seem unreasonable to provide upgrades
at less than the full price - the customer has already paid
his/her share of the development costs for the older version,
upon which the new one is based.

One can quibble endlessly about how much upgrade fees should be;
ultimately I think that's up to the free market to decide.  But
it seems quite clear that one's vote should be cast by not
obtaining an upgrade that one considers overpriced - NOT by pirating
it.

The whole problem with software piracy, as opposed to traditional
theft, is that it's so easy, and the theft involved is not obvious
to everybody - you can't copy a car, you have to take it away from
somebody else if you don't want to pay for it, but you can copy software.

I expect the problem of software piracy to dimish as time goes on:
People are gradually becoming accustomed to the fact that software
piracy is THEFT, and in larger installations (corporations, schools,
etc.) site licensing is becoming more common (ironically returning
us to the days of single copies of software, highly priced, shared
by many users; on a network instead of a mainframe now, but not
much different).  The hobbyist is becoming less and less important
to software publishers - sad, but true.  And just because I work
for a major software house doesn't mean that I like to see individual
users ignored - I don't think we at Claris are guilty of that, but
I do see it happenning in the industry as a whole.  Fortunately
there will always be plenty of talented individuals freely sharing
code with other and providing mutual support.  This is especially
important in Apple // land, since it's not going to make business
sense for the major companies to support the Apple // forever.
You can gripe about all you want (I'm NOT trying to start another
round of moaning), but it will happen eventually.

This has rambled a bit.  Sorry.  I don't like to see too much of
the blame for piracy being pushed back upon developers - sure,
software is expensive, but then good software takes an enormous
amount of work to develop and market.  Believe me, I know whereof
I speak!


-- 
 Kevin Watts        ! Any opinions expressed here are my own, and are not
 Claris Corporation ! neccessarily shared by anyone else.  Unless they are
 kevin@claris.com   ! patently absurd, in which case they're not mine either.