OpenRoyalties

Finally, after years thinking that "it is possible, it can be achieved, it can be done", I think I've found a financial model to serve as basis for all OpenSourceSoftware and OpenHardware activities... one that promotes less conflict between free-software and commercial initiatives...

When I build a product using someone else design (open design), how much should be the distribution of the profits, how much should go to the author and how much should I keep to myself?

In my mind, I was looking for something that represent the MOST STABLE POSSIBLE values, bringing the best benefit for all parties on the equation. There MUST be something that the author feels compensate and the producer (the ones that build and sell the commercial product) feels stimulated to work with...

For years I was looking at the subject and feeling that it represents a barrier for the progress of the OpenSource Movement, and a tremendous waste for businesses...

Yesterday, FINALLY, I believe I had reach the "light" on the subject...

Brave pioneers are opening news territories and testing ideas about how to do it... like:

Kindle offer 70% to authors and keep 30% for itself...
Apple offer 70% for developers and keep 30% for itself...

Quirky offer 30% to authors of ideas, manufacture, sells and keep 70% for itself...

And, for OpenHardware (and I think OpenSource Software too) the Winner Is...

It maybe in front of your eyes all the time: ARDUINO ROYALTIES MODEL...

The following worksheet on Google Docs I describe the Arduino 10% Royalties Model, and you can test different values there to see how much percent it will give you, depending on the profitability model that you chooses...

https://docs.google.com/spreadsheet/

The worksheet uses Chris Anderson Rule of 50% Profitability Model, as expressed in his book, Makers - The Next Industrial Revolution... (you can test others values to see how much it impact distribution of values), in combination with the Arduino Royalties Model...

By choosing to use Anderson's 50% Profit Rule, you end up keeping 70% of the profit on the sales for yourself, and paying the other 30% to the author of the design you are using...

Using Richard Kock's thinking, Arduino Royalties Model is something like a GOOD BUSINESS GENS...

And this is the way I believe we can go and seek for success, by adopting Arduino Royalties Model in the "genetics" of good products and services that uses OpenSoftware and OpenHardware as tools...

I think that this model is a solid and tested foundation to build upon, adapting it if necessary to particular circumstances...

After all, this is, I think, the correct thinking; "it is not success that will allow you to build good gens, but the use of good gens that will generate success". (Richard Dawkins).

So, when using others people design or when someone else wants to use my design, this Arduino Royalties Model with Chris Anderson Profitability Rule can be a strong candidate for a rule to follow...

Valter

You can find more about Quirky Model here:
http://www.quirky.com/home/terms