Steve Ballmer

It gets translated to machine code. That machine code ends up running and it's basically electrons. It's voltages that are flipped up and down. And so what about that are we trying to protect? Ultimately, the way it gets litigated through some case law from court cases is that the source code is a copyrightable creative work that is expressed through some sort of tangible medium.

That's the important thing about copyright law. It's a creative work expressed through a tangible medium. So a book, the creative work is the words and the tangible medium is printed on paper. And so with software, it actually took until 1980, Congress...

That's the important thing about copyright law. It's a creative work expressed through a tangible medium. So a book, the creative work is the words and the tangible medium is printed on paper. And so with software, it actually took until 1980, Congress...

changed the law we'll put a link in the show notes to like the literal congressional change that happened and it is in title 17 copyrights chapter 1 subject matter and scope of copyright in 1980 they include a defined term which is a quote-unquote computer program is a set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain result and

changed the law we'll put a link in the show notes to like the literal congressional change that happened and it is in title 17 copyrights chapter 1 subject matter and scope of copyright in 1980 they include a defined term which is a quote-unquote computer program is a set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain result and

And once you have that passed by Congress, codified into law, you now have the standing legal framework that all the whole computer industry used going forward, in particular the software industry, a computer program is copyrightable work. Wow, I didn't know all that. That's awesome. It's totally crazy how recent that is.

And once you have that passed by Congress, codified into law, you now have the standing legal framework that all the whole computer industry used going forward, in particular the software industry, a computer program is copyrightable work. Wow, I didn't know all that. That's awesome. It's totally crazy how recent that is.

But when you think about it, why would that have any legal, you know, software is such an abstract idea. Before, the whole business model of computers was good luck just replicating an IBM PC and everything that comes with it. You don't need any legal standing. But if you're going to pursue this software-only business model, what's the protection around your abstract product?

But when you think about it, why would that have any legal, you know, software is such an abstract idea. Before, the whole business model of computers was good luck just replicating an IBM PC and everything that comes with it. You don't need any legal standing. But if you're going to pursue this software-only business model, what's the protection around your abstract product?

This is the first time. Right. Certainly to build like a legitimate business around it. The other thing that's useful to know is when you're selling an IBM PC, you're literally selling a PC to a customer the same way that when I'm selling you this glass from Crate and Barrel, I am selling you the glass and the glass is now yours. I've transferred property to you. Software is not that.

This is the first time. Right. Certainly to build like a legitimate business around it. The other thing that's useful to know is when you're selling an IBM PC, you're literally selling a PC to a customer the same way that when I'm selling you this glass from Crate and Barrel, I am selling you the glass and the glass is now yours. I've transferred property to you. Software is not that.

So the whole world of software is built on a license agreement. So the source code, that computer program, the actual right of that is retained by the creator, and you license the copyright to your customer to be able to use that on their machine. So there's this dual idea that Computer software is copyrightable and you can grant a license under certain conditions for customers to use it.

So the whole world of software is built on a license agreement. So the source code, that computer program, the actual right of that is retained by the creator, and you license the copyright to your customer to be able to use that on their machine. So there's this dual idea that Computer software is copyrightable and you can grant a license under certain conditions for customers to use it.

That is the legal framework for which the next 50 years of technology at large would operate under. For the moment, though, they got a piracy problem.

That is the legal framework for which the next 50 years of technology at large would operate under. For the moment, though, they got a piracy problem.

machine right should be a royalty right the problem is that is not the deal that they had with mitts right or framed differently instead of saying hey consumer do you want to buy something else too and make a new purchase decision they should be saying hey computer manufacturer we make your thing actually useful so pay us for it yes so during 75 and 76

machine right should be a royalty right the problem is that is not the deal that they had with mitts right or framed differently instead of saying hey consumer do you want to buy something else too and make a new purchase decision they should be saying hey computer manufacturer we make your thing actually useful so pay us for it yes so during 75 and 76

Oh, and the press just latches on to them. Whenever Bill has a leaked memo or something where he talks about all this war terminology, those all become headlines.

Oh, and the press just latches on to them. Whenever Bill has a leaked memo or something where he talks about all this war terminology, those all become headlines.

Yep. There's the misaligned incentive.