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and many young programmers are proud to contribute their work to his projects. It's a badge of honor to be associated with either Linux or the Free Software Foundation. Programmers often list these details on their r sum s, and the facts have weight.

The reputation also helps him start new projects. I could write the skeleton of a new double-rotating, buzzword-enhanced editor, label it "PeteMACS," and post it to the Net hoping everyone would love it, fix it, and extend it. It could happen. But I'm sure that Stallman would find it much easier to grab the hearts, minds, and spare cycles of programmers because he's got a great reputation. That may not be as liquid as money, but it can be better.

The way to transfer wealth from project to project is something that the free software world doesn't understand well, but it has a good start. Microsoft struck it rich with DOS and used that money to build Windows. Now it has been frantically trying to use this cash cow to create other new businesses. They push MSN, the Microsoft Network, and hope it will stomp AOL. They've built many content-delivery vehicles like Slate and MSNBC. They've created data-manipulation businesses like Travelocity. Bill Gates can simply dream a dream and put 10,000 programmers to work creating it. He has serious intellectual liquidity.

In this sense, the battle between free and proprietary software development is one between pure giving and strong liquidity. The GPL world gives with no expectation of return and finds that it often gets a return of a thousand times back from a grateful world of programmers. The proprietary world, on the other hand, can take its profits and redirect them quickly to take on another project. It's a battle of the speed of easy, unfettered, open source cooperation versus the lightning speed of money flowing to make things work.

Of course, companies like Red Hat lie in a middle ground. The company charges money for support and plows this money back into improving the product. It pays several engineers to devote their time to improving the entire Linux product. It markets its work well and is able to charge a premium for what people are able to get for free.

No one knows if the way chosen by companies like Red Hat and Caldera and groups like the Free Software Foundation is going to be successful in the long run. Competition can be a very effective way of driving down the price of a product. Some worry that Red Hat will eventually be driven out of business by cheap $2 CDs that rip off the latest distribution. For now, though, the success of these companies shows that people are willing to pay for hand-holding that works well.

A deeper question is whether the open or proprietary model does a better job of creating a world where we want to live. Satisfying our wants is the ultimate measure of a wealthy society. Computers, cyberspace, and the Internet are rapidly taking up a larger and larger part of people's time. Television viewership is dropping, often dramatically, as people turn to life online. The time spent in cyberspace is going to be important. _1 Stallman wrote in BYTE magazine in 1986, I'm trying to change the way people approach knowledge and information in general. I think that to try to own knowledge, to try to control whether people are allowed to use it, or to try to stop other people from sharing it, is sabotage. It is an activity that benefits the person that does it at the cost of impoverishing all of society. One person gains one dollar by destroying two dollars' worth of wealth.

No one knows what life online will look like in 5 or 10 years. It will certainly include web pages and e-mail, but no one knows who will pay how much. The cost structures and the willingness to pay haven't been sorted out. Some companies are giving away some products so they can make money with others. Many are frantically giving away everything in the hope of attracting enough eyeballs to eventually make some money.

The proprietary model rewards risk-takers and gives the smartest, fastest programmers a pile of capital they can use to play the game again. It rewards the ones who satisfy our needs and gives them cash they can use to build newer and bigger models. The distribution of power is pretty meritocratic, although it can break down when monopolies are involved.

But the open source solution certainly provides good software to everyone who wants to bother to try to use it. The free price goes a long way to spreading its bounty to a wide variety of people. No one is excluded and no one is locked out of contributing to the commonweal because they don't have the right pedigree, education, racial heritage, or hair color. Openness is a powerful tool.

Richard Stallman told me, "Why do you keep talking about 'capital'? None of this has anything to do with capital. Linus didn't need capital to develop a kernel, he just wrote it. We used money to hire hackers to work on the kernel, but describing that as capital is misleading.

"The reason why free software is such a good idea is that developing software does not really need a lot of money. If we cannot 'raise capital' the way the proprietary software companies do, that is not really a problem.

"We do develop a lot of free software. If a theory says we can't, you have to look for the flaws in the theory."

One of the best ways to illustrate this conundrum is to look at the experiences of the workers at Hotmail after they were acquired by Microsoft. Sure, many of them were overjoyed to receive so much for their share in an organization. Many might even do the same thing again if they had the choice. Many, though, are frustrated by their new position as corporate citizens whose main job is augmenting Microsoft's bottom line.

One Hotmail founder told the PBS Online columnist Robert Cringely, "All we got was money. There was no recognition, no fun. Microsoft got more from the deal than we did. They knew nothing about the Internet. MSN was a failure. We had 10 million users, yet we got no respect at all from Redmond. Bill Gates specifically said, 'Don't screw-up Hotmail,' yet that's what they did."

FUTURE

David Henkel-Wallace sat quietly in a chair in a Palo Alto coffee shop explaining what he did when he worked at the free software firm Cygnus. He brought his new daughter along in a baby carriage and kept her parked alongside. Cygnus, of course, is one of the bigger successes in the free software world. He helped make some real money building and sustaining the free compiler, GCC, that Richard Stallman built and gave away. Cygnus managed to make the real money even after they gave away all of their work.

In the middle of talking about Cygnus and open source, he points to his child and says, "What I'm really worried about is she'll grow up in a world where software continues to be as buggy as it is today." Other parents might be worried about the economy, gangs, guns in schools, or the amount of sex in films, but Henkel-Wallace wants to make sure that random software crashes start to disappear.

He's done his part. The open source movement thrives on the GCC compiler, and Cygnus managed to find a way to make money on the process of keeping the compiler up to date. The free operating systems like Linux or FreeBSD are great alternatives for people today. They're small, fast, and very stable, unlike the best offerings of Microsoft or Apple. If the open software movement continues to succeed and grow, his child could grow up into a world where the blue screen of death that terrorizes Microsoft users is as foreign to them as manual typewriters.

No one knows if the open software world will continue to grow. Some people are very positive and point out that all the features that made it possible for the free OSs to bloom are not going away. If anything, the forces of open exchange and freedom will only accelerate as more people are drawn into the mix. More people mean more bug fixes, which means better software.

Others are not so certain, and this group includes many of the people who are deeply caught up in the world of open source. Henkel-Wallace, for instance, isn't so sure that the source code makes much difference when 99 percent of the people don't program. Sure, Cygnus had great success sharing source code with the programmers who used GCC, but all of those guys knew how to read the code. What difference will the source code make to the average user who just wants to read his e-mail? Someone who can't read the source code isn't going to contribute much back to the project and certainly isn't going to put much value in getting it. A proprietary company like Microsoft may be able to maintain a broad base of loyalty just by offering better hand-holding for the folks who can't program.

Free software stands at an interesting crossroads as this book is being written. It won over a few hackers in garages in the early 1990s. By the mid-1990s, webmasters embraced it as a perfectly good option. Now everyone wonders whether it will conquer the desktop in the next century.

It's always tempting for an author to take the classic TV news gambit and end the story with the earnest punt phrase, "Whether this will happen remains to be seen. "That may be the most fair way to approach reporting the news, but it's not as much fun. I'm going to boldly predict that open source software will win the long-term war against proprietary companies, but it will be a bloody war and it will be more costly than people expect. Over the next several years, lawyers will spend hours arguing cases; people will spend time in jail; and fortunes will be lost to the struggle.

While it seems difficult to believe, some people have already spent time in jail for their part in the free software revolution. Kevin Mitnick was arrested in 1995 amid accusations that he stole millions if not billions of dollars' worth of source code. There was no trial, nor even a bail hearing. Finally, after almost five years in prison, Mitnick pled guilty to some charges and received a sentence that was only a few months longer than the time he served while waiting for a trial. Mitnick was accused of stealing millions of dollars from companies by breaking into computers and stealing copies of their source code.

In the statement he made following his release, he said, ".. . my crimes were simple crimes of trespass. I've acknowledged since my arrest in February 1995 that the actions I took were illegal, and that I committed invasions of privacy--I even offered to plead guilty to my crimes soon after my arrest."

He continued, "The fact of the matter is that I never deprived the companies involved in this case of anything. I never committed fraud against these companies. And there is not a single piece of evidence suggesting that I did so."

This trespass, of course, would be breaking the rules. The irony is that in 1999, Sun announced that it was sharing its source code with the world. They begged everyone to look at it and probe it for weaknesses. The tide of opinion changed and Sun changed with it.

Of course, breaking into a company's computer system will always be bad, but it's hard to view Mitnick's alleged crimes as a terrible thing. Now that source code is largely free and everyone digs public sharing, he begins to look more like a

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