Tuesday, 30 November 2010

Wishing upon a star

 

Geppetto, the old toy maker from the Pinocchio tale, wished so much to have a son and has prayed so many times for it, that after having built his puppet, it was granted life. Lovely tale…

Lovely tale that came to our minds after learning that Microsoft might be seeing potential revenue in selling (licensing) their patents in smartphone technology.

It appears that the Big Ape has repeated so much his wish for “developers” that he finally has been turned into one of them. True that, after all, a software company is fundamentally a developer, but we are not that sure that the original idea was not to retain IP (Intellectual Property) for the core value of their software, and have other smaller companies developing stuff around that.

If one repeats something too many times, he might turn into that, it seems… | Nintendo Wii

Of course they can always keep on improving the patents… or making it for more patents… but others could too, and, isn’t this strategic shift revealing lack of confidence in their own product line?

Careful too about another aspect: Licensing IP via patents can be a big revenue stream, but it is too much of a one-shot business that would dry up relatively quickly, while the overall OS business through the expanding smartphone market would be more healthy and stable. Bad sign, in our opinion.

 

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