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More Reasons Why We Need the Intercommons
May-June 2002

Presented at the public launch of the Intercommons Initiative, May 16, 2002

We stand at an interesting intersection in history. From one direction we can see the new digital commons that is the Internet bringing great potential for open communication and global collaboration to each of us. Coming in from the other direction, the forces of strong commercial monopoly and governmental action or inaction threaten to collide head on with the vision of that open digital commons. From the long term extension of copyright to the mishandling and misapplication of software patents, the very right to be creative and inventive is at risk. Efforts such as the Creative Commons seek to redress the copyright issues, while the Open Source Movement fights monopoly control through patents using its shared stakeholder licensing of open code.

We believe there is an important missing piece in these efforts to protect the digital commons: the safeguarding and strengthening of open marketplaces. In human communities throughout history there has always been a marketplace. In ancient Greece this was known as the "agora" and it served not only as a place to transact business but as an important social and cultural institution. In virtually every human community the market was located at the very heart of a town or village, next to governmental and spiritual institutions. So what is the agora for the software community?

The software business has always prided itself in its openness and in operating like a bazaar, always giving space for new entrepreneurs with a good idea. Following the recent disastrous experience of 90s style venture capital speculation many entrepreneurs are going "back into the garage" to continue their craft without the encumbrance of "professional" money and management. However, they will emerge from those garages into a very different world: one dominated by a few huge monopoly players and a world where a tangled web of software patents means that any opponent with a large enough war chest for legal action can shut down or force an acquisition of any business. With this tectonic shift in how business is done in software, the openness and pace of innovation will be drastically affected.

There is one clear alternative to this trend, the Open Source movement. This movement is gaining momentum and has garnered key corporate and government supporters and enough market share to come under attack by monopoly powers. However, if you wanted to obtain open source products or services, where would you find them? Word of mouth has always been the key purveyor of information in the software community and this is especially true in the Open Source marketplace. The very distributed nature of Open Source means that there are even more channels of information and flows of support, tools and innovative ideas which can lead to great confusion for potential users and developers. As this community comes into increasing challenge from closed source monopolies, it might be wise to consider ways to present the open source community and what it offers in a more coordinated way.

We propose to create a well-designed many-to-many marketplace for the software industry, with a special emphasis on supporting open source tools and people, thereby supporting the public interest in an open digital commons. So how could such a marketplace function and how would it be organized? There are two inspiring precedents that inform our efforts. The first is familiar to most of us, the online auction service eBay, which has shown that a large, smoothly functioning commercial commons can be bootstrapped from a few simple rules and grown entirely through the Web. The second is an older and less well known example which we will describe next.

Dee Hock, in his design of VISA International over thirty years ago mapped out a novel organizational structure which he later dubbed "chaordic" from a combination of "chaos" and "order". Starting from a clear statement of purpose and a few simple rules, VISA grew to be the largest commercial enterprise on Earth (with over 2.5 trillion dollars in business transacted annually). VISA made ubiquitous a new form of virtual currency (credit card charges) which today powers a big proportion of the world's economy from tiny businesses to huge banks. The key novel properties of VISA are found in its stakeholdership and governance. VISA exists to serve the interests of its members and is organized as a for-profit corporation that issues no stock, employing a membership structure instead. Each member has equal rights to organize at any level of VISA. The ultimate goal that Dee had was that anyone materially or otherwise affected by VISA should be able to have a stake in it and a say in its governance.

So here we have two successful predecessors as models, eBay for an online marketplace implementation and VISA for stakeholdership and governance. Dee challenges us today to visualize new forms of organization for the benefit of humankind, warning us that it is the malfunction in our organizations that most threatens our survival and endangers the biosphere. We seek to answer that challenge and build a new organization that will protect the innovative and open spirit of the software business by helping open source and other independent developers and other free agents build their individual economic power. At the same time, this organization will be owned and governed by all who are materially affected and wish to have a role. Lastly, the many to many exchange of financial, intellectual and social power through the new organizations' digital commons will create substantial collective resources which can be put into service of the entire membership.

Protecting the ability of the software business to innovate and grow promotes the greater mission of an open digital commons, and on that foundation rests the ability for individuals to be guaranteed free speech, privacy, and control of their identity. The health of our civilization and its institutions may be better served by the civic, not commercial control of Cyberspace.

The organization we propose here today is the Intercommons, the Internet Commons. More detailed information can be found below on the development of the Intercommons concept, its inspiration, and current collaborations. In addition, our team has created a mock-up web site illustrating how the Intercommons marketplace might function. We invite you to join this effort in any way you might see you could contribute. Please feel free to contact us to become part of our team, or join our mailing list for occasonal news of the Intercommons as it develops.


More about the Intercommons

The Intercommons is proposed to be a for-profit, non-shareholder membership corporation which operates a digital commons marketplace for the rights to the exchange of value. Conceived as a combination of an online auction service with the "chaordic" organizational structure of VISA International, Intercommons.com will provide the ability for member organizations and individuals to post the right to use property, that is, to obtain or make copies of tools or products of creative expression, utilize services, or obtain or trade other objects of value. Members would submit with each right a set of conditions for use, which may stipulate a financial cost or no cost, credits or other terms of use, barter arrangements, or requests for collaboration.

Members do not have to offer their rights exclusively to the Intercommons market and they are free to opt in or opt out rights to their offered value at any time. Members can apply for a number of services to go along with the offered property including pre-paid legal services from sister organization Intercommons.org, or value-added service agreements. Members can engage in collaboration leading to new innovation, standards or other creative projects under the auspices of the Intercommons.net developer network.

Please take a look at the following reference web sites which lay out the purpose and interlocking function of the three proposed parts of the Intercommons:

,NET .COM .ORG

1. Marketplace Commons (Intercommons.com)
2. Legal/Intellectual Property Commons (Intercommons.org)
3. Developer Commons (Intercommons.net)

The Intercommons is a proposed complementary complex of organizations designed to safeguard and promote creativity, innovation, free speech and commerce on the Internet. Next, please navigate the following mock-up of the Intercomons Marketplace as a demonstration of the marketplace (.com) component.

Visit the Intercommons Marketplace Mock-Up

Revenue Model: Supporting the Marketplace

Initially the Intercommons marketplace would derive revenue from a simple listing fee, and no fee or entry of identity would be required for browsers of the marketplace. Over time the Intercommons would build up a whole set of associated services for which it could derive additional income, such as: provision of payment services, and pre-paid legal services and standard contract generation to enable buyer/seller and co-development relationships. Pre-paid legal services and legal research into innovating instruments would be handled by a team working with Intercommons.org. Co-development relationships would be enabled and supported by infrastructure established at Intercommons.net. The Intercommons marketplace would also develop a system to "book inventories" of licenses or rights to acquire licenses or services and generate collateral against which to borrow should additional capital needs arise. Members can choose to donate the sales of licenses or services to the Intercommons or allow the Intercommons to take a commission. Because it is a member-owned organization, members can suggest and must approve new means of deriving revenue, and levels of fees that the Intercommons levies. All income would be reinvested into the Intercommons to better serve its membership. All financial details including income, expenses, and salaries would be transparent and regularly published to the membership.

The Intercommons will be active in soliciting individuals and organizations to support its efforts with in-kind contributions (work/trade) and financial philanthropy.

The Intercommons will remain a privately held corporation. No venture investors would be permitted to participate as the Intercommons will never issue stock. The Intercommons will never list itself on the captial markets nor raise money in any public offering.


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