Publish 'Open Letter to Hobbyists'

Setting

Micro-Soft's BASIC is wildly popular, but most users are pirating it. At a Homebrew Computer Club meeting, a paper tape of BASIC was copied and distributed for free. Bill Gates is furious because without revenue, they cannot fund development of better software. The concept of "software as a product" distinct from hardware is not yet accepted.

People

• Responsible: Bill Gates
• Approvers: Bill Gates
• Consulted:
• Informed: Homebrew Computer Club, MITS

Alternatives

Option A: Ignore Piracy (Hardware-first mindset)

Pros:

• Builds massive user base.
• Avoids alienating the hobbyist community.

Cons:

• Zero revenue.
• Cannot hire engineers to improve the product.
• Sets a precedent that software is free.

Option B: Demand Payment and Intellectual Property Rights

Pros:

• Establishes the business model of the software industry.
• Funds future development.

Cons:

• PR backlash (Computer hobbyists hated this).
• "Greedy" reputation.

Decision

Chosen: Option B

Rationale: "Hardware must be paid for, but software is something to share. Who cares if the people who worked on it get paid?" Bill argues that good software requires professional full-time developers, which requires a sustainable business model.

Consequences

Positive

• +Validated the software licensing model.
• +Eventually accepted by the industry.
• +Allowed Microsoft to grow into a real company.

Negative

• −Bill Gates labeled as a villain by some early hobbyists.