That didn't take long.
After a decade of astonishing growth -- from zero to $10 billion
annual revenues in just ten years -- Google has begun to do
a little bit of evil in the world. That is, the idyllic situation
described by CEO Eric Schmidt a couple of years ago obtains
no longer. Google has acquired some real enemies.
The World Association of Newspapers (WAN), for example.
Representing 18,000 newspapers and 73 national newspaper associations,
WAN last week announced a campaign to persuade European Union
commissioners to crack down on Google's search engine news
service. A spokesman said, "We're dealing here with
basic theft."
The American Association of Publishers, for another. They
went to court last fall to stop Google's plan to create an
online library by digitizing the entire book collections of
three major universities (Stanford, Harvard and the University
of Michigan) as well as the public domain works of Oxford
University and the New York Public Library.
"Google is seeking to make millions of dollars by freeloading
on the talent and property of authors and publishers," said
Pat Schroeder, former Congresswoman and president of AAP.
Or The Author's Guild, for that matter. Their lawsuit alleging
"massive copyright infringement" was filed last summer.
All these issues have to do with the intricate social choice
that we call intellectual property. They'll now be slowly
and expensively ventilated in adversarial proceedings. And,
in the end, the rules will be refined, if not necessarily
improved.
Before the story gets going, therefore, it makes sense to
go back over the technological advances and corresponding
changes in industrial organization that are at the heart of
the lawsuits, beginning with the most obvious question.
What is Google? How does it work? And what does
that famous motto -- "Don't Be Evil" -- actually mean?
The single most important thing to understand about Google
is that its famous search engine is a specimen of middleware. Often simply defined as the "/" in client/server architecture,
middleware programs are those that form a mediating software
layer between operating systems and myriad server-based applications.
Middleware programs are ubiquitous in the nascent "age
of the cloud" - tens of millions of computers linked
together around the world in a network so decentralized with
respect to the uses to which its data can be put as to intuitively
resemble water vapor. But the term is sufficiently unfamiliar
that it doesn't appear in either of two fine (and very different)
books about Google, one
by Washington Post reporter David Vise, the other
by former magazine editor (Wired
and The Industry Standard)
John Battelle.
The middleware concept did appear, however -- and with devastating
effect -- in the epic US government antitrust suit against
Microsoft. And that action is the key to understanding all
the rest. For the last middleware company to become famous
was Netscape, the firm that in the early 1990s popularized
the Web browser as the "next new thing."
And it was when Microsoft realized that, by permitting the
development of server-based PC applications that would be
universally-available, the Netscape browser had the potential
to destroy its Windows monopoly on computer operating systems
(to "commoditize" its operating systems, the way its operating
systems had become more important than the machinery that
they ran), that Microsoft moved to crush Netscape and substituted
a browser of its own devising.
That brought the Antitrust Division of the Justice Department
down upon Microsoft with alacrity. In an epic trial, a Federal
judge found the company guilty of anti-competitive behavior
and ordered it broken up -- before, in a highly-charged political
atmosphere, an appellate court reversed his order and the
newly-inaugurated Bush administration quietly withdrew the
demand.
Thus it was in the 1990s that Microsoft came to be known,
far beyond the confines of Silicon Valley, as "the evil empire."
The age-old conceit of bottom-up democratic participation
vs. top-down totalitarian control received a pop-culture boost
in the 1970s from the movie "Star Wars." The phrase itself
was employed in 1983 by US President Ronald to describe the
Soviet Union. Hackers soon appropriated it to describe
Microsoft's business practices.
In the case of software, "evil" in this view consisted primarily
of the use of tight controls and strong-arm methods
-- everything from shrink-wrap to deep pockets ("I can buy
20 percent of you or I can buy all of you or I can go into
this business myself and bury you") to the highly-developed
tactic of building out the Windows platform as rapidly as
possible -- to subdue competitors as they emerged, including
Lotus 1-2-3, WordPerfect and Netscape, and thereby maintain
control of the computer desktop.
Indeed, Microsoft used every trick in the book (and invented
some new ones) in order to extend its reach and collect a
rent on its aggressively-defined intellectual property. (This
standardization wasn't all bad, of course: it meant that developers
at least knew where they stood. They quickly devised a staggering
array of new applications for computers.)
And it was in these circumstances, too, that Sergey Brin
and Larry Page met as Stanford undergraduates, started Google,
and adopted "Don't be evil" as their motto. These two men,
whose history is fully as interesting that of Bill Gates,
are at the center of both Vise's and Battelle's books.
Both are the children of university professors. The mothers
of both were computing and technology professionals as well.
Brin's parents emigrated from the former Soviet Union with
a Jackson-Vanik visa in 1979, when he was six. Page, also
born in 1973, grew up in Lansing, Michigan. Both were
immersed not just in computer technology from an early age,
but in the culture of science, with its emphasis on the principle
of disinterestedness and the etiquette of citation rather
than on the patent and the royalty stream.
In these circumstances, the motto "Don't be evil" translated
fairly precisely into the injunction, "Don't be like Microsoft."
Where Microsoft charges for its software, Google gave its
away. Where Microsoft sells software for PCs (as Netscape
had hoped to do for servers), Google makes its money
offering services and selling advertising. Where Microsoft
remains essentially a publishing company, Google specializes
in database management through its awesome collection of servers.
As the veteran analyst Tim O'Reilly puts it, in an especially
lucid description
of the new business models on the site of his Sebastopol,
California publishing company, "This time, though, the
clash isn't between a platform and an application, but between
two platforms, each with a radically different business model:
On the one side, a single software provider, whose massive
installed base and tightly integrated operating system and
APIs give control over the programming paradigm; on the other,
a system without an owner, tied together by a set of protocols,
open standards and agreements for cooperation....
"Windows was a brilliant solution to the problems of the
early PC era. It leveled the playing field for application
developers, solving a host of problems that had previously
bedeviled the industry. But a single monolithic approach,
controlled by a single vendor, is no longer a solution, it's
a problem. Communications-oriented systems, as the internet-as-platform
most certainly is, require interoperability."
The Internet, in other words, has already triumphed over
the old Microsoft Windows system, thanks to middleware of
many different sorts (eBay, Amazon, Napster and the Apache
software that runs most Internet servers are middleware, too).
Open source operating systems for computers, such as Linux
and Unix will do the rest. That is what all the excitement
about Web 2.0 and Internet2 is about.
Not that Microsoft is going to disappear, or even become a
shrinking violet. But never again will the company be
the technology's dominant force. Just as it supplanted
IBM Corp. in the 1980s, Microsoft itself is being surpassed.
For all the differences between the Google ethos and that
of Microsoft -- and they are very great -- the common denominator
between Brin, Page and Gates is a certain arrogance.
It is a natural concomitant, perhaps, of becoming the richest
men in the world in one's 30s.
Microsoft took a position at one extreme of the spectrum
of possible protections of property rights. Google has taken
the other end of the argument. Gates thinks that information
should be expensive, because it is costly to create. (Early
in his career he fulminated against software-sharing in a
famous "Open Letter to Hobbyists.")
Brin and Page, on the other hand, think that information
should be free, or nearly so, since, once it has been created,
sharing it costs almost nothing. They aim, they say, to "organize
the world's information and make it universally accessible
and useful," and to hell with property rights. (Publishers
assert that Google has been remarkable for its unwillingness
to negotiate requests for reasonable copyright safeguards.)
It is an old truth that we become what we despise. Editorialists
at The Financial Times
suggested last week that it may be time for a new mantra at
Google: Don't be arrogant. Here's slightly different
idea: to acquire a little humility, Brin and Page should start
a newspaper of their own, or maybe several newspapers, instead
of skimming the cream off the front pages of all the others.
As Microsoft discovered with its high-end webzine
Slate, they will find
that competing successfully the news business is harder than
it looks.
For all its high-spirited good works -- organizing protein-folding
analyses, private space races, micro-lending in Bangladesh
-- Google to this point has made money by taking advantage
of long-standing activities of many disparate communities
previously organized to turn information into a reasonable
approximation of truth. Now it is time for the search engineers
to return the favor -- to recognize the legitimate claims of
professional societies, research universities, authors, publishers,
newspapers on whose success their work is based.
No less an authority than Sergey's mother, Eugenia Brin,
wants her mogul son to complete his Ph.D. (according to Washington
Post Reporter Vise). She is right. It is time for Google to
stop talking about information and start thinking about the
economics of knowledge.