Category: Marketing/Business

The Social Customer Manifesto has a post about Lego(R) putting up a notice if you go to legos.com that the name that people have commonly referred to its products might not be preserving the brand. We are not supposed to call them Legos. They are Lego bricks or Lego toys.

The comments also mention that the use of the word Google as a verb also apparently dilutes the Google brand.

Hah. Hahahahahaha.

Come on. It isn’t like someone will call a competing product legos (lowercase). It isn’t like I will tell someone to Google something and watch them bring up Yahoo! or MSN without a second thought. How does it dilute your brand when they use the name for YOUR products?

When people say want to eat Chef Boyardee, are we going to go find them and teach them to not dilute the brand because they are really eating a Chef Boyardee food product? What about when someone says “Check out my new Nikes” when they are referring to their Nike shoes? Doesn’t “Dude, you’re getting a Dell” dilute the Dell brand since you are really getting a Dell PC?

Of course, there are some concerns. People DO call competing products Legos even though Lego doesn’t make them. People do refer to all tissue paper as Kleenax. People xerox copies of paper on non-Xerox copiers. So maybe it isn’t so funny.

But I still think of them as Legos and I’ll still google.

10 Steps to a Hugely Successful Web 2.0 Company has some of the same points I’ve read in many different places distilled into a single list. It touches on topics that have been covered in greater detail on blogs like Creating Passionate Users, such as the idea that people like to tell friends about cool things to show that they are in the know.

In The Escapist’s Casual Friday came the article So What’s It Worth To You. I agree with the main point. Voting with your dollars is important. When you pirate a good game, you basically send the message that the game wasn’t worth paying for and so more good games won’t get made. I appreciate Blancato pointing out that major piracy that involves companies trying to make a quick buck are the major problem, not necessarily Joe Schmoe Gamer who got a copy from his friend. I also like how Blancato mentioned that draconian anti-piracy measures will turn off paying customers. After all, if you pay for something and have to jump through hoops to play it, but the person who pirates a copy gets to just play it sans hoops, isn’t there something wrong?

All well and good, but I am still getting pretty upset that people will equate software piracy with theft. The two are not the same. Even the courts say that they are not the same. The only ones who claim they are the same are the companies who gain an advantage in making you think that copyright infringement is the same as theft. Oh, and the people who hear this kind of thinking and start to think that way as well.

One problem is that people like to make analogies with things that just aren’t like software. People compare software to cars. If I take a car, that’s theft, so why isn’t it theft when I “take software”?

It’s because you aren’t preventing someone else from “taking” software. When I take a car, there is one less car for the car dealership to sell. That’s actually stealing something. When I “take” a game, it’s theft if I literally steal the box from the retail shelf. If I instead make a copy of a CD from a friend, I didn’t steal anything, and no court will ever allow the prosecution to claim it was an actual theft. When someone makes a copy of a game or music CD, it’s illegal because of a violation of copyright. It’s an infringement on the copyright holder’s rights. Of course, if the ESA, MPAA, and RIAA all complained about the “rise in copyright infringement” it wouldn’t invoke as much feeling as “they are stealing from us!”

Software piracy isn’t as cut and dry as some would have you believe. The way some people argue it, when someone pirates a copy of a game or movie or music, it directly equates to lost revenue. It would be true if every pirated copy would be paid for by the infringer, but in reality, come on! Let’s ignore the real criminals who make many copies for the purpose of selling them since they are clearly a separate case. Let’s focus on the casual pirate. He/she might make copies of every game simply because he/she likes the idea of collecting all these games. Take away the possibility of pirating those games, and I really don’t think this pirate will have the ability to pay for it all. This pirate will just not collect as much. Pirated copies of games like Catwoman wouldn’t magically turn into revenue, I’m sure.

I’ve yet to see a real study on this issue, but I wonder just how many of these non-professional pirates would be forced to buy a game that he/she couldn’t pirate. I think that most people would just not play the game, but that’s just my hunch.

Still, you can’t say “theft” and mean “software piracy”. Yes, software piracy is serious. Yes, it can mean that a developer might make less revenue. I do not deny that it can have very real effects. But let’s call it what it is and stop trying to manipulate people. We’re grown ups now. We can handle the truth. Software piracy is copyright infringement, but it is not theft.

Don’t Fear the Indie is about what it might be like to have your own income independent of your regular job. When an employer gets nervous about a potential employee who gets income on his/her own, it’s scary.

Nothing, it seems, scares employers more than employees with independent income.

Why? Because independent income removes one of the primary levers employers use to control their employees: the paycheck.

It basically complements what David St. Lawrence says about corporate life. The days of long careers at a corporation that takes care of you are long gone, and the only really safe (and sane!) thing to do is work for yourself.

Usually when I talk to people about making games, I will say that I have plans to start my own game company. In general, I had the idea that I would start out by filing as an LLC, which is a limited liability company. I didn’t think that incorporating was necessary or even desirable, as I would be a one man company. An LLC allows me to keep it as simple as a sole proprietorship while getting the liability protection of a corporation.

Which is all well and good, but I haven’t really been doing anything about it. I can’t always plan to start my own game company. At some point I have to actually start it. Looking at my written goals, I don’t see anything that says, “Incorporate GBGames by MONTH DATE, YEAR”.

I think the reason why I didn’t put it up as a specific thing to do is because I just assumed I would handle it when I had games to sell. Why create a formal company when I’m still trying to make something for the company to make revenue from?

Then a friend of mine incorporated his company recently. I can see that many of his expenses can actually be applied towards his taxes, many expenses that I myself have. Also, he is really kicking into gear with his business. At the moment I can take my time since nothing is pressing me to make games or try to sell them, but if I had a formal company, it would force me to actually do something. I’d get a feeling of urgency since I have a business to run. So maybe incorporating now wouldn’t be too early.

I’m not sure of the answer, so I need to update my research on this topic. Did double taxation laws change this past year? Are LLCs still the best compromise? Any reason why a formal corporation would be better? Should I form a company before a product is actually created? What responsibilities do I need to take on if I do create a formal company? There are quite a few questions, but at the very least it gives me a new set of topics to blog about. B-)