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Commodification, information, value and profit

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Poiesis & Praxis

Abstract

This paper gives an overview on the processes of commodification and de-commodification of goods and services as a background for analysing developments in the emerging information society. It contributes to the current discussion on intellectual property rights in terms of political economics by connecting it to technology and law. Finally, as an illustration of the proposed view, selected trendsetting Internet-based companies are studied with respect to their strategies in making profit.

Zusammenfassung

Als Hintergrund zur Analyse der sich herausbildenden Informationsgesellschaft gibt das Paper einen Überblick über Kommodifizierungs- und Dekommodifizierungsprozesse von Gütern und Dienstleistungen. In einer mit Technologie und Recht verknüpften Begrifflichkeit der Politischen Ökonomie wird ein Beitrag zur laufenden Diskussion über intellectual property rights geleistet. Zur Illustration der vorgebrachten Position werden abschliessend ausgewählte trendbestimmende Internet-Unternehmen bezüglich ihrer Gewinnstrategien untersucht.

Résumé

Cet article fournit une vue d’ensemble sur les processus de marchandisation et de dé-marchandisation des biens et des services pour servir de base à une analyse des développements en cours dans la société d’information. Il apporte une contribution à la discussion actuelle sur les droits de la propriété intellectuelle en termes d’économie politique en l’associant à la technologie et au droit. Enfin, pour illustrer le point de vue proposé, des sociétés génératrices de tendances basées sur Internet ont été sélectionnées et étudiées du point de vue de leurs stratégies de profit.

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Notes

  1. Marx’ Capital, vol. 1, begins with the following famous paragraph: “the wealth of those societies in which the capitalist mode of production prevails, presents itself as ‘an immense accumulation of commodities,’ its unit being a single commodity. Our investigation must therefore begin with the analysis of a commodity”. (http://www.marxists.org/archive/marx/works/1867-c1/ch01.htm#S1). Later in the text Marx referred explicitly to Aristotle’s and Adam Smith’s concepts of commodities. Please take note that commodity has a different meaning in business (related to traded goods on world markets) than throughout this paper. The term commodification was first attested in 1975 (http://www.etymonline.com/index.php?term=commodity), in reference to art theory, still meaning the transformation of products of human creativity into goods for sale. But one should be cautious in using the term properly, because there is also another meaning of commodification in the context of software industry. David Stutz, an experienced software developer and musician, e.g. uses the term for software production whenever there exist stable standards and modularity. Although he quoted Marx on the term commodity, he quoted him very selectively, and only on aspects of value in use. Consequently all the attributes that David Stutz found essential are related to the value in use and presuppose the existence of a value in exchange. (http://www.synthesist.net/writing/commodity_software.html, http://tim.oreilly.com/articles/paradigmshift_0504.html#swcommod, see also Naetar F (2005) “Commodification”, Wertgesetz und immaterielle Arbeit. Grundrisse 14:6–17.

  2. “The productive labourer he that directly increases his master’s wealth” see Malthus (1836) Principles of Political Economy. 2nd ed. London.

  3. There is some fuzziness in the application of the term commodification. The precise meaning should be that an entity in the beginning was no commodity, but ended finally up as a commodity. Contrary to that, innovations refer to completely new entities without predecessor in the past. But because innovations end up with commodities in the end, we also apply the term here.

  4. 18 months after the Directive was issued the Member States had to bring into force national legislation necessary to comply with the Directive.

  5. “Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 29 April 2006” (Directive 2004/48/EC, Art. 20, Par 1)

  6. IFPI (international federation of the phonographic industry) represents the recording industry worldwide with over 1,450 members in 75 countries and affiliated industry associations in 48 countries.

  7. http://www.wired.com/news/digiwood/0,1412,67783,00.html

  8. http://swpat.ffii.org/log/intro/index.en.html. Expecting a change in European legislation the EPO has meanwhile granted more than 30,000 pure software patents in anticipation of the new legislation, and the number has recently been rising at a rate of 3,000 per year.

  9. http://creativecommons.org/

  10. http://seaborg.nmu.edu/gts/

  11. Featherstone DJ, Specht MD (2004) Nanotechnology patents: a Snapshot of Nanotechnology patenting through an analysis of 10 Top Nanotech patents. Intellectual Property and Technology Law Journal vol 16 Number 12:1–6

  12. Langenbach J (2005) Patente auf chemische Elemente? Die Presse 22 June:40

  13. http://www.fool.com/news/mft/2005/mft05062301.htm?source=eptyholnk303100&logvisit=y&npu=y&bounce=y&bounce2=y

  14. http://www.microsoft.com/msft/corpinfo.mspx

  15. http://www.microsoft.com/museum/mustimeline.mspx

  16. http://finance.yahoo.com/q/is?s=MSFT&annual

  17. http://www.gamblinggates.com/news/gaming/bill-gates-knighthood75011.html

  18. GNU is not UNIX, a free version of source code contrasting the proprietary UNIX code.

  19. http://www.microsoft.com/msft/ar04/nonflash/10k_fr_da.html, taken from Microsoft’s Management’s Discussion and Analysis ("MD and A") which is intended to help the reader understand Microsoft Corporation. MD and A is provided as a supplement to, and should be read in conjunction with, Microsoft’s financial statements and the accompanying notes.

  20. http://itvibe.com/news/2945/

  21. currently more and more pay-TV stations are starting up

  22. http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=IROL-IncomeStatement

  23. http://moneycentral.msn.com/investor/research/profile.asp?Symbol=EBAY

  24. http://www.internetnews.com/ec-news/article.php/3513686

  25. http://www.paymentsnews.com/2005/01/paypal_reports_.html

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Fleissner, P. Commodification, information, value and profit. Poiesis Prax 4, 39–53 (2006). https://doi.org/10.1007/s10202-005-0007-y

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