Does the 485th richest person in Britain really need to crowdfund a mobile phone?

People get fanatical about open-source software, but Canonical Inc. is not a charity, writes Alex Hern.

Yesterday, Canonical, the private company which leads development of the open-source operating system Ubuntu, started a crowdfunding campaign on the site IndieGoGo. The aim is to raise $32m to enable the production of the "Ubuntu Edge", a planned smartphone running the operating system which will incorporate elements of the desktop software, to create what the company calls "next generation of personal computing".

The device itself looks promising, although with a starter price of $830 (the crowdfunding campaign is offering discounts of up to $230 to early backers) it will need to be top-of-the-line to compete. Nonetheless, just a day in and they have already raised over $4m. But there's a bigger question to be asked, which is: why crowdfund?

The relationship between Ubuntu and Canonical can be confusing, at least to people outside the world of open-source software development. "Open-source" is the term for software which has been released to the commons by its creators. There's a number of ways to do this, but the most popular is with a so-called "copyleft" license, like the "GNU general public license", or GPL. That allows anyone to take the source code of a program and use it to make new things, without asking permission or paying anyone anything; but, it requires that any new software which is made is also licensed under the GPL, and has its source code released to the public.

Ubuntu, the operating system which Canonical leads development of, is licensed in this way. It's based on a family of open-source operating systems called GNU/Linux, and so it would be difficult (although not impossible) to charge for: anyone who wanted to get the software for free could perfectly legally download the source code, compile it, and then host it themselves.

Instead, the way companies such as Canonical make their money is by selling customer support and similar services to users of open source software. But with the Ubuntu Edge, they won't even have to do that. While the software will be open source, the hardware is still something people will have to buy, so they will be able to make money on it far more directly. And they do make money; Canonical is a private company with a reported annual revenue of $30m, founded by Mark Shuttleworth, the 485th richest person in Britain, who bought a flight on the International Space Station in 2002 for $20m.

If you're a multi-million dollar company headed by a multimillionaire with a bolshie idea for a product which could make you a lot of money, the normal way to do things is to sell shares and take loans until you've got enough cash to fund the product; then sell that product to customers. Taking thousands of pre-orders for a phone which you won't deliver until May 2014 – and which you have no contractual obligation to deliver at all, because crowdfunding sites are not e-commerce sites – and dressing it up in the aesthetics of artistic patronage is an odd, and slightly distasteful, way of doing things.

Kickstarter, the leading crowdfunding site, recently doubled-down on its opposition to this sort of campaign, writing that it's a service "to help bring creative projects to life", and tightening up its rules to prevent companies using it to launch their businesses. It's not hard to see why, when this is the sort of thing which has been stopped.

The Ubuntu Edge docked with a monitor. Photograph: Canonical, Inc.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

PewDiePie
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"Death to all Jews": Why Disney dropped YouTube's biggest star PewDiePie

The Minecraft vlogger turned internet celebrity's taste for shock comedy was too much for the family-focused corporation. 

Disney has cut ties with YouTube’s most-subscribed star after he paid two Sri Lankan men five dollars to hold up a sign that read “DEATH TO ALL JEWS”.

Feel free to read that sentence again, it’s not going anywhere.

A still from PewDiePie's video, via YouTube

PewDiePie, real name Felix Kjellberg, has over 53 million subscribers on YouTube, where his videos about gaming earned him over $15m last year. The 27-year-old, whose content is popular with children, came under fire this month after the Wall Street Journal investigated anti-Semitic comments in his videos. In one video, a man dressed as Jesus says “Hitler did absolutely nothing wrong”, while in another Kjellberg used freelance marketplace Fiverr to pay two men to hold up the offensive sign. The videos have since been deleted.

Jumpcut.

The Walt Disney Company became affiliated with PewDiePie after they bought Maker Studios, a network of YouTube stars, for nearly $1bn in 2014. Following the WSJ’s investigation, Maker dropped the star, stating: “Although Felix has created a following by being provocative and irreverent, he clearly went too far in this case and the resulting videos are inappropriate. Maker Studios has made the decision to end our affiliation with him going forward.”

When you sack a YouTube Star, makes no difference who they are.

Via Wall Street Journal

But why should the story stop there? Neo-nazi website The Daily Stormer are now defending PewDiePie, while the notoriously politically-incorrect 4Chan forum /pol/ have called him “our guy”.  

In his defence, Kjellberg wrote a blog post denying an affiliation with anti-Semitic groups and explained his actions, writing: “I was trying to show how crazy the modern world is, specifically some of the services available online.” In a video last December the star also said: "It's extremely annoying how I can't make jokes on my channel without anyone quoting it as actual facts, like something I actually said", before dressing as a soldier and listening to one of Hitler's speeches while smiling. 

Pause.

(If all of this sounds familiar, recall when disgraced YouTuber Sam Pepper claimed a video in which he groped unsuspecting females was a “social experiment”).

Play.

And yet the story still isn’t over. Disney have learned a hard lesson about assuming that YouTubers are the squeaky clean fairy-tale princes and princesses they often appear to be. Shay Butler, one of the original founders of Maker Studios, yesterday quit the internet after it was alleged he sent sexual messages to a cam girl via Twitter.

Butler is one of the original "family vloggers", and has spent nine years uploading daily videos of his five children to YouTube. A practicing Mormon, Butler has become emblematic of family values on the site. “My heart is sick,” he wrote on Twitter, neither confirming nor denying the allegations of his infidelity, “I have struggled with alcoholism for years… My purpose is to rehab.” 

The result is a very dark day for YouTube, which has now dropped Kjellberg from its premier advertising network, Google Preferred, and cancelled the second series of the star's reality show, Scare PewDiePie

Amelia Tait is a technology and digital culture writer at the New Statesman.