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.

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Fark.com’s censorship story is a striking insight into Google’s unchecked power

The founder of the community-driven website claims its advertising revenue was cut off for five weeks.

When Microsoft launched its new search engine Bing in 2009, it wasted no time in trying to get the word out. By striking a deal with the producers of the American teen drama Gossip Girl, it made a range of beautiful characters utter the words “Bing it!” in a way that fell clumsily on the audience’s ears. By the early Noughties, “search it” had already been universally replaced by the words “Google it”, a phrase that had become so ubiquitous that anything else sounded odd.

A screenshot from Gossip Girl, via ildarabbit.wordpress.com

Like Hoover and Tupperware before it, Google’s brand name has now become a generic term.

Yet only recently have concerns about Google’s pervasiveness received mainstream attention. Last month, The Observer ran a story about Google’s auto-fill pulling up the suggested question of “Are Jews evil?” and giving hate speech prominence in the first page of search results. Within a day, Google had altered the autocomplete results.

Though the company’s response may seem promising, it is important to remember that Google isn’t just a search engine (Google’s parent company, Alphabet, has too many subdivisions to mention). Google AdSense is an online advertising service that allows many websites to profit from hosting advertisements on its pages, including the New Statesman itself. Yesterday, Drew Curtis, the founder of the internet news aggregator Fark.com, shared a story about his experiences with the service.

Under the headline “Google farked us over”, Curtis wrote:

“This past October we suffered a huge financial hit because Google mistakenly identified an image that was posted in our comments section over half a decade ago as an underage adult image – which is a felony by the way. Our ads were turned off for almost five weeks – completely and totally their mistake – and they refuse to make it right.”

The image was of a fully-clothed actress who was an adult at the time, yet Curtis claims Google flagged it because of “a small pedo bear logo” – a meme used to mock paedophiles online. More troubling than Google’s decision, however, is the difficulty that Curtis had contacting the company and resolving the issue, a process which he claims took five weeks. He wrote:

“During this five week period where our ads were shut off, every single interaction with Google Policy took between one to five days. One example: Google Policy told us they shut our ads off due to an image. Without telling us where it was. When I immediately responded and asked them where it was, the response took three more days.”

Curtis claims that other sites have had these issues but are too afraid of Google to speak out publicly. A Google spokesperson says: "We constantly review publishers for compliance with our AdSense policies and take action in the event of violations. If publishers want to appeal or learn more about actions taken with respect to their account, they can find information at the help centre here.”

Fark.com has lost revenue because of Google’s decision, according to Curtis, who sent out a plea for new subscribers to help it “get back on track”. It is easy to see how a smaller website could have been ruined in a similar scenario.


The offending image, via Fark

Google’s decision was not sinister, and it is obviously important that it tackles things that violate its policies. The lack of transparency around such decisions, and the difficulty getting in touch with Google, are troubling, however, as much of the media relies on the AdSense service to exist.

Even if Google doesn’t actively abuse this power, it is disturbing that it has the means by which to strangle any online publication, and worrying that smaller organisations can have problems getting in contact with it to solve any issues. In light of the recent news about Google's search results, the picture painted becomes more even troubling.

Update, 13/01/17:

Another Google spokesperson got in touch to provide the following statement: “We have an existing set of publisher policies that govern where Google ads may be placed in order to protect users from harmful, misleading or inappropriate content.  We enforce these policies vigorously, and taking action may include suspending ads on their site. Publishers can appeal these actions.”

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