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.

@Simon_Cullen via Twitter
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All 27 things wrong with today’s Daily Mail front cover

Where do I even start?

Hello. Have you seen today’s Daily Mail cover? It is wrong. Very wrong. So wrong that if you have seen today’s Daily Mail cover, you no doubt immediately turned to the person nearest to you to ask: “Have you seen today’s Daily Mail cover? It is wrong.”

But just how wrong is the wrong Mail cover? Let me count the ways.

  1. Why does it say “web” and not “the web”?
  2. Perhaps they were looking on a spider’s web and to be honest that makes more sense because
  3. How does it take TWO MINUTES to use a search engine to find out that cars can kill people?
  4. Are the Mail team like your Year 8 Geography teacher, stuck in an infinite loop of typing G o o g l e . c o m into the Google search bar, the search bar that they could’ve just used to search for the thing they want?
  5. And then when they finally typed G o o g l e . c o m, did they laboriously fill in their search term and drag the cursor to click “Search” instead of just pressing Enter?
  6. The Daily Mail just won Newspaper of the Year at the Press Awards
  7. Are the Daily Mail – Newspaper of the Year – saying that Google should be banned?
  8. If so, do they think we should ban libraries, primary education, and the written word?
  9. Sadly, we know the answer to this
  10. Google – the greatest source of information in the history of human civilisation – is not a friend to terrorists; it is a friend to teachers, doctors, students, journalists, and teenage girls who aren’t quite sure how to put a tampon in for the first time
  11. Upon first look, this cover seemed so obviously, very clearly fake
  12. Yet it’s not fake
  13. It’s real
  14. More than Google, the Mail are aiding terrorists by pointing out how to find “manuals” online
  15. While subsets of Google (most notably AdSense) can be legitimately criticised for profiting from terrorism, the Mail is specifically going at Google dot com
  16. Again, do they want to ban Google dot com?
  17. Do they want to ban cars?
  18. Do they want to ban search results about cars?
  19. Because if so, where will that one guy from primary school get his latest profile picture from?
  20. Are they suggesting we use Bing?
  21. Why are they, once again, focusing on the perpetrator instead of the victims?
  22. The Mail is 65p
  23. It is hard to believe that there is a single person alive, Mail reader or not, that can agree with this headline
  24. Three people wrote this article
  25. Three people took two minutes to find out cars can drive into people
  26. Trees had to die for this to be printed
  27. It is the front cover of the Mail

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