On Sunday, February 17, 2013 5:14:53 PM UTC-7, Kobus du Toit wrote:
I am developing new laser tag/skirmish gear for outdoor use. I am trying some new ways of doing things in my gear. I am thinking about making my gear open hardware or open source or both, but it is a difficult decision.
Why is open source an option? Do you expect to attract and nurture a community of independent developers? Are you going to specifically design the hardware so that it's easy for people to hack? Are major elements of it dual purpose (as in they work for more than just laser tag)? Open source is primarily a way to share costs. It makes the most sense in areas that everyone uses all the time. It does not make sense in areas that only a couple people use every now and then. For example, it makes much more sense to open source an operating system (like Android) than to open source a game (like Angry Birds).
What are your personal motivations? Research consistently shows that open source developers are NOT motivated by profit. They are motivated by 1) an intrinsic desire to solve a challenging problem and/or 2) an extrinsic desire to impress their peers. Open source is not a good way to make a lot of money for yourself. If you want to improve the general state of laser tag technology, then open source makes sense. If you want to start a business that can pay your mortgage and maybe earn you a nice vacation in a few years, then open source isn't a clear option. Basically, to be "open source" your top priority has to be open. If your top priority is profit then by definition you can only be partly open, you can't actually be open source.
I am doing some things that I haven't seen other manufacturers do so it would be nice to keep that for myself. What I am worried about is if a Chinese factory gets hold of my gear and they think they can do it cheaper or better
Well...it probably won't be a Chinese factory. It will probably be an existing laser tag equipment company that already has a good relationship with a Chinese factory. However, that risk exists no matter what you do.
I will not have the funds to sue them to stop manufacturing so I am wondering if it is even worth it closing up my designs and software.
First, there's nothing stopping a company from reverse-engineering your hardware. The thing about hardware is that you can't encrypt it. Then, even if you have a patent on it, all they have to do is change it slightly and BOOM, they get around your patent. Even if they do blatantly violate your patent, enforcing the patent takes time and resources. If you get a judgment then that takes even more time and resources to collect.
Second, it takes a certain amount of time for even a powerful company to put a new product line into the field. Since they can't do that before you field yours AND it is proven successful in the market place, you have at least a year (more like two or three) head start on them. Hopefully you used that head start to continue innovating so that by the time they copy your product you are already introducing a newer/better product.
Third, it's possible to design your hardware so that it is too hacker-friendly for a competitor to directly copy. For example, if the plastic cases are designed so that they can be 3D printed they will not look "professional" enough for a bigger company to put their name on. If the circuit bords are designed to be profitable in small runs they won't be profitable in large runs. Etc. That way your hardware designs can be released to the hackers but a big company would have to redesign them from scratch anyway. So you aren't actually giving them anything they can use to copy you. A copycat is in the same position they'd be in if you hadn't released the design files.
The good thing about being open is you have so many more people that can help to make a good product.
You CAN have a lot of people. IF you put a lot of work into nurturing the developer community. You can't just post the files and call it a day. You have to provide forums and mailing lists and be available for discussions and whatnot. Also, you might not find a lot of overlap between the people who like designing circuit boards in their spare time and the people who like playing laser tag. The former is okay with laser tag hardware as an interesting project, but the latter WILL NOT accept a product that is full of bugs or is missing features because they're "coming later." Most people who spend money on a gadget want it to work because they want to play with it. Very few people are willing to stare at it while it doesn't work because they think making it work is fun. Those people definitely exist, but you'll have to make sure to keep two very different communities happy.
I am hoping that the people that will manufacture the gear would normally be hobbyist and not operators. If laser tag/skirmish operators manufacturer the gear themselves from the designs then how will I make money.
It seems extremely unlikely that a laser tag operator has the means/motivation to actually manufacture their own equipment. They are probably operating a facility because that's what their strengths are and where their interests are. I doubt they want to learn about manufacturing and I strongly doubt they want to provide their own tech support. They are going to be leaning on you to warranty and support the equipment. As soon as they make something themselves they become responsible for it working; they can't just call you and tell you to fix it. Again, most people don't want to hack, they just want to play.
How do open hardware/open source companies make money?
They're new, so there aren't really any case studies yet. But they seem to get most of their business from hackers/developers. Arduino, SparkFun, Makerbot, SeedStudio, the many RepRap stores, the drone makers, etc. They sell to people who make things, not people who use/consume things. Chumby tried to sell to consumers and that didn't last long. Open Source Ecology is a good example. They're having a really hard time getting people to actually use their machines. I think the only one that's sold to consumers in any volume is the Liberator.
On the one side I am thinking "patent everything". On the other side I am thinking "I don't have the money to patent everything or sue people that steal from me".
Technically, if you release it under an open license then it's nearly impossible to steal from you ;-)
It seems unlikely that you'll ever see any benefit from having a patent. Odds are that even a successful laser tag design won't generate enough revenue all on its own to be worth poaching. I imagine most of the profit comes from the support services after the actual purchase. A competitor would have to be confident that they could support anything they sold, so they would be unlikely to just copy yours overnight. Even if they did, they would have to sell at a loss to match your price because they have to learn all the things you already know. Additionally, nobody is going to even think about copying it until it becomes commercially successful, which will be a year or two. Then it will take them time to actually introduce their own competing version. If they do that then they are confident that they can out-muscle you financially. Your only competitive option will be to innovate and put out a new product that's better than the previous generation...at which point your patent on the old technology is irrelevant.
As a small startup you have to compete by being more creative and faster moving than everyone else. Patents are blunt instruments that are too expensive and only work when you have lots of them anyway.
Actually, and I saved this point for last...it seems like you are far more likely to have SOMEONE ELSE accuse you of violating their patent than YOU are to make the accusation against a copycat. How confident are you that your innovative new system doesn't depend on a subsystem that's already patented?