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Technology Stocks : Apple Inc.
AAPL 273.40-0.1%Dec 26 9:30 AM EST

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To: J R KARY who wrote (24112)4/18/1999 3:38:00 AM
From: Adam Nash  Read Replies (2) of 213177
 
Open-sourcing the Quicktime Server code is a smart move. I'm assuming that's what the article is talking about, since it says "some" of the Quicktime code.

It is a perfect counter-punch to Microsoft's forcing Apple to hand over it's patent portfolio (mainly the Quicktime patents) in 1997. By doing this, Apple risks no significant intellectual property against Microsoft, and really throws a giant monkey wrench in Real Networks business model.

After all, Apple makes its money of selling Macs. It can afford to have Quicktime be a technology brand, like Java is for Sun, that leads to huge name recognition for Apple in multimedia. It is a page out of Scott McNealy's playbook. Java doesn't add a ton directly to Sun's bottom line, but Java's name recognition gets Sun credibility and $$$ when companies want to buy internet server hardware.

Big media presences on the net, like Broadcast.com, are going to love the ability to hire engineers and add value to an open-source QT server, and then offer a higher-end service on top of it. MUCH MUCH more than having to purchase RNWK servers and service.

Imagine the possibilities (ok, I'm going to venture off the probable here) - two years from now, Microsoft and Apple are in a legal battle over whether the Microsoft QT-capable streaming server lives up to the Apple Source Code License :)

This could be big. This could open up markets for Apple and OS X. I am very impressed *if* this turns out to be true...
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