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November 09, 2008

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Chris Durand

Shabbir, Jason,

Enjoyed the post as always. Another interesting issue touched on in the case of Creative is how to take complex issues and distill them down into a response that "works" on the web. While Creative has a problem providing basic support for Vista (which made their response more difficult), they had some legitimate concerns:

1) If they have licensed IP from a third party but are only licensed to use it on certain products, they could have some legal exposure if they permit Daniel_K to enable those features on an unlicensed product. This is particularly important when this information is available on Creative's own forum sites.

2) I believe Creative was unfairly attacked in the forum and Wired article for a common industry practice- using a single configurable "platform" and selling it at different price points based on which features were enabled (or not). It is simply too expensive to produce distinct hardware and software for the "entry level", "mid range", and "premium" versions of a product. (People will have different opinions on whether or not this is "crippling" products or providing more consumer choice, but that's beyond the scope of this post.)

I would be curious to hear your suggestions (perhaps in a future blog entry?) on how to respond online to situations when the underlying business issues are more complicated than most people appreciate, particularly in a medium where people are used to short, bite-size (byte-sized? :-) answers. The challenge of describing complex things to ordinary folks appears in many situations (e.g. technical or financial court cases), but I would think it would be particularly challenging to address on the web.

Thanks,
Chris

Shabbir

Chris,

I think your #1 point is right. They were liable and couldn't look the other way.

Your #2 is a problem. That may be a fairly standard industry practice, but I don't think consumers are wild about it. When actually explained to them, I think consumers resent this business model. In this case it was laid bare and they didn't appreciate it. Consumers like to exchange money for something of value. When they perceive that they've bought something that would be very easy to turn on or not, they get resentful.

If I were Creative I would have lined up all my legal weapons, and then taken DanielK aside and gotten him in line before I went out into the community. A sufficient threat of copyright infringement, held at bay as long as he's cooperating, would have allowed them to go out to the community ostensibly together, saying, "We're working with DanielK to address the concerns about features in our product that is in line with our other licensing agreements."

Airing that conflict in the forums in front of unsympathetic users, without having DanielK reigned in, was the critical mistake, and frankly, an unrecoverable one.

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