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Making Money from
Open-Source Hardware
David A. Mellis




Reboot11 – 26 June 2009 – Copenhagen
Introductions
Me

Arduino
Copenhagen Institute of Interaction Design
MIT Media Lab
Open-Source Hardware

Provision of the digital artifacts necessary to produce,
understand, and modify a piece of hardware.
Arduino

Open-source electronics prototyping platform.




Hardware            Software            Community
Making Money From Open Source Hardware
Value Chain
“I don't want to sell anything, buy anything, or
process anything.... I don't want to sell anything
bought or processed, or buy anything sold or
processed, or process anything sold, bought, or
processed, or repair anything sold, bought, or
processed.”
                     —John Cusack, Say Anything
ArduinoTM
Advantages                 Disadvantages

Small capital investment   Small profit margin
Few expenses               No barrier to competition
Limited risk               Have to protect the name
Flexibility
Visibility
Arduino
Open-Source Software
Manufacturers
Distributors
Bundlers
ARDX Experimentation Kit




                           From .:Oomlout:.
Business Models
Selling Kits




               Photo by Zach ‘Hoeken’ Smith
Open Source Hardware Reserve Bank
Selling Commercial Products




                      http://www.flickr.com/photos/avenafatua/2561017754/
Consulting
Don’t people rip you off ?
Making Money From Open Source Hardware
Making Money From Open Source Hardware
Contributions
Implications
There’s real money here.
The people who invest (risk) money
  are the ones who make money.
Open-source keeps you honest.
Questions
Is there anything new here?
Does it need to be open-source?
Is it wrong to make money from this?
How much will people do themselves?
Thank you.

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Making Money From Open Source Hardware