<s>
Commercial	B-Application
software	I-Application
,	O
or	O
seldom	O
payware	B-Application
,	O
is	O
a	O
computer	B-Application
software	I-Application
that	O
is	O
produced	O
for	O
sale	O
or	O
that	O
serves	O
commercial	O
purposes	O
.	O
</s>
<s>
Commercial	B-Application
software	I-Application
can	O
be	O
proprietary	B-Application
software	I-Application
or	O
free	B-License
and	I-License
open-source	I-License
software	I-License
.	O
</s>
<s>
While	O
software	O
creation	O
by	O
programming	B-General_Concept
is	O
a	O
time	O
and	O
labor-intensive	O
process	O
,	O
comparable	O
to	O
the	O
creation	O
of	O
physical	O
goods	O
,	O
the	O
reproduction	O
,	O
duplication	O
and	O
sharing	O
of	O
software	O
as	O
digital	O
goods	O
is	O
in	O
comparison	O
disproportionately	O
easy	O
.	O
</s>
<s>
Once	O
the	B-Application
software	I-Application
is	O
created	O
it	O
can	O
be	O
copied	O
in	O
infinite	O
numbers	O
,	O
for	O
almost	O
zero	O
cost	O
,	O
by	O
anyone	O
.	O
</s>
<s>
Software	O
was	O
plainly	O
shared	O
for	O
free	B-Application
(	O
hacker	O
culture	O
)	O
or	O
distributed	O
bundled	O
with	O
sold	O
hardware	O
,	O
as	O
part	O
of	O
the	O
service	O
to	O
make	O
the	O
hardware	O
usable	O
for	O
the	O
customer	O
.	O
</s>
<s>
In	O
1983	O
binary	O
software	O
became	O
copyrightable	O
by	O
the	O
Apple	B-Device
vs.	I-Device
Franklin	I-Device
law	O
decision	O
,	O
before	O
only	O
source	O
code	O
was	O
copyrightable	O
.	O
</s>
<s>
Additionally	O
,	O
the	O
growing	O
availability	O
of	O
millions	O
of	O
computers	O
based	O
on	O
the	O
same	O
microprocessor	B-Architecture
architecture	O
created	O
for	O
the	O
first	O
time	O
a	O
compatible	O
mass	O
market	O
worth	O
and	O
ready	O
for	O
binary	O
retail	B-Application
software	I-Application
commercialization	O
.	O
</s>
<s>
Common	O
business	O
wisdom	O
is	O
that	O
software	O
as	O
digital	O
good	O
can	O
be	O
commercialized	O
to	O
the	O
mass-market	O
most	O
successful	O
as	O
proprietary	B-Application
good	O
,	O
meaning	O
when	O
the	O
free	B-Application
sharing	O
and	O
copying	O
of	O
the	O
users	O
(	O
"	O
software	O
piracy	O
"	O
)	O
can	O
be	O
prevented	O
.	O
</s>
<s>
Control	O
over	O
this	O
can	O
be	O
achieved	O
by	O
copyright	O
which	O
,	O
along	O
with	O
contract	O
law	O
,	O
software	O
patents	O
,	O
and	O
trade	O
secrets	O
,	O
provides	O
legal	O
basis	O
for	O
the	B-Application
software	I-Application
's	O
owner	O
,	O
the	O
intellectual	O
property	O
(	O
IP	O
)	O
holder	O
,	O
to	O
establish	O
exclusive	O
rights	O
on	O
distribution	O
and	O
therefore	O
commercialization	O
.	O
</s>
<s>
Technical	O
mechanisms	O
which	O
try	O
to	O
enforce	O
the	O
exclusive	O
distribution	O
right	O
are	O
copy-protection	B-Application
mechanisms	O
,	O
often	O
bound	O
to	O
the	O
physical	B-General_Concept
media	I-General_Concept
(	O
floppy	B-Device
disc	I-Device
,	O
CD	B-Device
,	O
etc	O
.	O
)	O
</s>
<s>
of	O
the	B-Application
software	I-Application
,	O
and	O
digital	O
rights	O
management	O
(	O
DRM	O
)	O
mechanisms	O
which	O
try	O
to	O
achieve	O
the	O
same	O
also	O
in	O
physical	O
media-less	O
digital	O
distribution	O
of	O
software	B-Application
.	I-Application
</s>
<s>
When	O
software	O
is	O
sold	O
in	O
binary	O
form	O
only	O
(	O
"	O
closed	B-Application
source	I-Application
"	O
)	O
on	O
the	O
market	O
,	O
exclusive	O
control	O
over	O
software	O
derivatives	O
and	O
further	O
development	O
is	O
additionally	O
achieved	O
.	O
</s>
<s>
This	O
business	O
model	O
,	O
also	O
called	O
"	O
research	O
and	O
development	O
model	O
"	O
,	O
"	O
IP-rent	O
model	O
"	O
or	O
"	O
proprietary	B-Application
software	I-Application
business	O
model	O
"	O
,	O
was	O
described	O
by	O
Craig	O
Mundie	O
of	O
Microsoft	O
in	O
2001	O
as	O
follows	O
:	O
"[C]ompanies	O
and	O
investors	O
need	O
to	O
focus	O
on	O
business	O
models	O
that	O
can	O
be	O
sustainable	O
over	O
the	O
long	O
term	O
in	O
the	O
real	O
world	O
economy	O
…	O
.	O
</s>
<s>
While	O
less	O
common	O
than	O
commercial	O
proprietary	B-Application
software	I-Application
,	O
free	B-License
and	I-License
open-source	I-License
software	I-License
may	O
also	O
be	O
commercial	B-Application
software	I-Application
in	O
the	O
free	B-License
and	I-License
open-source	I-License
software	I-License
(	O
FOSS	B-License
)	O
domain	O
.	O
</s>
<s>
But	O
unlike	O
the	O
proprietary	B-Application
model	O
,	O
commercialization	O
is	O
achieved	O
in	O
the	O
FOSS	B-License
commercialization	O
model	O
without	O
limiting	O
the	O
users	O
in	O
their	O
capability	O
to	O
share	O
,	O
reuse	O
and	O
duplicate	O
software	O
freely	O
.	O
</s>
<s>
This	O
is	O
a	O
fact	O
that	O
the	B-Operating_System
Free	I-Operating_System
Software	I-Operating_System
Foundation	I-Operating_System
emphasizes	O
,	O
and	O
is	O
the	O
basis	O
of	O
the	O
Open	B-Application
Source	I-Application
Initiative	O
.	O
</s>
<s>
Under	O
a	O
FOSS	B-License
business	O
model	O
,	O
software	O
vendors	O
may	O
charge	O
a	O
fee	O
for	O
distribution	O
and	O
offer	O
paid	O
support	O
and	O
software	O
customization	O
services	O
.	O
</s>
<s>
Proprietary	B-Application
software	I-Application
uses	O
a	O
different	O
business	O
model	O
,	O
where	O
a	O
customer	O
of	O
the	O
proprietary	B-Application
software	I-Application
pays	O
a	O
fee	O
for	O
a	O
license	O
to	O
use	O
the	B-Application
software	I-Application
.	O
</s>
<s>
This	O
license	O
may	O
grant	O
the	O
customer	O
the	O
ability	O
to	O
configure	O
some	O
or	O
no	O
parts	O
of	O
the	B-Application
software	I-Application
themselves	O
.	O
</s>
<s>
Often	O
some	O
level	O
of	O
support	O
is	O
included	O
in	O
the	O
purchase	O
of	O
proprietary	B-Application
software	I-Application
,	O
but	O
additional	O
support	O
services	O
(	O
especially	O
for	O
enterprise	O
applications	O
)	O
are	O
usually	O
available	O
for	O
an	O
additional	O
fee	O
.	O
</s>
<s>
Some	O
proprietary	B-Application
software	I-Application
vendors	O
will	O
also	O
customize	O
software	O
for	O
a	O
fee	O
.	O
</s>
<s>
Free	B-Application
software	I-Application
is	O
often	O
available	O
at	O
no	O
cost	O
and	O
can	O
result	O
in	O
permanently	O
lower	O
costs	O
compared	O
to	O
proprietary	B-Application
software	I-Application
.	O
</s>
<s>
With	O
free	B-Application
software	I-Application
,	O
businesses	O
can	O
fit	O
software	O
to	O
their	O
specific	O
needs	O
by	O
changing	O
the	B-Application
software	I-Application
themselves	O
or	O
by	O
hiring	O
programmers	O
to	O
modify	O
it	O
for	O
them	O
.	O
</s>
<s>
Free	B-Application
software	I-Application
often	O
has	O
no	O
warranty	O
,	O
and	O
more	O
importantly	O
,	O
generally	O
does	O
not	O
assign	O
legal	O
liability	O
to	O
anyone	O
.	O
</s>
<s>
However	O
,	O
warranties	O
are	O
permitted	O
between	O
any	O
two	O
parties	O
upon	O
the	O
condition	O
of	O
the	B-Application
software	I-Application
and	O
its	O
usage	O
.	O
</s>
<s>
Such	O
an	O
agreement	O
is	O
made	O
separately	O
from	O
the	O
free	B-Application
software	I-Application
license	O
.	O
</s>
<s>
All	O
or	O
parts	O
of	O
software	O
packages	O
and	O
services	O
that	O
support	O
commerce	O
are	O
increasingly	O
made	O
available	O
as	O
FOSS	B-License
software	B-Application
.	I-Application
</s>
<s>
This	O
includes	O
products	O
from	O
Red	O
Hat	O
,	O
Apple	O
Inc.	O
,	O
Sun	O
Microsystems	O
,	O
Google	B-Application
,	O
and	O
Microsoft	O
.	O
</s>
<s>
Microsoft	O
uses	O
"	O
commercial	B-Application
software	I-Application
"	O
,	O
to	O
describe	O
their	O
business	O
model	O
but	O
is	O
also	O
mostly	O
proprietary	B-Application
.	O
</s>
<s>
A	O
report	O
by	O
Standish	O
Group	O
says	O
that	O
adoption	O
of	O
open	B-Application
source	I-Application
has	O
caused	O
a	O
drop	O
in	O
revenue	O
to	O
the	O
proprietary	B-Application
software	I-Application
industry	O
by	O
about	O
$60	O
billion	O
per	O
year	O
.	O
</s>
