When you pay for something, does it become yours?
You probably think so — and you're wrong.
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The next Nintendo Switch model — one of the most popular gaming consoles in the world — includes a button that has stirred considerable controversy in the gaming community.
Pressing the button launches a live chat, integrated with Nintendo's online community.
But if you don't pay the $20 annual membership fee, that button becomes completely useless, and you won't be able to use it for anything else.
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Gamers argue that purchasing a button should at least entitle them to enjoy it in some way.
But stepping back, Nintendo is simply reminding us that the digital age has fundamentally and completely transformed the very concept of ownership.
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The idea of software licensing was invented by Bill Gates — and it's also what made him the richest person in the world.
His genius lay not only in developing the Windows operating system, but in deciding never to sell ownership of it to anyone — only the right to use it, subject to terms dictated by the company.
This concept eventually made its way into the physical world as well, with companies like BMW exploring subscription fees for features such as heated car seats or CarPlay.
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Even something as innocuous as an HDMI cable is subject to a strict usage license.
To obtain a license to manufacture such a cable, you must meet a long list of requirements — one of which is blocking the transmission of copyright-infringing content through the cable.
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The licensing model has become so popular because it's simply good for business.
Selling licenses generates revenue while simultaneously protecting a company's intellectual property, allowing it to keep profiting from it over time.
This may sound bad for us as consumers, but it's worth remembering that profitability drives creativity — and ultimately, the abundance of digital solutions we enjoy today is a direct product of that bottom line.