It's not exactly a
http://en.wikipedia.org/wiki/Gift_economy">gift economy (an interesting concept in its own right) if that's what you're getting at. Think of it as a way for companies to simply reduce their development costs by choosing to freely cooperate and share those costs. Sure, they give up a slice of the pie in exchange for reduced development costs, the end result being perhaps a greater profit/cost ratio. The
http://en.wikipedia.org/wiki/Open_source">wikipedia entry for open source draws this interesting analogy with the development of the automobile:
In the early years of automobile development, a group of capital monopolists owned the rights to a 2 cycle gasoline engine patent originally filed by George B. Selden. By controlling this patent, they were able to monopolize the industry and force car manufacturers to adhere to their demands, or risk a lawsuit. In 1911, independent automaker Henry Ford won a challenge to the Selden patent. The result was that the Selden patent became virtually worthless and a new association (which would eventually become the Motor Vehicle Manufacturers Association) was formed. The new association instituted a cross-licensing agreement among all US auto manufacturers: although each company would develop technology and file patents, these patents were shared openly and without the exchange of money between all the manufacturers. Until the US entered World War 2, 92 Ford patents were being used freely by other manufacturers and were in turn making use of 515 patents from other companies, all without lawsuits or the exchange of money.
Could a company just leach and not seed (to borrow a bit torrent term)? Sure, but remember that "free" and "open source" licenses do have restrictions, the least of which is that while you are free to take the code and modify it, you must publish (share) your work. The
http://www.linux.org/info/gnu.html">GNU public license for example.
Open source is much more than just Linux and it's being fueled in part by the arrival of the Internet itself. One could say that this level of cooperation wouldn't be possible without the Internet and the Internet as-we-know-it wouldn't be possible without open source:
Much of the Internet runs on open source software tools and utilities such as Linux, Apache, MySQL, and PHP, known as the LAMP stack for web servers. Using open source appeals to software developers for three main reasons: low or no cost, access to source code they can tailor themselves, and a shared community that ensures a generally robust code base, with quick fixes for any new issues that surface.
Despite doing much business in proprietary software, some companies like Sun Microsystems and IBM participated in developing free and open source software to deter from monopolies and take a portion of market share for themselves. Netscape's actions are an example of this, and thus Mozilla Firefox has become more popular, stealing market share from Internet Explorer.
Canonical Ltd. offers Ubuntu for free, while they sell commercial technical support contracts.
Red Hat offers the Fedora for free through the Fedora Project, while selling Red Hat Enterprise Linux (RHEL).
Novell offers openSUSE for free through the openSUSE Project, while selling SUSE Linux Enterprise (SLE).
Sun Microsystems offer OpenOffice.org for free, while selling StarOffice.
Adobe Systems offers Flex for free, while selling the Flash Builder IDE.
Apple Inc. offers Darwin for free, while selling Mac OS X.
Francisco Burzi offers PHP-Nuke for free, but the latest version is offered commercially.
Ingres is offered for free, but with a subscription you can get services & support. The Ingres Icebreaker Appliance is also offered as a commercial database appliance.
MySQL is offered for free, but with the enterprise version you can get subscription, support and additional features.
The closed source edition of VirtualBox (free to use for home-users) must be bought by companies to be used (but there is also an open-source version that can be used by anyone)
Mozilla Foundation have a partnership with Google and other companies which provides revenue for inclusion of search engines in Mozilla Firefox.
Linspire, Inc. offers Freespire for free, while selling Linspire.
Mandriva offers Mandriva Linux Free and Mandriva Linux One for free, while selling Mandriva Linux 2008.
Active Agenda is offered for free, but requires all extensions to be shared back with the world community. The project sells a "Non-Reciprocal Private License" to anyone interested in keeping module extensions private.
http://en.wikipedia.org/wiki/Business_models_for_open_source_software">Business models for open source software
http://www.ted.com/talks/yochai_benkler_on_the_new_open_source_economics.html">This is a fifteen minute Ted Talk that's well worth watching. Yochai Benkler is Professor of Entrepreneurial Legal Studies at Harvard Law School. He goes into much more detail. Everything is changing.