Idiots

Second Life Grid Trademark really annoys me

Apparently Linden Labs, the creators of Second Life, have gone out and filed a trademark on the word GRID. For you virtual world folks, the word implies a lot of things and is usually interchangable with a number of other cyberspace related words. Anyway, I don’t have a problem with LL getting a trademark on “Second Life Grid” which is usually how it is presented but to try to trademark the word grid by itself is pretty damned cheeky. Personally I find it offensive, insulting, and unfair. They might as well try to trademark cyberspace, web, network, polygon, avatar, pixel, link, and a few other generic terms that are common words, terms, and phrases used in the virtual worlds sector (which includes your standard virtual worlds, mmorpgs, and simulations).

I’m pretty disgusted with this.

I’m beginning to sense a bit of desperation from Linden Labs these days. Their CTO left recently, and their CEO has decided to “step down” in the near future. The media backlash against their unrelenting PR in late 2006 through 2007 (studded with misleading and disingenuous stats about their active users and subscribers) is continuing, and SL is handicapped by many problems that don’t seem to be going away anytime soon.

I think that Second Life would have died a long time ago, but for the fact that there is no clear competitor. Sure, there are places like there.com or whatever, but Second Life has bent over backwards to wrangle a lot of big name corporate sponsorships and virtual presences, and catered to the explorer and tinkerer types. Of course, there are a lot of virtual world experts, luminaries, entrepreneurs, and researchers that have found a home in Second Life. To be sure, SL has been valuable to a lot of people, and to some degree has validated virtual worlds in business, research, education, and online collaboration.

But I still think that the Emperor has no clothes, and the SL house is a house of cards that is very shakey. The first company that comes along with a better offering…more functionality, streamlined performance, better features, etc. will marginalize SL and dominate it, much in the way that World of Warcraft came out of no where and smacked down most of the MMORPG industry (not to worry, that gorilla is getting old and someone will knock them off their throne soon enough).

Anyway, I don’t want to get too far into an anti-SL rant here (at least not without doing it comprehensively and backing up my opinions), but their desire to trademark grid is crossing the line and just one more straw on the camel’s back.

 

 

"If this is such a good idea...

Why aren’t the big companies doing it?”

This is, perhaps, one of the most frustrating questions that I have been asked by investors, venture capital funds, and colleagues/mentors kind enough to take some time to look at my business plans over the last decade and a half.

The mentality behind this question assumes that big companies are naturally successful, smart, and have both the will and the resources to continually push for bigger, better, faster. If the “big boys” aren’t doing something, than it probably isn’t worth doing…because of course, you have to assume that they already thought about your idea and have discarded it as unworthy.

Ok, this sounds like it makes sense, but it is a very weak assumption. Big companies are naturally slower than smaller ones, and usually bogged down in bureaucracy, policy, or conflicting interests. More often than not, it is simply easier (and cheaper) for a big company to sit back and wait for someone smaller to do something new and innovative, and then acquire them.

In the game industry, most of the “big companies” are either publishers that made a lot of money with a particular business model (put games in boxes on retail shelves) or they are other large media conglomerates that have bought into the industry through large publisher acquisitions. In both cases, these companies are very successful in their own rights, but are out of their depth when it comes to innovation or different business models. MMORPGs for example are still “new and mysterious” and not quite understood.

EA, arguably one of the most successful game publishers ever, has a horrible and dismal record with online games. They destroyed Origin after acquiring them and nearly destroyed Ultima Online as well. They have a long history of acquiring companies and then dismantling them. I’m not going to get into how they treat their employees or the terrible corporate culture they cultivate, and I’m not going to make a long list of all of the massive amounts of money wasted on funding projects and then canceling them at the last minute (remember battletech online?).

EA’s latest foray into MMORPGs (again) is through their acquisition of Mythic and Warhammer Online. Shortly after they acquired Mythic, they put the team to work on updating the graphics for Ultima Online and give it a facelift. WTF? I still don’t understand why you would divert a team working on a large project like Warhammer to spend time on a completely different game. This is just one example of the odd and backwards things that EA tends to do.

So why isn’t EA making multiple MMORPGs? Why is Sony picking up a lot of half-dead MMORPGs (cough, Vanguard, cough) and aggregating them instead of trying to innovate and push the industry forward? There are other companies, but I think I’m making my point.

The big companies “aren’t” doing X or Y because it simply hasn’t occured to them, or they are too focused on other things than hunting out every new opportunity. Or they are just sitting on the sidelines waiting to make an acquisition play. That is why our ideas are great and why the big companies aren’t doing the same thing.

Big does not equal smart or all-knowing.

Big is risk averse and will continue to do the same thing day after day because it is safe.

Small is where innovation and creativity occurs. Invest in small things, sell out to big things.

I’m not sure I feel like making a list of small ideas that challenged industry goliaths and found success. Anyone familiar with capitalism and industry in America can figure that out on their own. Just look at all of our inventors and scientists, or companies that revolutionized entire industries with a simple idea or process.

The next time you are looking at investing in a small team of people with an idea, don’t ask them “why aren’t the big guys doing this”, instead ask how they will execute and take their idea to market to knock the big guys off their horses, or at least make themselves a hot acquisition target.