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on the Apple II at the time, so I was using the game paddle and turning it. But the way I was doing it with the game paddles, the cursor was just too unstable. So I switched to the arrow keys, which were much more discrete. I learned some computer things. I had it make a sound every time it recalculated a cell, but it turned out that the making of the sound on the Apple used up three-quarters of the CPU time, because it did it with a timing loop. I learned little things like that. But I saw that it was a useful thing and that it

So, no, you re not required to support older versions of your software forever But to the extent that your future sales depend on word of mouth, endorsements, and recommendations, well, yes, you do have to support them indefinitely Again, it depends on what the competition is doing and whether that kind of policy will work to your advantage or disadvantage You have to balance the potential revenue against the potential loss of goodwill Since many software sales come by word of mouth, it is to your advantage to have every customer using the latest release of your product To that extent, the goodwill you generate by providing your customer with free upgrades as they are released might more than offset the revenue you could generate by charging for them Finally, you can use your support program as a spiff during negotiations.

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actually felt good and that I could start describing it to some classmates. One of them was also an MIT grad and computer person, John Reese. I would tell him how it was, and he d say, Well, Dan, it would be easier if you did this, and I said, You re right. There was a lot of feedback that way.

Livingston: Were you nervous to tell anyone about your idea Bricklin: No, not those people. Once we started working on it and were in business, yeah, since we thought it was obviously such a great idea. Though we realized it takes forever for it to become big in the world. We didn t think it would be as big as it is now, because nothing had done that in the past, though we thought it was real important. But you always do, as an entrepreneur. Everybody feels that way about what they re doing. You need that drive. And, yeah, we were afraid that Texas Instruments would find out about it and they d steal the idea. So we were careful; we would have people sign nondisclosure agreements. Livingston: The idea of a startup was pretty new. How did you know what to do

Bricklin: There were always startups. A huge portion of the economy in Massachusetts came from people who got their start at DEC, which started as an entrepreneurial thing. Then the same thing happened on the West Coast with Hewlett-Packard and places like that. But there was this other business, Personal Software, the publishing company, which was the model that they used of how to do software. This was a different model of author-publisher. We now know that author-publisher is not a very good model. We were the poster child of it not being good. But we set up that way, so when Bob and I made a deal with the Personal Software people in the fall of 78 to produce this product and they would sell it, we needed a business. We incorporated the business on January 2, 1979, and then we negotiated the deal with Personal Software. We were developing the product, but before it was announced we had already agreed on the general terms. The actual specific contract wasn t signed until the night before we announced it at Ben Rosen s conference. We had our lawyer (a general lawyer) negotiating on our side, and we had a publishing lawyer on the other side, I think, negotiating, which wasn t exactly right for software. Our contract ended up having problems long-term. But, it actually ended up being the model contract for many, many software things afterwards, because it did have a lot of interesting stuff in it. Livingston: So VisiCalc was the first to use the author-publisher model Bricklin: We weren t the first, I m sure, but in the personal computer software

business, we were one of the first. Personal Software later renamed themselves VisiCorp. Dan Fylstra, who was the head of the company, was one of the founding editors or something of Byte magazine. So he was involved in many ways in the publishing business. I assume that his lawyers were from that business too.

Waive the ongoing support costs for one, two, or three years, and that might close the sale..

Livingston: You incorporated over your winter break, right Bricklin: Yes. When I graduated business school, I graduated as chairman of

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