And, as is usual with software development, the products are way ahead of the hardware.

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The two companies also agreed to collaborate on future support and development of the video codec software and related products.

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Mr Behlendorf points out that software-development companies, like software companies themselves, are moving towards a model of selling services rather than products.

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Chuang thinks software acquisition and development costs are already out of control, and products like his will lead to more cost-cutting.

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This is because the UCITA would ban the reverse engineering of software, a method of development often used to construct links between products.

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In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products.

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"The dramatic growth of open source software development can now be seen in internet-based, always-connected mobile and consumer products, " said Tom Lantzsch, executive officer, Linaro.

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Examples are numerous, and the point is what makes people want to buy Apple products is the consumer experience, and what drives the consumer experience is software development.

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"We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets, " said Nielsen.

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