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Metcalfe: FC 'Beginning to Smell': Page 3 of 4

(By contrast, a bad word choice was "collision," used by Metcalfe in describing how traffic shares the ether. It caused trouble early on. "People know what collisions are. They're metal and glass and blood flowing everywhere. They didn't want collisions in their network.")

But the real reason for Ethernet's success wasn't so much in the technology as in the way it was sold: " 'Ethernet' is a business model," Metcalfe said.

The model was radical for its time: Ethernet was licensed for cheap, but it was enforced like a standard.

During the panel session, PARC colleague David Liddle, now general partner at U.S. Venture Partners, said Xerox charged a one-time license fee of just $1,000. That's in contrast to the huge fees associated with Token Ring.

Xerox's stipulation was that the technology couldn't be changed -- it had to interoperate with all other Ethernet implementations. "Thus we made a playing field in which we could all thrive and compete," Liddle said.