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> Should closed hardware (that owns its entire stack) even be legal to sell

Yes (practically), but with a small exception.

If you are the only provider of the hardware. For example if you own a single patent protecting any component of the hardware. You are the sole manufacturer of any reasonably unique component of the hardware. You are the only manufacturer putting components together in this combination. Etc. Then it should be illegal. It should be an anti-trust violation. You are using your monopoly on the hardware to create a monopoly on the software running on the hardware. Moreover attempting to do so should constitute patent misuse and invalidate any patents that you previously owned on the hardware [1].

If the hardware is completely commoditized, consumers have the option to buy practically identical hardware from a competitor, then it should not be illegal. It's hard to come up with examples of such hardware

[1] Patent misuse is a doctrine where if you attempt to use a patent to create a monopoly on something else, you lose the patent. It is rarely but not never used by the courts: https://en.wikipedia.org/wiki/Patent_misuse

(I acknowledge this is a fairly extreme position, and that it is partially created by motivated reasoning. But it is the most principled position I can find to reach the conclusion that I want)



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