Whichever way you turn it, Adobe is in the market to make long term profits for their shareholders. Nothing wrong with that. At least as long as they have customers that are willing to part with money that they feel is well spent on Adobe products. If Adobe lacks clarity in communicating their intents and where the 'value added' is for their customers, who are the generators of the long term profits, everybody loses. Adobe loses customers and thus revenues, customers are disgruntled, market share drops and ultimately shareholders feel they don't get the rewards they expected. OK, Adobe is US based and must adhere to US law. Completely logical. Their development work is done to a large extend in the US (and India for all I know), their CC servers are US based, their distribution is US based, activation servers are US based, their exports are based on US restrictions, in short their stance it that we, the customers, are dealing with a US based company that abides by US laws. That is fair, I think. At least it is very clear. One may wonder whether a different accounting method for perpetual licenses would not have been easier to circumvent the SOX legislation and avoid this outrage, but that is something that all the much appreciated presence of Adobe staff can not alter. Those decisions are all above their pay-grade as they are above mine, but then I'm not a staff member, so that is no surprise. Personally, I think that bug fixes and improving functionality (something that works only partly) of existing products but not adding new functionality is perfectly legal even under current Adobe accounting policies and US law, but, like Steven I'm not a lawyer, nor an accountant. What is more disturbing in my eyes is the fact that Adobe is not clear at all. If everything is based on US rules, regulations, law, accounting principles and other relevant restrictions, why not treat all customers the same as US citizens? Charging them the same prices, giving the same educational benefits, etc. But Adobe does not do that. They overcharge European customers significantly in comparison to US customers, using the excuse of 'the cost of doing business locally'. Well, development, distribution and activation is purely US based, nothing local. So where is the local cost? Is that an Apple like approach, that uses tax treaties and havens to allocate revenues to a local company, lowering corporate taxes and increasing net profit for the shareholders over the back of European customers? In my consulting practice I have seen many US based companies, to whom US law applies, using transfer pricing to lower corporate taxes by diligent use of tax treaties with for instance Ireland, Luxembourg, Switzerland and the Netherlands in a completely legal way (well, sometimes borderline). These actions resulted in a significant boost of the bottom line, sometimes in the tens or even hundreds of millions per year. I suspect Adobe is no different, but that makes it even worse and more bitter for European customers. They get ripped off by Adobe and Adobe profits extra because of the transfer pricing and tax-treaties. I can't substantiate this, but from a business point of view, using these 100% legal loopholes, a company would be crazy not to use them. When a European customer goes to Microsoft, B&H or whatever other US based company, they can use their credit card to pay for the order they place. They don't need a US credit card, but Adobe does not allow that. Is it for the tax reasons mentioned above that a customer can only buy locally from a US based company? On the one hand Adobe claims to be US based and adhering to US laws, but at the same time it hides behind 'local business' for which a completely different set of rules apply. That is not trust inspiring or consequent for me. This leads me to two different requests: Equal pricing excluding local taxes around the globe, since this is a global business, all originating in the US, so pricing should be US based. No discrimination based on very vague arguments that do not hold. CC is a worldwide approach, with development, electronic distribution, electronic activation, electronic payment, electronic updates, everything is done from US based server parks, so there is no argument whatsoever to discriminate based on country of purchase. Create an exit strategy for those customers that can not or will not pay rent anymore to get a perpetual license, not a downgrade to CS6.
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