On a related note, those who remember IOMega's "Zip Drives" saw the same thing happen. They came up with a way to pack several orders of magnitude more data on a floppy disk than the general industry could, and patented it. Then, they wanted to keep the technology to themselves so they could overcharge for it, even though it cost little more than a standard drive/disk did using freely available technology. So, while everybody else wanted $20 for a drive and $.20/ea for disks, IOMega wanted $250 for a drive and $10/ea. for disks. Takeup was minimal. They could have sold jillions of the things if they'd have priced them right, but they were too greedy, and it kept them from ever making any serious money.
Apple did the same thing with Firewire. It was a far superior serial communication scheme to USB, but they wanted $.25/ea for every port implemented on a motherboard or peripheral, while USB was free. Since there are literally hundreds of millions of ports implemented annually, can you see the mistake? Where's Firewire today? Even Apple is using USB.
Sony has done it numerous times, with the "Beta" video recording scheme being the most egregious mistake they've made. Again, they wanted to keep the technology to themselves, or would only license it for exorbitant amounts of money, while VHS was free. As a result, dozens of manufacturers made VHS machines, while Sony was nearly the only one selling Beta machines. We all saw what happened there. Even though the Beta format was superior in many ways, it never gained any market share.
Even governments are guilty of it when certain party philosophies are dominant. When tax revenues are down, the tendency is to raise taxes. The problem is, higher taxes reduces the number of taxpayers as businesses fail or reduce employment or pay scales, so revenues go down when taxes go up due to reduced participation. Better to have a lower tax with more payers, as the revenue is higher.