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SOIC registration for this paper kindly supported by IMAG Australia and Dassault Systemes [See Additional Reference for more recent papers on this topic] Knowledge and the communication of knowledge are critical for self-sustaining organizations comprised of people and the tools and machines that extend peoples ’ physical and cognitive capacities. Humberto Maturana and Francisco Varela proposed the concept of autopoiesis (“self ” + “production”) as a definition of life in the 1970s. Nicklas Luhmann extended this concept to establish a theory of social systems, where intangible human social systems were formed by recursive networks of communications. We show here that Luhmann fundamentally misunderstood Maturana and Varela’s autopoiesis by thinking that the self-observation necessary for self-maintenance formed a paradoxically vicious circle. Luhmann tried to resolve this apparent paradox by placing the communication networks on an imaginary plane orthogonal to the networked people. However, Karl Popper’s evolutionary epistemology and the theory of hierarchically complex systems turns what Luhmann thought was a vicious circle into a virtuous spiral of organizational learning and knowledge. There is no closed circle that needs to be explained via Luhmann’s extraordinarily paradoxical linguistic contortions