Bonum Certa Men Certa

Microsoft is a Major Patent Troll, By Proxy

Nathan Myhrvold/Intellectual Ventures is to Microsoft
what Sisvel is to Philips [1, 2, 3, 4, 5, 6]



Nathan Myhrvold



When writing about Acacia, we were unable to show clearly enough its connection with Microsoft, but top-level appointments were made of Microsoft staff just days before they attacked GNU/Linux [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11] and also around the same time that patent threats were issued by Microsoft's CEO.



The Acacia debacle had some many 'coincidences' around it (circumstantial evidence only), but Nathan Myhrvold is no coincidence. Him and his shell firm, Intellectual Ventures, are in part the creation of Microsoft's former chairman, Bill Gates. We did stress some time in the past that Gates had actually invested in his former close colleague (Myhrvold [1, 2, 3, 4, 5]), who operates a patent-trolling firm.

There is a new article in the Wall Street Journal which reveals more details. It's worth starting with this:

Nathan Myhrvold: The genesis of this idea was when I was at Microsoft. We had a problem with patent liability. All these people were coming to sue us or demand payment. And Bill (Gates) asked me to think about if there was a solution. This is what I came up with.


So, this was the eureka moment. Myhrvold was, in some sense, designated to become Microsoft's proxy for patent litigation, which would be also well funded by Gates himself (not Microsoft, i.e. it's a private or secret investment). Since Myhrvold's company will have no products, the bad reputation won't be an issue. From now on, it may be safe to assume that Myhrvold and his company are a Microsoft spinoff or part of Microsoft. Thus the title of this post.

Going back to the Wall Street Journal, the following is stated in a separate but related page.

Over the past few years, the former Microsoft Corp. executive has quietly amassed a trove of 20,000-plus patents and patent applications related to everything from lasers to computer chips. He now ranks among the world's largest patent-holders -- and is using that clout to press tech giants to sign some of the costliest patent-licensing deals ever negotiated.


Groklaw points out this other example of Myhrvold's activities, which are shrouded in some secrecy.

John Amster, one of two former Intellectual Ventures executives that formed RPX, said he will not detail the company's business model or customers until October. However he did say RPX will acquire patents in a broad range of technology and e-commerce areas, especially when the patents are being asserted or involved in litigation.


At ZDNet, Nathan Myhrvold is being called a patent troll.

Former Microsoft exec Nathan Myhrvold has been collecting patents, extracting fees from technology companies via his company Intellectual Ventures. Is Myhrvold a patent troll with tech cred?

The Wall Street Journal has a long account of Myhrvold’s patent collecting efforts and how he is winning multimillion dollar payments from the likes of Verizon and Cisco. These payments are top secret material, but Myhrvold’s firm is the one reaping the rewards. Intellectual Ventures has more than 20,000 patents. In many respects, Myhrvold is just a patent trader. A few lawsuits could define him as a troll quickly though.


More about this here: [via Digital Majority]

Unlike most other pure licensing companies, Intellectual Ventures hasn’t filed patent-infringement lawsuits to help force settlements. But the group lobbying on behalf of tech companies in Washington, the Coalition for Patent Fairness — which includes several companies that have been approached for licensing deals by Intellectual Ventures — says it is only a matter of time. “Since these thousands of patents only give [Intellectual Ventures] the right to stop others from making products, through lawsuits, it is obvious what they intend to do,” the group said in a statement.

[...]

As with short sellers, large companies don't like plays that can shake them up and expose their inadequacies, and will spend large amounts to PR / lobby / legislate them away - and as any small player who has tried to enforce patent abuse by large companies knows, it's virtually impossible to win and ruinously expensive to fight. So in that respect, aggregation is a good thing. Its hard to tell from this article if its just part of the PR war or whether there has been a real step up in the shakedown.


"Our friends up north spend over five billion dollars on research and development and all they seem to do is copy Google and Apple."

--Steve Jobs (2006)



"Hey, Steve, just because you broke into Xerox’s store before I did and took the TV doesn’t mean I can’t go in later and steal the stereo."

--Bill Gates, Microsoft



"Usually Microsoft doesn't develop products, we buy products. It's not a bad product, but bits and pieces are missing."

--Arno Edelmann, Microsoft Manager (2007)



So companies like Xerox do the [R]esearch, Microsoft does the [D]evelopment (through acquisition) and companies like Acacia, SCO and Intellectual Ventures can may handle the litigation/extraction (through scare tactics).

Intellectual Ventures and its ilk are arguably the single biggest risk to America's continued leadership in technology and innovation. As dsquared elegantly put it in a comment here in May, the company might do a bit of R, but it doesn't do any D. Instead, it acts as a brake on any company wanting to do substantive R&D of its own, since there's a good chance Intellectual Ventures will have got there first, patented the idea, and then just decided to sit on it until somebody dares to violate it.


It's worth adding that Microsoft already uses its patents offensively [1, 2]. In fact, it even strikes deals whereby it extracts money based on imaginary things. Here is the latest example, be it Microsoft and Pioneer's cross-licensing.

Although the contents of the agreement, including the specific financial terms, are confidential, the parties indicated that Microsoft is being compensated by Pioneer.


In essence, as we warned before, Microsoft makes money by sucking other companies' reserves for use of what their claim to be their "innovation". Microsoft found a new business model and now relies on revenue from software patents. If only more people could see it.

"I think that "innovation" is a four-letter word in the industry. It should never be used in polite company. It's become a PR thing to sell new versions with."

"It was Edison who said "1% inspiration, 99% perspiration". That may have been true a hundred years ago. These days it's "0.01% inspiration, 99.99% perspiration", and the inspiration is the easy part. As a project manager, I have never had trouble finding people with crazy ideas. I have trouble finding people who can execute. IOW, "innovation" is way oversold. And it sure as hell shouldn't be applied to products like MS Word or Open office."

--Linus Torvalds, July 2008



Comments

Recent Techrights' Posts

Richard Stallman Gives Talk in 20 Hours at Ostschweizer Fachhochschule Campus in Rapperswil-Jona
The talk is in English
 
Using Slop (and Slop in Articles) to Attack Copyleft 'on Budget'
This article is pure BS from an anti-GPL and anti-RMS 'activist'
Why The Register MS Sold Out to Microsoft: They're Losing Lots of Money, The Register MS is Bleeding to Death, Based on Its Own Financial Records
With over 6 million pounds in debt (nearly 10 million US dollars) we guess it's likely some other company will take over the site (if it deems it worthwhile)
Microsofters' SLAPP Censorship - Part 7 Out of 200: Like With the Serial Strangler From Microsoft, Misuse of UK-GDPR to Try to Hide Embarrassing Facts
They do and say really bad things, then allege it's a "privacy violation" to mention those things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 08, 2026
IRC logs for Sunday, March 08, 2026
Gemini Links 09/03/2026: Exponentials and Tailscale
Links for the day
Sloppyleft
Article by Alexandre Oliva
Hard to Replace 'Human Touch'
The reason many people insist on using GNU
The Slop Companies Gamble at Our Economy's Expense and They Know It's a Losing Bet (So It's a de Facto Robbery)
The crash of this bubble isn't just inevitable, it's already happening and receding sporadically because of false announcements about money that does not actually exist (to "buy time")
Suppressing Speech by Blackmail, the Iran Story
When Debian wanted to stage a seemingly legitimate election it needed to have more than one candidate running; so eventually the female partner of a geek rose to the challenge (had no coding skills at all, no technical history in Debian) and lost to the "incumbent German"
Too Focused on Buzzwords the Media is Paid to Saturate the Collective Mind With
Just because companies do really bad things in the digital realm does not imply "AI" or follow from "AI"
Discrimination and Prejudice Against Female Journalists
we can shame people who attack a reporter on the grounds of gender
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part II - Trying to Put People in Prison for Committing the Act of Journalism
This is abuse of process
Attack on Copyright and Copyleft by Code Conversion Is Nothing New, It Predates Slop (Code Produced by LLMs) by Several Decades
Even back in the 90s many people converted programs from one language to another. That could invalidate copyleft (and copyright), which already existed
Almost a Slopless Weekend for "Linux"
Let's hope slop will come to an end or sites will cease linking to slop
Insiders Explain Why IBM is Dying and the Inherent Culture Problem
There are many ways to shave this IBM cat
Links 08/03/2026: Microsoft Lost $400 Million on "Project Blackbird" and Half the States Sue Over Illegal Tariffs
Links for the day
Links 08/03/2026: Cisco Holes Again and "Blatant Problem With OpenAI That Endangers Kids"
Links for the day
Activism/Journalism in Our Blood
one must fight for one's principles
Gemini Protocol in Its Prime
What's particularly neat about Gemini Protocol is that it's fast and cheap
Microsofters' SLAPP Censorship - Part 6 Out of 200: Intentionally Misnaming Women, People Who Offered to Testify That They Too Had Been Subjected to Similar Abuse
Today it is International Women's Day
Even Fedora Leadership Cannot Figure Out the Microsoft Kill Switch/Back Door, 'Secure' Boot
It does not actually enhance security
Bruce Perens: Richard Stallman "Has Achieved His Goal"
Stallman's next talk is tomorrow
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 07, 2026
IRC logs for Saturday, March 07, 2026
Gemini Links 07/03/2026: Buying Woodland, Indra 1.3.0 Available, and LLM Exhaustion
Links for the day
The Harder They Attempt to Take Down This Site (and Take Away Liberties), the More People Will See This Site
We'll carry on as usual, as from sunlight comes justice
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part I - A Matter of National Security
Those people are Americans who try to advance the interests of American corporations by weaponising courts abroad
Why They Always Try to Shoot the Messenger (When the Message Harms Profits)
A matter of economics
Coinbase - Like Block - is in Huge Trouble, Its Debt Nearly Doubled in Half a Year
The real reason Block is collapsing is its debt
Starting Another New Series This Evening, It's About American Folly
today commences a series long in the making (years)
Nations Stand to Benefit From Gender Equality and Increased Participation by Women
International Women's Rights Day starts in about 6 hours in the UK
Microsoft is Losing It, Now It's Censoring Its Critics and Sceptics
Whether the measurements made by statCounter are accurate or not, the trends (long-term) typically make sense
WIRED (Conde Nast) Reviews Are Paid-for Marketing Spam, They Change Dates on Old 'Articles' to Make Them Look Relevant and New
The Web is fast becoming a burial ground for ads, trash, spam, and slop
Gemini Links 07/03/2026: Humour, Chilling, and Oversized 'Phones'
Links for the day
Cyber|Show by Andy and Helen Recommended by Techrights and Tux Machines
If your time is limited and you look for informative essays and shows (audio)
Links 07/03/2026: CJEU to Finally Examine Behaviour of the Illegal and Unconstitutional Unified Patent Kangaroo Court, Creative Commons (CC) Hosts Open Heritage Statement Event in Amsterdam
Links for the day
Microsoft's Thailand Problem
It's definitely not Windows
New Lows for Microsoft in Micronesia
GNU/Linux has shown some growth there too
Microsofters' SLAPP Censorship - Part 5 Out of 200: Clearly Not a Security Professional/Expert, Only Ever Pretending to be One
"The Claimant says he is “a computer security expert”, but his background and his track record in the education sense (genetics) does not support this assertion."
Links 07/03/2026: Fuel Already Running Low and "Economic Crisis of the Iran War"
Links for the day
The Corporate Media Repeated the Lies Told by Jack Dorsey ("AI" Hype), Now It Does the Same for Larry Ellison
Disregard the hundreds of headlines that say mass layoffs at Oracle are due to "AI" something
The Free Software Community is Gaining Momentum as Its Importance is More Broadly Realised
As long as "trendy" technology goes in a negative direction there will be a growing portion in society looking for alternatives
Spooking or Chasing Away Women (From Computer Science)
The status quo discourages women from even trying to study Computer Science and related disciplines
"IBM Has Changed So Much in the Last Decade to the Point It's Completely Unrecognizable."
IBM is a dying, rotting company with a morbid culture
The Register MS, Sponsored by Communist Party of China (CPC)
What will happen when the bubble crashes the economy?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, March 06, 2026
IRC logs for Friday, March 06, 2026
Gemini Links 07/03/2026: Coffee Problem, Marchintosh, Learning, and "Selectively Disabling HTTP"
Links for the day