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

Start of September 2026 'Voluntary' Mass Layoffs at IBM, Start of October Red Hat Employees Forced Into the 'Bloodbath' (After Collapse of IBM's Shares)
Red Hat is in trouble
A Data Centres Hub Puts Everyone at Risk, Especially People Who Live Near Them at Times of War/s
Spoiler: Datacentres are military targets, they attract missiles, some with nuclear warheads
GAFAM Mass Layoffs and Mountains (Trillions of Dollars in 'Secret' or 'Off-the-Ledger') Debt
GAFAM is having layoffs this month
analytics.usa.gov Says 7% of Sessions Come From GNU/Linux and ChromeOS. If ~40% (Mobile) Get Omitted, It's More Like 11%.
In desktops and in laptops GNU/Linux has become a big player
IBM Cannot Survive for Much Longer, There Are Limits to RAs and Offshoring, IBM Now Asks Workers to Quit
IBM is in very serious trouble
Debian losses in Switzerland hidden until after DPL election debate
Reprinted with permission from Daniel Pocock
 
Links 06/08/2026: Billboard Chart Contaminated by Slop Plagiarists, Sheinbaum Blasts Social Control Media
Links for the day
A Long Break and What's Coming Next Year
Some time next year we definitely plan to show how the EFF failed women, failed bloggers, and basically prioritised GAFAM
Daniel Pocock on a "metre-long ballot paper"
The Debian "cult" (as he calls them collectively) is simply jealous of him
Links 06/08/2026: Disney and Fentanylware (TikTok) Deal, "Hearing Aids Shenanigans"
Links for the day
IBM Mass Layoffs Began Yesterday, They're Sold as "Voluntary", the "Offer" Runs for Two Weeks (Last Day August 19th 2026)
IBM will self-detonate while using contractual agreements to force people to smile
Many GNU/Linux PCs Are Not Connected to the Net or Don't Use the Web
Saying GNU/Linux user-agents are just "bots" (Microsoft Lunduke and other Microsofters say this) is like asserting that the Twin Towers fell not because of two giant planes but because of explosives
They Call Occupations "Professions" Because the "Pro" Means Something
If you want to find tech news online
New Conference Paper (Science of Cyber Security) Credits RMS With Delaying Passwords
When it comes to passwords, RMS was "right"
Removing Gender Barriers in Computer Science
It is not that "women aren't good at maths"
In Brunei, GNU/Linux Approaches International Average of 8.5%
a sharp rise from 0% to about 7.5% happened in a few years
15% of IBM Staff Marked for Layoffs ("RAs"), the Workers' Objective is to Find Another Employer and Leave
"That's not a workforce, that's a waiting room."
Maintenance to be Completed Tonight (IPv6)
Notice how, after 25+ years, we're still not fully adopting IPv6, we're only about 50% there
August 2026 Microsoft Layoffs Confirmed by Staff This Week
It's hard to assess how many are impacted but signed an NDA, preventing them from speaking about what really happened
SLAPP Censorship - Part 141 Out of 200: Brett Wilson LLP Failed to Learn From the Mistakes of the European Patent Office (EPO)
my solicitor, David Allen Green, put them in their place
Texts of the Claims From Balabhadra (Alex) Graveley and Matthew J. Garrett Almost Identical, I am Suing for Abuse of Process
Half a decade ago Balabhadra (Alex) Graveley from Microsoft and GNOME was arrested for strangulation in Texas
Gemini Links 06/08/2026: "Eat That Frog", Mutt Terminal Email Guide, and BASICODE
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 05, 2026
IRC logs for Wednesday, August 05, 2026
Big Announcement Tomorrow
Stay tuned...
GNU/Linux Seen Exceeding 10% in Antigua and Barbuda
In Antigua And Barbuda, what's seen this month is not far from the average
Gemini Links 05/08/2026: Family Room, Smoke, and Alarm clocks
Links for the day
The Establishment, Oxford, Google & Debian artificial intelligence conspiracies
Reprinted with permission from Daniel Pocock
SLAPP Censorship - Part 140 Out of 200: You Become What You Eat, Your Clients Become You
In 2024 Brett Wilson LLP failed to heed a decade-old warning
Links 05/08/2026: Microsoft's (XBox's) "Devastating July" and "Never Write With" Slop, Says New York Times
Links for the day
Gemini Links 05/08/2026: No to Slop, Dangers of Clown Computing, and Reducing Internet Usage
Links for the day
The Register MS Takes Money From NVIDIA and HP to Promote Their Ponzi Scheme, "AI", in a Fake 'Article' That Says "AI" 42 Times
"The media"... selling us scams for profit
Fertility app privacy, Britain's teenage pregnancies & faith based schooling
Reprinted with permission from Daniel Pocock
In Chile, GNU/Linux Approaches 4%
Let's see if it can exceed 5% by year's end
No Room for Misogyny and Incels in Free Software
How can we ever trust men whose own family and their own partners cannot trust?
How to Dehumanise a Triple National
Don't be easily incited against those who sacrifice a lot to inform the public of suppressed topics
In El Salvador, ChromeOS and GNU/Linux Now Measured at Around 12%
signs of gradual and steady adoption of GNU/Linux
Software in the Public Interest (SPI) Starts Spending Big Money in an Effort to Resist Lawsuit From Daniel Pocock
They've lost over half a million dollars in the latest 3 years
The Establishment, Cambridge, Steve McIntyre & Debian suicide cluster
Reprinted with permission from Daniel Pocock
Links 05/08/2026: Internet Archive Harmed by Slop Bot, "EBay And Former Execs Agree to Pay $56 Million For Trying to ‘Crush’ a Journalist"
Links for the day
Luxembourg and Software Freedom
Luxembourg's adoption of GNU/Linux has quite consistently been higher than the European average
The Free Software Foundation (FSF) Web Site is Online, GNU's Site Having Issues (Ongoing Issues)
We hope they can rectify the issues with the GNU Web site
Freedom Includes the Liberty to Disagree (and be Listened to, Not Censored)
Freedom is our collective strength
Tanzania: GNU/Linux Now Seen on 8% on Desktops/Laptops (User Clients)
numbers have more than doubled
IBM CEO Says IBM Won't be Bankrupt by 2028 or 2029 (When He Reaches Retirement Age)
IBM has no path to survival
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 04, 2026
IRC logs for Tuesday, August 04, 2026
Gemini Links 05/08/2026: Being Good, Tildeverse and Tilde.pink, Games
Links for the day
Links 04/08/2026: GAFAM Expressing Concerns About Dangerous Disinformation by Slop, Bill Epsteingate-Connected Litigation Firm Salivating Over Europe
Links for the day
Gemini Links 04/08/2026: Root Shell and "Duty of Care"
Links for the day
Alternate Data (Not IBM's Headcount) to Show Mass Layoffs' Effect at IBM (Despite Many Acquired Workers Via M&A)
mass layoffs at Hashicorp and at Confluent this year (media did not cover either).
Big Blue's Quiet Axe - Poem Regarding IBM "RAs"
No idea who posted this, but it is profound
Growing Proportion of Linux Commits Being Made by LLMs Not a Sign of LLMs Working, It's a Sign of Linux Development Being Shifted From Community to GAFAM and Other Slop Pushers
antagonist became apologist
Worse Than "Taking Your Job", the Slop Pyramid Scheme Will "Take Your Pension"
This will not end well
Abundance of Fake (Sometimes Paid-for) 'News' About IBM Will Discredit the Media as a Whole
In 'the news' today
Microsoft is Trying Vapourware Again (to Keep Developers and Gamers From Fleeing)
For XBox, the main thing over the horizon is additional layoffs
statCounter Reckons 12.33% of Web Traffic in Gambia Can be Attributed to GNU/Linux, Even 15% If Adding ChromeOS
Will this be sustainable?
Reminder: The Pedophilia Problem Comes From the Accusers
Attacks on Richard Stallman are a distraction; his accusers are themselves the culprits
SLAPP Censorship - Part 139 Out of 200: Solicitors Regulation Authority (SRA) Needs More Public Scrutiny (New Management Changed Nothing, It's Costing a Lot of Taxpayers' Money)
millions or maybe billions of pounds wasted
Rumours of Further IBM Shutdowns
IBM is going out of existence
Brigading Against Women - Part II - Threatening Women Using the Human Rights Tribunal of Ontario (HRTO) and Then False Threats Miscarrying the Name of a Court
In this series we intend to show the threats, the outcomes of those threats, the response to those threats
Collapse of MElon Companies a Taste of What's to Come for Slop Bubble and GAFAM (Trillions in Debt, Justified as Slop "Investments")
One good example of this was SpaceX
The 'Hyperinflation' in Hardware Dooms Video Hosting (Very Large Files)
a terabyte of video files would be expensive
Rumours of Silent Layoffs in Microsoft This Month (August 2026), PIPs and Global Voluntary Separation Agreement (GVSA), aka "Buyouts"
Will any investigative journalism follow or just shallow puff pieces and LLM trash from slopfarms?
Links 04/08/2026: "Framework for Musician Burnout" and Alexa+ "is a Buggy Embarrassment"
Links for the day
Signs That XBox as a Console is Coming to an End, Windows Gaming Will be Called "XBox"
"XBox" is the next "Surface"
Microsoft's Share in Search Falls Sharply in Europe
The layoffs at Microsoft's Bing will carry on
Romania: GNU/Linux Reaches 4% (Less Than EU Average)
We expect this same upward trend to carry on
Microsoft Sites or Sites Sponsored by Microsoft Angry That GNU/Linux is Gaining
The Microsofters cannot easily dismiss reports of GNU/Linux growth as "bots" or just allege that statCounter alone is wrong
Ableism in the Free Software Movement Typically Comes From GAFAM Operatives and Proprietary Software Apologists
And their hired guns
Afghanistan: GNU/Linux Steadily Rises to 9%
Windows is steadily declining
IBM Innovation: It Has Invented New Methods of Silent Layoffs or Secret RAs
How IBM disguises mass layoffs now
Many Anniversaries
Many anniversaries in quick succession
LLM Slop Won't Replace People and Jobs (in the Long Run)
At the end of the day, people who know their job offer more useful information, whereas LLMs waste people's time (typically an 'externality' to the entity deploying chatbots)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 03, 2026
IRC logs for Monday, August 03, 2026
Over 3,500 Known Gemini Capsules Accessible and Active According to Lupa
It finally happened this morning
Gemini Links 04/08/2026: Library Cards, Dead Ends in Software Development, and DOS on USB Key
Links for the day