FORECASTS  and waiting games  are both over. Novell’s latest results are in and they are no better than the last quarter’s (revealing that Novell operates at a considerable loss).
So first of all — let’s start with the good news. Novell employees needn’t worry about Ron, who received a $6.9 million compensation plan for his ‘wonderful’ achievements. It was similar two years ago.
But what are these achievements? Driving the company to this?
Novell Inc.’s (NOVL) fiscal first-quarter net income fell 36% on sharply lower interest income as invoicing fell short of expectations.
Here are the earnings figures:
For the first quarter, the company reported earnings of $10.7 million, or 3 cents a share, compared with $16.8 million, or 5 cents a share, in the year-ago period.
Revenue is down too:
Novell reported net revenue of $215 million, compared to $231 million previous year. Ten Wall Street analysts expected revenues of $229.95 million.
This pretty much confirms what we already know about the layoff because the company must explain to investors what it will do next. Novell has already laid off at least 25 SUSE-focused employees. They would have cost about 25 x $70,000 = $1.75m to keep per year. So they could, in principle, work for 4 years with a good wage at the expense of that “compensation” for Ron Hovsepian. How does it feel to be shafted by the very same management that sold out to Steve Ballmer, who is already busy suing Linux [1, 2]?
“Did they learn nothing from those FAT patents?”Meanwhile, elsewhere inside the company, Novell is making .NET more popular. Did they learn nothing from those FAT patents? Is Novell just another Microsoft department now? One that’s producing Windows software like NetWare and some Microsoft ‘plugins’ or Microsoft ‘addons’ for GNU/Linux (Mono, Moonlight)? For that task, Microsoft must be inside GNU/Linux, hence the alliance with Novell. They get to be inside SUSE, they have indirect membership in places like the Linux Foundation [1, 2, 3] and that’s just the tip of the iceberg. They gag critics that way. Even Red Hat must keep polite now.
As a side note, since everyone is talking about TomTom at the moment, it’s worth emphasising that this patent situation shows precisely what Microsoft might do with Mono and Moonlight and why it wants them inside GNU/Linux (Moonlight brings Mono with it to desktops like KDE). Novell increasingly focuses on Microsoft technologies. One of our readers said one hour ago that he tried “compiling mono from SVN on [his] gentoo box and it crashes with a sigsegv in the make process.”
The reader claims: “I go ask at #mono (on the gnome irc network) and miguel says ‘gentoo is eternally broken’.”
That’s nice. On the face of it, the only thing that’s “eternally broken” is Novell. And to quote other people, “Novell Is bleeding to death.” █
 The Outlook
Computer maker Dell Inc., retailer Kohl’s and software developer Novell Inc. of Waltham report quarterly financial results.
 Dell, Gap, Kohl’s, Novell on earnings deck
Novell Inc., which provides open source software for businesses, is foreseen posting fiscal first-quarter earnings of 6 cents a share on revenue of $227.4 million. Its shares were up 1.2% at $3.34.
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TomTom, which Microsoft elected to be its scapegoat du jour [1, 2], may fortunately be based in Europe, but the patentability of software over in continental Europe had Microsoft gleefully argue that the EPO “can’t distinguish between hardware and software so the patents get issued anyway.” Alison Brimelow (shown above) is still looking into it [1, 2, 3, 4, 5, 6, 7, 8]. At the moment, Microsoft is trying to formally legalise software patents (primarily in the EU and elsewhere in developed countries) in all sorts of ways. Over in the US, as stressed by Red Hat last week, there is a chance of software patents dying altogether — a possibility that would imperil these patents’ expansion to other continents/countries through so-called harmonisation or centralisation (e.g. Community patent). These would no longer be applicable.
Rob Tiller, Vice President and Assistant General Counsel at Red Hat, explained the need for patent reform and discussed the implications of the recent Bilski decision during a presentation on Saturday at the Southern Cailfornia Linux Expo (SCALE).
Soon enough there will be an important event which is EPO’s huge annual conference. The speakers for this year are mostly concerned with software patents. Logotec, for example, is an ACT proxy from Poland [1, 2, 3, 4, 5, 6, 7, 8]. There is also Mingorance from the Microsoft-sponsored BSA. The BSA too is one of Microsoft’s lobbyists for software patents and royalties across Europe [1, 2, 3, 4, 5]. They are all very hostile towards Free(dom) software and they are all over the place.
Here is another new link that shows the ongoing relationship between Microsoft and Jonathan Zuck of ACT (he has other shells), as well as Silver Lie promotion:
Copyright Laws for Web Designers and Developers. Learn the rules for using content produced by others, particularly as Web applications get richer and deep linking becomes more common. Get straight answers from a developer and not a lawyer to common copyright questions like “What are the real boundaries of the DMCA?”, “Where does traditional copyright apply and what is fair use?”, and “How do I license content for my Web site?” Speaker: Jonathan Zuck – Association for Competitive Technology…
It’s truly funny how Zuck pretends that he represents small businesses. While promoting some new AstroTurf campaign at
Innovators-Network.org he could also confirm to us that he is participating in “the working group on OSS and the contribution OSS can make to European Growth.” He’s referring to the Commission’s “European Software Strategy” WG7 on Open Source.
“Microsoft’s anti-Linux, anti-ODF, pro-software patents and anti-FOSS people are now participating in decisions about “OSS” in Europe.”Yes, that’s right. Microsoft’s anti-Linux, anti-ODF, pro-software patents and anti-FOSS people are now participating in decisions about “OSS” in Europe. They sure know how to stack panels, as those OOXML corruptions have already demonstrated.
“With nearly a thousand European SME members, we have a very real interest in seeing an economic turnaround in Europe in whatever form that might come,” Zuck writes. But who is it again that pays his wage? The company that’s suing Linux and open source using software patents? They cast it differently of course, saying that there are “nearly 4000 SMEs [they] represent.”
ACT is already writing (so fast!) about the TomTom case. Minutes ago, said one reader about this group: “This is so 90s. I hate when someone pretends to be on the small man’s side but in fact they’re not. They are just pretenders.”
It is impossible to see if it’s ACT’s people who registered the following domain because these people are typically all about ‘proxifying’ (using
DomainsByProxy.com in this case):
Created On:18-Aug-2005 14:36:15 UTC
Last Updated On:18-Oct-2007 03:08:14 UTC
Expiration Date:18-Aug-2009 14:36:15 UTC
Sponsoring Registrar:GoDaddy.com, Inc. (R91-LROR)
Status:CLIENT DELETE PROHIBITED
Status:CLIENT RENEW PROHIBITED
Status:CLIENT TRANSFER PROHIBITED
Status:CLIENT UPDATE PROHIBITED
Registrant Name:Registration Private
Registrant Organization:Domains by Proxy, Inc.
Registrant Street2:15111 N. Hayden Rd., Ste 160, PMB 353
Registrant Postal Code:85260
Registrant Phone Ext.:
Registrant FAX Ext.:
Admin Name:Registration Private
Admin Organization:Domains by Proxy, Inc.
Admin Street2:15111 N. Hayden Rd., Ste 160, PMB 353
Admin Postal Code:85260
Admin Phone Ext.:
Admin FAX Ext.:
Tech Name:Registration Private
Tech Organization:Domains by Proxy, Inc.
Tech Street2:15111 N. Hayden Rd., Ste 160, PMB 353
Tech Postal Code:85260
Tech Phone Ext.:
Tech FAX Ext.:
Here you can see why ACT participates in the ESS and here a CompTIA’s position paper on the ESS
[PDF]. CompTIA is yet another Microsoft pressure group [1, 2, 3, 4, 5, 6] and CompTIA’s Hugo Lueders is also a member of ESS WG7. Hugo Lueders, a political scientist, also wrote in the German social democratic newspaper Die Zeit, adding a contribution about a Garaudy book (1972). The neo-Marxist Garaudy is today mostly known for his anti-Semitic writings.
Microsoft is running out and about everywhere in Europe, so characteristically boasting its infinite “innovation” in its Web site that’s dedicated to “Growth and Innovation Day.”
One person writes: “I was in Brussels South train station today and there are huge displays for Microsoft’s “EU Growth & Innovation Day” on March 5th. A bit odd though since they prominently show an Asian woman; last year they showed Mediterranean & Nordic-looking persons. They always manage to get Commissioner Reding and other ministers for speechifying & "schmoozing", as usual.
“As far as I can make out Microsoft uses this annual opportunity to repeat ad infinitum that they have X employees in Europe at Y research centres, yada, yada.” █
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“If people had understood how patents would be granted when most of today’s ideas were invented, and had taken out patents, the industry would be at a complete standstill today.”
IN LIGHT OF the latest assault on TomTom (and Linux), Bradley Kuhn, who a few weeks ago commented on Microsoft’s "open source" posturing in [1, 2], has made the following statement:
Bradley Kuhn, Software Freedom Law Center policy analyst, told The Reg Wednesday evening: “It’s a good moment for people to take a step back and re-think how friendly Microsoft is to open source.”
This comes amid Microsoft’s attempt to pull an embargo against TomTom, having alleged that it had violated patents by using Linux and not paying Microsoft for the ‘right’. They want to essentially use financial strangulation against those who received no ‘permission’ from Microsoft to distribute Linux.
Gutierrez has a somewhat troubling view on patents, where he believes that all tech companies should effectively be paying pretty much everyone else patent licensing fees before they can build any products. Rather than seeing that as a problem — he thinks it represents a good thing. It’s difficult to see what the benefit is in all that wasted money changing hands… other than it’s probably what pays his salary. Not surprisingly, Microsoft is using the infamous ITC loophole to get two shots at forcing TomTom to pay up — meaning that it’s both sued the company in court, and gone to the ITC to have it try to block the import of TomTom products.
This is not the first time that Microsoft exploits such a legal maneuver. It’s truly an ugly routine.
It is not the first offensive lawsuit using patents from Microsoft but probably the first that explicitly involves Linux. Prior to that there was the Primax case [1, 2, 3, 4], which was all to do with computer mice. The Register has just pointed this out as well.
In the most recent case, Microsoft settled with Taiwanese mouse-maker Primax after accusing it of violating its tilt-wheel technologies.
One is able to gain insight into what was happening behind the scenes prior to this legal action. The first stage makes one wonder if companies like Brother were pressured into a patent deal with Microsoft. According to IDG:
Microsoft engaged in discussions with TomTom to license the technologies, but an agreement could not be reached, said Horacio Gutierrez, corporate vice president and deputy general counsel at Microsoft.
Here is why it’s important to have TomTom fight this battle and never settle.
Asked if this TomTom case is the start of a broader legal campaign over those alleged violations, Gutierrez said no.
It would set a bad precedence had TomTom decided to settle, which is what Sam Varghese imagines they will strive for.
TomTom is a Dutch company with a much bigger presence in Europe than in North America. It has a presence in Asia, Africa and Australia as well and sells its products in 30 countries and in 20 languages. It is a market leader in portable navigation devices.
However, people should not get overly excited and have visions of a trial like the SCO case; it is likely that TomTom was calling Microsoft’s bluff all this time and may now settle.
“Microsoft products need to be banned in the EU,” said one reader, but patents might be needed to achieve that. Where is OIN? It is its goal to defend Linux in such circumstances. The problem is that TomTom was hit by a mixture of many patents (some not related to Linux), so it might choose to settle the whole bundle. To TomTom, this is not a Linux-only issue and given that TomTom does not even support GNU/Linux desktops, there is room for doubt.
“Microsoft is seeming to get a death wish,” argues another person. Like SCO, Microsoft might have no effective tricks left, so it’s hoping to take other people’s revenue, including that of Linux. This also makes its competition more expensive.
As pointed out yesterday, Microsoft is suffering badly and it is in debt territories by now. In fact, it’s stock is doing no better. From yesterday:
Microsoft shares hit 11-year low
Microsoft’s failure to announce more cost cuts sent its shares to an 11-year low on Tuesday
Even the Microsoft-friendly press was unable to spin this positively.
Shares of Microsoft sank 58 cents, or 3.4 percent, to $16.63 in midday trading amid a broader market sell-off.
Microsoft is approaching debt or is already in it. The economy makes it worse for them (people favour sub-notebooks where Windows is almost free in the gratis sense), but their approach against TomTom is tactless. They are suing many people who are also Microsoft customers. They are using intellectual monopolies (as applied to software) against a European company where software patents are not valid. What’s more, TomTom is no fan of patents [1, 2, 3, 4]. For TomTom, this whole story might actually bring publicity and sympathy. If they fight Microsoft, they’ll become heroes in the minds of many.
“[The] world is over for Microsoft,” argues another person, adding that it’s “Funny the attack on Linux at TomTim does not contain the 200+ they claim are on the Linux kernel.” This confirms that Microsoft realises it can’t compete without sabotaging others. It also puts in doubt those figures (# of patents) which Microsoft never defended.
“It also puts in doubt those figures (# of patents) which Microsoft never defended.”Further, says reader: “Now it could get bad for Microsoft as well, particularly if the FAT patents get broken.” They might be trying to scare those who are considering platforms like Android.
One person argues that “Common Name Space for Long and Short Filenames” is an area where prior art is futile and another person asks, “don’t all the mobiles that use flash-storage use FAT somehow?” FAT would indeed affect other Linux-powered gadgets, so it’s important to fight this battle to the end. “Monopoly abuse” can be used as a defense because FAT patents came up in the European courts in such a context before.
OIN is supposed to hop in and defend Linux, potentially by counter-suing. Failing to do so is failing to stand up to the promises. But then there’s Microsoft's own patent troll, Nathan Myhrvold, who serves ‘their’ extortionate OIN equivalent. Battles of patent ‘umbrellas’ ahead?
TomTom should challenge this one along with other affected parties and someone should encourage them not to settle. One reader argues that the “Big thing [is that] there are lot more effected parties. Microsoft could have just opened a Pandora’s box. [The] SCO case went south when more interested parties came out the woodwork — [parties] that SCO didn’t know what to do with.”
“TomTom could try embargoing Microsoft as well,” suggests another reader. He argues that “since most of there development is done overseas and is imported Microsoft is playing a really risky game of chicken.
“Delay on code imports would stuff Microsoft Windows 7 release.”
Arguing that “the cats out of the bag,” one reader suggests that this is a good reason to drop patent traps like Mono. Microsoft is a patent aggressor now and it expressed plans/intent to plant Mono in devices just like TomTom.
Microsoft is aiming at a weak target, according to a person who writes that:
In the beginning of 2008 TomTom traded at 70 euro per stock on the Dutch stockmarket. Now they are worth 3 euro per stock. Microsoft is hitting hard on a company that is already in the drain. How can TomTom afford to defend themselves after a disaster year like 2008 was for them? Microsoft has got money for sure, and with this economy everyone will be scared to step up against Microsoft. They are using the economic climate to bully the entire industry (remember TomTom is just one company, they used blackmail to extract license fee’s from many companies before this).
Soon MS will monopolize the patent trolling business. I hope people will react to this and create a new better faster light-weight FS sort of like what happened with the GIF -> PNG transition (and which is happening right now with the OGG revolution driven by Wikipedia and Mozilla).
To conclude in the words of a reader, “TomTom should never get into cross-license here, that is clearly Microsoft’s number-one option… mak[ing] it even more so look [like] anyone embedding Linux needs that [...] cross-license.” Some further discussion appears in LWN for those who are interested. █
“I was going to spend my money on upgrading to Windows 7 when it is released, but after reading this, I am disgusted at Microsoft’s apparent greed…”
Photo under the GNU Free Documentation license
Update: TomTom is fighting back.
Dutch navigations solutions company TomTom NV ( TOM2.AE) said Thursday it rejects all Microsoft Corp.’s (MSFT) claims that it is infringing on eight of its patents.
Earlier this week, TomTom reported a EUR989 million fourth-quarter loss, and warned that it could breach its debt covenants. The bottom line was hit by lower sales in both the U.S. and Europe, TomTom’s main markets, but also by a EUR1.1 billion impairment charge related to the company’s 2007 acquisition of digital map maker Tele Atlas.
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