Posted in Antitrust, Bill Gates, FUD, GNU/Linux, GPL, Microsoft at 12:32 pm by Dr. Roy Schestowitz

According to Gates, non-Free software is “747″ and Linux is “OpenSource Airplane”
Summary: Same old FUD patterns found in Microsoft’s internal discussions
OUR next Comes vs Microsoft ‘smoking gun’, namely Exhibit PX07191 (2002) [PDF], is an E-mail from Bill Veghte, which contains other messages. Jim Allchin writes to fellow Windows managers like Chris Jones, Will Poole, and Brian Valentine about Longhorn (to be Windows Vista) and passes Bill Gates’ words to a few others.
It is no secret that Microsoft loves schmoozing the press, so Bill Gates and Steve Ballmer had a dinner “with about 20 leading editors in Las Vegas.”
Here is a funny one from Bill Gates:
We have to be careful to just say “we are doing the software to allow for this” rather than saying “we are going to make this happen to undermine cable and DSL pricing”
That’s a classic.
There is no mention anywhere of Apple, but GNU/Linux preys on Gates’ mind. We showed this earlier today using another antitrust exhibit. Gates writes:
What is our view of Linux? I point out that Linux like Unix is not a single thing – it is many different systems that are not the same. The point that Linux is diverse is not one we are good at making. People who develop for RedHat Linux need to test for UnitedLinux. When people like SGI or HP enhance Linux you don’t get all those enhancements in one version -in fact just like Unix each company wants to have something that it does better and even though some pieces of source code are there it doesn’t mean that the pieces are integrated and tested together. 1 explain how the commercial model allows for testing and binary upwards compatibility.
What about Linux price? I explain how Linux plus Websphere is more expensive than Windows equivalent and Linux plus Oracle is more expensive than Windows equivalent. I explain how the richness of the platform that we sell for $500 just keeps getting richers – directory, certificates, app server, etc etc. I explain that for most projects the licensed OS is only a few percent of what people spend and getting the right platform can save much more than a few percent on the development, management, richness of the app, hardware flexibility, communications cost etc.. I say that is places where customers are very price sensitive like Education we have had special prices that are 15% of normal and we will keep those prices low enough to get very broad usage in education.
What about platform innovation – doesn’t Linux have more people doing cool stuff?. I gave the analogy of someone saying that the new 747 competitor is being designed by an OpenSource Airplane design group. The interdependencies and need for parallel coordinated innovation requires a commercial model with risk taking. A new 747 can’t be done by a non commercial model. I say that an opensource model could take an old design and have people do cloning and modest improvements on various aspects independently. I give tablet as an example of something that required changes in many aspects on the system -getting Office to do its work and handwriting recognition and new platform capabilities. I say that Linux is not where advances like great games, or tablet or management have come or will come despite the openness. I explain the things like community involvement we have learned from Linux. I go back to the argument above that we are forced in to do big advances or else or installed base will have “share” but there will be no revenue for us. I talk about Stallman’s view that there shouldn’t be jobs doing commercial software and how that would cut off a whole range of innovations that have come from the commercial world.
Notice how he mixes the terms “commercial” and “proprietary”. This is not an accident, he is deliberately confusing them to imply that Free software cannot be used commercially. This is classic FUD and it is valuable to see where it may originate from. We have begun assembling some other examples of GPL FUD that comes out of Gates’ own mouth.
He then goes on to talking about Vista and Xbox Live, but watch this bit about India:
What about Microsoft in india? Lots of discussion about my trip there and how Indian companies like Infosys and Wipro are growing and proving to be effective.
Shortly we will write about Microsoft’s latest cost-cutting plan and neglect of American workforce. It keeps getting more serious and even people in Seattle are nervous.
Another last GNU/Linux gem:
The old chestnut about us not innovating will die. There will still be the edge of “Wow they are big and smart and no one is gaining on them except perhaps the Linux model”.
GNU/Linux is certainly a recurring theme, which confirms that it is Microsoft’s main concern. The full exhibit lies below as plain text. █
Appendix: Comes vs. Microsoft – exhibit PX07191, as text
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Posted in Antitrust, Bill Gates, GNU/Linux, Microsoft, Servers, Windows at 6:35 am by Dr. Roy Schestowitz
Based on Comes vs Microsoft exhibits, we already know that the company from Redmond is most afraid of GNU/Linux. There is no point in denying it and it is always valuable to see what the company says internally. In today’s exhibit, Exhibit PX08256 (2001) [PDF], a revealing memo from Gates is shown publicly, probably for the first time at least on the Web.
Jim Allchin distributes this in-progress memo from Bill Gates to Brian Valentine, Paul Flessner, Mike Nash, Will Poole, Yuval Neeman, and Dan Neault. Gates expresses concern about developers moving away from Windows:
Our strength comes from the singularity and popularity of the platform. even we can’t afford multiple overlapping messages especially when developers are moving to Linux and Java.
Right now they try pulling developers to Windows, .NET, and Visual Studio, thanks to Novell’s work on Mono.
Regarding quality, Gates concludes:
An ongoing jihad here is critical.
Jihad is a term that Bill Gates uses on occasions.
But here is the most interesting part:
Our most potent Operating System competitor is Linux and the phenomena around Open Source and free software. The same phenomena fuels competitors to all of our products. The ease of picking up Linux to learn it or to modify some piece of it is very attractive. The academic community, start up companies, foreign governments and many other constituencies are putting their best work into Linux.
Another drop of fear:
We need other creative ideas to allow Windows to match the viral nature of Linux.
According to Gates, GNU/Linux may be is easier than Windows (at least in areas that he mentions).
Provisioning and monitoring Windows systems needs to be far easier than Linux systems.
Microsoft understands that it needs to prevent GNU/Linux from becoming a commodity, which it is already becoming regardless of Microsoft’s efforts to prevent it (even with FUD, intimidation, and lawsuits)
The strength of this platform and the innovation around it is the key element in preventing commodization by Linux, our installed base and Network Appliance vendors.
Wallclimber, who kindly extracted and provided the full text, adds: “One thing that struck me in this one is the mention of Gmail (it’s mentioned under the heading “Asynch Communication”). Yet, the emails attached to the “Software Agenda” document are dated back in 2001.” She is referring to the following part where Bill Gates states:
We will continue to charge for email capability which we need to enhance with Gmail capabilities as discussed in the subscription memo, Unclear is whether Workflow or Portal Servers are separate and what access is paid for by having an up-to-date Office license.
Walt Mossberg and Gates are not exactly as separate as the Wall Street Journal wants readers to believe and here is more potential proof:
The PC has to have all the advantages of being a simple dedicated appliance without giving up the ability to run many applications and support a variety of peripherals and update the system software. Walt Mossberg and our satisfaction data say we haven’t done enough on this.
The full text is below. █
Appendix: Comes vs. Microsoft – exhibit PX08256, as text
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Posted in America, Australia, Europe, Law, Microsoft, Patents, XPS at 5:28 am by Dr. Roy Schestowitz
Summary: A lot of news about software patents and intellectual monopolies in general
IT HAS been a long time since the last post about patents, so here is a quick summary.
Patents in a Standard and Microsoft
Rambus is an example of a case [1, 2, 3, 4] where so-called standards get contaminated by patents, sometimes secretly. One of the key Samba lawyers (and one who stood up to Microsoft) wrote about patents in standards. He refers to the Rambus case:
We have just heard of a proposed settlement of an EC antitrust action against a private company named Rambus. Rambus has reportedly tabled an undertaking to reduce its royalties for DRAM patents, which would lead, technically, to a decision according to Art. 9 of EC Regulation 1/2003. The Commission has published it for market testing, inviting comments by the middle of July. Although the proposed licenses and royalties still raise questions, it is in the line of successes of EU antitrust activities where USA initiatives have most remarkably failed. But more importantly, it is the first signal to the world of standards that the recent free rides by some players in that field are going to be under vigilant scrutiny of the antitrust authorities.
Law.com wrote about Rambus as well. [via Groklaw]
The move closely follows the U.S. Patent and Trademark Office’s rejection of all 41 claims in seven of the nine patents Rambus asserted against Nvidia and 17 of its customers in the ITC case.
Digital Majority has made the observation that Microsoft may be hiding software patents in XPS. To quote from the XPS licence: “There is a requirement that any XPS implementation that is distributed, licensed or sold contain a notice in the source code of the implementation indicating that Microsoft may have intellectual property associated with the implementation and to provide a link to where the license may be obtained from Microsoft.”
“The TomTom case was another example where a Microsoft promise regarding patents was suddenly broken.”In reference to this Patently-O article, Pamela Jones wrote: “What he is saying is that it is harder to push through an obvious patent, and more exactly that if your patent is found to be obvious, the appellate court won’t help you as readily as it used to, due to the ruling in KSR. To patent lawyers, that is a bad thing. To me, thinking of patents like Microsoft’s FAT patents, it’s a good thing.”
The TomTom case was another example where a Microsoft promise regarding patents was suddenly broken. It is similar to what Rambus did and some might call it an “ambush”.
ACTA
ACTA is a global problem [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13]. Fortunately, some good people took it upon themselves to address it and Glyn Moody shares some of the details.
One of the frustrating aspects about the Anti-Counterfeit Trade Agreement (ACTA) is that it is a cosy club of rich and powerful nations plus a few of their equally rich and powerful chums in select industry. Meanwhile, hoi polloi – that’s you and me – don’t get a look in, even though we are the most affected.
The EFF too was involved in fighting ACTA using a lawsuit. Someone in Slashdot called ACTA the “Anti-Internet Freedom Agreement,” adding that:
ACTA will mandate software patents, criminalization of copyright infringements, censorship lists, data retention. States that today resist such measures due to local democratic pressure will be able to cite “Obligations under International Law” as an excuse to move towards eFascism. The goal is to send 4chan, piratebay, and anyone else who offends the powerful to jail.
New Zealand
The most urgent news comes from New Zealand, where Free software folks have noticed some disturbing developments following similar recent attempts to disrupt copyright law.
Software patents are not currently available in New Zealand, although several companies have tried to get “by the back door”, i.e. by tying the software idea they want to patent to some piece of hardware.
A software patent is a state-enforced monopoly on a idea. They exist in the US and some other countries, but not in many places including New Zealand. We don’t need or want them here. If you want some reasons, here are five good ones:
More information can be found here:
The director of the End Software Patents campaign Ciaran O’Riordan writes to warn of an imminent threat of software patents in New Zealand…
This has just reached the press:
Open source activists target software patents
Open-source champions are pushing to eliminate software patents from New Zealand through a Patents Bill now at the select committee stage in Parliament.
Such patents have been accepted by default for many years, but this is damaging to the software industry, which subsists to a great extent on adapting and including the ideas of previous inventors, says New Zealand Open Source Society president Don Christie.
USPTO
Moving way up north to the United States, the big news is a USPTO appointment which we already wrote about. David Kappos [1, 2, 3, 4, 5, 6] may not be the worst (re)placement, but there is usually room for improvement as Kappos does not oppose software patents. There is some punditry about the subject and the FFII rightly gets upset that the USPTO is already blocking access to Bilski’s pending patent application. Whose office is this?
The US Supreme Court will soon hear Bilski on why software and business method patents are so good for the US economy. I was trying to find out where the Bilski’s pending patent application was published, and I ended up writing to the new USPTO President and ex-IBM David Kappos. I finally got an answer from a USPTO official that the Bilski’s pending patent application cannot be seen by the public.
We’ll come back to it in a moment.
Over in South Africa, this article was published regarding the Bilski case, whose absurdity is demonstrated by this older article from IEEE Spectrum.
It is important that the Bilski judgment be understood correctly, and not misinterpreted as meaning the end of software patents in the US. However, there is a lack of clarity as to which kinds of patent claim will satisfy the Bilski test, and it is therefore good news that the US Supreme Court has agreed, on 1 June 2009, to hear arguments in Bilski v Doll to review the Federal Circuit decision. The Supreme Court will deal with two questions: firstly, does the Federal Circuit’s decision conflict with the Supreme Court’s decision in Diamond v Diehr where the court held that the only non-patentable subject matter is “laws of nature, physical phenomena and abstract ideas”; and secondly, does the “machine-or-transformation” test conflict with the US Congress’s intent that business methods are patentable?
The Supreme Court may uphold the “machine-or-transformation” test, may alter how the test is administered, or may adopt another test altogether. Oral hearings will commence in October 2009, so it will be some time before a decision is issued.
More information can be found here:
Since the Bilski patent application has never been published, it is hard to determine from the claims if its commodity hedging scheme requires a computer for any practical use. If the hedging scheme requires a computer for any practical use of the invention, then denying the patent just because it does not recite the hardware is absurdly formalistic. If the invention does not require a computer for any practical application of the invention, then it is hard to see how the invention is novel. In this case, the courts should avoid any overly broad pronouncements about business method patents or software patents and rule the invention is not patentable for lack of novelty.
Patent Baristas covered it as well.
Handicapping Bilski
IP Law & Business laments that when the Federal Circuit issued the landmark Bilski decision, some folks were ready to call it the death of (most) business method patents, or even software patents—that view may be a bit premature. Even if Supreme Court nominee Sonia Sotomayor joins the court and turn out to be strongly pro-patent, those hoping for stronger limits on what can be patented, there are still a number of way to find a majority. Several justices have, in other cases, dropped hints about what’s in their minds on this subject.
Here is a comment which states the absurdity of patents on sharing of photos.
Patents on “organizing and sharing images online”? Surely these are “business methods”. I hope the Supreme Court (In Re Bilski) can bring some sanity to this ridiculous software patent mess the lawyers have gotten us into.
EFF’s patent-busting project may not be the most effective way to battle this issue at its core, but another little milestone is marked with elimination of the notorious subdomain patent.
San Francisco – The U.S. Patent and Trademark Office has announced that it will revoke an illegitimate patent on Internet subdomains as a result of the Electronic Frontier Foundation’s (EFF) Patent Busting Project campaign.
U.S. Patent No. 6,687,746, now held by Hoshiko, LLC, claimed to cover the method of automatically assigning Internet subdomains, like “action.eff.org” for the parent domain “eff.org.” Previous patent owner Ideaflood used this bogus patent to demand payment from website hosting companies offering personalized domains, such as LiveJournal, a social networking site where each of its three million users may have their own subdomain.
Here are some more discussions on the subject.
EPO
As we noted earlier, the USPTO denies access to Bilski’s pending patent application, but FFII’s president (Benjamin) claims that he “got confirmation that EPO publishes pending patent applications, not like in the US.” There are barriers however:
EPO website and pending patent applications
Does someone has a link to a webpage of the EPO displaying a pending patent application?
Gauss is for the moment down (once again), it is time to move to make mirrors.
As Benjamin puts it, “things go wrong with the web memory: http://noepatents.eu.org, http://gauss.ffii.org, http://wiki.ael.be all gone.”
There seem to be new attempts (by lawyers) to bring software patents to Europe. IP Kitten (a set of lawyers) writes some more about the current situation, mostly by quoting:
The European Patent Office (EPO) does not grant patents for computer programs (“software patents”) or computer-implemented business methods that make no such technical contribution. In this respect the granting practice of the EPO differs significantly from that of the United States Patent and Trademark Office (USPTO). [IPKat comment: Although, after Bilski, it appears that the USPTO is now even more strict than the EPO]
The notion that software patents can magically intrude Europe through unification is further substantiated by this.
Step forward for an EU patent?
[...]
The European Union has moved to address a decisive issue key to the creation of the hotly-contested European community patent. At the end of May, European Industry Ministers agreed to ask the European Court of Justice (EJC) whether draft plans to cut the costs of defending patents in a single European patent court would be compatible with EU law. Because the European Patent Office also grants patents that are valid in non-EU member states – such as Norway and Switzerland – the topic is under debate.
The “community patent” is nothing to do with community in the inventors’ sense. Community of lawyers — maybe.
Green Party and Pirate Party
Not everyone has surrendered to this ludicrous idea that software development deserves monopolies. There are at least two political strands in Europe that explicitly oppose the EPO’s current practices. One of them is the Green Party, whose position is:
Public documents in open formats
Greens want public documents to be written and conserved in an open format, in order to keep public administrations independent from software publishers and patent holders and ensure document accessibility to all citizens, independent of which software he or she uses.
Regarding the EPO:
European Patent Office (EPO)
Greens want EPO to become a Community Institution, accountable to the Commission and the EP. The EPO shall be publically funded, in order to discourage their practice of issuing high numbers of patents in order to secure EPO financing, which is detrimental to the quality of patents. Greens propose that 5% of the renewal fees of patents are transferred to an independent research and innovation fund.
Another opposer of what the EPO is doing would be the Pirate Party, which according to Dailykos will continue to gain momentum. The lawyers at IAM are not entirely happy, obviously.
“The Pirate Party wants to fundamentally reform copyright law, get rid of the patent system, and ensure that citizens’ rights to privacy are respected.” And as of today, the Pirate Party is represented in the European Parliament, having secured just over 7% of the votes in Sweden in the European elections held over the last few days across the EU.
There are people who go even further.
In it, “Newspapers are elephants in a desert of their own making, desperately wandering from watering hole to watering hole, but the revenue flowing from each tributary of their 18th century monopoly on the sale of copies is drying up,” says Crosbie, adding:
“Neither fencing off the copies nor reinforcing the monopoly will help. Their business model faces absolute drought. So they collect, not to commit suicide, but to assemble their graveyard.
[...]
then i realized, i was an artist, and all the articles on ars, /., techdirt and here reminded me of patent trolls, copyright propoganda, ad nauseum.
Despite all that copyright propaganda, ad nauseum etc. it is opposers of such monopolistic abuse who are often described as the “bad people”, where “bad” just means “less wealthy” or simply the digital majority. It is largely the same when it comes to pure politics. █
“It is not the policy of the EPO to require or examine source codes […]. Moreover, given the length and complexity of source code listings, which can often stretch to hundreds of pages, it would be quite impossible to examine them.” —European Patent Office brochure
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