Bonum Certa Men Certa

Why the Melco-Microsoft Deal is a Form of Racketeering

Band on the snow



"Microsoft is asking people to pay them for patents, but they won’t say which ones. If a guy walks into a shop and says: “It’s an unsafe neighbourhood, why don’t you pay me 20 bucks and I’ll make sure you’re okay,” that’s illegal. It’s racketeering."

--Mark Shuttleworth



Summary: A deeper look at Melco's deal with Microsoft

IN some ways, the Melco sellout resembles the Brother Industries sellout. Microsoft blogger Mary Jo Foley wrote about this deal almost gleefully and also suggested that OEMs might be next to sign (i.e. sell out to Microsoft). Does she know anything that others do not? The short story as she tells it goes like this:



On July 15, Microsoft signed a patent-coverage deal with Melco Holdings, the Japanese-based parent company of Buffalo Inc. and Buffalo Group. Buffalo makes network-attached storage (NAS) and routers, including the LinkStation and AirStation products.


It has hardly been covered by the mainstream press so far, and surely not properly. The press is busier covering products that do not exist (e.g. Vista 7). What makes this patent agreement unique is that no patents are specified, no amounts of money are disclosed, but above all, Linux is not even owned by Melco Holdings, yet it has no qualm about injuring its producers for personal convenience. It is usually to be expected from mere exploiters ('proprietarisers') of Linux such as TiVo or ACCESS.

“There might be more (unannounced) such deals -- ones that rely on this Melco/Microsoft press release to justify the racketeering and suppress Linux adoption.”To put in perspective what Microsoft is doing here, it is a form of racketeering, which makes one wonder if the RICO ACT (Racketeer Influenced and Corrupt Organizations Act) becomes applicable. What Microsoft is saying goes along the lines of "we have a big gun here and you don't want us to pull it out on you, so why don't you pay us some money and we'll leave you alone permanently?"

Microsoft is also assisted by accomplice front groups (e.g. Jonathan Zuck), who are fraudulently pretending that small businesses [1, 2, 3] want to pass laws that illegalise GNU/Linux or tax it out of the European market. That, unlike the RICO ACT, is something that the European Commission needs to be informed about. To say more about the nature of these dealings, consider this new comment from LinuxToday: "All of these deals are being done in secret. It needs to stop so that we can this BS about Patents that Microsoft keeps using resolved- one way or another."

There might be more (unannounced) such deals -- ones that rely on this Melco/Microsoft press release to justify the racketeering and suppress Linux adoption. As Microsoft's earnings fall 32% (partly due to GNU/Linux) Microsoft hopes to make up for it by claiming ownership of Linux and making a cash cow out of it, using software patents. It's like another SCO and people should report this abuse, at least to the extent possible. It is the latest example in a long series where Microsoft operates more like the mafia than a respectable company.

“That’s extortion and we should call it what it is. To say, as Ballmer did, that there is undisclosed balance sheet liability, that’s just extortion and we should refuse to get drawn into that game. On the other side, if Microsoft is concerned about its intellectual property, there is no one in the free software community that wants to violate anyone’s IP. Disclose the patents and we’ll fix the code. Alternatively, move on.”

--Mark Shuttleworth



Comments

Recent Techrights' Posts

If Free/Libre Software is Adding Trillions in Value to the European Economy, Then the European Commission Must Crush Software Patents
Further to what we wrote yesterday
Over at Tux Machines...
GNU/Linux news for the past day
 
"AI" Hype or LLM Slop is Not About Efficiency, It's About Lowering Standards
It does not seem like IBM is genuinely committed to the same goals (or commitments) as the original Red Hat
Links 13/08/2025: GitHub Trouble and Openwashing by Microsoft OSI With the Typical Buzzwords
Links for the day
Microsoft Swallows GitHub Losses
Only Microsoft knows how much money it has already lost on GitHub
Gemini Links 13/08/2025: Climate, Coffee, and Deploying Troops in Washington DC After Pardoning 1,000+ Insurrectionists in Washington DC
Links for the day
The Register MS Lowered MS Focus This Week
We hope The Register recognises its errors and tries to make up for them
Learning Ethics From Jeffrey Epstein's Enabler/Client/Ally, Coca-Cola, and Microsoft Accenture
Whatever merits vocabulary changes initially had are being tainted or obscured by later iterations, which tell us to avoid word like "normal", which apparently offend some people (so they argue)
Personal Attacks From Rust People Serve to Confirm They Have Lost the Argument
"The discussion I find around the net so far has no technical merit and centers around ad hominem"
Physical Meters and Purely Mechanical Meters Aren't Dumb; It's Dumb to Mock or Dismiss Them as Antiquated
I've learned a lot this week, both online and over the telephone
IRC Proceedings: Tuesday, August 12, 2025
IRC logs for Tuesday, August 12, 2025
GitHub Will End Up like XBox and Skype
It is not likely that the XBox franchise will survive the next 5 years
Stones Thrown in Glass Houses
Projecting? You bet!
As Europe Gets Increasingly Serious About Software Freedom and Digital Sovereignty It Needs to Enforce a Ban on Software Patents ASAP
many councils in Europe move to Free software and US policy/companies cannot be trusted
Windows 12 in Bahrain (Microsoft "Market Share" Down to 12%, an All-Time Low)
They really ought to get away from Windows even faster
The Web Needs 'Pest Control' When It Comes to LLM Slopfarms
The goal is to discourage more sites becoming slopfarms
Microsoft Can Now Stop Reporting the GitHub Layoffs (Even When They Happen)
GitHub's original staff will see the true cost of becoming "b0rged" - something that Microsoft earned a bad reputation for
How to Get Very Bad or Even Malicious Code Into Linux? Write it in a Language That Linus Torvalds and Most Other Linux Developers Don't Understand.
One point nobody brings up is, what if code gets committed while evading audits and scrutiny?
Links 12/08/2025: Wikipedia Fails at UK High Court, Perlmutter Still Fights to Squash the Slop Lobby
Links for the day
Gemini Links 12/08/2025: Field Recording and Digital Legacy
Links for the day
Links 12/08/2025: WinRAR Zero-Day, SonicWall Does More Harm Than Good
Links for the day
Links 12/08/2025: More Sabotage of Underwater Cable Ahead of Russian Alaska Summit
Links for the day
Richard Stallman Will Not Miss Microsoft GitHub, It Was Only Good at Harvesting a Lot of Code for Plagiarism-as-a-Service
investors are apparently willing to lose money for buzzwords
Slopfarms Slopping Away at "Linux" and Spreading Microsoft Misinformation
Slopfarms don't comprehend this as they lack actual comprehension, they're just parrots
Links 12/08/2025: Science, Hardware, and Ukraine Excluded From Negotiations About Its Future
Links for the day
GitHub the Company Has, in Effect, Just Died (Time to Look for Alternatives)
To Microsoft, what's left of GitHub after dismantling/folding it is some "training set" (people's code, without permission to "train" i.e. misuse under the guise of "GenAI" plagiarism)
Linux Foundation Says "Housekeeping", "Hung", "Normal", "Native Feature/Support" and "Girl/Girls" Are Offensive Words
Bombing people is OK, just use the right "terms"
It Looks More Like Microsoft GitHub Layoffs
GitHub is just losing loads of money
Gemini Links 12/08/2025: Meditation, OpenStreetMap, Smolweb, and More
Links for the day
Google News is Dying: Most of Its Top Stories Now Are LLM Slop With Slop Images (i.e. 100% Fake 'Content')
Google News has been drowning in this sort of stuff for quite some time
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 11, 2025
IRC logs for Monday, August 11, 2025
Our Predictions Were Right: GitHub Dying as Losses Pile Up (as a Company It Cannot Continue to Exist, It's Not 'Free Hosting')
GitHub always lost money
Links 11/08/2025: Meritless Twitter Suspensions and Disney Scraps Deepfake Dwayne Johnson
Links for the day
Gemini Links 11/08/2025: Upgrading Debian Bookworm and Better Quality PDFs From Gemini Pages
Links for the day
Currys PCWorld Lied a Decade Ago, 10 Years Later It Still Effectively Voids Your Warranty for Installing GNU/Linux Despite It Being Increasingly Mainstream
Microsoft gatekeepers
Team GNOME Has Libeled Me for Nearly 20 Years
we are not dealing with sane people
Experience With Airlines in 'Web Sites' and in 'Apps'
In a lot of ways, Stallman Was Right about what JavaScript would turn out to be
Open Does Not Mean Free
wiser to ask if some program is freedom-respecting
The Register MS Takes Money From Companies Banned by the Biden and Trump Administrations (National Security Risk)
today's sponsor
Sabotaging GNU/Linux PCs (and Users) is Not a 'Joke'
maybe cruelty is the very objective
How We Process Screenshots of Slop to Suitably Tag Them as Slop
everything is a single command
Links 11/08/2025: Data Breaches, Politics, and Climate
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 10, 2025
IRC logs for Sunday, August 10, 2025
Gemini Links 11/08/2025: Tea Caffeine Hot and Super ZZ Zero
Links for the day