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

We Seem to Have Abandoned Science and Replaced Sound Policy With Private Patent Shareholders and College Dropouts Like Bill Epsteingate
Because of what they did there are now many people out there who reject all vaccines
Many IBM Layoffs, Centred Around Expert Labs US in Atlanta (Offer of "Relocation" Where No Such Option Exists)
So Techrights was assessing comments/gossip online and it was right about the Thursday cull
Richard Stallman's Next Public Talk is in Milan, Italy Next Week
Happy hacking
Why We'll Continue Covering EPO Abuses (Other Patent Offices as Well, as the Need Arises) for Many Years to Come
We're basically becoming Russia
These Feet Are Made for Walking
Humans are apparently so very clever that they decided to form a "progressive" consensus: feet no more
 
The Microsofter Who Kept Sending Threatening Post and E-mail to My Wife Has Been Joking He'd Work on Code for "Sexual Favours"
For one thing, for software professionals (like for landlords), this is outright illegal and you'd get arrested for it, and moreover it's no joking matter because there are many real victims of such sexual exploitation
Links 23/05/2025: Violent Attacks on the Press, VMware Price Hikes, Vista 11 Considered Unsuitable for Any Confidentiality
Links for the day
Gemini Links 23/05/2025: Balkan Tourism, UK Polls, Reticulum and Meshtastic
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 22, 2025
IRC logs for Thursday, May 22, 2025
Back to Basics, Folks, "AI" (Plagiarism) is Symptom of a Dying Industry Looking for Whatever Prey It Can Devour
lousy/sloppy imitations
Liam Proven's Thoughts on "AI" Being a Scam No Different From Religions, Alternative Medicine, and More
"Is there anywhere outside of retrocomputing that doesn't have AI in it?"
Slopwatch: Slopfarms That 'Hallucinate' (Yield Falsehoods) Cited as Credible Sources and Microsoft Media Gaslighting Everybody
Part of the problem is, Google News
More Media Coverage and Photos From Richard Stallman's Presentation in Liberec (Czech Republic)
Here are some photos
The Microsofter Who Kept Sending Threatening Post and E-mail to My Wife Has Been Spooking Women for at Least Two Decades
censorship was the ultimate goal
Links 22/05/2025: Openwashing, Dumping Microsoft's Entrapment (Microsoft GitHub), and New Climate Disasters
Links for the day
Gemini Links 22/05/2025: Crimson Pro Font and CGI in Bash
Links for the day
IBM Goes to India, Fires People in the United States (Under the Guise of "Relocation" or Similar), Accusation of Bribery in the Company
LLM slop sites (some are pure slopfarms) from India say the IBM layoffs result in hiring "AI" (the "I" stands for India)
Links 22/05/2025: TikTok Laying Off Again, Microsoft-Backed Builder.ai Set for Bankruptcy, Scam Altman Uses 'Funny Money' to 'Buy' (Hire) Company
Links for the day
The Evolution of Microsoft's War on GNU/Linux
13 sins
OFTC Has Just Culled About a Third of Its Online Users
It's not the first time they purge or force offline many people/bots
My New Desk Arrangement (and More Breaks From the Keyboard)
all in all yesterday I devoted 4-5 hours to redoing and shuffling stuff
Central Staff Committee of the EPO Opposes Abuses Against EPO Staff, Challenging SuccessFactors Stunts
Europe became institutionally colonised
Gemini Links 22/05/2025: "Conspirituality" and Visiting One's Old University
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 21, 2025
IRC logs for Wednesday, May 21, 2025
Bigots and Lunatics Who Attack Microsoft Critics, Projecting Their Own Bigotry by Accusing Others of Imaginary Things (Which They're Innocent Of)
"In psychology, projection refers to assigning your negative traits or unwanted emotions to others without being aware you’re doing it."
"The Appeals Committee [at the EPO] Unanimously Stated a Formal Flaw in the Consultation of the General Consultative Committee (GCC) on the Reform"
It's a truly horrifying situation
Microsoft Killed the Term "Open Source" (by Bribing/Taking Over OSI, 'Linux' Foundation Etc.) and Now It Needs to Kill the Brand Linux (Because Windows Just Won't Run!)
Why else would Microsoft falsely describe Windows as "Linux" and "Open Source"?
Slopwatch: Liars for Microsoft, Plagiarism, and IBM Red Hat Markets Slop as "AI"
Today was a bad day news-wise
Links 21/05/2025: Climate Problems and Ceasefires No Longer Foreseen
Links for the day
Gemini Links 21/05/2025: "Shrimps of Doom" and "ASCII-graphs"
Links for the day
Links 21/05/2025: GitHub Becoming Slop, MElon as a Drug Addict Considered National Security Risk
Links for the day
Slopwatch: Slopfarms 'Think' Redis is "Linux" (RedisRaider)
Today we'll keep it short and to the point again
IBM Has Allegedly Just Sacked Mr. McKinsey (McK), Clay Cowan, Its Fourth CMO in a Few Years
To insiders he represented the company that's killing IBM or advising IBM on how to self-destruct
Gemini Links 21/05/2025: Trips, 4D Golf, and Writing Software
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 20, 2025
IRC logs for Tuesday, May 20, 2025