EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

07.17.09

Why the Melco-Microsoft Deal is a Form of Racketeering

Posted in Deals, GNU/Linux, Microsoft, Patents at 8:22 am by Dr. Roy Schestowitz

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

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. Yuhong Bao said,

    July 20, 2009 at 1:51 pm

    Gravatar

    “The press is busier covering products that do not exist (e.g. Vista 7).”
    Do not exist? Well, Windows 7 certainly do exist, but is not released yet.
    Can you use a better example?

    Roy Schestowitz Reply:

    It exists in the same sense that Chrome OS exists. It is not a finished product. Until it’s on the shelves, it is either a prototype or testing entity. Promises can be made (and voided) about release dates, traits, and features.

    Yuhong Bao Reply:

    Correct, that is why I said it is not released yet.

What Else is New


  1. The EFF Back to Tackling Software Patents, Not Just Patent Trolls

    Electronic Frontier Foundation lawyers start targeting large companies that exploit patents for intimidation and extortion, not just patent trolling



  2. Microsoft Wants to Devour the Competition (Linux), Devour People's Data

    Refuting the "new Microsoft" propaganda and some ludicrous concept that Microsoft is now "playing nice"



  3. Benoît Battistelli Thinks 'President' is Above the Law, Decides to Ignore the Court's Ruling

    Staff of the EPO is given yet more reasons to protest tomorrow at the British Consulate, for the so-called 'President' of the EPO reminds everyone of the very raison d'être for the protest -- a vain disregard for the rule of law



  4. Links 24/2/2015: Xfce 4.12 a Week Away, GNOME 3.16 Previewed

    Links for the day



  5. Links 23/2/2015: Ubuntu Kylin 14.04.2 LTS, Cinnamon 2.6 Previews

    Links for the day



  6. IRC Proceedings: February 8th - February 21st, 2015





  7. The EPO's Sham 'Internal Investigation' of EPO Vice-President Željko Topić's Affairs

    The EPO never investigated the Željko Topić affair, it only pretends to have investigated (one small aspect, i.e. cherry-picking) using a Benoît Battistelli-controlled group



  8. Links 21/2/2015: GNOME 3.15.90, Google Wins Android Lawsuit

    Links for the day



  9. Microsoft AstroTurfing War on GNU/Linux is Still Going On, But Hidden Better, Uses API as Instrument of Lock-in

    The corruptible press continues to describe blatant attacks (Embrace, Extend, Extinguish) against GNU/Linux and Free software as Microsoft 'embracing' Open Source



  10. Lenovo's Superfish Scandal is Spyware on Top of Spyware (Microsoft Windows), the Problem is Inherently Proprietary Software

    Shifting focus to the root problem, which is neither Lenovo nor its laptops but the non-free programs installed on hardware



  11. Benoît Battistelli Once Again Threatens EPO Staff That 'Dares' to Protest, Battistelli Exploits Terror Attacks to Pretend to Respect Free Speech

    The European Patent Office (EPO) President, Benoît Battistelli, reportedly started threatening -- as before -- staff that decides to exercise the right to assemble and protest against abuses, including the abuses of President Battistelli himself



  12. Links 20/2/2015: Android Studio v1.1, GDB 7.9

    Links for the day



  13. Links 20/2/2015: Bloomberg Joins Linux Foundation, ClearOS Community 6.6.0

    Links for the day



  14. The Chartered Institute of Patent Attorneys Slams the European Patent Office for Structural Failings

    An important letter which we overlooked while writing yesterday's 4 articles about the European Patent Office (EPO); yet another key stakeholder complains



  15. Links 19/2/2015: Hewlett-Packard on Cumulus Linux, Previews of GNOME 3.16 Beta

    Links for the day



  16. Techrights Under Attack Again, Shortly After Important EPO Articles

    Techrights highlights a pattern that is months old; Site faces availability issues shortly after reports about the European Patent Office and its abuses



  17. EPO Staff Protests Against Benoît Battistelli’s Lowering of Patents Quality (Scope Expansion and Software Patents for Profit)

    A protest in Munich in less than 6 days will target Mr. Sean Dennehey, who has helped Battistelli cover up his abuses and crush legitimate critics, whom he deemed illegal opposition as if the EPO is an authoritarian regime as opposed to a public service which taxpayers are reluctantly (but forcibly) funding



  18. Breaking: European Patent Office Sued by Its Own Staff in The Hague, Must Unblock Staff's Voices

    The crooked management of the European Patent Office (EPO) gets in legal trouble after repeated attempts to cover up abuses and suppress criticism



  19. Željko Topić's History in SIPO Leaves a Legacy of Alleged DZIV Vehicles (Bribes), Authorship Abuses, and Intimidation Against Reporters

    Another deep look at Željko Topić's background in Croatia, preceding his very notorious appointment to the EPO where he now serves as Benoît Battistelli's most controversial attack dog



  20. The Old Obsession With Patent Trolls Continues to Distract From Debate About Software Patenting

    A roundup of recent coverage about monopolies on algorithms in the United States



  21. Links 19/2/2015: 64-bit ARM Linux, Chinese New Year

    Links for the day



  22. Links 18/2/2015: Linux Report, FlightGear 3.4

    Links for the day



  23. EPO Scandals: The Story So Far

    An overview of articles about mischief, misconduct and breach of laws at the EPO



  24. Links 17/2/2015: TripleO, Pivotal

    Links for the day



  25. Links 17/2/2015: SystemD 219, Frugalware 2.0 (Rigel) Released

    Links for the day



  26. Željko Peratović Slammed for Whitewashing Željko Topić After Publishing Important Piece on Behalf of Key Sources

    Response from Ivan Kabalin to Zeljko Peratovic's so-called "apology" which is both mysterious and seemingly inadequate as it does nothing to actually explain what was wrong (if anything)



  27. Benoît Battistelli Has Made Oversight of European Patent Office Absolutely Impossible





  28. Microsoft Already Killed Nokia, Don't Let It Kill Android Players Too

    Microsoft's strategy against Android mirrors the company's evil strategy that derailed MeeGo and Nokia



  29. Intel Continues to Attack Software Freedom Through UEFI

    The Trojan horse that Microsoft uses to cement its monopoly on desktops and laptops (making it hard or impossible to install and run GNU/Linux) is also being misused to block Coreboot



  30. Links 16/2/2015: Netrunner 15, Bridge Linux

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts