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

Not Everything Can be Automated
not a new thing
IBM is Not Done Destroying Red Hat, Wait Till October 1st 2026 (More Layoffs and Bluewashing)
It's not bluewashing 'til it's 100% done
Only a Matter of Time Before IBM Drops to $199 or a Lot Lower Than That
How long can IBM overload empty shells?
Lots of Microsoft Just Loses Money, Not Earning Money
Due to profitability challenges it's hard to believe Microsoft will ever find a buyer for XBox
 
Linux Foundation an Enemy of the Planet, Proponent of Pollution and Global Heating
"could the "polluters pay" model be extended to the computing environment and used to take on Microsoft and Microsofters?"
Apple Will Increase Surveillance of Customers, Record Verbal Communications Under the Guise of "Hey Hi"
Apple now drinks that same Kool-Aid
Dave Winer, Blogging Pioneer, Sells Out, Spews Out LLM Slop to Readers
Another one bites the dust [...] Now it's a slopfarm of sorts
GNU/Linux OS in ComorOS
Now, as in recent years or the last year, the GNU/Linux "signal" is growing significantly
Microsoft Redefines "Layoffs" to Give Smaller Tallies
It's not just calling them "buyouts" or saying people are merely "leaving" or "retiring"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 21, 2026
IRC logs for Tuesday, July 21, 2026
"LF Sex", Nothing to Do With Linux
a lot of explaining to do this week
Gemini Links 21/07/2026: Nostalgia, Shogi, and New Gemlog System
Links for the day
Guyana: GNU/Linux Rises to New High, 7%
Guyana is part of the trend
Oman: GNU/Linux Up to 7%
It was 5% last year
The Solution is Never 'Free Hosting' in Proprietary GitHub (Microsoft), the Solution is Self-Hosting
Third parties never care about your projects as much as you (yourself) care about them
From GAFAM's Perspective, Jeremy Bicha Did Nothing Wrong
All is OK as long as he does not criticise monopolists and billionaires
Bluesky Was Such an Utter Failure That After 18 Months Mozilla Goes Hug a Nazi Platform That Produces Child Porn
What compels Mozilla to come back there? The child pornography scandal? The adorable leader?
GNU/Linux at Grenada Measured at 14% This Month
GNU/Linux was stuck at 0% for a long time
In WordPress, Newer is Not Better (Maybe Better Off With No WordPress at All)
To Hell with bloat and feature churn
As Slop Bubble Implodes (Inevitable), the Dishonest, Corrupt, Compromised Media Tries to Blame "China" Again (Like it Did With "DeepSeek" in Past Years)
Here we go again. We've been there before. Same spin, this time not "DeepSeek" though.
Red Hat (IBM) Has Long 'Reassigned' (Bluewashed) Red Hat Staff to Ruin Fedora, Now It Does the Same to GNOME
What next from IBM's Krishna?
Links 21/07/2026: Google Stagnating, Slop 'Apps' Are "Flooding Apple’s App Store"
Links for the day
Gemini Links 21/07/2026: OPNSense Upgrade Problems, Zilog Z80 at 50, and Lessons From Terminator
Links for the day
IBM Lawsuits Over Alleged Fraud Are Piling Up
We'll keep an eye on the lawsuits
Arianna Taite on Odds of Australian (Daniel Pocock) Winning Clacton By-Election
His detractors somehow try to twist or frame him (Pocock) as an impediment to women while the exact opposite is true
This Coming Weekend Marks 4 Years Since We Dumped Content Management Systems (CMSs) in Favour of Static Site Generators (SSGs)
the first page dated July 25
Slop's Latest Casualty: The Credibility of Linus Torvalds
If you care about millionaires and billionaires, follow Torvalds (he is already in that "club")
Techrights Will Become More Productive (More Output) Over Time
Big stories about to land
Touch Grass
Happiness involves what humans have evolved to appreciate, not what humans create to sedate the mind (like skinnerboxes)
The Cyber Show on Technology Having Become a Tool of Mass Psychosis, Not Enablement or Emancipation
Technology as mass psychosis
The Rumour Said That a Second Wave of Microsoft Layoffs Would Come This Week (Ahead of Fake 'Results'), Maybe Tomorrow
Let's wait and see how "MSM" unfold
To Wikipedia, "Notability" is Just an Excuse to Hail People Who Serve Billionaires While Marginalising or Defaming the Rest
Wikipedia is an advertising space
Our Series About Solicitors Regulation Authority (SRA) and SLAPPs Will Resume Soon
Originally, in 2025, we gave ourselves 6 years (until 2031) to cover these issues, but we've seen since extended that to 10 years (until 2036) because of the amount of material we have
European Patent Office (EPO) Series: The EPO Transparency Gap
Despite the "European" tag in the organisation's name, the European Union has no jurisdiction over the European Patent Organisation
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 20, 2026
IRC logs for Monday, July 20, 2026
Links 20/07/2026: Lashes for Songs in Iran, Kurdish Language at Risk
Links for the day
Gemini Links 21/07/2026: The Boss Baby (2017) and 2026 Old Computer Challenge Epilogue
Links for the day
Canonical Staff Acting Like They Aim to Receive Job Offers From Microsoft
There are moreover allegations that Debian will do the same, in the same way Mono boosters infected both distros in tandem or in turn.
Worsening Staff Affairs at Microsoft
Microsoft is managing to piss off many of its own workers
Czech Mate for GNU/Linux on the Way
Czechoslovakia is having none of that "peace for our time" with Microsoft
Nobody Will be Left Who Trusts IBM Anymore
The common theme is, the management must be completely replaced as soon as possible and truth needs to come out
Wall Street is a Bubble and No Company is Worth 5 Trillion Dollars
It's not hard to see which stocks will crash the hardest (or fastest)
The Corrupt Have Historically Tried to Paint Their Exposers as the Real Problem
As usual, there are efforts to shoot or muzzle the messenger
Search Engine Market Share in Italy: Microsoft Falls to Third in Many Countries Including Italy
Expect more layoffs in Bing
Links 20/07/2026: Spotify Drowning in Slop, Expiry of Software Patents in MPEG-4
Links for the day
Gemini Links 20/07/2026: Another Step Towards Owning Personal Data and Gemtext2 Envisioned
Links for the day
European Patent Office (EPO) Series: Public Missions and Private Ambitions
Despite the French government's strong formal pushback, the lobbying momentum generated by Campinos and Negrão proved unstoppable
"DOOM" and "Bloodbath": the State of Microsoft and XBox
Way to piss off fans
Karen Melchior Fought the Good Fight
stay tuned for Part 29
Links 20/07/2026: Notes on E-mail Encryption, Torvalds and His Employer Paid a Lot to Promote Slop (Pyramid Scheme)
Links for the day
What a Difference Six Years Make...
We are also beta-testing a new feature for the site; we plan to announce it some time soon
When It Comes to Slop, Richard Stallman is Opposite of Linus Torvalds
When it comes to computing, Dr. Stallman has long been a voice of reason
Daniel Pocock is in Mainstream Media This Week
Pocock's haters will absolutely hate this
In His Departure Post, Poul-Henning Kamp (phk) Explains Why Linus Torvalds is Full of "Hot Air" and Slop Bubbles
Having lived through previous bubbles as a UNIX geek, phk cannot be ignored
Whistleblowers Keep Flowing
Later today a police investigator should phone us regarding death threats we've received
We Need Less Gadgets, More Humanity
If people are being honest with themselves, many of the gadgets they claim they "cannot live without" are just excesses and distractions they could definitely leave behind
Technology and Gadgets Got Obese, Just Like Their Users
They now sell us so-called 'phones' for slop
Daniel Pocock in The Guardian This Morning
There is an opportunity here to spread a message, even if Pocock won't win a seat
"Samsung Recently Projected a 19-fold Surge in Second-Quarter Operating Profit", Now There Are Mass Layoffs
In a 9-month period Samsung's debt rose by about 80%
Gemini Links 20/07/2026: Dungeon Meshi/Undertale Crossover, "The Hitchhiker’s Guide to the Dark Web and Beyond"
Links for the day
IBM's Control of the Media "Just Showed What Taking Accountability Does Not Look Like"
It is no secret that IBM pays the media
Microsoft Loses XBox Lawsuit, But There Are More
The collapse of studios continues
GNU/Linux Approaching International Average in Djibouti
One can envisage further gains for GNU/Linux, seeing Microsoft is in such a bad shape
Daniel Pocock "[t]he Australian Taking on Nigel Farage — from Down Under"
This can help raise awareness of some issues
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 19, 2026
IRC logs for Sunday, July 19, 2026