Bonum Certa Men Certa

Calculating the Microsoft Patent Tax at Novell



"I've heard from Novell sales representatives that Microsoft sales executives have started calling the Suse Linux Enterprise Server coupons "royalty payments"..."

--Matt Asay, April 21st, 2008



Summary: Brian Proffitt, former Managing Editor of LinuxToday, looks at the amounts of money Novell extracts from SUSE users for Microsoft and Novell to share

YESTERDAY we commented on a report suggesting that the ridiculous SUSE coupons run out about 2 years before the Microsoft/Novell patent deal actually expires. Over at IDG, some of the numbers are put together but nothing is said about the fact that these are akin to extortion money -- funds that Microsoft is taking from GNU/Linux users for software patents it claims they infringe without giving any details and without obeying the law, which explicitly forbids software patents in the large majority of the world.



And what an investment it has been: an initial payment of US$348 million to Novell... with US$240 million tagged specifically for those infamous subscription certificates for SUSE Enterprise Linux to hand out or resell to interested customers. Indeed, this was the thrust of the SD Times article: that Microsoft is almost through passing these coupons out.

The thought that was actually provoked came from this sentence in the article: "A total of 475 customers have used an unspecified number of coupons, according to Microsoft."

This struck me as a very interesting figure, because after firing up XCalc, I figured out that if indeed just 475 customers have received these coupons, then Microsoft has essentially subsidized SUSE Linux Enterprise Server (SLES) deployments an average tune of US$505,263.16 per customer.

Keep in mind that while we have no idea of how many actual single- or multi-year subscriptions were actually used with these disbursements, we can get a very rough idea based on Novell's current pricing structure of how many boxes this may represent.


This means money to Microsoft, not just Novell. So how much in royalties does Novell make from each sale of Windows? None? And if so, then what kind of a relationship is this?

"Now [Novell is] little better than a branch of Microsoft"

--LinuxToday Managing Editor

Comments

Recent Techrights' Posts

Our Priority is Still Tackling Software Patents and Corruption in Patent Offices
Meanwhile we got compliments on our recent articles, which means that they are effective
Slopwatch: Another Day, Another Slopfest, LLM Slop Scrapers Slow Down Our Site
We too have some slop issues; this past day this site and the sister site had to answer about 2.5 million requests (not counting Gemini Protocol) and it's slowing things down for everybody
Abuse Inside the Polish Patent Office (UPRP) - Part IX: Minimum Wages For You (Experienced Scientist), Alicante/EU Paydays For Me (Unproductive, Corrupt Official)
Does UPRP maladministration extend to the false belief that qualified and experienced scientists can play the role of circus clowns?
 
"The Liberating Power of Simply Telling People the Truth."
'polite' bullying
Why the Militants Have Lost Every Battle Since 2022 (When Attacking My Wife and I in Various Ways, Even Attacking Our Employers)
This takes patience, sure, but at the end most evildoers face the consequences for their actions
Politics Will Impact Software Choices
Will those systems respect users' freedom?
EPO: Neglecting Children to Promote American Monopolies by Shielding Them From European Competition
Yesterday the Central Staff Committee at the EPO spoke about another "reform" at the Office
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 11, 2025
IRC logs for Wednesday, June 11, 2025
Links 11/06/2025: More Vulnerabilities Found in 'Smart' Phones, China Extends Reach in the Pacific
Links for the day
Gemini Links 11/06/2025: Grain and Steam Next Fest
Links for the day
Links 11/06/2025: "Quantum" Hype From IBM, US Closer to Martial Law, and “The Nation” Celebrates Milestone
Links for the day
IBM's CEO Roasted, Sizzled and Grilled for Dumb and Inconsistent Vapourware Promises
It looks like being a chronic liar is what it takes to lead the company once synonymous with computing
IBM's Goal Is Not (and Never Was) Computer Users' Freedom
More than 1.5 decades ago I found IBM to be an "ally of convenience" because of OpenDocument Format (ODF)
Wayland Shows the IBM/Red Hat Way of Doing Things
IBM is trying to 'kill' X
Who Imitates Who? Plagiarist as Client (From Microsoft), 'Plagiarism' at the Law Firm?
let's revisit the subject
GitHub is Proprietary, Controlled by Microsoft, and GPL Violation Warehouse
"IRS tax filing software [will be] released to the people as free software" ... In general this is good news
Slopfarm Catastrophe
Seems like BetaNews (or BetaNoise) has just suffered a major data loss and restored the site from a week-old backup
Abuse Inside the Polish Patent Office (UPRP) - Part VIII: Illegal Working Conditions
How many people need to die for these people to get their massive salaries?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 10, 2025
IRC logs for Tuesday, June 10, 2025
Links 10/06/2025: Apple Hype and Physical Attacks on Bloggers
Links for the day
Gemini Links 10/06/2025: Loon Lake, Farming, and Forth
Links for the day
Links 10/06/2025: Jaws at 50 and US Democracy Crushed Very Rapidly (Martial Law Seems Imminent)
Links for the day
Abuse Inside the Polish Patent Office (UPRP) - Part VII: Washing Their Hands After Corruption and Abuse
"Tragedy or comedy?"
Culling Bad RSS Feeds of Bad Sites
Not throwing out the baby with the bathwater
If 'Microsoft v Techrights' is Dealt With by a 'Microsoft Court' (or a Court Outsourced to Microsoft)
More on that later
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 09, 2025
IRC logs for Monday, June 09, 2025
Gemini Protocol Turns Six in 10 Days From Now
If you haven't tried it yet, then give it a go today
Live as You Preach
technology is fast becoming dysphoric