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

IBM's Anderon Another Opportunity for Debt-Loading, Publicity Stunts, Maybe Hidden Layoffs
Anderon is like Theranos
In Praise of 7 Years of Alex Oliva in the FSF, Not IBM
Thank you, Mr. Oliva, for 7 years of uncompressing advocacy and perseverance
Linux Kernel Becoming a Slopfest - Part 2 - Bribes From Slop Pushers Divide Us
Money can and does divide people
Expecting Failure
Some things would not happen to technology (tech) experts because they know how things work and what to expect (or watch out for)
 
Gemini Links 17/09/2026: Google Signals the End, ROOPHLOCH Coverage, EBay Uses Offensive Bots to Falsely Accuse Users of Stuff
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 16, 2026
IRC logs for Wednesday, September 16, 2026
SLAPP Censorship - Part 186 Out of 200: Love (Always Commands)
This coming Friday we celebrate our wedding anniversary
With Half of September Finished Clownflare Radar Sees GNU/Linux at 7% "Market Share"
On desktops/laptops
Gemini Links 16/09/2026: Cards, Nature, and Conspiracy Theorists
Links for the day
Links 16/09/2026: Proprietary Chatbots Company Lets Humans Moderate Chatbots, "Putin Looking to See How Far he Can Push NATO"
Links for the day
The Only Still-Supported Version of Windows Breaks Itself (Again), the Microsoft Layoffs Will Carry on in Secret
In the US they marked about 7% for removal just this past summer
Wikileaks Turns 20 Just 18 Days From Now
it's fair to say they've endured online, but aren't lively/active
The Cyber Show Debunks the Alleged Intelligence in Slop
It's shorter than usual
Links 16/09/2026: US Running Low/Out of Some Ammo Due to Wars, Slop Bots "Are Using an Outrageous Amount of Electricity"
Links for the day
"AI Slowdown" is Code Word for Bubble Imploding (Trying to Make This Slowdown Seem Wilful, an Act of Safety and Responsibility)
They help one another by inflating the bubble and making false excuses when expansion stalls
SLAPP Censorship - Part 185 Out of 200: What Reputation?
Helping monopolies and working for monopolies never made anybody popular
Gemini Links 16/09/2026: Slovenia, Catastrophe Ethics, and ROOPHLOCH 2026
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 15, 2026
IRC logs for Tuesday, September 15, 2026
Microsoft Layoffs in September 2026 Are Silent, Hidden
Expect the same next month ahead of the fake results
Links 15/09/2026: 'Smartphone', Android TV Box, Stockholm Syndrome of [Slop Plagiarism] Acceptance
Links for the day
Carmen-Lisandrette Maris Prepares Audiobook to Explain Software Freedom/Digital Rights to Adolescents, Needs Help From Volunteers
needs help with narrating
Links 15/09/2026: Putin-Connected Money for The Insurrectionist Jr. and Turkey's Crackdown on Activists
Links for the day
publicdomainpictures.net Seems to Have Become Fed Up With Slop Contaminating Its Database (Wasting Storage, Bandwidth), Now It's Suitably Flagged, Should Be Demoted/Delisted
The site was redone, suffered some hours of downtime, then 'relaunched' with a new interface this week
Gemini Links 15/09/2026: Hiking in Munții Făgăraș, Scams, and Slop Plagiarism Considered Unethical
Links for the day
Linux Kernel Becoming a Slopfest - Part 1 - At the Beginning (Torvalds Knew It Was Trouble)
We still wonder if we should make and actively maintain a shame list (developer/employer) for the people who contaminate Linux the most with slop plagiarism
EPO Staff is Preparing to Take Up a Notch the Strikes and Other Industrial Actions Ahead of October's Meeting (It Can Help Oust the Corrupt Leadership)
mobilising perhaps thousands of workers at a critical time in the history of the Office
unixcop.com is the Latest "Linux" Site to Have Become a Slopfarm After 2 Years of Death (Inactivity)
Not a way to stage a comeback
Allegedly Many PIP Layoffs in Nepal, IBM Does This Before a Known Death Toll in Avalanche (Caused by China-, Europe-, and US-Induced Global Warming)
Fresh wounds, before the bodies are even recovered (thousands still missing)
"Wail" by Alexandre Oliva
This work is licensed under the Creative Commons License BY-SA (Attribution ShareAlike) 4.0 International
This Morning The Register MS Published a Page With "AI" 83 Times in it. The Register MS Got Paid to Do This.
The Register MS is not a serious publisher and a lot of the stuff about "AI" on the Web isn't journalism but paid-for SPAM
While GAFAM/Microsoft Disguise Financial Crisis as "Investment in AI" the Slop Giants Make Up a Narrative of Wilful Slowdown
A BS artist is good at the art of BS when the artist's failures or weaknesses get twisted as moral or professional leadership
SLAPP Censorship - Part 184 Out of 200: A Tiny Law Firm That Knows Nothing But Microsoft (But Merely Pretends to Understand "IT")
They've managed to trick some mainstream media into thinking they're "Tech" experts or "Social [Control] Media" gurus; nothing could be further from the truth
Links 15/09/2026: Sweden’s Far Right Perishing and "Iceland Just Got Played"
Links for the day
It's Not About How Developers Vote
This isn't about politics, it's about users being in control of their own computers and computing
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 14, 2026
IRC logs for Monday, September 14, 2026
Gemini Links 15/09/2026: Poetry, Enshittification of Ebay, and Mecha System
Links for the day