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


Microsoft Lawyer: Microsoft “Covers up Alleged Misconduct, Mischaracterizes Evidence [...] Protects the Perpetrators and Retaliates Against Victims.”

Posted in Finance, Fraud, Google, Law, Microsoft, SCO at 11:57 am by Dr. Roy Schestowitz


“…Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system. But Microsoft did not want to be seen as attacking IBM or Linux.”

Larry Goldfarb, Baystar, key investor in SCO

Summary: Microsoft moves legal department to India and the whistleblowers come out to tell the truth about how Microsoft operates

IN THE previous post we discussed Microsoft’s funding of SCO, which is attacking Linux in the courtroom. Microsoft loves to sue its competitors using “dummy companies” (see the lawsuits against Google for example), which works out pretty well because Microsoft decreased its legal budget by 15%, it fired 450 of its lawyers, and according to the following two news reports, Microsoft will “outsource general legal work to India”.

Microsoft Corp. has entered into an agreement with legal outsourcing provider CPA Global to offshore legal work to lawyers in India.

The technology giant began a pilot scheme with CPA in October and formally rolled it out at the end of 2009. A team of between three and five qualified lawyers at CPA are handling multi-jurisdictional legal support work, including legal research, for Microsoft. The lawyers are based in CPA’s offices in Gurgaon, near New Delhi.

Microsoft has been outsourcing basic intellectual property and patent renewal work to CPA for five years, using a team of around 70 CPA staff. However, the new arrangement for general legal work operates separately.


Software giant Microsoft will begin outsourcing general legal work to India after signing a deal with legal process outsourcing (LPO) company CPA Global. The news comes as CPA outlined plans to expand its Indian workforce from 600 to 1,000 by the end of 2011, and hinted at opening another outsourcing centre.

Microsoft’s massive layoffs and migration to India is not news. What definitely is news ought to be the following major report from Courthouse News:

Fired Worker Calls Microsoft ‘a Lawless Place’

Calling Microsoft “a lawless place,” a longtime worker claims in a class action that he was fired in retaliation for reporting supervisors’ misconduct. He claims the company “routinely produces and/or condones deficient investigations, covers up alleged misconduct, mischaracterizes evidence, refuses to preserve or provide pertinent facts and data, protects the perpetrators and retaliates against victims.”

Craig Bartholomew worked for Microsoft for 21 years, he says in his complaint in King County Court. He says he was fired after complaining that his supervisors had created a “dysfunctional environment that was harming Microsoft and risking certain of its programs and objectives.”

“Microsoft has twice tried to cover up what really happened, first wrongly claiming his termination was a layoff or RIF. Neither was or is true,” according to the complaint.

According to his complaint: “Microsoft can be a lawless place. Courts have found that its key executives have violated the law and/or sought to circumvent court rulings. Powerful employees, because of their perceived value to the company, has (sic) been protected. Employees who have reported misconduct by senior management have been punished or fired based on trumped-up charges.

It is hard not to recall the i4i trial misconduct which had Microsoft fined $40 million some months ago. This is clearly a company that disregards the law, even today. The new lawyers from India are likely to be more obedient to their masters and thus be less prone to retaliation. The above is not the first whistleblower by the way; putting aside allegation of Microsoft orgies and drug parties [1, 2], there is a long history of Microsoft's abuse of the law. A US government official once said that “the government is not trying to destroy Microsoft, it’s simply seeking to compel Microsoft to obey the law. It’s quite revealing that Mr. Gates equates the two.”

Now, it’s not just legal abuse. Let’s take the Xbox for example. It led Microsoft to getting sued for homophobia [1, 2, 3] (homosexual employees and clients) and a former Xbox employee who was trying to save customers (Xbox 360 put lives at risk). Microsoft ended up retaliating by firing him for saying the truth.

“It is hard not to recall the i4i trial misconduct which had Microsoft fined $40 million some months ago.”Looking at Microsoft’s financial department (we’ve just covered legal and technical), a former Microsoft employee is slamming the company for tax evasion [1, 2, 3, 4, 5, 6, 7, 8, 9] and it is reasonable to suspect more malpractice, especially given the shady past of financial fraud [1, 2] (Charles Pancerzewski from Microsoft’s financial department was paid millions of dollars to shut up about misconduct/fraud after he had produced evidence of it). Another former Microsoft financial executive might be leaving the Seattle area based on this news. Is he following the footsteps of the CFO?

Our reader Chips B. Malroy wrote to us earlier about this comment from Mini-Microsoft (mostly anonymous Microsoft employees) which says: “I don’t know how this is hidden, but fact is that Microsoft earns a lot just moving money across countries, betting on currency fluctuations. A lot of people in Finance are dedicated to this. When you have 60billion to move around, we are not talking about pennies here…”

“So MS might be playing the money game,” argues Malroy, “and getting away with it because they are an international company. This is most likely another way to evade taxes as well… playing the currency markets.” One of our readers has said to us the same thing for a couple of years now. It is too difficult to prove with any certainty because it requires audits. In a later post we will show what Microsoft has just been doing with President Obama.

Speaking of whistleblowers, here is Joe Wilcox sharing yet another confession from former employees of Microsoft. “There were a ton of bozos” is the summary.

Do middling, middle managers run Microsoft? That’s the consensus among the former Microsofties who shared their work stories with me over the last couple months. The new work week starts with another Microsoft Confessional — the fourth in four days — from 13-year company veteran Boris, which isn’t his real name, of course. Boris was smart enough to see the end coming, and he made preparations in the days before his May 2009 layoff. He learned to read middle managers the way a genuine fortune teller might read tea leaves.

“Microsoft Needs More Traitors,” says this new article from BNET:

Most companies dream of having loyal employees and managers. They want people who will follow the company strategy and stick to their jobs. But at Microsoft, a culture of loyalty has turned into slavish devotion to outdated strategy, outmoded thinking, and personal fiefdoms that today threatens to bring the company down.


Really? Microsoft focused on one narrow example and ignored every other criticism — the VP in charge of Office refused to adapt the product line to tablet computers, poor timing on Web TV and MP3 players, lost share in key product areas, and the steady exit of the company’s smartest employees. Yup, it was ignoring significant criticism because that’s not part of the program. It would just make the people in charge look bad.

Maybe the problem is that many traitors already work at Microsoft. They just don’t realize it.

Over at the Huffington Post, Microsoft’s Jim Allchin is quoted as saying “we were smoked”. It’s one of the Comes vs Microsoft exhibits that include Allchin’s “we are not on a path to win against Linux”, "we feel a huge threat from Linux", and "there’s going to be a patent lawsuit on Linux."

“Government attorneys accuse Microsoft of using its monopoly position to bully, bribe and attempt to collude with others in the industry, while illegally expanding and protecting its Windows franchise.”

The antitrust case: a timeline

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


  1. your_friend said,

    February 21, 2010 at 3:29 pm


    This is what imploding companies look like. In general, all of the people pointing fingers are right and that’s why the company implodes.

    Microsoft no longer has $60 billion to “move around” it has debt. Pretending to make money off transactions that have larger costs than revenue in order to draw investors is the classic Ponzi scheme. Postal reply coupons are about as good a business as non free software. Everyone is realizing that they have been robbed.

    Roy Schestowitz Reply:

    The problem is that Gates and his gang are creating pyramids elsewhere now:


    Having had some direct experience with Myhrvold’s group (and hence my desire to remain anonymous), I suggest the following. “Patent troll” is too simplistic and limiting. Think of IV as a combination mob protection racket + ponzi monetization scheme.

    The goal is build an increasing portfolio of interlocking patents under control through a kind of pyramid scheme. Eventually the principals (Myhrvold, Gates, others) will cash out later. The patents are rarely held directly, instead they are held in an elaborate pyramidal network of LLC’s, LLP’s, etc.

    The mob protection racket is in the form of thier pitch to current patent owners & potential licensees: “we’ve never sued for infringement, but of course a few of our patents have been sold to folks who do sue for nasty damages. Be a shame if anything would happen to your nice business, eh? Why not join us as a licensee AND investor? I’m sure we can make sure no patents of interest to you end up with the nasties.”

    The idea is to get patent-owning firms (particularly multi-patent owners) to agree to sell ownership of the patents to IV, but also to get them simultaneouslyh INVEST in LLP’s that buy more patents. More investors means more $ to buy more patents, which brings more investors, which (especially when leveraged) brings more patents, which, …. until (someday) they have all the patents (of course Myhrvold & Gates are gone by then). All along the way, IV takes substantial mgt fees for managing all these portfolios & LLP’s.

    No, IV isn’t a troll per se. It’s probably worse long-term for the larger economy. Kind of like how some of the worse Wall St creatures haven’t been extorting per se, but when you put together a pyramid of SIV’s levering off each other and buying Mortgage backed securities and then artificial derivatives based off the already derivative securities, all with 1% capital you get something not very healthy for the economy, but enormously profitable for the bank that manages the setup for fees.

    [Comment at 02/18/2010 10:28 AM by Repentant Patent Owner]

What Else is New

  1. Leaked: Budget and Finance Committee Outcomes That Jeopardise What's Left of the EPO's Future

    A look at the latest reckless step from the Budget and Finance Committee of the Administrative Council (chaired by Battistelli's pet chinchilla), which marginalises yet more oversight or a branch which facilitates patent quality control (thereby concealing the effect of Battistelli's ruinous sausage factory mentality)

  2. Links 27/10/2016: Major Changes in Unity 8, Nextcloud Targets Phones

    Links for the day

  3. 'Balkan Express' Teaser: EPO's Željko Topić, Kuterovac, Campinos, Gurry, Battistelli and the DKPTO (Kongstad)

    Various photos of Topić and Kuterovac. Some more photos with other IP "luminaries" such as Campinos of the EUIPO and Gurry of the WIPO.

  4. The United States Pressures India to Broaden Patent Scope and Other Monopolies

    The envoy of the US is trying to tell India how to run the country (stricter laws regarding copyrights, trademarks, and patents), as a condition for foreign investment by multinational corporations

  5. Budget and Finance Committee of the Administrative Council (EPO) Confirms Exile of the Boards of Appeal

    Crushing of highly-skilled staff, propaganda in the form of new press releases, and recruitment attempts that won't succeed because the world now knows what goes on inside the European Patent Office

  6. Links 26/10/2016: “softWaves” in Debian 9, Rust in GNOME

    Links for the day

  7. Leaked: EPO's Vice-President Willie Minnoye Saying the Unsayable, Then Threatening Anyone Who Keeps Record (Evidence) of It

    E-mail that would leave Vice-President Willie Minnoye bashful, as it helps show not only bad policy but also attempts at suppression of discussion about it

  8. Puff Pieces of the EPO-IPO (EPO+EUIPO) Have Begun to Appear Amid New Evidence of Brain Drain, Lowered Standards

    The grim vision of the EPO which is losing all its talent (over time), becomes more like a production line (quality does not matter), and produces propaganda for "media positioning" (or "placements") -- all under the guise of 'studies'

  9. Leaked: Minutes From the Administrative Council of the EPO Regarding the 'Reform' (Exile) of the Boards of Appeal

    Details of the relatively secret proceedings back in June (belatedly released only a short while ago), carefully abbreviated to demonstrate which delegations helped Battistelli crush the Boards of Appeal and which ones insisted on maintaining the status quo, as per the EPC

  10. No Promising Future For the EPO Under Battistelli (If Any Future At All)

    Pessimism becomes realism at the European Patent Office as units are being torn apart, patent quality discarded, "unified" patent courts dreamed of (more patent lawsuits, higher damages), and EUIPO (EU-associated, unlike Eponia) gets closer to the EPO

  11. Leaked Minutes From the EPO Reveal That Battistelli is Detached From Reality and Blames Everything on “Union Officials”

    Minutes of the Administrative Council's meeting reveal some truly bizarre rants from Battistelli, who simply refuses to accept that the European Patent Office is burning (without a future direction, only burnout and brain drain) under his poor and abusive leadership

  12. Tata/TCS is Still Pushing for Software Patents in India

    The obnoxious company that is promoting Microsoft and software patents in a country that needs neither makes the headlines again (Financial Express)

  13. Links 25/10/2016: Rackspace's Praise of FOSS, Chain Chooses the GPL(v3)

    Links for the day

  14. Links 24/10/2016: Linux 4.9 RC2

    Links for the day

  15. Battistelli Plans to Expand the Social [sic] 'Study' (Then 'Conference') Propaganda Until Next Month, Under the 'Workshop' Umbrella

    Milking his shameless propaganda (paid-for 'studies'), Battistelli wants to rewrite the record by all means possible, then pretend that EPO staff participates in it

  16. EPO and EUIPO Join Hands to Release Propaganda (for European Media to Parrot) Some Time Tomorrow

    EPO and EUIPO in collaboration for the promotion of the notion that they are both necessary (and reinforced speculations about growing overlap between them)

  17. UPC Preparatory Committee Puts the Brakes on UPC Amid Brexit and Growing Uncertainty

    The Unified Patent Court (UPC) preparatory committee recognises that the UPC isn't going anywhere (any time soon) and false job advertisements -- or advertisements for jobs that will never exist -- are withdrawn

  18. Updates Regarding EPO and BoAC: Unrest and Injustice Carry on

    Some of the latest information which is publicly and privately available to us, in particular regarding the case of a suspended judge which represents unprecedented erosion of the appeal boards' independence (and hence lack of justice in the Organisation)

  19. EPO and the “Iberian Connection”: Patricia García-Escudero Márquez - Battistelli's Pet Chinchilla on the Boards of Appeal Committee?

    Why the Boards of Appeal Committee has begun showing prominent signs that it is anything but independent and capable of standing up to Battistelli (or his circle at the Office, which includes the “Iberian Connection")

  20. Links 23/10/2016: Alcatel's New Android Smartphones, Another Honorary Doctorate for Stallman

    Links for the day

  21. Open Letter Exposing the Farce Which Was Battistelli's 'Social Conference' Coinciding With Further (New) Attacks on EPO Staff Representatives

    A detailed letter reveals legitimate concerns expressed by staff representatives at the EPO ahead of the so-called Social Conference, in which we have highlighted severe factual flaws

  22. Translation of Latest Rant From French MP Philip Cordery About Benoît Battistelli's Abuses at the EPO

    Philip Cordery crosses horns with Benoît Battistelli, who has become a source of embarrassment for France with his autocratic tendencies and misguided policies that rapidly ruin the European Patent Office (EPO)

  23. Battistelli-Commissioned PwC ‘Study’: Leaked Document Shows PwC's Dishonesty and Misrepresentation of EPO Staff

    An in-depth analysis (but not comprehensive, just preliminary) of the so-called 'study' from PwC, which basically did what it was paid for (pay to say)

  24. Links 22/10/2016: Deus Ex for GNU/Linux, Global DDoS (DNS)

    Links for the day

  25. Battistelli-Commissioned PwC ‘Study’: Survey Comparison Shows Serious Deterioration and Efforts by PwC to Disguise the Truth

    The latest output from PwC turns out to be even worse than initially thought, indicating that not only did it find a degradation in the EPO but also attempted to hide/obscure it

  26. EPO Teaser - The "Iberian Connection" - Some Photos of García-Escudero and His Royal/Government Connections

    A look at the undeniably close connections between Mr. García-Escudero and the most powerful people in Spain

  27. Disruption to Site's Service

    A technical note about why Techrights has not been publishing many articles recently

  28. Links 21/10/2016: MPV 0.21, Mad Max for GNU/Linux

    Links for the day

  29. EPO Caricature: Battistelli's High Five

    Another cartoon about the sad state of the EPO

  30. Battistelli Ruins Not Only the EPO But Also the Whole of Europe By Ushering in Software Patents That Patent Trolls Love So Much

    Battistelli's bad leadership at the EPO threatens to bring to Europe all the ills and menaces of the patent system in the United States


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


Recent Posts