04.19.10
Posted in FUD, GNU/Linux, Kernel at 10:13 am by Dr. Roy Schestowitz
Summary: The popular press and trade journals summarise the Linux Collaboration Summit using some quote about kernel hackers being increasingly-senior people (as one just ought to expect given the age of this project)
ONE of our readers has raised concerns that an innocent quote from a senior Linux hacker is being inflated and taken out of context in order to summarise an entire summit (like last week's) with a single line of FUD. We saw that last year when "Linux is bloated" became somewhat of a tagline or a motto for the event, or least because of the technology/Wintel press. It concentrates on weaknesses, cherry-picking a few and then accentuating these.
One of our readers, who prefers to remain anonymous, has asked us to debate this or at least put forth the situation. He said that journalists “try and find something negative to say about Open Source” and as examples he gives:
a. No one uses Linux
Hitachi and the phone makers move to Linux
b. The Linux base is fragmenting
Linux developers are the most experienced on the planet
c. Linux developers are all old.
Here is the new example (through Slashdot): “Why Linux Is Not Attracting Young Developers”
Our reader then adds the Guardian as an example of the FUD (although Charles Arthur just passes on a message), quoting in part what he considers to be their formula:
Take some quotes from a kernel developer and then spin them into a whole ‘Linux no attracting developers’ issue. What are the actual figures, number of kernel developers?
Ohh look, they didn’t quote this bit…
“Each two month release of the Linux kernel tends to include about 10,000 changes, with 1,100-1,200 developers contributing code, many of them for the first time. The process hasn’t slackened…”
Linus Torvalds has publicly said that he does not wish to be asked about Microsoft because anything he says, assuming it’s controversial or divisive enough, turns into articles and headlines that portray him negatively. It seems as though there’s never a deficiency for quote-diggers, no matter who in kernel development makes which statements. Maybe the mainstream media is just looking at Linux like it looks at Castro or Wikipedia (which is perceived as an enemy to many publishers). █
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Posted in Google, Microsoft, Patents at 9:40 am by Dr. Roy Schestowitz
Photo of the Xerox Alto, taken by Martin Pittenauer
Summary: Anascape, a patent troll, loses its case against Nintendo (Microsoft gave up early); Xerox is countersued by Google and Yahoo for patent infringement
SEVERAL months ago we wrote about Nintendo being hit with a lawsuit similar to Microsoft’s. Anascape, which is a patent troll, alleged that both companies had violated its patent. Microsoft paid up to settle, whereas Nintendo fought against the troll and won. From last week’s news we have:
i.Nintendo wins appeal against patent infringement claim
ii.Nintendo Wins Controller Patent Appeal
iii. Nintendo’s Court Case Saves $21 Million Controller Costs
A few years ago, a company called Anascape took Nintendo and Microsoft to court in a case regarding a US patent and that, in Nintendo’s case, related to patented technology used in a variety of controllers. Microsoft settled out of court. Nintendo appealed the ruling handed down against it, along with a fine of $21 million.
iv. Nintendo beats Wii patent infringement rap
Nintendo has claimed victory in its long-running legal battle with Anascape after the US Court of Appeals said it did not infringe a patent held by the little-known intellectual property owner.
Here is the relation to Microsoft again:
Microsoft settled out of court but Nintendo chose to fight on and was hit with a damages bill amounting to $21 million for infringing upon one of the company’s patents with its Wii Classic, Wavebird, and GameCube controllers. At the time, many believed Nintendo had made the wrong decision, as settling out of court would surely have been cheaper. However, two years on, Nintendo has had that ruling overturned in the Federal Circuit Court.
Microsoft is not in a position to whine about such patent trolls because Microsoft breeds the world's biggest patent troll. Microsoft itself engages in patent racketeering [1, 2, 3, 4, 5, 6, 7].
According to legal sites, the USPTO is preparing to improve the appeals process and the ITC becomes intolerant (or less tolerant) of patent trolls.
Patent trolls beware. You won’t win a case at the International Trade Commission if the only thing you do with your patent is sue people for infringing it.
That’s not a domestic industry.
This is not enough to deter patent trolls like Acacia, which needn’t rely on the ITC because they are well funded and have patience. Additionally, the patent problem involves patent trolls and patent hoarders alike, just not the majority that’s in the middle (SMBs). Xerox, for example, is a the company that gives Acacia all sort of patents, which are later being used against GNU/Linux. Xerox also sued Google and Yahoo back in February, only to be sued by Google and Yahoo this month. [via]
Google Inc, its YouTube video service, and Yahoo Inc on Thursday filed counterclaims against Xerox Corp in a lawsuit accusing them of infringing the document management company’s patents on Internet searches.
We’ve hardly ever seen Google suing with patents. Now we do.
What is the benefit to science when patent trolls attack companies with actual products or two companies with products are attacking one another? The biggest winners here are patent lawyers. █
“Hey, Steve, just because you broke into Xerox’s store before I did and took the TV doesn’t mean I can’t go in later and steal the stereo.”
–Bill Gates, Microsoft
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Posted in Microsoft, Patents at 9:01 am by Dr. Roy Schestowitz
Examples of physical inventions one can touch
Summary: New figures explain why Microsoft is lobbying so hard for software patents all around the world
Buried inside this short essay were a bunch of interesting figures which show just how dependent Microsoft really is on software patents (not patents in general).
Eighty-five percent of Microsoft’s patents were for software — and patenting software remains intensely controversial.
Speaking of “controversial” patents, we recently wrote about the end of gene patents [1, 2] (bar loopholes) and Katherine Hobson from the Wall Street Journal writes:
Think Gene Patents Are Controversial Now? Just Wait
[...]
Of course, the $1,000 genome is likely years away, and those who favor exclusive patents on diagnostics say they’re necessary for companies to make their money back on research and development.
But exclusive patents may already be keeping some patients in the dark, the WSJ article says. It describes a new method of genetic testing called chromosomal microarrays that can pick up chromosomal abnormalities in the genome. What’s a doctor to do if that kind of analysis encompasses a gene that’s already patented — tell the patient or stick to the letter of the law?
“Controversial” is code for unacceptable or “involving nepotism for protectionism”. For quite a long time now, the USPTO has served corporations rather than adhere to its original goals. █
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Posted in IBM, Microsoft, Patents at 8:53 am by Dr. Roy Schestowitz
Other sizes/formats
Summary: The short movie “Patent Absurdity” (as can be viewed above) is looking to expand its reach; Groklaw says more about the TurboHercules vs IBM case
A few days ago, within minutes of the release of “Patent Absurdity”, we posted this embedded pointer to it for maximal exposure/audience. For those who did not see the film, it is a video lasting about half an hour and containing fragments from conversations with James Bessen, Dan Bricklin, Peter Brown, Mishi Choudhary, Ben Klemens, Timothy B. Lee, Eben Moglen, Ciarán O’Riordan, Dan Ravicher, Karen Sandler, Richard Stallman, Rob Tiller, Jesse Vincent, and Mark Webbink. The goal is not to preach to the choir but to get it out there for people who do not understand these issues.
Many Web sites such as The Source, Groklaw, and swpat.org wrote about it. That last one has also asked for subtitles in more languages.
UPDATE: Yes, we’d love to make versions with subtitles, in as many languages as possible. You can help via:
http://en.swpat.org/wiki/Patently_Absurd/Subtitles.
In addition to Rob Tiller and Mark Webbink (with roots in Red Hat), there’s also this recommendation from Richard Fontana (Red Hat). We really need translations so that the message gets across to as many people as possible. As Simon Phipps put it: “I was lucky enough to be sent an early copy of this documentary. It’s well worth watching, both for the opportunity to see so many of the people who are influential in software freedom philosophy and law and for the great explanations of the issues around the Bilski case and the mission creep which has led to software patents. Share it with friends as this issue is only going to get more important as ACTA promotes criminalisation of patent infringement.”
“I don’t view Florian Mueller as a FOSS person. He’s a lobbyist.”
–Pamela Jones, GroklawSince we’ve mentioned Groklaw, it’s worth mentioning its latest updates on the TurboHercules case. Regarding this article, Pamela Jones wrote that “the new Florian FUD is as bad as the old FUD. He writes: “Considering that IBM has already used them in a threat letter to TurboHercules, those patents must be considered particularly dangerous. I just explained why IBM’s attack on Hercules is an attack on interoperability and FOSS innovation in general.” Let me point out, again, that it was not a threat letter, and it was sent to TurboHercules, not Hercules. There is a difference. And asking to license IBM’s code for an emulator is hardly innovation. It certainly isn’t FOSS innovation, in that TurboHercules’s turnkey offering is Microsoft based.” Regarding another article she wrote: “This is the best summary of the story so far that I’ve seen. I would add one detail, now update 11 on my article: Bowler has written that he did receive the letter from IBM listing the patents prior to filing the complaint with the EU Commission, which contrasts with their press release. So that raises the question, which is the truth? Perhaps we could rewrite Brian’s headline to “Mostly Smoke and Mirrors, Little Fire”? Also, I don’t view Florian Mueller as a FOSS person. He’s a lobbyist. Then there is the Microsoft and OpenMainframe.org part of the story.”
Regarding the recent lobbying for software patents in New Zealand, Jones points out that: “Members of NZICT include Cisco, Dell, ExpressData, Gen-i, Hewlett Packard, Kordia, IBM, Ingram Micro, Microsoft, Unisys, and Vodafone.” We pointed this out twice before and in the next post we’ll explain why Microsoft et al are pushing so hard for software patents in other countries/continents. █
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Posted in Dell, Fraud, GNU/Linux, HP, Microsoft, Patents, SCO at 8:37 am by Dr. Roy Schestowitz
From Lars Plougmann, London, United Kingdom
Summary: How Hewlett-Packard, which is currently under investigation for corruption, charges a premium on GNU/Linux after acquiring Neoware
SUFFICE TO say, based on evidence we have provided over the years, Microsoft and HP share a bedroom. To name just a few examples, start here or consider many of the other posts on the subject [1, 2, 3, 4, 5].
As readers may be aware by now, HP is getting a big load of bad PR because of an alleged bribery case. The gist:
U.S. officials have joined Russian and German authorities in looking into allegations that Hewlett-Packard may have paid millions in bribes to win a computer equipment contract.
Here is what the Wall Street Journal had to say.
Pogson has just found out that HP “charge[s] a premium” on GNU/Linux after buying a company that distributed GNU/Linux.
A few years ago, HP bought Neoware which produced several thin clients running GNU/Linux.
[...]
HP is willing to satisfy customers who demand GNU/Linux but they charge a premium. They are partners in crime with M$ in spite of all the harm M$ has done them. HP is still the #1 OEM in the world but they will not be for long selling $1000 thin clients. The Chinese are selling thin clients for less than $100 in bulk.
It is important to remember that we have reasons to suspect that HP pays Microsoft for GNU/Linux (they both signed a deal just before SCO attacked Linux). Russia’s Antimonopoly Service targeted HP in a probe into collusion with Microsoft (against GNU/Linux). The latest bribe case involves the Russian authorities too. █
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Posted in Hardware, Marketing, Microsoft at 8:08 am by Dr. Roy Schestowitz
Via OpenBytes
Summary: Microsoft’s new phones fail to impress anyone, even huge proponents of Microsoft; What gives them a lot of publicity is the allegation that Microsoft promotes underage sexting
MICROSOFT is departing from Windows, which is evidently too much of a mess, at least as a mobile platform. As we pointed out before, this also means that Windows Mobile applications will no longer work. What a gamble and what a colossal mistake. Several very important developers recently quit development for Windows phones as a result of this, with big names including Skype, Mozilla, and Adobe.
“Several very important developers recently quit development for Windows phones as a result of this, with big names including Skype, Mozilla, and Adobe.”Microsoft’s mobile reality is rather embarrassing. The market share keeps declining and money goes down the drain at a very rapid pace. But today we take a side that’s not hostile towards Microsoft, in order to show that even those who are faithful to Microsoft are rather depressed about Microsoft’s endeavours in the mobile space. The media largely ignored Microsoft’s latest announcement (the “Kin” phone) and treated it as a nonevent, with some noting that Microsoft claims it to be “social” and for young people, whatever that actually means in practical terms. Nobody seems impressed, but Microsoft excuses the lack of appeal by referring to “social” and “children”. Mary Jo Foley is helping Microsoft’s PR regardless of her opinions about Kin (no critical opinion is offered or emphasised). She has become extremely obedient to Microsoft in recent years (this wasn’t the case when she was writing at Microsoft Watch).
Looking just at IDG, which has financial reasons to favour Microsoft [1, 2, 3, 4, 5], here is everything that we found and gathered from this news network over the past week (it’s pretty much an exhaustive list).
First of all, even Microsoft’s biggest of boosters (Gralla [1, 2] in this case) are unimpressed. The headline “Why You Don’t Want a Microsoft Kin Phone” probably says it all.
The fake “Robert X. Cringely” from IDG has published: “Microsoft’s Next of Kin: No Cure for Smartphone Fatigue”
As I type this, Microsoft is announcing two new slider cell phones, the Kin One and Kin Two — successors to the beloved but aging-faster-than-Mickey-Rourke T-Mobile Sidekick.
These are apparently the culmination of the long-rumored, until-now-entirely-vaporous, Project Pink, code-named Turtle and Pure, sometimes also known as the Zune Phone. When your phones have more aliases than a CIA operative, that’s probably not a good sign. But I digress.
[...]
The intro text on the Kin Website: “The impulsive. The spontaneous. The wonderful.”
My translation: “The annoying. The self-absorbed. The unemployed.”
The bad news? No app store. No Flash support. The good: No sign of Windows whatsoever — these phones are based on the Zune browser interface, so they have that going for them.
JR Raphael writes:
Call me crazy, but something about Microsoft’s Kin phone just doesn’t add up.
Microsoft Kin PhoneThe Kin, unveiled by Microsoft on Monday, is billed as a mobile phone for the “social generation.” It’s meant to appeal to the younger, always-connected crowd — teens and 20-somethings who spend their days surfing social networks — and yet the Kin’s social network support is decidedly unrobust.
Still looking at IDG, here is the remainder of the headlines about the subject:
i. Microsoft Kin: What’s Cool, What’s Lame
ii. Can Microsoft’s Kin Catch the Mobile Social Networking Wave?
iii. Microsoft Kin: Phones Sport Zune, Target Social Set
One of IDG’s Microsoft boosters, Harry McCracken, wrote that third one. He always drools over whatever comes out of Microsoft and Microsoft is giving him expensive gifts to reciprocate.
So Microsoft’s phone (or phones) was basically a big “Meh!” but it did receive a lot of coverage, just not the type of coverage Microsoft wanted. The following headlines explain why:
• Microsoft releases Kin advert
• Microsoft Kin ad encourages you to send moob shots to girls
Consumer Reports is calling out Microsoft (NSDQ: MSFT) for its Kin ads because it’s “creepy” that one ad apparently shows some hip dudester sending pictures of his chest to some equally hip lady.
• Microsoft in ‘sexting’ row over Kin advert
• Microsoft Accused of Advocating Sexting
• Microsoft Kin upshirt ad called ‘creepy’
I’m sure there are few people left in the world who have not, at one time or another, sent a picture of their most favorable body parts to someone they loved. Or at least coveted. Or at least knew. I am, therefore, moved to photograph the frothing in my brain caused by the controversy surrounding a video for Microsoft’s new Kin phones aimed at young social-networking hipsters.
We ought to remind everyone that there is a lot of sex and violence in Microsoft ads, which even had some of the company’s ads outright banned. We gave several examples in this Web site over the recent years.
Watch how Microsoft responds proactively (no bans needed):
• Microsoft deleting ‘sexting’ from ad
• Microsoft kills upshirt scene in Kin ad
• Microsoft Takes Back Its Naughty Ad For The Kin
• Microsoft semi-apologizes for highly offensive man-boob in Kin ad
• Microsoft backs on on KIN sexting accusations, apologizes for pec-gate
• Microsoft Pulls KIN Ad With Sexting In It
• Microsoft apologizes, edits Kin video after ‘sexting’ complaints
One might say that “Kin” is abbreviated “Kinder” and mistakenly advocates paedophilia or uses it to sell.
Watch how Microsoft’s booster Preston Gralla comes up with “damage control” in IDG and so does another Microsoft booster, Todd Bishop. Basically, Bishop is a non-stop promotion of Microsoft and even Kin — promotion which helps him run his Microsoft blog. We insist on explaining how Microsoft controls the press and we gave new examples just hours ago.
Here comes the interesting part. Microsoft tries to control what journalists are writing about Kin, without much success (because the product is far too bad):
As Microsoft explained to me, the Kin 1 is for feeding and the Kin 2 is for feasting. Both are, well, somewhat goofy looking.
Why does Microsoft need to explain to journalists personally? Are they Microsoft’s PR agents? Also, watch how Microsoft is using a former department (Razorfish) for the Kin blitz. “Razorfish reveals role as Digital Agency of Record for New KIN Brand,” says the headline of this press release. Didn’t Microsoft let Razorfish go? Razorfish is still serving Microsoft on the face of it.
Over at the Seattle Times we also learn about a “word-of-mouth marketing campaign” which Microsoft had going for Windows Vista:
Marr, formerly of Microsoft, where he led the word-of-mouth marketing campaign for the launch of Windows Vista, may keep bottles of Bulleit Bourbon and Vox Vodka tucked inside a decorative world globe in his office, but the regimented and chauvinistic world of “Mad Men,” in which ad firms made kings of corporations, has largely disappeared. Now you have the likes of Microsoft coming to scrappy firms like Wexley to help them gain street cred with a generation that’s openly hostile to the come-ons of big companies and brands.
The reality behind Vista 7 was also twisted by a “word-of-mouth marketing campaign”. Nothing ever changes. Microsoft is all about advertising and misdirection. Luckily, the company is limiting the audience it advertises to because of Silver Lie.
Going back to Kin, Paul Rubens is skeptical and the News Observer calls these “Zune phones”, which should not be taken as a compliment given the big failure which Zune has turned out to be. Here is an article whose headline asks: “Microsoft Zune HD 64 dead in the water?”
Microsoft released a 64GB version of their Zune HD, dropping the prices of the 16GB and 32GB models in the process. But the announcement came without much fanfare from the tech community. Is the Zune HD already dead in the water? And if so, does it deserve it?
Based on this report, Windows Phone 7 will arrive late and also incomplete. This is a recipe for failure. █
“In the future, Microsoft wants Windows to run everything, from PCs to phones to cars to appliances. This is a terrifying prospect. If it happens, I’d be far more afraid that machinery everywhere would grind to a halt, planes would fall out of the sky, and civilization would crumble as a result of crummy embedded Windows design than any Y2K problem.”
–Paul Somerson, PC Computing
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Posted in Finance, Fraud, Microsoft, Search, Steve Ballmer at 6:49 am by Dr. Roy Schestowitz
Summary: The SEC (U.S. Securities and Exchange Commission) contacts Steve Ballmer regarding oddities in Microsoft’s latest financial report
WE WISH to begin with factual background that a lot of people are unaware of. A few months ago, right around the time that Microsoft's CFO quit he was also paid millions of dollars by Microsoft to keep his mouth shut. This is not a standard transaction. This could indicate malpractice and there is reason for prejudice because the SEC previously caught and investigated Microsoft for financial fraud (Microsoft eventually settled), after a Microsoft employee, Charles Pancerzewski, had blown the whistle and presented to the judge convincing evidence of fraud taking place at Microsoft. Microsoft paid Pancerzewski millions of dollars to shut him up and eliminate his evidence [1, 2]. It’s a typical maneuver from Microsoft, which also hires/pays critics to walk away and not share their knowledge with the public. We gave several examples of this before.
A few days ago we wrote about Microsoft’s close relationship with US banks/the Fed, which are aflood with misconduct these days. They contact Microsoft for help brainwashing the public [1, 2, 3, 4, 5, 6, 7, 8, 9], as we noted some days ago when we wrote about the SEC suing Goldman Sachs for fraud. For those who have not read that previous post, Microsoft’s CEO was asked to create a seasonly game to teach the public about deficit crunching (Microsoft too has debt) and as this new article shows, using games to brainwash minds is not out of the ordinary (war games are the most famous example).
PepsiCo International and Microsoft have teamed up to create an integrated digital advergaming campaign to take advantage of what’s expected to be increasing interest in soccer as the World Cup gets underway.
But anyway, here is the interesting development. Pogson has found this document [PDF] buried inside the SEC’s Web site. Since it is available as a PDF, we decided to append it at the bottom as plain text. Microsoft’s response is an HTML-formatted mail and here is what Pogson makes of it:
Then, in the last quarterly report, M$ combined that other OS and “live” segments. I guess they thought a zigzag in the curve would hide something like the inflection in the client OS stuff. Further, internally, they use a different set of books, omitting some important details. So, investors should be comforted knowing that internal decisions are made on false assumptions. We have known for years that including the browser in the OS was done not for good business reasons but to exclude competition from the market. I guess that other search engine is more of the same.
There is actually more to it because Microsoft is ‘embellishing’ its numbers by deferring revenue, for example [1, 2, 3, 4]. One writer asks about Microsoft: “Are we seeing a revival?” Well, only if Microsoft’s lies are being believed because in the previous quarter just about any business unit at Microsoft was down. Yes, it was mostly down, but Microsoft claims a surge.
Let me be clear. I’m not a fan of Microsoft (NASDAQ:MSFT). I dislike its products and I don’t much like its business policies. I’m a child of the open source world and a fan of cloud computing, and Microsoft has long been a dirty word as far as I’m concerned. It’s probably a dirty word as far as many investors are concerned.
Wallstcheatsheet.com, which is another news site, has just published the article “Proof Microsoft has Become Irrelevant” and it says:
If this keeps up [for Bing] , Microsoft may want to rename it ‘Ding’ because that’s how big an impact they’ve had in the search space.
For the moment, Kin and Bing are not making huge waves.
We wrote about it in the previous post. Bing as a “success” is part of an illusion Microsoft is spreading and Kin is a major disappointment which we’ll address in the next post. There is more to Microsoft’s financial reports than meets the eye. Don’t believe what you see next week when Microsoft releases another report and immediately spins it as “success”. Microsoft is not honest about its financial situation. █
Mail Stop 4561
December 11, 2009
Mr. Steven A. Ballmer
Director and Chief Executive Officer
Microsoft Corporation
One Microsoft Way,
Redmond, Washington 98052-6399
Re: Microsoft Corporation
Form 10-K for the Fiscal Year Ended June 30, 2009
Filed July 30, 2009
01-14278
Dear Mr. Ballmer:
We have reviewed the above-referenced filing and have the following comments.
Please be as detailed as necessary in your explanation. After reviewing this information,
we may raise additional comments.
Please understand that the purpose of our review process is to assist you in your
compliance with the applicable disclosure requirements and to enhance the overall
disclosure in your filing. We look forward to working with you in these respects. We
welcome any questions you may have about our comments or any other aspect of our
review. Feel free to call us at the telephone numbers listed at the end of this letter.
Form 10-K for the Fiscal Year Ended June 30, 2009
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
Segment Product Revenue/Operating Income (Loss)
Online Services Business, page 25
1. We note that the operating loss for your Online Services Business increased by
102% and 84% in 2008 and 2009, respectively, and is a significant portion of your
Mr. Steven Ballmer
Microsoft Corporation
December 11, 2009
Page 2
consolidated operating income in 2009. Tell us whether these increasing losses
are indicative of future results and the consideration given to identifying and
quantifying any related known trends, events and uncertainties that would
reasonably be expected to have a material impact on your liquidity, capital
resources and/or results of operations. Refer to Item 303(A) (3) (ii) of Regulation
S-K and Section III.B.3 of SEC Release 34-48960.
Item 8. Financial Statements and Supplementary Data
Note 22. Segment Information and Geographic Data, page 77
2. Tell us what consideration you gave to reporting revenue from external customers
for each of your products and services or each group of similar product and
services in accordance with paragraph 37 of SFAS 131.
3. You indicate that your financial reporting systems provide more than one measure
of segment profit and loss for management to operate the business, including
internal profit and loss statements prepared on a basis not consistent with U.S.
GAAP. Tell us what consideration you gave to reporting the segment information
that is most consistent with that used in your consolidated financial statements. In
this regard, we note that the segment information provided beginning on page 23
is presented in accordance with U.S. GAAP. Refer to paragraph 30 of SFAS 131.
4. We note your statement that segments are not designed to measure operating
income or loss directly related to the products included in each segment, due to
your integrated business structure. Further explain this assertion and tell us what
operating costs are excluded from each segment. In light of this apparent
limitation of the data, indicate how the segment information presented is reliable
and relevant to users of your financial statements.
5. You state that “inter-segment cost commissions are estimated by management and
used to compensate or charge each segment for such shared costs and to incent
shared efforts.” Clarify for us what is meant by these estimated inter-segment
cost commissions and tell us what consideration you gave to describing in the
note the basis of measuring this allocation. Also, clarify what is meant by
allocating cost commission “to incent shared efforts.” Explain your basis for
determining the appropriate amounts that will provide motivation and justify why
management believes the allocation methodology is reasonable. Refer to
paragraphs 25(b) and 29 of SFAS 131.
*******
Please respond to these comments within 10 business days or tell us when you
will provide us with a response. Please submit all correspondence and supplemental
Mr. Steven Ballmer
Microsoft Corporation
December 11, 2009
Page 3
materials on EDGAR as required by Rule 101 of Regulation S-T. If you amend your
filing, you may wish to provide us with marked copies of any amendment to expedite our
review. Please furnish a cover letter that keys your response to our comments and
provides any requested information. Detailed cover letters greatly facilitate our review.
Please understand that we may have additional comments after reviewing any
amendment and your response to our comments.
We urge all persons who are responsible for the accuracy and adequacy of the
disclosure in the filing to be certain that the filing includes all information required under
the Securities Exchange Act of 1934 and that they have provided all information
investors require for an informed investment decision. Since the company and its
management are in possession of all facts relating to a company’s disclosure, they are
responsible for the accuracy and adequacy of the disclosures they have made.
In connection with responding to our comments, please provide, in writing, a
statement from the company acknowledging that:
• the company is responsible for the adequacy and accuracy of the disclosure in the
filing;
• staff comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the filing; and
• the company may not assert staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United
States.
In addition, please be advised that the Division of Enforcement has access to all
information you provide to the staff of the Division of Corporation Finance in our review
of your filing or in response to our comments on your filing.
You may contact Melissa Walsh, Staff Accountant, at (202) 551-3224 if you have
any questions regarding comments on the financial statements and related matters. If you
need further assistance, you may contact me at (202) 551-3226
Sincerely,
Craig D. Wilson
Sr. Asst. Chief Accountant
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Posted in Deception, Google, Marketing, Microsoft, Windows at 5:40 am by Dr. Roy Schestowitz
Summary: The latest set of examples where articles in the press are actually Microsoft spin, sometimes sourced by former Microsoft employees whose job is to promote Microsoft
WE are occasionally warning that Microsoft deceives the public in ways that are scarcely understood by the vast majority of the public. For instance, many people believe that Bing has over 10% market share (and gaining), even though the reality is that Microsoft commands less than 5% of the global search market, despite investing heavily and losing over $2 billion per year, sometimes by literally paying companies to exclude Google (at Verizon for example [1, 2]). Microsoft’s search efforts have been pretty much dead in recent weeks, based on the fact that there is almost no news at all. It’s probably decaying and based on Google’s latest results, it failed to hurt Google in the pocket.
Google happens to be one of Microsoft’s biggest dangers at the moment not just because it controls access to a lot of information but because it’s a huge challenger to Microsoft’s cash cow, Microsoft Office. There is some media buzz about Google’s latest response to Office, which forces prices down but merely replaces one proprietary offering (Microsoft’s) with another (Google’s).
Based on this article from Forbes, Microsoft and its marionette called Yahoo! will participate in the turning of Twitter items into ads.
These tweets are to be “called out” as ads on top of search results on Twitter, much as sponsors can pay for listings atop rankings on search engines such as Google, Microsoft’s Bing and Yahoo. That means Twitter users would see the new ads when they search broadly for topics being tweeted about.
We have already explained what Microsoft does at Twitter, under posts such as:
We have just discovered that another Microsoft-boosting blog has been created by IDG to generate endless Microsoft PR (e.g. [1, 2, 3]), including the fake “goodwill” and the schwag trips which are also described in a Microsoft-boosting Web site called Neowin:
During the tour Microsoft will demonstrate the new features of Windows 7 and Office 2010 on a bus. In January 2007 Microsoft set off on a Windows Vista coach tour that featured comfy leather recliners, wireless internet, Xbox 360s and free copies of Windows Vista.
IDG is still employing many Microsoft boosters (and GNU/Linux bashers) such as Shane O'Neill, who keeps promoting Microsoft about 80% of the time. Michael Gartenberg, a former Microsoft AstroTurfer on the company’s payroll, is still promoting Microsoft nearly 100% of the time. We wrote about him in posts such as:
Here is Gartenberg advertising Microsoft under the costume of “analyst” again. “Views expressed here are his own,” says the text at the bottom, but who are they kidding? This is a former Microsoft employee who pretends to be independent now that he promotes Microsoft endlessly. There is another person who is doing just that and his name is Andre Da Costa [1, 2, 3, 4, 5]. Here is the latest mentioning of Da Costa’s little Microsoft-boosting operation that gives him gifts and awards from Microsoft.
How many times have we seen bloggers who will write in the hope they receive a freebie from Microsoft? Have we not seen articles from people where its alleged they have received a free laptop from good old MS?
Microsoft is fooling the world by pretending to have received a lot of support from the public. Upon closer inspection, however, a lot of this public is in Microsoft’s pocket and it makes no disclosure to serve as a prior warning. Someone should. █
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