Bonum Certa Men Certa

More Microsoft Debt, Legalised Tax Evasion, and Investment in the SCO Case

Eye



Summary: A look at Brad Smith's lobbying, a loan of $1.25 billion, and Microsoft's involvement in the SCO case against Linux is revisited

The last post finished with a word about Brad Smith's lobbying for Microsoft.



It was only weeks ago that Brad Smith was lobbying for legalisation that gives Microsoft a green light to tax evasion -- an issue which is now being discussed by apologists of Microsoft's bad practices (who met Brad Smith for dinner):

As we pointed out in today’s Morning Fizz, Jeff Reifman, a former Microsoft employee who is on a crusade to get Microsoft to pay royalty taxes on software licenses, took me task for not asking Microsoft VP Brad Smith about their—estimated $100 million a year—tax dodge. (Reifman’s website has a helpful fact sheet on the issue.)

Here’s the deal: Microsoft has a shop in Reno, Nevada where it issues its software licenses. Even though dividends from those licenses come back to Redmond, the licensing transactions are not captured by Washington State because the business is technically generated out of Nevada. (I talked at length today with bureaucrats in Olympia who confirmed the situation.)

[...]

By the way, I take issue with Reifman’s assertion that I was “charmed” or “rolled over” by Smith and the dinner.


Microsoft really needs to start paying tax. The company's existing debt deepens based on this new report, so citizens might never see a penny.

The Bank of New York Mellon Trust will be trustee of $1.25 billion in Microsoft convertible debt after the software company offered them to investors last week, Microsoft announced Friday (PDF – 106 pages).


Pogson wrote about this company's famous case of legalised (using Microsoft veterans in the government) tax evasion:

I would like the USA to apply RICO to what M$ does, too. RICO covers fraud such as false advertising and tax fraud. Many of the “get the fud” ads, the layers of partners and kickbacks, and $billions “invested in research” could be fraudulent. Could a business really investing billions in research actually produce a product as faulty as that other OS? I expect a lot fewer billions have been invested in GNU/Linux research for a much better result. Is the research of M$ legitimate, or a tax dodge? Around the world, M$ has been pursued for dodging taxes. I would not be surprised to find they do it “at home”. The last annual report said:
“During fiscal year 2008, we reached a settlement with the Internal Revenue Service (“IRS”) on its 2000-2003 examination. As a result, we reduced our unrecognized tax benefits by $4.8 billion and recognized a tax provision reduction of $1.2 billion. As a result of the 2000-2003 settlement and the related impact on subsequent years, we paid the IRS approximately $4.1 billion during fiscal year 2009.”


One can go further and discuss Microsoft's funding of SCO, which is a serious issue. "Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system," confessed Larry Goldfarb, a key investor in SCO who was approached by Microsoft. "Microsoft did not want to be seen as attacking IBM or Linux," he added. SCO is now dead or at least dying, but the damage caused by Microsoft's investment in SCO will never be undone.

I, personally, would like to see SCO die in a fire for all the expense, FUD and general heartache they brought to the free and open source community, but there's probably not enough left of the company to burn.


Over at ZDNet (now featuring Vista 7 ads in all blog pages), pseudonym Paul Murphy is told: "Come on “Paul”, you need to step up someday and admit that you have been wrong all along about SCO and their scheme against Linux. You can do it, I know you can!"

Pseudonym Paul Murphy has been promoting SCO's case for many years and he still refuses to acknowledge that it was all in vain. Groklaw responds with a mention of Novell's role:

He continues to insult, and he predicts SCO, or a new owner of Novell, will surely succeed yet in fulfilling SCO's plot, in what he believes, if I've understood him, will be a legal Hail Mary pass to go down in history. The new FUD is his article, Suicide by Victory: More on SCO, in which he predicts gloom and doom for Linux because Novell won at the jury trial in Utah.


Groklaw also refers to this article which cites Rob Enderle (big SCO booster and Linux agitator). "The link is to Rob Enderle's old article," writes Groklaw. "His point is that litigation is a skill, and most CEO's don't have skill in that field."

Well, Microsoft has been claiming to 'embrace' "Open Source" while litigiously attacking "Open Source" [1, 2, 3, 4, 5, 6, 7] and clearly describing it as a competitor. SCO did something similar with Linux. That was probably before Microsoft approached SCO with cash. That's just how Microsoft operates.

Based on a new report, the judge who became famous partly for his role in convicting Microsoft is being tapped by Oracle in its case against Microsoft's ally SAP (which lobbied against Oracle and Sun last year). To quote part of the article: (also in [1, 2])

Oracle has brought in the big guns to assist in its intellectual-property lawsuit against rival applications vendor SAP, hiring attorney David Boies, well-known for his high-profile role prosecuting the U.S. government's landmark antitrust case against Microsoft.

[...]

The attorney's role in the Microsoft case, where he served as a special trial counsel for the U.S. Department of Justice, was just one highlight in a career many legal industry observers have called legendary.


Oracle has just been sued for overcharging the government, but that's another story. We hope to see Microsoft sued for the role it played in the SCO case, which happens to have hurt Oracle. Microsoft has a tradition of sending attack dogs or vultures to attack its competition.

Eagle

Recent Techrights' Posts

Extortion is a Crime, Even If You're Based in Another Continent and Work for Microsoft
reported to British authorities
 
Links 06/06/2025: Microsoft XBox Bracing For More Mass Layoffs, Climate Disaster, Fake 'Money' Tokens From US President
Links for the day
Gemini Links 06/06/2025: Vanishing Cultures and MElon Implosion
Links for the day
We're in 6/6 Now, Almost Halfway in 2025
2025 was probably the best year for us
South Americans Are Saying Goodbye to Microsoft
We're hardly even "Cherry-Picking" or conveniently singling out one South American nation
Abuse Inside the Polish Patent Office (UPRP) - Part III: Data Protection Failures, Just Like at the European Patent Office (EPO)
Just less than a decade ago we showed that the EPO had illegally shared staff data with third parties
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, June 05, 2025
IRC logs for Thursday, June 05, 2025
Pushing Microsoft's Proprietary Trash/Trap as "Open" and "Linux" (Windows is 'Linux' Now?)
Maybe it's time to just stop saying "FOSS". The people who use that term are promoting Microsoft.
Slopwatch: Comparing Linux to Vermin, Attacking BSD With LLM Slop, and Helping Microsoft Demonise Linux/OpenBSD/SSH Over Weak User Passwords
Microsoft must be laughing its arse off, seeing how a bunch of Serial Sloppers (no skills, no comprehension, no integrity, no creativity) and slopfarms use Microsoft LLM to flood the Web with anti-Linux FUD
Links 05/06/2025: US Poised for Another $2.4 Trillion to Debt, Cops Want GAFAM Kill Switches
Links for the day
Links 05/06/2025: First US Spacewalk 60 Years Ago, GNU Octave 10.2.0 is Out
Links for the day
Scandinavia Saying Goodbye to Microsoft
The Danes have had enough of Microsoft
GNU/Linux Measured at 6% in Bangladesh, According to statCounter
Windows isn't growing, it's going away
Nat Friedman Had Left Microsoft GitHub Exactly One Week Before Matthew Garrett Sent His First SLAPP (Which Was an Empty Threat, He Was Abusing the Legal System of Another Continent to Terrorise Critics Who Had Just Unearthed Major Microsoft Scandals)
And it was likely talked about by his lawyers around the exact same time Nat Friedman was packing up
Gemini Links 05/06/2025: Loop Earplugs Review and ANS Forth
Links for the day
Armenian Adoption of GNU/Linux
Russian influence in Armenian must be worrying to Microsoft
Abuse Inside the Polish Patent Office (UPRP) - Part II: Turning a Once-Respected Patent Office Into a Circus and Laughing Stock
It's not legal, but administrators who don't care about the law and don't fear the law would just go ahead and turn things to junk
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 04, 2025
IRC logs for Wednesday, June 04, 2025
Slopwatch: Mindless Slop Pieces, Fake Images and Text, Linux FUD on the Cheap
spewed out by Microsoft-controlled LLMs
Links 04/06/2025: Workers' Strikes, Sudan Exodus
Links for the day
Links 04/06/2025: Linux Foundation PR Spam and Lee Jae-myung Wins Election
Links for the day
Gemini Links 04/06/2025: Future Leaders of the World and Platforming Jordan Peterson
Links for the day
Links 04/06/2025: WSL Backfiring on Microsoft and "Disney, Microsoft Announce Massive Layoffs"
Links for the day
Our Case is a Very Easy Win, the SLAPPs From Microsofters Were a Grave Error, and Censoring Information Won't Work (It'll Only Ever Backfire)
Censoring is what people do when they lose the argument
Say the Truth, the Rest Will Follow
There's no guarantee that writing the truth will result in an audience (or readership), but over time - in the long run - people generally gravitate towards what they know or feel to be crude truth, not just what's comforting (albeit false or self-deluding, usually groupthink dictated from above)
How to Expose High-Level Corruption Without Getting in (Too Much) Trouble
Democracy depends on free press and freedom of the press depends on being able to safely publish (and keep available) material that bad people don't want to be known to anybody
In-Depth EPO Coverage at Techrights Turns Eleven
11 years is a very long time
Windows Measured Below 10% in Afghanistan, GNU/Linux Gaining a Lot
about 80% are Android (Linux) users, compared to only about 10% for Windows
Poland's Political Predicament and Social Control Media
Democracy and fake "tech" don't mix well; the latter tends to interfere with the former and that's why we get more "Putins" out there
EPO: Taking Away From the Staff to Give More to the Rich
The Central Staff Committee (CSC) wrote to EPO staff earlier this week
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 03, 2025
IRC logs for Tuesday, June 03, 2025
Abuse Inside the Polish Patent Office (UPRP) - Part I: It's a Lot Like the EPO
we can commence a series soon
Gemini Links 04/06/2025: Inescapable Questions and Quitting All "Oligarch Tech"
Links for the day