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

06.22.10

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

Posted in Finance, GNU/Linux, Microsoft, Novell, Oracle, SCO, SUN at 4:04 am by Dr. Roy Schestowitz

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

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email
  • Slashdot

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

What Else is New


  1. The 'Access Watson Tapes': Rare Richard Nixon Tape on Former IBM President and Son of IBM's Founder Engaging in Sexual Abuse of Women

    Arthur K. Watson (son of Thomas Sr.) showed chauvinistic and misogynistic behaviour bordering on the criminal; as a US diplomat he was never held accountable for his actions and efforts were made (going all the way up to the US President) to cover everything up



  2. IRC Proceedings: Tuesday, September 29, 2020

    IRC logs for Tuesday, September 29, 2020



  3. Links 30/9/2020: Nitrux 1.3.3, Tracker 3.0

    Links for the day



  4. [Meme] Is IBM's Proprietary Software Surveillance in the 2020 Election a Form of Corporate 'Meddling'?

    Called after an infamous recipient of a Nazi medal (Mr. Watson), an “app” with secret code and remote logging/recording will be used to determine whether the Orange One gets re-elected



  5. Learning to Say “No!” to Tyrants

    IBM continues with its old and oppressive/repressive agenda, even if this time around it's thinly disguised as "tolerance" and "ethics"



  6. Links 29/9/2020: Fedora 33 Beta, Krita 4.4.0 Beta 2, Stellarium 0.20.3 and Mesa 20.2 Released; 20 Million Downloads From the LVFS

    Links for the day



  7. Another Day of ZDNet Being ZDNet, Calling Windows “Linux” (to Confuse People and Help Microsoft Sell Vista 10)

    Microsoft propaganda site ZDNet is keeping up with the tradition of presenting Windows as "Linux" and promoting Windows even in the "Linux" section of the site



  8. [Meme] It's Crazy Not to Eliminate Lame Words That Might Offend Somebody

    If the word “stupid” offends you, then maybe programming isn’t for you, in the same sense that submitting patches with Git over E-mail shouldn't be hard if/when you can develop decent code with sanity checks



  9. IBM Fought for 'Master Race' and Now It's Banning the Word 'Master'

    A lot of the current push to ban the word "master" came from Red Hat (soon IBM, helped by Intel and Microsoft for the most part); we take a hard look at IBM's history to better understand the incredible double standards and what the real motivations might be



  10. IBM's Founder, Mr. Watson (Yes, That Watson), Had “Very Keen Sense of Public Relations”

    "Watson" is a lot more offensive than those supposedly offensive words IBM is working to purge; think about those hundreds of Red Hat workers who are black and were never told about ethnic purges of blacks facilitated by IBM (their new boss)



  11. Under IBM's Leadership Red Hat Becomes a SPAM Marketing Operation, Sending Mass Mails Without Authorisation and Making It Impossible to Unsubscribe

    Red Hat seems incapable of respecting people's inboxes; it subscribes people to things which they never ever subscribed to and makes it impossible to unsubscribe; what has Red Hat become or succumbed to?



  12. EFF: Sitting on a Massive Pile of Money and Members Are Less Than a Third of the Revenue

    As part of our series which explores non-profits turning against their goals (sometimes in pursuit of money, even if that means sellout) we take a good look at the EFF in this age of unprecedented consolidation of wealth and power



  13. IRC Proceedings: Monday, September 28, 2020

    IRC logs for Monday, September 28, 2020



  14. [Meme] Running Public (or Private) Interest Groups for Profit

    The Linux Foundation is picking up some more ‘surveillance capitalism’ money, in the name of… ‘helping’ Linux?



  15. The Concept of Martyrdom in Free Software and the Threat of Demonisation in the Media

    Leaders or figureheads of public interest advocacy are being dismissed as crazy and rude whilst corporations that maim and kill millions of people are spun as "professional" and even "altruistic"; don't fall for it



  16. More Money Does Not Necessarily Mean More Stable Organisations

    The corporate takeover of Free software (privatising the Commons) is a real problem that nobody in the media seems to be talking about, partly because this media is itself corporate and hence part of (participant in) the 'coup'



  17. EPO Management Looks for New and 'Innovative' Ways to Exploit Scientists and Distract From EPO Corruption

    EPO management is desperate for puff pieces, having just produced some greenwashing nonsense (about a dozen press items about this non-event) and now a bunch of self-promotional videos



  18. Before the New York Times Did a Number on Donald Trump It Changed Bill Gates' Tune

    When you speak strictly through a spokesperson it often means you're lying and/or hiding something; the Gates enigma remains unsolved more than a year later



  19. Links 28/9/2020: Linux 5.9 RC7, Review of Linuxfx 10.6, OpenSSH 8.4

    Links for the day



  20. Speaking Through Spokespeople is a Sign of Weakness, Such as Non-Denying and False Denials (or: Bill Gates Never Denied His Connections to MIT Through Jeffrey Epstein)

    Big liars lie shamelessly; the biggest liars lie through proxies and today we examine the evasive tactics of Bill Gates and his associates (who were closely connected to Jeffrey Epstein but refuse to even talk about that, except indirectly)



  21. IRC Proceedings: Sunday, September 27, 2020

    IRC logs for Sunday, September 27, 2020



  22. Accounting for Debconf 19 Travel... in 2020

    A deeper look or analysis of Debian expenditures, which grew more than twicefold for travel last year



  23. Don't Let Microsoft Make 'Open Source' Synonymous With Proprietary Monopoly GitHub

    Now that the OSI works for Microsoft instead of Open Source (no, GitHub isn’t Open Source; it’s inherently against Open Source) we need to understand the modus operandi and learn from old mistakes



  24. Links 27/9/2020: Puppy Linux 9.5, Nitrux 1.3.3

    Links for the day



  25. Public Relations and Tolerance Stunts Are Very, Very Cheap

    It's 2020 and people are asked to focus on superficial aspects of corporations rather than anything of substance (like the effects on society at large, notably exploitation and long-term harm)



  26. Open to Everything

    It always starts with good intentions...



  27. The OSI's President Apparently Does Not Know That His Own Employer (Salesforce) Works for ICE

    The hypocrisy (or double standard) of the OSI’s President is astounding; taking salaries paid in part by ICE budget (Salesforce works for ICE and similarly evil agencies) while protesting in a proprietary software platform of Microsoft (GitHub) about ICE (all this whilst actively participating in it regardless)



  28. [Meme] Communist Tactics

    To Microsoft, Linux is communism until Microsoft controls it (and then runs over it to crush it, the typical modus operandi)



  29. OSI President: Most or Half of the OSI's Money (Even Individual Donors' Money) Goes to a Microsoft-Led Initiative

    The OSI has turned from advocate of "Open Source" (a disingenuous attempt to set aside Free/libre software) to advocate of Microsoft and GitHub in just 3 years (since taking Microsoft's money/bribes)



  30. IRC Proceedings: Saturday, September 26, 2020

    IRC logs for Saturday, September 26, 2020


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