Bonum Certa Men Certa

Microsoft's Patent Offensive “a Sign They're Not Making Enough Money With Their Old Business.”

"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."

--The Economist, 1999



Summary: Analysis of Microsoft's transition into a bully that sues companies using software patents in order to make money; further evidence of software patents disdain, even from patent holders (monopoly owners)

UNDERNEATH the coat of hype, Microsoft is a fragile company with persistent layoffs and increasing debt. Nowadays, as we repeatedly show, Microsoft is attacking those who share Windows and claiming money from them. In essence, it is suing and extorting its very own distributors.



“What this really ought to be called is, extortion as a business model.”But Microsoft is not just suing and extorting its partners; its competitors too receive similar treatment. "A sign they're bleeding money" is how Rui Seabra explains it and he adds: "When a company starts using it's [software patents] portfolio regularly, it's a sign they're not making enough money with their old business."

Watch this gory metaphor from the headline of the 'Microsoft press' (about the Salesforce extortion): "Microsoft Draws Blood in Salesforce.com Patent Suit"

Glyn Moody asks: "old patents to block new ideas?"

What this really ought to be called is, extortion as a business model. Here is the article Moody was referring to:

Microsoft and Salesforce.com Patent Dispute - a Sign of Battles to Come?



[...]

It's also a sign that Microsoft is starting to cash in on its patent portfolio.

So, that leads to the next question:

What company is Microsoft targeting next?


Microsoft has resorted to patent racketeering [1, 2, 3, 4, 5, 6, 7]. How shameful. Apologists of Microsoft rarely defend this strategy, either. Here is Microsoft's booster Alexander Wolfe writing about the rush for patents. The Financial Times is producing similar patent propaganda by equating patents with progress (rather than hindering of one's progress). From the opening paragraph:

The north-east, birthplace of the steam train and Newcastle Brown Ale, is once again a hub for new ideas, generating more patents per person per pound invested in R&D than any other region of the UK over the past decade.


It is articles like this one which brainwash the public and have the public believe that patents are beneficial to the public rather than the biggest corporations (which use them to marginalise emerging businesses and artificially elevate prices).

Watch this good new article from Vivek Wadhwa, a co-author of several software patents. He is calling for such patents to be abolished in his new piece "Why We Need To Abolish Software Patents" (we mentioned his criticisms of patents last week as well [1, 2]):

During my tech days, I co-authored four software patents. Each cost my startup about $15,000—which seemed like a fortune in those days. I didn’t really expect these to give me any advantage; after all if my competitors had half a brain, they would simply learn all they could from my patent filing and do things better. But I needed to raise financing, and VCs wouldn’t give me the time of day unless I could tell a convincing story about how we, alone, owned the intellectual property for our secret sauce. We got the financing, and the plaques of the patents looked great in our reception area, so the expense was worth it. But there was definitely no competitive advantage.

[...]

New research by Berkeley professors Stuart J.H. Graham, Robert P. Merges, Pam Samuelson, and Ted Sichelman highlights the extent of this problem. They surveyed 1332 early-stage technology companies founded since 1998, of which 700 were in the software/internet space. Here is what they found:

* In software, only 24% of startups even bothered to file a patent. In medical devices, this proportion was 76%; and in biotech, 75%. Far more venture-backed companies file patents: in software, 67%; in medical devices, 94%; and in biotech, 97%. * Venture-backed companies also file more patents than others that file patents. They file, on average, 5.9 patents as against the all-company average of 1.7. In medical devices and biotech, this is 25.2 vs. 15.0 and 34.6 vs. 9.7, respectively.


Actually, VCs don't want software patents (at least those who have blogs) and they too -- like Wadhwa -- are enthusiastically citing the new study from Stuart Graham, Robert Merges, Pam Samuelson, and Ted Sichelman [1, 2, 3].

The world does not want software patents, but Microsoft does want software patents. What does that say about Microsoft's meaning to the world?

Recent Techrights' Posts

So When Will British Politicians, Police, Government Departments Quit Twitter (X.com)?
They sure bring constituents there (by being there)
IBM Red Hat Does Not Compete With Microsoft, It's a Microsoft Reseller
even if employees of Red Hat dislike and distrust Microsoft
Dr. Andy Farnell on Marketing Bad Things Like Slop Using FOMO (Fear of "Being Left Behind")
many of the same themes we often cover here
IBM Stock Compared to Bitcoin, Fake Articles About IBM Promote Myths About IBM
The stock moves based on false marketing
 
Links 13/01/2026: Russia Weaponises Weather Against Civilians, Beijing-Controlled HK Attacks Legal Team of Besieged Critics
Links for the day
Gemini Links 13/01/2026: Loss of Desire to Produce, Individual Consumption
Links for the day
Shobhit Varshney From IBM Pushing Slop at Large Bank, Another McDonald's Waiting to Happen?
How long can they get away with phony narratives like "replaced by AI"?
Links 13/01/2026: Ubisoft Layoffs, "India IT In Shambles", and Microsoft Chatbot Killing People
Links for the day
IBM is Not a Leftist Company, the "I" Stands for Imperialism, and Poo Floats to the Top
Remember that AK is military from both sides of his family
Links 13/01/2026: More Mass Layoffs in GAFAM, Catching Up With Political News of Early January
Links for the day
Freedom of Speech in the UK (or Freedom of the Press/Expression) and Protection From Adversaries
undressing people without consent and in very bad taste is not "speech"
Ending the Status Quo at the European Patent Office (EPO) This Year
Things will continue to get worse as long as the "Digital Majority" stays silent and/or passive
Greenland Ought to Move to GNU/Linux, Not Apple
GNU/Linux at 4%
If You Care About Freedom, Don't Follow IBM Red Hat (Like Microsoft Novell 20 Years Ago)
IBM Red Hat and Microsoft don't seem to compete
Red Hat Layoffs, Even of "AI" Staff in India
This is how companies die
LLM Slop Isn't Replacing Online News, It's Just a Pest That's Gradually Going Away as Money for Slop Runs Out
Slop likes to talk about itself (like some kind of 'web-cancer')
Not Journalism: Almost 80% of the 'Articles' We Saw About Torvalds and 'Vibe Coding' Are LLM Slop (Sometimes Slop Images)
The real issue is, Torvalds who created Git as a solution to proprietary prison is entertaining Microsoft's own proprietary prison
EPO People Power - Part XXXIII - Interest From Some European Media, For a Change
Without it, we'll become another Russian Federation
Just Another Reminder That Microsoft Didn't Deny Mass Layoffs
Remember that Microsoft never denied this
GNU/Linux Measured at 6% in Réunion This Year
Population sizes like a million people are nothing to sneeze at
Bluewashing Continues, Red Hat Onboarding Interns in Low-Paid Regions
It's the end of the second Monday of 2026
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 12, 2026
IRC logs for Monday, January 12, 2026
Gemini Links 13/01/2026: ScottoRang and Outage
Links for the day
GNU/Linux Exceeding 6% in Cape Verde
Windows is measured as down sharply
When It Comes to Health, Slop is a Flop and It Kills People
Chatbots will mostly die after many people die due to them
2026 Has Begun Well for GNU/Linux Users (and for Us)
A lot of the anti-Linux FUD we got accustomed to seeing some years ago became scarce
Links 12/01/2026: Vista 11 Exodus and Famicom/NES Game
Links for the day
Links 12/01/2026: Twitter (X) Being Blocked in More Countries, PTAB Besieged by Cheeto Appointees (Bad Patents Getting Through)
Links for the day
Links 12/01/2026: Brussels Plotting Exit From GAFAM (US), Carole Cadwalladr Explains "Peter Thiel's New Model Army"
Links for the day
Oligarchs and States Always Attempted to Obstruct Efforts to Expose Their Corruption
We commend the administrator who consistently and adamantly defend the freedom of speech
Scheduled Maintenance Between 15th of January and Days to Follow, Free Software Foundation (FSF) Looking to Add 43 More Members by 16th of January
People who value Software Freedom should consider joining to support the FSF
Bracing for Microsoft Layoffs, Tired of Microsoft Lies, Microsoft Staff Wants Transparency, Not Face-Saving Coverup From Frank Shaw
totally made up stock price
GNU/Linux Estimated at Around 5% in Montserrat
another country where the "share" of GNU/Linux is now measured at 5%
GNU/Linux Exceeding 5% in Guadeloupe According to statCounter
GNU/Linux "share" estimates in Guadeloupe
Dr. Richard Stallman @ Georgia Tech Next Week
More Than One Week From Now
EPO People Power - Part XXXII - Little Hope That European Press Will Attempt to Expose Drug Abuse in Europe's Second-Largest Organisation
What does this tell us about the press in Europe?
Three most controversial Australian authors linked to St Paul's, Coburg
Reprinted with permission from Daniel Pocock
Links 11/01/2026: Data Breaches and Recent (Early 2026) Political Developments
Links for the day
Gemini Links 12/01/2026: Insomniacs After School and Boycotting Amazon
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 11, 2026
IRC logs for Sunday, January 11, 2026
Brett Wilson LLP 'Dropping' the LLP, Is This Rebranding?
It's not a coincidence or a glitch, there was a formal change somewhere in the system
Can IBM Still Control the Narrative?
We'll see what comes out through the grapevine later this week
IBM SkillsBuild as Microsoft Training, Microsoft Vendor Lock-in, Microsoft Surveillance
Microsoft benefits from IBM's "training"
EPO People Power - Part XXXI - Almost No Crime is Possible Without Enablers and Complicit Colleagues
By the middle of January 2026 we'll have taken things up another gear
Aruba's GNU/Linux Adoption Seems to Have Reach All-Time High This Year
ChromeOS rose by a lot too
After the LLM Slop Frenzy...
In every way, slop is no better than spam
Links 11/01/2026: 'Nothing to Lose' in Iran and Kyiv Restores Electricity
Links for the day
Gemini Links 11/01/2026: "Late To The Party" and "Thinking About Software Licences"
Links for the day
Links 11/01/2026: Bob Weir and Stewart Cheifet Perish
Links for the day
Higher Adoption Rates of GNU/Linux in Cyprus in Recent Years
there are some Cypriots who are championing Free software
Microsoft's linkedin.com is Shrinking, Expect LinkedIn Layoffs to Carry on in 2026
Expect the mass layoffs and office closures to carry on there, maybe as early as next week
Gemini Links 11/01/2026: Scott Morgan and 'The Unix Way'
Links for the day
IBM to Be 'Reorganised'
The rich look for ways to 'monetise' what's left IBM
Dr. Andy Farnell Explains Why He'll Stop Sending E-mail to Microsoft and Gmail Users
The article is long and well worth reading
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 10, 2026
IRC logs for Saturday, January 10, 2026