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

01.13.11

Microsoft Patent Cartel (CPTN) Dodges German Federal Cartel Office

Posted in Antitrust, Finance, Microsoft, Novell, Patents at 8:42 am by Dr. Roy Schestowitz

Old policeman

Summary: The regulatory process regarding CPTN in Germany is hindered by a Microsoft manoeuvre which avoids contact with the German Federal Cartel Office

SOME SEEMINGLY-conflicting reports either confirm or refute the claims we covered the other day. It seems to be a bit of both and while AttachMSFT [sic] looks for a loan with which to buy Novell, it seems likely that Microsoft (MSFT) will get Novell’s patents after all.

Fortunately, while some people go by Microsoft’s word, Groklaw explains that it is more complicated than that and Steven J. Vaughan-Nichols emphasises that “CPTN Holdings is still trying to buy Novell’s patents”:

Sources close to Novell told me that was indeed the case. The CPTN group will be re-filing to obtain the patents. Their plans haven’t changed a bit. A Microsoft representative confirmed that CPTN was still planning on buying the patents. The PR rep said, “This is a purely procedural step necessary to provide time to allow for review of the proposed transaction.”

Now, this is not to say that the Novell deal is sure to happen. I find it more than a little odd that Attachmate was still looking for just over a billion dollars to close the deal in late December. Microsoft is already helping Attachmate buy Novell and Attachmate was already getting a steal of a deal on Novell.

The FSFE, whose leadership is mostly based in Germany, has just expressed concerns about CPTN:

As a consequence, if the sale of Novell’s patents to CPTN is allowed to go ahead, this will significantly increase the legal threat level for Free Software.

This is why FSFE is extremely concerned about the sale of Novell’s patents to CPTN. We have shared our concerns with the German competition authorities on December 22, 2010.

CPTN apparently withdrew its filing with the German authorities on December 30. This could mean that the companies behind CPTN are changing their strategy, or that they’re merely reformulating their application. It definitely doesn’t mean that the danger is over.

The competition authorities should only allow this deal if there are effective measures in place to prevent the patents in question from being used against Free Software in an attempt to restrict competition. As an effective measure, CPTN Holdings should be required to make the patents in question available under conditions which allow their use in Free Software, including in programs distributed under GNU General Public License (GPL) and other copyleft licenses.

The Microsoft booster simply says that “Microsoft’s Novell patent cartel dodges German regulators” (yes, that’s the headline from a Microsoft booster, who is close to the company). To quote:

But IT World has pointed out that this relates only to Germany and that CPTN continues to exist as a US limited liability company registered with the Secretary of State for Delaware (see here).

Further, Microsoft has told TechFlash that the withdrawal from Germany is a “purely procedural step necessary to provide time to allow for review of the proposed transaction.”

“Procedural” indeed.

Such is the concern over the deal that in December, the OSI lodged an official complaint with the Federal Cartel Office, asking regulators to investigate the sale of the patents.

OSI president Michael Tiemann announced the OSI’s request to German regulators in a blog post on December 29, the day before CPTN quietly wrapped up operations.

The still-widely-covered OSI complaint can perhaps be refiled as well, e.g. to address US regulators (although the FTC is clawless and toothless).

Going back a month or so, we have this analysis which discusses Microsoft’s partners/allies too:

Novell’s Patents Bought By Microsoft, Apple, EMC, & Oracle (From ZDNet) This news raises even more questions about the Novell acquisition. Is VMware really out of the picture? Is Apple getting into the enterprise space? Will Microsoft even get the lion’s share of the IP?

Android will be a potential target of CPTN, as a former Novell employee (Zonker) helps explain in a new column. Google also seems concerned about Nortel patents, thus showing everything that is wrong about the patent system especially once companies implode. To quote this recent report about it:

Apple, Nokia and Google are all expected to bid for Nortel’s huge patents hoard. The winner could help decide the licensing structures for LTE.

LTE deployments and trials may be stacking up, but one significant aspect remains fraught with uncertainty – the patent position.

In previous generations of mobile technology, individual IPR holders might argue bitterly over rights and royalties, but the process was well understood – and took place strictly behind closed doors, with bilateral agreements.

In other news, there is another investigation which seeks to block the Novell deal [1, 2] and it is covered in a press release that says in the beginning:

Novell Inc. announced on November 22, 2010 that it had agreed to sell the company to Attachment Corporation for $6.10 per share for a total transaction value of $2.2 billion. Attachmate is owned by Francisco Partners, Golden Gate Capital and Thoma Bravo. In conjunction with the sale, Novell announced that it has agreed to sell certain intellectual property to CPTN Holdings LLC for $450 million in cash.

Levi & Korsinsky LLP is going to challenge this deal, so maybe it’s premature to say that Novell is sold. It is also possible that Microsoft won’t get Novell’s patents at the end.

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

What Else is New


  1. Links 20/6/2018: Qt 5.11.1, Oracle Solaris 11.3 SRU 33, HHVM 3.27.0, Microsoft Helping ICE

    Links for the day



  2. Patent Extremists Are Unable to Find Federal Circuit Cases That Help Them Mislead on Alice

    Patent extremists prefer talking about Mayo but not Alice when it comes to 35 U.S.C. § 101; Broadcom is meanwhile going on a 'fishing expedition', looking to profit from patents by calling for embargo through the ITC



  3. What Use Are 10 Million Patents That Are of Low Quality in a Patent Office Controlled by the Patent 'Industry'?

    The patent maximalists are celebrating overgranting; the USPTO, failing to heed the warning from patent courts, continues issuing far too many patents and a new paper from Mark Lemley and Robin Feldman offers a dose of sobering reality



  4. The Eastern District of Texas is Where Asian Companies/Patents/Trolls Still Go After TC Heartland

    Proxies of Longhorn IP and KAIST (Katana Silicon Technologies LLC and KAIST IP US LLC, respectively) roam Texas in pursuit of money of out nothing but patents and aggressive litigation; there's also a Microsoft connection



  5. EPO Insiders Correct the Record of Benoît Battistelli’s Tyranny and Abuse of Law: “Legal Harassment and Retaliation”

    Battistelli’s record, as per EPO-FLIER 37, is a lot worse than the Office cares to tell stakeholders, who are already complaining about decline in patent quality



  6. Articles About a Unitary Patent System Are Lies and Marketing From Law Firms With 'Lawsuits Lust'

    Team UPC has grown louder with its lobbying efforts this past week; the same lies are being repeated without much of a challenge and press ownership plays a role in that



  7. The Decline in Patent Quality at the EPO Causes Frivolous Lawsuits That Only Lawyers Profit From

    The European Patent Office (EPO) will continue granting low-quality European Patents under the leadership of the Battistelli-'nominated' Frenchman, António Campinos; this is bad news for science and technology as that quite likely means a lot more lawsuits without merit (which only lawyers profit from)



  8. What Battistelli's Workers Think of His Latest EPO Propaganda

    "Modernising the EPO" is what Battistelli calls a plethora of human rights abuses and corruption



  9. Links 19/6/2018: Total War: WARHAMMER II Confirmed for GNU/Linux, DragonFlyBSD 5.2.2 Released

    Links for the day



  10. More Media Reports About Decline in Quality of European Patents (Granted by the EPO)

    What the media is saying about the letter from Grünecker, Hoffmann Eitle, Maiwald and Vossius & Partner whilst EPO communications shift attention to shallow puff pieces about how wonderful Benoît Battistelli is



  11. Beware Team UPC's Biggest Two Lies About the Unitary Patent (UPC)

    Claims that a Unified Patent Court (UPC) will commence next year are nothing but a fantasy of the Liar in Chief, Benoît Battistelli, who keeps telling lies to French media (some of which he passes EPO money to, just like he passes EPO money to his other employer)



  12. Diversity at the EPO

    Two decades of EPO with 16-17 years under the control of French Presidents (and nowadays predominantly French management in general with Inventor Award held in France almost half the time) is "diversity at the EPO"



  13. Orrin Hatch, Sponsored the Most by the Pharmaceutical Industry, Tries to Make Its Patents Immune From Scrutiny (PTAB)

    Orrin Hatch is the latest example of laws being up for sale, i.e. companies can 'buy' politicians to act as their 'couriers' and pass laws for them, including laws pertaining to patents



  14. Links 17/6/2018: Linux 4.18 RC1 and Deepin 15.6 Released

    Links for the day



  15. To Keep the Patent System Alive and Going Practitioners Will Have to Accept Compromises on Scope Being Narrowed

    35 U.S.C. § 101 still squashes a lot of software patents, reducing confidence in US patents; the only way to correct this is to reduce patent filings and file fewer lawsuits, judging their merit in advance based on precedents from higher courts



  16. The Affairs of the USPTO Have Turned Into Somewhat of a Battle Against the Courts, Which Are Simply Applying the Law to Invalidate US Patents

    The struggle between law, public interest, and the Cult of Patents (which only ever celebrates more patents and lawsuits) as observed in the midst of recent events in the United States



  17. Patent Marketing Disguised as Patent 'Advice'

    The meta-industry which profits from patents and lawsuits claims that it's guiding us and pursuing innovation, but in reality its sole goal is enriching itself, even if that means holding science back



  18. Microsoft is Still 'Cybermobbing' Its Competition Using Patent Trolls Such as Finjan

    In the "cybersecurity" space, a sub-domain where many software patents have been granted by the US patent office, the patent extortion by Microsoft-connected trolls (and Microsoft's 'protection' racket) seems to carry on; but Microsoft continues to insist that it has changed its ways



  19. Links 16/6/2018: LiMux Story, Okta Openwashing and More

    Links for the day



  20. The EPO's Response to the Open Letter About Decline in Patent Quality as the Latest Example of Arrogance and Resistance to Facts, Truth

    Sidestepping the existential crisis of the EPO (running out of work and issuing many questionable patents with expectation of impending layoffs), the PR people at the Office choose a facts-denying, face-saving 'damage control' strategy while staff speaks out, wholeheartedly agreeing with concerned stakeholders



  21. In the United States the Patent Trial and Appeal Board, Which Assures Patent Quality, is Still Being Smeared by Law Firms That Profit From Patent Maximalism, Lawsuits

    Auditory roles which help ascertain high quality of patents (or invalidate low-quality patents, at least those pointed out by petitions) are being smeared, demonised as "death squads" and worked around using dirty tricks that are widely described as "scams"



  22. The 'Artificial Intelligence' (AI) Hype, Propped Up by Events of the European Patent Office (EPO), is Infectious and It Threatens Patent Quality Worldwide

    Having spread surrogate terms like “4IR” (somewhat of a 'mask' for software patents, by the EPO's own admission in the Gazette), the EPO continues with several more terms like “ICT” and now we’re grappling with terms like “AI”, which the media endlessly perpetuates these days (in relation to patents it de facto means little more than "clever algorithms")



  23. Links 15/6/2018: HP Chromebook X2 With GNU/Linux Software, Apple Admits and Closes a Back Door ('Loophole')

    Links for the day



  24. The '4iP Council' is a Megaphone of Team UPC and Team Battistelli at the EPO

    The EPO keeps demonstrating lack of interest in genuine patent quality (it uses buzzwords to compensate for deviation from the EPC and replaces humans with shoddy translators); it is being aided by law firms which work for patent trolls and think tanks that propel their interests



  25. Grünecker, Hoffmann Eitle, Maiwald and Vossius & Partner Find the Courage to Express Concerns About Battistelli's Ugly Legacy and Low Patent Quality

    The astounding levels of abuse at the EPO have caused some of the EPO's biggest stakeholders to speak out and lash out, condemning the Office for mismanagement amongst other things



  26. IAM Concludes Its Latest Anti-§ 101 Think Tank, Featuring Crooked Benoît Battistelli

    The attack on 35 U.S.C. § 101, which invalidates most if not all software patents, as seen through the lens of a Battistelli- and Iancu-led lobbying event (set up by IAM)



  27. Google Gets Told Off -- Even by the Typically Supportive EFF and TechDirt -- Over Patenting of Software

    The EFF's Daniel Nazer, as well as TechDirt's founder Mike Masnick, won't tolerate Google's misuse of Jarek Duda's work; the USPTO should generally reject all applications for software patents -- something which a former Commissioner for Patents at the USPTO seems to be accepting now (that such patents have no potency after Alice)



  28. From the Eastern District of Texas to Delaware, US Patent Litigation is (Overall) Still Declining

    Patent disputes/conflicts are increasingly being settled outside the courts and patents that aren't really potent/eligible are being eliminated or never brought forth at all



  29. Links 13/6/2018: Cockpit 170, Plasma 5.13, Krita 4.0.4

    Links for the day



  30. When the USPTO Grants Patents in Defiance of 35 U.S.C. § 101 the Courts Will Eventually Squash These Anyway

    Software/abstract patents, as per § 101 (Section 101) which relates to Alice Corp v CLS Bank at the US Supreme Court, are not valid in the United States, albeit one typically has to pay a fortune for a court battle to show it because the patent office (USPTO) is still far too lenient and careless


CoPilotCo

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

CoPilotCo

Recent Posts