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 24/11/2014: Linux 3.18-rc6, Qualcomm Eyes GNU/Linux Servers

    Links for the day



  2. Boycotting Micro Focus International

    Microsoft's "Partner of the Year" is taking over the patron of SUSE and all of Novell's remains, except the patents (Microsoft has already grabbed those)



  3. Vesna Stilin's Remarks on Željko Topić: Part XI

    Vesna Stilin speaks about her confrontation with EPO Vice-President Željko Topić, who has criminal lawsuits against him in Croatia



  4. Links 22/11/2014: Linux Mint 17.1, Ubuntu MATE

    Links for the day



  5. Links 21/11/2014: Problems at Debian, Jolla Tablet

    Links for the day



  6. Links 18/11/2014: Linux 3.18 RC 5, New DigiKam

    Links for the day



  7. Special Report: Many Criminal Charges Against EPO Vice-President Željko Topić

    The abuses of Željko Topić, who has gained notoriety in his home country, are rapidly becoming public knowledge across all of Europe



  8. Links 16/11/2014: Xfdesktop 4.10.3, GNU Hello 2.10

    Links for the day



  9. Microsoft is Going Into the Anti-Whistleblowing Business, Dodges Criticism Over 19-Year Bug Door in Windows

    With Aorato acquisition Microsoft helps protect the criminals (from whistleblowers) and with lies about .NET Microsoft distracts from a bug that has facilitated remote access into Windows (by those in the know) for nearly two decades



  10. Reaffirming Microsoft's Long-Known Hostility Towards Net Neutrality, Microsoft Crashed Juniper

    Steve Ballmer is ranting against net neutrality and Juniper's business is in trouble after a lot of executives from Microsoft took over most top positions there



  11. Another Massive Step Towards Elimination of Software Patents as Even CAFC Rules Against Them

    After SCOTUS gets involved in the Ultramercial case, the CAFC finally decides to actually serve justice rather than dogma



  12. The GOP's Patent Reform Plan Not Effective Enough to Stop Massive Patent Trolls Like Microsoft/Nokia

    The corporations-serving GOP says that it wants a patent reform, but another reminder is needed of the futility of the suggested changes



  13. How the EPO's Executive Branch (Battistelli and Topić) Banned Scrutiny and Created Authoritarian Model of Control: Part X

    A look at highly dubious moves by EPO President Battistelli and his right-hand man Topić, whose abuses are becoming hard to oversee or even report



  14. Links 15/11/2014: Linux Mint 17.1 Release Candidate, Popcorn Time 0.3.5

    Links for the day



  15. IRC Proceedings: October 26th, 2014 – November 8th, 2014

    Many IRC logs



  16. The Terrible Joke Which is Microsoft 'Loving' Linux: Nightmares With UEFI 'Secure' Boot (i.e. Windows Monopoly Imposed) Continue to Affect GNU/Linux Users

    A reminder of Microsoft's sheer hostility towards GNU/Linux and long-reaching sabotage of GNU/Linux installations



  17. Patent Lawyers Worry About Section 101 in 'Alice' (and Other Patent News)

    A quick roundup of news of interest regarding software patents



  18. Will Write for FUD (Against FOSS)

    Black Duck rears its ugly head again, serving to show that it is in the business of changing perceptions and not in the information or analysis business



  19. Debunking Several Days of Never-Ending Lies About Microsoft and .NET

    .NET is not "Open Source", it cannot be forked (there remains patent threat), Visual Studio is still completely proprietary and it is expected to come to other platforms only because Windows has lost its dominance and Microsoft wants to perpetually control APIs (with software patents) and hence reign over developers



  20. Links 14/11/2014: LibreOffice 4.3.4, Ads Now in Firefox

    Links for the day



  21. Links 14/11/2014: GNOME 3.14.2, PulseAudio 6.0

    Links for the day



  22. Microsoft Windows is Still Designed as a Paradise of Back Doors, Intrusion, Wiretaps, and Interception

    At many levels -- from communication to storage and encryption -- Windows is designed for the very opposite of security



  23. Forget the FUD About Bash and OpenSSL, Microsoft Windows Blamed for Massive Credit Cards Heist

    Home Depot learns its lesson from a Microsoft Windows disaster, but it stays with proprietary software rather than move to software that is actively audited by many people and is inherently better maintained (Free/libre software)



  24. Windows 'Update' and NSA Back Doors, Including a 19-Year Bug Door in Microsoft Windows

    The back doors-enabled Microsoft Windows is being revealed and portrayed as the Swiss cheese that it really is after massive holes are discovered (mostly to be buried by a .NET propaganda blitz)



  25. Revealed: Microsoft is Trying to Corrupt the UK in Order to Eliminate Its OpenDocument Format-Oriented Standards Policy

    Microsoft interference with Britain's preference for ODF is now confirmed, thanks to a valuable news report from Computer Weekly; OOXML lock-in is being unleashed by Microsoft on Android users



  26. Links 13/11/2014: Ubuntu MATE 14.04.1 LTS, New KDE Plasma

    Links for the day



  27. .NET is NOT "Open Source", But Microsoft's Minions Shamelessly Openwash It Right Now

    The openwashing of .NET continues with yet another publicity stunt that is intended to lock in developers



  28. Links 11/11/2014: GNOME Trademark Dispute Settled, Mozilla Embraces Tor

    Links for the day



  29. Patent Reform Subversion After Republican (GOP) 'Win' in US Senate

    The Grand Corporations Party, or the political party which serves large businesses that are funding it, continues to just focus on a mirage of a 'reform' rather than tackle the real issues where culprits include very large businesses such as Microsoft and Apple



  30. Microsoft-Armed Patent Troll MOSAID (Now Conversant) Wants to Sweep up More Patents for Litigation

    Reports about patent trolls and scope of patents serve to show what the foes of Free software are up to right now


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