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


Exclusive: Microsoft Patent Schemes Nobody Knows About

Posted in Apple, Microsoft, Patents at 7:52 am by Dr. Roy Schestowitz

Nathan Myhrvold

Summary: Information about Altitude Capital Partners (patent troll), Intellectual Ventures, Microsoft, and Apple (who fund Intellectual Ventures to launch legal attacks using small patent trolls)

EARLIER this year (last month to be more precise) we were contacted by a nice gentleman who had interacted with Bill Gates and his mate Nathan, the world’s biggest patent troll. He provided insights. Prior posts about it contained just the gist. Today we will elaborate on it.

It all began when a post from Rick the Patent TrollTracker got the attention of someone who had been approached by the named troll. “I don’t have any info about “Altitude Capital Partners” being linked to Microsoft,” he explained, “that is why I wrote to ask you if you did. Altitude approached me within the past 2 weeks asking to represent me because my patent portfolio covers basic technologies. I have no idea how they found out about me, though.”

It certainly would be valuable to have someone help us understand what Altitude Capital Partners is really doing because its homepage says very little. This is fascinating as a lot of what the gentleman says helps expose anti-competitive conduct that we have been researching for years, e.g. about Intellectual Ventures, which reportedly uses over 1,000 satellite companies to do its manipulation for Nathan and Bill, the company’s key financier.

Going back to the smaller troll in question, it is hard to determine just what it really does and whether it serves another. This minimal site it maintains says a little more than sites of patent trolls, which are usually LLCs registered with some patents for waging wars on behalf of other companies. Rick the Patent TrollTracker, who used to work for Cisco, was aware of what Altitude Capital Partners was up to, but he got silenced by those whom he exposed, using SLAPP-type action and a scary bounty from the father of patent trolling. Cisco had been under siege from many patent trolls, including Intellectual Ventures. Even though Intellectual Ventures finally filed a lawsuit last year, it usually uses other companies to launch lawsuits against those who are unwilling to pay Nathan and Bill. A company the size of Cisco would typically needs to pay hundreds of millions of dollars to keep Intellectual Ventures at bay (otherwise, it passes patents around to fuel patent battles). A broad patent would be an asset for this reason. It affects many companies. Cisco has just released new information about its upcoming Linux-powered tablet. Gates et al. will probably try to tax that if they haven’t already.

One should add that this site’s (Techrights) interest in this area is motivated by lawsuits that Microsoft is launching against GNU/Linux (and Android, which is Linux-powered). These also involve companies or patent trolls which Microsoft appears to be incentivising to do what they do. The SCO case is an older example of copyrights being used to wage similar battles. This battle is broader than most people realise because Microsoft is losing the battle on newer form factors. Windows sales are declining because Apple and Android are growing like mushrooms in the new space of smartphones, sub-notebooks, and tablets. Last month Barnes and Noble (B&N) put out there documents which show how Microsoft uses patents to distort the market and impede the competition in e-Readers and other such devices, which are basically too underpowered to run Microsoft’s Windows.

Our source suggests that Microsoft has been pursuing this type of strategy for quite some as “between 1998-2001 Bill Gates became interested in things I was patenting,” he explained to us. “I wanted him to use them, actually. Except he didn’t want to acknowledge my work, and didn’t want to pay me even one penny. And it wasn’t about money, it was clearly about cheating people who create things he liked…in other words it was a rabid ego “thing”.”

Typical Gates megalomania and shameless self-promotion.

The “Surface” is an example of a product Microsoft wanted to axe before arrival, but reportedly, Gates’ ego prevented that from being axed. It became a money drain. In general, Gates became fascinated with patents a very long time after he had criticised them and to this date he is doing a lot of work promoting them and collecting them like trophies. His good friend Nathan is lobbying the government and trying to warp the software industry.

“Intellectual property is the next software,” Nathan Myhrvold said not so long ago. This is their vision.

“Bill Gates hired my lawyers,” explained our source, “Weil Gotshal & Manges, who subsequently kicked me out to “test tablets” for Microsoft. You can google search it and confirm that Weil Gotshal was doing that around 2001 or so. The thing that got Gates so interested in the tablet form factor was his seeing the designs to what is now the iPad and iPhone…back in 1998-2001!”

At the moment, Microsoft seems to be exploring ways of making money out of other people’s products. Increasingly it views itself as a licensing company because it cannot quite create something compelling enough. It missed the train. With the axing of Courier, in addition to reports about related patents surfacing, We can only imagine that there will be more stories like the B&N one.

“I was dazed and confused by what happened and went around looking for help of any kind,” our source recalls. “I ultimately ran to Larry Ellison & his buddy Steve Jobs in the hope that they…being Gates’ enemies, would invite me to join them in creating a new tablet device…because I believed Microsoft was about to steal the whole thing. Instead what happened was Steve Jobs stole it, and because of Bill gates’ ego…he felt that only he had anything worth doing… Microsoft ended up stalled…making tablets with styluses and which were effectively chopped up laptop computers shoe-horned into tablet shape. Even as late as 2010 Steve Ballmer was telling people at the London School of Economics that people want tablets with styluses and keyboards — that despite the way the iPhone already demonstrated people’s willingness to use their finger.”

This insistence from Microsoft was foolish as it kept everything heavy and expensive. There was also none of the same promotion at the time, not to mention suitable hardware for 3-D effects and lightness. But as rightly pointed out, Larry Ellison and Steve Jobs have this ego game with Gates and recently Ellison decided to go after Android with an outrageous lawsuit over Dalvik. More recently than that we saw Microsoft, Apple and Oracle creating and entering a patent pool from Novell’s patents (Novell was essentially sold last month). They called it CPTN and it was designed by Microsoft to help exclude or coerce until the US DOJ and the German anti-cartel office got involved. All of these companies increasingly use patents to ensure that they stay in power and the more they can accumulate, the better for them. Actually, Oracle once spoke against software patents, but things have changed since then.

Our guess is that in the eyes of such companies patents like those on tablet form factors are becoming a bargaining card that can help limit functionality of a competitor’s product. It is not uncommon for a company to try and get hold of patents using a third party. The OIN did that last year. And actually, B&N did say that Microsoft tried using patents to merely cripple its products. How does that promote innovation? This is yet more evidence supporting the claim that the patent system excludes small players, further empowered those who can amass many patents along with their patent trolls. If a small company sues a large one, it gets hit by an artillery of other patents. It’s an imbalanced game.

The source of the news was by no means trying to help the major companies, which merely approached him. “In the beginning I even went to non-profit organizations like Mozilla and the EFF and the W3C seeking to donate my patents to them,” he recalls, “but they all treated me like dirt.”

Mozilla, the EFF, and the W3C do not like patents. Mozilla openly denounces them, the EFF has a patent-busting project, and Tim Berners-Lee told me personally that he is adamant in his approach that the Web should have no patents in/on it. I think that the OIN would have been better to approach.

“Bill Gates’ friend Nathan Myhrvold was trying to buy my patents for years but later he decided to pay any lawyers I went to, to pretend they wanted to help me, when in reality they were just stalling for time, and trying to keep me from suing anybody,” we were told. “Nokia was interested in acquiring rights from me in August 2010, and Nokia was extremely nice and polite…but then Gates “installed” his man Stephen Elop as CEO of Nokia and gave Nokia some deal worth billions (according to the news), and Nokia suddenly didn’t want to have anything to do with me. And who are Nokia’s lawyers? “Conveniently” friends of the lawyers who filed my patents for me in the 1990′s which Apple copied to create the iPhone, and which represent Apple, MSFT and Nokia, and Nathan Myhrvold.”

Nokia was essentially taken over by Microsoft using an act of entryism. Recently, a senior figure at Nokia said: “This isn’t a deal between Nokia and Microsoft, this is a Microsoft take over.”

Nokia has already expressed intention to use patents as a tool that further affects the market and with Elop in charge we can only imagine (with concern) what they might do next. Elop has just remarked (in Twitter) about the Skype acquisition. Reading his tweet would give the impression that he is still working for Microsoft.

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


  1. Needs Sunlight said,

    May 14, 2011 at 7:01 am


    “bountry” ??

    Dr. Roy Schestowitz Reply:

    Bounty (typo). I typed that at the gym between sets, so no spellchecker…

What Else is New

  1. Leaked: Budget and Finance Committee Outcomes That Jeopardise What's Left of the EPO's Future

    A look at the latest reckless step from the Budget and Finance Committee of the Administrative Council (chaired by Battistelli's pet chinchilla), which marginalises yet more oversight or a branch which facilitates patent quality control (thereby concealing the effect of Battistelli's ruinous sausage factory mentality)

  2. Links 27/10/2016: Major Changes in Unity 8, Nextcloud Targets Phones

    Links for the day

  3. 'Balkan Express' Teaser: EPO's Željko Topić, Kuterovac, Campinos, Gurry, Battistelli and the DKPTO (Kongstad)

    Various photos of Topić and Kuterovac. Some more photos with other IP "luminaries" such as Campinos of the EUIPO and Gurry of the WIPO.

  4. The United States Pressures India to Broaden Patent Scope and Other Monopolies

    The envoy of the US is trying to tell India how to run the country (stricter laws regarding copyrights, trademarks, and patents), as a condition for foreign investment by multinational corporations

  5. Budget and Finance Committee of the Administrative Council (EPO) Confirms Exile of the Boards of Appeal

    Crushing of highly-skilled staff, propaganda in the form of new press releases, and recruitment attempts that won't succeed because the world now knows what goes on inside the European Patent Office

  6. Links 26/10/2016: “softWaves” in Debian 9, Rust in GNOME

    Links for the day

  7. Leaked: EPO's Vice-President Willie Minnoye Saying the Unsayable, Then Threatening Anyone Who Keeps Record (Evidence) of It

    E-mail that would leave Vice-President Willie Minnoye bashful, as it helps show not only bad policy but also attempts at suppression of discussion about it

  8. Puff Pieces of the EPO-IPO (EPO+EUIPO) Have Begun to Appear Amid New Evidence of Brain Drain, Lowered Standards

    The grim vision of the EPO which is losing all its talent (over time), becomes more like a production line (quality does not matter), and produces propaganda for "media positioning" (or "placements") -- all under the guise of 'studies'

  9. Leaked: Minutes From the Administrative Council of the EPO Regarding the 'Reform' (Exile) of the Boards of Appeal

    Details of the relatively secret proceedings back in June (belatedly released only a short while ago), carefully abbreviated to demonstrate which delegations helped Battistelli crush the Boards of Appeal and which ones insisted on maintaining the status quo, as per the EPC

  10. No Promising Future For the EPO Under Battistelli (If Any Future At All)

    Pessimism becomes realism at the European Patent Office as units are being torn apart, patent quality discarded, "unified" patent courts dreamed of (more patent lawsuits, higher damages), and EUIPO (EU-associated, unlike Eponia) gets closer to the EPO

  11. Leaked Minutes From the EPO Reveal That Battistelli is Detached From Reality and Blames Everything on “Union Officials”

    Minutes of the Administrative Council's meeting reveal some truly bizarre rants from Battistelli, who simply refuses to accept that the European Patent Office is burning (without a future direction, only burnout and brain drain) under his poor and abusive leadership

  12. Tata/TCS is Still Pushing for Software Patents in India

    The obnoxious company that is promoting Microsoft and software patents in a country that needs neither makes the headlines again (Financial Express)

  13. Links 25/10/2016: Rackspace's Praise of FOSS, Chain Chooses the GPL(v3)

    Links for the day

  14. Links 24/10/2016: Linux 4.9 RC2

    Links for the day

  15. Battistelli Plans to Expand the Social [sic] 'Study' (Then 'Conference') Propaganda Until Next Month, Under the 'Workshop' Umbrella

    Milking his shameless propaganda (paid-for 'studies'), Battistelli wants to rewrite the record by all means possible, then pretend that EPO staff participates in it

  16. EPO and EUIPO Join Hands to Release Propaganda (for European Media to Parrot) Some Time Tomorrow

    EPO and EUIPO in collaboration for the promotion of the notion that they are both necessary (and reinforced speculations about growing overlap between them)

  17. UPC Preparatory Committee Puts the Brakes on UPC Amid Brexit and Growing Uncertainty

    The Unified Patent Court (UPC) preparatory committee recognises that the UPC isn't going anywhere (any time soon) and false job advertisements -- or advertisements for jobs that will never exist -- are withdrawn

  18. Updates Regarding EPO and BoAC: Unrest and Injustice Carry on

    Some of the latest information which is publicly and privately available to us, in particular regarding the case of a suspended judge which represents unprecedented erosion of the appeal boards' independence (and hence lack of justice in the Organisation)

  19. EPO and the “Iberian Connection”: Patricia García-Escudero Márquez - Battistelli's Pet Chinchilla on the Boards of Appeal Committee?

    Why the Boards of Appeal Committee has begun showing prominent signs that it is anything but independent and capable of standing up to Battistelli (or his circle at the Office, which includes the “Iberian Connection")

  20. Links 23/10/2016: Alcatel's New Android Smartphones, Another Honorary Doctorate for Stallman

    Links for the day

  21. Open Letter Exposing the Farce Which Was Battistelli's 'Social Conference' Coinciding With Further (New) Attacks on EPO Staff Representatives

    A detailed letter reveals legitimate concerns expressed by staff representatives at the EPO ahead of the so-called Social Conference, in which we have highlighted severe factual flaws

  22. Translation of Latest Rant From French MP Philip Cordery About Benoît Battistelli's Abuses at the EPO

    Philip Cordery crosses horns with Benoît Battistelli, who has become a source of embarrassment for France with his autocratic tendencies and misguided policies that rapidly ruin the European Patent Office (EPO)

  23. Battistelli-Commissioned PwC ‘Study’: Leaked Document Shows PwC's Dishonesty and Misrepresentation of EPO Staff

    An in-depth analysis (but not comprehensive, just preliminary) of the so-called 'study' from PwC, which basically did what it was paid for (pay to say)

  24. Links 22/10/2016: Deus Ex for GNU/Linux, Global DDoS (DNS)

    Links for the day

  25. Battistelli-Commissioned PwC ‘Study’: Survey Comparison Shows Serious Deterioration and Efforts by PwC to Disguise the Truth

    The latest output from PwC turns out to be even worse than initially thought, indicating that not only did it find a degradation in the EPO but also attempted to hide/obscure it

  26. EPO Teaser - The "Iberian Connection" - Some Photos of García-Escudero and His Royal/Government Connections

    A look at the undeniably close connections between Mr. García-Escudero and the most powerful people in Spain

  27. Disruption to Site's Service

    A technical note about why Techrights has not been publishing many articles recently

  28. Links 21/10/2016: MPV 0.21, Mad Max for GNU/Linux

    Links for the day

  29. EPO Caricature: Battistelli's High Five

    Another cartoon about the sad state of the EPO

  30. Battistelli Ruins Not Only the EPO But Also the Whole of Europe By Ushering in Software Patents That Patent Trolls Love So Much

    Battistelli's bad leadership at the EPO threatens to bring to Europe all the ills and menaces of the patent system in the United States


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