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

05.13.11

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

2 Comments

  1. Needs Sunlight said,

    May 14, 2011 at 7:01 am

    Gravatar

    “bountry” ??

    Dr. Roy Schestowitz Reply:

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

What Else is New


  1. Links 23/5/2016: GNOME 3.22, Calculate Linux 15.17

    Links for the day



  2. 'Celebrity' Patent Trolls and the Elusive Battle Against Patent Trolls (or Eastern District of Texas Courts) Rather Than Software Patents

    Some of last week's more important reports, which serve to demonstrate how the system is attempting to tackle a side-effect of software patents rather than the patents themselves (their irrational scope)



  3. The Circus of Patent 'Reporting' (by Omission) on the Subject of Software Patents in the US and USPTO Bias

    look at some of the latest oddities in the US patent system and much of the reporting about software patenting (more or less monopolised by those who profit from it, not harmed by it)



  4. IP3 Demonstrates That Today's Patent Systems Devolve Into a Conglomerates' Game, Won't Protect the Mythical Small Inventor

    Multinational corporations bring together their shared interests and steer the increasingly-inseparable patent systems according to their needs and goals, but has anyone even noticed?



  5. Disrupting Battistelli's Distracting Propaganda: EPO Staff to Protest Again in About a Fortnight

    The overly extravagant (waste of money) EPO European Inventor Award will have to compete for media attention with thousands of EPO staff (in all EPO sites) marching in the streets to protest against the EPO's abuses



  6. Corrupting Democracy? Growing Frequency of Rumours That the EPO's President Battistelli is 'Buying' Votes of Small Member States

    Several sources suggest that rather than appease the Administrative Council by taking corrective action Battistelli and his notorious 'circle' now work hard to remove opposition from the Administrative Council, especially where this is easier a task to accomplish (politically or economically)



  7. [ES] Los Mitos de la EPO ‘Calidad’ de Patentes y de ‘Creación’ de Patentes: Basados en Ventas de Cafe y Trauma

    La carrera hacia el fondo, o la ridícula asumpción de Battistelli de que otorgar más y más patentenes más rápidamente (e.g. usando PACE) sería beneficióso a largo término, puede guíar al final colapse del valor de la EPO y la pérdida de su lárgamente ganada reputación a nivel mundial



  8. Links 22/5/2016: Systemd 230, Debian Installer Alpha 6

    Links for the day



  9. EPO Patent 'Quality' and 'Patent Creation' Myth: Capsule-Based Coffee Sales and Trauma

    The race to the bottom, or Battistelli's ludicrous assumption that granting more and more patents faster (e.g. using PACE) would be beneficial in the long run, may lead to the ultimate collapse of the EPO's value and demise of its long-earned reputation worldwide



  10. Guest Post: How Vista 10 Imposes Itself on Users of Windows

    A reader's experience being nagged by Microsoft, as documented and explained by this reader



  11. [ES] El Notorio Tirano de la EPO, Benoît Battistelli, Se Reune Con Otros Tiranos, Reportes de Que ‘Limpia’ el Consejo Administrativo

    El régimen de Battistelli, talvez la fuente de verguénza más grande, alegadamente está “cortejándo países pequeños/corruptos para asegurárse de que los delegados que votarón contra él serán remplazados”



  12. [ES] Comentadores Anónimos Debaten Si la EPO de Battistelli Puede Revocar las Pensiones de Empleados Que Se Atreveen — GASP — a Buscar Empleo Alternativo

    Una mirada a las causas de desesperación e imensa presión en la EPO, donde las pensiónes pueden ser cortadas como medio de represália y la gente puede ser negada empleo aún después de dejar la Oficina Europea de Patentes (EPO)



  13. [ES] Otra Casi Vacía Presentación de la EPO en La Hague

    El propagandístico “estudio social” de Battistelli (básicamente un montón de engañosas afirmacionesdisfrazadas como ‘investigación’) ayuda a demostrar que los empleados de la EPO no tiene absolutamente fe en la gerencia



  14. Links 21/5/2016: Manjaro Linux RC, Flock 2016 Schedule

    Links for the day



  15. USPTO Ignores a Lot of Cases Against Software Patents to Justify Resumption of More Software Patenting

    The US patent system (USPTO) is so obsessed with granting as many patents as possible -- even bogus patents in areas that are no longer patent-eligible -- that its guidelines are further perturbed and whose appeals board is massively overwhelmed/overworked/understaffed



  16. Notorious EPO Tyrant, Benoît Battistelli, Meets Other Tyrants, Reportedly 'Cleanses' the Administrative Council

    The Battistelli regime, perhaps the biggest embarrassment of Europe right now, is allegedly "courting smaller countries to make sure the delegates who voted against him will be replaced"



  17. Links 20/5/2016: Purism Tablet, ChromeOS PCs Outsell 'Mac'-Branded PCs

    Links for the day



  18. CAFC Rules Against Software Patents But Witness With Horror the Silence From Patent Lawyers (Bias by Omission)

    In an effort to protect software patents in the United States, where these patents came from in the first place (and continue to spread from), patent lawyers pretend not to see cases where software patents get invalidated and instead focus on the rare exception



  19. It's All Just Artificial Distractions From EPO Management, 'Yellow' Union Comes Under Scrutiny Again

    What's happening inside the EPO these days and what meaningless rubbish the management of the EPO would rather have the media obsessed with



  20. Anonymous Commenters Debate Whether Battistelli's EPO Can Revoke Pensions of Dismissed Employees Who Dare -- GASP -- Find Alternative Employment

    A look at causes for desperation and immense pressure at the EPO, where pensions can be cut as means of reprisal and people can be denied employment even after they leave the European Patent Office (EPO)



  21. Australian Productivity Commission's Research Calls for Ban on Software Patents, Davies Collison Cave Calls for Complaints Against This Finding

    As the push against software patents grows in Australia, much to the chagrin of Australian software developers, Davies Collison Cave (patent law firm) publicly calls for opposition, calling its side "the truth" and pretending it represents "Australian innovators."



  22. Links 19/5/2016: Wine-Staging 1.9.10, Android N

    Links for the day



  23. Another Almost Empty EPO Presentation at The Hague

    The propagandistic "social study" of Battistelli (basically a lot of misleading claims disguised as 'research') helps demonstrate that EPO staff has absolutely no faith in the management



  24. [ES] La UPC un Ataque No Sólo Contra el Público Europeo Pero También Contra los Empleados de la EPO

    El despido de los empleados actuales de la EPO y el remplazo del interés público por intereses corpórativos (intereses de grandes compañíás del otro lado del charco) es todo lo que la UPC realmente es



  25. Links 18/5/2016: ReactOS 0.4.1, KWayland in KDE Frameworks

    Links for the day



  26. Endless Harmonious Self-Congratulatory Praises From Self-Serving Law Firms in the Wake of Just One Pro-Software Patents Decision From CAFC

    The court that brought software patents to the United States has defended a software patent and patent lawyers want us to believe that this is an historic game-changing decision (potentially to be appealed by Microsoft, if Microsoft actually wanted to fight software patents)



  27. If Battistelli Stayed and UPC Became a Reality, Patent Quality at the EPO Would Get a Lot Worse

    The vision that Team Battistelli has for the EPO is an ENA-inspired neoliberal and corporatist vision that would bring the legitimacy of the system down to zero and the European economy to the brink of collapse



  28. Two Months Down the Line, Battistelli Has Done None of What the Administrative Council Told Him to Do; He Should be Sacked Next Month

    An informal but timely progress report shows that Battistelli has made no progress whatsoever and all the injustices remain in tact, in spite of the warnings from the Administrative Council (mid March)



  29. [ES] Al Abundar Patentes de Sofware, Free/Open Source Software Pierde, Mientras que los Abogados de Patentes Ganan Más que Nadie

    Impuestos al desarrollo — o el costo relaciónado con el caos de patentes — rápidamente creciéndo cada vez mas y en el caso del Free software rápidamente excede las ganancias por distribución, que usualmente es $0



  30. [ES] La UPC es Guerra de Classes (los Ricos contra Todo el Mundo), He Aqu el Porque de la Militarización de la Oficina Europea de Patentes

    En cara a la resistencia a contróversiales y frecuéntemente antidemocráticas, ilegales y posiblemente actos críminales o felonías, los chácales de Battistelli recurren a ataques de decapitación (atacando o torturando figuras claves) y armándose alrededor de sí misma — todo esto mientras falsamente acusando otros de portar armas o recurrir a la agresión


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