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

01.18.18

Microsoft, Masking/Hiding Itself Behind Patent Trolls, is Still Engaging in Patent Extortion

Posted in GNU/Linux, Microsoft, Patents at 7:34 am by Dr. Roy Schestowitz

Sleight of hand, but extortion is still extortion

Venice masks

Summary: A review of Microsoft’s ugly tactics, which involve coercion and extortion (for businesses to move to Azure and/or for OEMs to preload Microsoft software) while Microsoft-connected patent trolls help hide the “enforcement” element in this whole racket

THE ‘new’ Microsoft is no different from the company we wrote about back in the “Boycott Novell” days; only the marketing/PR has improved. The patent strategy is still similar; we just don’t see Ballmer’s face anymore. He was at least honest about Microsoft’s views about GNU/Linux. Nadella just shamelessly lies about those things.

“The patent strategy is still similar; we just don’t see Ballmer’s face anymore. He was at least honest about Microsoft’s views about GNU/Linux. Nadella just shamelessly lies about it.”Extortion using patents doesn’t work as most people assume; people tend to believe that patents are being used only when there’s a lawsuit. But no… that’s not how it usually works. As United for Patent Reform has just put it: “A report by @marklemley @kentrichardson @elosf found a silent tax on #innovation: 70% of #patent-related threats didn’t result in litigation, meaning the costs of over-broad litigation never go to court.”

For those who have patience and time (the Internet discourages reading of long articles), here is the paper from Professor Lemley, who is renowned for his strong views about patent aggression.

Abstract says:

How often do companies and individuals assert patents outside of litigation? No one knows for sure. The problem is that licensing negotiations and license deals that don’t result in litigation are almost invariably kept secret. The result is that patent litigation is like the proverbial tip of the iceberg – the observable piece sticking out of the water, but probably not all or even most of what there is. Various people have speculated that unlitigated (and therefore unobserved) assertions are a majority and probably as much as 90% of all patent enforcement.

We wanted to know how often companies were approached to take patent licenses without a lawsuit being filed. So we asked them. Using a simple survey, we got data from dozens of companies about how often they were sued, how often they were approached to take a license without being sued, and the characteristics of those licensing proposals. The result is the first real look at what goes on beneath the surface of patent enforcement.

We found that while patent litigation does not reflect everything that is going on, there was less unlitigated – and therefore unseen – patent enforcement than some of us had thought. Roughly one-third of all patent licensing efforts among our survey respondents end in litigation, significantly less than the 10% some had predicted. And, for the majority of respondents, about one half of the demands end in litigation. Our results allow us to get a handle on the actual size of the patent enforcement business and to try to estimate the total cost of responding to enforcement efforts. We offer some ballpark estimates of the cost of responding to patent assertions in Part III.

Our survey respondents are a significant segment of the economy, but they are far from all of it. And they differ in certain ways from companies as a whole. We hope to be able to expand the universe of respondents in a later round of surveys. In Part I we explain what we did. In Part II we explain what we found. And in Part III we consider some implications for business and public policy if we extrapolate our limited results to the broader economy. Under plausible assumptions, responding to patent assertions costs defendants between $80 and $100 billion per year.

This brings us to Microsoft; Microsoft not only pressures companies to pay money by threatening to sue them using patents; Microsoft is often siccing patent trolls (which it arms) on companies that refuse to play along. That’s racketeering; it’s like the Mafia burning down houses and businesses of those who refuse to pay ‘protection’ money. That’s just how extortion works, but Microsoft burns the victims’ money (legal fees) rather than the actual businesses (although they too will go up in flames if legal fees result in bankruptcy).

“Microsoft not only pressures companies to pay money by threatening to sue them using patents; Microsoft is often siccing patent trolls (which it arms) on companies that refuse to play along.”In the “Boycott Novell” days Microsoft was threatening companies that did not buy (i.e. pay Microsoft for) SUSE. SLES was the only ‘Microsoft-authorised’ distribution of GNU/Linux at one point. And now, instead of SLES/SLED what we have is Azure. Microsoft threatens those who do not pay Azure 'rents' that patent trolls (which Microsoft passes patents to) might come along and destroy their business. It’s the “cloud” equivalent of the Novell plot. IAM has just published this self-promotional ‘report’ that says “litigation involving cloud technologies has increased by 700%” (well, they just made up the term “cloud” and now everything that already existed is called “cloud”). Here is what they said, linking to an older ‘article’ (promotion) of theirs:

A recent study revealed that US patent litigation involving cloud technologies has increased by 700% over the past four years (for further information please see “Cloud computing patent litigation on the rise”)

Microsoft relies on such ‘articles’ to sell fear and to attract businesses to Azure (out of sheer fear). At the same time, Microsoft is lobbying for software patents. Less than a day ago, for example, the BSA (using “Enterprise Innovation” as a platform) wrote in its capacity as a Microsoft front group: “Patent protections: Governments should have non-discriminatory protection for software patents.”

“In the “Boycott Novell” days Microsoft was threatening companies that did not buy (i.e. pay Microsoft for) SUSE.”Well, actually it seems like only China offers that now. But Microsoft would like to change that. The extortion heavily relies on it.

Lost in the midst of Microsoft puff pieces about patents (see one of the latest examples) is this original announcement from Microsoft about extending the reach of the ‘protection’ racket.

“Microsoft relies on such ‘articles’ to sell fear and to attract businesses to Azure (out of sheer fear).”“Excited to announce that we are extending the Microsoft Azure IP Advantage #patent protection program to our Azure Stack customers,” wrote the person in charge of it. Yes, Microsoft is very “excited” about patent extortion against GNU/Linux. They just say it with a smile and euphemistically call it “Azure IP Advantage”. This is already being covered by longtime Microsoft boosters. Kurt Mackie, for instance, said that the “”springing license” reference means that the patents that Microsoft may transfer to other companies under this program can’t be used to make IP claims against other Azure customers.”

As Microsoft also controls some of the trolls, it can help determine who gets sued. The potential for abuse is vast.

“Microsoft paid a lot of money for the Linux Foundation to not intervene and simply pretend that “Microsoft loves Linux” (while it’s taxing it and attacking it using patents).”Don’t expect Red Hat or Canonical or even the Linux Foundation to say anything about it. The Linux Foundation is far too busy sucking up to Microsoft this week, having received Microsoft cash for silence and complicity. Even when Microsoft attacks Linux with patents the Linux Foundation will say nothing at all because these attacks often come from proxies, just as the OIN’s CEO warned us a long time ago. One such proxy is Finjan. Microsoft patent trolls like Finjan are held up as good examples at Watchtroll this week not because they create anything but because they’re targeting Microsoft’s rivals (every company except Microsoft, which supported Finjan since its early days).

The latest case, Finjan v Blue Coat Systems, is a case that we wrote about on Monday. Banner & Witcoff’s Aseet Patel and Peter Nigrelli have just said the following about the case, citing a Microsoft case in favour of software patents (Enfish):

There are several takeaways from Finjan. xi Notably, building on its precedent in Enfish, the Federal Circuit has reaffirmed that purely software-based inventions that do no interact with the tangible world remain patent-eligible subject matter. Moreover, the Finjan court’s reasoning reiterates the importance of drafting a patent specification that showcases and contrasts inadequacies of prior art solutions. Finally, Finjan underscores the continuing importance of claim construction in obtaining a favorable patent-eligibility holding—even more so when the claimed method only recites three steps.

Finjan’s trolling being used to support and promote the software patents agenda? Surely convenient for Microsoft. We expect to hear a lot more about this troll’s lawsuits and hear nothing at all from the Linux Foundation. Microsoft paid a lot of money for the Linux Foundation to not intervene and simply pretend that “Microsoft loves Linux” (while it’s taxing it and attacking it using patents).

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 19/12/2018: VirtualBox 6.0, RawTherapee 5.5, Mir 1.1.0, LibreOffice 6.1.4 Released

    Links for the day



  2. Links 16/12/2018: DXVK 0.94, WordPress 5.0.1, Fuchsia SDK

    Links for the day



  3. Immunity of the European Patent Office Has Helped Shield Dangerous Thugs From Justice

    The Topić case is set to resume in Croatia as Topić runs out of diplomatic immunity he long enjoyed (and exploited) at the European Patent Office



  4. Patent Law Firms' War on Facts and Constant Lying About Unitary Patent

    The Unitary Patent or Unified Patent Court (UPC) has failed; this, however, is no excuse for constantly lying and it's a problem more people ought to speak about because it stigmatises lawyers as self-serving liars, not a legitimate source of honest legal advice



  5. EPO Chief Economist Yann Ménière Keynote Speaker at Patent Trolls-Funded Event Set Up by the Patent Trolls' Lobby

    The EPO continues to align itself not only with the interests of patent trolls (even those from another continent) but also with the trolls themselves, causing great embarrassment and confusion over the goals/motivations of the Office



  6. The European Patent Organisation (EPO) Loses Legitimacy If (or When) Christoph Ernst Becomes Subservient to António Campinos

    The structural deficiencies of the EPO, where separation of powers does not quite exist, is further pronounced by the imminent role of Christoph Ernst, who gets 'demoted' from pseudo-boss of Campinos to a mere assistant of his



  7. Links 15/12/2018: Cockpit 184, Vivaldi 2.2, Krita 4.1.7 Released

    Links for the day



  8. Links 13/12/2018: IRS Migration, GNOME 3.31.3 Released

    Links for the day



  9. Patent Trial and Appeal Board (PTAB) Decisions Still Uncontroversial Unless One Asks the Patent Maximalists

    Contrary to what the Director of the U.S. Patent and Trademark Office has claimed, PTAB is liked by companies that actually create things and opposition to PTAB comes from power brokers of the Koch brothers, law firms, and trolls (including those who foolishly repeat them)



  10. Latest Talk From IBM’s Manny Schecter Shows That IBM Hasn't Changed and After the Red Hat Takeover It'll Continue to Promote Software Patents

    IBM's hardheaded attitude and patent aggression unaffected by its strategic acquisition of a company that at least claimed to oppose software patents (whilst at the same time pursuing them)



  11. The European Patent Troll Wants as Much Litigation as Possible

    Patent quality is a concept no longer recognisable at the European Patent Office; all that the management understands is speed and PACE, which it conflates with quality in order to register as much cash as possible before the whole thing comes crashing down (bubbles always implode at the end)



  12. António Campinos Turns His 'Boss' Into His Lapdog, Just Like Battistelli and Kongstad

    The European Patent Organisation expects us to believe that Josef Kratochvíl will keep the Office honest while his predecessor, the German who failed to do anything about Battistelli's abuses, becomes officially subservient to António Campinos



  13. Links 12/12/2018: Mesa 18.3.1 Released, CNCF Takes Control of etcd

    Links for the day



  14. EPO Trust, Leadership and Commitment

    "Trust, leadership and commitment" is the latest publication from EPO insiders, who in the absence of free speech and freedom of association for the union/representation are an essential spotlight on EPO abuses



  15. Links 11/12/2018: Tails 3.11, New Firefox, FreeBSD 12.0

    Links for the day



  16. Number of Filings at the Patent Trial and Appeal Board (PTAB) Highest in Almost Two Years

    Patent Trial and Appeal Board (PTAB) inter partes reviews (IPRs), which [cref 113718 typically invalidate software patents by citing 35 U.S.C. § 101], are withstanding negative rhetoric and hostility from Iancu



  17. With 'Brexit' in a Lot of Headlines Team UPC Takes the Unitary Patent Lies up a Notch

    Misinformation continues to run like water; people are expected to believe that the UPC, an inherently EU-centric construct, can magically come to fruition in the UK (or in Europe as a whole)



  18. The EPO Not Only Abandoned the EPC But Also the Biotech Directive

    Last week's decision (T1063/18, EPO Technical Board of Appeal 3.3.04) shows that there's still a long way to go before the Office and the Organisation as a whole fulfil their obligation to those who birthed the Organisation in the first placeLast week's decision (T1063/18, EPO Technical Board of Appeal 3.3.04) shows that there's still a long way to go before the Office and the Organisation as a whole fulfil their obligation to those who birthed the Organisation in the first place



  19. Patents on Abstract Things and on Life (or Patents Which Threaten Lives) Merely Threaten the Very Legitimacy of Patent Offices, Including EPO

    Patent Hubris and maximalism pose a threat or a major risk to the very system that they claim to be championing; by reducing the barrier to entry (i.e. introducing low-quality or socially detrimental patents) they merely embolden ardent critics who demand patent systems as a whole be abolished; the EPO is nowadays a leading example of it



  20. Links 10/12/2018: Linux 4.20 RC6 and Git 2.20

    Links for the day



  21. US Courts Make the United States' Patent System Sane Again

    35 U.S.C. § 101 (Section 101), the Patent Trial and Appeal Board (PTAB) and other factors are making the patent system in the US a lot more sane



  22. Today's USPTO Grants a Lot of Fake Patents, Software Patents That Courts Would Invalidate

    The 35 U.S.C. § 101 effect is very much real; patents on abstract/nonphysical ideas get invalidated en masse (in courts/PTAB) and Director Andrei Iancu refuses to pay attention as if he's above the law and court rulings don't apply to him



  23. A Month After Microsoft Claimed Patent 'Truce' Its Patent Trolls Keep Attacking Microsoft's Rivals

    Microsoft's legal department relies on its vultures (to whom it passes money and patents) to sue its rivals; but other than that, Microsoft is a wonderful company!



  24. Good News: US Supreme Court Rejects Efforts to Revisit Alice, Most Software Patents to Remain Worthless

    35 U.S.C. § 101 will likely remain in tact for a long time to come; courts have come to grips with the status quo, as even the Federal Circuit approves the large majority of invalidations by the Patent Trial and Appeal Board’s (PTAB) panels, initiated by inter partes reviews (IPRs)



  25. Florian Müller's Article About SEPs and the EPO

    Report from the court in Munich, where the EPO is based



  26. EPO Vice-President Željko Topić in New Article About Corruption in Croatia

    The Croatian newspaper 7Dnevno has an outline of what Željko Topić has done in Croatia and in the EPO in Munich; it argues that this seriously erodes Croatia's national brand/identity



  27. The Quality of European Patents Continues to Deteriorate Under António Campinos and Software Patents Are Advocated Every Day

    The EPC in the European Patent Office and 35 U.S.C. § 101 in the USPTO annul most if not all software patents; under António Campinos, however, software patents are being granted in Europe and the USPTO exploits similar tricks



  28. Team UPC is Still Spreading False Rumours in an Effort to Trick Politicians and Pressure Judges

    Abuses at the European Patent Office, political turmoil and an obvious legislative coup by a self-serving occupation that produces nothing have already doomed the Unitary Patent or Unified Patent Court (UPC); so now we deal with complete fabrications from Team UPC as they're struggling to make something out of nothing, anonymously smearing opposition to the UPC and anonymously making stuff up



  29. Patents on Life and Patents That Kill the Poor Would Only Delegitimise the European Patent Office

    After Mayo, Myriad and other SCOTUS cases (the basis of 35 U.S.C. § 101) the U.S. Patent and Trademark Office is reluctant to grant patents on life; the European Patent Office (EPO), however, goes in the opposite direction, even in defiance of the European Patent Convention



  30. EPO 'Untapped Potential'

    "Campinos is diligently looking for ways to further increase the Office’s output without increasing the number of examiners," says the EPO-FLIER team


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