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03.18.19

Microsoft and Its Patent Trolls Continue Their Patent War, Including the War on Linux

Posted in Asia, Deception, GNU/Linux, Microsoft, Patents at 2:46 am by Dr. Roy Schestowitz

There’s “truce” as long as Microsoft receives billions of dollars from its rivals for its “Linux patents”

A happy piranha

Summary: Microsoft is still preying on GNU/Linux using patents, notably software patents; it wants billions of dollars served on a silver platter in spite of claims that it reached a “truce” by joining the Open Invention Network and joining the LOT Network

THE parasites and predators are still at it. They’re exploiting software patents wrongly granted by the U.S. Patent and Trademark Office (USPTO) and they go after Microsoft’s rivals.

“Microsoft and Bill Gates are culpable as Intellectual Ventures effectively came from them and was bankrolled by them.”Days ago we saw the Intellectual Ventures-armed Dominion Harbor losing yet again. As it turned out, the Patent Trial and Appeal Board (PTAB) helped squash fake patents of this Microsoft-connected patent troll, owing to an inter partes review (IPR) which came from Unified Patents. In their own words (from Friday):

On March 13, 2019, the Patent Trial and Appeal Board (PTAB) issued a final written decision in Unified Patents Inc. v. First Class Monitoring, LLC IPR2017-01932 invalidating claims 1-5, 7, 9, 10 and 16-22 of U.S. Patent 6,014,089 owned and asserted by First Class Monitoring, LLC, a Dominion Harbor subsidiary and a well-known NPE. The ’089 patent, directed to transmitting data via conventional SMS messages over a control channel of a personal communications system transmission protocol, has been asserted against various financial services companies such as Citigroup, Bank of America, USAA, JP Morgan, and PNC.

Microsoft’s patent troll Intellectual Ventures, as it turns out yet again, is still engaging in blackmail in Eastern Texas. Even directly (not the likes of Dominion Harbor). As per the media (also Friday):

A jury in a federal district court in Texas has awarded a patent firm $1.5 million in a dispute with an Old Republic International Corp. unit in a patent infringement case.

The Tyler, Texas, jury on Wednesday decided in favor of Bellevue, Washington-based Intellectual Ventures II LLC, which buys, licenses and develops patents, in its dispute with Old Republic unit Sioux City, Nebraska-based Great West Casualty Co. in Intellectual Ventures II LLC v. Great West Casualty Co.

According to the January 2015 complaint in the case, Great West infringed one of Intellectual Ventures’ patents in connection with its online services and other systems.

Microsoft and Bill Gates are culpable as Intellectual Ventures effectively came from them and was bankrolled by them. To whose benefit?

“It seems clear that Microsoft has not changed. It was all PR, just smoke and mirrors for the cameras.”The Eastern District of Texas is also leveraged yet again against Taiwanese companies. Also from Texas: “Taiwanese Manufacturer of Smartphones Subject to Personal Jurisdiction in Texas in Patent Infringement Case Because of its Allegedly Purposeful Efforts to Serve the US Market Even Though all US Distribution was Orchestrated Independently…”

We already noted the other day that Microsoft goes after another Taiwanese company and it’s about a deal they signed 6 years ago, involving patents Microsoft claims Android and Chrome OS (GNU/Linux) to have infringed. It is starting to seem rather clear that Microsoft joined OIN only after extorting the lion’s share of OEMs that ship Linux-powered products. If they stop paying, Microsoft will sue them. Some “truce”, eh? Here is what Bloomberg wrote about this Microsoft patent extortion as recently as yesterday:

A lot has changed at Microsoft Corp. in the five years since Satya Nadella took over as chief executive officer. But sometimes the past comes roaring back, this time in the form of a patent suit that has gotten nasty.

Microsoft last week sued Hon Hai Precision Industry Co. for failing to pay royalties on intellectual property owned by Microsoft as part of a 2013 deal. Microsoft says Hon Hai, which is also known as Foxconn Technology Group, owes it missed payments and interest. In its filing with a California court, Microsoft alleges that for the past three years, Hon Hai hasn’t submitted the royalty reports required by the 2013 agreement and has refused to submit to an independent audit, which the agreement stipulated in the event of a dispute.

Foxconn’s billionaire chairman Terry Gou earlier this week accused Microsoft of a personal attack on him and his company, terming it a “wrongful” attempt to extract royalties on Android mobile operating software. While Hon Hai is the party named in the lawsuit, Hon Hai only makes iOS devices, and it is Foxconn’s Hong Kong-listed unit FIH Mobile Ltd. that makes Android phones for Huawei Technologies Co., Xiaomi Corp. and other vendors, according to Gou and FIH CEO Calvin Chih.

The amount in question is not significant, according to a person familiar with the dispute who asked not to be identified because the details aren’t public. But neither side wants to back down. Gou doesn’t want to pay and Microsoft wants to make a point that a deal is a deal.

So Satya Nadella is just another Steve Ballmer. His mask keeps falling off. There have been a lot more articles about this (we mentioned only a few of the earlier ones), including “Foxconn CEO: Microsoft’s real target is Huawei” (from the patent trolls’ lobby), “Foxconn lashes out at Microsoft over royalties” (Asian media), “Foxconn rejects Microsoft patent lawsuit” (British media) and “Foxconn rejected patent infringement lawsuit by Microsoft”. Here’s the side of the story which Western media does not like to tell, preceded by Microsoft’s usual nonsense:

Microsoft, in its statement, said that it had signed a contract with the Foxconn’s parent company Hon Hai in 2013 and the lawsuit is relevant to the audit and royalty reporting terms of that contract.

As Microsoft take serious approach towards fulfillment of its contractual obligations, so it also expects other companies to be following their contractual commitments seriously too; and Microsoft is working to resolve the disagreement with Hon Hai because of the importance of relationship with the company, Microsoft said in a statement.

Foxconn was previously operating as Hon Hai Precision Industry Co Ltd, and got the global attention after starting assembling iPhones for Apple.

[...]

At the news conference Gou said that Software companies not to bully the manufacturers, and questioned in a Facebook post earlier on Tuesday, why they would not claim from software using vendors to pay for patent royalties.

This is about software patents and about Linux-based operating systems. It seems clear that Microsoft has not changed. It was all PR, just smoke and mirrors for the cameras.

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