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11.28.14

Microsoft Found to Have Broken the Law in China (Tax Evasion), Just Like Practically Everywhere

Posted in Asia, Finance, Fraud, Microsoft at 5:53 am by Dr. Roy Schestowitz

Things must be grim when China is upholding the law whereas the West refuses to

HK, China

Summary: China is reportedly taking action against Microsoft’s notorious habit of tax evasion and fining the company well over $100 million

NOW THAT Microsoft has been found to be evading tax (a crime, but not one that executives of large corporations often go to jail for) and fined for it in a nation as large as China (just like in India half a decade ago, as well as in other places) is the US going to follow suit? Last week we showed that the IRS was on this case, so Microsoft began bullying the IRS (the vanity of corporations that control their government).

“”Remember when Microsoft China offices were raided (just earlier this year on numerous occasions and its patent extortion plot was targeted by the Chinese authorities? Well, it sure seems like China enforcing the law against massive criminals like Microsoft, setting a good precedent that US and Europe should follow. To quote the new report: “Microsoft has reportedly been issued with a charge for £87 million in back-taxes following an investigation into alleged tax evasion by the Chinese authorities.”

For those who still associate Microsoft with something other than crime and corruption, the news report above can serve as a valuable wake-up call.

11.26.14

US Government Finally Probes Microsoft Over Financial Fraud, Microsoft Then Bullies the Government With a Lawsuit

Posted in Fraud, Microsoft at 3:20 am by Dr. Roy Schestowitz

How DARE the government investigate us?

Law badge

Summary: Microsoft is finally being investigated — perhaps properly too — for its well-known tax abuses that have so far proved that Microsoft is “too big to jail”; Microsoft is suing the investigator, exerting its abusive power to discourage further investigation

MICROSOFT’S track record of dirty tricks [1, 2, 3, 4] is not the same as its track record of crime because one thing should have executives put in prison, whereas the other one cannot. Laws and ethics often intersect, but not always.

Microsoft with its above-the-law and criminal-minded attitude continues to surprise nobody. It turns out that it is suing the government of the US, like that banker in Spain who sued a judge for ruling against him for his crimes.

Microsoft’s tax abuses are well documented and many. Now that the IRS is finally going after a huge criminal, Microsoft, the monopolist responds with a defensive lawsuit — a strategy which often gets used to obscure the burden of guilt.

The Register deserves credit for this report that says: “The US Internal Revenue Service has been digging into Microsoft’s tax records from 2004 through 2009, and Redmond has filed a lawsuit against the government to find out why.” As Robert Pogson put it, Microsoft is “used to extorting money from users with audits [and] is now being probed by IRS for the way it shifts money around the globe to dodge taxes. It would be a big hit if IRS could prove the money was earned in Redmond, WA and they were due a decade of triple income-tax.”

It’s quite obvious why there is a probe to those of us who have watched and covered Microsoft for a number of years. We wrote dozens of articles on this very topic. IRS is merely doing its job in this case — not political witch-hunts but going after corporations with a bad track record. Microsoft was caught engaging in financial fraud, whereupon it bribed those who reported it to make the trouble go away, back in the 1990s. Nothing has changed since then, except perhaps the fact that many Microsoft executives entered the government (around the time of antitrust action).

10.06.14

Microsoft Reinforces Its Criminal Organisation Status by Bribing and Corrupting More Officials, Even in Europe

Posted in Europe, Fraud, Free/Libre Software, Microsoft at 2:53 pm by Dr. Roy Schestowitz

Some fingerprints

Summary: More criminal activity from Microsoft in Romania and a new TV programme that sheds light on Microsoft’s dirty assault on Free software in France

Bribes can be passed in all sorts of ways (e.g. promise of a job for a spouse, revolving doors, nepotism with verbal contracts). We have given many examples of Microsoft bribes over the years and last year it was reported that Microsoft had bribed officials in some of the largest countries in Asia and there was an investigation into it; maybe Microsoft bribed or somehow silenced the investigators too has we have not heard anything about it since then (some of these countries, however, have in the mean time shunned Microsoft). Some of the bribes we covered involved OOXML, a deeply monopolistic ’cause’ which had bribes given to officials in many countries including Romania, where Microsoft routinely uses infiltration as a strategy. For Microsoft to impose NSA back doors on the whole world takes some audacity and it shows that no strategy is beyond the acceptable; just watch how the NSA took a whole country (Syria) offline, cracked the network of a national technology giant (Huawei), and actively supported assassinations, even of US informants. No nation should ever even consider using Microsoft anywhere in its infrastructure, but what happens when bribed are introduced? Now we have yet another example of Microsoft corruption in Romania:

‘Microsoftgate’ scandal rocks Romania

The Romanian National Anti-corruption Directorate (DNA) is currently seeking approval to begin criminal investigations for office misconduct and corruption in an unfolding scandal the press has dubbed ‘MicrosoftGate’. EurActiv Romania reports.

The accusations are related to public procurement procedures for Microsoft licenses intended for schools. Ministers are suspected of having taken bribes for facilitating the conclusion and ensuring the continuation of an illegal contract with Fujitsu Siemens Computers for leasing Microsoft licenses at over-inflated prices.

The case started last summer after the Control Body of the Prime Minister was notified about the existence of a series of irregularities at the Ministry of Information Society and the Ministry of Education concerning the leasing of IT educational licenses.

Several former ministers, heads of the Secretariat-General of the government, as well as Microsoft officials, have been questioned by Romanian prosecutors. More recently, the Chief Prosecutor of the DNA requested that the general prosecutor of the office attached to the High Court of Cassation and Justice seek approval from the Senate, the Chamber of Deputies, the Romanian president and the European Parliament to start criminal investigations against nine former Romanian ministers.

Microsoft is not quite a “company” per se; it is almost like a crime syndicate that uses rogue (tainted) contracts for revenue and bribes officials for them. A government delegate once compared Microsoft's methods to “Scientology cult” and this new TV programming from France shows just how far Microsoft “lobbying” goes.

Thanks to the working group transcripts of April we managed to get an automated translation too English. Transcript below:

Journalist : France today begins its digital. So we have to buy hardware: tablets, computers, interactive whiteboards, but also virtually non-existent in the hexagon educational software. The British market, however, is overflowing already. We are in London, BETT, the show for educational technology. Everyone from digital to school has given them appointment.

English students in uniform, singing around shelves.

Journalist : We find Mrs. Becchetti-Bizot, the new head of digital in Education.

Speaker : I present the company Education City.

Journalist : It came out what could soon equip our schools.

Jamie Southerington, commercial Education City : Let me show you what we can offer in French. We have activities for students of three years. If you have an interactive whiteboard in your classroom, it was the software that allows children to learn the alphabet by singing. Well, just press here.

Catherine Becchetti-Bizot, responsible for the direction for the educational digital : I am very surprised by the richness and diversity of what is proposed by the vitality of small businesses that are there and really trying to adapt to the needs of the teaching community.

Reporter : Today the Department of Education is ready to provide all children in tablets?

Mrs. Becchetti-Bizot : The Department is not ready to buy for all, it would be impossible, can you imagine the price that would be! However it is ready to partner, to imagine consortia with communities and businesses, perhaps, perhaps! I do not know if we’ll do it, but we will try to do that, to effectively we can encourage, facilitate equipment.

Journalist : Partnerships who dream because the industrial market to win is huge. Globally, it is estimated at 100 billion euros and growth forecasts give the spin: more than 1500% in the next decade.

Today, the market leader in educational tablet is Apple. Yet the brand has no official stand on the show, preferring to highlight its suppliers of content, the famous educational software.

Why is Apple company absent the show?

Mark Herman, Albion : Because we no longer need to explain what an iPad. Everyone knows what it is. However one has to take people by the hand and let them demonstrations to show them the educational potential of our software. Then they can decide if they are interested or want to buy from our competitors and that is where we are useful. We are here to advise schools not to force their hand. But you know, we have equipped schools, there has been incredible changes and it’s a real motivation for us.

Reporter : For industry, this software is the best way to attract customers in their nets. Once purchased, you become dependent on their computer system. In most cases, your Mac software is usable by a computer or a Mac tablet. Ditto for the PC. We went to the other giant digital, Microsoft. To discover their marketing strategy, they invite us into a showroom software and educational materials to Paris. This place was named immersive class.

Teacher : That’s it. You sit in the pit there.

Journalist : Set up two years ago at the company’s headquarters here the teachers and students are invited to discover tomorrow’s school according to Microsoft.

Nao Robot : Hello. I’m Nao, a humanoid robot. I come from the planet Saturn.

Journalist : That day, a retired teacher, hired by the multinational, we made ​​a small demonstration in front of some guinea pigs.

Prof : What is it?

Kids : It’s the land.

Prof : We’ll have to write the names of the planets. You take this pen, here you choose a color.

Journalist : The goal: to seduce the students and their teachers to schools to sell a classroom of the future, turnkey.

Prof : Let’s go get a picture of a book.

Children : Oh! Lava and smoke!

Prof : Well, that comes out. After it comes out of where?

Journalist : The man who had the idea of this showroom is Thierry de Vulpillières, education manager at Microsoft France.

“…the law forbids to advertise in schools. So to get around the problem, Microsoft has found another strategy. We’ll show you how, for years, the American company infiltrates National Education to sell its products.”Thierry de Vulpillières, head of Microsoft France Education : We at Microsoft. Our subject is to help the passion for the education of teachers and students. 55% of French children are bored in school. It’s a shame. Well it’s because we will move the way we teach and we will involve more students these tools come naturally fit into this new way of learning. What we want is that indeed all students can benefit from digital. I would love there to be 11 million tablets in the hands of every student.

Journalist : The difficulty of Thierry Vulpillières: the law forbids to advertise in schools. So to get around the problem, Microsoft has found another strategy. We’ll show you how, for years, the American company infiltrates National Education to sell its products. The man who found out about roses is Alexis Kauffmann, a math teacher. In 2008 he went to the site Innovative Education Forum, a forum sponsored by the National Education, where teachers have educational projects. Alexis discovers a photo that plot, that of this little Asian girl sitting in a classroom.

Alexis Kauffmann, math teacher : I was able to show that the site of the first forum of innovative teachers using the images we found on the official websites of Microsoft. You could tell they were a little sloppy, they have not even taken the trouble to make up the task of changing images.

Journalist : Oh yes, they reversed.

Alexis Kauffmann : Yes they reversed.

Reporter : Alexis wants to know why a photo is featured on the Microsoft site. He then discovers that the multinational is behind these forums and continues to fund discreetly.

We went to the last forum for innovative teachers. This year it is held at the Regional Council of Aquitaine. In the lobby, teachers present their projects.

Teacher : There is no class, in fact, it is a space that is completely open to life. One lot in life …

Journalist : On the platform of representatives of teachers, the Regional Council and the Ministry of Education

Jean-Yves Capul, Deputy Director of Digital Development, Education : Management of Digital Education was wanted by the Minister as a direction for educational purposes. This is the pedagogy and not technology that is the heart of this direction, even if the aim was to combine the two aspects, education and information systems and technology.

Journalist : In the audience in the front row, sitting behind the plant, Thierry de Vulpillières, Mr. Microsoft. Alexis Kauffmann came asking for more transparency in the financial involvement of the multinational forum.

Alexis Kauffmann : What is the sum allocated by Microsoft for this type of event, for example?

Thierry de Vulpillières : Me I do not give a number. The sum is marginal today on the organization of this forum. Unfortunately. I’m glad you ask me …

Alexis Kauffmann : Since the first time, Serge Pouts-Lajus launched a number, it was almost 50% of the budget.

Thierry de Vulpillières : I think it has never exceeded 50%, but actually it was in the order of 50%.

Alexis Kauffmann : It’s hard, even when enough!

Thierry de Vulpillières : Absolutely! And we are very proud to support that event.

Alexis Kauffmann : Okay.

Reporter : Thierry de Vulpillières will not say more. Sponsorship remains discreet. Some teachers do not even have knowledge.

This is an event that is largely funded by Microsoft. It inspires you what?

Christophe Viscogliosi economics professor : That I did not know already, first. And secondly it would have been better than the national education fully fund this type of forum.

Journalist : Why?

Professor of Economics : There is a potential conflict of interest. I did not necessarily want to be forced to use Microsoft products in progress.

Reporter : Thierry de Vulpillières is the only industrial digital world present here. From stand to stand, it maintains its network with faculty.

Thierry de Vulpillières Laurence June This is not the first forum.

Laurence June, Professor of French : No.

Thierry de Vulpillières And paradoxically it seems that we are in a stand of handicrafts. You see son and wool. This is a teacher who was one of the first teachers to use Twitter.

Professor of French Twitter that allows students to communicate, that is to say we are in a classroom, but it opens. We did projects where communication was contacted politicians, writers and journalists. Short exchanges, which led us to do larger projects, meetings, writings and exchanges.

Journalist : Adept Internet, the teacher becomes a target for Microsoft representative. This morning he offered his ten tablets Professor of French class was fortunate to have five computer stations, this is not the case all the time. Perhaps we will have tablets.

Journalist : Microsoft?

Laurence June, a French teacher : Yes.

Thierry de Vulpillières : Small areas will land home.

Professor of French : The good news. The forums also allow these exchanges there.

Journalist : Ten tablets offered to try to take the market in an establishment of seven hundred students. Microsoft has set up a well-rehearsed with faculty and hierarchy lobby. We were able to get that invitation sent to certain officials of the Ministry of Education. The Academy of Paris invites them to discover digital innovation at Microsoft headquarters. Program immersive class. Remember, the showroom Microsoft invented for the promotion of the classroom of the future. Alexis Kauffmann is the neutrality of the school that is harmed.

Alexis Kauffmann : What is outrageous is that academic information day, training, study, around digital is found in Microsoft. It has absolutely nothing to do with Microsoft, simply. Do we imagine the Ministry of Agriculture organize study days at Monsanto for example? No!

Journalist : We went to present the invitation to the new director of digital education.

On May 28 there was the Academy of Paris organized a day of innovation at Microsoft headquarters.

Catherine Becchetti-Bizot : Yes, the rector of Paris made ​​the event at Microsoft headquarters.

Reporter : You do not see that it’s a bit much, it may be a collusion of interest.

Catherine Becchetti-Bizot : Yes, I found out the same day.

Reporter : Were you there?

Catherine Becchetti-Bizot : Ah, I was not there! I would not go there because I think there is a confusion of genres. I do not disagree with the President, I think there is a kind of naivete that there was no will to promote Microsoft. Reporter: But you are against?

Catherine Becchetti-Bizot : I am neither for nor against. I think it is not a policy of the Ministry of Education to organize that, with Microsoft in particular, things of that guy, and it will actually fit. It’s also one of the immediate projects I have in opening this direction is clearly align our corporate partnerships.

Journalist : Multinationals have powerful lobbies and nothing seems to stop them in their conquest of the school of the future. Recently they attacked an amendment to the law of rebuilding the school. The amendment proposed that our school prioritizes the use of free software. Free software is the bane of high-tech enterprises. They can be created, shared, and modified by anyone and they are almost always free. A system that competes digital giants. It’s Green MP Isabelle Attard offering this amendment to the Assembly in favor of free software.

Isabelle Attard, MP for Calvados : This amendment has been fully validated by the Culture and Education Committee for first reading in the Assembly, the Senate also. And when the text comes in second reading in the Assembly, we see that the union of the digital sector, Syntec, just sent a press release to alert precisely this amendment accepted by the Assembly and the Senate, on the overhaul law school.

Reporter : Here’s the press syndicate of digital companies. A very alarming statement: “These provisions will handicap seriously most firms already in this industry.” He was sent to the press, all members and to the Minister of Education at the time, Vincent Peillon. While Isabelle Attard amendment would have allowed the state to make significant savings, Vincent Peillon back.

How do you explain this?

Isabelle Attard : Because there is a lobby and incredible pressure from the largest proprietary software and, as I said, Microsoft is the biggest.

Journalist : We have tried repeatedly to contact the former minister for him to explain his reverse. He refused.

Anyone who still treats Microsoft like an ordinary company does this at his or her own peril. Microsoft is a criminal organisation and it should be regarded as such.

09.22.14

European Patent Office/Organisation – Suspicion of Improper Collusion Between EPO President and Chairman of the Administrative Council: Part III

Posted in Europe, Fraud, Patents at 10:50 am by Dr. Roy Schestowitz

Inner circle of Battistelli

Inner circle of Battistelli [PDF]

Summary: A preliminary look at Battistelli’s reign and how regulatory powers got abolished, leaving the EPO reckless and largely unaccountable

THIS is our third (hopefully among many) outline of EPO abuses. It’s the third instalment in a multi-part series about the European Patent Organisation/Office, which is rotten to its core. EPO — like Google — has enjoyed positive public perception for too long. It’s time to shatter the myths of professionalism and innovation.

Having studied dozens of documents and articles about this topic (usually translations because the English-speaking press mostly overlooks these issues), we are shocked to see just to what extent the EPO engages in dirty tactics, conflicts of interest, and revolving doors. It’s no better than the FCC or CAFC.

Readers who saw the first Techrights article on this topic (focusing on Topić’s appointment) sent us some valuable feedback. Alex Weir, for example, told us: “I read with interest your piece on corruption in the EPO, from my personal experience there have been questions regarding the EPO and corruption in relation to EC contracts and relations with China since the late 1990s, I am sure if you dig you will come up with more evidence.”

Today’s article focuses on Battistelli, the EPO’s President. As we keep getting sent more dirt about the EPO it is hard to say just how many future articles will revolve around his own scandals, which are unique because they show how abuses can go all the way up to the top (EPO President is the highest position).

One person told us on Diaspora that “Richard Stallman has said that the EPO is corrupt a few times, before this man [Topić] was put in charge.

“Thanks for bring up the issue.

“It seems to be the fault of the European Commission,” he added, citing this as an example. Quoting Stallman: “The EU administrators said they would let each country decide whether to allow genetically modified crops, but the proposed implementation is a trap. It has legal flaws, so these one-country bans might then be overturned.

“It is not unusual for the European Commission to make treacherous proposals. For instance, the “computer-related inventions” directive was written so it would appear to rule out software patents, but in fact would have authorized them. ”

“He wrote a lot about the EC’s nasty trick at the time,” said the person about Stallman. We too covered it for years, in video form also. The EPO derives its power from an administration which in its own right is relatively immature (like the Union) and ripe for abuse.

So let’s take a look at what Battistelli is not so well known for.

“Here is a link to an interview with Mr. Paul Ernst,” said our source, “who was a member of the (now abolished) EPO Audit Committee.

“His comments on the function of the Audit Committee and its abolition may be of interest.”

Here for example (with emphasis added) is what he said about the Audit Committee:

The dissolution of the Audit Committee at EPO was justified with the argument that the Audit Committee’s tasks are already carried out by Internal Audit and the Board of Auditors (BOA). What is your view on this?

Paul Ernst: The reasoning behind the decision reveals a lamentable ignorance of the fundamental role of an Audit Committee.
The Audit Committee can be seen as an answer to the famous question „who audits the auditor?“
The Audit Committee reports directly to the Administrative Council, whereas Internal Audit reports to the President and has no right to address the Administrative Council directly.
The Audit Committee protects the independence of both audit functions and observes the coordination between Internal Audit and External Audit, and the follow-up given to audit recommendations.

The Audit Committee should also raise its voice if a significant conflict of interest is discovered, e.g. a close relationship between a member of the BOA or the Internal Auditor or the Chair of the governing body and the chief executive.
There is no other institution that plays a similar role. These are significant differences that demonstrate that the Audit Committee does not duplicate the work of the Internal Auditor nor the Board of Auditors.

“Note,” said our source about Battistelli, quoting the following part: “The Audit Committee should also raise its voice if a significant conflict of interest is discovered, e.g. a close relationship between a member of the BOA or the Internal Auditor or the Chair of the governing body and the chief executive.”

“This is precisely the situation that exists between Battistelli (chief executive) and Angermann (member of the BOA),” explains our source. “However, as there is no longer any independent Audit Committee, it cannot raise its voice in the matter … how convenient for Battistelli.

“The problems of EPO governance arising from the abolition of the Audit Committee have been noted by the French Senator Jean-Yves Leconte in an open letter which he sent to French Ministers earlier this year.”

To quote: “En supprimant de facto l’indépendance de l’audit externe des comptes (budget de l’organisation 2 000 M€) la transparence sur les évolutions de l’OEB ne sera plus de mise. Et ceci sera aggravé par l’absence de contrôle interne crédible lié à l’évolution des relations internes à l’institution” (full text of the letter is available in French).

“The point to note here,” says our source, “is that the French Government is fully informed about the various problems at the EPO but it nevertheless supported Battistelli’s re-appointment in June of this year.”

Nationalism first.

“The problems with the EPO’s audit mechanisms were mentioned briefly in a report by WIPR in June of this year,” said our source, pointing us at the article “EPO staff in Battistelli fight”. The article states: “Staff have also claimed that the “overall governance” structure has been weakened by the audit committee being abolished without the administrative council knowing, and that Battistelli has put a “previous collaborator” from the French Patent Office in the “key post” of external auditor.”

Full details of this were made available to us in the form of copies of the Administrative Council documents referred to above (for readers’ information and for future reference).

“These documents are not classified as confidential so in principle they can be made publicly available,” explained our source.

The documents are as follows:

  • CA-140-08-EN – 2008 – Audit Committee: possible models
  • CA-32-09-EN – 2009 – EPO Audit Committee: draft terms of reference
  • CA-33-09-EN – 2009 – Draft decision setting up an Audit Committee
  • CA-D9-09-EN – 2009 – Establishing an Audit Committee of the Administrative Council
  • CA-100-11-EN – 2011 – Internal appeal against CA/D 4/11
  • CA-D4-11-EN – 2011 – Decision of the Administrative Council
  • CA-55-11-EN – 2011 – Disbanding the Audit Committee

Notice the trend based on the chronology. Audit no more!

Next week we are going to show the ‘special relationship’ between Battistelli, the notorious Topić (known for corruption in his home coutry), and other administrative elements that seemingly collude to keep themselves and their networks in power, feeding off the European economy to do a disservice to Europe. In parts 4 and 5 we are going to shed more light on how the EPO was captured by hawks and wolves — people who should have never acquired such positions of power where they exploit a public institution for power and greed.

08.26.14

Microsoft’s Massive Tax Evasion Becomes Better Known

Posted in Bill Gates, Finance, Fraud, Microsoft at 11:26 am by Dr. Roy Schestowitz

Summary: A new report about Microsoft’s admission that it plays dirty tricks with tax (sometimes using moles in government) is increasing awareness of Microsoft’s criminal aspects

Microsoft does not like paying tax. Microsoft is above the law, so why should it bother paying tax? Just like Bill Gates it is robbing the public while pretending to have little to do with national deficit, Microsoft is actually looting the US and many other parts of the world where it uses similar tricks. India found Microsoft guilty half a decade ago.

Last week when we wrote about Chile we mentioned reports about Microsoft’s colossal tax evasion. Professor Diane Ravitch, who has been watching Gates for years and called for investigation against him, responded as follows:

That kind of money, repatriated to the United States, could underwrite prenatal care for low-income women, provide early childhood education for all low-income children, underwrite medical clinics in low-income communities, and save public education in cities like Detroit and Philadelphia, where it is in dire peril. Imagine $550 billion invested in the well-being of our children! Imagine using that money to reduce our child poverty rate, which is currently the highest among the advanced nations of the world.

The comments are worth seeing too. To quote the first comment: “Perhaps it’s time for Bill Gates teflon coated self be put in jail for tax evasion, after he coughs up back taxes…..One can have hope or fantisize”

The other comments focus on Gates’ corrupt characters and are hardly any favourable than the above.

08.22.14

Microsoft’s Funding of ALEC and Other Systemic Corruption

Posted in Fraud, Microsoft at 3:52 pm by Dr. Roy Schestowitz

Koch

Summary: Microsoft role in writing of laws by proxy, via groups such as ALEC

Several years we saw ALEC getting exposed, thanks in part to activists around the Web. We then saw the faces of people and corporations that were attacking the people of the world by corrupting politicians and writing laws by proxy.

Bill Gates was funding ALEC, one of the most notorious lobby groups in the US. It turns out now that Microsoft too has been funding ALEC, but no more. Microsoft “is no longer a member of the American Legislative Exchange Council (ALEC) and has stopped funding the group.”

ALEC has been incredibly notorious for a number of years. What drove Microsoft to ALEC’s arms and why did it take Microsoft so much time to stop funneling money into this systemic corruption? The negative publicity was probably outweighed by benefits that Microsoft got (tomorrow we will provide an example of massive tax evasion by Microsoft). This is not an exception by the way; Microsoft has funded other ugly groups that even help deny climate change, so this whole thing is no reason for surprise or even a cause for shock. Two crooks get along.

In other news, Opera steps into bed with the crook. “Opera Mini will become the default web browser for Microsoft’s existing feature phones and Asha phones portfolio, as part of a new deal announced today,” says a report. While it means MSIE is dying, this also means that the company which once complained about Microsoft’s abuses to European authorities is now selling out. Why? Money.

Corruption is systemic and those with the money typically manage to get away with everything, including crimes. If the rich write our laws (sometimes by proxy), then it’s expected that they will almost never be sent to prison. Impunity is attained this way.

08.13.14

Fraud in the USPTO and CAFC Helped Apple Launch Frivolous Patent Lawsuits Against Linux/Android, Based on New Withdrawals

Posted in Apple, Fraud, Patents, Samsung at 3:30 am by Dr. Roy Schestowitz


Summary: Inherent corruption in the US system has aided Apple’s assault on east Asian electronics giants that use Linux at the core of their products

A COUPLE of months ago we showed that in fighting Linux/Android Apple relied on the corrupt CAFC and the corrupt USPTO (never mind gross overreach by ITC with its xenophobic embargoes). There was no real review of patent applications on the face of it (there was fraud at the USPTO). Upon actual look at the patents in question the “Patent Office Shoots Down Apple Infringement Claims Against Samsung”, but not before a lot of damage (never mind legal fees) was done. As reported by an Apple boosting site:

Apple just hit a stumbling block in its second U.S. patent infringement case against Samsung thanks to a Patent and Trademark Office ruling that rejects some of the iPhone and iPad maker’s claims. The ruling targeted the summary judgement Federal Judge Lucy Koh issued ahead of Apple and Samsung’s trial this spring, and relates to infringement claims for Apple’s autocomplete patent.

These patent attacks are not going to work if enough money is spent by Samsung showing that Apple merely copies the competition (prior art). In fact, Apple already lost its biggest Samsung case and dropped all of its cases outside the US. It’s quite revealing. Can HTC claim compensation from Apple (legal fees and potentially other fees, as well as various damages to reputation and sales)?

Now that Android commands the lion’s share of the key market (85% of all sales, according to one source) all that Apple can do is lie and rely on trolls who claim “Apple’s resurgence” for some hits/clicks bait. Here is a new example:

In recent weeks, a drumbeat has grown among tech analysts that Apple’s iPhone is poised for massive uptake while Android smartphone sales may have peaked in developed nations. Also, Android is threatened in the developing world from a Google creation called AOSP, which strips out Google’s services (where Google makes its money) and lets any device maker avoid paying Google service royalties. This is especially significant in China, the world’s biggest emerging market, where AOSP is the top-selling mobile OS and which accounts for 20 percent or more of global “Android” sales. At the same time, various analysts have noted that Samsung is being squeezed by both Apple and AOSP, and Samsung may have already peaked in mobile, with 2012′s Galaxy S III representing the high point.

This is all speculative mambo-jumbo bearing the headline “Android has good reason to fear Apple’s resurgence”. Thankfully there is already a rebuttal to this, which says:

Partisan holy wars are part of the history of technology, and there have been few as bitter as Android versus Apple. While Android has had an amazing run of success over the last few years, some analysts are beginning to think that an Apple resurgence is at hand that could do serious damage to Android.

[...]

However, I also understand the need for a horse race in the media. Writers are under pressure to deliver traffic and page views, and a platform battle between Google and Apple certainly offers articles with compelling clickability for readers. And many analysts simply seem to go whichever way they think the wind is blowing without looking deeper into what’s actually happening.

Just remember that a lot of these analysts probably predicted Apple’s doom over the last few years, and now they’ve switched to predicting Android’s doom. So take everything they say with a gigantic grain of salt. I’m sure they’ll flip back over to the other side at some point in the future if they think it will get them attention, clicks and traffic.

Apple is not doing well and even people inside Apple (or fans of Apple) know this. The recent revelations about iOS back doors, the China ‘ban’, etc. are just some of the symptoms and contributing factors/causes. Hopefully, as Apple continues to lose market share, its ability to just sue with patents (frivolously) is going to diminish and the same goes for Microsoft, which is doing what Apple did a couple of years ago (suing Samsung with crappy software patents).

07.31.14

Is Microsoft Being Raided Not Just for Anti-Competitive Reasons but for Bribes and Back Doors?

Posted in Apple, Fraud, Microsoft, Security at 2:21 pm by Dr. Roy Schestowitz

Great Wall of China

Summary: News about raids in Microsoft China mostly lacking when it comes to background, context, and information about Microsoft’s crimes in China

THE WORLD is moving away from Microsoft. It starts with countries like China, which makes its own hardware (as well as much of the world’s), and then there’s Russia, which abandoned x86 (Wintel) and will make its own chips on which only GNU/Linux will neatly fit. We covered all that earlier this year and it’s clearly not just rhetoric; these things are already happening as the wheels are in motion. Microsoft is desperate to keep up with the changes, but Wintel is like an order of magnitude more expensive than Linux with ARM. It’s game over. Android is dominating many areas, along with its derivatives or other Linux-based operating systems.

The other day there was plenty of press coverage (e.g. [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15]) about Microsoft being raided by Chinese authorities. “Chinese regulators swarm Microsoft offices over antitrust concerns,” said some headlines (focusing on competition issues, not back doors), but most reports were a lot more vague with claims [1, 2, 3] ranging from nationalism to concerns about Office tie-up. The plutocrats’ media tried to blame it on China and make the Chinese government look irrational (watch what Microsoft boosters say, another one that’s Gates-washing it, and ludicrous claims that “China steps up the arms race in the digital cold war”). The English-speaking Chinese press says that 4 Microsoft offices were visited in the raid. One summary says that “[r]egulators claim Office, Windows illegally tied” while mostly, instead of speaking about recent success stories with Linux, including Android, the article looks backwards and says: “While there have been several attempts to get Chinese punters to switch to Linux – including Red Flag Linux and the unimaginatively named China Operating System – none have been particularly successful at shaking off Windows’ dominance.”

Now, remember that Microsoft was raided in other countries before (e.g. Hungary) and in 2013 the “US probe[d] Microsoft China bribery claim”, as we covered at the time. There is a criminal element to Microsoft’s conduct in China. One of our readers asked, “pressing for more bribes, discounts and backdoors?” Watch China demonised in Western media for protecting itself from espionage (terms like “Microsoft Chinese burn riddle” don’t help).

As Charlie Demerjian reminded us a short while ago, Microsoft is now extorting Windows users:

Microsoft decided to extort Windows 7 users too

Not content to blow both feet off with a shotgun, Microsoft is going for the kneecaps now by blackmailing it’s customers. If you are still dumb enough to use Windows, you are about have your wallet shaken down by Microsoft in a familiar yet still unwelcome way.

We don’t feel the need to sugarcoat this much because the company’s behavior is so blatant and uncaring it is almost staggering. Worse yet the victims, that would be almost all Windows users, have only themselves to blame because the pattern has been well laid out for years now. Microsoft has been unapologetically blackmailing users for years, anyone who bought one of their products in the last few years should have known better.

China has an issue like this; even in the UK the NHS has faced similar issues and is constantly being pressured by Microsoft, as we showed some weeks ago. Office (online) and Windows (the platform for Office on the desktop) are both banned by the Chinese government now.

Leading Chinese media, the New York Times (trend-setting in the US) and BBC (trend-setting in the UK) covered this and have ended coverage by now, so we saw no urgency to point out the news immediately (unlike some bloggers), only to add some background information which has been omitted by the media. A year after Microsoft came under investigation in the US (over allegations that had bribed Chinese officials) it got a visit from Feds, so what is the likelihood that these raids are at least partly related to criminal activity? Microsoft bribery in China is nothing new; it’s how Microsoft does business and the investigation dealt with numerous countries in which Microsoft was alleged to have bribed officials. The BBC says:

Microsoft has confirmed that officials from China’s State Administration for Industry and Commerce – the body responsible for enforcing business laws – have visited some of its offices.

It sounds like bribes would fall under this category. This comes amid shrinkage of Microsoft’s presence in China:

Microsoft Corp’s biggest reduction in company history could cost China more than 1,000 jobs, analysts warned on Friday.

Apple too is laying off employees, 200 people in fact, so let’s not treat Microsoft alone as the problem. Moreover, based on today’s (and yesterday’s) news [1-7], Russia may be close to banning or kicking out Apple and SAP, due to the fact that their software is secret (proprietary) and thus cannot be trusted.

Related/contextual items from the news:

  1. Russia wants Apple and SAP to prove that their software isn’t used for spying
  2. Russia: Apple, SAP to share source codes to combat spying

    Russia has suggested that IT-giants Apple and SAP disclose their source codes to Russian state specialists in order to clear up information security issues after the chain of spy scandals undermined trust in foreign products.

  3. Russia Wants Apple and SAP’s Source Code to Check Spying Activities
  4. Quick Note: Russia Requests Apple, SAP’s Source Code to Prevent Spying

    Russia has made a bold request for both Apple and SAP’s source code to make sure that neither company’s software contains any sort of spy tools.

  5. Russia Asks Source Codes from Apple, SAP
  6. Russia wants Apple and SAP to prove that their software isn’t used for spying
  7. Sorry Russia, Apple and SAP aren’t revealing their source code

    To ensure that SAP and Apple products aren’t vulnerable to spying, Russia suggested last Tuesday that the companies give Russia access to their source code, Reuters reports.

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