Bonum Certa Men Certa

The Economics of FUD

Once upon a time, I had opined that Microsoft's true bounty in the Microvell deal was Novell's complicity in Microsoft's attempts to undermine the E.C. Decision and fines, and that the FUD was merely a bonus.

Apparently, I hadn't any appreciation for just how much of an economic interest the monopolist has in using any and all means to defend their position for as absolutely long as possible. While reading through the Linux Foundation's response to Microsoft's recent patent saber-rattling, I was taken aback at the truly staggering sums involved:

In the time it will likely take you to read this article, Microsoft will have made $500,000 in net profit. It's instructive to note that the majority of that profit comes from its Windows operating system and Office suite of business software. Not coincidentally, those are the two product lines most threatened by Linux operating systems and Open Office.

Given the high stakes involved, it's not surprising that Microsoft would take steps to protect its turf. In fact, it makes perfect sense. Let's face it: If you were making $1 billion a month, what would you do? Perhaps engage in rhetoric and hyperbole to generate some old-fashioned FUD (fear, uncertainty, and doubt)? Just looking at the numbers, it's easy to see that even if the scare campaign merely delays a customer's migration from Windows to Linux by a single day, Microsoft is $34 million dollars better off.


Think about that - just one week of Novell-Fueled FUD pays for all of those SUSE subscriptions (7 days @ $34M each = $238M, MS payed $240M for 350,000 SUSE subscription coupons). Each and every day that Microsoft has been able to use Novell's capitulation to FUD Linux since November 9th 2006 has been pure profit.

Does anyone still really want to argue that Novell was the party of advantage, as evidenced by the relatively larger (but insignificant to Microsoft, as these number indicate) payment for the patent covenant?

As far as the statement from the the Linux Foundation, they have called on Microsoft ("a rational actor") to "work with the Linux ecosystem to restore confidence in the patent system by making sure they are issued only for truly unique, innovative, and novel functions that advance the state of the art." The statement also includes not-so-subtle reminders to Microsoft that they are not the only people to hold significant patent portfolios.

Joining in the patent cold war recently, on the side of Free Software and toting a significant and focused patent portfolio of their own, was Sun's Jonathan Schwartz, who has pledged to rally to the aid of Red Hat and Ubuntu, if need be. (It should be noted that Sun engaged in a controversial deal with Microsoft back in 2004, in which Sun secured protection from potential IP claims regarding OOO by MS for only Sun StarOffice customers - sound familiar?)

Of course, neither Microsoft nor Sun want to truly test their spurious software patents in a court of law, but moments such as these allow us some insight into the dispositions, and motivations, of the "leaders" of the software industry.

In this case Microsoft, Novell and Sun all have a vested interest in the perpetuation of the software patent myth, and would prefer just an adjustment of the broken system.

Comments

Recent Techrights' Posts

Brittany Day Can Rest and Let Microsoft/Chatbots Write Fake 'Articles' About "Linux" This Christmas
Who said people don't work on Christmas? Chatbots or plagiarism-as-a-service work 24/7, every day of the year except during Microsoft downtimes
 
2025 Will be Fought and Fraught With LLM Slop or Fake 'Articles' (Former Media/News Sites Turning to Marketing Spam)
The elephant in the room?
Links 26/12/2024: Ukraine's Energy Supplies Bombed on Christmas Day, Energy Lines Cut/Disrupted in the Baltic Sea Again
Links for the day
Gemini Links 26/12/2024: Rot Economy, Self-hosted Tinylogs
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, December 25, 2024
IRC logs for Wednesday, December 25, 2024
[Meme] Time to Also Investigate Bill Gaetz
Investigation overdue
Microsoft Openwashing Stunts Initiative (OSI) is A Vulture in "Open" Clothing
it's quite telling that the OSI isn't protecting the Open Source Definition
IBM Has Almost Obliterated or Killed the Entire Fedora Community (Not IBM Staff)
Remaining Fedora insiders are well aware of this, but bringing this up (an "accusation" against IBM) might be a CoC violation
Links 25/12/2024: Fentanylware (TikTok) Scams and "Zelle Scams Lead to $870M Loss"
Links for the day
Links 25/12/2024: Windows TCO Brought to SSH, Terence Eden 'Retires'
Links for the day
Gemini Links 25/12/2024: Reality Bites and Gopher Thanks
Links for the day
Links 25/12/2024: Latest Report Front Microsoft Splinter Group, War Updates
Links for the day
Links 25/12/2024: Hong Kong Attacks Activists During Holidays, Xerox to Buy Lexmark
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, December 24, 2024
IRC logs for Tuesday, December 24, 2024
Gemini Links 25/12/2024: Open Source Social and No Search
Links for the day
Brittany Day Connects Windows Ransomware to "Linux" Using Microsoft LLMs (FUD Galore, Zero Effort, No Accountability)
FUD and misinformation made by Microsoft LLMs again?
Links 24/12/2024: Labour Strikes and TikTok Scrambling to Prop Up Radical Politicians That Would Protect TikTok
Links for the day
Where the Population is Controlled by Skinnerboxes Inside People's Pockets (or Purses)
A very small fraction of mobile users practise or exercise freedom/control over the skinnerbox
[Meme] Coin-Operated Publishers (Gaming the Message, Buying the Narrative)
Advertise (sponsor) to 'play'
Advertisers and Their Covert Impact on Publications' Output (or Writers' Topics of Choice, as Assigned or Approved by Editors)
It cannot be trivially denied that sponsorship in the form of "advertising" impacts where publishers go (or don't go, won't go)
Terrible Year for Microsoft Windows in Cyprus
down from 86% to 72% since January
[Meme] How to Kill Unions (Staff on Shoestring Budget Cannot Afford Lawyers)
What next for the EPO? "Gig economy"?
The EPO's Staff Union (SUEPO) Takes Legal Action to Rectify the Decrease in Wages (Lessening of Purchasing Power)
here is what the union published
Gemini Links 24/12/2024: Deedum Gemini Client Gets Colour Support, Advent of Code 2024
Links for the day
Microsoft Windows Slides to New Lows in Colombia
Now Windows is at an all-time low
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, December 23, 2024
IRC logs for Monday, December 23, 2024