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

Trolls With LLM Slop Are Disrupting Communications About Mass Layoffs at IBM
LLM slop to drown out the signal
Bing Might Shut Down - Just Like Skype Did - Some Time in the Coming Months/Years (Parts of It Already Shut Down)
they try to bring the losses under control
 
The SLAPPs From Microsofters Distract From Serious Copyright Infringement by Microsoft and Apparent Business Crimes
Aside from other issues, such as strangling women
Enshittification is Everywhere: You Pay More, the Services Get Worse
"Enshittification" is a term coined by an online friend; I increasingly use this term to describe what's happening even outside the realm of technology (which it was adopted to describe)
Microsoft Reduces Office Space Ahead of More Waves of Mass Layoffs
"The Gerstnerisation of Microsoft"
Anti-Linux FUD Produced by Microsoft LLMs to Blame "Linux" for Microsoft's Own Failures
We call out some of the worst culprits
Gemini Links 16/05/2025: Hoking GPS, Grabovac, and Tanana
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 15, 2025
IRC logs for Thursday, May 15, 2025
Microsoft WARN Notices Proliferate in the United States
From what we've seen, this wave was more than 3% (a lot more) and the next wave/s will be even bigger (possible as imminent as weeks from now), based on insider leaks
Links 15/05/2025: Google Betrays Publishers Again, Openwashing by Sysdig
Links for the day
Richard Stallman Still Respected by Many in the Libre Graphics Community
Richard Stallman and Professor Moglen never harmed anyone
If You Read Techrights, Then You Probably Want to Read Tux Machines as Well
That site is more active than this one
Gemini Links 15/05/2025: Forced Music in Publicly Accessible Space and ~silv is Online
Links for the day
Links 15/05/2025: KOSA Censorship (USA Becomes More Like KSA) and More National Cuts
Links for the day
Your Real Ally Would Not Defend the Company of SLAPP and Strangling of Women
who's left to tell us what's true?
Breakdown of Microsoft Layoffs Shows It's About Cost, Not Performance or Hype (Like "AI")
MSN (Microsoft) reposted this with some unnecessary spin
The Lawyers Working for the Serial Strangler From Microsoft on SLAPPing Techrights Have Apparently Lost Their Voice
the moment we mentioned that their media lawyer is leaving they went all quiet in social control media
At IBM, Relocation Can be a Trick or a Trap (IBM Gets Rid of Staff Under the Guise of "Relo")
IBM is not being honest with employees
Microsoft Rumours: This Week's Scale of Layoffs "Higher Than Reported" and More Coming Soon ("A Lot More Severe" Than May's)
The "3%" figure is false
Slopwatch: Sloppy Brian, Brittany Slop, and General Observations
Creative people don't need slop; there's just nothing good about it, slop appeals to lazy people careless about quality
Over at Tux Machines...
GNU/Linux news for the past day
Beyond Mass Layoffs at Microsoft: Entire Units Shut Down for Good
And it's far from over
Links 15/05/2025: Crikvenica, Analog Computer, and Slop 'Hallucinations'
Links for the day
IRC Proceedings: Wednesday, May 14, 2025
IRC logs for Wednesday, May 14, 2025
Links 14/05/2025: Fentanylware (TikTok) Harms Kids, Russia Refuses to Defuse
Links for the day
Gemini Links 15/05/2025: Poseur Nerds and Mennonites
Links for the day
VS Code Is Not FOSS, And Neither Is the Site "It's FOSS"
VS Code is proprietary spyware of Microsoft, yet this site keeps promoting it like it's FOSS
No, Microsoft Didn't Lay Off So Many People Because of "AI" "Innovation" or "Efficiency" or "Era" or "Revolution" Etc.
Debunking one very common lie
What We Do When We Say "GNU/Linux" to People
It talks about "Linux", "GNU", and what it means to say "GNU/Linux"
Links 14/05/2025: Facebook And Instagram Risk Nationwide Bans, Microsoft Subsidiaries Have Mass Layoffs Too
Links for the day
Canonical Will Give You Money Only If You Work for Microsoft!
Only if you are servicing (being a slave to) proprietary forges that Microsoft and the NSA control while violating the GPL will Canonical give you money
If Microsoft Staff That Strangles Woman Pays You to Write Lies, It Will Not End Well
The past couple of years were our most productive ever
Gemini Links 14/05/2025: "Writing My Story with Inspiration from Notable Lives" and People Start Shovelling Up LLM Slop Onto Geminispace,
Links for the day
Microsoft is Very Highly Stressed About Adoption of GNU/Linux at Windows' Expense (on Former "Vista 10" PCs)
What does this tell us?
Slopwatch: BetaNoise (BetaNews), LinuxSecurity, and Slopfarms Still Promoted by Google News
The primary goal is to demonstrate the problem persists
Links 14/05/2025: Google Agrees to $1.3 Billion Settlement After Spying, China Tariffs Don't Work
Links for the day
There Are Also Loads of Microsoft LinkedIn Layoffs Today (Keep Track of the Subsidiaries They Keep Out of Headlines)
Perhaps lost in the smokescreen
There Are Bigger Rounds of Microsoft Layoffs Coming, a Cull of 10% Implemented in Waves (the "3%" Figure is Misleading, Face-Saving)
Last night we said they might do the layoffs in three or at least two waves
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 13, 2025
IRC logs for Tuesday, May 13, 2025