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

A Lot of Technological 'Progress' Has Been Nothing But Buzzwords
Free software does not try to excite people people over nothing
Proprietary Software: Here Today, Gone Tomorrow
Proprietary software has an entirely different mindset, revolving around business models rather than science
Web Hostnames Down to Lowest Number in More Than 7 Years!
the number of hostnames is falling rapidly (they hide this by choosing logarithmic scale)
Over at Tux Machines...
2 days' worth
Stop Begging Companies That Don't Value Your Freedom to Stop Pushing You Around
That's not freedom
The forbidden topics
There are forbidden topics in the hacker community
 
Malware in the Ubuntu Snap Store, Thanks to Canonical Bloatware Mindset
Reprinted with permission from Ryan Farmer
Gemini Rising
There are 3523 capsules
Richard Stallman Gave a Talk Yesterday, Will Give Another Talk Today, and Will Give Two More Talks in Germany Later This Week
Those cover at least 2 different topics
Beware the Microsoft Sharks
We won't forgive and forget
IRC Proceedings: Saturday, September 30, 2023
IRC logs for Saturday, September 30, 2023
Don't be Afraid of the Command Line, It Might Even be a Friend
There's a tendency to think that only graphical interfaces were made to simplify usage, and any declarative interface is by design raw, inherently unfit for usage
One Positive Note About GNU/Linux Coverage in 2023 (Less Microsoft)
GNU/Linux users do not want this, with very rare exceptions
Snaps Were Never Good at Security, But the Media Coverage is Just Appalling
The media should focus on culling Windows, not making a huge fuss over minor things wrongly attributed to "Linux"
Better Footage of Richard Stallman's Talk Last Week: “Freedom in computing, forty years after starting to really protect it”
Richard Stallman speaks about the cancer situation early in his speech
Links 30/09/2023: A Government Shutdown and More Blizzard Layoffs
Links for the day
Links 30/09/2023: Bing Almost Offloaded Due to Failure/Losses, Nvidia Raided
Links for the day
Community is the Lifeblood of Freedom in the GNU/Linux World
Removing or undoing the "cancerd" (systemd) is feasible but increasingly difficult
Richard Stallman Says He Will Probably Live Many More Years
"Richard Stallman has cancer. Fortunately it is slow-growing and manageable follicular lymphona, so he will probably live many more years nonetheless. But he now has to be even more careful not to catch Covid-19."
Quitting 'Clown Computing' and GAFAM is Only the Start
The Web and the Net at large became far too centralised
They Say Free Software is Like Communism When They, the Proprietary Software Giants, Constantly Pursue Government Bailouts (Subsidies From Taxpayers)
At the moment Ukraine is at most risk due to its dependence on Microsoft (inside its infrastructure)
Social Control Media Has No Future, It Was Always Doomed to Fail (Also Promoted Based on Lies)
Recent events, including developments at Twitter, meant that they lost a lot of their audience and then, in turn, sponsors/advertisers
They're Been Trying to 'Kill' Richard Stallman for Years (by Mentally Tormenting Him)
Malicious tongue wanted to do him what had been done to Julian Assange
We Temporarily Have Two Gemini Capsules
They're both authentic and secure, but they're not the same
Consumerism is Lying and Revisionism
We need to reject these liars and charlatans
Links 30/09/2023: Open VFS Framework, CrossOver 23.5, Dianne Feinstein Dies
Links for the day
Security Leftovers
GNU/Linux, Microsoft, and more
Microsoft Down on the World Wide Web, Shows Survey
down by a lot in this category
IRC Proceedings: Friday, September 29, 2023
IRC logs for Friday, September 29, 2023
A Society That Fails Journalists Does Not Deserve Journalism
It's probably too later to save Julian Assange as a working publisher (he might never recover from the mental torture), but as a person and a father we can wish and work towards his release
Almost Nothing To Go With Your Morning's Cup Of Coffee
Newspaper? What newspaper?
Techrights Was Right About the Chaff Bots (They Failed to Live up to Their Promise)
Those who have been paying attention to news of substance rather than fashionable "tech trends" probably know that GNU/Linux grew a lot this year
Selling Out to Microsoft Makes You Dead Beef
If all goes as well as we've envisioned, Microsoft will get smaller and smaller
Curation and Preservation Work
The winter is coming soon and this means our anniversary is near
Mobile Phones Aren't Your Friend or a Gateway to Truly Social Life
Newer should not always seem more seductive, as novelty is by default questionable and debatable
Links 29/09/2023: Disinformation and Monopolies
Links for the day
iFixit Requests DMCA Exemption…To Figure Out How To Repair McDonald’s Ice Cream Machines
Reprinted with permission from Ryan Farmer
Jim Zemlin Thinks the World's Largest Software Company Has 200 Staff, Many of Whom Not Technical at All
biggest ego in the world
Microsoft GitHub Exposé — In the Alex Graveley Case, His Lawyer, Rick Cofer, Appears to Have Bribed the DA to Keep Graveley (and Others) Out of Prison
Is this how one gets out of prison? Hire the person who bribes the DA?
Richard Stallman's Public Talk in GNU's 40th Anniversary Ceremony
Out now
Links 29/09/2023: Linux Foundation Boasting, QLite FDW 2.4.0 Released
Links for the day
Red Hat Does Not Understand Community and It's Publicly Promoting Microsoft's Gartner
RedHat.com is basically lioning a firm that has long been attacking GNU/Linux in the private and public sectors at the behest of Microsoft
A 'Code of Conduct' Typically Promoted by Criminal Corporations to Protect Crimes From Scrutiny
We saw this in action last week
Objections to binutils CoC
LXO response to proposed Code of Conduct
Conde Nast (Reddit), Which Endlessly Defamed Richard Stallman and Had Paid Salaries to Microsoft-Connected Pedophiles, Says You Must Be Over 18 to See 'Stallman Was Right'
Does this get in the way of their Bill Gates-sponsored "Bill Gates says" programme/schedule?
Techrights Extends Wishes of Good Health to Richard M. Stallman
Richard Stallman has cancer
endsoftwarepatents.org Still Going, Some Good News From Canada
a blow to software patents in Canada
The Debian Project Leader said the main thing Debian lacked was more contributors
The Debian Project Leader said the main thing Debian lacked was more contributors
IRC Proceedings: Thursday, September 28, 2023
IRC logs for Thursday, September 28, 2023
Links 28/09/2023: Openwashing and Patent Spam as 'News'
Links for the day