--Microsoft, internal document [PDF]
WELL, it's rather fascinating how Microsoft controls not only the press; it tames or gains influence over many blogs too. It's sometimes paid for.
Last week, Microsoft was kind enough to invite me to sit down, one-on-one with Horacio Gutierrez, the company's VP and Deputy General Counsel in charge of intellectual property and licensing. As you might imagine, given my views on the patent system in general, and Microsoft's gradual embrace of the patent system specifically, he and I disagreed on a fair amount. We agreed that the patent system should be focused on encouraging innovation. We agreed that there were abuses of the system. From there, our views pretty much diverged, though the conversation was fun and lively.
Gutierrez began the conversation by focusing on all of the "benefits" that Microsoft sees to the patent system, which focused on all of the licensing deals that the company has done. He positioned it by noting that the patent portfolio allows the Microsoft to get into deeper business relationships with other entities. Specifically, he noted that in many cases what began as a patent licensing discussion eventually leads to a much more complete business relationship that increases interoperability. He cited deals with both Sun and Novell as examples of this.
In discussing all of this with Gutierrez, I brought up the company's continual FUD campaign, where it goes to the press to wave that pointy stick around, in announcing that Linux violates over 200 Microsoft patents. Gutierrez noted that he was among the Microsoft execs who had made those statements, and he stood by them, claiming that Richard Stallman agrees, and falling back on his earlier claim of all complex products violating some patents, which is why he says they just want Linux vendors to work out some sort of patent licensing agreement. That, of course, doesn't answer the question of why Microsoft keeps screaming about patent infringement, but never bothers to show what patents anyone infringes on.
Microsoft needs to get rid of its chief IP lawyer and its patent strategy if it wants further efforts at interoperability to be taken seriously by open source vendors and users.
In at least two interviews with IT publications this week, Horacio Gutierrez reaffirmed that the company intends to try and force open source companies to sign patent licensing deals or face lawsuits.
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The intellectual property that is trying Gutierrez's patience is not any line of copyrighted code, nor any trademark or trade secret. It's a bunch of patents that Microsoft claims it owns. In the bizarro-world that is US patent law, companies can get government-granted monopolies on procedures that are taught to programmers at high school as if they were some sort of valuable asset.
“IDG threw this article all over its extensive network of domains, probably for mass effect.”It becomes increasingly probable that Microsoft bets on becoming another SCO (with higher success rates in terms of 'indemnification'); its other chief lawyers and patent people, such as Marshall Phelps, seem to suggest so too. Over the weekend we will cover Microsoft's financial situation and show the evident decline, which requires urgent change of strategy and a return to price-fixing era, as opposed to dumping techniques.
"Intellectual property is the next software."
--Nathan Myhrvold, Microsoft patent troll
Microsoft to have 50,000 patents within two years, Phelps reveals
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The company’s filing strategy is based on two key points, he explained. The first is that it needs protection in what it believes to be its key markets: the US, Europe, Japan and the BRICs (Brazil, Russia, India and China) countries, among others. The second is that it has to have a presence in countries that have a software manufacturing capability; that means the same countries as above, but also others such as Taiwan. Europe, Phelps said, likes to think that it is different because it says it does not grant software patents “but they can’t distinguish between hardware and software so the patents get issued anyway”.
Image from Wikimedia