Bonum Certa Men Certa

Why the Melco-Microsoft Deal is a Form of Racketeering

Band on the snow



"Microsoft is asking people to pay them for patents, but they won’t say which ones. If a guy walks into a shop and says: “It’s an unsafe neighbourhood, why don’t you pay me 20 bucks and I’ll make sure you’re okay,” that’s illegal. It’s racketeering."

--Mark Shuttleworth



Summary: A deeper look at Melco's deal with Microsoft

IN some ways, the Melco sellout resembles the Brother Industries sellout. Microsoft blogger Mary Jo Foley wrote about this deal almost gleefully and also suggested that OEMs might be next to sign (i.e. sell out to Microsoft). Does she know anything that others do not? The short story as she tells it goes like this:



On July 15, Microsoft signed a patent-coverage deal with Melco Holdings, the Japanese-based parent company of Buffalo Inc. and Buffalo Group. Buffalo makes network-attached storage (NAS) and routers, including the LinkStation and AirStation products.


It has hardly been covered by the mainstream press so far, and surely not properly. The press is busier covering products that do not exist (e.g. Vista 7). What makes this patent agreement unique is that no patents are specified, no amounts of money are disclosed, but above all, Linux is not even owned by Melco Holdings, yet it has no qualm about injuring its producers for personal convenience. It is usually to be expected from mere exploiters ('proprietarisers') of Linux such as TiVo or ACCESS.

“There might be more (unannounced) such deals -- ones that rely on this Melco/Microsoft press release to justify the racketeering and suppress Linux adoption.”To put in perspective what Microsoft is doing here, it is a form of racketeering, which makes one wonder if the RICO ACT (Racketeer Influenced and Corrupt Organizations Act) becomes applicable. What Microsoft is saying goes along the lines of "we have a big gun here and you don't want us to pull it out on you, so why don't you pay us some money and we'll leave you alone permanently?"

Microsoft is also assisted by accomplice front groups (e.g. Jonathan Zuck), who are fraudulently pretending that small businesses [1, 2, 3] want to pass laws that illegalise GNU/Linux or tax it out of the European market. That, unlike the RICO ACT, is something that the European Commission needs to be informed about. To say more about the nature of these dealings, consider this new comment from LinuxToday: "All of these deals are being done in secret. It needs to stop so that we can this BS about Patents that Microsoft keeps using resolved- one way or another."

There might be more (unannounced) such deals -- ones that rely on this Melco/Microsoft press release to justify the racketeering and suppress Linux adoption. As Microsoft's earnings fall 32% (partly due to GNU/Linux) Microsoft hopes to make up for it by claiming ownership of Linux and making a cash cow out of it, using software patents. It's like another SCO and people should report this abuse, at least to the extent possible. It is the latest example in a long series where Microsoft operates more like the mafia than a respectable company.

“That’s extortion and we should call it what it is. To say, as Ballmer did, that there is undisclosed balance sheet liability, that’s just extortion and we should refuse to get drawn into that game. On the other side, if Microsoft is concerned about its intellectual property, there is no one in the free software community that wants to violate anyone’s IP. Disclose the patents and we’ll fix the code. Alternatively, move on.”

--Mark Shuttleworth



Comments

Recent Techrights' Posts

Plagiarism is Hardly a New Problem, It Predates Mainstream Media Getting Paid to Whitewash It as "Training" or "Hey Hi", Then Conflate Plagiarism With "Intelligence" or Deferred "Value"
"Quantum" isn't new either; it's a 'circle-jerk' for companies without direction, only hype
Unsafe at Any Speed, "Modern" Appliances
Appliances have gotten worse
 
IBM's Senior VP of Infrastructure is Out, Silent Layoffs Still Going On
Some people imagine the CEO will also "retire" very soon (and "ahead of time")
Gemini Links 09/09/2026: Mechanical Cameras, "Super App", and Prusa Issues
Links for the day
SLAPP Censorship - Part 177 Out of 200: Manosphere Without Financial Transparency
It has moreover replaced a female worker with a male
Deadline Tomorrow (10th of September) to Appeal the EPO's Fleecing of Staff (Union to Make Legal Challenges)
Join them. Fight the good fight.
linuxstans.com Died, Then Came Back as Slop (LLM Junk)
Don't make the mistake or the assumption that merely 'dabbling in' or 'experimenting with' LLMs can be forgivable as it is a trust destroyer
Links 09/09/2026: GAFAM Fatalities in Miami International Airport, "Britain’s Health Crisis Is Becoming a Political Crisis"
Links for the day
Gemini Links 09/09/2026: "Adjective Is Subjective" and Walled Gardens
Links for the day
Links 09/09/2026: Airport 'Down' (Glasgow and Edinburgh), 'Open' 'AI' Losses Rise to Pace of 50 Billion Dollars in Losses Per Year
Links for the day
SLAPP Censorship - Part 176 Out of 200: The Sex-Obsessed Non-Experts
We heard some sexual stories
European Patent Office (EPO): No Transparency and No Paper Trail
The incompetence is that of the management, i.e. sheer incompetence of people who never examined a patent in their entire lifetime
Gemini Links 09/09/2026: Going Out, Smartphone Addiction, Mapping the Geminispace
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 08, 2026
IRC logs for Tuesday, September 08, 2026
Linux is Sabotaged by Botspam and Bloat (de Facto Denial of Service Attack in "Intelligence" Clothing After Rust in "Security" Clothing)
Linux is becoming orphaned, devalued and diluted by GAFAM slop
Switzerland No Longer Wants Microsoft's 'Swiss Cheese' (Back Doors)
Switzerland's patience with Microsoft is wearing thin
Debian is Not a Community, Many Debian Developers Work for Large Companies Including GAFAM (US)
"Community" sounds like friendship and amicability
Links 08/09/2026: Slop Companies Attack Some More Sites, Nvidia Bribes 'Linux' Foundation for Some More Openwashing and for Saying Slop is "Secure"
Links for the day
Gemini Links 08/09/2026: Ultra Introverts, BlackBerry Bold in 2026, and Laughing at LLMs
Links for the day
Microsoft Layoffs in October 2026
Microsoft is a market leader. In NDAs.
Links 08/09/2026: "The Green Revolution Has Failed Africa" and Palantir/Microsoft Harming NHS
Links for the day
Microsoft's Silent Layoffs Are the New Normal at Microsoft
Microsoft has a ton of layoffs all the time, but the media isn't mentioning those as no WARN notices get issued
SLAPP Censorship - Part 175 Out of 200: Implicit and Explicit Coalition Against the UK's SLAPP Industry
SRA recognises the problem
Further Transparency Problems at the EPO
The EPO was never meant to be profitable
Gemini Links 08/09/2026: "Everything Must Go", Announcing Perigee, and Presentations in a Browser
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 07, 2026
IRC logs for Monday, September 07, 2026
Alleged Manager at IBM Says "[t]here are likely to be a lot (and I meant, A LOT) of RAs before December."
"We’re getting pressure from above to put some team members on PIPs."
Links 07/09/2026: Amazon Cargo Plane Crash, .org/.net/.com Domains Considered Risky
Links for the day
Gemini Links 07/09/2026: Cheese, Text-based Life, and Icons in Swaybar
Links for the day
Freedom, Not Fame, is His Goal
pursuit of money can be not only tiring but also involve abandoning one's freedom
Links 07/09/2026: Slop Trashes Memory of Parton, Flock Surveillance Infuriates Everyone
Links for the day
Getting Better After 20 Years
Exactly two months from now this site is turning 20
EPO Hiding Cocainegate and Abandoning Transparency (Even Access to Very Basic Information is Denied)
The EPO isn't just becoming like a private for-profit corporation. It's also becoming more secretive.
Richard Stallman Has Resurrected Lost Updates
We didn't ask about it
SLAPP Censorship - Part 174 Out of 200: Cascading Scandals and a Path Towards Much-Needed, Long-Awaited Reform
Reform the UK's law, not "Reform UK"
EPO's Gema Requena Sempere (PD People) Contacted Regarding Children With Disabilities
In the coming week we may be in fruitful contact with some media regarding EPO scandals
Over at Tux Machines...
GNU/Linux news for the past day
Gemini Links 07/09/2026: Music Composition, Free Stuff, and Self-hosting Git Repos
Links for the day
IRC Proceedings: Sunday, September 06, 2026
IRC logs for Sunday, September 06, 2026