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

SLAPP Censorship - Part 86 Out of 200: The Position of Courts on Computer-Generated Lawsuits and Filings From Another Continent (Made by Two Men Who Work for Slop Companies)
Lawsuits by proxy from California
IAM Magazine is in Effect Dead, It's Now Fused Into Microsoft's Patent Troll (Which It Has Promoted All Along)
Microsoft-connected patent trolls in Europe [...] Now, in his new job, Wild can use his 'expertise' to help guide blackmail/extortion to better harm Europe's industry
 
Microsoft's 'Hiring Freeze' (Layoffs) and Salary Freeze (While Inflation Approaches Double-Digit Rates)
If they get replaced by anyone, it'll be low-paid folks in low-salary regions [...] workers' stress levels shoot up, compensation goes down
Slop Will Not End Humanity, The Pushers of It Do (Artificial Scarcities and Global Warming)
Causing hunger and poverty in the name of "computation"
How Can the 'Broligarchs' Love Us When They Don't Even Love Themselves?
Their SLAPPs have their limits
Death at IBM Due to Overwork
Dying for IBM is never worth it
We Publish Less, We Get More Exposure
UbuntuPit is coming to realise that quantity isn't what comes to matter or truly "count", especially when quantity comes at expense of authenticity
Codecs and Software Patents - Part IX - GNU Project Has Chosen to Adopt AV1 for Its Videos, Conversion and Additions Underway
One of our readers is working to help GNU through the maze of software patents and maze of patent lawsuits, which aren't the same thing but are somewhat overlapping issues
Links 24/05/2026: SoftBank CEO Getting Conned by Scam Altman, Hotter 2026 and El Nino With Growing Impact
Links for the day
Links 24/05/2026: Ebola Outbreak and "Journalists Identify Murder Victims Of Trump’s Boat Strike Program"
Links for the day
A Huge Proportion of 'Articles' in The Register MS Are Actually Paid Spam of the Communist Party of China, Selling Compromised (for Wiretapping) Technology
The Register MS is having a go at becoming a marketing company or "B2B"
Top Officials Have Just Left Microsoft, Layoffs in Anything But Name
Microsoft's debt is very fast-growing
Local Staff Committee The Hague (LSCTH) Meets "Alicante Mafia" at the European Patent Office (EPO)
Report on meeting with VP1 and his team on 21 April 2026
UbuntuPit (ubuntupit.com) Has Deleted Slop Pages, Its Slopfarm Experiment Has Failed (Like Always!)
Turning one's site into a slopfarm is a death knell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 23, 2026
IRC logs for Saturday, May 23, 2026
The "Next Big" Bonus for IBM's CEO Apparently Comes From American Taxpayers While Veteran IBMers Are PIP'd and RA'd (Laid Off)
the next big thing will be the CEO's bonus
Links 23/05/2026: Starbucks Scraps Disastrous Slopfest, Colbert’s Final ‘Late Show’
Links for the day
Gemini Links 23/05/2026: Poetry, Hobbies, ROOPHLOCH, and More
Links for the day
Government Bailouts Won't be Enough to Save IBM
Bailouts from taxpayers in the US
Links 23/05/2026: Social Media Bans and Demise of Userbase of LLM Chatbots
Links for the day
Legal Letters Are Not Postcards
It seems like intimidation, nothing more
SLAPP Censorship - Part 85 Out of 200: The United Kingdom's Rating for Press Freedom Has Improved, But We Can Do Even Better
we see the US at #64
Sites Realise That Becoming More Active by Using Bots (LLM Slop) is Self-Destructive
We'll soon (maybe next year) also show that some of the 85+ KG of legal papers sent our way are computer-generated garbage, which might run afoul of some rules
European Patent Office (EPO) Strikes Persist, EPO Management Tries to Give False Impression of "Happy Staff"
EPO is trying to broadcast to the world a totally phony image of itself
Gemini Links 23/05/2026: Patience, LLM Chatbts Being Bad, and Unexpected Computer Surgery
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 22, 2026
IRC logs for Friday, May 22, 2026
Links 22/05/2026: Ebola Crisis and Samsung Averts a Walkout With Big Bonuses
Links for the day
The End of FOSSPost (fosspost.org), It Has become an LLM Slopfarm Like FOSSLinux
These sites will never get lucky with slop. These experiments always end badly.
Links 22/05/2026: Inflation Fears and Thailand Tightens Visa Rules for Tourists From Dozens of Nations
Links for the day
EPO Staff Representation Speaks of This Week's Discussion With the EPO's Budget and Finance Committee (BFC) Amid Mass Strikes
The Central Staff Committee's outline (prepared in a rush) or the "flash report"
SLAPP Censorship - Part 84 Out of 200: New Legislation Against SLAPPs on the Way (After We Reached Out to Ministers)
They dealt with the matter individually too, but we won't share this in public, at least not at this time
The Corrupt Lecture the Non-Corrupt - Part XXX - Where Was "The Ethics and Compliance Team" When the Family of EPO President Campinos Was Caught Doing Cocaine?
It remains to be seen if national delegates will tolerate this in future meetings
Gemini Links 22/05/2026: Esperanto Music History, Suspicious Adoption of Signal, and Unauthorised LLM Slop in Code
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 21, 2026
IRC logs for Thursday, May 21, 2026