Bonum Certa Men Certa

More Microsoft Debt, Legalised Tax Evasion, and Investment in the SCO Case

Eye



Summary: A look at Brad Smith's lobbying, a loan of $1.25 billion, and Microsoft's involvement in the SCO case against Linux is revisited

The last post finished with a word about Brad Smith's lobbying for Microsoft.



It was only weeks ago that Brad Smith was lobbying for legalisation that gives Microsoft a green light to tax evasion -- an issue which is now being discussed by apologists of Microsoft's bad practices (who met Brad Smith for dinner):

As we pointed out in today’s Morning Fizz, Jeff Reifman, a former Microsoft employee who is on a crusade to get Microsoft to pay royalty taxes on software licenses, took me task for not asking Microsoft VP Brad Smith about their—estimated $100 million a year—tax dodge. (Reifman’s website has a helpful fact sheet on the issue.)

Here’s the deal: Microsoft has a shop in Reno, Nevada where it issues its software licenses. Even though dividends from those licenses come back to Redmond, the licensing transactions are not captured by Washington State because the business is technically generated out of Nevada. (I talked at length today with bureaucrats in Olympia who confirmed the situation.)

[...]

By the way, I take issue with Reifman’s assertion that I was “charmed” or “rolled over” by Smith and the dinner.


Microsoft really needs to start paying tax. The company's existing debt deepens based on this new report, so citizens might never see a penny.

The Bank of New York Mellon Trust will be trustee of $1.25 billion in Microsoft convertible debt after the software company offered them to investors last week, Microsoft announced Friday (PDF – 106 pages).


Pogson wrote about this company's famous case of legalised (using Microsoft veterans in the government) tax evasion:

I would like the USA to apply RICO to what M$ does, too. RICO covers fraud such as false advertising and tax fraud. Many of the “get the fud” ads, the layers of partners and kickbacks, and $billions “invested in research” could be fraudulent. Could a business really investing billions in research actually produce a product as faulty as that other OS? I expect a lot fewer billions have been invested in GNU/Linux research for a much better result. Is the research of M$ legitimate, or a tax dodge? Around the world, M$ has been pursued for dodging taxes. I would not be surprised to find they do it “at home”. The last annual report said:
“During fiscal year 2008, we reached a settlement with the Internal Revenue Service (“IRS”) on its 2000-2003 examination. As a result, we reduced our unrecognized tax benefits by $4.8 billion and recognized a tax provision reduction of $1.2 billion. As a result of the 2000-2003 settlement and the related impact on subsequent years, we paid the IRS approximately $4.1 billion during fiscal year 2009.”


One can go further and discuss Microsoft's funding of SCO, which is a serious issue. "Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system," confessed Larry Goldfarb, a key investor in SCO who was approached by Microsoft. "Microsoft did not want to be seen as attacking IBM or Linux," he added. SCO is now dead or at least dying, but the damage caused by Microsoft's investment in SCO will never be undone.

I, personally, would like to see SCO die in a fire for all the expense, FUD and general heartache they brought to the free and open source community, but there's probably not enough left of the company to burn.


Over at ZDNet (now featuring Vista 7 ads in all blog pages), pseudonym Paul Murphy is told: "Come on “Paul”, you need to step up someday and admit that you have been wrong all along about SCO and their scheme against Linux. You can do it, I know you can!"

Pseudonym Paul Murphy has been promoting SCO's case for many years and he still refuses to acknowledge that it was all in vain. Groklaw responds with a mention of Novell's role:

He continues to insult, and he predicts SCO, or a new owner of Novell, will surely succeed yet in fulfilling SCO's plot, in what he believes, if I've understood him, will be a legal Hail Mary pass to go down in history. The new FUD is his article, Suicide by Victory: More on SCO, in which he predicts gloom and doom for Linux because Novell won at the jury trial in Utah.


Groklaw also refers to this article which cites Rob Enderle (big SCO booster and Linux agitator). "The link is to Rob Enderle's old article," writes Groklaw. "His point is that litigation is a skill, and most CEO's don't have skill in that field."

Well, Microsoft has been claiming to 'embrace' "Open Source" while litigiously attacking "Open Source" [1, 2, 3, 4, 5, 6, 7] and clearly describing it as a competitor. SCO did something similar with Linux. That was probably before Microsoft approached SCO with cash. That's just how Microsoft operates.

Based on a new report, the judge who became famous partly for his role in convicting Microsoft is being tapped by Oracle in its case against Microsoft's ally SAP (which lobbied against Oracle and Sun last year). To quote part of the article: (also in [1, 2])

Oracle has brought in the big guns to assist in its intellectual-property lawsuit against rival applications vendor SAP, hiring attorney David Boies, well-known for his high-profile role prosecuting the U.S. government's landmark antitrust case against Microsoft.

[...]

The attorney's role in the Microsoft case, where he served as a special trial counsel for the U.S. Department of Justice, was just one highlight in a career many legal industry observers have called legendary.


Oracle has just been sued for overcharging the government, but that's another story. We hope to see Microsoft sued for the role it played in the SCO case, which happens to have hurt Oracle. Microsoft has a tradition of sending attack dogs or vultures to attack its competition.

Eagle

Recent Techrights' Posts

How Back Doors Became the 'Normal' or 'Norm'
"We also allowed a lethal monoculture to fester"
Solicitors Regulation Authority (SRA) Inaction and Incompetence - Part III - The SRA is Vastly Worse Than Brits Realise, We Have a "Wild West" in London
In the next part we'll begin looking at correspondence with the SRA
SRA and Manslaughter: How the SRA Contributed to Agony in Proprietary Software Scandals With Clear Misuse of "Without Prejudice"
Trying to prevent the public from finding out the criminal stuff that went on, resulting in many deaths
Canonical (or Ubuntu) Rejecting IRC Isn't the Widespread Trend
Internet Relay Chat (IRC) adoption still growing by some yardsticks
SLAPP Censorship - Part 173 Out of 200: Two Years
It was exactly 2 years ago that we filed lawsuits against Garrett
Linux of America
We could not help but notice GNU/Linux in North America yesterday
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 05, 2026
IRC logs for Saturday, September 05, 2026
Gemini Links 06/09/2026: Internet Limiting (Limited Time Allotted) and Solar MiniServer
Links for the day
Eight Months of Strikes in EPO, Organised by the Staff Union (SUEPO) Also in Berlin
In Berlin, only one member of staff voted against the action plan
Links 05/09/2026: "Let’s Stop Buying New Phone" and 'Open' 'AI' (Proprietary Slop) Drowning in Lawsuits
Links for the day
Gemini Links 05/09/2026: Polarization, Warped Maps, and Emacs rectangle-number-lines
Links for the day
Software Freedom, Even If Difficult to Attain Due to Outside Pressure, Does Make You Happier
Peer pressure and opinionated employers can make friends and staff more miserable if they dictate bad software
You Can Run GNU/Linux on a Desktop/Laptop for 1,000+ Days Nonstop
To me, the long uptime is a way of "marketing" GNU/Linux as robust and stable
Profiting From Global Warming (and Making More Money the More You Cause Warming)
Unregulated bank and pyramid scheme
SLAPP Censorship - Part 172 Out of 200: The Solicitors Regulation Authority (SRA) Complicit in the SLAPPs by Inaction (Didn't Even Study Any Evidence, Only Wasted Time and Budget)
"SRA placed into special measures due to 'disappointing standard of leadership'"
China Does Not Need American (US) Products Like GAFAM's
China has abundance of technical things it can leverage to preserve its autonomy
RMS Didn't Make Enough Backups
Making backups is important
Refresher: Why EPO Staff is on Strike This Year (Aside From the EPO Acting Like a Corrupt, Above-the-Law, For-Profit Corporation That Violates Its Own Charter)
One core issue at the EPO is erosion of purchasing power
Gemini Links 05/09/2026: Fireflies, Shore Pine, and ASCII Art
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 04, 2026
IRC logs for Friday, September 04, 2026
The Legal Services Board (LSB) Takes on Solicitors Regulation Authority (SRA) for Utter Failures, We'll Resume Our SRA Series to Illuminate How Bad the SRA Really Is
a quick overview of the latest news
Links 04/09/2026: Notorious Patent Trolls' Judge Enters the Private Sector (Corruption, Revolving Doors), Gloria Steinem's Life in Pictures
Links for the day
Gemini Links 04/09/2026: Worries, Upgrades, and CS Students
Links for the day
Richard Stallman's Web Site Back Online, But It Seems Like a 2-Months-Old Snapshot
Latest political notes are dated July 2 (2026)
SPAM Disguised as Benchmark or Comparison: The Register MS "PARTNER CONTENT" is Getting Weirder by the Month
Sites that promote fake 'coins' or pyramid schemes to their audience(s) aren't worth tolerating
PIPs at IBMs are Layoffs Because They're Impossible to Satisfy (or They Terminate Workers Despite Satisfying Them)
What insiders say
In the United Kingdom You Can No Longer Make the Assumption People Use Windows (or 'Smart' 'Phone')
As autumn arrives Microsoft faces a crisis
SLAPP Censorship - Part 171 Out of 200: Talking About Corruption and Violence Against Women
Today the Labour Party (UK) speaks about corruption
Warming Up for Investigative Journalism About the European Patent Office (EPO), Europe's Second-Largest and Probably Most Corrupt Institution in Europe
It continues to exploit diplomatic immunity for impunity
Microsoft Handing Out PIPs by the Thousands, Anxiety in GAFAM Building Up
Years ago I heard from people who pretended to be ill to avoid getting fired
BRICS in the Windows: Brazil's GNU/Linux Share (as Measured by CDN) Has Hit Highest Point in a Month
The largest Web CDN, Clownflare, sees GNU/Linux at 8.1% right now in Brazil
Corporate Media Will Always Glorify Its Owners (Corporations That Value Nothing But Capital)
Collecting "money" like it's a form of competition where they track "score"
We'll Never Do Slop!
Being against slop is not being "left behind"
Thieves Complain About the People They Steal From
"When you point the finger at someone, there are three fingers pointing back to you"
Links 04/09/2026: "The Rise of the Billionaire Lobby", the "Imperialist Delusions", and Digital Restrictions (DRM) From Nvidia
Links for the day
Buying From China
Nations must begin to speak about their digital sovereignty, which Free software is best equipped to grant and best positioned to assure in the face of outside resistance
GNU/Linux Continues to Grow in China
GNU/Linux reached its highest point in a month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 03, 2026
IRC logs for Thursday, September 03, 2026
Gemini Links 04/09/2026: Forgotten Realms Avatar Series and Slop Plagiarism's Footprint in Gopher/Geminispace
Links for the day