Bonum Certa Men Certa

Microsoft's Patent Offensive “a Sign They're Not Making Enough Money With Their Old Business.”

"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."

--The Economist, 1999



Summary: Analysis of Microsoft's transition into a bully that sues companies using software patents in order to make money; further evidence of software patents disdain, even from patent holders (monopoly owners)

UNDERNEATH the coat of hype, Microsoft is a fragile company with persistent layoffs and increasing debt. Nowadays, as we repeatedly show, Microsoft is attacking those who share Windows and claiming money from them. In essence, it is suing and extorting its very own distributors.



“What this really ought to be called is, extortion as a business model.”But Microsoft is not just suing and extorting its partners; its competitors too receive similar treatment. "A sign they're bleeding money" is how Rui Seabra explains it and he adds: "When a company starts using it's [software patents] portfolio regularly, it's a sign they're not making enough money with their old business."

Watch this gory metaphor from the headline of the 'Microsoft press' (about the Salesforce extortion): "Microsoft Draws Blood in Salesforce.com Patent Suit"

Glyn Moody asks: "old patents to block new ideas?"

What this really ought to be called is, extortion as a business model. Here is the article Moody was referring to:

Microsoft and Salesforce.com Patent Dispute - a Sign of Battles to Come?



[...]

It's also a sign that Microsoft is starting to cash in on its patent portfolio.

So, that leads to the next question:

What company is Microsoft targeting next?


Microsoft has resorted to patent racketeering [1, 2, 3, 4, 5, 6, 7]. How shameful. Apologists of Microsoft rarely defend this strategy, either. Here is Microsoft's booster Alexander Wolfe writing about the rush for patents. The Financial Times is producing similar patent propaganda by equating patents with progress (rather than hindering of one's progress). From the opening paragraph:

The north-east, birthplace of the steam train and Newcastle Brown Ale, is once again a hub for new ideas, generating more patents per person per pound invested in R&D than any other region of the UK over the past decade.


It is articles like this one which brainwash the public and have the public believe that patents are beneficial to the public rather than the biggest corporations (which use them to marginalise emerging businesses and artificially elevate prices).

Watch this good new article from Vivek Wadhwa, a co-author of several software patents. He is calling for such patents to be abolished in his new piece "Why We Need To Abolish Software Patents" (we mentioned his criticisms of patents last week as well [1, 2]):

During my tech days, I co-authored four software patents. Each cost my startup about $15,000—which seemed like a fortune in those days. I didn’t really expect these to give me any advantage; after all if my competitors had half a brain, they would simply learn all they could from my patent filing and do things better. But I needed to raise financing, and VCs wouldn’t give me the time of day unless I could tell a convincing story about how we, alone, owned the intellectual property for our secret sauce. We got the financing, and the plaques of the patents looked great in our reception area, so the expense was worth it. But there was definitely no competitive advantage.

[...]

New research by Berkeley professors Stuart J.H. Graham, Robert P. Merges, Pam Samuelson, and Ted Sichelman highlights the extent of this problem. They surveyed 1332 early-stage technology companies founded since 1998, of which 700 were in the software/internet space. Here is what they found:

* In software, only 24% of startups even bothered to file a patent. In medical devices, this proportion was 76%; and in biotech, 75%. Far more venture-backed companies file patents: in software, 67%; in medical devices, 94%; and in biotech, 97%. * Venture-backed companies also file more patents than others that file patents. They file, on average, 5.9 patents as against the all-company average of 1.7. In medical devices and biotech, this is 25.2 vs. 15.0 and 34.6 vs. 9.7, respectively.


Actually, VCs don't want software patents (at least those who have blogs) and they too -- like Wadhwa -- are enthusiastically citing the new study from Stuart Graham, Robert Merges, Pam Samuelson, and Ted Sichelman [1, 2, 3].

The world does not want software patents, but Microsoft does want software patents. What does that say about Microsoft's meaning to the world?

Recent Techrights' Posts

IBM Culling Workers or Pushing Them Out (So That It's Not Framed as Layoffs), Red Hat Mentioned Repeatedly Only Hours Ago
We all know what "reorg" means in the C-suite
 
Links 01/05/2024: Take-Two Interactive Layoffs and Post Office (Horizon System, Proprietary) Scandal Not Over
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 01, 2024
IRC logs for Wednesday, May 01, 2024
Embrace, Extend, Replace the Original (Or Just Hijack the Word 'Sudo')
First comment? A Microsoft employee
Gemini Links 02/05/2024: Firewall Rules Etiquette and Self Host All The Things
Links for the day
Red Hat/IBM Crybullies, GNOME Foundation Bankruptcy, and Microsoft Moles (Operatives) Inside Debian
reminder of the dangers of Microsoft moles inside Debian
PsyOps 007: Paul Tagliamonte wanted Debian Press Team to have license to kill
Reprinted with permission from disguised.work
IBM Raleigh Layoffs (Home of Red Hat)
The former CEO left the company exactly a month ago
Paul R. Tagliamonte, the Pentagon and backstabbing Jacob Appelbaum, part B
Reprinted with permission from disguised.work
Links 01/05/2024: Surveillance and Hadopi, Russia Clones Wikipedia
Links for the day
Links 01/05/2024: FCC Takes on Illegal Data Sharing, Google Layoffs Expand
Links for the day
Links 01/05/2024: Calendaring, Spring Idleness, and Ads
Links for the day
Paul Tagliamonte & Debian: White House, Pentagon, USDS and anti-RMS mob ringleader
Reprinted with permission from disguised.work
Jacob Appelbaum character assassination was pushed from the White House
Reprinted with permission from disguised.work
Why We Revisit the Jacob Appelbaum Story (Demonised and Punished Behind the Scenes by Pentagon Contractor Inside Debian)
If people who got raped are reporting to Twitter instead of reporting to cops, then there's something deeply flawed
Free Software Foundation Subpoenaed by Serial GPL Infringers
These attacks on software freedom are subsidised by serial GPL infringers
Red Hat's Official Web Site is Promoting Microsoft
we're seeing similar things at Canonical's Ubuntu.com
Enrico Zini & Debian: falsified harassment claims
Reprinted with permission from disguised.work
European Parliament Elections 2024: Daniel Pocock Running as an Independent Candidate
I became aware that Daniel Pocock had decided to enter politics
Publicly Posting in Social Control Media About Oneself Makes It Public Information
sheer hypocrisy on privacy is evident in the Debian mailing lists
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 30, 2024
IRC logs for Tuesday, April 30, 2024
[Meme] Sometimes Torvalds and RMS Agree on Things
hype around chatbots
[Video] Linus Torvalds on 'Hilarious' AI Hype: "I Hate the Hype" and "I Don't Want to be Part of the Hype", "You Need to Be a Bit Cynical About This Whole Hype Cycle"
Linus Torvalds on LLMs
Colin Watson, Steve McIntyre & Debian, Ubuntu cover-up mission after Frans Pop suicide
Reprinted with permission from disguised.work
Links 30/04/2024: Wireless Carriers Selling Customer Location Data, Facebook Posts Causing Trouble
Links for the day
Frans Pop suicide and Ubuntu grievances
Reprinted with permission from disguised.work
Links 30/04/2024: More Google Layoffs (Wide-Ranging)
Links for the day
Fresh Rumours of Impending Mass Layoffs at IBM Red Hat
"IBM filed a W.A.R.N with the state of North Carolina. That only means one thing."
Workers' Right to Disconnect Won't Matter If Such a Right Isn't Properly Enforced
I was always "on-call" and my main role or function was being "on-call" in case of incidents
Mark Shuttleworth's (MS's) Canonical is Promoting Microsoft This Week (Surveillance Slanted as 'Confidential')
Who runs Canonical these days? Why does Canonical help sell Windows?
A Discussion About Suicides in Science and Technology (Including Debian and the European Patent Office)
In Debian, there is a long history of deaths, suicides, and mysterious disappearances
Federal News Network is Corrupt, It Runs Propaganda Pieces for Microsoft
Federal News Network used to be OK some years ago
What Mark Shuttleworth and Canonical Can to Remedy the Damage Done to Frans Pop's Family
Mr. Shuttleworth and Canonical as a company can at the very least apologise for putting undue pressure
Amnesty International & Debian Day suicides comparison
Reprinted with permission from disguised.work
[Meme] A Way to Get No Real Work Done
Walter White looking at phone: Your changes could not be saved to device
Modern Measures of 'Productivity' Boil Down to Time Wasting and Misguided Measurements/Yardsticks
People are forgetting the value of nature and other human beings
Countries That Beat the United States at RSF's World Press Freedom Index (After US Plunged Some More)
The United States (US) was 17 when these rankings started in 2002
Record Productivity and Preserving People's Past on the Net
We're very productive these days, partly owing to online news slowing down (less time spent on curating Daily Links)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, April 29, 2024
IRC logs for Monday, April 29, 2024
Links 30/04/2024: Malaysian and Russian Governments Crack Down on Journalists
Links for the day
Frans Pop Debian Day suicide, Ubuntu, Google and the DEP-5 machine-readable copyright file
Reprinted with permission from disguised.work
Axel Beckert (ETH Zurich), the mentality of sexual violence on campus
Reprinted with permission from Daniel Pocock
[Meme] Russian Reversal
Mark Shuttleworth: In Soviet Russia's spacecraft... Man exploits peasants
Frans Pop & Debian suicide denial
Reprinted with permission from disguised.work
Hard Evidence Reinforces Suspicion That Mark Shuttleworth May Have Worked Volunteers to Death
Today we start re-publishing articles that contain unaltered E-mails