Bonum Certa Men Certa

Microsoft's Patent Troll (IV) Helps Increase Microsoft Tax, BSA Changes Intellectual Monopoly Laws

Nathan Myhrvold



Summary: More analysis of Microsoft's 'Android tax', the involvement of its former CTO in patent extortion, and lobbying through front groups

TECHRIGHTS has spent several years covering and warning about Microsoft's aspirations to tax GNU/Linux -- an effort that began in 2006 when Microsoft signed a patent deal with Novell.



Novell has been sold and broken down into components that include SUSE. It did not take long for SUSE to become Microsoft sponsored (through cash injection), which works well for Microsoft because SUSE legitimises a 'Linux tax'. This is a very simple fact that Jos from OpenSUSE has been arguing with me about. It was actually Jan from Red Hat who came out in my support in the face of heckling from Jos, whose position is understandable given the company which pays his salary. Here he is speaking about openMind, an event which we are told has been hijacked or exploited by Microsoft and its friends to change perceptions (our source asked not to be quoted verbatim on this). "At the (pretty cool) openMind conference in Tampere, Finland," writes Jos, "it came up that a big advantage of Tumbleweed is that it always has the latest hardware support. Thanks to the rolling release, Tumbleweed comes with the latest Linux kernel which plays a big part of the hardware support of a Linux distro."

Just bear in mind that today's openMind is a pro-Microsoft event (as much as it can be given the "open") and this includes the Nokia which is tied to Microsoft and obviously suffers more massive layoffs this week, like most companies that enter Microsoft's nest. A couple of days ago we learned that following Microsoft's intervention inside Nokia, Intel too was moving away from MeeGo and establishing Tizen with the Linux Foundation instead. This is a success story to Microsoft, which managed to paralyse a great GNU/Linux distribution for mobile devices, vehicles, etc. That's just the way Microsoft operates. When it comes to Android, Microsoft has become a major parasite and SJVN writes that: "According to a Goldman Sachs‘ tech analyst note, as reported by Business Insider, that’s exactly how Microsoft is cashing in on Android. Goldman Sachs estimates that Microsoft will pick up $444-million in revenue from its Android patent deals for fiscal year 2012. For those of you playing at home, that’s $3-$6 per Android device. Yes, that may well be more than Microsoft makes from its own troubled mobile operating systems." For code it never wrote at all; this cost is being passed to customers.

"This is a success story to Microsoft, which managed to paralyse a great GNU/Linux distribution for mobile devices, vehicles, etc."In a new article by Richard Hillesley he calls it a protection racket and the foreword explains: "Software patents are a racket for the protection of incumbent cartels and monopolies against innovation and competition, says Richard Hillesley

"The casual observer could be excused for believing that litigation and teams of lawyers were the largest part of technical innovation in the computing industries, such has been the part played by litigation and threats of litigation around patents, copyrights and trademarks during recent years.

"Litigation has become a highly profitable way of doing business. Big money can be made for a relatively small outlay and litigation predicated around the “ownership” of ideas, patents and copyrights requires minimal investment in staff, research, manufacture or the trading of hard goods.

"In fact all these activities have become superfluous in some areas of industry where possession of “Intellectual Property” has become the primary objective of trading. Pick the right target to make a claim against and the chances are that they will pay up before it gets to court. Throw enough patents at the competition, and you can slow them down. Make a patent stick and you can make a lot of money."

More people need to change this emerging status quo, which normalises atrocious behaviour and makes it "business as usual". As ECT put it, "Samsung, Microsoft Deal Tugs at the Rug Under Google's Feet" because Google was never even given the chance to defend its own platform from this extortion. We wrote about it yesterday and showed that media distortion makes things worse, with Microsoft boosters portraying it as an acceptable transaction and a matter of obeying the law rather than actually breaking it. Larry Dignan writes that "Microsoft cements position as Android's patent toll collector" and in curious spin from Murdoch's press it is claimed that "Samsung also will work with Microsoft to develop smartphones and tablets based on Microsoft's Windows software."

"More people need to change this emerging status quo, which normalises atrocious behaviour and makes it "business as usual"."The article contains a lot of euphemistic language and regarding Windows at Samsung, this is not new. Microsoft did the same thing after it had signed the Android patent deal with HTC. Here is an example of a very poor headline from the corporate press. Microsoft goes around the room threading to sue companies and this is somehow being portrayed as a legitimate practice.

Meanwhile it turns out that Wistron, which Microsoft extorted recently, is now coughing out money to Microsoft's patent troll as well. To quote: "Wistron Corporation and Intellectual Ventures (IV€®) announced today that they entered into a license agreement. The deal provides Wistron with access to IV’s extensive patent portfolio of more than 35,000 IP assets, and also provides them membership in IV’s IP-for-Defense program. Wistron is among the world’s largest original design manufacturer (ODM) companies producing information communications technology (ICT) products."

This is just a troll to be paid to the world's biggest patent troll, Intellectual Ventures. Why should this be tolerated? Where is the value to the industry and to customers?

As pointed out in a new comment on an article about Google, "software patents are doing more harm then google is. remove the patent system and go back to software copyrights and all will be well again. I find it very funny that microsoft railed against software patents early on until they had acquired a large amount of them, then they rallied for software patents. now they are getting bit by their own snake as software patents are killing innovation.

"If Google had given equally to republicans, this issue would never have come up."

This whole patenting frenzy at Microsoft can even see in this week's headlines, some of which say that Microsoft strives to get more patent monopolies on phones [1, 2]. As we claimed earlier in the week, Microsoft's business plan is to sell mobile patent licences, not mobile phones. This would essentially make Microsoft qualify as a patent troll, as soon as it drops actual products due to poor sales.

For better coverage of the Samsung deal, see this Linux site. It is not saturated with euphemisms and spin.

Microsoft has been relying on a shift in law -- a shift that puts great focus on patents and copyrights maximisation, to the extent where one can claim to own someone else's code for merely achieving something similar. Based on the following new report, lobbying from the Microsoft front group, Business Software Alliance, has been considerable enough to reach about half a million dollars in publicly-disclosed spendings (the real numbers are usually orders of magnitude higher):

The Business Software Alliance spent $440,000 on lobbying on issues relating to cloud computing and other topics in the second quarter, down slightly from the year before, according to disclosure documents filed with Congress.

The organization lobbied Congress and various government agencies on issues concerning online privacy, patent issues, and criminal punishments for violation copyrights, it said in a disclosure report it filed July 20 with the House clerk's office. The alliance is an industry group that has an extensive focus on fighting software piracy.


In our Cablegate collection we have amassed some examples of BSA lobbying, some of which is indirect. This helps set the scene for Microsoft's patent extortion, not just so-called 'piracy' crackdowns.

Recent Techrights' Posts

Microsoft Actually in Trouble, Microsofters Unable to Obey Judges' Orders
For the second time in a week, Microsofters are unable to obey orders
Over at Tux Machines...
GNU/Linux news for the past day
Microsoft's Debt Exploded by 15.4 Billion Dollars in the Past 9 Months Alone (Despite All the Layoffs)
As of minutes ago, at 6PM on a Friday, the numbers are made public
LLMs as Attack Method Against Free Software and Programming
DDoS in "hey hi" (slop) clothing
 
Free Software is Not a Business Model
Go ahead, ask your friend, "how do you plan to monetise your children?"
When (Almost) One-Man Operations Are Disguised as Medium-Sized Companies
the CEO hides in the US (hiding from his ex-wives, 4 daughters from those wives, and Sirius staff that he defrauded)
LLM Slop Harms Real Literature, Real Web Sites, Real Journalism
LLM slop is a parasite and it'll run out of legitimate outputs
Upcoming OSI Scandal Series
The OSI is a rogue actor because it serves Microsoft in exchange for money
Slopwatch: The Issue Persists, But the Consensus in the Media Changes as Google Enrages It With LLM Plagiarism
We've meanwhile assessed the latest output from Linuxiac
IRC Proceedings: Friday, August 01, 2025
IRC logs for Friday, August 01, 2025
Links 02/08/2025: İstanbul Retail Inflation Reaches 42.48%, US FBI Opens Office in New Zealand
Links for the day
Gemini Links 02/08/2025: ZFS, LLM Hype, and Fake Modules
Links for the day
Links 01/08/2025: Health, Conflict, and Attacks on Freedom of the Press
Links for the day
Meeting (Webchat) With Maria Arranz Gomez, Florian Grundies, Jürgen Janda and Konstantinos Kortsaris Confronts EPO Management About Breaking Promises and Crushing Workers
The lack of consistent messages suggests plans other than what's advertised and the lack of consultation (secrecy) likewise
Links 01/08/2025: "The Great British Firewall" and U.S. Army Sponsors Palantir
Links for the day
For Second Day in a Row, Top Story in The Register MS is "Microsoft Says"
The editor in chief exercises control over everybody else
Stability and Reliability, Backward Compatibility
I don't fancy relying on social control media as "sources"
What "the News" Looks Like in 2025
The "says" (or "sez") phenomenon
History Will Be Distorted, Sometimes Intentionally, Under the Guise of Intelligence (Manipulated/Curated Slop)
Militarised misinformation or military-grade chaff is a national security threat, even domestically
Financial Engineering Companies: A Company Worth 4 Trillion Dollars Would Not Borrow 100+ Billion Dollars at Interest Rates Like Today's
Many headlines perpetuate the lie Microsoft had just 2 waves of layoffs
Microsoft is Googlebombing "Linux" While Paying Former News Sites to Publish SPAM
How much lower will IDG sink?
Google as a 'Bullshit Generator' Disguised as Intelligence
It'll probably cause Google to get sued a lot, both by individuals and companies
As Expected, Google in the UK Now Experiments With Slop Instead of Web Search
At this point more people ought to stop and think: Does Google's search engine deserve trust?
The Data You Don't Give Away is Your Advantage
stop sharing data that does not need to be shared
Being Obedient or Doing the Right Thing
The world always changes for the better because of people who think "Outside the Box", not the cogs
Gemini Links 01/08/2025: Happy Hacking Keyboards and New Gemini Arrivals
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 31, 2025
IRC logs for Thursday, July 31, 2025
Sabotaging Linux on Behalf of Microsoft With UEFI 'Secure' Boot (De Facto Remote 'Kill Switch'), Then Defaming, Stalking and Harassing Critics of 'Secure' Boot for 12 Years, Then SLAPPing Their Spouses and Them
The sorts of stubborn lunatics we've been dealing with
Moving on in Techrights, Geeks Gonna Geek
In the coming weeks we plan to focus (as we explained last week) on patents, GNU/Linux issues, and the occasional philosophical essays
Slopwatch: Google News Has Lost the Plot
Almost the majority of articles returned for "Linux" are fakes
Links 31/07/2025: Australia Restricts YouTube Access, Personal Privacy at Risk
Links for the day
Links 31/07/2025: Spotify Collapses and Spotify Now Forcing Some Users to Undergo Face-Scanning
Links for the day
A Lot of Supposedly "Successful" Businesses Are Just Debt-Racking Vessels Without Any Prospects of Financial Sustainability
The probability of bankruptcy of any business is more than 0%
theregister.com: The Voice of Microsoft US?
It basically sold out
Yes, You Can Love and Adore Things Whilst Also Criticising Them
Is society being divided and groomed/primed to be resistant to constructive criticism?
Links 31/07/2025: War in Ukraine, Security News, and Cyberattacks Against Journalists on the Rise
Links for the day
Gemini Links 31/07/2025: Fake Money and Gemini Diaries
Links for the day
An Illusion and Cult Worship of Magnitude (Ubiquity as "Victory")
GNU has been around for over 40 years and it'll likely continue to exist for another 40 (in some form)
Google: From Pointing to Relevant Sites to Pointing to Social Control Media to Actually Parroting Social Control Media as "Facts"
Google has become a misinformation company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 30, 2025
IRC logs for Wednesday, July 30, 2025