Bonum Certa Men Certa

Microsoft, Masking/Hiding Itself Behind Patent Trolls, is Still Engaging in Patent Extortion

Sleight of hand, but extortion is still extortion

Venice masks



Summary: A review of Microsoft's ugly tactics, which involve coercion and extortion (for businesses to move to Azure and/or for OEMs to preload Microsoft software) while Microsoft-connected patent trolls help hide the "enforcement" element in this whole racket

THE 'new' Microsoft is no different from the company we wrote about back in the "Boycott Novell" days; only the marketing/PR has improved. The patent strategy is still similar; we just don't see Ballmer's face anymore. He was at least honest about Microsoft's views about GNU/Linux. Nadella just shamelessly lies about those things.



"The patent strategy is still similar; we just don't see Ballmer's face anymore. He was at least honest about Microsoft's views about GNU/Linux. Nadella just shamelessly lies about it."Extortion using patents doesn't work as most people assume; people tend to believe that patents are being used only when there's a lawsuit. But no... that's not how it usually works. As United for Patent Reform has just put it: "A report by @marklemley @kentrichardson @elosf found a silent tax on #innovation: 70% of #patent-related threats didn’t result in litigation, meaning the costs of over-broad litigation never go to court."

For those who have patience and time (the Internet discourages reading of long articles), here is the paper from Professor Lemley, who is renowned for his strong views about patent aggression.

Abstract says:

How often do companies and individuals assert patents outside of litigation? No one knows for sure. The problem is that licensing negotiations and license deals that don’t result in litigation are almost invariably kept secret. The result is that patent litigation is like the proverbial tip of the iceberg – the observable piece sticking out of the water, but probably not all or even most of what there is. Various people have speculated that unlitigated (and therefore unobserved) assertions are a majority and probably as much as 90% of all patent enforcement.

We wanted to know how often companies were approached to take patent licenses without a lawsuit being filed. So we asked them. Using a simple survey, we got data from dozens of companies about how often they were sued, how often they were approached to take a license without being sued, and the characteristics of those licensing proposals. The result is the first real look at what goes on beneath the surface of patent enforcement.

We found that while patent litigation does not reflect everything that is going on, there was less unlitigated – and therefore unseen – patent enforcement than some of us had thought. Roughly one-third of all patent licensing efforts among our survey respondents end in litigation, significantly less than the 10% some had predicted. And, for the majority of respondents, about one half of the demands end in litigation. Our results allow us to get a handle on the actual size of the patent enforcement business and to try to estimate the total cost of responding to enforcement efforts. We offer some ballpark estimates of the cost of responding to patent assertions in Part III.

Our survey respondents are a significant segment of the economy, but they are far from all of it. And they differ in certain ways from companies as a whole. We hope to be able to expand the universe of respondents in a later round of surveys. In Part I we explain what we did. In Part II we explain what we found. And in Part III we consider some implications for business and public policy if we extrapolate our limited results to the broader economy. Under plausible assumptions, responding to patent assertions costs defendants between $80 and $100 billion per year.


This brings us to Microsoft; Microsoft not only pressures companies to pay money by threatening to sue them using patents; Microsoft is often siccing patent trolls (which it arms) on companies that refuse to play along. That's racketeering; it's like the Mafia burning down houses and businesses of those who refuse to pay 'protection' money. That's just how extortion works, but Microsoft burns the victims' money (legal fees) rather than the actual businesses (although they too will go up in flames if legal fees result in bankruptcy).

"Microsoft not only pressures companies to pay money by threatening to sue them using patents; Microsoft is often siccing patent trolls (which it arms) on companies that refuse to play along."In the "Boycott Novell" days Microsoft was threatening companies that did not buy (i.e. pay Microsoft for) SUSE. SLES was the only 'Microsoft-authorised' distribution of GNU/Linux at one point. And now, instead of SLES/SLED what we have is Azure. Microsoft threatens those who do not pay Azure 'rents' that patent trolls (which Microsoft passes patents to) might come along and destroy their business. It's the "cloud" equivalent of the Novell plot. IAM has just published this self-promotional 'report' that says "litigation involving cloud technologies has increased by 700%" (well, they just made up the term "cloud" and now everything that already existed is called "cloud"). Here is what they said, linking to an older 'article' (promotion) of theirs:

A recent study revealed that US patent litigation involving cloud technologies has increased by 700% over the past four years (for further information please see “Cloud computing patent litigation on the rise”)


Microsoft relies on such 'articles' to sell fear and to attract businesses to Azure (out of sheer fear). At the same time, Microsoft is lobbying for software patents. Less than a day ago, for example, the BSA (using "Enterprise Innovation" as a platform) wrote in its capacity as a Microsoft front group: "Patent protections: Governments should have non-discriminatory protection for software patents."

"In the "Boycott Novell" days Microsoft was threatening companies that did not buy (i.e. pay Microsoft for) SUSE."Well, actually it seems like only China offers that now. But Microsoft would like to change that. The extortion heavily relies on it.

Lost in the midst of Microsoft puff pieces about patents (see one of the latest examples) is this original announcement from Microsoft about extending the reach of the 'protection' racket.

"Microsoft relies on such 'articles' to sell fear and to attract businesses to Azure (out of sheer fear).""Excited to announce that we are extending the Microsoft Azure IP Advantage #patent protection program to our Azure Stack customers," wrote the person in charge of it. Yes, Microsoft is very "excited" about patent extortion against GNU/Linux. They just say it with a smile and euphemistically call it "Azure IP Advantage". This is already being covered by longtime Microsoft boosters. Kurt Mackie, for instance, said that the ""springing license" reference means that the patents that Microsoft may transfer to other companies under this program can't be used to make IP claims against other Azure customers."

As Microsoft also controls some of the trolls, it can help determine who gets sued. The potential for abuse is vast.

"Microsoft paid a lot of money for the Linux Foundation to not intervene and simply pretend that "Microsoft loves Linux" (while it's taxing it and attacking it using patents)."Don't expect Red Hat or Canonical or even the Linux Foundation to say anything about it. The Linux Foundation is far too busy sucking up to Microsoft this week, having received Microsoft cash for silence and complicity. Even when Microsoft attacks Linux with patents the Linux Foundation will say nothing at all because these attacks often come from proxies, just as the OIN's CEO warned us a long time ago. One such proxy is Finjan. Microsoft patent trolls like Finjan are held up as good examples at Watchtroll this week not because they create anything but because they're targeting Microsoft's rivals (every company except Microsoft, which supported Finjan since its early days).

The latest case, Finjan v Blue Coat Systems, is a case that we wrote about on Monday. Banner & Witcoff's Aseet Patel and Peter Nigrelli have just said the following about the case, citing a Microsoft case in favour of software patents (Enfish):

There are several takeaways from Finjan. xi Notably, building on its precedent in Enfish, the Federal Circuit has reaffirmed that purely software-based inventions that do no interact with the tangible world remain patent-eligible subject matter. Moreover, the Finjan court’s reasoning reiterates the importance of drafting a patent specification that showcases and contrasts inadequacies of prior art solutions. Finally, Finjan underscores the continuing importance of claim construction in obtaining a favorable patent-eligibility holding—even more so when the claimed method only recites three steps.


Finjan's trolling being used to support and promote the software patents agenda? Surely convenient for Microsoft. We expect to hear a lot more about this troll's lawsuits and hear nothing at all from the Linux Foundation. Microsoft paid a lot of money for the Linux Foundation to not intervene and simply pretend that "Microsoft loves Linux" (while it's taxing it and attacking it using patents).

Recent Techrights' Posts

The Cyber Show on How Data is Misused and Broadcast is Abused to Crush Resistance to Harmful Technology
We recently published a number of articles about how Computer Science is coming under attack
Assessing the "Worth" of a Life
Don't let blunt plutocrats decide whether Venezuelans deserve sympathy or not
More Weight of IBM's Stock is Ascribed to Lies and Things That Do Not Exist
Turning stones into gold?
SLAPP Censorship - Part 118 Out of 200: Exposing Crimes is Not a Crime, It is a Public Service
We will soon enter the sixth year of lawfare
 
Microsoft Falls to Lowest Value Since 2023
Microsoft can come back down to somewhere below $100
This Could be the Start of Microsoft's Biggest Wave of Layoffs in 50+ Years
This is what it looked like for Intel a few years ago
The Register MS is Promoting a Pyramid Scheme for Money, But It Is Over 6 Million Pounds in Debt
How much lower can the reputation of this publisher sink?
Gemini Links 25/06/2026: Unix-like People and NeoGeo
Links for the day
Members of the Delegations in the EPO's Administrative Council Told That Amid Unrest Campinos Must Go; a Year of EPO Strikes Means It's Time to Change Leadership
Which strategy is needed for the European Patent Organisation?
Increasing Participation Rates in Staff Representatives' Elections at the European Patent Office (EPO)
The industrial actions seem to have brought colleagues closer together
Microsoft's Mass Layoffs Have Already Begun (Could Not Wait 'Til July)
Microsoft's biggest layoffs round in 50+ years?
Planning 20-Year Techrights Event
Interested people can contact us in IRC
Links 25/06/2026: Earthquakes Strike Venezuela, Conflict of Interest in Kangaroo Court UPC
Links for the day
Links 25/06/2026: "Why We Need Seed Legislation" and XBox Chaos Predicted by Insiders
Links for the day
Gemini Links 25/06/2026: Hobbies Change, Young love, Strange Encounter, and Raspberry Pi Zero W
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 24, 2026
IRC logs for Wednesday, June 24, 2026
Don the Con Meets the Conman From IBM, Shares of IBM Continue Sliding Some More
The "Quantum" hype did not last long [...] PIPs are the new layoffs
Retaliatory Whistleblowing Expected at Microsoft During or After the Mass Layoffs
Retaliatory behaviour by Microsoft will backfire
Gemini Links 24/06/2026: Heatwave, Steam Next Fest, and Year of Buying Guitar Pedals
Links for the day
Links 24/06/2026: China Tops "TOP500", Impact of Microsoft’s Massive Layoffs Extends Further, Internet Society's Community Snapshot
Links for the day
While Thousands at IBM Lose Their Jobs ("Silent Layoffs") IBM's CEO Goes Begging the Dictator for Bailouts, Based on Deliberate Lies About "Quantum"
Many who claim to be retiring are only in their 40s and 50s. They're too proud to publicly admit what IBM did to them.
European Patent Office (EPO) Series: London Calling...
EPO Vice-President in charge of the "Patent Granting Process" is likely to have been a pay-off for the support which the UK gave to Campinos in 2017
Faking Productivity With Slop and Wasting Money on Faking 'Productivity': A Microsoft Story
If the quality of everything at Microsoft goes down
IBM Sends Workers 'Packing', Sometimes With the "Low Performer" Label That Imperils Their Future
To many people out there, IBM correlates with deceit
Links 24/06/2026: Four-Day Workweeks, GM Cut 1,000 Workers at Its EV Plant, 21,000+ Oracle Layoffs
Links for the day
A Step in the Right Direction (EU) in the Fight Against LLM Slop From GAFAM (US)
We've already mentioned this in Daily Links, but let's discuss this a little further
SLAPP Censorship - Part 117 Out of 200: Libel Tourism or Defamation Forum-Shopping in the United Kingdom Condemned by the European Union (EU)
Last week we reminded readers that the EU had criticised UK defamation law
Demonstration Next Week at the European Patent Office (EPO), Administrative Council Seen as Complicit
Corruption in Europe hurts all of us
IBM is Now Hinged on False Accounting and False Promises
This is the legacy of the current CEO
"PARTNER CONTENT" or 'Content Farms' That Promote Slop and Misinformation (The Register MS)
The Register MS represents a big part of the problem we all face
Wikipedia - Like Some Free Software Projects Infiltrated and Bribed - Bans Its Own Founder
Over the years we've named (not shamed) some projects and organisations that got corrupted by money and ended up banning their own founders
Turn Off the Slop, It's Wasting Energy and Destroying the Planet (the Only Planet We Have)
Right now we see lots of headlines about energy shortages and drained-up reserves
Lessons From Almost 30 Years of Site-Building Activities
We still strive to become faster and lighter
Do Not Outsource (the Seductive Mirage)
Abandoning so-called 'conventional wisdom'
Media Complicit in IBM Fraud Meant to Prop Up the Share Price Based on Lies, Fabrications
Even IBM insiders are fuming at this
The “Aktion T4” at the European Patent Office (EPO) Saves Money for the President's Own Purse
Call for parents of children with special needs
In Some Countries, Windows Has Lost Its Monopoly
Windows fell to an all-time low globally this month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 23, 2026
IRC logs for Tuesday, June 23, 2026
Gemini Links 24/06/2026: Motivation, PostScript Printer, and Why Hyperscalers and the Smolnet are Compatible
Links for the day
The Media's "Satya Says" Syndrome Distracts From Grim Reality
how insiders see Microsoft slop
Oracle's Collapse Has Nothing to do With Slop, It's About Its Debt Exploding by Almost 50% in Just 12 Months
How are people meant to trust the media?
SLAPP Censorship - Part 116 Out of 200: 5 Years of Multiparty Lawfare Against Techrights, Funded by Americans and Also by Third Parties (Including Microsoft Salaries)
The public and our government will be informed in full
Now... a Word From Our Sponsor
Powerade
Links 23/06/2026: Microsoft Studio Closures and Journalism Subjected to Further Cuts
Links for the day
Gemini Links 23/06/2026: Gardens, Basketball, Blocking Hyperscaler, and New Commodore Phone
Links for the day
Links 23/06/2026: Apple Price Hikes and Technical Debt in Slop
Links for the day
After IBM's Shares Collapsed the CEO is Trying the "Quantum" Trick Again, Bolstered by a Demented Dictator in the White House
from what we can gather IBM's CEO is trying to get the US government to participate in the scam
Greece Ought to Curb the Threat of Social Control Media
its national discourse seems to be run by an American company called Facebook
State of the GNU/Linux Desktop (and Laptop)
The time to advocate GNU/Linux is now
The 'XBox Narrative' Distracts From Destructive Cuts Across the Whole of Microsoft
Microsoft is preparing to lay off a likely record-breaking number of people [...] this isn't just an XBox problem
SLAPP Censorship - Part 115 Out of 200: Spending the Next Decade Writing About SLAPPs and Trying to Fix the System
It's the same industry that got paid by corrupt EPO officials to try to cover up the corruption
Microsoft's Stock Fell Nearly $200, But the Real Problems Are Just About to Begin
if they dump slop, what will they tell shareholders?
The Cyber Show on Starmer and Software Freedom
The Cyber Show's Andy has just explained why our departing national leader wasn't all bad
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 22, 2026
IRC logs for Monday, June 22, 2026
Gemini Links 23/06/2026: Girlrotting, Homeworlds at BGA, Slop Ruins Sites
Links for the day