05.25.07

Gemini version available ♊︎

The Economics of FUD

Posted in Courtroom, Deals, Deception, Finance, FUD, Intellectual Monopoly, Law, Microsoft, Novell, OpenOffice, Patents, Red Hat, SUN, Ubuntu at 9:13 pm by Shane Coyle

Once upon a time, I had opined that Microsoft’s true bounty in the Microvell deal was Novell’s complicity in Microsoft’s attempts to undermine the E.C. Decision and fines, and that the FUD was merely a bonus.

Apparently, I hadn’t any appreciation for just how much of an economic interest the monopolist has in using any and all means to defend their position for as absolutely long as possible. While reading through the Linux Foundation’s response to Microsoft’s recent patent saber-rattling, I was taken aback at the truly staggering sums involved:

In the time it will likely take you to read this article, Microsoft will have made $500,000 in net profit. It’s instructive to note that the majority of that profit comes from its Windows operating system and Office suite of business software. Not coincidentally, those are the two product lines most threatened by Linux operating systems and Open Office.

Given the high stakes involved, it’s not surprising that Microsoft would take steps to protect its turf. In fact, it makes perfect sense. Let’s face it: If you were making $1 billion a month, what would you do? Perhaps engage in rhetoric and hyperbole to generate some old-fashioned FUD (fear, uncertainty, and doubt)? Just looking at the numbers, it’s easy to see that even if the scare campaign merely delays a customer’s migration from Windows to Linux by a single day, Microsoft is $34 million dollars better off.

Think about that – just one week of Novell-Fueled FUD pays for all of those SUSE subscriptions (7 days @ $34M each = $238M, MS payed $240M for 350,000 SUSE subscription coupons). Each and every day that Microsoft has been able to use Novell’s capitulation to FUD Linux since November 9th 2006 has been pure profit.

Does anyone still really want to argue that Novell was the party of advantage, as evidenced by the relatively larger (but insignificant to Microsoft, as these number indicate) payment for the patent covenant?

As far as the statement from the the Linux Foundation, they have called on Microsoft ("a rational actor") to "work with the Linux ecosystem to restore confidence in the patent system by making sure they are issued only for truly unique, innovative, and novel functions that advance the state of the art." The statement also includes not-so-subtle reminders to Microsoft that they are not the only people to hold significant patent portfolios.

Joining in the patent cold war recently, on the side of Free Software and toting a significant and focused patent portfolio of their own, was Sun’s Jonathan Schwartz, who has pledged to rally to the aid of Red Hat and Ubuntu, if need be. (It should be noted that Sun engaged in a controversial deal with Microsoft back in 2004, in which Sun secured protection from potential IP claims regarding OOO by MS for only Sun StarOffice customers – sound familiar?)

Of course, neither Microsoft nor Sun want to truly test their spurious software patents in a court of law, but moments such as these allow us some insight into the dispositions, and motivations, of the "leaders" of the software industry.

In this case Microsoft, Novell and Sun all have a vested interest in the perpetuation of the software patent myth, and would prefer just an adjustment of the broken system.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

2 Comments

  1. Roy Schestowitz said,

    May 25, 2007 at 10:53 pm

    Gravatar

    Good take on the main issues.

    What I cannot understand if what Zemlin has described in the past as “admiration” (IIRC) for Microsoft. We have seen some shades of this in Mark Shuttleworth recently. All in all, they seem to be constructive as long as no exclusionary contract is involved.

    Zemlin: “We ask Microsoft to stop engaging in FUD campaigns that only serve to undermine confidence in the U.S. intellectual-property system. Instead, please work with us to make the patent system tighter, more reasonable, and efficient for everyone in the software business.”

  2. Shane Coyle said,

    May 25, 2007 at 11:04 pm

    Gravatar

    If you are in the software business (or looking to be), you may do well to invest heavily in OpenOffice.org development – it seems that whichever company is the primary contributor to the codebase gets a visit (and a check) from MS legal in exchange for your tacit acknowledgement of their "IP"

    If you haven’t any morals, it could be a winning business plan.

DecorWhat Else is New


  1. Links 17/10/2021: GhostBSD 21.10.16 and Mattermost 6.0

    Links for the day



  2. IRC Proceedings: Saturday, October 16, 2021

    IRC logs for Saturday, October 16, 2021



  3. [Meme] First Illegally Banning Strikes, Then Illegally Taking Over Courts

    The vision of Team Battistelli/Campinos is a hostile takeover of the entire patent system, not just patent offices like the EPO; they’d stop at nothing to get there



  4. Portuguese Network of Enablers

    Instead of serving Portuguese people or serving thousands of EPO workers (including many who are Portuguese) the delegation from Portugal served the network of Campinos



  5. In Picture: After Billions Spent on Marketing, With Vista 11 Hype and Vapourware, No Real Gains for Windows

    The very latest figures from Web usage show that it’s hardly even a blip on the radar; Windows continues bleeding to death, not only in servers



  6. [Meme] [Teaser] Double-Dipping Friedrich Rödler

    As we shall see tomorrow night, the EPO regime was supported by a fair share of corrupt officials inside the Administrative Council



  7. The EPO’s Overseer/Overseen Collusion — Part XIV: Battistelli's Iberian Facilitators - Portugal

    How illegal “Strike Regulations” and regressive ‘reforms’ at the EPO, empowering Benoît Battistelli to the detriment of the Rule of Law, were ushered in by António Campinos and by Portugal 5 years before Campinos took Battistelli’s seat (and power he had given himself)



  8. Links 16/10/2021: SparkyLinux Turns 10 and Sculpt OS 21.10

    Links for the day



  9. “Facebook Whistleblowers” Aside, It Has Been a Dying Platform for Years, and It's Mentally Perverting the Older Generation

    Guest post by Ryan, reprinted with permission



  10. [Meme] Microsoft Has Always Been About Control Over Others

    Hosting by Microsoft means subjugation or a slavery-like relationship; contrary to the current media narrative, Microsoft has long been censoring LinkedIn for China’s autocratic regime; and over at GitHub, as we shall show for months to come, there’s a war on information, a war on women, and gross violations of the law



  11. EFF Pushes for Users to Install DuckDuckGo Software After Being Paid to Kill HTTPS Everywhere

    Guest post by Ryan, reprinted with permission



  12. The Reign in Spain

    Discussion about the role of Spain in the EPO‘s autocratic regime which violates the rights of EPO staff, including Spanish workers



  13. [Meme] Spanish Inquisition

    Let it be widely known that Spain played a role in crushing the basic rights of all EPO workers, including hundreds of Spaniards



  14. Why You Shouldn’t Use SteamOS, a Really Incompetent GNU/Linux Distribution With Security Pitfalls (Lutris is a Great Alternative)

    Guest post by Ryan, reprinted with permission



  15. IRC Proceedings: Friday, October 15, 2021

    IRC logs for Friday, October 15, 2021



  16. Links 16/10/2021: Xubuntu 21.10 and DearPyGui 1.0.0

    Links for the day



  17. DuckDuckGo’s HQ is Smaller Than My Apartment

    Guest post by Ryan, reprinted with permission



  18. Post About Whether Vivaldi is a GPL violation Was Quietly Knifed by the Mods of /r/uBlockOrigin in Reddit

    Guest post by Ryan, reprinted with permission



  19. The EPO’s Overseer/Overseen Collusion — Part XIII: Battistelli's Iberian Facilitators - Spain

    The EPO‘s António Campinos is an ‘Academy’ of overt nepotism; what Benoît Battistelli did mostly in France Campinos does in Spain and Portugal, severely harming the international image of these countries



  20. From Competitive (Top-Level, High-Calibre, Well-Paid) Jobs to 2,000 Euros a Month -- How the EPO is Becoming a Sweatshop by Patent Examiners' Standards

    A longish video about the dreadful situation at the EPO, where staff is being ‘robbed’ and EPO funds get funnelled into some dodgy stock market investments (a clear violation of the institution’s charter)



  21. [Meme] Protecting European Patent Courts From EPO 'Mafia'

    With flagrant disregard for court rulings (or workarounds to dodge actual compliance) it seems clear that today's EPO management is allergic to justice and to judges; European Patents perish at unprecedented levels in national European courts and it should be kept that way



  22. Links 15/10/2021: Pine64's New PinePhone Pro and Ubuntu 22.04 LTS Codename

    Links for the day



  23. [Meme] GitHub Isn't Free Hosting, It's All About Control by Microsoft

    Deleting GitHub isn’t a political statement but a pragmatic decision, seeing how Microsoft routinely misuses its control over GitHub to manipulate the market



  24. With EPO 'Strike Regulations' Belatedly Ruled Unlawful, EPO Management May be Lowering the Salary Even Further by Introducing Outside 'Temps' or Casual Workers

    Institutional capture by an 'IP' (litigation) Mafia is nearly complete; with illegal so-called (anti) 'Strike Regulations' out the door, they're quickly moving on to another plan, or so it seems on the surface



  25. Links 15/10/2021: 95% of Ransomware Targets Windows

    Links for the day



  26. IRC Proceedings: Thursday, October 14, 2021

    IRC logs for Thursday, October 14, 2021



  27. The EPO’s Overseer/Overseen Collusion — Part XII: The French Connection

    The EPO‘s presidency (led by Frenchmen for nearly 15 years out of the past 18 years; Benoît Battistelli and António Campinos are both French despite their somewhat misleading surnames) is extremely unlikely to even be mildly scrutinised by the French delegates because of a web of nepotism and protectionism



  28. [Meme] Another Maladministration Meeting Comes to an End

    Did the EPO‘s overseeing body properly tackle Benoît Battistelli‘s illegal acts, authorised by that very same overseeing body? Don’t hold your breath as António Campinos continues to crack down on staff (maybe ILOAT will rule on it in 2030)



  29. Links 14/10/2021: LibreOffice 7.2.2, Happy Birthday to Jolla, Ubuntu 21.10, Devuan GNU+Linux 4.0, OpenBSD 7.0

    Links for the day



  30. [Teaser] What Miguel de Icaza Really Thinks of the CEO of Microsoft GitHub

    Following the opening of a new series about Microsoft GitHub we drop a little teaser today; we expect dozens of parts to be released in the coming weeks/months as facts are being validated and organised


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts