06.22.10

Gemini version available ♊︎

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

Posted in Finance, GNU/Linux, Microsoft, Novell, Oracle, SCO, SUN at 4:04 am by Dr. Roy Schestowitz

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

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.

DecorWhat Else is New


  1. Links 9/12/2021: Pgpool-II 4.3.0 and European Commission Releases Free Software

    Links for the day



  2. IRC Proceedings: Wednesday, December 08, 2021

    IRC logs for Wednesday, December 08, 2021



  3. Microsoft Corporation is Still Protecting a Violent Criminal Who Assaults Women (Employing Him as Manager, Protecting Him From Arrest, Paying Him a Salary)

    Ahead of court and amid arrest warrant Microsoft still deems this a good idea? Then again, this same company works for ICE, helping to kidnap babies from their mothers...



  4. Links 8/12/2021: Linux 5.15.7 Out, Linux Mint 20.3 is Near

    Links for the day



  5. Links 8/12/2021: Zorin OS 16 Milestone and Calculate Linux 22 Released; Kubernetes 1.23

    Links for the day



  6. A Call for Sources and Whistleblowers From Microsoft's GitHub

    Remarks on our publications from this morning and a call for more leakers and whistleblowers, who know GitHub better than anybody else (including lots of fools who still outsource all of their hard labour to Microsoft through GitHub)



  7. [Teaser] Rape is Not a Joke

    Having just uploaded a police report, we’re starting to move the ongoing series to the next phase, which will still be — for the most part — weekly installments on Mondays (for months to come)



  8. [Teaser] Meet Microsoft’s Chief Architect of GitHub Copilot, Balabhadra (Alex) Graveley (Updated)

    Alex Graveley, a serial abuser, has been protected by Microsoft; what does that say about Microsoft and about Nat Friedman, GitHub’s CEO whom Alex considers his "best friend"? Stay tuned as we have plenty more to show



  9. IRC Proceedings: Tuesday, December 07, 2021

    IRC logs for Tuesday, December 07, 2021



  10. Links 8/12/2021: FreeBSD 12.3, EasyOS 3.1.13, and WordPress 5.9 Beta 2

    Links for the day



  11. [Meme] EU Assurances

    The EPO‘s staff cannot be blamed for losing patience as elected public representatives completely fail to do their job (with few exceptions)



  12. Clare Daly (GUE/NGL) Does What Every Public Official in Europe Should Have Done About EPO Shenanigans

    There’s another (new) push to hold the EPO accountable, seeing that the overseers clearly do not do their job and instead cover up the abuses



  13. Links 7/12/2021: Firefox 96 Beta and Fedora 37 Abandons ARMv7

    Links for the day



  14. Links 7/12/2021: Plasma Mobile Gear 21.12 and Tails 4.25

    Links for the day



  15. All IRC Logs Now Available as GemText Over Gemini Protocol

    Today we've completed the transition from plain text over gemini:// to GemText over gemini:// for IRC logs



  16. IRC Proceedings: Monday, December 06, 2021

    IRC logs for Monday, December 06, 2021



  17. [Meme] Rowing to the Bottom of the Ocean

    The EPO‘s Steve Rowan (VP1) is failing EPO staff and sort of “firing” workers during times of crisis (not at all a crisis to the EPO’s coffers)



  18. EPO Gradually Reduced to 'Fee Collection Agency' Which Eliminates Its Very Own Staff

    Mr. Redundancies and Mr. Cloud are outsourcing EPO jobs to Microsoft and Serco as if the EPO is an American corporation, providing no comfort to long-serving EPO staff



  19. Linux Foundation 2021 Annual Report Made on an Apple Mac Using Proprietary Software

    Yes, you’re reading this correctly. They still reject both “Linux” and “Open Source” (no dogfooding). This annual report is badly compressed; each page of the PDF is, on average, almost a megabyte in size (58.8 MB for a report of this scale is unreasonable and discriminates against people in countries with slow Internet connections); notice how they’re milking the brand in the first page (straight after the cover page, the 1991 ‘creation myth’, ignoring GNU); remember that this foundation is named after a trademark which is not even its own!



  20. Links 7/12/2021: OpenIndiana Hipster 2021.10 and AppStream 0.15

    Links for the day



  21. Microsoft “Defender” Pretender Attacks Random Software That Uses NSIS for installation; “Super Duper Secure Mode” for Edge is a Laugh

    Guest post by Ryan, reprinted with permission



  22. Links 6/12/2021: LibreOffice Maintenance Releases, Firefox 95 Finalised

    Links for the day



  23. “Wintel” “Secure” uEFI Firmware Used to Store Persistent Malware, and Security Theater Boot is Worthless

    Guest post by Ryan, reprinted with permission



  24. No Linux Foundation IRS Disclosures Since 2018

    The publicly-available records or IRS information about the Linux Foundation is suspiciously behind; compared to other organisations with a "tax-exempt" status the Linux Foundation is one year behind already



  25. Jim Zemlin Has Deleted All of His Tweets

    The Linux Foundation‘s Jim Zemlin seems to have become rather publicity-shy (screenshots above are self-explanatory; latest snapshot), but years ago he could not contain his excitement about Microsoft, which he said was "loved" by what it was attacking. Days ago it became apparent that Microsoft’s patent troll is still attacking Linux with patents and Zemlin’s decision to appoint Microsoft as the At-Large Director (in effect bossing Linus Torvalds) at the ‘Linux’ Foundation’s Board of Directors is already backfiring. She not only gets her whole salary from Microsoft but also allegedly protects sexual predators who assault women… by hiring them despite repeated warnings; if the leadership of the ‘Linux’ Foundation protects sexual predators who strangle women (even paying them a salary and giving them management positions), how can the ‘Linux’ Foundation ever claim to represent inclusion and diversity?



  26. Microsoft GitHub Exposé — Part IX — Microsoft's Chief Architect of GitHub Copilot Sought to be Arrested One Day After Techrights Article About Him

    Balabhadra (Alex) Graveley has warrant for his arrest, albeit only after a lot of harm and damage had already been done (to multiple people) and Microsoft started paying him



  27. The Committee on Patent Law (PLC) Informed About Overlooked Issues “Which Might Have a Bearing on the Validity of EPO Patents.”

    In a publication circulated or prepared last week the Central Staff Committee (CSC) of the EPO explains a situation never explored in so-called 'media' (the very little that's left of it)



  28. Links 6/12/2021: HowTos and Patents

    Links for the day



  29. IRC Proceedings: Sunday, December 05, 2021

    IRC logs for Sunday, December 05, 2021



  30. Gemini Space/Protocol: Taking IRC Logs to the Next Level

    Tonight we begin the migration to GemText for our daily IRC logs, having already made them available over gemini://


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