Bonum Certa Men Certa

Calculating the Microsoft Patent Tax at Novell



"I've heard from Novell sales representatives that Microsoft sales executives have started calling the Suse Linux Enterprise Server coupons "royalty payments"..."

--Matt Asay, April 21st, 2008



Summary: Brian Proffitt, former Managing Editor of LinuxToday, looks at the amounts of money Novell extracts from SUSE users for Microsoft and Novell to share

YESTERDAY we commented on a report suggesting that the ridiculous SUSE coupons run out about 2 years before the Microsoft/Novell patent deal actually expires. Over at IDG, some of the numbers are put together but nothing is said about the fact that these are akin to extortion money -- funds that Microsoft is taking from GNU/Linux users for software patents it claims they infringe without giving any details and without obeying the law, which explicitly forbids software patents in the large majority of the world.



And what an investment it has been: an initial payment of US$348 million to Novell... with US$240 million tagged specifically for those infamous subscription certificates for SUSE Enterprise Linux to hand out or resell to interested customers. Indeed, this was the thrust of the SD Times article: that Microsoft is almost through passing these coupons out.

The thought that was actually provoked came from this sentence in the article: "A total of 475 customers have used an unspecified number of coupons, according to Microsoft."

This struck me as a very interesting figure, because after firing up XCalc, I figured out that if indeed just 475 customers have received these coupons, then Microsoft has essentially subsidized SUSE Linux Enterprise Server (SLES) deployments an average tune of US$505,263.16 per customer.

Keep in mind that while we have no idea of how many actual single- or multi-year subscriptions were actually used with these disbursements, we can get a very rough idea based on Novell's current pricing structure of how many boxes this may represent.


This means money to Microsoft, not just Novell. So how much in royalties does Novell make from each sale of Windows? None? And if so, then what kind of a relationship is this?

"Now [Novell is] little better than a branch of Microsoft"

--LinuxToday Managing Editor

Comments

Recent Techrights' Posts

Microsoft Windows Falls to All-Time Low of ~60% in Switzerland, GNU/Linux Among Top Gainers
What will it take for mainstream media (not just geeks' site) to cover it?
 
Enron Versus NVIDIA (the Cost of Circular Financing, or Funding Your Own Customers to Buy Your Products) - “The Inventory Paradox” or “The Vibe Revenue Admission”
Round-tripping (finance)
You Know "The Economy" is Fake When 6 Months After Oracle Says Debt-Saddled 'Open' 'AI' (Slop) Will Pay It $300,000,000,000 Oracle Says It Must Lay Off 30,000 Workers at 6AM
Oracle is in deep debt, which increased at a pace of almost 4 billion dollars per month lately
Free Software Will Outlive GAFAM
GAFAM is overhyped
Techrights Was Further Decentralised Three Years Ago
In 2020 we began working on IPFS stuff
The Military Attacks on Dubai Internet City as Reminder That GAFAM Isn't Safe (Disregard the "Nobody Gets Fired for Buying GAFAM" Mindset)
These are all realistic and foreseeable scenarios that GAFAM sceptics have long warned about
The Wars Aren't Ending, Now We See GAFAM Facilities Being Bombed
This is becoming a tech issue
Links 06/04/2026: Turning 34, Throwing Things Away, and Printing in GNU/Linux
Links for the day
Links 06/04/2026: Ex-Microsoft Engineer Explains Why Azure Fails, Germany Prepares for War
Links for the day
EPO "Cocaine Communication Manager" - Part XI - EPO Strike Enters Its Second Week, EPO Sheds Off Qualified Staff to Make Way for Nepotists
More than six months ago the "Cocaine Communication Manager" got arrested for cocaine use
Another Microsoft Outlook Downtime
Microsoft has sloppy code, it's not something suitable for mission-critical things
Week 2 of April IBM Layoffs Accelerate Based on Rumours
"Heard about Layoff at IBM"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 05, 2026
IRC logs for Sunday, April 05, 2026
Culture of Harassment Inside Microsoft, Says Former Director at Microsoft
listen to Microsoft insiders
Drone Strikes on Amazon (GAFAM) Datacentres Highlight Azure's Miniscule Share
Azure is failing
SLAPP Censorship - Part 35 Out of 200: How to Make ~10,000 Pound Sterling (13,220.50 United States Dollars) by Copy-Pasting and Editing 10 Pages
Today it's Easter Sunday, so we'll keep this part relatively short
Gemini Links 05/04/2026: Artemis II Mission Tracker, Meditation on Copyright, Alhena 5.5.5, "Gemini as the Final Frontier of Human Cognition"
Links for the day
Mainstream Media on "Practical Survivalism"
Suffice to say, panic buying begets more panic and price surges
Cloud Computing as a Cloud of Smoke (Your Hosting Provider is a "Legitimate" Military Target)
When a French datacentre went up in flames people joked that the "cloud" meant a cloud of smoke
Andreas Tille Congratulates Sruthi Chandran Before the Election for Debian Project Leader (DPL) is Even Over
Andreas Tille, the current Debian Project Leader (DPL) who has been in this role for nearly 24 months
When You Try to Change the World for the Better and Somehow They Find a Way to Say You Are the Villain
Don't be a fool. Don't fall for inversions of narratives.
Slop Was a Flop and Energy Crisis Will be Slop's Final Blow
Today we see no slopfarms in Google News
Links 05/04/2026: "Taiwanese Airlines to Hike Fuel Surcharges 157%" and Openly Racist Voter Suppression Starts in the US
Links for the day
Gemini Links 05/04/2026: Playing with Hyprland and Migrating Antenna Filters
Links for the day
Links 05/04/2026: "Confidential Computing" as Proprietary Bundle of False Promises and "The Web Is an Antitrust Wedge"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 04, 2026
IRC logs for Saturday, April 04, 2026
SLAPP Censorship - Part 34 Out of 200: The Necessity of Transparency, Illuminating Garrett's and Graveley's 'Tag-Team' Act, Misusing the British Docket (From Far Away in America) in Efforts to Hide Bad Behaviour
Transparency is paramount
Red Tape at Red Hat (IBM)
Now the guiding principles are the whims and moods of people who peddle buzzwords to manipulate IBM's share prices
The So-called 'AI' (Slop) Companies Will Have the Plug Pulled
It can vastly accelerate this bubble's implosion
Dr. Andy Farnell on a "Technology Plan B"
based around Free software
Windows Lows Across the Mediterranean
Judging by this month's data from statCounter
The Future of the Net is 'in Space'
Gemini Protocol is growing and GemText remains the same, so it's made to endure
Linux Foundation Profits From Scams, Fraud, and Grifting
Don't be misled by the name "Linux Foundation"
Too Hard for IBM to Keep Everybody Silent About How the Company Has Gone South
IBM is busy trying to keep disgruntled or ex workers silent using NDAs
Microsoft Transmits Malware and Back Doors to GNU/Linux Servers, Media Points the Finger at Everyone But Microsoft's Servers
Is Microsoft too poor to vet and check what it hosts and transmits?
Gemini Links 04/04/2026: "Fuzz Guy", "Reusing Old Computers with Arch Linux and DWM", and Bubble v10.0 Released
Links for the day
Links 04/04/2026: eBay Scam, "Music Publishers’ X Copyright Lawsuit Officially on Pause"
Links for the day
Links 04/04/2026: Social Control Media Verdict and Bans, Whistleblower (Axel Rietschin) Explains How "Microsoft Vaporized a Trillion Dollars"
Links for the day
Reaching the End/Event Horizon of LLM Slop
Are we moving towards a post-LLMs world?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 03, 2026
IRC logs for Friday, April 03, 2026
Gemini Links 04/04/2026: STXGE and Computer Relationships
Links for the day