Bonum Certa Men Certa

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

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

Recent Techrights' Posts

Mass Layoffs at Microsoft, March 2026
When will the media properly investigate this?
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part IV - Escalating to Ministers, Explaining the Severity of These Matters
British Sovereignty at Stake
Garrett Announces LibreLocal Instance in Northampton, Massachusetts (USA)
his message was the only one last month
 
Geminispace Continues to Grow
Geminispace Will Soon Have 5,000 Capsules
Very Little Slop About "Linux"
We hope to see slop eradicated by year's end
BBC Lied for Its Longtime Sponsor (Bribes for 15+ Years) Bill Epsteingate, in Effect Covering Up Sex Trafficking of Underage Girls
The state of the media is truly awful
Microsoft GitHub is Not Free Hosting and It Won't Last
Not for much longer [...] Microsoft is afraid to say that it is pulling the plug, but it seems inevitable
"The Lost Generation" Came Back, This Time Literally
Based on my limited experience with young people ("alphas"), they're lost
IBM is Not Likely to Survive Another Decade
Despite having already survived over a century [...] Last week we saw claims that some company would likely acquire IBM for its remaining assets
IBM Has Just Been Sued Again by Its Own Staff (This Time a Manager, Stephen P. Gutierrez)
IBM's behaviour towards its staff can prove costly
When a Company Says Its Layoffs are "Due to AI" Check the Debt (Typically the Real Reason for Mass Layoffs)
The mass layoffs at Microsoft continue, but Microsoft hides those in some of the same ways IBM does
Doing More With Less
primacy of concepts rather than bells and whistles
Andy and Helen in Cybershow on Divesting From the United States' Technology and Politics
It is no longer considered a taboo to say this and it's not "anti-American" because many Americans can relate to and agree with such criticism
Links 10/03/2026: "GEMA v. Suno Copyright Case" and "Valve Faces PRS Lawsuit Over Allegedly Unlicensed Steam Music"
Links for the day
Gemini Links 10/03/2026: Woods in UK, Slop Laziness, and "Small Technology and Small Economic"
Links for the day
Microsofters' SLAPP Censorship - Part 8 Out of 200: Gross Misuse of UKGDPR to Protect the Agenda of American Back Doors (Mass Surveillance)
Responding to bunk claims regarding UKGDPR and claims of 'analytics' in our sites
Links 10/03/2026: Oil Prices Rising, South Korean/US Military Assets Redirected
Links for the day
Links 10/03/2026: Rust Rewrites by Slop "20,171 Times Slower", "You MUST Review LLM-generated Code"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 09, 2026
IRC logs for Monday, March 09, 2026
Attacks on Techrights Make Techrights Stronger and Attract More Whistleblowers to Techrights
The harder they attack us, the more productive we become
The Register MS Has Just Taken Money From Google (Where the Former Chief Editor Now Works) for Femmewashing and Ponzi Scheme Promotion
now The Register MS not only promotes a Ponzi scheme but also bags money to pretend Google respects women
People at IBM Are Still Smart Enough to Understand What's Really Going on
"I would never refer someone to work at IBM that I liked! I hope all of you have reviewed IBM on Glassdoor."
European Patent Office (EPO) to "Eventually Eliminate the Tasks Performed by Formalities Officers"; EPO Run by People Without Experience in Patents
full paper
RMS is 73 Next Week
Richard Matthew Stallman (RMS) turns 73 exactly 7 days from now
Iran & FSFE: blackmailing women, from football to the French Government (CNIL)
Reprinted with permission from Daniel Pocock
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part III - Very Strong Legal Basis for an Appeal
The case is now being escalated to a Foreign Secretary and former Deputy Prime Minister
Police investigations, lawsuits & Debian leader election candidate shortage
Reprinted with permission from Daniel Pocock
Richard Stallman (RMS) Has Defeated Cancel Culture, a Mostly American Phenomenon
RMS is talking now
No Slop Found in RSS Feeds, Only in Google News
No slopfarm will survive for very long, certainly it'll go bust as soon as readers (if it had any) know what it is
Links 09/03/2026: Many Security Breaches and a Pandemic of Censorship
Links for the day
People Who Work or Worked at IBM Hate It
bluewashing is only the first step
Richard Stallman (RMS) Talks in 30 Minutes, Next Stop Bern (Last Stop)
We assume he'll travel back to Boston after that
IBM's Fedora as a Booster of Slop Disguised as Code or Computer Programs
Maybe we should also stop seeing a doctor and instead ask chatbots about symptoms?
Richard Stallman (RMS) Talk Five Hours From Now
there is growing recognition for what he really did for everybody
What the Solicitors Regulation Authority (SRA) and Action Fraud UK Have in Common
Don't let London become the world's "crime capital"
EPO Strike 10 Days From Now, Planning Assembly Tomorrow, Last Couple of Strikes Had High Participation Rates (1,500-1,600 Staff Went on Strike)
The next strike is in 10 days' time and then there will be another strike
Dr. Andy Farnell on How GAFAM, NVIDIA and Others Lie to People Via the Sponsored Media to Prop Up Lies Under the Guise of "AI"
Lots of key aspects are covered
Links 09/03/2026: GAFAM Outsourcing, "MAGA Political Meddling" in EU, Indonesia Bans Social Control Media for Children Under 16
Links for the day
Using Slop (and Slop in Articles) to Attack Copyleft 'on Budget'
This article is pure BS from an anti-GPL and anti-RMS 'activist'
Why The Register MS Sold Out to Microsoft: They're Losing Lots of Money, The Register MS is Bleeding to Death, Based on Its Own Financial Records
With over 6 million pounds in debt (nearly 10 million US dollars) we guess it's likely some other company will take over the site (if it deems it worthwhile)
Microsofters' SLAPP Censorship - Part 7 Out of 200: Like With the Serial Strangler From Microsoft, Misuse of UK-GDPR to Try to Hide Embarrassing Facts
They do and say really bad things, then allege it's a "privacy violation" to mention those things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 08, 2026
IRC logs for Sunday, March 08, 2026
Gemini Links 09/03/2026: Exponentials and Tailscale
Links for the day
Sloppyleft
Article by Alexandre Oliva
Hard to Replace 'Human Touch'
The reason many people insist on using GNU
Richard Stallman Gives Talk in 20 Hours at Ostschweizer Fachhochschule Campus in Rapperswil-Jona
The talk is in English
The Slop Companies Gamble at Our Economy's Expense and They Know It's a Losing Bet (So It's a de Facto Robbery)
The crash of this bubble isn't just inevitable, it's already happening and receding sporadically because of false announcements about money that does not actually exist (to "buy time")
Suppressing Speech by Blackmail, the Iran Story
When Debian wanted to stage a seemingly legitimate election it needed to have more than one candidate running; so eventually the female partner of a geek rose to the challenge (had no coding skills at all, no technical history in Debian) and lost to the "incumbent German"
Too Focused on Buzzwords the Media is Paid to Saturate the Collective Mind With
Just because companies do really bad things in the digital realm does not imply "AI" or follow from "AI"
Discrimination and Prejudice Against Female Journalists
we can shame people who attack a reporter on the grounds of gender
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part II - Trying to Put People in Prison for Committing the Act of Journalism
This is abuse of process
Attack on Copyright and Copyleft by Code Conversion Is Nothing New, It Predates Slop (Code Produced by LLMs) by Several Decades
Even back in the 90s many people converted programs from one language to another. That could invalidate copyleft (and copyright), which already existed
Almost a Slopless Weekend for "Linux"
Let's hope slop will come to an end or sites will cease linking to slop
Insiders Explain Why IBM is Dying and the Inherent Culture Problem
There are many ways to shave this IBM cat
Links 08/03/2026: Microsoft Lost $400 Million on "Project Blackbird" and Half the States Sue Over Illegal Tariffs
Links for the day
Links 08/03/2026: Cisco Holes Again and "Blatant Problem With OpenAI That Endangers Kids"
Links for the day
Activism/Journalism in Our Blood
one must fight for one's principles
Gemini Protocol in Its Prime
What's particularly neat about Gemini Protocol is that it's fast and cheap
Microsofters' SLAPP Censorship - Part 6 Out of 200: Intentionally Misnaming Women, People Who Offered to Testify That They Too Had Been Subjected to Similar Abuse
Today it is International Women's Day
Even Fedora Leadership Cannot Figure Out the Microsoft Kill Switch/Back Door, 'Secure' Boot
It does not actually enhance security
Bruce Perens: Richard Stallman "Has Achieved His Goal"
Stallman's next talk is tomorrow
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 07, 2026
IRC logs for Saturday, March 07, 2026