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

Richard Stallman Gives Talk in 20 Hours at Ostschweizer Fachhochschule Campus in Rapperswil-Jona
The talk is in English
 
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
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
Gemini Links 07/03/2026: Buying Woodland, Indra 1.3.0 Available, and LLM Exhaustion
Links for the day
The Harder They Attempt to Take Down This Site (and Take Away Liberties), the More People Will See This Site
We'll carry on as usual, as from sunlight comes justice
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part I - A Matter of National Security
Those people are Americans who try to advance the interests of American corporations by weaponising courts abroad
Why They Always Try to Shoot the Messenger (When the Message Harms Profits)
A matter of economics
Coinbase - Like Block - is in Huge Trouble, Its Debt Nearly Doubled in Half a Year
The real reason Block is collapsing is its debt
Starting Another New Series This Evening, It's About American Folly
today commences a series long in the making (years)
Nations Stand to Benefit From Gender Equality and Increased Participation by Women
International Women's Rights Day starts in about 6 hours in the UK
Microsoft is Losing It, Now It's Censoring Its Critics and Sceptics
Whether the measurements made by statCounter are accurate or not, the trends (long-term) typically make sense
WIRED (Conde Nast) Reviews Are Paid-for Marketing Spam, They Change Dates on Old 'Articles' to Make Them Look Relevant and New
The Web is fast becoming a burial ground for ads, trash, spam, and slop
Gemini Links 07/03/2026: Humour, Chilling, and Oversized 'Phones'
Links for the day
Cyber|Show by Andy and Helen Recommended by Techrights and Tux Machines
If your time is limited and you look for informative essays and shows (audio)
Links 07/03/2026: CJEU to Finally Examine Behaviour of the Illegal and Unconstitutional Unified Patent Kangaroo Court, Creative Commons (CC) Hosts Open Heritage Statement Event in Amsterdam
Links for the day
Microsoft's Thailand Problem
It's definitely not Windows
New Lows for Microsoft in Micronesia
GNU/Linux has shown some growth there too
Microsofters' SLAPP Censorship - Part 5 Out of 200: Clearly Not a Security Professional/Expert, Only Ever Pretending to be One
"The Claimant says he is “a computer security expert”, but his background and his track record in the education sense (genetics) does not support this assertion."
Links 07/03/2026: Fuel Already Running Low and "Economic Crisis of the Iran War"
Links for the day
The Corporate Media Repeated the Lies Told by Jack Dorsey ("AI" Hype), Now It Does the Same for Larry Ellison
Disregard the hundreds of headlines that say mass layoffs at Oracle are due to "AI" something
The Free Software Community is Gaining Momentum as Its Importance is More Broadly Realised
As long as "trendy" technology goes in a negative direction there will be a growing portion in society looking for alternatives
Spooking or Chasing Away Women (From Computer Science)
The status quo discourages women from even trying to study Computer Science and related disciplines
"IBM Has Changed So Much in the Last Decade to the Point It's Completely Unrecognizable."
IBM is a dying, rotting company with a morbid culture
The Register MS, Sponsored by Communist Party of China (CPC)
What will happen when the bubble crashes the economy?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, March 06, 2026
IRC logs for Friday, March 06, 2026
Gemini Links 07/03/2026: Coffee Problem, Marchintosh, Learning, and "Selectively Disabling HTTP"
Links for the day