Bonum Certa Men Certa

Microsoft's Patent Offensive “a Sign They're Not Making Enough Money With Their Old Business.”

"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."

--The Economist, 1999



Summary: Analysis of Microsoft's transition into a bully that sues companies using software patents in order to make money; further evidence of software patents disdain, even from patent holders (monopoly owners)

UNDERNEATH the coat of hype, Microsoft is a fragile company with persistent layoffs and increasing debt. Nowadays, as we repeatedly show, Microsoft is attacking those who share Windows and claiming money from them. In essence, it is suing and extorting its very own distributors.



“What this really ought to be called is, extortion as a business model.”But Microsoft is not just suing and extorting its partners; its competitors too receive similar treatment. "A sign they're bleeding money" is how Rui Seabra explains it and he adds: "When a company starts using it's [software patents] portfolio regularly, it's a sign they're not making enough money with their old business."

Watch this gory metaphor from the headline of the 'Microsoft press' (about the Salesforce extortion): "Microsoft Draws Blood in Salesforce.com Patent Suit"

Glyn Moody asks: "old patents to block new ideas?"

What this really ought to be called is, extortion as a business model. Here is the article Moody was referring to:

Microsoft and Salesforce.com Patent Dispute - a Sign of Battles to Come?



[...]

It's also a sign that Microsoft is starting to cash in on its patent portfolio.

So, that leads to the next question:

What company is Microsoft targeting next?


Microsoft has resorted to patent racketeering [1, 2, 3, 4, 5, 6, 7]. How shameful. Apologists of Microsoft rarely defend this strategy, either. Here is Microsoft's booster Alexander Wolfe writing about the rush for patents. The Financial Times is producing similar patent propaganda by equating patents with progress (rather than hindering of one's progress). From the opening paragraph:

The north-east, birthplace of the steam train and Newcastle Brown Ale, is once again a hub for new ideas, generating more patents per person per pound invested in R&D than any other region of the UK over the past decade.


It is articles like this one which brainwash the public and have the public believe that patents are beneficial to the public rather than the biggest corporations (which use them to marginalise emerging businesses and artificially elevate prices).

Watch this good new article from Vivek Wadhwa, a co-author of several software patents. He is calling for such patents to be abolished in his new piece "Why We Need To Abolish Software Patents" (we mentioned his criticisms of patents last week as well [1, 2]):

During my tech days, I co-authored four software patents. Each cost my startup about $15,000—which seemed like a fortune in those days. I didn’t really expect these to give me any advantage; after all if my competitors had half a brain, they would simply learn all they could from my patent filing and do things better. But I needed to raise financing, and VCs wouldn’t give me the time of day unless I could tell a convincing story about how we, alone, owned the intellectual property for our secret sauce. We got the financing, and the plaques of the patents looked great in our reception area, so the expense was worth it. But there was definitely no competitive advantage.

[...]

New research by Berkeley professors Stuart J.H. Graham, Robert P. Merges, Pam Samuelson, and Ted Sichelman highlights the extent of this problem. They surveyed 1332 early-stage technology companies founded since 1998, of which 700 were in the software/internet space. Here is what they found:

* In software, only 24% of startups even bothered to file a patent. In medical devices, this proportion was 76%; and in biotech, 75%. Far more venture-backed companies file patents: in software, 67%; in medical devices, 94%; and in biotech, 97%. * Venture-backed companies also file more patents than others that file patents. They file, on average, 5.9 patents as against the all-company average of 1.7. In medical devices and biotech, this is 25.2 vs. 15.0 and 34.6 vs. 9.7, respectively.


Actually, VCs don't want software patents (at least those who have blogs) and they too -- like Wadhwa -- are enthusiastically citing the new study from Stuart Graham, Robert Merges, Pam Samuelson, and Ted Sichelman [1, 2, 3].

The world does not want software patents, but Microsoft does want software patents. What does that say about Microsoft's meaning to the world?

Recent Techrights' Posts

This Week Fedora Celebrates Diversity, But It is Pushing Proprietary Software and Censorship
IBM openwashing, perception management, and reputation laundering gone awry?
EU 'Chat Control' Law is Already Discrediting the Stated Goals of GDPR
Equip kids with always-on always-connected microphones and double-sided cameras, just to be safe...
 
[Meme] EU Chat Control: The Problem is Too Much Privacy???
So what's with GDPR then? The EU is contradicting itself!
Lithuania: GNU/Linux Usage Climbs to Highest Level in Years
consistent abandonment of Microsoft
"Remarkably Little Had Changed."
Black or African American not even mentioned
Rumours That Nat Friedman (CEO) Was 'Fired' by GitHub/Microsoft
"Microsoft Refused to Fix Flaw Years Before SolarWinds Hack"
linuxsecurity.com: A Step in a Positive Direction
We hope that Guardian Digital and linuxsecurity.com will rectify the matter and persist with real articles
Links 20/06/2024: Somali Piracy Surges, Juneteenth Discussed
Links for the day
Gemini Links 20/06/2024: Gemini is 5 Today (Still No Gemlog Entry From its Founder)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 19, 2024
IRC logs for Wednesday, June 19, 2024
Morocco: GNU/Linux Surges From 0.1% to 4.21%
Microsoft has mass layoffs in Africa these days
[Meme] EU Chat Control II
Stuff like "Chat Control" means that GDPR will lose credibility and the true motives be rightly scrutinised/questioned
You're Only Proving Our Point, Sir
clearly obsessed with what we write
Just Because It Happened Over 20 Years Ago Doesn't Mean It's "Old News" or Stopped Happening
This strategy merely evolved
Thanking Solderpunk for 5 Years of Gemini Protocol
Long live Gemini Protocol and long live Solderpunk!
[Meme] He Who Controls the Boot
And licks the Microsoft boot
[Meme] systemd-recovery
Imagine "Linux" (Poetterix) becoming so unreliable that it needs factory resets
Almost Every Day This Month the GNU/Linux "Market Share" Grows in statCounter
Advocates like to see progress
Dawg, I Herd You Like Freedom
In the context of Software Freedom, little is ever said about free speech
Links 19/06/2024: Microsoft Faces Big Backlash, Bytedance Referred to US Department of Justice
Links for the day
Gemini Protocol Turns 5 in 15 Hours
Geminispace is still very much alive
OSI's Blog is Still 100% "AI" Nonsense Sponsored by Microsoft (the Authors Are Also Salaried by Microsoft)
The founder of the OSI no longer supports the OSI
Poland is Another Country Where Bing Lost a Lot of Market Share Since the LLM Gimmicks
down from 3.24% to 2.4%
Jean-Pierre Giraud, Possible Forgeries & Debian: elections, judgments, trademark already canceled, archaeologist
Reprinted with permission from Daniel Pocock
It Took Microsoft More Than 3 Years to Get a Quarter of Windows Users to 'Upgrade' to Vista 11 (3 Out of 4 Windows Users Still Reject It)
That is exactly what's happening right now
[Meme] The Empire
Don't be like Putin
They Want 'Transparency' Only for the General Public (Every Bit of Communication Available to the Government, Usually Via Corporations)
The EU might decide to effectively ban SSH
Justices Jeremy Johnson and Victoria Sharp to Decide the Fate of Julian Assange in About Three Weeks
Will he be back home in Australia by year's end?
Free Software Won't Fix Equality, But It Helps
Let's examine Free software in the context of: 1) money. 2) justice.
Treating Them as Teammates, Not as Political Props, Trophies, or Objects
Most of the world's people are women
Links 19/06/2024: SFTP and Gopher Milestone
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 18, 2024
IRC logs for Tuesday, June 18, 2024
US Surgeon General's Advice on Social Control Media (and "Smart" Phones) Seems Reasonable
People forget what the real world is about
Quiet at Planet Debian
planet.debian.org has not had any updates since 5 days ago
Belarus: Bing Fell From 1.1% to 0.6% Since Microsoft Started the LLM Hype (Yandex is 50 Times Bigger Than Bing)
Now enter Belarus
Morale at Microsoft Sinks to New Lows
The annual 'Employee Signals' survey showed a drop from 69% to 62% in positive responses
Microsoft Windows is Being Abandoned in the UK, Relative to Other Platforms (New All-Time Lows)
Windows at new lows
Links 18/06/2024: More Executives Leave Microsoft, Attacks on the Press in Russia and 'Exile'
Links for the day
[Meme] Always Livecasting
Wait Till Systemd-Recall
Australia: Bing Lost Market Share Since the LLM Hype ("Bing Chat")
Google rose, Bing went down
Gemini Links 18/06/2024: Unconscious Consumption and Firewall Autoban
Links for the day
[Meme] Canonical Has Basically Become Novell II
Today's Canonical...
While Everyone is Furious at Vista 11 (Over TPM, Recall and Other Malicious 'Features') Canonical is Selling It to People
So the only thing Canonical says about Windows is that you should give it a try?
Links 18/06/2024: Adobe and Internet Archive in Trouble
Links for the day
Peter Duffy Explains SystemD
Ein Volk, Ein Reich, Ein Führer!
[Meme] The Doyen and the Colonel
EPO continues to prioritise lawbreaking over knowledge
EPO Union Action: Next Week SUEPO The Hague and SUEPO Munich Talk About New Pension Scheme (NPS) and Salary Savings Plan (SSP)
So there are basically 32 days left for more people to intervene
[Meme] Wait Till Systemd-Recall
The only thing Linux still needs is a forensics backdoor
GNU/Linux Up This Month in India (or Why Famous Criminal Bill Gates Keeps Visiting Modi)
truth tends to catch up with people
Microsoft Poetterix is Work in Progress
Linux's New DRM Panic 'Blue Screen of Death' In Action
24/7 Work Discipline
it's not so much about how much (or how long) one works, it's about how one works and whether one feels comfortable doing it
Adamant Conformism is an Enemy of Science
"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 17, 2024
IRC logs for Monday, June 17, 2024
Links 18/06/2024: Further Mass Layoffs and Gemini Leftovers
Links for the day
At IBM, "Brownnosing is the Norm."
Many of these comments are from IBM insiders
Myanmar/Burma: Google Gains One Percent, Microsoft Loses One Percent Since the LLM Hype ('Bing Chat')
it's not hard to understand LLMs didn't replace real search and didn't replace Google, either
[Meme] KISS, not SAAS
Gemini Protocol turns 5 in exactly 2 days
Hostageware: The Threat of Clown Computing (or 'SaaS', Another Misnomer or Buzzword) to Computer Users Everywhere
This problem isn't limited to Free software adopters