Bonum Certa Men Certa

Microsoft's Patent Troll (IV) Helps Increase Microsoft Tax, BSA Changes Intellectual Monopoly Laws

Nathan Myhrvold



Summary: More analysis of Microsoft's 'Android tax', the involvement of its former CTO in patent extortion, and lobbying through front groups

TECHRIGHTS has spent several years covering and warning about Microsoft's aspirations to tax GNU/Linux -- an effort that began in 2006 when Microsoft signed a patent deal with Novell.



Novell has been sold and broken down into components that include SUSE. It did not take long for SUSE to become Microsoft sponsored (through cash injection), which works well for Microsoft because SUSE legitimises a 'Linux tax'. This is a very simple fact that Jos from OpenSUSE has been arguing with me about. It was actually Jan from Red Hat who came out in my support in the face of heckling from Jos, whose position is understandable given the company which pays his salary. Here he is speaking about openMind, an event which we are told has been hijacked or exploited by Microsoft and its friends to change perceptions (our source asked not to be quoted verbatim on this). "At the (pretty cool) openMind conference in Tampere, Finland," writes Jos, "it came up that a big advantage of Tumbleweed is that it always has the latest hardware support. Thanks to the rolling release, Tumbleweed comes with the latest Linux kernel which plays a big part of the hardware support of a Linux distro."

Just bear in mind that today's openMind is a pro-Microsoft event (as much as it can be given the "open") and this includes the Nokia which is tied to Microsoft and obviously suffers more massive layoffs this week, like most companies that enter Microsoft's nest. A couple of days ago we learned that following Microsoft's intervention inside Nokia, Intel too was moving away from MeeGo and establishing Tizen with the Linux Foundation instead. This is a success story to Microsoft, which managed to paralyse a great GNU/Linux distribution for mobile devices, vehicles, etc. That's just the way Microsoft operates. When it comes to Android, Microsoft has become a major parasite and SJVN writes that: "According to a Goldman Sachs‘ tech analyst note, as reported by Business Insider, that’s exactly how Microsoft is cashing in on Android. Goldman Sachs estimates that Microsoft will pick up $444-million in revenue from its Android patent deals for fiscal year 2012. For those of you playing at home, that’s $3-$6 per Android device. Yes, that may well be more than Microsoft makes from its own troubled mobile operating systems." For code it never wrote at all; this cost is being passed to customers.

"This is a success story to Microsoft, which managed to paralyse a great GNU/Linux distribution for mobile devices, vehicles, etc."In a new article by Richard Hillesley he calls it a protection racket and the foreword explains: "Software patents are a racket for the protection of incumbent cartels and monopolies against innovation and competition, says Richard Hillesley

"The casual observer could be excused for believing that litigation and teams of lawyers were the largest part of technical innovation in the computing industries, such has been the part played by litigation and threats of litigation around patents, copyrights and trademarks during recent years.

"Litigation has become a highly profitable way of doing business. Big money can be made for a relatively small outlay and litigation predicated around the “ownership” of ideas, patents and copyrights requires minimal investment in staff, research, manufacture or the trading of hard goods.

"In fact all these activities have become superfluous in some areas of industry where possession of “Intellectual Property” has become the primary objective of trading. Pick the right target to make a claim against and the chances are that they will pay up before it gets to court. Throw enough patents at the competition, and you can slow them down. Make a patent stick and you can make a lot of money."

More people need to change this emerging status quo, which normalises atrocious behaviour and makes it "business as usual". As ECT put it, "Samsung, Microsoft Deal Tugs at the Rug Under Google's Feet" because Google was never even given the chance to defend its own platform from this extortion. We wrote about it yesterday and showed that media distortion makes things worse, with Microsoft boosters portraying it as an acceptable transaction and a matter of obeying the law rather than actually breaking it. Larry Dignan writes that "Microsoft cements position as Android's patent toll collector" and in curious spin from Murdoch's press it is claimed that "Samsung also will work with Microsoft to develop smartphones and tablets based on Microsoft's Windows software."

"More people need to change this emerging status quo, which normalises atrocious behaviour and makes it "business as usual"."The article contains a lot of euphemistic language and regarding Windows at Samsung, this is not new. Microsoft did the same thing after it had signed the Android patent deal with HTC. Here is an example of a very poor headline from the corporate press. Microsoft goes around the room threading to sue companies and this is somehow being portrayed as a legitimate practice.

Meanwhile it turns out that Wistron, which Microsoft extorted recently, is now coughing out money to Microsoft's patent troll as well. To quote: "Wistron Corporation and Intellectual Ventures (IV€®) announced today that they entered into a license agreement. The deal provides Wistron with access to IV’s extensive patent portfolio of more than 35,000 IP assets, and also provides them membership in IV’s IP-for-Defense program. Wistron is among the world’s largest original design manufacturer (ODM) companies producing information communications technology (ICT) products."

This is just a troll to be paid to the world's biggest patent troll, Intellectual Ventures. Why should this be tolerated? Where is the value to the industry and to customers?

As pointed out in a new comment on an article about Google, "software patents are doing more harm then google is. remove the patent system and go back to software copyrights and all will be well again. I find it very funny that microsoft railed against software patents early on until they had acquired a large amount of them, then they rallied for software patents. now they are getting bit by their own snake as software patents are killing innovation.

"If Google had given equally to republicans, this issue would never have come up."

This whole patenting frenzy at Microsoft can even see in this week's headlines, some of which say that Microsoft strives to get more patent monopolies on phones [1, 2]. As we claimed earlier in the week, Microsoft's business plan is to sell mobile patent licences, not mobile phones. This would essentially make Microsoft qualify as a patent troll, as soon as it drops actual products due to poor sales.

For better coverage of the Samsung deal, see this Linux site. It is not saturated with euphemisms and spin.

Microsoft has been relying on a shift in law -- a shift that puts great focus on patents and copyrights maximisation, to the extent where one can claim to own someone else's code for merely achieving something similar. Based on the following new report, lobbying from the Microsoft front group, Business Software Alliance, has been considerable enough to reach about half a million dollars in publicly-disclosed spendings (the real numbers are usually orders of magnitude higher):

The Business Software Alliance spent $440,000 on lobbying on issues relating to cloud computing and other topics in the second quarter, down slightly from the year before, according to disclosure documents filed with Congress.

The organization lobbied Congress and various government agencies on issues concerning online privacy, patent issues, and criminal punishments for violation copyrights, it said in a disclosure report it filed July 20 with the House clerk's office. The alliance is an industry group that has an extensive focus on fighting software piracy.


In our Cablegate collection we have amassed some examples of BSA lobbying, some of which is indirect. This helps set the scene for Microsoft's patent extortion, not just so-called 'piracy' crackdowns.

Recent Techrights' Posts

Using SLAPPs to Cover Up Sexual Abuse and Strangulation
The exact same legal team of the Serial Strangler from Microsoft and Garrett already has a history fighting against "metoo"
Adding the Voice of Writers to UK SLAPP Reform
The journey to repair antiquated (monarchy era) laws will likely be long
Slopwatch: A Cause for Hope, the Hype is Dying
For about a month we showed that becoming a slopfarm - for several weeks - resulted in utter failure and ruin for BetaNews
 
Links 12/07/2025: Jail in China for Homoerotica, South Korea Discriminates Against Old Workers
Links for the day
If Only Everything Was Rewritten in Rust, We'd Have No More Security Issues?
Nope.
Links 12/07/2025: Birdwatching and Fake/Misleading Wall Street 'Valuation' Figures
Links for the day
Gemini Links 12/07/2025: How to Avoid Writing, Apps for Android
Links for the day
EPO Staff Committee on Harassment in the Workplace
slides
EPO Takes More Money From Staff for Speculation (Pensions), Actuarial Study Explains the Impact
"The key change in this year’s Actuarial Study, due to cascading the new “risk appetite” from the financial study, is a significant increase of the total pension contribution rate of 5.7 percentage points, up to a total of 37.8%. This is driven by an unprecedented decrease in the discount rate of 105 bps down to 2.2%."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 11, 2025
IRC logs for Friday, July 11, 2025
Microsoft - Like IBM - Does the "Relocation" Tricks (Start Over Elsewhere, Then Get Sacked by Microsoft)
It is a "low blow" or a "dick move"
After the Free Software Foundation's Campaign to Raise Money Let's See Campaigns to Finish Off Microsoft (Vista 11, GitHub etc.)
Microsoft is in effect collapsing
Your Publications Have No Major Impact Unless or Until You "Get Some Heat"
we're on the right track
Links 11/07/2025: Censorship Worsening, 3D Printing Success Stories, UK and France Unite Around Nukes
Links for the day
Gemini Links 11/07/2025: Zorin OS and Scriptonite Updates
Links for the day
Links 11/07/2025: Hardware, Russia, and China
Links for the day
Links 11/07/2025: Intel Collapsing and Microsoft Resorts to Bribery to Push Slop Via Obligatory Education
Links for the day
The EFF Sided With the Team That Strangles Women and Tells Women to Kill Themselves
They say that apathy and inaction are a form of a "stance"
"Nat [Friedman] and [the Serial Strangler From Microsoft] Were Always Exceptionally Close," Says Former Housemate and Colleague
Now Alex (hiding behind another name when that suits him) not only attacks women but also people who merely report what he did to women
Exemplary List of Things That Are Not Artificial Intelligence or Even Intelligence
The "age of AI" or "era of AI" or "AI revolution" mostly boils down to rebranding, just like "the cloud"
New Letter From the European Patent Office Explains How the Office Plots to Grant Many Illegal Patents, a Self-Fulfilling Prophecy of 'Growth'
Open letter to Mr Rowan (VP1) and Mr Aledo Lopez (COO)
Abuse of Process
5RB is employing people who help violent men
What Microsoft's Nat Friedman and Microsoft Lunduke Have in Common
"Get in da car; No time to explain, loser"
Microsoft and IBM Don't Have Much of a Future (They Mostly Pretend at This Point)
IBM and Microsoft are in some ways alike but in many ways different
It's Not Just Twitter (or X.com) That's Dying, Microsoft's Equivalent is Dying Also
Unable to find a business model
GitHub Copilot Can Cause the Bankruptcy of GitHub to Come Sooner and GitHub to be Shut Down Just Like Skype
Some publicly available information suggests that even for each paid subscriber for plagiarism (LLM 'coding') GitHub Copilot still loses more money than it makes
Wayland is Bad for the Planet
If you use Wayland, it'll take you longer to accomplish tasks and you will consume more energy (or battery life)
Legitimising Those Who Sabotage You
Microsoft is a very malicious company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 10, 2025
IRC logs for Thursday, July 10, 2025
On Microsoft Layoffs
we might be looking at about 60,000 Microsoft layoffs since 2023
EPO Management Already Breaks Its Own Promise (Lie) on "Bringing Teams Together"
This gut-punching move happened just 2 days ago
Gemini Links 11/07/2025: Occupation of 2025 and "Old Man Yells At Soundcloud"
Links for the day
Our Lawsuits Against the 'Cancel Mob' (Ringleaders) Helped Reduce Anti-Free Software Online Abuse
That's not to say that lawsuits are the best way to handle terrible people. But that can help.
Tomorrow is the Last Day of the Fund-Raising Campaign of the Free Software Foundation (FSF)
They will probably extend the date, as usual
Fixing Patents in Europe, Little by Little (by Transparency and Reporting of Suppressed Facts)
Tomorrow and throughout the weekend we shall focus some more on the EPO
The Two Lies Microsoft is Telling in "the News" This Week (to Distract From Layoffs and Decreased Interest in Slop/Chaff)
Microsoft is run by liars and frauds who SLAPP critics
Tux Machines Already Destroyed SLAPPs
Attacks on the mere publication of GNU/Linux news won't be tolerated
PCLinuxOS is Available for Download Again
PCLinuxOS is important to us also because its founder, back then the partner of Susan, helped create Tux Machines more than 21 years ago
Links 10/07/2025: Microsoft E-mail 'Services' Collapse Again, "Yet Another Strava Privacy Leak"
Links for the day
Gemini Links 10/07/2025: Automating Git Repo Updates and Small Web 'Zine'
Links for the day
GNU/Linux Leftovers
mostly Linux stuff
Audiocasts/Shows: Going Linux, FLOSS Weekly, and RHEL Clones
3 new picks
We Are Already Fighting - With Considerable Success - SLAPPs in the UK
we intend to tell the full story
Bullies With Pens and Papers (or Apple Macs With Templates)
Not all barristers are evil, but there are perhaps "rotten apples"
Slopwatch: webpronews.com, linuxsecurity.com, linuxjournal.com
a pile of trash disguised as 'articles'
Links 10/07/2025: Linda Yaccarino Divorces MElonazi Site, Wildfires Hit Syria
Links for the day
The History and the Policy of the EPO's Stance on Breastfeeding (Corporate Monopolies Versus Babies' Health)
"The Case for Introducing a Breastfeeding Policy at the EPO"
Gemini Links 10/07/2025: Inventing Chords and "Nightmare Boss"
Links for the day
Igor Ljubuncic Once Again Shows That for Technical Reasons Wayland Still Sucks, Performs Considerably Worse Than What Existed for Decades
That is aside from compatibility factors and other crucial factors
Links 10/07/2025: "Apple Vs The Law" and Twitter Became Full Nazi Bar
Links for the day
Unable to Find Anyone to Work as Their Media Lawyer, Brett Wilson LLP Will Continue Losing Female Staff
What sort of sick person would wish to join Brett Wilson LLP to carry this baton?
Microsoft-Sponsored Propaganda Site Has Removed False 'Hit Piece' About Dr. Stallman (With Fake and Misrepresented Imagery) But Only After 4 Years
So they only removed that page some time around 2025, i.e. about 4 years after it had been published
Always Check Your Inputs
Garbage in, garbage out. Or wrong assumptions, wrong corollary.
Dan Neidle Said That Tax Evasion Facilitator Mr Zahawi (Working to Silence Bloggers Through Brett Wilson LLP) Targeted Not Only Him (But The Others Kept Quiet)
"Mr Neidle said after repelling Mr Zahawi he was contacted by bloggers and tweeters who had received similar threats. They deleted their work “and in most cases never commented publicly on anything again”."
SLAPP Funding Transparency Urgently Needed in the UK and Elsewhere (in Practice, Not Just in Theory)
Writing about crime - including Microsoft crime - is not a crime
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 09, 2025
IRC logs for Wednesday, July 09, 2025
Elodie Bergot Still Doing Illegal Things at the EPO, Based on the Local Staff Committee Munich
They keep taking away from the staff while compelling the staff to do illegal things