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Open Sources | Rodrigues & Urlocker » Microsoft and Novell tell all (or not)

November 20, 2006 | Comments: (0)

Microsoft and Novell tell all (or not)

In an attempt to clarify just what Microsoft and Novell were thinking on that fateful day when they kissed and made up, both companies today issued statements to "the community." I'm never sure just who this "community" is anymore, but I assume they're geared toward all those who felt a bit cheated by the November Patent Surprise.

It's a very large community, indeed.

Anyway, you can find Novell's letter here, and Microsoft's is here. Interestingly, Novell's letter was prominent on its home page - you couldn't miss it. Microsoft's? You could hardly find it. I guess this says something about the relative importance of said "community" to the respective companies.

Novell's message is earnest, if a bit laughable at times:

Our interest in signing this agreement was to secure interoperability and joint sales agreements, but Microsoft asked that we cooperate on patents as well, and so a patent cooperation agreement was included as a part of the deal. In this agreement, Novell and Microsoft each promise not to sue the other's customers for patent infringement. The intended effect of this agreement was to give our joint customers peace of mind that they have the full support of the other company for their IT activities. Novell has a significant patent portfolio, and in reflection of this fact, the agreement we signed shows the overwhelming balance of payments being from Microsoft to Novell.
Um, yes, as I've pointed out, Novell gets most of the money in the patent deal, but they must think people are idiots to buy that it's because their patent portfolio is more significant than Microsoft's. About the only way that argument even gains the slightest bit of credibility is if somehow Microsoft purchased perpetual rights to Novell's Office-related patents.

As for agreeing not to sue each other's customers over patent infringement, this is truly noble of them. But I would have thought they'd gain the most from suing each other over patent infringement, not their customers. There isn't much money in suing customers. Not unless you're a patent troll.

As for Microsoft's message, it was FUD-as-usual:

Microsoft and Novell have agreed to disagree on whether certain open source offerings infringe Microsoft patents and whether certain Microsoft offerings infringe Novell patents. The agreement between our two companies puts in place a workable solution for customers for these issues, without requiring an agreement between our two companies on infringement.
In short, yes, Linux is chock-full of our IP, but we agree not to sue any of Novell's customers, but can't wait to sue everyone else (which would be just about everyone on the planet, including Novell's customers, since most enterprises will have different Linux distributions running internally).

Just what does anyone get from this covenant not to sue? Not much. The same customers who run SUSE Linux also run Red Hat, Ubuntu, Debian, etc. Of course, it's these same customers that will drop-kick Microsoft the minute it starts to sue the planet, just as the world shelved SCO when it started suing customers. So, please, Microsoft, the very best thing you could do for Linux and open source is to start asserting your "rights." I can't wait.

I respect that Novell means well by this agreement. It hasn't done well, but it means well. Microsoft? Not so much.

Posted by Matt Asay on November 20, 2006 08:29 PM


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Just because MS has a large patent portfolio, that doesn't mean they are valuable. A single patent can be worth more than the rest. Your statement that Novell's portfolio couldn't be more valuable because of size lacks credibility.

Posted by: anonymous coward at November 20, 2006 09:28 PM

Your total lack of understanding of business is shocking. You are calling on Microsoft to sue? Riiiggghhtt. You are missing it pal, big time. Keep talking about the "big community" and "sco" and all the other nonesense. For a suposed industry analyst you certainly can't see the forest from trees. Good luck.

Posted by: Glenn at November 20, 2006 10:02 PM

IMHO, Microsoft does not intend to sue.

Microsoft helps Suse become dominant Linux Distro and gets piece of the action and only has to worry about 1 competitor. Maybe with future purchase plans?

Novell grows and makes more moolah and no Microsoft worries.

win/win

Posted by: Tred at November 21, 2006 05:54 AM

The community is indeed large and more potent than MS or Novell realize (yet). MS buying Novell is not a possibility. The DOJ (especially the next under a Democratic administration) will not approve.
Novell will soon realize it will need to modify or rescind the deal as the storm is gathering . . .

Posted by: Wallace at November 21, 2006 07:55 AM

> Your statement that Novell's portfolio couldn't be more valuable ...

I didn't parse what Matt wrote the same way you appear to have. Anyhow, regardless of Matt's intended meaning...

I doubt that portfolio values were particularly relevant. That is to say, I doubt the values that could have been equitably calculated, independent of the Patent Cooperation Agreement, for the respective patent portfolios, were the major determining factor for the amounts of cash changing hands ostensibly due to the Patent Cooperation Agreement.


> You are calling on Microsoft to sue?

I would think twice before sabre rattling the way Matt appears to above.

A fight between Microsoft (or a proxy) and Linux companies would probably be big and nasty. It's reasonable to expect anarchism (or whatever you wish to call the free software model) to ultimately lose this battle or even the whole war to capitalism (or whatever you wish to call the non-free software model). HOWEVER...

Based on my experiences with Microsoft supporters and Free Software supporters, or whatever you wish to call them, I would strongly advise against a strategic reliance by anyone on rapprochement eventually working.

Furthermore, I think it's often good when fears, uncertainties, and doubts, harbored by people of good faith on all sides of important issues, are dissected (in this context that probably means litigated) sooner rather than later, lest those concerns be allowed to fester in the form of the contrived Fears, Uncertainties and Doubts beloved of many marketers and evangelists. To mangle a phrase I coined in the context of open government, "s/propaganda/proper gander/g". (Yes, I'm a brit.)

In this case, the important issues include ideas, value, effort, reward, property, collaboration, cooperation, outcomes, and so on, both within the software industry and far beyond, and these deserve to be properly aired.

In the foregoing sense, I entirely agree with Matt.


> Novell grows and makes more moolah and no Microsoft worries.

In my off-the-top-of-my-head analysis this deal works out well for MS no matter which way things go.

The bit that we pretty much know will happen is that, over the next few years, Microsoft will develop a substantial but focused pilot programme aimed at technically and culturally integrating a proprietary Linux solution.

(Fwiw, I'm guessing that they were already seeking a way to develop support for Linux, and a way to benefit financially from, and to a degree influence, its growth, without overly encouraging its growth.)

Having done this, what else happens?

Perhaps the Novell solution doesn't grow nearly as much as free software in general, and they conclude that their attempt at integrating Linux into their operations isn't providing them with sufficient control over the Linux market. If so, they know they've really tried the non-litigated way to orderly resolve their "intellectual property" concerns and it's that much clearer that they need to instead fight Linux to the death in court, no doubt using something akin to "defence of capitalism" as their mantra. Just knowing this -- that is, having ammunition to unambiguously commit more or less the entire company culture to this perceived reality of a fight to the death -- would be highly valuable in such a predictably emotional war.

Perhaps, instead, Novell grows roughly as fast as, or even faster than, Free Software in general. In this case they are in the best possible place to influence things. They can slow growth of Novell (and hence Linux) by backing off (or, worse, if some free software pessimists are to be believed, by subtly altering their marketing to subvert Linux while appearing to promote it). Or they can keep it rolling and continue to collect royalties from Novell.

Whatever happens, Microsoft will have developed a much more mature understanding of Linux, marketing wise and technically, and I bet they think that can't be a bad thing for them.

(And this analysis, in combination with my distrust of Microsoft -- born of experience -- helps to explain why I think Matt's right about it perhaps being best for the world in general if this knowledge and influence is more or less pre-empted by them going legal earlier rather than later.)

Posted by: raiph at November 21, 2006 01:53 PM

This is just more of MS's monopolistic and anti-trust behavior. Sooner or later "The Community" will have enough. And the proof!

Posted by: Lou at November 21, 2006 02:44 PM

You must be one of those people that just hate Novell (you probably do not even know why?) for whatever they do is just not good.
And reading your comments, I laughed as well ….

Posted by: Dan at November 21, 2006 03:17 PM

I think everyone missed the point, microsoft sees the value in GPL v3 and are working to motivate the community to finalize it as soon as possible ;)

Posted by: scot at November 21, 2006 11:38 PM

Well how nice - microsoft just had to have this deal to keep itself from suing it's own customers.

wow - if I was a customer and they said this I would be getting their junk os off my computers this minute.

what jerks - they make this deal so they don't sue their own customers after the millions their customers had already paid them for their junk os. kind of tells ya what the future holds for microsoft customers. don't dare look at any other technology except ours to run your business that you put your blood sweat and tears into running. just keep shoveling your hard earned money to redmond and all will be okay - they won't sue you.

a word to microsoft - if this is the only way you can get people to use your junk os then you have bigger problems than Linux could ever hand you.


Posted by: aba at November 22, 2006 05:06 AM

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