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Open Sources | Rodrigues & Urlocker » Microsoft doesn't want to sue, but is the alternative any better?

May 17, 2007 | Comments: (0)

Microsoft doesn't want to sue, but is the alternative any better?

I feel Bill Hilf's pain. He went on the record with Infoworld to counter some of the criticism that has erupted from Microsoft's incendiary comments in Fortune Magazine about patent violations in open source software.

Bill is a good guy, and I know from talking with him that the maelstrom isn't what Microsoft was trying to accomplish. Unfortunately for Bill, what he says is Microsoft's intent may well be worse than the lawsuits he suggests Microsoft isn't interested in.

Microsoft's goal is to tax open source. Period.

the Fortune article does not correctly represent our strategy. That's what has people so inflamed. It looks like our strategy changed and we are moving in a new direction, but it hasn't. In the Novell deal, we said we had to figure out a way to solve these IP issues and we needed to figure out a way for better interoperability with open-source products. The Fortune article makes it look like we are going out on this litigation path.

Our strategy from everyone in the company -- from [Steve] Ballmer to Brad Smith to me and everyone in between -- has always been to license and not litigate as it relates to our intellectual property.

Microsoft has every right to its intellectual property, and to earn a fair return on it. But given the way the company has gone about this, I just don't believe that is the end goal. Nor do I believe that Microsoft views open source in the same was as it does its potential proprietary licensees, though Bill disputes this:
We are very much calling out to commercial companies to license this stuff and resolve these issues. This isn't like a trivial invention. There are a couple hundred significant patents here.
IBM makes over $1B each year licensing its patent portfolio, and obviously cares about getting paid for value. Yet no saber rattling. Yes, it has much to gain from open source, but it also has a tremendous amount to lose. (It's the second largest software company in the world.) Same with Oracle, HP, etc. All have significant patent portfolios.

Yet no one except Microsoft has set up a toll booth or, rather, a poll tax. You want to vote? Pay the tax. You want to participate in IT? Pay the Microsoft tax. Make free software (that doesn't necessarily violate any Microsoft patents but which violates Microsoft's business model) not so free. Kill the allure of free as in beer.

If there are patents being infringed, it's time to own up to them. But no one can with Microsoft's charade, as Tim O'Reilly noted. Microsoft wants to do it on a quiet, company-by-company basis. But that doesn't work in open source, because it's, well, open. More than one company to deal with. FUD works on an individual basis, but not in the open.

It's likely that Microsoft is violating patents underlying key open source software. I suspect that some open source projects are unwittingly violating patents, too. It's a minefield of spurious (and some substantive) patents.

But the way to resolve the mess isn't through closed-door meetings. It's through an open process. Microsoft would do well to set up the process before someone else does it for them.

Posted by Matt Asay on May 17, 2007 02:35 PM


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I think it's time to make Microsoft history, and turn downsizing that company into a more manageable threat the size of SCO into a global business.

On Monday, Microsoft left the software business to become the world's largest patent trolls. That means they now pose a direct threat to economies, governments and their own enterprise customers alike. Besides the self-interest of those now threatened by Ballmer, there is also the huge pile of cash Microsoft sits on as the prize for lawsuits that get through. Microsoft's legal team's track record on defending themselves against lawsuits is poor, which is why they are shunning a direct confrontation. In other words, they're a beached whale ready to be carved up. ;)

It's time to connect high risk, high profit investors in China, Russia, and Eastern Europe with lawyers in the US that keep winning those cases, with people who know where the holes in Microsoft's defenses are (libel, anti-trust, patents, GPL violations, ...), and start the fireworks.

Now that Ballmer has made downsizing Microsoft into a global business, I doubt they'll be around in 5 years. It will take a lot more than some PR muppet pretending nothing happened on Monday, to avoid the things to come. ;)

Posted by: Dalibor Topic at May 17, 2007 04:33 PM

It's not just a patent tax. Get all these companies to sign up to these agreements and they can longer distribute GPL'd (2,3, 17 whatever) software.

Want to contribute? Sorry can't. The company lawyers won't let you.

It seems to me to be an obvious play to starve the OS ecosystem of people who can work for it.

Posted by: Steve at May 18, 2007 04:31 AM

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