Microsoft Wants FOSS Users to Pay Royalties
A CNN report tells of Microsoft wanting royalties from distributors and users of free software like Linux. Microsoft claims that free software violated 235 of its patents. Brad Smith, Microsoft’s senior vice president and general counsel enumerates the violations of free software:
- Linux kernel - 42 Microsoft patents violated
- Linux GUI - 65 Microsoft patents violated
- Open Office suite - 45 Microsoft patents violated
- E-mail programs - 15 Microsoft patents violated
- Other FOSS programs - 68 Microsoft patents violated
According to the CNN report, free software is used by more than half of the Fortune 500 companies. These include IBM, Wal-Mart, AIG, Sony, Philips, Novell, Red Hat and NEC. Imagine how much profit Microsoft would gain if it starts charging royalty fees to these companies. However, Eben Moglen, master legal strategist and long time counsel to the Free Software Foundation isn’t impressed. He argues that software is a mathematical algorithm thus, not patentable. He stated that there are numerous workarounds with regard to patents in court. He observed further that the thing that keeps the peace between these companies is a series of suits and countersuits.
Novell, a well-known supporter of free software struck a deal with Microsoft in June of last year. Along with the deal was a commitment to address Microsoft’s patent concerns. So here’s the deal:
- give Microsoft a percentage of all its Linux revenue until 2011 or a minimum of $40 million
- Microsoft would pay Novell $240 million for coupons that it could resell to customers, who would in turn, trade them in for subscriptions to Novell’s Linux server software
- Microsoft would also give $108 million as a balancing payment (patent part of the deal)
It seems that Microsoft is paying more when in fact it is the one trying to charge for royalties. Microsoft explained that since it brings in much more revenue than Novell, it owed a balance. However, this wasn’t the point for free-software users. The fact that Novell agreed to Microsoft’s terms meant that free software indeed violated Microsoft’s patents.
What implication does this have to FOSS developers? It’s obvious that those who do not have the funds to defend themselves against Microsoft would stick with companies that share the same cause, as in the case of Novell. If this is the case, as the CNN report says, then there wouldn’t be high quality, free and open-source software to use in the next five years.
What’s even more disappointing is that Microsoft continues to seek direct licenses to its other Fortune 500 customers. When asked whether it would sue its customers the way the music industry has, the company said it still has no plans as of today.
Oh, I would love to live in an open world, where there are no gates and windows. However, when faced with a dilemma where power seems to be the most viable choice, is there really a choice?
July 12th, 2007 at 12:14
[...] Linux desktop and server provider, Xandros. In relation to the previous article entitled, Microsoft Wants FOSS Users to Pay Royalties, Microsoft has once again signed a deal with Xandros in which the terms were similar to that of the [...]