● 08.05.10

●● Microsoft Extorts Salesforce: Salesforce to Make Sales, Microsoft to Make the Money

Posted in GNU/Linux, Microsoft, Patents, Servers at 3:38 am by Dr. Roy Schestowitz

Summary: Another timely lesson about the harms of software patents, which help Microsoft extort its rivals without ever taking them to court and having the patents tested

SOFTWARE patents are a nasty thing. In fact, over in Australia (and now in Slashdot) Ben Sturmfels works towards abolishment of software patents (for background see [1, 2, 3]). This is important because of precedence. In light of this heroic Australian action, OStatic brings up Sun’s Schwartz’ testimony about Microsoft extortion from Gates and Ballmer.

↺ in Slashdot
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↺ Sun’s Schwartz’ testimony about Microsoft extortion
Gates and Ballmer
Schwartz goes on to detail a meeting he was in with Bill Gates and Steve Ballmer from Microsoft, in which Gates allegedly “skipped the small talk” and said: “Microsoft owns the office productivity market, and our patents read all over OpenOffice.”The move by Australian software leaders to abolish patents seems a little over the top. Some ideas scream out for patents, and many software titans have been built on fairly patented software. Still, if anyone has any question that software patents get exploited, Schwartz’s post called “What I Couldn’t Say” is worth rereading.

Microsoft racketeering with software patents [1, 2, 3, 4, 5, 6, 7] recently hit Salesforce, which Microsoft sued with software patents for no apparent reason other than greed (it was sued by Salesforce in return). Salesforce uses GNU/Linux just about everywhere, at least on the server side. According to this press release from Microsoft, Salesforce allowed Microsoft to have itself extorted. Yes, Microsoft has once again successfully extorted using software patents and Mary Jo Foley says that ‘[w]hile the terms of the agreement aren’t being disclosed “Microsoft is being compensated by Salesforce.com”.’

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Microsoft sued
with software patents
sued by Salesforce in return
↺ press release from Microsoft
↺ successfully extorted using software patents

The press calls it a “settlement”, but it doesn’t quite capture the fact that Microsoft is being paid a ‘patent tax’ by Salesforce (it’s the same with TomTom, which shows Microsoft becoming a Linux-sucking leech). From the Wall Street Journal:

↺ same with TomTom
↺ the Wall Street Journal
Microsoft Corp. (MSFT) and Salesforce.com Inc. (CRM) announced Wednesday a settlement to their patent suits against one another, ending a three-month tussle the two software companies had over various software patents.

More on this racketeering:

Microsoft And Salesforce Agree To Agree On Patents (For A Fee)Microsoft, Salesforce.com settle patent lawsuitsMicrosoft, Salesforce settle patent suitMARKET TALK: Microsoft And Salesforce Drop Patent LawsuitsMicrosoft, Salesforce.com settle patent lawsuitsMicrosoft, Salesforce settle patentMicrosoft, Salesforce Settle Suitssoft, Salesforce.com settle patent litigationMicrosoft, Salesforce settle patent-infringement casesMicrosoft And Salesforce.com Settle Patent Infringement LawsuitsMicrosoft settles patent lawsuits with Salesforce

In other news, a ‘company’ (patent troll) that sued Microsoft for patent violations didn’t get its way.

Microsoft defeats patent trolls claiming they own multiplayer gamingMicrosoft Wins Online Multiplayer Patent LawsuitMicrosoft wins Xbox Live lawsuitMicrosoft prevails against online gaming patent lawsuitMicrosoft Wins Xbox Patent BattleMicrosoft Triumphs In Multiplayer Gaming Patent BattleMicrosoft Wins Xbox LIVE Patent BattleMicrosoft patent win preserves tradition of Xbox Live trash talkMS wins online multiplayer legal battle

It is possible that Salesforce would have won against Microsoft in court, but litigation is expensive. By issuing threats/lawsuits Microsoft has managed to turn Salesforce into a cash cow, using just a few papers with the USPTO’s rubber stamp.

Software patents need to die because they destroy the software industry and only empower monopolies. █

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