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Microsoft/LG Linux patent deal (and catcam)
1 comment- IT TOPICS:Government & Regulation, Hardware, Linux, Open Source, Windows & Microsoft
It's Friday's IT Blogwatch: in which Microsoft crows about another Linux patent licensee. Not to mention the cat with a webcam on his collar...
Microsoft Corp. on Wednesday announced a cross-licensing deal with Korean consumer electronics maker LG Electronics Inc. It is the fifth such deal in recent months that involves Microsoft's controversial granting of Linux patent "protection" -- in this case, to LG-made cell phones and other devices. Microsoft will pay LG an undisclosed amount of money for patents related to operating systems and computer systems, it said in a press release, while LG will make ongoing payments to Microsoft "for the value of Microsoft patents as they relate to Linux-based embedded devices that LGE produces."
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The deal is the fifth one Microsoft has signed in the past seven months. Critics say such deals provide a de facto advance for Microsoft's unproven claims to Linux-related intellectual property. The first deal, an alliance signed last November between Microsoft and longtime rival Novell Inc., saw the latter firm agreeing to pay Microsoft $40 million in return for immunity for Novell’s customers against any Linux-related patent violations.
Steven J. Vaughan-Nichols has déjà vu:
In the announcement of the deal, Microsoft included what appears to be its new boiler plate wording about how Microsoft "has focused on patent agreements in the recent past ... to develop a best-practices model for protecting intellectual property (IP) and respecting the IP rights of others, as well as building bridges with an array of industry leaders."
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In turn, Microsoft will have access to LG's patents. Microsoft will also be able to license other LG-developed patents that are now owned by its business solutions provider, the MicroConnect Group, a home and SMB (small to medium-sized business) system integrator. The specific financial terms of the agreement are confidential; however, the parties are disclosing that Microsoft will be making a net balancing payment to LG and MicroConnect for patents related to operating systems and computer systems.
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Unlike the more well-known Microsoft/Linux patent partnership deals, however, there is no acknowledgment in this agreement that Linux is in some fashion violating Microsoft's patents. LG is being given the right to use Microsoft patents throughout its product line, and some of that line happens to use Linux. It would be a stretch to say that this agreement, from what we now know, states that Linux already violates Microsoft's patents.
Joe Weisenthal swims in the balancing pond:
At first glance, this deal would appear to be the fruit of Microsoft's intimidation tactics, and some will assume that this is just LG paying Microsoft "protection money" for the right to operate its own business. But as part of the deal, Microsoft gets to license some IP from LG and one of its partners, and in fact, Microsoft is paying more money to LG than the other way around.The most likely explanation is that neither side really needs the other side's IP to continue doing business, but, rather, Microsoft is simply buying itself a licensee of its patents. In this respect, the move looks fairly similar to what NTP did during its battle with Research In Motion, when it took equity stakes in two companies while simultaneously getting them to license the relevant patents. Later on, if this actually becomes a contentious issue, Microsoft will point to LG as an example of a company that recognized the need to license its IP in order to keep using Linux.
Joe Wilcox waxes metaphorically:
When countries prepare for war, there are generally signs, like subtle changes to foreign trade, the recall of some foreign diplomats or the movement of troops. Business is similar; there is usually some indication that enemy combatants are coming. Often the first sign is the lawyers marching to the front lines ... Maybe Microsoft already is at war and the patent agreements are simply concessions of bloodless defeats, with cross-licensing and patent payments back to the company being loosely analogous to reparations. Another view: The deals are like an alliance a country might make before the invasion.
Sometimes the threat of war is enough.
Why do I keep seeing headlines about companies signing patent deals with a company who said that Linux infringes on exactly 225 of their patents, but doesn't know which ones? Why are companies signing patent deals with a company to protect them from patents without knowing what they are? This is sounding like SCO -vs- IBM 2.0, but even more bizarre.
Novell pays MSFT $100 odd million. MSFT pays Novell $240 million. Novell nets $140 million dollars, and MSFT literally spews FUD, when MSFT did the paying. Xandros and LG are just cashing in on the deal. Not for Linux's sake but for free money from MSFT.
Microsoft is ... making it look like those companies got something in return for giving up a whole lot more in the end. They're buying the perception that it's in the interest of everyone else to do the same, as well as access to a load of patents in others portfolios. If Microsoft is offering you cash, they're not doing it for altruistic reasons.
Buffer overflow:
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Previously in IT Blogwatch
And finally... Catcam
Richi Jennings is an independent technology and marketing consultant, specializing in email, blogging, Linux, and computer security. A 20 year, cross-functional IT veteran, he is also an analyst at Ferris Research. Contact Richi at blogwatch@richi.co.uk.
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