But when i read article on slashdot, I felt it was much targeted to
corporation using open source and open systems. they haven't yet shown what
copyright they were talking about. according to article it says

"*One opinion on why Microsoft won't reveal these 235 alleged IP
infringements to the public is that they're afraid of having the claims
debunked <http://lmaugustin.typepad.com/lma/2007/05/its_time_for_mi.html> or
challenged — so instead they're waiting until the OS community comes to the
bargaining table. But a more optimistic thought is that Microsoft may be
afraid to list these supposed violations because it knows the patents can be
worked 
around<http://neosmart.net/blog/2007/microsoft-linux-patent-violations/>by
the open source community, leaving Microsoft high and dry without any
leverage at all."*

On 5/15/07, Subir Pradhanang <[EMAIL PROTECTED]> wrote:
>
>
> Hi,
>
> Here's an article (pretty long) from CNN:
>
>
> http://money.cnn.com/magazines/fortune/fortune_archive/2007/05/28/100033867/index.htm
>
> ---
>
> Microsoft takes on the free world
>
> Microsoft claims that free software like Linux, which runs a big chunk
> of corporate America, violates 235 of its patents. It wants royalties
> from distributors and users. Users like you, maybe. Fortune's Roger
> Parloff reports.
>
> By Roger Parloff, Fortune senior editor
> May 14 2007: 9:35 AM EDT
>
> (Fortune Magazine) -- Free software is great, and corporate America
> loves it. It's often high-quality stuff that can be downloaded free
> off the Internet and then copied at will. It's versatile - it can be
> customized to perform almost any large-scale computing task - and it's
> blessedly crash-resistant.
>
> A broad community of developers, from individuals to large companies
> like IBM, is constantly working to improve it and introduce new
> features. No wonder the business world has embraced it so
> enthusiastically: More than half the companies in the Fortune 500 are
> thought to be using the free operating system Linux in their data
> centers.
>
> But now there's a shadow hanging over Linux and other free software,
> and it's being cast by Microsoft (Charts, Fortune 500). The Redmond
> behemoth asserts that one reason free software is of such high quality
> is that it violates more than 200 of Microsoft's patents. And as a
> mature company facing unfavorable market trends and fearsome
> competitors like Google (Charts, Fortune 500), Microsoft is pulling no
> punches: It wants royalties. If the company gets its way, free
> software won't be free anymore.
>
> The conflict pits Microsoft and its dogged CEO, Steve Ballmer, against
> the "free world" - people who believe software is pure knowledge. The
> leader of that faction is Richard Matthew Stallman, a computer
> visionary with the look and the intransigence of an Old Testament
> prophet.
>
> Supreme Court eases patent standards
>
> Caught in the middle are big corporate Linux users like Wal-Mart, AIG,
> and Goldman Sachs. Free-worlders say that if Microsoft prevails, the
> whole quirky ecosystem that produced Linux and other free and
> open-source software (FOSS) will be undermined.
>
> Microsoft counters that it is a matter of principle. "We live in a
> world where we honor, and support the honoring of, intellectual
> property," says Ballmer in an interview. FOSS patrons are going to
> have to "play by the same rules as the rest of the business," he
> insists. "What's fair is fair."
>
> Microsoft General Counsel Brad Smith and licensing chief Horacio
> Gutierrez sat down with Fortune recently to map out their strategy for
> getting FOSS users to pay royalties. Revealing the precise figure for
> the first time, they state that FOSS infringes on no fewer than 235
> Microsoft patents.
>
> It's a breathtaking number. (By comparison, for instance, Verizon's
> (Charts, Fortune 500) patent suit against Vonage (Charts), which now
> threatens to bankrupt the latter, was based on just seven patents, of
> which only three were found to be infringing.) "This is not a case of
> some accidental, unknowing infringement," Gutierrez asserts. "There is
> an overwhelming number of patents being infringed."
>
> The free world appears to be uncowed by Microsoft's claims. Its master
> legal strategist is Eben Moglen, longtime counsel to the Free Software
> Foundation and the head of the Software Freedom Law Center, which
> counsels FOSS projects on how to protect themselves from patent
> aggression. (He's also a professor on leave from Columbia Law School,
> where he teaches cyberlaw and the history of political economy.)
>
> Moglen contends that software is a mathematical algorithm and, as
> such, not patentable. (The Supreme Court has never expressly ruled on
> the question.) In any case, the fact that Microsoft might possess many
> relevant patents doesn't impress him. "Numbers aren't where the action
> is," he says. "The action is in very tight qualitative analysis of
> individual situations." Patents can be invalidated in court on
> numerous grounds, he observes. Others can easily be "invented around."
> Still others might be valid, yet not infringed under the particular
> circumstances.
>
> Moglen's hand got stronger just last month when the Supreme Court
> stated in a unanimous opinion that patents have been issued too
> readily for the past two decades, and lots are probably invalid. For a
> variety of technical reasons, many dispassionate observers suspect
> that software patents are especially vulnerable to court challenge.
>
> Furthermore, FOSS has powerful corporate patrons and allies. In 2005,
> six of them - IBM (Charts, Fortune 500), Sony, Philips, Novell, Red
> Hat (Charts) and NEC - set up the Open Invention Network to acquire a
> portfolio of patents that might pose problems for companies like
> Microsoft, which are known to pose a patent threat to Linux.
>
> So if Microsoft ever sued Linux distributor Red Hat for patent
> infringement, for instance, OIN might sue Microsoft in retaliation,
> trying to enjoin distribution of Windows. It's a cold war, and what
> keeps the peace is the threat of mutually assured destruction: patent
> Armageddon - an unending series of suits and countersuits that would
> hobble the industry and its customers.
>
> "It's a tinderbox," Moglen says. "As the commercial confrontation
> between [free software] and software-that's-a-product becomes more
> fierce, patent law's going to be the terrain on which a big piece of
> the war's going to be fought. Waterloo is here somewhere."
>
> Party crasher
>
> Brad Smith, 48, became Microsoft's senior vice president and general
> counsel in 2002, the year the company settled most of its U.S.
> antitrust litigation. A strawberry-blond Princeton graduate with a law
> degree from Columbia, Smith is a polished, thoughtful and credible
> advocate whom some have described as the face of the kinder, gentler,
> post-monopoly Microsoft. But that's not really an apt description of
> Smith; he projects intensity, determination, a hint of Ivy League
> hauteur, and ambition.
>
> We're sitting at a circular table in Smith's office in Building 34 on
> the Redmond campus, with a view of rolling green lawns splashed with
> pink-blossomed plum trees. In the 1970s and 1980s, Smith recounts,
> software companies relied mainly on "trade secrets" doctrine and
> copyright law to protect their products. Patents weren't a big factor,
> since most lawyers assumed that software wasn't patentable.
>
> But in the 1990s, all that changed. Courts were interpreting copyright
> law to provide less protection to software than companies had hoped,
> while trade-secrets doctrine was becoming unworkable because the
> demands of a networked world required that "the secret" - the
> program's source code - be revealed to ever more sets of eyes.
> Microsoft, Teleflex patently successful in high court
>
> At the same time courts began signaling that software could be
> patented after all. (A copyright is typically obtained on an entire
> computer program. It prohibits exact duplication of the code but may
> not bar less literal copying. Patents are obtained on innovative ways
> of doing things, and thus a single program might implicate hundreds of
> them.)
>
> In response, companies began stocking up on software patents, with
> traditional hardware outfits like IBM leading the way, since they
> already had staffs of patent attorneys working at their engineers'
> elbows. Microsoft lagged far behind.
>
> As with the Internet, though, Microsoft came late to the party, then
> crashed it with a vengeance. In 2002, the year Smith became general
> counsel, the company applied for 1,411 patents. By 2004 it had more
> than doubled that number, submitting 3,780.
>
> In 2003, Microsoft executives sat down to assess what the company
> should do with all those patents. There were three choices. First, it
> could do nothing, effectively donating them to the development
> community. Obviously that "wasn't very attractive in terms of our
> shareholders," Smith says.
>
> Alternatively, it could start suing other companies to stop them from
> using its patents. That was a nonstarter too, Smith says: "It was
> going to get in the way of everything we were trying to accomplish in
> terms of [improving] our connections with other companies, the
> promotion of interoperability, the desires of customers."
>
> So Microsoft took the third choice, which was to begin licensing its
> patents to other companies in exchange for either royalties or access
> to their patents (a "cross-licensing" deal). In December 2003,
> Microsoft's new licensing unit opened for business, and soon the
> company had signed cross-licensing pacts with such tech firms as Sun,
> Toshiba, SAP and Siemens.
>
> At the same time, Smith was having Microsoft's lawyers figure out how
> many of its patents were being infringed by free and open-source
> software. Gutierrez refuses to identify specific patents or explain
> how they're being infringed, lest FOSS advocates start filing
> challenges to them.
>
> But he does break down the total number allegedly violated - 235 -
> into categories. He says that the Linux kernel - the deepest layer of
> the free operating system, which interacts most directly with the
> computer hardware - violates 42 Microsoft patents. The Linux graphical
> user interfaces - essentially, the way design elements like menus and
> toolbars are set up - run afoul of another 65, he claims. The Open
> Office suite of programs, which is analogous to Microsoft Office,
> infringes 45 more. E-mail programs infringe 15, while other assorted
> FOSS programs allegedly transgress 68.
>
> Now that Microsoft had identified the infringements, it could try to
> seek royalties. But from whom? FOSS isn't made by a company but by a
> loose-knit community of hundreds of individuals and companies. One
> possibility was to approach the big commercial Linux distributors like
> Red Hat and Novell that give away the software but sell subscription
> support services. However, distributors were prohibited from paying
> patent royalties by something whose very existence may surprise many
> readers: FOSS's own licensing terms.
>
> Contd...Follow the above link.
>
> ---
>
> Cheers,
> Subir
>
> >
>

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