Linux player hits back at Ballmer

Open source solutions provider Cybersource has lashed out at Microsoft chief executive officer Steve Ballmer's statement in Singapore that Linux is potentially in violation of various software idea patents.

Con Zymaris, Cybersource chief executive officer, said that in reality, the platform which is most at risk from drowning in patent litigation is Microsoft's own, adding that even Microsoft's US$50 billion "cash hoard" may not be enough to save it.

"At present, Linux is not the target of any software idea patent attacks," he said. "Microsoft however, is facing between 30 and 35 such court actions. To name but a few, Microsoft has been ordered to pay US$521 million to Eolas for an infringement in Internet Explorer and another US$440 million settlement to InterTrust Technologies Corp. for infringement of digital restrictions management patents and US$1.6 billion to settle a patent and anti-trust suit bought against it by Sun Microsystems. That's over US$2 billion for just three suits, well over US$500 million per patent case. Furthermore, the number of court cases against Microsoft is increasing," Zymaris said.

Zymaris added that Ballmer's "scaremongering" is a response to the Singaporean government's recent decision to migrate 20,000 PCs to open source desktop productivity applications.

"Ballmer is trying to use FUD about software idea patents as a weapon to stem more government and corporate defections to Linux. In his haste, however, he forgets to mention that if software idea patents are a threat to Linux and open source, they are far more of a threat to Microsoft itself," he said.

"If we believe Ballmer, the Linux kernel may possibly infringe on 228 software idea patents. If that's the case, then it seems reasonable to expect Microsoft's Windows, which has a code-base ten times larger, infringes on over 2000. And that's just the operating system. Once we include Microsoft Exchange, Visual Studio, SQL Server and dozens of other products, Microsoft could be infringing on thousands more. On current track record, losing even 100 patent cases might be enough to deplete Microsoft current cash reserves. Suddenly that gargantuan mountain of money that Microsoft sucked dry from its customers doesn't quite seem large enough," Zymaris said.

"In watching Microsoft's recent movements in this space, we come to the conclusion that Microsoft have given up trying to compete with Linux and open source on value, quality and security. We had hoped that Microsoft would respond with better, more secure and much cheaper software, rather than resort to shabby veiled legal FUD. But if that's the message it wants to send the world, then so be it," concluded Zymaris.

Talkback 8 comments

    Your article's description of ...Anonymous -- 22/11/04

    Your article's description of Ballmer's comments as:

    "Zymaris added that Ballmer's "scaremongering" "

    is not only acccurate, but also a reflection of the fraud being perpetrated by Microsoft with respect to patents, which is in turn a part of its larger game plan of distorting the truth and practicing revisionist history.

    Recently there have been several interesting news stories in which Eolas has also been mentioned. In one, which can be found here:

    http://msnbc.msn.com/id/6479958/site/newsweek/

    the following is written about (Bill Gates's buddy) Nathan Myhvold's company:

    "Last year, for example, Microsoft was ordered to pay $520 million for violating the patent of one employee firm, Eolas, which claimed to own the way users could get videos or songs inside a Web browser (Microsoft is appealing).

    This is where Intellectual Ventures steps in. It is buying patents from all corners of the high-tech world, including those that could pose legal threats to its powerful investors.

    By buying all these patents, Intellectual Ventures ensures they cannot be used against its investors by gadflies like Eolas."

    What was conveniently not mentioned was a piece of information circulating at universities and among journalists, that has only now begun to reach the public (in fragments). And that is, that there exists relevant prior art in the Eolas case which Bill Gates knew of, which Nathan Myhrvold was informed about in the summer of 2003, and which many others who are ostensibly impacted by the eventual outcome of that case, also know. Why they remained silent will probably come out in court at some point, and when it does some of us suspect the world will see a more accurate picture of Microsoft, especially regarding its ability to generate new technologies without resorting to "borrowing". Truly, truly pathetic.

    Again, Nathan's company,

    "By buying all these patents, Intellectual Ventures ensures they cannot be used against its investors by gadflies like Eolas."

    Inquiring minds must wonder why Nathan is avoiding and silent about prior art that can perhaps accomplish the aforementioned objective best. Oh, but then many of us already know. Don't we?
    "Scaremongering"? Apparently it works against "buddies" as well as against Linux. And if the reference is cited rather than suppressed, it would also become known where certain people go to get...you finish the sentence yourself, Bill.

    Do a Google news search on eolas, Bill, for updated revelations about your nefarious schemes, and what journalism students are doing to expose you.

    Happy Thanskgiving.

    That was a Brilliant insight t ...Anonymous -- 22/11/04

    That was a Brilliant insight to the world about what microsoft is really is .

    I can't work out which is more ...Anonymous -- 23/11/04

    I can't work out which is more laughable... Con Zymaris' endless quest for free publicity, or the claim that Microsoft is in danger of being overwhelmed by patent infringement claims. Let's see... MS have been granted hundreds, if not thousands of patents with which to fight a patent "war", where linux has exactly, well, ZERO. Microsoft have 50 BILLION DOLLARS with which to fight and linux has ZERO. Depending of course on which linux vendor/user is sued for the patent infringement. It's hard to take open source advocates seriously when they all seems to be zealots fighting a religious war where MS is the apparent enemy. It's an OPERATING SYSTEM.

    Jason Green is wrong again.... ...Anonymous -- 23/11/04

    Jason Green is wrong again.....

    You say that Microsoft has hundreds of patents as "defence". That "defence" was completely useless against Eolas, a one man company that has no products and therefore CAN'T INFRINGE PATENTS.

    Any half intelligent agressor would set up a holding company for the patent, making it immune to counter-suits.

    It was clearly articulated how $50 Billion may not be enough. Microsoft would have to lose 100 patent lawsuits at $500 million each. Far from impossible.

    Also if Ms' war chest dropped by any significant amount (eg $10 billion) thanks to patent payouts (20 in this example), the shareholders would all panic and you imagine the stock price tanking. How much chaos would cause at Ms?

    PS Do you work for Microsoft by any chance?

    I think I know that one becaus ...Anonymous -- 24/11/04

    I think I know that one because it was being talked about at school here too.

    That's the (USA) Idaho Law blog story, I think.

    Supposedly Nathan M. cannot do anything but pretend that he doesn't know about that citation or Bill G. will strangle him or something like that. And Bill G. knows about it already because he was for several years, as they say, "borrowing" technologies from that same person who authored that document, who is reportedly from MIT. Rumor has it (at MIT
    ) that Tim Berners-Lee was himself informed and asked to help. But Tim Berners-Lee also wants Bill G. to stay happy because he gave him his office: namely the "Stata Center", better known as Building 32. Several professors also have said, "off the record" that "Tim is not the saint the media has portrayed him as being", and thus it was not surprising. The story at school is that there is a massive scandal and cover-up involved, involving not only Microsoft but several other companies and several big name (US) law firms that secretly helped Bill G. out of hope of business opportunities with Microsoft.

    But hey, this is the Internet and chat and blog generation. Do these fine folks think they can keep secrets of Enron magnitude from the public forever?

    Who can possible be surprised ...Anonymous -- 24/11/04

    Who can possible be surprised by Billy's antics of patenting anything & everything to give them the ability to sue everyone? In a country that bemuses the rest of the world for its litigation-ist society it is almost comical that that the rest of the world follows suit, albeit more slowly. But that's another issue.

    If Billy (that is the nerd-ic face of Microsoft) & the other gentleman who heads Microsoft (couldn't knowingly place Ballmer's name in the same sentence with gentleman; damn, I just did it) were half the people they purport to be then they wouldn't need to indemnify themselves to the max. Obviously they believe they can protect themselves from others doing to them what they have done to so many before them.

    It's ok if they destroy other businesses by forcing other products out but they'll protect themselves legally from anyone doing it to them by patenting. Just a touch of hypocrisy in that. Cowards who truly don't stand on their own merits.

    Doesn't matter in the long run because there fight against open-source will ultimately fail. The protagonists for open-source are not going to go away because of some legal barrage taken out against them by the good ole USA. The rest of the world's open-source will just continue on their way & those from the USA will likely do the same. Even if that wasn't true I suggest that the reader think about the French underground in WWII. There will always be an underground society in computing no matter who is in charge. No-ones wants to be barrelled into a box that is controlled by someone else. The fight by Microsoft is just a legal quagmire to create FUD but ultimately the FUD will turn against themselves due to "Big Brother" societal fears & Microsoft being the harbinger of "Big Brother" & the box controller. The FUD will fail in the long run when the general public becomes more attuned to technology & that is happening now.

    As the European & Asian Governments' continue to adopt open-source the need to be aligned with Gov't enterprises will bring private domain business into alignment. Eventually that means that Microsoft becomes a format (eg Word, Excel, Powerpoint format) only & the operating system becomes the old computer in the back room to read old info.

    The amount of money in the coffers at Microsoft will begin to fall, not only because of the litigation-ist society taking chunks out of it but because for a company like Microsoft to maintain an even keel, a stable infrastructure, and a viable future, then it has to make inroads financially. As soon as the inroads stop, even if the company makes as much as they did before, the company begins its demise.

    I, for one, can't wait.

    What exactly am I wrong about, ...Anonymous -- 24/11/04

    What exactly am I wrong about, may I ask?

    >You say that Microsoft has hundreds of patents
    >as "defence". That "defence" was completely
    >useless against Eolas, a one man company that
    >has no products and therefore CAN'T INFRINGE
    >PATENTS.

    I never claimed that Microsoft are immune to patent litigation. Are you trying to assert that Microsoft have infringed on hundreds patents held by these so-called one man companies? I think not.

    >Any half intelligent agressor would set up a
    >holding company for the patent, making it immune
    >to counter-suits.

    Counter suits can only occur if the offending company has itself infringed on patents. A patent war isn't going to be fought as a two sided battle. Microsoft would launch a patent offensive against a plethora of others, most likely as a result of losses from patent litigation against itself, as a way of boosting revenue and countering losses incurred.

    >It was clearly articulated how $50 Billion may
    >not be enough. Microsoft would have to lose 100
    >patent lawsuits at $500 million each. Far from
    >impossible.

    Patent infringement takes a very long time to try. Do you seriously believe that Microsoft would be unable to raise additional revenue to counter such a large number of law suits? They would have years to prepare in such an event. It's just unbelievably naieve to think that an experienced player such as MS would be in any danger of being swamped by hundreds of valid patent infringement suits. Unless you've got these supposed patents up your sleve, MS is in no danger.

    >Also if Ms' war chest dropped by any significant
    >amount (eg $10 billion) thanks to patent payouts
    >(20 in this example), the shareholders would all
    >panic and you imagine the stock price tanking.
    >How much chaos would cause at Ms?

    This really is such a fanciful situation, it's hardly worth attention. There would be no sudden drop of 10 billion dollars! Litigation takes years, so by the time a decision was made by the courts, MS would well and truly have in place measures to counter the drop in cash reserves. Again, unless you're suggesting someone is going to file a hundred law suits at once, all having an indisputable patent which has been infringed by MS, then this hypothetical situation you have invented is just absolute rubbish.

    >PS Do you work for Microsoft by any chance?

    No

    PS Are you a teenager with an irrational hatred of a software company?

    Jason Green, here's where you ...Anonymous -- 24/11/04

    Jason Green, here's where you are wrong.....

    "Are you trying to assert that Microsoft have infringed on hundreds patents held by these so-called one man companies? I think not."

    This is where we disagree. Unlike you, I have some reasoning behind my logic. A study was released showing that Linux supposedly infringes over 200 patents. Windows is just as likely to infringe over 200 patents. They are both operating systems after all. So as a matter of fact it is entirely possible.

    You said that Microsoft's chances of being swamped by patent lawsuits is "laughable". I would guess that Bill and Ballmer aren't laughing about the prospect of patent litigation.

    It is a possibility - sure maybe a small one - but Ms could lose $10 Billion or even $50 Billion to patent lawsuits. Remember they already have some loses against their name eg Eolas. You could say they are already over $2 Billion towards that target.

    And PS no I am not a teenager.

    Also I have a very good reason to hate Microsoft. They have $50 BILLION SITTING IN A BANK ACCOUNT.

    M$ did not get rich by producing top quality products at fair prices.

    M$ got rich by taking the most shortcuts possible and RIPPING OFF consumers.

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