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Microsoft Improves Its Licensing Terms

prostoalex writes "Microsoft offers to pick up the legal tab, in case anyone gets pulled to court for using its products. News dot com dot com has a rather informative outline of new policies: Microsoft will cover unlimited expenses on injury and infringement claims, the company quadrupled the warranty on its products to a 12-month length, and the companies audited for licensing compliance will now get a 30-day warning instead of 15-day one."

27 of 309 comments (clear)

  1. Where is coverage for security issues? by microbob · · Score: 5, Insightful

    Where is coverage for security issues?

    M.B.

    1. Re:Where is coverage for security issues? by Anonymous Coward · · Score: 1, Insightful

      This is just to aid in their linux FUD campaign, " nobody indemnifies you against IP issues with linux blah blah SCO blah blah"

      If they offered coverage for security issues, they can pay ME for all the redundant code red/nimda hits that still eat my bandwidth!

    2. Re:Where is coverage for security issues? by jkrise · · Score: 1, Insightful

      Why must I waste my bandwidth and time, reading an MS website? Why should I read about Virus and Worm alerts at Slashdot and then wade thru all the patch issues? Why can't MS send atleast an email alert to Volume Licensees?

      Ridiculous!

      -

      --
      If you keep throwing chairs, one day you'll break windows....
  2. Hmm... by Anonymous Coward · · Score: 1, Insightful

    The slashdot community will love this, until Microsoft cites it in the next legal battle theyre stuck in as a sign that they would like to protect consumers, at which point it will have been an evil ploy...

  3. differentiate from Linu by Pastis · · Score: 4, Insightful

    With the SCO suit, there's been a shift of attention : non open source companies assume legal risks for you, while open source software do not, thus explaining the difference in costs between the 2 types of offering.

    See also heated thread regarding Hibernate on www.theserverside.com.

  4. Wow! by bmetzler · · Score: 3, Insightful

    What can I say? I'm overwhelmed. Microsoft must be taking this SCO business seriously. They already have a SCO license.

    Notice that Microsoft limits their liability to actual lawsuits. Not bugs, or security holes, or any type of damages that you may assess running their software. In that case, you are still stuck.

    And I doubt even SCO is dumb enough to try to sue anyone because they are running MS software. That's to big of a opponent for them. :)

    -Brent

  5. What's the catch? by AndroidCat · · Score: 5, Insightful
    unlimited expenses on injury and infringement claims

    How will anyone be able to prove infringement if it's close source?

    --
    One line blog. I hear that they're called Twitters now.
  6. One good thing... by HanClinto · · Score: 5, Insightful
    The Lindon, Utah-based company sued IBM over alleged misuse of its Linux code and sent letters to 1,500 Linux users warning of potential copyright infringement issues and other legal problems.

    With its new contract, Microsoft is effectively promising customers it will insulate them from those kind of messy legal problems.

    We all knew that Microsoft considered Linux a threat, but this is the first positive "captilalistic competitiveness" move I've seen on Microsoft's part. It seems that Linux is pushing Microsoft to improve its standards in order to compete more. That's one positive thing through this whole mess, Microsoft is actually forced to compete for our business now.

    --Clint

  7. Re:Oh Dear! ... by coene · · Score: 2, Insightful

    Well, the bigger question is this:

    If I buy Microsoft XP Pro for ~ $300, does that mean they will only cover $300 in legal costs? So, I get to sit down at the lawyers office, ask for my free bottle of water, and get about 3 sentences out of my mouth before the real clock starts...

  8. Re:RIAA by thoolihan · · Score: 3, Insightful

    I saw a previous post like this that was joking, but you actually appear to be serious.

    Of course not, MS is simply saying if they will pick up the tab if the USE OF THEIR PRODUCT is the issue. If the issue is piracy, or hacking, then it does not matter that you used their product in the act.

    -t

    --
    http://unmoldable.com W:"No one of consequence" I:"I must know" W:"Get used to disappointment"
  9. Clever by Sloppy · · Score: 4, Insightful
    Wow!

    One of the arguments regarding the SCO case has been that Linux users are at risk, but that's not any different than users of any other OS. To say that Linux is some kind of special exception, is just dishonest.

    Or rather, it was dishonest. But now MS is setting itself apart. Microsoft has found a way to use their most important asset (not technology, not their employees, not their products -- just their big fat wad of cash) to differentiate themselves from all the others.

    Also, this does something else. This is the first time I have ever heard of something in Microsoft EULAs that is actually for the user. Instead of take, take, take, the agreement would actually be something-for-something. To date, only a tiny fraction of their users actually bother to license their software. Most just buy it. But this could change that.

    The big question becomes: is this all bullshit? Are software users really liable for the behavior of third parties? When you put it that way, it seems ridiculous. But software has function -- it does stuff. If your computer does something in violation of some patent, it's your agent that is doing it, at your direction, on your behalf. Is it relevant that someone else gave the instructions on how to do it? I can look up a patent in a database and quote it to you, but if you then follow those directions that I gave you, you're the one who is violating the patent, not me.

    If this type of thinking were legitimized, it would be disasterous for the software industry. This is the first step toward making software something that can only be sold by megacorps, or bonded programmers, or something. Gates himself probably never would have been able to even get started, in an environment like that.

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    1. Re:Clever by noda132 · · Score: 2, Insightful

      Or rather, it was dishonest.

      And this isn't? The article goes on to say, "Kremen could recall only one case where a plaintiff brought a copyright infringement action against Microsoft's customers rather than the multi-billion dollar company. (In that case, IBM and Microsoft actually picked up the defense anyway and obtained a verdict in favor of their customers)."

      In other words, this move of theirs costs them nothing. Not a penny. In my opinion, it's as coincidental as Microsoft's paying an undisclosed sum in licensing fees to SCO when the whole SCO-Linux thing started.

      It's just another way to spread FUD.

    2. Re:Clever by G-funk · · Score: 2, Insightful

      But, if you build a vacuum cleaner that works like a dyson, and I buy it and clean my carpets with it, it's _your_ fault, not mine. It's not up to the consumer to worry about patents, or nobody would be able to use anything at all without fear of being sued for it.

      --
      Send lawyers, guns, and money!
  10. Why is this even news? by Pionar · · Score: 5, Insightful

    So Microsoft will protect VOLUME licensees. That helps Joe Blow how?

    They upped their warranty to 12 months? Why is it only 12 months? Why shouldn't I be able to trust that the software will run correctly on the intended setup five years down the road? It's not like my car, where it degrades over time.

    Even the analyst News.com.com interviewed had questions on whether this event is monumental.

    Plus, MS is just using this to spread FUD over Linux. "If you get sued for our products, we'll protect you. Linux can't do that."

  11. Competition by Dalcius · · Score: 2, Insightful

    It's scary what a little competition can do to a monolithic company, isn't it?

    Linux and OSS. Like it or hate it, it's making Microsoft do more of its job. They can't buy it, they can't squash it, they're having trouble taking legal action against it and their FUD efforts aren't doing much good and are backfiring in their faces.

    --
    ~Dalcius
    Rome wasn't burnt in a day.
  12. This is more interesting... by jkrise · · Score: 5, Insightful

    Now, assume SCO tells us:
    Hey, we claim that Windoze contains SCOde, so you gotta pay us $1,500 per license to avoid litigation...

    Now, reading this:

    In older contracts, Microsoft agreed to pay all legal fees for volume license customers who got sued because of Microsoft, but only up to the value of the software they bought.

    But, my Corporate license was offered at a price of $120 per seat. So there's still a loss of $1,300 per seat, even if MS foots the bill!! Very clever, typical MS.

    -

    --
    If you keep throwing chairs, one day you'll break windows....
    1. Re:This is more interesting... by Mr_Silver · · Score: 2, Insightful
      But, my Corporate license was offered at a price of $120 per seat. So there's still a loss of $1,300 per seat, even if MS foots the bill!! Very clever, typical MS.

      I'm sure if you asked for the old licence terms, they'd be happy to give them to you.

      It's definately not perfect, but it's better than what it was.

      --
      Avantslash - View Slashdot cleanly on your mobile phone.
    2. Re:This is more interesting... by mr_luc · · Score: 2, Insightful

      Probably my reading comprehension is poor.

      But didn't the article explicitly state that that was the way things WERE, and that things are DIFFERENT under the new licenses? That they USED to limit their liability to the cost of software, and now it's been changed?

      In any event -- this is really a return to the Microsoft of lore. It reminds me of why I admire Bill Gates, even though I hate Microsoft and it's shitty software. The guy really has a killer instinct. Microsoft had been stagnating -- it's a monopoly, but it was slowly losing share in certain sectors, growth was down, and most importantly, it had no security against Linux. Linux wasn't widely adopted in all markets, but they knew damn well that it should be, that it was a superior product for a great variety of applications. They knew all of that damn well, and they knew that the TCO of Linux and the efficiency of Linux and the open-source nature of Linux and the massive support sommunity (and IBM's support of Linux in a big way) was a definite danger, one that businesses all across the country were flocking to.

      What steps have they taken? Look at the lawsuits against MS, the adoption of Linux, nations that want to use Linux exclusively, massive government contracts going to Linux -- and what has Microsoft done to stride forward? Weak little improvements like including the browser in the OS -- that's nice, but not going to cut it. .NET is slow in gaining any kind of acceptance, and a number of other initiatives have fallen flatter than Kansas.

      This -- this is a return to the Big Moves that made Microsoft so powerful in the first place. This is BUSINESS, not software, and Microsoft is really leveraging this in an intelligent way.

  13. "Inattention & arrogance" by djeaux · · Score: 1, Insightful
    CEO Steve Ballmer has warned that the company will start to lose customers through inattention and arrogance.

    Um, this is supposed to happen in the future if Microsoft doesn't get its act together? Shoot, bubba, it's already happening. Once again, MS is being reactive & not proactive.

    Microsoft gained its market dominance through marketing, unethical business practices, shrewd evangelical work in the education area, bundling applications with the OS, buying out the competition & (oh yes) pure dumb luck. Customer service & attention to the needs of end users has never been their strong suit.

    As the article pointed out, these licensing changes are really there to keep the procurement agents, customers' lawyers, corporate brass et al. happy. They will have minimal real-world impact.

    If it would have significant real-world impact, you can bet your glutes that Microsoft wouldn't have done it. Microsoft is in the business of making money, not making software products. I'm not saying this is good (the "neo-conservative" point-of-view) or bad (the "Soviet Russia" point-of-view). I'm just saying that's the way it is.

    --
    "Obviously, I'm not an IBM computer any more than I'm an ashtray" (Bob Dylan)
  14. Good way to get more publicity for your side... by linuxtelephony · · Score: 5, Insightful

    This is a good way for M$ to get more (like they need it) free publicity and spread FUD at the same time.

    In a normal business agreement there is often a clause that indemnifies the parties from lawsuits as a result of the other party's whatever. Only in software licenses where the user generally gets mugged on paper (you have no rights, they all belong to sw company) does this often get neglected. I've seen some licenses where the user agrees to hold the sw maker harmless and pay for ALL sw maker's legal costs in a lawsuit (example, you use product X from company M in a medical device, something goes wrong, patient dies, patient family sues you and company M due to supposed defect in device, you get pay M's legal bills in that case [M does not mean M$, just a letter for an example]).

    M$ is just putting some of that standard language back. Most of all, it makes FUD arguments sound more legitimate. "Sure you save money up front on those open source programs, but what happens when SCO or the real authors of what's in that open source program comes knocking on your door demanding payment for your use of what was stolen from them? We are there for you. Our goal is to make you succeed. You don't have to worry about that problem with us, and in the unlikely event someone alleges impropriety and you end up in court with our product, you won't have to spend money on lawyers. We are here to protect you. Just sign right here."

    Now here's one for you. It seems I recall that people have pointed out a few GPL code violations, running "strings" on a few M$ Windows DLL and EXEs revealed some amazing things. Now we know they used BSD code, but if they did use GPL or other code that they were not free to "incorporate" into their products, now that M$ is taking this step, maybe it is time to start seeking to proove the thefts and target M$ customers like SCO is targetting Linux customers.

    --
    . 62,400 repetitions make one truth -- Brave New World, Aldous Huxley
    1. Re:Good way to get more publicity for your side... by aardvarkjoe · · Score: 5, Insightful

      running "strings" on a few M$ Windows DLL and EXEs revealed some amazing things.

      No, it doesn't. It reveals that MS has used some BSD code, like pretty much any other modern OS out there. This isn't even particularly interesting, much less amazing.

      Nobody has ever shown evidence that MS has ever violated the GPL. I rather doubt any will be found, simply because Microsoft is so scared of the GPL that they would rather reimplement a piece of code than take a chance of being caught. It amazes me how many people assume that Microsoft are evil GPL violaters, when it would make absolutely no sense for them to do so.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
  15. I guess I'd better not file by Ridgelift · · Score: 3, Insightful

    Dang! And I was just about to file my lawsuits against the hundreds of companies whose servers are still infected by Code Red & Nimda, and attack mine on an hourly basis.

    Guess now that they have infinite legal resources, I should become a lawyer instead.

  16. Look at when this took effect... by jav1231 · · Score: 2, Insightful

    "Under the new provision, which took effect March 1" So this isn't the result of any of the SCO flap of the last few days, as it would appear. JAV

  17. About time too. Let's not stop there. by Rogerborg · · Score: 4, Insightful

    All software vendors should be responsible for IP claims on the software that they sell. Yes, that includes commercial Linux distros. Yes, that includes hobbyists selling shareware products. If you take money for it, you're saying that you have the rights to sell it. If you don't, then you're a thief and a liar.

    Disclosure of interest: I work for a company that's pathological about keeping third party code out of our products. We sell to embedded device manufacturers and we simply cannot afford to get this wrong, because they will sue us until we glow, then hang us in the dark if we do.

    There is absolutely no reason that vendors selling to Joe Public should be held to lower standards, other than that Joe lets them get away with it. While I still think that SCO is deranged, at least they're making it clear that you'd better be damn sure that you've got the rights - all of the rights - to whatever you're selling.

    --
    If you were blocking sigs, you wouldn't have to read this.
  18. warning conspiracy theory... by gregm · · Score: 3, Insightful

    "Under the new provision, which took effect March 1"

    March 1? WTF... I'm really starting to think than Microsoft has masterminded this whole SCO attack. If it was implemented March 1 when was the idea thought of?

    Let's see... Microsoft changes their license on March 1, Sco sues IBM a few days later. May 14 SCO sends out 1500 letters, a few days later Microsoft buys a license. Sco threatens to sue about a billion lowly users for copyright infringement, a few weeks later Cnet writes an article outlining the new Microsoft license.

    Microsoft is too big to make these kinds of reactive decisions so quickly. They had to at least have inside knowledge of what SCO was up to in order to be so well prepared or be damned lucky.

    No normal company would have the audacity to make the bizarre kinds of claims SCO is making. Microsoft who pretty much owns the US court system and can buy the verdict of their choice, has the power to at least have a chance of making a suit like this actually work.

    Even if everything SCO has said is right... it's absurd to think they can sue little old me for buying a few copies of Slack and SuSE. Now if I distributed copies of those, then it might be possible. And what about the GPL?

    If SCO is just taking a final potshot to raise some money so they can inflate their stock prices, those in charge will almost certainly get popped for insider trading if they dump that inflated stock. SCO isn't an Enron, they're a piss-ant little company. If they wanted to get bought out then they would have limited the scope of their lawsuit to IBM not the whole friggin Linux community. Almost no Linux users would ever do business with SCO or anyone who bought out SCO. If SCO were to win most of us would switch back to FreeBSD, in order to not do business with SCO.

    The only logical conclusion is some company who has a competing product (to Linux) is behind this attack.

  19. Not cost M$? Depends. Is this retroactive? by MickLinux · · Score: 3, Insightful

    I have to say, whether this will cost Microsoft anything really depends on whether this change is retroactive.

    Because when Word98 for Mac was new, they included customer support as part of the sales package, but when I was getting mass document corruption, they specifically denied anything was happening, and said that what I said was happening wasn't. Later, it turned out they knew all along that this corruption was happening, but didn't fix the problems till after Word2000, if at all.

    If they had told me what was going on, I could have found a workaround. If they had accepted copies of the files for post-mortem examination, maybe we would have also found this out.

    This cost us and our business over $17000 in direct costs for their intentional denial of contractually required support, and over $11000 in further lost contracts.

    If this is retroactive, I will happily step up to the plate and request $38000. That, for one $100 piece of software+support that was negligently and inentionally not fulfilled.

    You probably can guess: As far as I am concerned, until they do pay off on that, Microsoft is still a liability.

    --
    Correct Horse Battery Staple: 72 bits of entropy. Enter "Correct H" into google. When it generates the phrase, that's
  20. SCO Fall out by nurb432 · · Score: 2, Insightful

    "see, we can stand behind our software, its safe to do business with us"

    This bad PR that the SCO case is giving OSS will take years to shake off..

    But cant blame MS for capitalizing on our grief, no one ever said business is fair.

    --
    ---- Booth was a patriot ----