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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."

25 of 309 comments (clear)

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

    Where is coverage for security issues?

    M.B.

  2. Comment removed by account_deleted · · Score: 4, Funny

    Comment removed based on user account deletion

  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

    1. Re:Wow! by og_sh0x · · Score: 5, Interesting

      I think Microsoft purchased a SCO license purely to feed the fire. A large company like Microsoft purchasing a SCO license will make their claims seem more valid in the public eye. It's more of a PR move than anything else.

  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. Gotta hand it to them... by TopShelf · · Score: 4, Interesting

    This is a pretty smart, although probably not overly significant, maneuver on MS's part. It won't cost them very much at all, but gives them an advantage in dealing with those parties who usually aren't central to the software purchasing process, but can get in the way (legal staff, procurement specialists, etc.).

    I highly doubt this will impact their competitive stance against other systems, but what it could do is reduce the duration of the sales cycle, and thus help their overall performance as a company.

    --
    Stop by my site where I write about ERP systems & more
  7. 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

  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.

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  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. Does this cover sued by Timeline Corporation? by Anonymous Coward · · Score: 3, Interesting

    Previously posted on /.
    http://www.theregister.co.uk/content/53/29419. html

  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 donutello · · Score: 4, Informative

      Geez, is reading really becoming that hard? From the article:

      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.

      Under the new provision, which took effect March 1, Microsoft removed the liability cap in intellectual property suits and altered other parts of the agreements that potentially expand its liability.
      (Emphasis mine)

      Now that wasn't that hard was it?

      --
      Mmmm.. Donuts
  13. Re:Clever? Diabolical.. read this. by jkrise · · Score: 3, Redundant

    Are software users really liable for the behavior of third parties?

    Now, assume SCO alleges that HP put SCOde into Windows, and you, a Windows user has to pay $1,500 per UnixWare license to cover your arse. Now, what MS is saying is this:
    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.

    In other words, even if MS pays you $200 per seat which is the cost of a Corporate license roughly, you're still facing a $1.300 liability from "litigious bastards" such as SCO!

    Instead of suffering more virus attacks and Slammer worms and still being faced with litigation, why not switch over to Linux? Legal risk? Let SCO sue me first, then we'll see.

    -

    --
    If you keep throwing chairs, one day you'll break windows....
  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. 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.
  17. 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.

  18. just more proof.. by Trailer+Trash · · Score: 3, Funny

    That Bill Gates really is Santa Claus. At what point will their incredible generosity meet its limit?

  19. So.. by ocie · · Score: 3, Funny

    If I get hauled into court for unauthorized copying of MS software, they will pay my legal bills? "Right hand, this is Left hand, hello? HELLO???"

    --
    JET Program: see Japan, meet intere
  20. Comment removed by account_deleted · · Score: 4, Funny

    Comment removed based on user account deletion

  21. Covers Legal Fees - How about actual Damages? by fanatic · · Score: 4, Informative
    I don't see where it says that you're covered if you use an MS porudcut and you lose the suit. The article did say: "Punitive damages, which can exceed the verdict for damages, were not addressed." And it also said:
    Issue: Third-party injury
    Old: Costs covered to value of software purchased.
    New: No liability cap, if Microsoft was grossly negligent or acted intentionally.
    So there are still loopholes here, for a company that has shown willingess to use and stretch every loophole to the breaking point.
    --
    "that's not encryption - it's a new perl script that I'm working on..." - from some Matrix parody
  22. 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