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Microsoft vs. Burst.com

rocketjam writes "Robert X. Cringley has an interesting story on one of Microsoft's many little-known legal cases. Burst.com is suing Microsoft, claiming MS negotiated in bad faith for over a year before stealing Burst's patented technology for increasing the efficiency of video and audio streaming. After Microsoft submitted all emails associated with the their dealings with Burst to the court, Burst's lawyers discovered a 35-week gap of missing mail during a critical portion of the negotiations. When the judge learned the Sun vs. Microsoft antitrust case had revealed that MS keeps backups of all emails on over 100,000 tapes stored offsite, he ordered them to come up with the missing messages."

19 of 410 comments (clear)

  1. Amazing by WwWonka · · Score: 5, Interesting

    That totally boggles the mind that companies/individuals still think that they can play the "electronic ignorance" game with the court and legal computer experts. It seems as if the time of being able to pull the wool over the courts eyes due to the lack of knowledge of technology is slowing coming to an end.

    What's even more amazing, in this case, is that it is Microsoft playing "oops, backups? whats that?"

  2. hitech by hey · · Score: 5, Funny

    The lawyers printed out all the message (140 boxes) then sorted them by hand it seems to find the missing dates. Maybe they should have used a computer.

    1. Re:hitech by Waffle+Iron · · Score: 5, Funny

      If I were billing $250 per hour to sort papers, I wouldn't use a computer either. In fact, I would put on a pair of oven mitts. (We wouldn't want to get a paper cut, after all.)

    2. Re:hitech by pantherace · · Score: 5, Insightful

      Maybe, unless, you, like their lawyers, were on contingency...

  3. The real problem with these cases... by Anonymous Coward · · Score: 5, Insightful

    ...is that they happen again and again. It's cheaper for MS to just pay small companies "small" settlements of $20-50 million.

    That's chump change to MS but lots of money to most smaller companies -- so MS just buys it's way out of these lawsuits until the cows come home.

    Unfortunately, something like this isn't enough to really nail MS and make them change permanently. I almost yawn when I hear about it right now -- it's somewhat depressing that a strategy like this can work, but it makes great numbers sense.

    Due to my own involvement in these kinds of things I'm posting anonymously, which sucks...

  4. In other news from the future by Timesprout · · Score: 5, Funny

    Seattle Firefighters will tomorrow be engaged in a struggle to supress a fire after a large explosion at a data center used by Microsoft to store their offsite backups. I cant understand it the Fire Chief will state, the building seems to have flooded with acid and the 2 tons of explosives which were being stored there for some reason exploded, very unusual.

    A spokesman for Microsoft will say "its unfortunate" without a hint of irony.

    --
    Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
    What truth?
    There is no dupe
  5. Penalties? by Fnkmaster · · Score: 5, Interesting

    Am I the only one who thinks there should be real penalties for this kind of behavior? I mean, I understand you are supposed to try to win a case and everything, but failing to produce evidence on demand from a court should be punished, especially when the culprit has a history of presenting false and misleading information in court, and encouraging its legal agents to lie under oath. Why the fuck is it that we don't hold Big Faceless Corporations to the same standards of culpability as we hold individuals? If a small business pulled this shit in court, you'd get it up the wazoo, but when Microsoft does it, it's like the judicial system has no memory from one incident to the next.

    1. Re:Penalties? by rusty0101 · · Score: 5, Funny

      [sarcasm] You mean something like putting the legal representitives for Microsoft or the head of the company in jail for contempt of court until the judge's orders are carried out? Why would any judge order something like that? It's not like the people failing to follow those orders are accused of witholding their source of information for a story, or their encryption keys.

      I mean all that Microsoft is accused of doing is committing software piracy. Stealing another companies pattented technology and embedding it within one of their own products.

      Surely this doesn't rise to the level of a felony or anything do you think?

      [/sarcasm]
      -Rusty

      --
      You never know...
    2. Re:Penalties? by krammit · · Score: 5, Insightful

      Agreed in full. The biggest problem with the US is that corporations are given the same rights and treated as regular citizens without having the burdens or responsibility of that designation placed on them. When a company executice pockets millions of dollars by artificially inflating stock prices and then selling it off before leaving the company, we call it a golden parachute. But if an individual did something like that, it would be appropriately called robbery. If, during the course of a trial, a normal person hides evidence or lies under oath, they are held in contempt and thrown in jail. If a company does so, it's strategic. Bullshit.

      Truth is, until this country recognizes that we can not treate corporate entities as if they were private citizens, you will continue to see this kind of hypocrisy.

      --
      "Watch your cornhole, bud."
  6. 35 WEEKS? by ellem · · Score: 5, Insightful

    OK 35 minutes, who'd even know?

    35 hours, What? Frigging Veritas... Damnit Bill get them on the phone!

    35 Days, OH THAT IS IT! I want the back up guy fired... jeez fellas we're really sorry

    35 WEEKS? Yes your honor we were trying to pull one over on you....

    --
    This .sig is fake but accurate.
  7. Software Patents vs Microsoft by levram2 · · Score: 5, Funny

    I forget, is it odd days or even days that software patents are worse than Microsoft on Slashdot?

  8. I like it! by rixstep · · Score: 5, Interesting

    If you check the related links at that article, you will find another interesting theory by Cringley, who cites any number of cases where MS has ripped off companies, pretending to be interested in buying their technology, but only flirting long enough to steal it. I normally don't like Cringley, but this time he seems spot on.

  9. Patents since 1450s by Wyatt+Earp · · Score: 5, Informative

    http://www.m-cam.com/~watsonj/usptohistory.html

    The modern concept of the patent was established in England where, in 1449, King Henry VI awarded a patent to John of Utynam for stained glass manufacturing.

    "Beginning in 1552, a series of "letters patents" was issued by the Crown. The monarchy began a trend of issuing patents for its own benefit and for the benefit of officers and friends of the Court.4 Patents were issued on entire industries, not just inventions. For example, the Stationers enjoyed complete control over the publishing industry in England. The balance of power soon shifted towards those whom the monarchy decided to favor. Reform began with reign of Queen Elizabeth I. Francis Bacon commented that the Queen would grant patents for any invention that she deemed useful to the country. In an effort to curb further abuses of power, Parliament, in 1624, passed the English Statute of Monopolies, which outlawed all royally sanctioned monopolies. Realizing the importance of protecting inventors and the economic benefits associated with encouraging innovation, an exception was allowed for patents of "new manufactures." These patents were awarded to the inventor as long as their new devices did not hurt trade or result in price increases. Additionally, a statutory limit of fourteen years was imposed on English patents."

  10. Coincidentally... by Sophrosyne · · Score: 5, Funny
    When the judge learned the Sun vs. Microsoft antitrust case had revealed that MS keeps backups of all emails on over 100,000 tapes stored offsite, he ordered them to come up with the missing messages."

    Coincidentally a large shipment of magnets were just shipped to the address of a S. Ballmer...
  11. Clippy. by zCyl · · Score: 5, Funny

    Maybe they should have used a computer.

    Clippy: "It looks like you're trying to sue us, would you like me to delete all of your files?"

  12. Not worth keeping? by FearUncertaintyDoubt · · Score: 5, Interesting
    So microsoft says that they deleted e-mails because the technology was unimpressive and the e-mails not worth keeping? I think that it would be hard for that to hold water when there probably is thousands of e-mails from the same 35-week time period that are far more mundane and much less worth keeping:

    It's Anne Grabowski's birthday! Ice cream cake in Bldg 4-R break room!

    Last chance to sign up for this year's Secret Santa/Hidden Hannukah Harry! RSVP with Roger McGillicuddy before December 12th.

    Just wanted everyone to know that Bill and Valerie Trammel had a beautiful 8lb, 7oz baby girl at 8:30 last night at Cyprus Creek Memorial Hospital. So let's all welcome little Hortence into the world! Yay!

    And so on...

    "Yes, your honor, we felt that those e-mails were important enough not to erase from Microsoft's permanent record, but the ones relating to the negotiations for which we were under a legally-binding non-disclosure agreement were just, so, pointless, you know?"

  13. microsoft behavior is that same as everyone else by vnv · · Score: 5, Insightful
    Microsoft is acting the same way every business in the USA acts. Small businesses are certainly not held to any greater standard. Having been to court a number of times for small business bankruptcy proceedings, it is very common for a small business to lose hundreds of thousands of dollars in bad loans, employee theft, and via other very suspicious actions or incidents. And then of course, because of a break-in, plumbing leak, or other calamity, it is quite normal for the business to have ZERO records of what happened to the money.

    Even listening to the most amazing stories about what happened to huge amounts of moeny, the Federal bankruptcy agent doesn't even look up. He's heard it all before so many times, it's the same old shit. Everybody lies.

    I don't suppose you read about any Enron executives going to jail recently, did you? Of course not. What Enron did is no different than what every big corporation does. Some are just better than others and if you steal too much at the wrong time, the house of cards can fall down. Executives don't go to jail for stealing. Can you imagine a trial of executives by their peers -- other executives? "Well, Kenny, you should have used my guys to set up your fake accounts. You wouldn't have been found out for another couple years and you could have paid Ashcroft his cut and moved the rest of the money to a good bank in Grand Cayman by then."

    Maybe these standards of culpability that you are referring to only exist in your head? There is certainly not much evidence in the real world of anything that resembles "business morality". Almost every business in the USA is crooked. With a giant overbearing government that has a bloodthirst for taking your money and then returning less than 4 cents on each tax dollar, would a rational being expect anything else? If it's okay for the government to lie, cheat, and steal, why should a small business, big business, investor, or anyone else do different?

    If you unplug from the morality that is taught to worker units so they are obedient and efficient, you'll be in for a major wake-up call. Your job is to work and pay your taxes, that is all. And good workers are moral workers. Keeps costs down and profits up. All around you, the country is being looted. The workers are going to wake up one day and realize they are fucked because they've been robbed blind while they've had their faces glued to their television sets, absorbing the latest disinformation from the media and the government.

  14. Re:microsoft behavior is the same as everyone else by vnv · · Score: 5, Interesting
    What I'm trying to communicate isn't about Marx and Engels. Communism was not invented to do anything good for the worker, or to form any sort of utopia; rather, it was invented as a mechanism to change the world's balance of power. As Chairman Mao once said, "Communism is not love. Communism is a hammer which we use to crush the enemy."

    Instead of communism what I think is worth looking at is Adam Smith's original vision of capitalism. As you likely know, Adam Smith wrote "Wealth of Nations" which laid out the core principles of a capitalist system. However, Adam Smith's vision was not contained in this one book. Rather, Adam Smith always maintained that to build a sustainable and socially beneficial economic system that you needed the basic capitalist system ("Wealth of Nations", 1763) together with the moral system which he detailed in "Theory of Moral Sentiments", 1759.

    Because Adam Smith was never able to integrate the two systems of theory that he laid out, morality and capitalism, into one integrated system, there has always been controversy on how to build a sustainable moral economic system. In "Theory of Moral Sentiments", Smith emphasizes that it is sympathy that is a fundamental human motive, while in "Wealth of Nations", Smith instead says the motive is "self-interest". Obviously there is much ground between these two sides of human nature.

    Business places a large emphasis on having a strong legal system. As without such a system, many business transactions would cost more, or simply be impossible. It was the Common Law, and strict adherence to it, that enabled a new era of business to flourish. And the Common Law is based on a moral system, much of which was laid out in religious teachings. Thus we can see that morality is the foundation of easy, low-cost, flexible human collaboration and exchange. Put another way, without a strong legal system, based on our moral system, there is no foundation for a mutually beneficial society.

    The world has seen how a ruthless amoral company like Microsoft has flourished in a societal and business environment that has no underlying moral foundation. No matter what the cost to the individual and to society, because of Microsoft's monopoly, we are forced to pay the Microsoft tax. Not merely do we have to pay the tax, but in our brief lives, we also suffer the cost of the dearth of innovation that exists under the shadow of a monopoly. And it is not just Microsoft, but nearly all companies that extract money from their customers and deliver far less value than was promised. And today's governments deliver just a miniscule fraction of every tax dollar back to the people in the form of tangible goods and services. The rest disappears because of corruption.

    I offer the aside that as mainstream people, we don't even have accurate concepts for the "cost" of anything as the amoral capitalist system pushes the bulk of real costs into either or both of the "tomorrow" and "other people" columns. Without the ability to see how much things really cost, the mainstream person cannot make rational decisions, nor will their decisions be moral.

    Needless to say, we see in today's world that there is an ever increasing growth of corruption. This increase is due to the fact that the business world and legal system have dropped nearly all adherence to a moral system. Everything is amoral money-centric self-interest. And thus we end up with a corrupt system, an inefficient system, large-scale society ills and the widespread looting that is going on today. Ever wonder how Microsoft is accumulating cash so fast? Immoral monopoly pricing certainly helps. And the energy companies make Microsoft look like a beginner. Furthermore, because there is no care for the welfare of our fellow human beings, nor even any care for Nature herself, we have created vast environmental problems that have a profound negative effect on th

  15. Re:I don't believe it by randyest · · Score: 5, Informative

    Me personally? A lot. Like 3-4 emails per day are covered by NDA, and the lawyers make us put those silly little sigs that do nothing. Oh, and we use Thawte certificates to encrypt and sign every one of them (well, even the non-NDA ones usually, out of habit).

    In the ASIC design industry, I'd say this is pretty common. All discussions between vendor and customer are under NDA, sometimes even before any discussions at all happen there are multiple NDAs in place. And lots of the business (even exchange of IP in source code attachments) takes place by email.

    Other industries? I'm not sure.

    --
    everything in moderation