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Burst.com and Microsoft Settle

prostoalex writes "Microsoft and Burst.com announced a tentative settlement, where Microsoft will pay Californian company $60 mln for allegedly stolen multimedia streaming software. Robert X. Cringely provided the recap of the court case back in 2003 (and Slashdot discussion ensued). According to Burst claims, Microsoft entered a non-disclosure agreement with the company to learn about Burst's multimedia streaming technology. Later the technology, for which Burst has 37 patents, has been found in Windows Media Player. When aksed to present the archives of the e-mails and all communications within the company for the trial, Microsoft somehow presented all the documents that preceded before the deal and the documents that followed it. The e-mails during the 35 weeks that negotiations were held mysteriously disappeared. In court Microsoft claimed the e-mails were erased from employee's desktops, e-mail servers and server backups. The technology was not interesting to Microsoft, lawyers insisted, so the electronic trail of communications was erased."

29 of 226 comments (clear)

  1. How does one... by maotx · · Score: 5, Insightful

    In court Microsoft claimed the e-mails were erased from employee's desktops, e-mail servers and server backups.

    I don't know how Microsoft's IT structure works but I know at where I work we have snapshots of all of our data done every week and held for a month. Then at the month limit we archive our data for another year. Not to mention the nightly incremental backups. Essentially we can go back to any time of a week for a month, then in month increments and recover that snapshot.

    I guess what I'm getting at is how exactly does a company lose "uninteresting" data spanning a period of 35 weeks unless it's intentional?

    It would be near impossible for someone to cover ones tracks without going through only God knows how many tapes and erasing said data.

    --
    I'm a virgo and on Slashdot. Coincidence? Yes.
    1. Re:How does one... by Jason+Earl · · Score: 4, Insightful

      It's quite simple. The loss of the data wasn't unintentional, rather it was deliberate. Microsoft simply went in front of a judge to see if he would buy the story, when he didn't and a jury trial was emminent, Microsoft wisely settled. Microsoft's, "the dog ate my homework," defense was a long shot, but Microsoft spends a lot of time in the court room, and it can't really afford to roll over every time someone sues.

    2. Re:How does one... by DNS-and-BIND · · Score: 4, Insightful
      Duh.

      MICROSOFT LIED

      Of course, they got caught, and settled out of court for an appropriate bribe (err...settlement)

      You'd be surprised how often this works. The cost of further litigation only enriches the lawyers, not the shareholders involved.

      PHB1: How much is this gonna cost us?
      Accountant1: $XX
      PHB2: Let's lie and say we lost the emails. How much will this cost us?
      Accountant1: The same as if we bribed them (settled)
      PHB2: OK, let's see if this 'dog ate my homework' defense actually works...sometimes it does!

      (time elapses)

      PHB1: It didn't work. Release the bankers!
      Accountant1: OK!
      PHB2: We sure have fulfilled our obligations regarding our shareholders!
      PHB1: Amen, brother.
      Accountant1: Whatever you say!

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    3. Re:How does one... by bigberk · · Score: 2, Insightful

      SEC1: You are being charged with fraud, come with me sirs.

      PHB1: I did not intentionally participate in any wrongdoing. I had no idea my underlings were conducting shady business. We run a tight ship here.
      Accountant1: I'm just a dumb fucking accountant and I'm not accountable to anyone. And there's no conflict of interest in my line of work. I take a shit on GAAP daily.

    4. Re:How does one... by SpaceLifeForm · · Score: 2, Insightful
      BA: BWAHAHAHAHAHAHA!

      --
      You are being MICROattacked, from various angles, in a SOFT manner.
    5. Re:How does one... by Jason+Earl · · Score: 2, Insightful

      Exactly. Microsoft floated the one gambit that had any chance at all of getting them off the hook with Burst. If they could have gotten a judge to buy into their story then Microsoft had a chance at trial. Once that scheme fell through settling was really the only option.

      Still, Microsoft forced Burst and Burst's attorneys to put up an expensive fight. This litigation went on for a long time. By taking the litigation this far Microsoft has shown that it is not a "soft" target. If you aren't well-financed and if you can't afford excellent legal counsel then don't even think about suing Microsoft, even if Microsoft is clearly in the wrong.

      Of course, on the other hand I imagine that lots of lawyers would work for a percentage of the settlement. Microsoft certainly has plenty of cash.

  2. Shows the fluidity of the law by filmmaker · · Score: 3, Insightful

    Microsoft should see its day in court for this. This case was so clearly predatory and demonstrates the continued belligerence of Microsoft and its corporate strategy. I'm not sure if Burst.com decided that it was too expensive to take this to court, or if Microsoft simply made them an offer they couldn't refuse. Just shows how fluid the law is when there's enough money in the equation. With settlements being the de facto standard response to criminal corporate behavoir, it's no wonder anti-social companies like MS are more and more common - meaining known to the public to be criminals. What really blows me away is the public acceptance, or at least apathy, of companies like MS because it's more practical to look the other way.

    1. Re:Shows the fluidity of the law by filmmaker · · Score: 2, Insightful

      Not in a large organization, no. I did work for a few different outfits on the campus of Michigan State Univ., where I got a taste of how bizarre large beauracracies can be. Talk about the left hand not knowing what the right is doing...

      But I've never personally seen the Machiavellian stuff you're alluding to, and that MS eats for breakfast.

  3. Trivial software patents are bad... by Rattencremesuppe · · Score: 5, Insightful
    ...unless Microsoft is sued?

    Double standards, anyone?

    1. Re:Trivial software patents are bad... by antiMStroll · · Score: 2, Insightful
      IP is the foundation of information technology, unless Microsoft is stealing it? Double standards anyone?

      This is core argument, companies like MS pushing hard for IP legislation ignoring the laws at will. So yes, I'ld like to see them roast for the hypocrisy.

    2. Re:Trivial software patents are bad... by Anonymous Coward · · Score: 1, Insightful

      If they'd just violated the patents, that's one thing--the patents shouldn't exist.

      However, if they entered into a business relationship, stole all their tech, and then covered it up when caught, well.

      They broke an NDA; patents or not that's still illegal.

      And even in the Eolas case, I don't like that MS is being sued over a software patent. I think it's their just desserts, but I don't like it. You may note that the list of those who have filed amicus briefs on Microsoft's behalf includes Slashdot favorites like the EFF...

  4. Yet another case MS doesn't take the fault by Anonymous Coward · · Score: 5, Insightful

    Seriously, this is getting tedious.

    This case had all the indications that MS workers would finally be found guilty of perjury and sent to jail.

    And if they were found guilty of perjury, I would really like to see the crooks doing hard time. In fact, I wish some DA picks up the leads (even after the settlement) and investigate what would possibly be the most blatant case of lying to a Court Judge we have notice of.

    Then comes money and it's all forgotten. Now they can go on and do the same thing to the next victim they can find.

    Someone define Justice for me, please.

  5. greed Greed GREED by Anonymous Coward · · Score: 1, Insightful

    Is that money I smell? Welcome to Slashdot where we advertise gadgets and technology you must have and the lawsuits behind them. I love my iPod I couldn't live without it. Isn't the war in Iraq great? Oh yeah, Klerck is dead. Ho hum.

    Materialism.

    I spent my week putting in overtime because my job demands it. Spent 60 hours just so I would have a job to buy stuff I enjoy.

    Petit Materialism.

    I log into Slashdot to tell everyone the joys of Apple computing. I paid a lot for my Mini-Me Mac but it was worth it! I feel so great I must tell the world.

    GDP is going up. Humanity is going down.

  6. Is this lawsuit reform? by SocietyoftheFist · · Score: 2, Insightful

    As long as you have enough money you are above the law?

  7. Breaking the law for fun and profit by voisine · · Score: 4, Insightful

    Once again Microsoft learns that laws are now impediment. Everyone complains about their illegal business practices, but why shouldn't they do what's illegal? It's not like they hide it. They simply say, yes we broke the law and we accept the penalty because the penalty doesn't even come close to the amount of money we've made from the illegal practice. Time and again they learn that our legal system is totaly incapable of punishment or correction for mega corporation like them. I say bravo for providing such a vivid demonstration of how broken our legal system is. If it's brokeness is not plainly revealed, it'll never get fixed.

    1. Re:Breaking the law for fun and profit by Tenebrious1 · · Score: 3, Insightful

      They simply say, yes we broke the law and we accept the penalty because the penalty doesn't even come close to the amount of money we've made from the illegal practice.

      No, the legal system is not broken, the settlement shows that the law worked as it should. Microsoft saw that there was a good chance they would lose the case and face heavy fines and penalties, and thus they chose to offer a settlement. Burst could have declined the offer and allowed the law to work, but they chose to take the money and run. That doesn't mean the law is broken.

      In accepting the settlement Burst dropped the claim of copyright infringement. Remember, copyrights are infringed only if it's unauthorized. If Burst accepts the settlement they're authorizing MS to use the code and thus there is no copyright infringement. This time the law worked as it should.

      --
      -- If god wanted me to have a sig, he'd have given me a sense of humor.
    2. Re:Breaking the law for fun and profit by nagora · · Score: 4, Insightful
      No, the legal system is not broken, the settlement shows that the law worked as it should.

      No it didn't. The law pretends that corperations are legal entities when it wants to protect execs from taking responsibility but when a company comes up in court over and over again it doesn't get three-strikes rules or any of that shit you or I would get. Just one more slapped hand. Again. That's not how the law should work.

      If Burst accepts the settlement they're authorizing MS to use the code

      No, they're accepting that they have to let MS do that or become a company that has no resources other than those needed to fight their case. They look like they would win after a decate or so in court, but maybe they don't want to do that; aybe they're rather get some work done.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  8. Really, this is nothing new by iced_773 · · Score: 4, Insightful

    Remember, way back in the Win3.x days, that whole thing about DoubleSpace and Stacker? These things have happened before, and they will probably happen again.

    1. Re:Really, this is nothing new by Antique+Geekmeister · · Score: 2, Insightful

      And the later theft of core DEC operating system technologies for NT, by hiring David Cutler away along with his cronies and taking much of David's operating sytem work on VMS and the Prism development project with him.

      Check out the many, many articles on the DEC lawsuit with Microsoft, and how they settled for making NT always run on Alphas. Ooops, the Alpha hardware secrets got stolen by Microsoft's bed-buddy, Intel? Too bad how that happens when you focus on building new technologies and prefer to settle out of court, rather than actually convicting the felons and making them stop stealing.

  9. patenting by bryanpas · · Score: 1, Insightful

    Companies which exist for the sole purpose of creating and making money off of patents are called RESEARCH companies.... Our government created the patent system on purpose, not by accident. It is supposed to, and in most cases, does stimulate creativity and research.

    Companies that IGNORE other peoples' intellectual property and just take what isn't theirs disgust me.

    1. Re:patenting by Anonymous Coward · · Score: 1, Insightful

      People who confusing copying with taking and use the propaganda term "intellectual property" disgust me. Fuck you.

  10. Big mistake by WindBourne · · Score: 3, Insightful

    They should have held out for more than a billion. The fact the MS deleted the e-mail says they were horribly guilty. In addition, this is one area that MS is trying desperately to win. It is easily worth several billions to MS.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  11. Re:It's interesting... by Anonymous Coward · · Score: 5, Insightful

    well you're wrong. Burst was not just a patent company, they developed and produced a product, they did not just patent ideas.

    Perhaps you should be worrying about Microsofts actions and seeming lack of punishment instead.

    Microsoft disgusts me.

  12. The Corporation by mabu · · Score: 3, Insightful

    After watching the great documentary The Corporation, all of this makes sense, since the government basically has given corporations all the rights of humans, but none of the responsibility or accountability. So Microsoft can blatantly spit in the face of court subpoenas and suffer virtually no consequences. Sad, but welcome to the 21st corporate-centric century.

  13. mln? by Dun+Malg · · Score: 3, Insightful
    "will pay Californian company $60 mln "

    Gods damn it, you ADD children with your IM and SMS vocabularies need to stop making up your own abbreviations when talking with regular people. Appropriate abbreviations for "million" are "mil" or "M". Saying "mln" is just ignorant.

    --
    If a job's not worth doing, it's not worth doing right.
  14. Got off cheap. by Nom+du+Keyboard · · Score: 2, Insightful

    Microsoft got off cheap. Very, very cheap.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  15. Re:It's interesting... by smart_ass · · Score: 2, Insightful

    RTFA ... they didn't just sit on it. In fact at some point Microsoft was in negotiations to buy SAID technology. They must have been out actively marketing it, then got hamstringed by one potential buyer.

    --
    Ouch ... did I just say that.
  16. Re:Justice debunked by inode_buddha · · Score: 2, Insightful

    Here, have a glass of milk. Would you like some cookies too?

    --
    C|N>K
  17. Noone suggested software patents are good by Anonymous Coward · · Score: 1, Insightful

    Noone suggested software patents are good (except Microsoft). You just posted that without reading what people were saying.

    People are saying that it's good that they are getting bitten by their own tactics because maybe they will realise that software patents are a bad idea.

    There are no double standards there.