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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."

46 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 kegwell · · Score: 5, Funny

      Micro$oft is just too embarrassed to admit their Exchange server crashed. ;-)

    2. Re:How does one... by multiplexo · · Score: 2, Interesting
      My company has a similar policy. Online snapshots, local tape duplication in our libraries and off-site vaulting for six months. And we keep enough spare tapes on hand so that if our company is ever sued we can do a full backup of every system as it existed at the time of the lawsuit and send that offsite. I could understand if MIcrosoft had no e-mail backups, at one of my old jobs we very deliberately did not back up our mail spool, this was to give people the incentive to move things out of their inboxes and into local folders and was also because it would have reduced our exposure in case we were sued. But this was a deliberate and documented policy, it wasn't as if we said "oh yeah, we didn't back up our mail system for a few weeks and then started again." Microsoft fucked up big time here.

      --
      cheap labor conservatives - they want to keep you hungry enough to be thankful for minimum wage.
    3. 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.

    4. 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!
    5. 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.

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

      --
      You are being MICROattacked, from various angles, in a SOFT manner.
    7. Re:How does one... by pete6677 · · Score: 3, Interesting

      I think Microsoft realized that settling was a better option that facing obstruction of justice charges and then probably losing anyway. In this day and time, it's pretty much expected that big companies will pay out the occasional settlement for some wrongdoing, but criminal charges tend to result in a drop in stock price, along with possible jail time for certain executives.

    8. 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.

    9. Re:How does one... by mapmaker · · Score: 5, Informative
      Microsoft claimed that they deleted the emails intentionally because Burst's tech was worthless, so there was no point in saving the emails.

      This story almost worked, but then Burst's lawyers remembered that during the SUN/MSFT trial, Microsoft testified that ALL company email was backed up off site. So the judge ordered Microsoft to search the backups for the missing emails.

      Skip ahead half a year, and Microsoft claims in sworn testimony that they can't search the backups, because each company employee can choose which backup server they wish to archive on, and the company doesn't keep a master list of who's emails are on which server.

      Burst's lawyers then start subpoening the backup site employees, and get testimony from the woman in charge of email backups. Her name is Candy Stark. Candy's testimony was "Oh yeah, of course we've got a master spreadsheet that matches employees to servers. How else could we search the backups? Here it is right here."

      This past Thursday was when the hearing was to take place that would seal the fate of the Microsoft executives who'd given false testimony about said backup list. It was also probably going to result in the judge ordering Microsoft's backup servers seized by the court and searched by a third party. Not surprisingly, Microsoft settled 1/2 hour before that hearing was to start. Surprisingly, and unfortunately for BRST shareholders like me, the amount they paid to settle was a pittance.

      If you'd like to really dig into all the dirty detail of this lawsuit, go dig into the posts at Yahoo's BRST message board, or check out burstinvestors.com which is a site set up by one of the longtime BRST shareholders.

  2. A missing email! by ackthpt · · Score: 3, Funny
    The technology was not interesting to Microsoft, lawyers insisted, so the electronic trail of communications was erased."

    Strange, I found this one in my box a few years ago...

    To: Windows Media Player Department Head
    cc: Department of Things That Actually Work The First Time Head

    This patented technology for increasing the efficiency of video and audio streaming looks great. Since we're such a big company and with our Bucket o' Lawyers we could drive anyone into the ground for having the temerity to sue us for IP theft, let's just co-opt it like we do everything else.

    By the way, how is it going with that project for selectively deleting emails from all mailboxes, archives, backup servers, backup tapes? Why don't you pick something out and just give it a test run.

    -Bill
    --

    A feeling of having made the same mistake before: Deja Foobar
  3. 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.

  4. It's interesting... by xeon4life · · Score: 4, Interesting

    How they attack Microsoft, as their patents can apply to many other multimedia streaming. Who knows what else can be targeted? WinAmp? Hopefully not.

    Companies that exist for the sole purpose of patenting ideas and sitting on them disgust me.

    --
    Real programmers can write assembly code in any language. -- Larry Wall
    1. 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.

    2. 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.
  5. New version of Clippy by bigtallmofo · · Score: 5, Funny

    The missing emails were actually attributed to a rarely-used update to Outlook's Clippy-assistant:

    "It looks like you're being sued. Would you like me to delete all correspondence related to the lawsuit?"

    --
    I'm a big tall mofo.
    1. Re:New version of Clippy by Timesprout · · Score: 2, Interesting

      I know you are trying to be funny but I have worked on exchange/outlook solutions where the ability to permanently delete all email, copies backups etc from/to an employee or on a certain topic at the click of a button has been highly desirable. So much communication is electronic these days that if it 'disappears' then its a case of he said she said and your legal team are already up and running with a major head start.

      --
      Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
      What truth?
      There is no dupe
    2. Re:New version of Clippy by rs79 · · Score: 2, Interesting

      As long as we're talking about dubious American corporate practices... I lived in Los Angeles once and was paid to port an accounting package from unix to pc. It was a litttle unusual as you could go in after the fact and juggle all sorts of stuff in rather odd ways.

      I was told it was for the movie industry and it was explained to me they would take out 10K in the morning in cash, buy tons of drugs then needed to put it on the books as various production expenses while putting whatever cash was left over, back.

      The same company I was a consultant for doing this wanted to bid on a project for the city but it required a $15,000.00 cashiers check. They either didn't want to or couldn't afford it so they got a casheirs check for that amount, photocopied it, deposited the check back into their own account and sent the photocopy of the check with the proposal to the city. When they called weeks later the city was somewhat embarrassed as they could only find a photocopy of the check, not the original. They didn't get the contract and retured the 15K. The vice president had a graduate degree in Hungarian fairy tales (I am not making this up) so it was, to say the least, an entertaining place to work, but, uh...

      I quit. I made sure I left lots of rotting fruit hidden in various places. Took them two years to get rid of the flies I heard.

      Do I believe Microsoft deleted those mails as uninteresting? Uh, no.

      --
      Need Mercedes parts ?
  6. Proper Usage by rincebrain · · Score: 3, Informative

    The reason they couldn't find the e-mails is that they didn't "aks" the right question.

    --
    It's only an insult if it's not true.
  7. 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 rbochan · · Score: 2, Interesting

      Perhaps it explains Microsft's recent about face with regards to patents...

      --
      ...Rob
      The American Dream isn't an SUV and a house in the suburbs; it's Don't Tread On Me.
    2. 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.

  8. 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.

  9. Re:again... by Anonymous Coward · · Score: 4, Interesting

    Given that Burst holds mostly trivial and evil software patents (send bursts of data when network conditions are good... GENIUS, I'd NEVER have thought of that! (that's sarcasm, BTW...)), this is pretty much one thief and another, much larger, thief, not a "good guy vs. bad guy" thing.

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

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

  11. great company by zerkon · · Score: 5, Funny

    I don't think I want to buy software from a company that randomly loses data... oh wait I dont

  12. MS is no stranger by CrackedButter · · Score: 2, Funny

    to losing emails. This isn't the first time. Surely there is a law for doing this. It seems like their get out of jail card. Whoops, we lost the emails so there goes *your* case. In any case, didn't Burst keep a copy either?

    1. Re:MS is no stranger by Tangurena · · Score: 2, Informative
      The reason that they were found out was that MS refused to hand over e-mails that Burst already had copies of.

      Destroying evidence that you are supposed to hand over during discovery looks extremely bad to judges and lawyers.

  13. 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"
  14. 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.

  15. 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.
  16. Re:Another by techno-vampire · · Score: 2, Funny
    Do we need yet another Microsoft is the debil story?

    Is that like in the old story, The Debil and Daniel Wevster?

    --
    Good, inexpensive web hosting
  17. 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.

  18. Re:Aksed? by Anonymous Coward · · Score: 2, Funny

    I aks(axe) you, does this atrocity occur in any other English speaking countries, or is it strictly a product of the U.S. educational systems.

    I'd say "aksed" is a product of our edumacation system.

  19. Re:Not Criminal, Civil by Ph33r+th3+g(O)at · · Score: 2, Interesting
    Cash settlements don't usually end criminal investigations.

    Worked for Michael Jackson at least once before. If victims refuse to testify or recant, it's pretty hard for even the best prosecutor to get a confiction. And with enough money (or intimidation, or both) victims can be made to do those things.

    --
    I too have felt the cold finger of injustice.
  20. Re:Not Criminal, Civil by captwheeler · · Score: 2, Interesting
    ...it's a civil issue.

    MS history and monopoly status should make this more then civil.

    Cash settlements don't usually end criminal investigations.

    Consider Michael Jackson -- cash can stop criminal investigations from even starting.

    Closed settlements are bad for criminal investigations, and we only allow them to discourage long trials. This is almost ideal for large companies: a game few can afford, or sealed settlement.

    --

    Thanks for putting on the feedbag. Thanks for going all out. Thanks for showing me your Swiss Army knife.

  21. 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.
  22. 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."
    1. Re:Got off cheap. by mapmaker · · Score: 2, Interesting

      As someone who's been following this case for two years and bought 22440 shares of BRST, you can not imagine how much I agree with you.

      The most comprehensive discussion of this case is over on the Yahoo's BRST message board. Two days ago over there we were all picking out the color of our Porches. Now we're hoping we can get out with our shirts on Monday.

  23. Re:Justice debunked by inode_buddha · · Score: 2, Insightful

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

    --
    C|N>K
  24. The SCO connection by div_2n · · Score: 5, Interesting

    It could be just coincidence, but Burst.com is also a company held by Baystar Capital. These are the people responsible for $50 million in funding for the SCO legal case against IBM over Linux. But then you would have to believe that when Microsoft helped Baystar and SCO meet was a coincidence. And don't forget when Microsoft bought $12 million in SCO licenses when they didn't need them.

    And who can forget when Sun bought SCO licenses too and then less than a year later, Microsoft and Sun were best friends and settled their lawsuits with each other.

    Maybe some of this stuff is a coincidence and then again maybe none of it is. I find it hard to believe that all of it is a coincidence though.

  25. deleting vs. keeping emails by dorfsmay · · Score: 2, Interesting

    I don't want to take M$ defense here, what they did is bad. But for all of those who say "How could they have deleted emails ?", well there are two school of thoughts around these days:
    1. keep all emails, so anything can be tracked back
    2. file anything that you are legally obliged to keep, and delete everything else, making sure that it doesn't even get backed up.
    The second strategy has started to be used after the ENRON fiasco. Most companies still use the first one, but you do start to see more and more (still a small number though) using the former.