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Microsoft May Become Major Opponent of Patents?
UltimaGuy wrote to mention a story positing that Microsoft may one day be a major opponent of over-reaching patents. From the article: "Speaking at the LinuxWorld conference in London on Wednesday, Mark Shuttleworth, founder of the Ubuntu Linux distribution, said that although Microsoft is seen as being very pro-patent at the moment, if every other software maker enforced its patents in the same way then Microsoft would find it very difficult and expensive to do business. 'I think in ten years you will see Microsoft become a major opponent of patents and we will see very large software vendors turn around their position on patents,' Shuttleworth said."
Somehow I don't think money will speak any less loudly in ten years. I don't see Microsoft suffering terribly in the next ten years either.
A company as litigious as Microsoft (themselves victims of the litigious) will just use the cost of litigation to stifle their opponents. Their opponents (the little guys) would have to first have something Microsoft was really interested in, and would have to have the financial wherewithall to pursue Microsoft.
"...if every other software maker enforced its patents in the same way then Microsoft would find it very difficult and expensive to do business."
That's a very big if...
My ZooLoo
The thing is the patent climate has shifted a lot in the last few years. Traditionally most patents were being developed by big industry players and there was a kind of mutually assured destruction involved. That is, IBM never sued Microsoft because Microsoft could sue them right back. They make deals to use eachothers patents and thus the industry heavyweights get to control the industry. Small time players get shut out because they don't have the leverage of their own patent portfolios and don't have the money to license them.
In recent years though there have been a lot of people building patent portfolios as a business in itself. They don't put money into R&D and product development, they just have lawyers who are there to do nothing but enforce patents. No matter how many patents Microsoft has, they have no leverage against a company that doesn't produce anything. Given the rather low standards the patent office has held for innovation is software patents there are tons of ways Microsoft can get in trouble without knowing it.
The big problem this poses for Microsoft is that it's an unmeasureable risk. They don't know at any given time how many patents they might be violating and how much the damages are that they might be liable for because of them. With many of the patents they can settle quickly for relatively minimal license fees. But if some people want to play hardball for a big settlement there's little MS can do about it.
In the long run this problem is only going to get worse for them. There are a lot of people who recognize this as a viable business model. The risk is somewhat high, but the reward is huge if it works out. While any one of these may be small change to Microsoft, they can add up pretty quickly and put product releases at risk. With new software releases comign every couple of years but patents lasting almost 20 years, the pool of potentially violatable patents will only grow.
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Capitalism is another economic system, in which the market regulates itself.
A patent is a statement from the government regulating the market.
In which system does this belong?
larry