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Used Microsoft Licenses For Sale

An anonymous reader writes "A secondhand dealer in Britain has been given the green light by Microsoft to resell software licenses from insolvent or downsizing companies, ZDNet is reporting. The reseller, Disclic, is legally allowed to sell the licenses at a discounted rate of between 20 percent to 50 percent, much lower than Microsoft's resellers. Partners of the software giant have expressed unhappiness over the issue as it undercuts their business. "I've never heard the like, and I am stunned," said Gordon Davies, the commercial director of Microsoft reseller Compusys. "This is clearly going to take away revenue from the channel and from Microsoft," he said."

222 comments

  1. great by scenestar · · Score: 5, Informative

    I can't wait for the day I can buy "used" mp3s too!

    --
    perpetually dwelling in the -1 pits
    1. Re:great by vettemph · · Score: 5, Funny

      >>> I can't wait for the day I can buy "used" mp3s too!

      why would you buy them with so many people giving away used ones today? :)

      --
      The government which is strong enough to protect you from everything is strong enough to take everything from you.
    2. Re:great by Anonymous Coward · · Score: 0

      I have several gigs of used, sticky, pr0n you can buy :o)

    3. Re:great by akgoatley · · Score: 1, Interesting

      Yes, humour is fine, but the scary point about this is that Disclic are so afraid of Microsoft that they asked. In theory, IMO, purchasing a software licence should be similar to a 'debt': The buyer pays a fee for the assurance that the 'debt' (software assurance) will be honoured in future.

      Either the agreement specifies that licenses aren't transferable, or it doesn't. If it does then Disclic have no grounds for doing this - Microsoft will not have to honour the 'debt'. In this case, even with Microsoft's permission, Microsoft are not obliged to honour the agreement.

      If it doesn't then Disclic don't have to ask Microsoft's permission. Why did they bother? Because they were scared, I'll bet. Scared of mindless lawsuits - they'll run out of money before Microsoft do.

      Ashton

      --
      (-(friend^2))^(1/2)
      Incoming mod-bombing for having a different viewpoint, 2 o'clock! Heads up!
    4. Re:great by Anonymous Coward · · Score: 0

      Umm.. Why is this post moderated to -1? Not even a reason (i.e., Troll, etc.) next to it.

    5. Re:great by ModernGeek · · Score: 1

      I'm sure once Microsoft and the RIAA catch on to it, they will pass new laws to stop this from happening. I wish Microsoft would hurry up and outlaw spyware while they are at it.

      --
      Sig: I stole this sig.
    6. Re:great by Anonymous Coward · · Score: 0

      The post misses the part where it should say: "omg linux is sooo much graeter lol wtf!!!"

    7. Re:great by X0563511 · · Score: 1

      That would be the mark of the "Overrated" mod. Not meta-modable either.

      --
      For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
    8. Re:great by Anonymous Coward · · Score: 0

      On closer inspection, it appears that the starting score was -1:
      http://it.slashdot.org/comments.pl?sid=167955&cid= 14004461
      Ive seen it with a few posters, it usually happens with serial trolls, but this guy's history dosn't seem to merit it: http://slashdot.org/~akgoatley

    9. Re:great by Anonymous Coward · · Score: 0

      Maybe he made the mistake of saying something true that is negative about Apple...

  2. Predatory Pricing? No. by dada21 · · Score: 3, Insightful

    The supply of these licenses is limited and must be labeled "used." Sure, CDs are CDs but it still is a different product. Competitors are free to negotiate a similar license, or even buy these cheap used copies from the reseller and resell them themselves at a tiny profit.

    This situation makes me think of the whole (wrong) idea of predatory pricing. It doesn't exist. In 1904, Henry Dow exported bromine to Germany, to sell at a price far below the cartels. The cartels decided to drop their price below cost to destroy Dow's business. Dow bought their sub-cost Bromine and resold it to the German market at a hefty pricing.

    This deal is good for budget-conscious consumers and will only be a blip for most resellers. There are numerous ways for them to compete. Whining to Microsoft is not an answer.

  3. Unfortunate name... by Anonymous Coward · · Score: 0

    Disclic?

    1. Re:Unfortunate name... by ScrewMaster · · Score: 0, Redundant

      Isn't that how you clean your discs?

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:Unfortunate name... by Hal_Porter · · Score: 1

      It looks like a misspelling of 'dyslexic'.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    3. Re:Unfortunate name... by CyricZ · · Score: 1

      I think you misunderstood what he was saying, Hal. It would seem that he was pointing out how the name "Disclic" sounds far too much like "Dick Lick". You know, when one person suckles on the penis of a man. A sucking of the cock, one might say.

      --
      Cyric Zndovzny at your service.
    4. Re:Unfortunate name... by Hal_Porter · · Score: 1

      Hmm, never noticed.

      I guess nonsense words are a sort of Rorschach test, everyone reacts according to their own obsessions.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    5. Re:Unfortunate name... by CyricZ · · Score: 1

      What exactly does your predilection for the penis have to do with the original poster not referring to dyslexia?

      --
      Cyric Zndovzny at your service.
  4. Perfect World by E+Galois · · Score: 5, Insightful

    In a perfect world, isn't this how it should work anyway?

    What's interesting is M$ is consenting to it???

    1. Re:Perfect World by DigiShaman · · Score: 1

      What's interesting is M$ is consenting to it???

      Microsoft wants to be known as a service provider, not a product seller. You see, products can be resold but services cannot.

      --
      Life is not for the lazy.
    2. Re:Perfect World by ScrewMaster · · Score: 1

      Not really ... it might just be an image thing.

      --
      The higher the technology, the sharper that two-edged sword.
    3. Re:Perfect World by alphastryk · · Score: 1, Insightful

      true...Micro$oft usually goes for the max profit on everything...

    4. Re:Perfect World by PyroMosh · · Score: 1

      As opposed to what?

    5. Re:Perfect World by penix1 · · Score: 1

      Or an alternative...

      If Microsoft is getting any percentage of the deal they have made a sale twice. Anything beats a dead license.

      B.

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    6. Re:Perfect World by ozmanjusri · · Score: 1

      As opposed to what?

      Customer service and satisfaction. The idea is that when a company provides that, the profits are a consequence.

      --
      "I've got more toys than Teruhisa Kitahara."
    7. Re:Perfect World by jambarama · · Score: 2, Interesting

      Everyone is always screaming about 'fair use' rights. They are being taken away, and we are right to kick, scream and shreik the whole way. However another branch of eroded rights are 'unregulated rights.' Fair use is a small area of rights that would otherwise be given to the copyright holder (like copying) but is given to the user under certain circumstances (like personal use).

      In the same way our unregulated rights are being lost. Reselling is an unregulated right. The fact that software companies don't like it, or put in their EULA that resales are illegal, doesn't matter (if companies put in a eula a clause restricting your right to free speech it wouldn't be enforcable either). I have been looking for someone to fight this for a long time, I'm glad someone is finally making this an issue.

    8. Re:Perfect World by I'm+Don+Giovanni · · Score: 1

      "true...Micro$oft usually goes for the max profit on everything..."

      Is that why they sold Xbox at a loss?
      Is that why they decided to give away VS2005 Express RTM for free through Nov 1996 rather than charging $50 as originally planned?
      Is that why WMP10 is free?
      Is that why hotmail is free?
      Etc...

      --
      -- "I never gave these stories much credence." - HAL 9000
    9. Re:Perfect World by unapersson · · Score: 2, Informative

      "Is that why they sold Xbox at a loss?"

      They sold the X-box at a loss as they would have sold very few copies at cost, as a loss leader to make back the money on games.

      "Is that why they decided to give away VS2005 Express RTM for free through Nov 1996 rather than charging $50 as originally planned?"

      Because they like giving freebies to gain market share. Then start charging.

      "Is that why WMP10 is free?"

      Designed to lock people into their media format where they make the money.

      "Is that why hotmail is free?"

      Even for POP access? Are their competitors not free?

    10. Re:Perfect World by QuaZar666 · · Score: 1

      1. the console is just one part, they know that people will buy games and then they wil make up money
      2. VS 2005 Express is rather limited, and if I had to guess they are using it to get people interested in the other versions of Visual Studio.
      3. Due to the fact that WMP10 supports newer codecs/DRM, which will most likely cause online music stores to purchase new licenses in order to use the new codecs and the new DRM
      4. because it was free before it was owned by Microsoft, plus Microsoft hopes to sell more products by giving something away "free"

      no company does something for absolutly free.

    11. Re:Perfect World by Sique · · Score: 2, Interesting

      Microsoft probably had to consent, otherwise they would have lost in court anyway. Microsoft Germany already lost a similar case in german court, where they tried to forbid a computer store (Snogard) to buy used licenses from people who don't need them (installing from a different source for instance) and bundle them with the shop's computer offerings.

      Microsoft lost badly in court, mainly because of the First Sale doctrin (which in Germany is called Erschoepfungsgrundsatz).

      --
      .sig: Sique *sigh*
    12. Re:Perfect World by Syberghost · · Score: 2, Insightful

      Microsoft lost badly in court, mainly because of the First Sale doctrin (which in Germany is called Erschoepfungsgrundsatz).

      Because who could compete with a word like "Erschoepfungsgrundsatz"?

    13. Re:Perfect World by Soruk · · Score: 1

      Absolutely. Flogging an old licence is better than flogging a dead horse.

      --
      -- Soruk
  5. hey, you know by Anonymous Coward · · Score: 5, Insightful

    Car makers have to compete against a huge used market and still survive (well except maybe GM).

    1. Re:hey, you know by returnoftheyeti · · Score: 4, Insightful

      A used car has a depriciation value. A used car has an unknown history, phyisical wear and tear, and could fail to function hours after you have purchased it.

      A software license has no phyisical wear and tear. It dosnt exist as a material object. All it is is a piece of paper that has to be renewed (software assurance), for a cost, in the future. The value of the license is only in how long it is good for. A used software license that is 1 year old at 10% discount is better than a used 3 day old used Lexus at a 50% discount

    2. Re:hey, you know by silverkniveshotmail. · · Score: 1

      A used car, while a better deal in my opinion, is very different from a used license. It's very unlikely that your used license is going to have any hidden defects, because a license doesn't degrade, it's just a right to legally use software.

    3. Re:hey, you know by Cave_Monster · · Score: 2, Informative

      I wouldn't necessarily say that's a good comparison. A used car is not necessarily in as good a condition as when it was brand new. Software on the other hand, whether you got it brand new from a shop or from a one of these resellers doesnt really matter. It's not as if they would be selling it with the disclaimer 'Microsoft Windows 2000, good working order except due to excessive use, Microsoft Paint no longer works and should be replaced' :)

    4. Re:hey, you know by Anonymous Coward · · Score: 0

      yeh but unlike cars, bits don't rot.

      which just shows that tagging price in bits is artificial, be it programs, music or even money. at least money is semi-backed by gold and other stuff in the real world.

    5. Re:hey, you know by vettemph · · Score: 1

      >>> A software license has no phyisical wear and tear

      So go ahead, buy a Win3.1 license at 1993s cost. It's just as good as anything you can get today (from microsoft anyway).

      --
      The government which is strong enough to protect you from everything is strong enough to take everything from you.
    6. Re:hey, you know by nolife · · Score: 3, Insightful

      Software is not depreciated by wear and tear like a car is but it definately loses value by not being cutting edge. Take something like a game. The initial price a console/PC game is roughly $50USD at release, it loses value over time and drops significantly when version 2 comes out. That software reaches a point where those that want that specific software title have already bought it. The only potential buyers now are those that are passing buy and notice the low price. It all eventually ends up in the 3 for $20 bin until the supply is exhausted or a third party company negotiates a deal to package it together with other older titles and "bonus" material with very little technical support (like the EA sports does with their 1-3 year old titles). Oh, Tiger Woods 2004? That might be fun to play and it is only $10.

      There is a big difference though in what I describe above and what this article is about. Above, EA or whoever, can control the sale and price of the older software titles to ensure it does not directly compete with their newer offerings. When they feel comfortable, they repackage, lower the price, and deal. With this article, the original company (MS) is out of the loop. We all know MS does not sell older versions of their software and obviosuly does not think they would benefit because by doing so. In fact, their license stategy is based on preventing further sales and go out of their way to prevent a secondary market.

      Back to your comment specifically though. The linked article does not state what they were actually trying to sell. What if it is W2K or maybe Office 2000? Its market value should be much lower because it is outdated and not cutting edge. I'd even say the same would apply with XP and Office 2K3 but of course they are still selling that mainstream. Maybe they need to fire up the monopoly powers and restrict the license more to prevent loop holes, the method of licensing, or release newer versions of software faster! Maybe they should start a software rental program or make the software web based so you pay every month instead of just for new versions. Oh wait..

      --
      Bad boys rape our young girls but Violet gives willingly.
    7. Re:hey, you know by Chemical · · Score: 1
      "yeh but unlike cars, bits don't rot."

      Sure they do

    8. Re:hey, you know by StikyPad · · Score: 1

      Buying a used car is buying someone else's problem. If you want a real value, buy last year's model when the showrooms are trying desperately to get rid of their old inventory.. late December or so. They'll often give it to you at or below cost, and you have all the peace of mind of a warranty on a brand new car without worrying about the driving or maintanance habits of a previous owner.

      Of course if you don't care at all about the quality of the vehicle, then yeah, a $500 Festiva is definately the way to go. Personally, I've had enough problems with both new and used cars that I'll never buy a used car again.

    9. Re:hey, you know by GoofyBoy · · Score: 1

      A better comparison would be a software license and a car plate license.

      If you want to use the used car example, try the actual software product, which actually does have a useful lifespan (for justification see accounting rules for deprecation of software).

      --
      The surprise isn't how often we make bad choices; the surprise is how seldom they defeat us.
    10. Re:hey, you know by mikefe · · Score: 1

      Personally, I've had enough problems with both new and used cars that I'll never buy a used car again.

      And that is how the auto manufacturers compete with the used market -- shorter lifespan.

      --
      There: Something at a specific location.
      Their: Owned by someone.
      Please make sure your english compiles.
    11. Re:hey, you know by TwentyLeaguesUnderLa · · Score: 1

      Just a comment about econ - money isn't really backed by gold or anything of the sort, at least here in the US.

      The reason money is worth something is because you know that other people will accept that it is worth something and will accept it as payment. It really isn't backed by anything but trust in the system.

    12. Re:hey, you know by Myopic · · Score: 1

      not really. software loses value as it becomes older and the rest of the world moves on to new software. while it is true that software doesn't physically degrade, it does lose value. (would you pay $150 for Windows 95?)

    13. Re:hey, you know by Anonymous Coward · · Score: 0

      Who knows what flaws are in old software that are going unpatched because the software is now unsupported. New software is more likely to get fixed, so there is risk with going with old software. Also, old software doesn't have all the new fangled features.

      On the other hand, MS have to compete against FOSS anyway... so why not sell licenses for their software cheap? The only way they could compete is by dropping the price...

    14. Re:hey, you know by JamesGecko · · Score: 1

      The Windows 9x line is depreciated. It's not exactly all the wear and tear, but the fact that an unprotected machine connected to the net can get zombied in about 10 minutes...

  6. Great idea by Barkley44 · · Score: 4, Insightful

    This is a great idea, if everyone can make some money and in turn people save money form not having to buy full priced ones. Of course the resellers are worried, but there will be a limited supply, eventually companies will have to go back to them. And resellers will have the newest versions, which used licenses typically won't be for.

    --
    KeepTrackOfIt.com - Find the lowest gas prices in your area graphically
  7. I predict . . . by Q-Cat5 · · Score: 3, Interesting

    . . . a revised EULA in the next Fix Pack.

    If, as TFA suggests, this is a loophole in the licensing agreements, a simple change to the already largely ignored EULA should adroitly close it.

    --
    Raoul Mitgong: Unhelpful.
    1. Re:I predict . . . by paedobear · · Score: 1

      This is occuring in the UK. EULAs are NOT valid in the UK.

  8. In other news... by Anonymous Coward · · Score: 0

    Ford and Fiat enraged about this new "Used car" sales that are taking away their revenue!

  9. Used Linux licenses by ratpack91 · · Score: 5, Funny

    I've got a couple of used Linux licenses knocking around if anyone wants one. At $349.50 that's 50% below the retail price! Offers to cheaplinux@mailinator.com

    1. Re:Used Linux licenses by Anonymous Coward · · Score: 1, Informative

      I believe the GP is referring to the $699 charged for "Linux licences" by SCO.

    2. Re:Used Linux licenses by Anonymous Coward · · Score: 0

      You forgot the part about having tea and a smoke or something like that.

    3. Re:Used Linux licenses by cerberusss · · Score: 1
      used Linux licenses [...] At $349.50

      I've never heard the like, and I am stunned. This is clearly going to take away revenue from both GNU and Linux.

      --
      8 of 13 people found this answer helpful. Did you?
    4. Re:Used Linux licenses by Duhavid · · Score: 1

      I've mailed and I've mailed, but you
      wont send me the goods!

      --
      emt 377 emt 4
    5. Re:Used Linux licenses by aqk · · Score: 1

      After putting on my manager's hat:

      Sounds good to me!

      But how much will you charge to install it?

  10. Unlikely to hurt MS by external400kdiskette · · Score: 2, Informative

    It's unlikely one second-hand dealer is going to change Microsofts fortunes whilst it might be beneficial to him it'd be hard to imagine enough 2nd hand licenses being found to come anywhere close to the ammount of new licenses required daily in terms of volume. "This is clearly going to take away revenue from the channel and from Microsoft," Yeah but how much? MS wouldnt've given the green light if they hadn't analyzed the situation and determined that it was very insignificant to them.

    1. Re:Unlikely to hurt MS by Anonymous Coward · · Score: 0
      MS wouldnt've given the green light if they hadn't analyzed the situation and determined that it was very insignificant to them.

      The article is misleading - this business doesn't rely on MS authorizing it. Rather than saying "MS gave the green light" it would probably be more accurate to say "MS lawyers realised that the business is entirely legal and there's nothing they can do about it."

  11. I wonder if... by lxt · · Score: 2, Insightful

    ...Gordon Davies would be so "stunned" if he was a creditor owed money by a liquidated company. This is great news for creditors, because they've got more money in the pot to cover the debts owed.

    And at the same time, people get cheap software. And I don't really think this will be taking business away from Microsoft resellers - the article doesn't mention it, but I assume this second-hand software won't come with any of the additional support bundled with new programmes.

    1. Re:I wonder if... by headpushslap · · Score: 1

      Plus M$ gets to charge twice for goods already sold.

      However, how will they check in the future if a license is a valid used license, or a pirate version, or if a reseller is selling multiple copies of a single license?

  12. Used Licenses for sale in Korea by dxminxs · · Score: 0, Redundant

    Cheap, very cheap. Call today!

  13. First Sale by arrrrg · · Score: 5, Informative

    From the Wikipedia article on first sale:

    District courts in California and Texas have issued decisions applying the doctrine of first sale for bundled computer software in Softman v. Adobe (2001) and Novell, Inc. v. CPU Distrib., Inc. (2000) even if the software contains a EULA prohibiting resale.

    M$ can grumble all they want, but (at least for some of us) reselling Windows is a legal right regardless of the contents of the EULA.

    1. Re:First Sale by Q-Cat5 · · Score: 2, Informative

      So does that mean that Microsoft succeeded in binding the Windows license to the physical machine?

      I know most of the hardware resellers (Dell, HP, etc.) affix the license sticker (pretty much permanently) to the case. When I asked a rep at Dell if I could take a copy of Windows 2000 Pro off of one laptop and install it on another (that had come with ME), I was told this violated the licensing agreement.

      On the other hand, I've heard that it's legal to transfer a retail copy from one machine to another so long as you remove it from the first. Is it "First Sale" or "First Install" we need to worry about here?

      --
      Raoul Mitgong: Unhelpful.
    2. Re:First Sale by zeroduck · · Score: 1

      The OEM version of Windows requires that the sticker be placed on a conspicious surface of the computer. Or so says the packaging.

      Whats interesting, when you buy a PXI controller installed in a PXI chassis from National Instruments, the license sticker is attached to a removable metal plate so that you can move the plate to a different chassis when you move the controller elsewhere. Thats my top priority when working on those systems....

      What I'm wondering is if the "first sale" deal applies to OEM software.

    3. Re:First Sale by Daengbo · · Score: 1

      I think that MS made a cunning move here. By explicitly allowing this for one reseller, they have set themselves up as the approval authority for all sales of used MS software. Once people become used to that, MS can withdraw its approval without any serious complaint from consumers.

    4. Re:First Sale by norton_I · · Score: 3, Interesting

      That would probably only apply to individually licensed software, not those purchsed through volume licensing programs, which is what this is about. It is possible that you could resell or transfer your entire license block, but probably not do so per seat if it was forbidden in the license agreement.

  14. Market Balance by diakka · · Score: 2, Insightful

    I'm glad to see this come about. So maybe this is only OK'd in the UK, but is there anything preventing American companies from purchasing licenses abroad?

    --
    -- Knowledge shared is power lost. -- Aleister Crowley
  15. I'm not so sure. by Anonymous Coward · · Score: 1, Insightful

    Usually you get a discount on used items because the item's value has decreased due to said use. Using a license for software does not degrade the quality or value of that software, so why should there be a discount for a used license? On the other hand, maybe you are taking a risk in that the license might still be in use by another guy (or leaked on the Internet) and the key or whatever will be deactived. I do find it really wierd that Microsoft gave this guy the go-ahead, though.

    1. Re:I'm not so sure. by StikyPad · · Score: 1

      Software degrades in value as well. How much would you pay for Lotus123 or WordPerfect 3.0?

  16. Microsoft patents revenue. by Carnage+Pants · · Score: 1
    "This is clearly going to take away revenue from the channel and from Microsoft."
    All your revenue are belong to Microsoft- apparently.
  17. legallyallowed to sell the licenses at discount by Alien+Being · · Score: 0, Troll

    Gee thanks, Bill, for telling us what we're legally allowed to do with the product we bought from you.

    Take your useless support and shove it. We bought the right to use your rotten code, we bought the right to resell it for whatever we can get. We're Americans you fascist SOB.

    You may be the richest man on Earth, but you're still a lying, cheating, two-faced, fuckwad... And your mother drinks elderberry wine. You have earned the right to be first at the guillotine.

    What I'm trying to say is FUCK YOU.

    1. Re:legallyallowed to sell the licenses at discount by FooAtWFU · · Score: 1
      I just don't understand your anger.


      I mean, what do you have against elderberry wine?

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    2. Re:legallyallowed to sell the licenses at discount by Anonymous Coward · · Score: 0

      You are an asshole, you know that? He isn't interested in self-promoting. He is already the richest man in the world, and what have we seen him do with all that money? Donate several billions to charity, that's what. It's jackasses like you that make this world such an unhappy place, not generous individuals like Mr. Gates.

    3. Re:legallyallowed to sell the licenses at discount by Anonymous Coward · · Score: 0

      Steal a pound, give back a penny.

    4. Re:legallyallowed to sell the licenses at discount by Anonymous Coward · · Score: 0

      Um, if you check the facts, Bill's wallet didn't open up to charity until he took a public flogging for being the wealthiest man in Seattle and never donating a penny. His peers pushed him into charity, but that doesn't mean that he went willingly.

      And yeah, he's donated millions upon millions at this point, but you can bet that it hasn't cost him anything tangible. He's not missing any of the money that he's donated, if you catch my drift.

    5. Re:legallyallowed to sell the licenses at discount by Nom+du+Keyboard · · Score: 1
      Take your useless support and shove it...[snip]

      Why don't you tell us how you really feel?

      --
      "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
    6. Re:legallyallowed to sell the licenses at discount by kingkoopaunion · · Score: 1

      So Bill Gates posts as Anonymous Coward?

    7. Re:legallyallowed to sell the licenses at discount by pintomp3 · · Score: 1

      wow.. did he eat u'r baby or something?

    8. Re:legallyallowed to sell the licenses at discount by Anonymous Coward · · Score: 0

      We're Americans you fascist SOB
      I'm not (you insensitive clod)

    9. Re:legallyallowed to sell the licenses at discount by CarpetShark · · Score: 1
      We're Americans you fascist SOB.
      Err, no, we're not :)
    10. Re:legallyallowed to sell the licenses at discount by Anonymous Coward · · Score: 0
      We're Americans you fascist SOB.


      Technically, this story is about a UK company who is legally allowed to resell licenses. I don't think we, as Americans, can buy them (not 100% sure though).

      Though I do agree with your sentiment - Billy, his army of spindoctors, and the drones who believe everything they put out is "innovative" can go stuff it. Everything MS has ever done has been done before by someone else, and done better, girls.
  18. VLKgen by J3r3miah · · Score: 0

    OMG.. I can use my windows Volume License KeyGen, make 10,000 keys and sell them at $1 each! with $10,000 I'll be a millionaire!! Though I just need to get that fancy burner MS uses to make the shiny art on the CDs.

    --
    God is real unless declared as int
  19. This is just like selling.... by Lars83 · · Score: 1

    ...just like selling used food. Believe me, I've got plenty more where that came from.

    1. Re:This is just like selling.... by HAMgeek · · Score: 1

      Reminds me of a scene near the beginning of the movie, Judge Dredd. The robot rolling down the hallway while folks are shooting at each other says, "Eat recycled food, it's good for the environment and it's OK for you. Eat recycled food."

      --
      "Just because you do not take an interest in politics doesn't mean politics won't take an interest in you." --Pericles
  20. Nothing new by msbsod · · Score: 1

    There are countries where this practice has been perfectly legal, confirmed by courts, for example in Germany. A software license is no different than any other products. Trading used books for example has been done for centuries.
    http://www.informationweek.de/cms/938.0.html?&scfp =8500

  21. Cry me a River by uberdave · · Score: 3, Funny

    Partners of the software giant have expressed unhappiness over the issue as it undercuts their business.

    "I don't like it because our competition is selling the product for less than we are. That will cut into our profits. How do people expect me to keep fuel in my Hummer and my Lear jet in the air? It's not fair!"

    1. Re:Cry me a River by Anonymous Coward · · Score: 0

      That's not how the song goes. At least not the Justin Timberlake version.

  22. This is excellent for Microsoft. by Anonymous Coward · · Score: 0

    This is great for Microsoft.
    It allows people who would have otherwise overlooked one of their products to pick it up cheap. Once their company is using it and begins to develop policy around it, they're now dependant on this product.

    When the new version comes out, it's highly doubtful that there will be exactly the same amount of used licenses lying around and available to them. So they'll have to buy the new version at full price.

    Microsoft's business strategy is most definitely NOT about keeping people from using their products. They WANT people to be using Microsoft anything at any cost. That's why they undercut. That's why they turn a mostly blind eye to piracy.

    Ubiquity is their game.

  23. the real question is why did ms allow it? by petermgreen · · Score: 1

    it doesn't seem very MS like to give up possible licensing revenue.

    i see several possibilities

    1: ms thought this would end up being allowed by uk law whether they liked it or not and decided to do a deal before it wen't to court.

    2: they wanted to hurt existing resellers who were being disloyal

    3: they wanted to provide a kickback to someone.

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    1. Re:the real question is why did ms allow it? by Anonymous Coward · · Score: 0

      You forgot 4) Microsoft wants to cement the fiction that you actually need a licence to run software you have already purchased.

      What next - should I pay a licence fee to Toyota because I already own one of their cars? Should I pay a licence fee to Hoover if I already bought one of their vacuum cleaners? If you buy a chair off me, can I charge you a licence fee to sit in it? And maybe a higher fee if you want to stand on it to change a lightbulb?

      There is a contract when renting an item. There is no contract when outright purchasing an item. If you have to sign a contract limiting your use of an item, you haven't bought it. You're just renting it on someone else's terms.

    2. Re:the real question is why did ms allow it? by petermgreen · · Score: 1

      You forgot 4) Microsoft wants to cement the fiction that you actually need a licence to run software you have already purchased.

      whilst copying your retail software onto your own machine to use it yourself may well not require a license i'm pretty damn sure copying it onto every machine in your company from one source (and who wan'ts to deal with a seperate retail copy for every user?) does.

      This isn't about EULAs its about volume licensing

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  24. large scale of what has existed for years by Lumpy · · Score: 3, Informative

    At hamfests you always could find someone with gobs of copies of just out of date and old MS apps and OS's with the magical license sticker or certificate for dirt. Hell last year at Dayton you could buy unmarked offbrand OEM XP pro licenses for $25.00 each that register just fine.

    This is simply large scale with MS's blessing. Others have been doing it anyways and telling MS to f themselves for years.

    I bought 4 copies to sell with laptops I rebuild/recondition. Microsoft would call me a pirate/evil person but I really dont give a rats ass what they think. They register, validate perfectly and have the magical feel-good sticker with install key. That's all I care about and that is also all the people I sell the laptops to care about.

    --
    Do not look at laser with remaining good eye.
  25. RTFA by everphilski · · Score: 1

    They are reselling these licenses with Microsoft's blessings... they aren't grumbling.

    -everphilski-

    1. Re:RTFA by arrrrg · · Score: 1

      From TFA:

      A loophole in British insolvency laws and a clause within many Microsoft licenses that permits disused or unwanted volume licenses to be transferred enables Disclic to sell the licenses legally. The licenses are offered at a discount of around 20 to 50 percent below prices of any other authorised Microsoft reseller.
      A Microsoft representative confirmed on Thursday in the UK that Disclic's resale of licenses "does meet Microsoft's terms and conditions."


      My point was that regardless of legal loopholes that may exist in British laws and Microsoft's EULA, at least some of us have the right to resell Windows without asking Microsoft's permission. Not to mention the fact that M$ would probably be grumbling if they thought they had a case...

    2. Re:RTFA by everphilski · · Score: 1

      regardless of legal loopholes that may exist in ... Microsoft's EULA

      So if the EULA says you can do it, your point is?

      You don't have to ask permission, even though they already gave it to you? /boggle...

      -everphilski-

    3. Re:RTFA by Kadin2048 · · Score: 1

      No, other way around. Even if the EULA says that you can't resell the software, at least in some jurisdictions in the U.S. you can go ahead and legally do it anyway, because of what's known as the doctrine of "first sale."

      Microsoft would probably grumble about it, but there's not a lot they could do, since the courts have ruled.

      Basically I think the point of the original post was "So, what?" Meaning that this isn't some huge groundbreaking deal -- all that's new is that some company got MS's permission to resell software licenses, with the implication that MS is getting a cut, and people are acting like it's some big blow to the Evil Machine, when in reality people elsewhere could sell used software already, with or without permission.

      That at least was my understanding of the implications of the comment.

      --
      "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  26. A sight of desperation? by Anonymous Coward · · Score: 0

    Could this be an indicator that even MSFT sees the marketshare writing on the wall?

  27. Re:Predatory Pricing? No. by Anonymous Coward · · Score: 0

    To quote from your link at:
    http://www.educationreport.org/depts/ecodevo/artic le.asp?ID=486

    In such cases, some economists distinguish between "bad" and "good" monopolies. A "bad" monopoly is a firm or cartel that restricts output of a particular product in order to raise prices. Consumers are worse off because they must either pay the high price or go without; the firm or cartel is better off because it earns greater profits. A "good" monopoly is a firm that earns its largebut not exclusivemarket share by lowering prices, improving quality, and expanding its output to better satisfy consumer demand. Consumers are better off because they get higher quality products at lower prices, and the firm is better off because its profits are a reward for "building a better mousetrap."

    The evidence supports the "good" monopoly view of Microsoft. Its large market share is due mainly to its improvements in quality, reductions in price, and customer satisfaction: precisely the type of competitive innovation the antitrust warriors should encourage and not prosecute.

    You must be new here. Thanks. That was hilarious!

  28. This is old news by Adelle · · Score: 5, Insightful

    Software has been (legitimately and legally) bought and sold on e-bay for some time now. Does anyone think that a few more Windows 2000 users is bad news for Microsoft or its resellers? It's just another way of increasing the potential market for the next version (not counting those of us that know that newer!=better).

    1. Re:This is old news by Dan_Bercell · · Score: 1
      newer!=better

      Yeh.. Who wants a Windows XP machine when they can have a Windows 95 machine!

    2. Re:This is old news by Scarletdown · · Score: 2, Informative

      newer!=better

      Yeh.. Who wants a Windows XP machine when they can have a Windows 95 machine!


      If the machine still works for what the user needs it for (like creating documents, listening to music, getting online, etc), why throw it out or put on a more bloated OS that's going to slow down your system's performance considerably?

      Greenbox systems are typically more than sufficient for many users. Anything more is just a waste of money and landfill space.

      --
      This space unintentionally left blank.
    3. Re:This is old news by Dan_Bercell · · Score: 1

      Try to browse the INternet with a Windows 95 machine, I think IE 5.0 is the highest that can be installed on it. I dont know about you, but I have many clients that require IE 6 for work related websites.

    4. Re:This is old news by Scarletdown · · Score: 1

      I would never even consider inflicting 95 on anyone. 98SE (or especially 98SE-Lite, which is 98SE with IE removed), Firefox, and OpenOffice is my recommendation, _if_ Windows is a must. Otherwise, I will gladly build them a Debian box.

      --
      This space unintentionally left blank.
  29. non-transferable by vlad_petric · · Score: 1

    IIRC pretty much all standard M$'s EULAs are very specific about non-transferability (well, this is a standard feature in most EULAs, not just M$'s). Does this mean that they acknowledge the non-enforceability of this clause ? (I'm really curious to know, perhaps somebody with IP law background can help me).

    --

    The Raven

  30. Disclic Ltd Website by SilverThorn · · Score: 2, Informative

    Here is the link to the Disclic Ltd website...
    URL: http://www.discount-licensing.com/

    There is also a more in-depth article on the topic here:
    URL: http://www.channelregister.co.uk/2005/11/10/outlaw _software/

    --
    Artificial intelligence is no match for natural stupidity.
  31. Vista vs. XP vs. 2000 by Anonymous Coward · · Score: 2, Insightful

    It is often said that windows' largest competitor is their older OS's. If businesses could resale their Win 2000 licenses, they might be a little more interested in upgrading to Vista.

    Furthermore, these "used" licenses would allow MS to compete with other low cost operating systems. Granted, MS would not make anything of the sale, but since they will be making mad money lute from their future subscription services, they should be able to maintain a profit...maybe

    1. Re:Vista vs. XP vs. 2000 by Pop69 · · Score: 1

      The only problem with this idea is that to upgrade you have to actually own a copy of the prior system.

      My upgrade 2k pro still insists I find my NT4 WS disk and put it in the drive to prove I own it, can't do that if I sell my NT4 disk to someone else can I ?

  32. I donno 'bout that! by thecampbeln · · Score: 1
    ...If you're buying a "used" Win98 license (which is no longer supported, right?), then it is *DEFINITLY* not in "as good of condition" as it was "new" (unpatched vulnerabilities, no new IE for you, etc, etc). You could make the same argument for Win2000, et la if you wanted to push it (not that I'd go quite that far).

    When it gets down to it, couldn't vulnerabilities be analogous to dents and dings (or major engine trouble)? I know my Win2000 server keeps hanging on Microsoft's recent DirectX v9 patch, if that's not the same as a thrown rod, I donno what is (sure, she still runs, but you're only going to get more damage until it gets "repaired")!

    --
    "1984" was ment to be a warning, not a guidebook. You hear that Kim Jong-il!? BushCo?!
    1. Re:I donno 'bout that! by Anonymous Coward · · Score: 0

      Why would anyone ever buy win98 used? that's retarded, your analogy is shit.

    2. Re:I donno 'bout that! by Lehk228 · · Score: 1

      someone who's business depends on a windows 98 only custom application and who just doubled their operation and needs twice as many workstations as before

      --
      Snowden and Manning are heroes.
    3. Re:I donno 'bout that! by Anonymous Coward · · Score: 0

      Find me a windows 98 custom program.

    4. Re:I donno 'bout that! by Lehk228 · · Score: 1

      custom programs aren't out there on the market, they are developed to order by software firms, thus the whole 'custom' thing. they also tend to be fragile as hell and very platform specific

      --
      Snowden and Manning are heroes.
    5. Re:I donno 'bout that! by Anonymous Coward · · Score: 0

      So you don't know of any programs that only work with win98?

    6. Re:I donno 'bout that! by thecampbeln · · Score: 1
      You must be right! That's why big businesses instantly apply patches and buy upgrades as soon as they are made available! Ope, wait... some of us have worked in the real world and know that sometimes, just sometimes your predecessor's predecessor wrote some code under the Document Object Model (or Team Services, or GenericDb, or god know what other shitty technology has been plugged out over the last 10+ years) that simply doesn't play nice under newer versions of the OS because of drivers or who knows what.

      We've got some Document Object Model stuff that runs only on an NT4 box because the newer Oracle drivers required on anything after NT4 simply will not play nice with the DOM shit. So there you go... not Win98 specific, but there's an example of a custom piece of (shitty) business software that won't run on anything but an even more antiquated OS then Win98.

      --
      "1984" was ment to be a warning, not a guidebook. You hear that Kim Jong-il!? BushCo?!
    7. Re:I donno 'bout that! by susano_otter · · Score: 1

      About your sig: Isn't your question equivalent to "ask what you did to your country"?

      Also, while it's not clear from your sig, I strongly suspect that you are confusing "country" and "government".

      --

      Any sufficiently well-organized community is indistinguishable from Government.

    8. Re:I donno 'bout that! by Anonymous Coward · · Score: 0

      NT4 and windows 98 are apples and oranges.

    9. Re:I donno 'bout that! by Baricom · · Score: 1

      If you're buying a "used" Win98 license (which is no longer supported, right?), then it is *DEFINITLY* not in "as good of condition" as it was "new"

      See, the difference between software and cars is that cars start new and accumulate problems; software starts with problems and (theoretically) gets better over time.

      When it gets down to it, couldn't vulnerabilities be analogous to dents and dings (or major engine trouble)?

      Sure, if the car manufacturer sold you the car new with the dents and dings already included, but hidden with surface paint.

    10. Re:I donno 'bout that! by Lehk228 · · Score: 1

      it's lyrics from KMFDM's Dogma so you'll have to ask them about it.

      --
      Snowden and Manning are heroes.
    11. Re:I donno 'bout that! by Lehk228 · · Score: 1

      well anything that requires the use of hardware that only has windows 98 drivers I had an old handheld scanner that was win 98 only, have seen production control devices which need windows 98, microchip (EPIC) programmers which require windows 98.

      --
      Snowden and Manning are heroes.
    12. Re:I donno 'bout that! by Lehk228 · · Score: 1

      here's the complete lyrics my sig is from

      Kmfdm - Dogma Lyrics

      All we want is a headrush
      All we want is to get out of our skin for a while
      We have nothing to lose because we don't have anything
      Anything we want anyway...
      We used to hate people
      Now we just make fun of them
      It's more effective that way
      We don't live
      We just scratch on day to day
      With nothing but matchbooks and
      Sarcasm in our pockets
      And all we are waiting for
      Is for something worth waiting for
      Let's admit america gets the celebrities we deserve
      Let's stop saying "Don't quote me"
      Because if no one quotes you
      You probably haven't said a thing worth saying

      Sex, drugs, god, cash, America

      We need something to kill the pain
      Of all that nothing inside
      We all just want to die a little bit
      We fear that pop-culture
      Is the only culture we're ever going to have
      We want to stop reading magazines
      Stop watching TV
      Stop caring about hollywood
      But we're addicted to the things we hate
      We don't run washington and no one really does
      Ask not what you can do for your country
      Ask what your country did to you

      Sex, drugs, god, cash, America

      The only reason you're still alive is because someone
      Has decided to let you live
      We owe so much money we're not broke we're broken
      We're so poor we can't even pay attention
      So what do you want
      You want to be famous and rich and happy
      But you're terrified you have nothing to offer this world
      Nothing to say and no way to say it
      But you can say it in three languages
      You are more than the sum of what you consume
      Desire is not an occupation
      You are alternately thrilled and desperate
      Skyhigh and f**ked
      Let's stop praying for someone
      To save us and start saving ourselves
      Let's stop this and start over
      Let's go out - Let's keep going

      Sex, drugs, god, cash, America

      This is your life - This is your f**king life
      We need something to kill
      The pain of all that nothing inside
      Quit whining you haven't done
      Anything wrong because frankly
      You haven't done much of anything
      Someone's writing down your mistakes
      Someone's documenting your downfall

      --
      Snowden and Manning are heroes.
    13. Re:I donno 'bout that! by EvilNecro · · Score: 1

      For what it is worth.... My EPIC programmer at work runs very happily under Windows XP SP2. That said, I do agree that there ARE things that require a certain OS.

    14. Re:I donno 'bout that! by Anonymous Coward · · Score: 0

      Don't ask you, ask KMFDM?
      it's YOUR sig.

  33. There's a lucrative market... by Hosiah · · Score: 1

    That's bound to be a boom. Because everybody knows, nothing holds value like an old Microsoft distribution! Yes, I'm sure IT professionals nationwide are dying to get ahold of Windows 95 disks - still loading as good as the day they were sold!

    1. Re:There's a lucrative market... by Anonymous Coward · · Score: 0

      Because everybody knows, nothing holds value like an old Microsoft distribution! Yes, I'm sure IT professionals nationwide are dying to get ahold of Windows 95 disks - still loading as good as the day they were sold!

      Well, windows 2000 still has a large market share in the business world. It's well known, well documented and well understood. My company still hasn't moved to anything newer, and isn't likely to without a very good reason. Purchasing "used" windows 2000 licenses at a low price is something we would look at.

    2. Re:There's a lucrative market... by Scarletdown · · Score: 1

      Because everybody knows, nothing holds value like an old Microsoft distribution! Yes, I'm sure IT professionals nationwide are dying to get ahold of Windows 95 disks


      Windows 95 doesn't seem to be worth much, except perhaps the floppy disk versions). However, old MS OSes that do seem to retain some worthwhile value are 98SE, ME, and even WfW 3.11. Also, versions of Office (from 95 on up) tend to do fairly well on the used market.

      --
      This space unintentionally left blank.
    3. Re:There's a lucrative market... by Hosiah · · Score: 1

      It was supposed to be *funny*. If you need a frame of reference for what funny is, go look in the mirror.

    4. Re:There's a lucrative market... by Scarletdown · · Score: 1

      So I was a little drunk when I posted last night. Still, even a humorous post can hold some useful info.

      --
      This space unintentionally left blank.
  34. Re:Predatory Pricing? No. by Skippy_kangaroo · · Score: 1

    You might want to distinguish between the howls of complaint from any business when foreign manufacturers sell goods cheaper than the business can themselves produce and the real concept of predatory pricing.

    Predatory pricing does exist and is effective in the right circumstances to protect a monopoly and enhance profits. Thinly veiled trade protectionism also exists. Don't confuse the two - even if people sometimes try to talk about trade issues as predatory pricing.

    In particular, predatory pricing can be a very useful tactic for a monopolist in network industries - such as those that Microsoft dominates.

  35. Vendor Lock In... by Daniel+Wood · · Score: 2, Insightful

    This is just a smart tactic to create lockin and ensure future revenue.

  36. Moot point in a few years anyways by davidwr · · Score: 1

    In a few years software will either be rented e.g. a service, or made useless without the "free" support that ONLY goes to the first person to install it.

    You'll still be able to sell your never-installed copy of MS-Windows-2029, but once you've installed it good luck selling it - Microsoft will find a way to not support the 2nd user unless they ante up.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  37. Another supply and demand observation by Weaselmancer · · Score: 1

    "I've never heard the like, and I am stunned," said Gordon Davies, the commercial director of Microsoft reseller Compusys. "This is clearly going to take away revenue from the channel and from Microsoft," he said.

    And there you have another problem when you deal with a monopoly. We know it's bad for software, but it's also bad for business. One entity makes the rules - there is no appeal, and no other supplier if you disagree.

    --
    Weaselmancer
    rediculous.
  38. Explanation of the discount... by sd_diamond · · Score: 1

    The reseller, Disclic, is legally allowed to sell the licenses at a discounted rate of between 20 percent to 50 percent, much lower than Microsoft's resellers.

    That's why they're so cheap. They lick all of the discs before mailing them to you.

  39. Licencing and reselling by Bulmakau · · Score: 4, Interesting

    I totally agree that treselling used licences of MS is OK. It is logical and right. If you buy a licence for a Windows OS, no reason this licence can't be resold under the same terms...
    However, it is important to note that licence is not a simple product like a TV screen or a fruit.
    Here are three reasons:
    1. Lets say a licence was bought discounted as part of a non-profit or educational licence pack (schools, universities, organizations..). Such a licence should not be resold to a business entity or a private user.
    2. A licence bares commitments by the client, more than most products. For example, you are not allowed to share the product freely, or copy it. (maybe not only because of licencing issues but also because of such). In some cases, a licence allows the use of a product only to a specific person, or under specific terms (specific hardware, environment). For example, not allowing the use of a product by non-development personnel. Not allowing the use of a product on a multiple CPU computers, etc...
    3. Partly like #2, licencing sometimes are regional. Some people suggest that if its allowed in the UK for now, it should be open to international trade as well. Well.. not necessarily. For example, some licences are regional. Sometimes for good reason (allowing 3rd world countries the use of software that is very expensive for them if they had to buy it in other countries). OR limits of technology/security export. Sometimes cross-border trading has to be limited. That is true - noone likes to be limited, but sometimes there might be a good reason to accept such limitation

    Can't think of any other differences for now, but those two demonstrate in my opinion why there are some differences with licencing.
    With that said, reselling of a licence under the same obligations/terms as the original purchase is something I think is very right and just and should be implemented world-wide.
    Just my 2 cents.

    --
    "From the moment I could talk, I was ordered to listen" - Cat Stevens
    1. Re:Licencing and reselling by Anonymous Coward · · Score: 0

      "Lets say a licence was bought discounted as part of a non-profit or educational licence pack (schools, universities, organizations..). Such a licence should not be resold to a business entity or a private user."

      Bullshit. It's your property. You bought it. You can sell it to anyone you like.

      "For example, not allowing the use of a product by non-development personnel. Not allowing the use of a product on a multiple CPU computers, etc..."

      Also not your responsibility - what the other guy does with the software, the other guy does. You've washed your hands the moment you took his money.

      "OR limits of technology/security export. Sometimes cross-border trading has to be limited."

      HAHAHA - what world do you live in???? Certainly not the one where you can order whatever you like from anywhere over the internet. Or fly to France, or Hawaii, or Zimbabwe and buy whatever software you like and bring it back with you. You think the guards at the airport are going to stop you on the way back into your 'technology prohibited country' and ask you what version of windowz that is you're trying to bring into this country.

      Grow up, boy.

  40. It's Simple: DMCA, Property, and Microsoft by Zancarius · · Score: 1

    All your revenue are belong to Microsoft- apparently.

    Actually, as bizarre as this might sound, I think Microsoft's reasoning behind this has to do with their position regarding Intellectual Property. They don't really stand to lose anything backing a company that is selling licenses to something intangible as if it were tangible, material property. Microsoft--and most big companies concerned about IP rights--knows full well that by throwing their weight behind something that can push intangible goods closer to the boundary of "real" property, society and, eventually, the courts will side with them.

    While this seems like a Good Thing (tm), I am suspicious of the software giant's motives. Microsoft certainly stands to gain a lot by having your average Joe User think of software as something synonymous with real property. Ultimately, I think that this move could have potential ramifications for software-as-speech. We all know that Microsoft really wants software to be treated like any other tangible property, and certainly something as trivial as a license seems insignificant--it might even seem like the right thing to do. A license is property, after all, but the idea is a bit bigger than that. Perhaps I'm a cynic, but it seems odd to me that Microsoft would support something like this--unless they see a strong legal benefit in the near future, particularly by set precedence...

    --
    He who has no .plan has small finger. ~ Confucius on UNIX
  41. Re:Predatory Pricing? No. by bhirsch · · Score: 0, Flamebait

    Apparently you've been here for a long enough time to forget how many people out there would choose Windows over OS X, GNOME, KDE, Black Box, Enlightenment, etc.

    Microsoft's products seem to be better quality (I can't remember the last time XP crashed on me), it is certainly cheaper than it used to be (I can remember shelling out more for MS-DOS than Windows XP Home can be bought for), and most people are perfectly happy to use it.

  42. Very specific situation. by pavon · · Score: 4, Insightful

    That story is cool, but it does not apply to all cases of predatory pricing. It only worked because the cartel was charging different prices in different countries. In this age, the only situations where that happens it is backed by law preventing someone like Dow from doing what he did.

    When a large company prices below the market value (be it in the world market or a walled off local market), and they have deep enough pockets to take a small loss, then there is nothing that the small companies can do about it. They can't buy up the product and resell it, as it will still be more expensive than the original. Predatory pricing does exist, and a single anicdote does not dispel that fact.

    1. Re:Very specific situation. by blitz487 · · Score: 1

      I'll bite. Name one case history of predatory pricing where prices were dropped by a giant company below cost, the small competitors were all run out of business, and the giant then raised prices higher than before.

      I bet you can't.

    2. Re:Very specific situation. by diakka · · Score: 1

      Standard Oil.

      Microsoft & Netscape, although IE was technically free, but since it was tied to windows and didn't run on any other platform, the true cost is difficult to determine. But the consuemr paid for it and still does.

      Recently Samsung in Korea was accused of selling memory below cost, which is apparently illegal under Korean anti-trust law. This is not a particularly good example though because they government may have thwarted the plan.

      --
      -- Knowledge shared is power lost. -- Aleister Crowley
    3. Re:Very specific situation. by Anonymous Coward · · Score: 1, Insightful

      Name one case history of predatory pricing where prices were dropped by a giant company below cost, the small competitors were all run out of business, and the giant then raised prices higher than before.

      Supermarket chains do it all the time here in Australia. They open a new store, with very cheap prices - often 10% or more below Recommended Retail Price. They then wait for the existing independent stores to go out of business (which takes a year or two), then raise the prices to the normal level (or sometimes higher).

      A similar thing has occurred with petrol (gas) prices. The supermarkets (Coles/Myer and Woolworths/Safeway) have opened or bought a lot of petrol stations, selling petrol significantly cheaper than the competitors if you present a receipt from their supermarket when purchasing. Independent petrol stations are going out of business everywhere as a result, and when they do, the price mysteriously rises at the supermarket-owned petrol stations.

      These are just two examples from the supermarket industry in Australia. I'm sure thousands more exist in other countries and other industries.

    4. Re:Very specific situation. by blitz487 · · Score: 1

      Nope.

      1) Standard Oil never raised prices above what they were before they started.
      2) Standard Oil dropped kerosene prices 70%, and they stayed down.
      3) During the time of the big anti-trust action against S.O., S.O. was rapidly losing market share to competitors.
      4) Standard Oil did not sell below cost.

      Most of the conventional wisdom about Standard Oil is not supported by the facts.

      IE is still free, so that example is not.

    5. Re:Very specific situation. by blitz487 · · Score: 1

      Your supermarket chain example is not specific. I asked for a case history, not hand waving. Furthermore, none of your handwaving examples are of selling below cost - just that they are below the competitors' prices.

    6. Re:Very specific situation. by Anonymous Coward · · Score: 0

      It is as case specific as I could get without doing some serious Googling. Both Coles/Myer and Woolworths/Safeway, the two major chains in Australia do this. I even named them in the comment above.

      I know it happens, because I have seen it happen to my mother's (former) employer. If I could be bothered, I would look up on the ACCC website for specific cases of investigations... but to be honest it's Friday night and I have better things to do.

    7. Re:Very specific situation. by Anonymous Coward · · Score: 0
      OK, I gave in and had a quick Google.

      The Baird Report by the Australian Government into the retail sector found that large supermarket chains were putting independent supermarkets out of business, via underhanded tactics, including predatory pricing:

      "A significant body of evidence alleged instances of predatory pricing, where it was said that the major chains were prepared to lose money indefinitely in certain stores to wipe out the competition. The evidence was consistent and widespread...
      The Committee believes that the evidence clearly reveals a need to address the issue of predatory pricing, with a recommendation that the ACCC be given wider powers to bring representative actions, and to seek damages on behalf of third parties under Part IV of the Trade Practices Act."


      Unfortunately, the Government did not act strongly enough on the recommendations of the Baird Report, and the supermarket sector is far more concentrated now than when it was published six years ago. There are now two major chains, rather than three, and independent supermarkets hold a much lower share of the market.

      So, predatory pricing certainly does exist in Australia's supermarket industry, and the Baird Report should give you more than enough information to follow up on specific cases.

      The ACCC is still investigating the supermarket-owned petrol stations, and has come out with some contradictory comments, but the newspapers and current affairs programmes have been full of reports of higher prices (e.g. this transcript). I can't find a decisive statement on the ACCC site about this, but here is the Service Station Association of Australia's take on it.

      A search on the ACCC website for "predatory pricing" finds many more cases of companies being found guilty of predatory pricing.
    8. Re:Very specific situation. by sycodon · · Score: 1

      So you are talking about something like...say...a software company that has a monopoly in the OS market, creating and giving away a web browser?

      --
      When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    9. Re:Very specific situation. by Soruk · · Score: 1

      IE is not free, it's part of the operating system. You paid for the OS, it comes as part of that.

      --
      -- Soruk
    10. Re:Very specific situation. by blitz487 · · Score: 1

      What's missing from your account is the 3rd part of the example, that prices afterwards remained at a sustained higher level than before.

    11. Re:Very specific situation. by blitz487 · · Score: 1
      Your own Baird Report reference says:
      Despite the growth of the major chains, consumers appear to be benefitting from the competitive forces of the current market structure. The evidence revealed that, since 1986, prices have fallen on average for baskets of foods and individual foods at supermarkets. Although there are some exceptions, the Committee accepts that economies of scale and scope have driven prices down in major supermarkets across Australia.
      Therefore, it is certainly not an example of: 1) Selling below cost 2) Driving competitors out of business 3) Then implementing a sustained higher price level than before (1). All that's happening here is a normal process of small scale inefficiency being replace by large scale efficiency.
    12. Re:Very specific situation. by diakka · · Score: 1
      With standard oil, I know they would lower prices temporarily to drive local competitors out of business and then subsequently raise them again. But perhaps they didn't raise them above the original price... however when you are the only supplier, you can maintain the price, where when there is healthy competition, prices will come down. So although this may not be a pure counter example, since prices stayed the same, one could argue they were kept artificially high. It's also impossible to know what would have happened had the antitrustlaws never been passed. Certainly if you're in a bar fight, and you're beating up on a few scrawny guys, it might be to your advantage to let them hit you a few times so that their 7ft buddy (the government) is less likely to jump in.

      IE is NOT free. It never has been. I don't own a copy of Windows, where's my free IE? Even if i want to run it under Wine, that would violate the EULA. Just because something is tied to another product, does not make it free. IE is no more free than wordpad, hyperterm, the windows kernel or any other program they include 'free' with windows.

      From the I.E. 5.01 EULA

      IF YOU DO NOT HAVE A VALID EULA FOR ANY "OS PRODUCT" (MICROSOFT WINDOWS 95, MICROSOFT WINDOWS 98, MICROSOFT WINDOWS NT WORKSTATION VERSION 4.0, AND/OR MICROSOFT WINDOWS NT SERVER VERSION 4.0), YOU ARE NOT AUTHORIZED TO INSTALL, COPY OR OTHERWISE USE THE OS COMPONENTS AND YOU HAVE NO RIGHTS UNDER THIS SUPPLEMENTAL EULA.


      If you paid for a windows license, you can guarantee that some portion of that money went to pay for the development of IE. When you tie the products together, it simply obfuscates the true market price of the individual components.

      --
      -- Knowledge shared is power lost. -- Aleister Crowley
    13. Re:Very specific situation. by Anonymous Coward · · Score: 0
      What don't you understand?

      Putting smaller retailers out of business by selling below a sustainable rate is predatory pricing. It does not matter what the prices are like afterwards, there is the potential for them to rise.

      The ACCC defines predatory pricing as:

      Predatory pricing is unlawful under s. 46(1) of the Trade Practices Act, which prohibits businesses that have substantial market power from taking advantage of that power to eliminate or substantially damage a competitor, prevent the entry of a person into a market, or deter or prevent a person from engaging in competitive conduct in a market.


      You have created your own definition of predatory pricing, and slam everyone's examples for not meeting it.

      I'll redefine predatory pricing as "a turnip".

      Here is an example of predatory pricing.
    14. Re:Very specific situation. by Anonymous Coward · · Score: 0

      Why then does this report state that there have been cases of predatory pricing? It's not like the Government to make claims like that without any factual basis.

    15. Re:Very specific situation. by Anonymous Coward · · Score: 0

      Having read the Baird report, I can say that it is certainly an example of:
      * Selling below a sustainable cost
      * Driving competitors out of business

      This decreases competition, and common economic wisdom is that less competition leads to higher prices.

      In the short term, prices go down, but once a total monopoly or oligopoly is established (and there is no doubt that this is where things are headed) prices will go up, as the supermarkets will be able to charge what they like.

      So, there are one of two viewpoints you can take:
      1. That will lead to reduced competition, causing price increases and market distortions.
      2. That a monopoly that controls the entire supply chain is actually good for the consumer, and we can trust them to keep prices low.

      I take the first view. It appears you take the second.

  43. Poor Davies by shoolz · · Score: 2, Interesting

    He's "stunned"

    Well, according to Microsoft, it's within the parameters of the license agreement and MS has OK'ed the selling. So Davies is just pissed off because somebody can undercut him. Booo hoo.

  44. I'm stunned by s-twig · · Score: 0

    What??? You mean the guy in Kazakhstan selling me licenses of MS products on eBay isn't endorsed by Microsoft.

  45. Losing money they already made? by Anonymous Coward · · Score: 0

    Those partners aready got paid for that copy. Since that used one is being sold and no copies are on the market, no new revenue belongs to the partners. Deal with it. The books balance.

    1. Re:Losing money they already made? by Scarletdown · · Score: 1

      Those partners aready got paid for that copy. Since that used one is being sold and no copies are on the market, no new revenue belongs to the partners. Deal with it. The books balance.


      Yep. That's really not much different than buying used music and movies. You don't see the RIAA and MPAA affiliates demanding a cut of each sale of their CDs, LPs, Cassettes, 8-Tracks, DVDs, laser discs, CEDs, and video tapes that get sold at pawn shops or thrift stores, do you?
      --
      This space unintentionally left blank.
  46. Compusys? by Anonymous Coward · · Score: 0

    Compusys? Compusies? There's a porn joke in there somewhere.

  47. Nah.. not for me by schon · · Score: 4, Funny

    Man, I'd never buy a used MP3 - you never know what you're gonna get. If the previous owner(s) didn't take care of it, it might be all scratched.

    Unless it was a rare classic, then I might buy it.

    1. Re:Nah.. not for me by Anonymous Coward · · Score: 0

      "I have reason to believe this MP3 is stolen. It played the intro and then screeched at me for 2 minutes. I want my money back."

  48. reality by PacketScan · · Score: 2, Informative

    Quote:
    "I've never heard the like, and I am stunned," said Gordon Davies, the commercial director of Microsoft reseller Compusys. "This is clearly going to take away revenue from the channel and from Microsoft," he said."
    Ok I see this taking money from the reselling partners..
    However Microsoft will be seeing $$$ signs.. Why well those extra licenses will end up on computers that likely have no more support. Therefore Microsoft stands to make a Significant amount of money at 200-250 per occurrence.
    If I was a reseller I'd want a share of those profits. (Pun on Riaa)

  49. Like new. Slight urine smell. by Anonymous Coward · · Score: 0

    sorry, i know it's licenses and not mattresses (but imagine!)

  50. I Call FUD by stickytar · · Score: 1

    OK, this may be flamebait, but here goes. What's up with this page?? Does anyone else notice that the headers are the same color as the comments in Firefox? WTF? Also this so called Disclic company? Where Who? I'm from the generation that knows if Google can't find it... it doesn't exist.... :)

    --
    believing the big bang requires a certain amount of supernatural faith
    1. Re:I Call FUD by Anonymous Coward · · Score: 0

      Um, the headers are a different colour to the comments (I'm running Firefox).

      Try adjusting your monitor settings. I think your brightness is too low. :)

  51. Can I purchase these licenses...? by Anonymous Coward · · Score: 1, Funny
    ...in rolls of quilted-soft perforated sheets?

    It'd give a whole new meaning to the term "download manager."

  52. I know there's a bigger picture, but still..... by Mistshadow2k4 · · Score: 1

    This is clearly going to take away revenue from the channel and from Microsoft

    I feel the same way about that statement that I would when a multi-millionaire complains about losing $10000. Yeah, yeah, this might affect others, but he needs to be more specific or the response is likely to be "pffft, why should I care? They're fantastically rich anyway!"

    --
    I dream of a better world... one in which chickens can cross roads without their motives being questioned.
  53. Wah! by Dwonis · · Score: 1
    'Wah! Bankruptcy auctions undercut my business!'

    WTF? Who cares?

  54. Used software, novel idea by caller9 · · Score: 1

    Hasn't this been done before? It's usually the resell of a PC/Server complete with restore disks(hopefully already applied). That would include OS and bundled software right?

    You've still bought an outmoded system. Where does this go without server or workstation hardware. Last I heard it's fairly difficult to get any kind of decent new hardware without bundled OEM licenses from guess who? MS. So if this transaction didn't include hardware, how is this cool?

    Hey guys I've just obtained 20 NT4 server licenses with 300 CALs! Lets fire up our new dual processor/ 4Gig RAM/ 5 blade dual processor 2TB fiber channel storage server with $70,000 worth of VMWare and get down to business. bah!

    Buying outdated server hardware and software is a fools game.

    This could indicate however, the upcoming buyer's market for software?

  55. ...can they (as in are they able to) do that? by quest(answer)ion · · Score: 1

    but would that additional support include user support, or stuff like live updates, free upgrades, and so on? because not including an upgrade service or security patches would be a significant disadvantage for some kinds of software--and a major disincentive to buy it secondhand--but retail versions of large suites like Windows or Officious don't really come with discounts on major version upgrades anyway.

    in order to make retail licenses significantly more appealing than secondhand, a developer'd have to up the services they provide with the original licenses, nerf the secondhand-license services, and on top of all that, somehow keep track of which is which. ...a bit prohibitive if you ask me.

    but this is slashdot, so to hell with retail software anyway. VIVA LA OPEN SOURCE REVOLUCION!

    --
    /. is what happens when geeks talk. get used to it.
  56. What about licensing by TheRecklessWanderer · · Score: 1

    Doesn't this mean that we are allowed to sell our old licenses? If you upgrade a bunch of machines to XP from Windows 2000, and you buy full licences of XP, wouldn't you be allowed to sell the windows 2000 copies? Are they going to be using the license on the same machine? Surely this means that I can transfer my Windows XP Pro to the new machine if my old machine is no longer going to have an OS on it? Is this going to work in the US as well? What about Canada? Does it set a precedent I wonder?

    --
    Mean what you say...say what you mean.
    1. Re:What about licensing by Adelle · · Score: 1

      I don't recall seeing anything in TFA that says this applies to reselling OEM licenses without also transferring the hardware with which the software was bundled.

      TFA is about volume licenses, and although I've never owned one, all the single-user retail MS EULAs that I have read have been quite explicit about allowing transfer of ownership (provided certain conditions are met, such as transferring all manuals, COAs, etc, at same time as transferring media).

      Microsoft aren't crying about this. It's not a loophole. They spell out in the EULA that you can do this.

  57. Re:Predatory Pricing? No. by penix1 · · Score: 1

    "...and most people are perfectly happy to use it."

    And most people are morons that get it preinstalled and know no better. That is because Microsoft is a monopoly. And just like the crack dealer on the corner, they know that once you get them hooked they hardly ever get free!

    B.

    --
    This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
  58. Re:Predatory Pricing? No. by jx100 · · Score: 1

    Uh.. The main reasons people pick Windows over alternatives mainly has to do either with the fact that Windows is normally preinstalled and most don't have the knowledge to install something else, or compatibility with programs. Neither of those have *anything* to do with the quality of Windows.

  59. IANAE by Frankus · · Score: 1

    I am not an economist, but doesn't a secondary market for a product (i.e. being able to sell your car used) have a positive impact on first-time sales?

    1. Re:IANAE by WhiteWolf666 · · Score: 1

      Yes, and No.

      It depends on the product.

      Given that your car retains some liquidity after you purchase it, you can justify spending more money on it. Its a poor investment, sure. But a car is worth something.

      Windows License? I cannot imagine anyone really considers the resale value of a Windows license in the cost. People would seriously have to rethink the way they purchase software.

      On the negative side, a secondary market for your product means you have to compete against yourself, which Microsoft, as a monopoly, most definitely doesn't want to do.

      Nothing would make Microsoft happier than if Windows licenses evaporated every 3 years. When you have monopoly profits, and market dominance, the only way to make money is to keep selling new versions of your product. You don't really care what price the market is willing to bear; you've already managed to take sole control of the 'supply' side of the curve, and as such, can charge prices constrained only by substitution costs.

      As long as it would cost you hundreds, possibly thousands of dollars to switch to an alternative, consumers will choose Microsoft, because they are forced to.

      That's why you see large corporate discounts, and educational discounts; those are the sectors more capable of switching to an alternative at significantly lower per-user costs. At the same time, EDU and COM (as in big education and big business) can't really function at a hobbyist level, scrounging older Windows licenses as they come. What happens when you need more 98SE licenses, and your supplier is just plain out? Who's going to manage this hodge podge of individual licenses?

      No one; MS site-wide licensing is cheaper, and that _expires_.

      Additionally, the software itself 'dies' after a little while. Without updates, which stop after a few years, your software becomes useless in a corporate setting. Sure, you _think_ you can keep your users safe, but it never works out like that.

      Remember when CNN's networks went down a few months ago? That was unpatched Windows.

      In a monopoly climate, all a secondary market can do is hurt monopoly profits. I bet MS is _fuming_ over this.

      --
      WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
    2. Re:IANAE by tqft · · Score: 1

      IANAE either, however I work in markets, and this has been studied. Sorry no refs to hand.

      A liquid (ie active buying and selling) secondary market encourages primary sale in that it allows you to manage risk by being able to get in or out of a position.

      So the initial purchase risk is lower becuase you can get of it - not totally.

      Witness books - do you know any college students who plan to sell their used texbooks? ask them if they would have bought them if they knew the couldn't sell them back.

      --
      The Singularity is closer than you think
      Quant
    3. Re:IANAE by sir99 · · Score: 1
      Witness books - do you know any college students who plan to sell their used texbooks? ask them if they would have bought them if they knew the couldn't sell them back.

      My guess would be yes. College students are lucky to recoup a third of their costs by selling back books, at least to the on-campus repurchasers. Often the repurchasers will only take the first so many copies of a given book, and those at a steep discount. And if it's not being used next semester or there's a new edition coming out, fuggitaboutit. So no, students don't "know" that they won't be able to sell a given book back, but they know it's quite possible, perhaps even likely. Students know they might get screwed, but they buy books anyway.
      --
      The ocean parts and the meteors come down
      Laid out in amber, baby.
  60. My Windows 95 machine is doing just fine. by Adelle · · Score: 1

    Windows 95 is no longer sufficiently popular to attract the virus writers.

    1. Re:My Windows 95 machine is doing just fine. by Anonymous Coward · · Score: 0

      Well, just because most new viruses require .Net.

  61. Re:Predatory Pricing? No. by bhirsch · · Score: 1

    Alright... So Windows is crack and Windows users are just stupid crackheads?

  62. Not as straightforward as mere loss of revenue? by lcllam · · Score: 1
    Other scenarios that may arise:
    • buyer gets duped into buying older, unsupported Windoze that M$ no longer supports.
    • Previously 'safer from viruses' older versions of Windoze that are under the radar due to obsolescence become more and more popular due to cheap second-hand prices, triggering a flood of new viruses targeting these older versions.
    • Buyer buys CD only to realize M$ licensing key server has blacklisted the disc, since it was used for creating a pirate disc master in China.

    There are probably others.

  63. interesting move by routerguy666 · · Score: 1

    Companies don't just walk away from revenue.

    If licensing revenue is no longer such a priority for MS be assured another source of revenue will be replacing it. I would guess MS will be dropping licenses completely in favor of subscription access to hosted applications.

  64. Well, I predict . . .this to be one of M$ downfall by usurper_ii · · Score: 1

    As someone who just recently tried to figure out the license mess of using Remote Desktop on Win 2003, I think the expensive license mess is going to be one of the things that makes MS look like crap and Linux come out smelling like roses.

    I figure a) the biggest majority of people are in violation on their licenses for the use of software through Remote Desktop, or b) they want to stay legal but then find out how expensive everything is and don't do it at all.

    At some point, you start thinking if Linux had similar terminal services and the apps that business people needed, oh for the love of God how much easier it would be to not have to worry about the 14 different types of licenses you need ON TOP OF the 5 CALs that you thought were all you needed when you started looking at $600.00 - $800.00 copy of Win 2003 Server with 5 CALs.

    Do you know, if you bypass terminal services/citrix all together and use WinConnect Server XP (remote desktop for WinXP Pro), that if you had five WinConnect CALs, you are legally required by Microsoft to have a licenses for each person accessing XP remotely...plus the licenses for the software the people use.

    Way back in the day, I ran a Wildcat BBS. Can you imagine what would have happened to the BBS scene if MS thought they could make BBSs have a DOS license for each person accessing a computer remotely? People would have thought they were freaking nuts.

    Anyway, if there was good accounting software for Linux and good terminal services to use it remotely, it would kill MS in the small business market.

    Usurper_ii.

  65. Another scenario: revenue from future upgrades? by joelsanda · · Score: 1

    I used to buy used copies of software so I could send in the manual cover or an install disc and get the upgrade price. Though that's probably not a much offered route anymore, consider how this can mean potential upgrade business down the road. If a company buys six licenses of an older version of SQL or even Windows, especially a small organization, they could potentially upgrade to the 'full' version for 1/2 the price of the new software. I'm not sure what the pricing works out to, but this could be a very smart move on MS's part to generate upgrade customers who would otherwise not own the product in the first place.

    --
    The Luddites were ahead of their time.
  66. No way! by grumpyman · · Score: 1

    For already such great price you can buy genuine high quality Microsoft software, I refuse and protest MS allowing to sell 2nd hand!!! Gees, I'd rather pay 20% MORE to stop them doing this!!!

  67. Will Kill Mom and Pop not Michael Dell. by twitter · · Score: 1, Troll
    "I don't like it because our competition is selling the product for less than we are. That will cut into our profits. How do people expect me to keep fuel in my Hummer and my Lear jet in the air? It's not fair!"

    I don't think you understand how the Microsoft Channel Provider system works. The largest part of that channel and collectively the largest retailer of Microsoft software is the humble mom and pop store. The big sellers get huge discounts while the small shops pay something very close to retail and manage to sell $400 software packages. The times are changing, it seems and Microsoft is slapping them in the face.

    Historically, Microsoft pushed their software through the likes of Dell but supported it through a network of local shops. There is no real way for the "majors" to service all of the stuff they sell outside of contracting local firms to send to large businesses. Dell has no physical presence and people like Gateway who tried that lived to regret it. Places like ComUSA are a joke. Fixing M$ bugs and "making it work" in the real world has and still falls on everyone else. The dirty work of saving data files, wiping and reloading windoze has always gone to family members or local shops. It is there, at the local shop that people pay $99 for the retail version of Windoze because they lost or never had their "original" CD and don't want to buy a new computer.

    Shaking up the channel network is the biggest change M$ has made to it's business model since dumping VB. I imagine they realize they won't be able to sell $400 packages which contain little more than a productivity suite and email client with a spell checker. They might also realize that computers are so cheap, people will just buy new ones (Good for me but not Earth friendly!) The local mom and pop store already makes next to nothing by selling the software and most of it on servicing it. This, however, will make them look like fools or thieves. Worse, it will legitimize those horrible spammers who sell pirated Windoze and further disintegrate what's left of the chain of trust that starts at Redmond and ends at the local store. It's a kick in the teeth to people who have already been treated poorly.

    Microsoft is really a company whose business model ran out of steam and is flailing for a new one. Outside of the DRM lockdown nightmare world of "Trusted Computing" they have none. Free software now does everything M$ can and more better than M$. Good bye and good riddance.

    --

    Friends don't help friends install M$ junk.

  68. here ya go by Anonymous Coward · · Score: 2, Insightful

    ***mart in small town areas. Happens a lot and is quite researchable. They come in with a new store and it is tremendously cheaper than all the local mom and pops. After these stores have been driven into bankruptcy, ***mart puts their prices back up to their normal range. I have an aquaintance was in the home appliance business for 30 years that this happened to. His wholesalers, who also supply ***mart, would not sell him one single unit cheaper than what the new ***mart had them for retail. In fact, they were trying to charge him a wholesale dealer price of around ten to fifteen dollars more a unit. This happened exactly as the new store opened, their prices super low, he all of a sudden can't get normal wholesale prices or even any parity. Fairly coincidental timing. Granted, his inventory was small, but taken as a national collective, all the little independents added up had a hefty share at one time, tens of thousands have now been driven out of business. It takes them a year or two to destroy local stores, then they up the prices, business by business. You can search for the ***mart effect and how they manipulate prices locally, the info is out there, it is (apparently) standard operating practice with them across the country.

    Anyway, if you are looking for other examples, the term is dumping, easy enough to find other examples.

        One of the more interesting angles now, not dumping per se but close, a variation, is with counterfeit goods. Very hard to compete when your competitor has no need for R & D or market research or anything like that. In the news this week, the korean electronic manufacturers have completely given up trying to stop their wares being produced illegally in china, they realise the global fix is in. It is no wonder ***mart is such great biz partners with them, birds of a feather....

    1. Re:here ya go by blitz487 · · Score: 1

      If it's so searchable, why don't you have a specific case history to post? That's why I asked. It seems everyone has heard vague, non-specific stories about this, but they always vanish like a mirage upon closer examination. Also, I didn't ask for a specific case about *dumping*. I asked for a case where dumping enabled a company to gain a monopoly in a specific market, and used that monopoly position to create a sustained price increase over what it was prior to the dumping.

    2. Re:here ya go by Anonymous Coward · · Score: 0

      Are you a dummy? Read the history of Standard Oil - one of the examples given. A lot of current anti-trust laws came about because of them.

      Now fuckhead - go do some research on Standard Oil and stop living in lala land. ***mart may the "Standard Oil" of retail.

      Trying to pretend predatorary pricing and arm twisting did / does / will not happen just exposes you ignorance. Thats why we have anti-trust laws. These laws did not come about in a vacuum ..... fuck face.

    3. Re:here ya go by sco08y · · Score: 1

      Trying to pretend predatorary pricing and arm twisting did / does / will not happen just exposes you ignorance. Thats why we have anti-trust laws. These laws did not come about in a vacuum ..... fuck face.

      I love it when people try to be tough and at the same time they're whining, "but Wal*Mart is unfaaaaaiiiiirrrrrrrrr!"

      Grow a pair.

      We have anti-trust laws because there are lots of lemmings who don't understand basic economics and will believe things without evidence.

    4. Re:here ya go by blitz487 · · Score: 1

      Yes, I have read the history of Standard Oil (see "Titan" by Ron Chernow, which I have a copy of). The truth is not what the conventional wisdom of it is. You're welcome to read it for yourself. While you're at it, please point to me in that book of an example of the situation described. Or a specific example in any reputable history of Standard Oil, if you prefer. Please also do that for ***mart, whatever company that is.

  69. Don't mind me, just feeding the Trolls... by thecampbeln · · Score: 1

    More like grapes and tomatoes, but what do I know? I just proved you wrong and you choose to focus on nonsense. Win98 = Antiquated OS. NT4 = Antiquated OS. How bout you burn some karma AC and show your face.

    --
    "1984" was ment to be a warning, not a guidebook. You hear that Kim Jong-il!? BushCo?!
  70. Oh no! This is gonna make..... by 8127972 · · Score: 1

    ..... Ballmer throw a chair across the room. After all, much of the revenue stream of M$ is based their ability to sell new and renewal licenses. I wonder how long it will take M$ to try and kill this idea off?

    --
    This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
    1. Re:Oh no! This is gonna make..... by Anonymous Coward · · Score: 0

      After Ballmer OKed it, why would he throw a chair?

  71. Well hey by Grey+Ninja · · Score: 4, Interesting

    I have a new laptop I bought recently that included a bundled Windows XP Home. It's a dedicated Linux box now, and I honestly have no use for Windows on the machine. Maybe sometime in the near future, I can resell the license and get my money back for something I never used?

    1. Re:Well hey by Myopic · · Score: 1

      yes. you didn't know that?

  72. Hmm by Anonymous Coward · · Score: 0

    I plan on buying a new computer pretty soon.
    Does this mean after I install Linux, I can sell the Windows shit^H^H^H^Humm^H^H^Hsh*t and recoup about 1/5 of the price of the computer?

    1. Re:Hmm by Scarletdown · · Score: 1

      I plan on buying a new computer pretty soon.
      Does this mean after I install Linux, I can sell the Windows shit^H^H^H^Humm^H^H^Hsh*t and recoup about 1/5 of the price of the computer?


      Well, I'm no lawyer (and I don't play one on TV either), but I figure that if the vendor won't give you a discount on the computer for the fair market value of the software that you don't want, or give you a refund for the software after you purchase the system, then (and pardon my gratuitous use of the "fuck" word here"...) fuck the bastards! Go ahead and part out the software bundle, including the OS that you don't need. After all, they got their money for it. What reason would they have to bitch about you selling off the stuff that's useless to you? Just do it. It's not like they're going to come after you or anything like that. They have bigger fish to fry, I'm sure. Make your refund happen, and to hell with what the vendor or Microsoft might have to say about it. You never accepted the EULA, so you are not bound by its terms.

      --
      This space unintentionally left blank.
    2. Re:Hmm by heybo · · Score: 1
      If you read the other posters they are right. If it is an OEM version which most of the time it is. The OS is tied to the machine not to the CD. Moving the OS to another platform is against the OEM license. Others words you have a $50.00 coaster for your drink. Think about this too. Your laptop when MS does their counting of machines running their OS will count yours because you bought a licenses with the machine even if you never ran it with Windows on it. Personally I don't want to count as a sell for them.

      A few months back I bought a laptop. When I was looking around I called all the big boys and they all said we don't do Linux. Even IBM doesn't sell Linux on laptops (shame shame IBM). HP would but at a higher price and talked for 30 mins. trying to get me to use Windows. I did this with the intent of being able to tell them "Well you just lost a sale because you don't support Linux." So somewhere in a marketing graph in these companies they will see my middle finger in their chart of a lost sale. Maybe it was a waste of time maybe it will get a point across. I still had fun doing it.

      Their are companies that sell strickly Linux machines http//www.linuxcertified.com/ I got a laptop from them. Bill has never graced its hard drive. Matter of fact the machines name is NoBill. Its the best laptop I have ever used and Bill doesn't get to count it as one of his drones. Oh yes they will build you a laptop that will dual boot Windows for $75.00 more!

  73. M$ concenting? by BroncoInCalifornia · · Score: 1

    Maybe it is about accounting rules. It could be that the software can only go on the books as an asset if it can be resold.

    --

    Religion is the main cause of atheism.

  74. Re:Predatory Pricing? No. by Anonymous Coward · · Score: 0
    Apparently you've been here for a long enough time to forget how many people out there would choose Windows over OS X, GNOME, KDE, Black Box, Enlightenment, etc.

    Most computer users don't even know that anything besides Windows exists. Given a choice between a Windows, Mac, and Linux computer (Assuming the customer was educated in the advantages/disadvantages of all three, software support was the same, and the proper drivers were available on all systems), I highly doubt anyone would pick Windows. Just purchasing Windows isn't enough; you also must buy Anti-Spyware, Anti-Virus, and Firewall software so your computer doesn't become a zombie overnight. Windows' interface pales in comparison to Macs', and the majority of Linux distros (Most Linux disto's I've seen use either Gnome or KDE; both of which are much more responsive than the Windows GUI, and support virtual desktops)

    Microsoft's products seem to be better quality (I can't remember the last time XP crashed on me)

    Since when are Microsoft's products reliable? Although they deserve much credit from drastically cutting down the number of crashes since Windows 9X; I've experianced many more problems with Windows than any other operating system. Besides the constant restarts (You installed a security update? Restart! You changed a non-major setting? Restart!), the GUI feels very unpolished. For example, the drop-down list in the address bar seems to take a surprisingly long amount of time to load, regardless of computer speed.

    it is certainly cheaper than it used to be (I can remember shelling out more for MS-DOS than Windows XP Home can be bought for)

    Windows XP and the latest version of office run something similar to $600. Most Linux distros and word processing software are free, or sell for a drastically lower price. Mac's are more expensive, but that's the market Apple is targetting with the majority of their products.

    and most people are perfectly happy to use it.

    Most people don't even know they can use something else.

  75. I will not buy this mp3 by Anonymous Coward · · Score: 4, Funny

    it is scratched....

    1. Re:I will not buy this mp3 by Anonymous Coward · · Score: 0

      I would... unfortunately, my hovercraft is full of eels...

    2. Re:I will not buy this mp3 by Anonymous Coward · · Score: 1, Funny

      I knew this guy once who had a great scam going. Hed get MP3s ripped at 128kbps and hed split em into two 64kbps files and sell em on. Man that guy really cleaned up...

  76. Re:Predatory Pricing? No. by yurnotsoeviltwin · · Score: 2, Insightful

    I dual boot XP and Ubuntu, so obviously I do "know better," but I still use Windows primarily. It's more stable, has more programs available, and it's easier for me to set it up how I like it. At this point I COULD switch to linux as my primary OS, but I really have no inclination to since it's a noticably less mature product. I support the open source movement all the way, and use quite a bit of open source software even in Windows, but I'm not about to call everyone who uses commercial software a moron or a crackhead.

  77. Not interesting by SeaFox · · Score: 1, Troll
    What's interesting is M$ is consenting to it???

    Absolutly nothing. Microsoft doesn't care much about the lost revenue on the sale. They're looking at the big picture:

    1. More people using their software.
    2. More people getting locked in their proprietary file formats.
    3. More potential sales of full price upgrades in the future.
  78. Federal Jurisdictions by Landaras · · Score: 2, Interesting

    You know the drill: IANAL, but I am a law student. Also, I view EULAs to be legal abominations that should not be enforced by state or federal courts for a number of policy reasons.

    reselling Windows is a legal right regardless of the contents of the EULA

    No. Reselling Windows is explicitly a legal right regardless of the contents of the EULA in those jurisdictions that have ruled so. A federal district court decision is binding only in that district. A district may be anywhere from a fourth to a whole of a state. California and Texas both have four districts, so based solely on your referenced decisions this behavior is explicilty allowed, as a matter of law, only in those parts of those states.

    And even then, it's not a given. I'd have to read the opinions (don't have time now), but if the judges actually relied on federal law (copyright right of first sale) as opposed to sitting in diversity and applying state contract law (which EULAs tend to fall under), then it would be binding. If the courts relied on state contract law, then the decision isn't even binding on those state courts that fall within the district. It does, however, remain persuasive ("persuasive" being a term of art.) Also, sister districts within a state tend to look at each other as very persuasive.

    As a quick refresher, federal district court decisions relying on federal law are binding on state and federal courts in those same districts. Federal circuit courts relying on federal law are binding on state and federal courts in those same circuits (which cover multiple states). Federal supreme court decisions relying on federal law are binding on state and federal courts throughout the nation. If any federal court sits in diversity and relies on state law, then the decision is only persuasive, and is less persuasive outside of the federal court's jurisdiction.

    - Neil Wehneman

  79. Re:Predatory Pricing? No. by _Sprocket_ · · Score: 1

    And you're conveniently ignoring evidence of Microsoft's anti-competative behavior that came out during the infamous trial. The actual quality of Microsoft products is a good point - but it was hardly the entire argument (especially since not everything Microsoft does is actually 'good' - but perhapse more than it's toughest critics would admit).

    I don't know how far your circle of friends and aquaintenances go, but I would suspect for every person you could name that specifically chooses Windows I can name someone else who would rather use one of the choices you listed or someone who really doesn't care one way or the other.

    And there's the problem. Those who would use something else if given the choice often do not have the choice due to the behavior of Microsoft. And because of that, it's hard to tell exactly how many people WOULD really choose Windows over any other given alternative (or how many alternatives there really would be if the market hadn't been affected the way it has been).

    The kicker is that Microsoft could probably compete entirely on the quality of its technology. But that would require a major change in Microsoft - a remixing of its culture to put technology back in control over marketing. And it would lead to a rougher time for Microsoft. It's much easier when you can dictate the direction of an industry. Just ask IBM.

    With any luck... Microsoft will become the next IBM. The IBM of today. And we'll have true competition. And you'll be able to stick with your Windows and I'll stick with my Linux... and it won't matter. Except to those who have a stake in the current status quo.

  80. law contract by Anonymous Coward · · Score: 0

    law > contract

  81. used market by pintomp3 · · Score: 1

    if i buy it, i should be able to give/sell it when i no longer want it. this reminds me of when garth brooks said he was going to boycott record stores that sell used cds. talk about greedy.

  82. Stop Licc'ing my Disc by Burz · · Score: 1

    ...it ticcles!

  83. If I buy an old used computer... by Xanlexian · · Score: 1

    If I buy an old computer that has already had Windows 98 installed on it -- just do a quick wipe and reload of the base OS, and I shouldn't have to pay for the OS. It was already purchased for that computer anyways.

    Why in the hell should it be purchased AGAIN?!

    I'm not paying again to use the RAM in the computer. Or anything else.

    And corporations wonder why people turn to piracy...

    --
    "Congratulations, Boots. Your robot has become self-aware. You're a daddy now." -- Dr. Rho Bowman
  84. German Court ruling by Arend · · Score: 1
    As far as I remember, there has been a German court ruling some time ago in a case between Microsoft and a German secondhand software shop about this. However, all I can find that comes close, is this article, which handles about selling OEM licenses separately:

    "A German appeal court has ruled that Microsoft can't stop dealers selling software it intends should ship only with new PCs separately."

    So, in Germany, it's allowed to re-sell OEM licenses and basically de-couple them from a computer. More about this here (German). A press release from the court (German) about the case can be found here

    There also is a German online shop, 2ndsoft, that offers used windows licenses.

    1. Re:German Court ruling by Arend · · Score: 1

      After re-reading the Reg article, this is the most relevant part:

      "But from what the court said when delivering its verdict, the implications of the ruling seem rather wider. The court feels that you can only exercise your rights of authorship once, which presumably means that you can place restrictions on the initial sale, but not on secondary sales. If that's the case it possibly means it's legal for OEMs to sell on copies of Windows they've already paid for (or even to sell licences, without shrinkwrap), and it's certainly legal for you to sell your copy of Windows after you've finished playing with it. In Germany."

  85. No dice by Benanov · · Score: 1

    You probably have an OEM copy which is tied to the machine. I remember something about a refund, but good luck going after it. You can't resell it, either.

  86. Oh, boo hoo... by s31523 · · Score: 1

    Oh boo hoo that this practice may take away from Microsloths profits, now Bill Gates and his cronies will have to cut back and only buy diamonique slippers instead of the real deal.... You'd have to sell me a discounted Microsloth product, I wouldn't pay full price for the privilege of running a viral petri dish on my computer!

  87. Makes sense to me by caltman · · Score: 1

    These licenses are already paid for. Micro$oft is just looking to capture revenue from companies that are using old software, want to get legal and don't want to buy new licenses.

  88. This doesn't apply to desktop OS's (yet) by nanobrain · · Score: 1

    Go here and read the article: http://www.channelregister.co.uk/2005/11/10/outlaw _software/ Notice the following: "It excludes operating system licences, such as those of Windows XP, because of transfer restrictions in these licences; but popular applications like Office XP and server-based software like Windows Server 2000 are available."