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Microsoft Threatened With Fines By EU Again

ukhackster writes "The EC is threatening Microsoft with yet more fines. This time, it's over the interoperability protocols that Microsoft has been ordered to open up to its rivals. The EC has examined 1,500 pages of information about the protocols, and concluded that they 'lack significant innovation'. This is pretty damning for both Microsoft and the patent system, as it has been awarded 36 patents covering this technology and has another 37 pending. Could this encourage someone like the EFF to start pushing to get these patents overturned? The EU has a FAQ about this issue, containing additional details on the subject.

14 of 184 comments (clear)

  1. Don't conflate interface with implementation by Todd+Knarr · · Score: 5, Informative

    That's Microsoft's problem, confusing the interface specification with the source code implementing the interface. The EU is commenting on the interface, not the implementation. When they say the interface specification contains no protectable innovation, that doesn't mean that Microsoft's particular implementation of that specification doesn't contain any innovation but simply that that innovation isn't going to be present in the mere API spec.

  2. This is about pricing by majortom1981 · · Score: 2, Informative

    Before anybody goes nuts read the article. This is about the p[ricing for a liscence microsofts allows third parties to buy that gives them the documents. Microsoft states that it should be based on innovation but the ec states they dont have too much inovation so the ec is stating that the prices are too high. How does the ec know what is innovative or not?

    1. Re:This is about pricing by Richard+Steiner · · Score: 4, Informative

      How does the ec know what is innovative or not?

      Well, according to the actual article released by the EC, the documentation Microsoft provided was reviewed by the Monitoring Trustee (Professor Neil Barrett, a tech expert chosen from a list of people provided by Microsoft) as well as TAEUS, the EC's technical advisors.

      See the FAQ for more information.

      --
      Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
      The Theorem Theorem: If If, Then Then.
  3. bullshit. by dunkelfalke · · Score: 3, Informative
    --
    Conservatism: The fear that somewhere, somehow, someone you think is your inferior is being treated as your equal.
  4. Re:I hope by geekoid · · Score: 2, Informative

    why? there is nothing found that indicates it's not patentable, and the article has nothing to do with that.

    I hope this sends a stronger "RTFM" message to the /.'rs than they're used to ignoring.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  5. Re:Or... by gstoddart · · Score: 5, Informative

    This is the EU desperately looking for some reason, any reason, to levy a hefty fine, not so much for the revenue, but to show how "tough" they are. This is a joke. Fining someone because you don't think their patents are innovative? The EU is really scraping the bottom of the barrel on this one.

    I would disagree.
    • The EU found Microsoft guilty of using their near-monopoly in an anti-competitive way. ie, they lost an antitrust suit.
    • In order to correct Microsoft's practices, the EU said MS had to provide information on protocols to allow people to interoperate with MS products.
    • MS produced 1500 pages and a pricing scheme to get access to the information. MS also agreed, in principal, that the cost to get it should correspond to the amount of 'innovativeness' in the stuff they're charging to see.
    • Upon review, the EU has concluded that the stuff MS is trying to charge so much for access doesn't really represent much in the way of innovation. Nada. They've taken what other people were doing, and fiddled with it so it wasn't interoperable.

    Now, the EU is saying that, according to the terms MS agreed to about how to value the stuff based on the amount of innovativeness in it, MS hasn't really done anything innovative. And, furthermore, how dare they try to charge so much damned money for something which, really, isn't all that different from the stuff that already existed. They're being caught in their embrace, extend, then break model of 'competition'.

    This is not the EU 'scraping the bottom of the barrel', this is about trying to enforce a previous judgement against MS -- one which they continually try to evade both the letter and spirit of: that of allowing for more interoperability between MS products and anyone else.

    They might take the step of invalidating the patents held by Microsoft. Which would say "hey, wait a minute, those magic proprietary protocols you have and claim people need to spend big bucks on are just open protocols you have intentionally made incompatible, and are trying to prevent people from implementing to preserve your monopoly-like status".

    This is all about MS continuing to defy court rulings which say they're not allowed to enforce a software monoculture -- especially when all they did is minorly change existing protocols (or, take an existing idea and do it slightly different) and then patent them in order to make sure nobody else can communicate with their stuff. You know, continuing to do the exact same offence they were found guilty of doing in the first place -- and the enforcement which they've been trying to re-interpret to their own benefit for quite some time.

    Microsoft is doing their usual obfuscate and delay tactics. The EU is starting to say "enough, do what we told you that you had to do".

    Cheers
    --
    Lost at C:>. Found at C.
  6. The actual qoute was... by an.echte.trilingue · · Score: 5, Informative
    Actually, according to the BBC, the actual quote was:

    In the 50 years of European antitrust policy, it's the first time we've been confronted with a company that has failed to comply with an antitrust decision.

    I find that statement rather significant. http://news.bbc.co.uk/2/hi/business/6408391.stm

    --
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  7. Re:Patents haven't been about innovation for years by Anonymous Coward · · Score: 2, Informative

    Oddly no, you are not the only one who thinks this. However, you think this because you don't know what other companies the EU has been fining. Please note specifically:

    "Germany's ThyssenKrupp, US-owned Otis, Kone of Finland and Swiss firm Schindler were fined for taking part in a market-rigging cartel.

    ...

    ThyssenKrupp was handed the biggest fine in EU history for a single firm - 480m euros - as it was a repeat offender, the EU added."


    The idea that the EU is only going after Microsoft is only espoused by American posters. I do not know what sense of insecurity causes them to think this. Perhaps it is the idea that only America matters and that the EU doesn't have anything interesting within it's own borders to pay attention to. Who knows?

  8. Re:Please explain by herve_masson · · Score: 2, Informative

    Supply complete and accurate information: This is very vague and how would they even test whether the documentation is complete and accurate

    If I was appointed to the evaluation, I would try to figure out if I am able to create a software able to communicate with windows's SMB (and friends) protocols from their spec. I don't see this as an impossible task really as long as I am given enough time, and it looks like they took some time for that since the issue with EU began. The formulation of the news report may sound vague to you, but the objective it represents does not need much more details I think.

    Make that information available on resonable terms: Then specify the terms rather than going back and forth on telling MS, your royalty rates are high. If comission finds that the royalty rates are high, then specify the maximum that MS can charge on these kind of things. If comission determines it should be free and specify that

    I've the feeling that it's more or less what they have done:

    here reads:
    For both licences, Microsoft divided the protocols into Gold, Silver and Bronze price categories based on the claimed degree of innovation. Microsoft has already agreed that there is a fourth category of protocols, not necessarily innovative, for which there will be no royalty.

    According to the trustee, there is no innovation in most of their protocols, which means there should be no royalty for them if I read that correctly. You may argue that the appointed trustee might not be in conditions to drive educated enough conclusions, but this is someone both EU and microsoft have agreed upon:

    In accordance with the terms of the Decision, Microsoft submitted several candidates for the position of Monitoring Trustee

    Hence, I see some substance in the today's development of the microsoft issue, and hope it's gonna go a lot further for once. This is a stupid games, and microsoft is wasting both EU's time and tax money on that one; I'll be glad if some of that cash come back as a fine they truly deserve.

  9. Re:slightly queasy by Todd+Knarr · · Score: 3, Informative

    Look at the comparable technology and if its not priced below it then perhaps they are being unreasonable.

    Except that this doesn't involve technology. The EU is making a statement about the specifications, not the implementation. The specification for the TCP protocol isn't a TCP protocol stack, it's only MS that wants to call it one.

  10. They don't conflate interface with implementation! by hxnwix · · Score: 3, Informative

    They don't conflate interface with implementation; you do!

    RTFA:

    "The Commission's current view is that there is no significant innovation in these protocols."

    The EC is saying that THE PROTOCOLS THEMSELVES should not be patentable. I suspect that they are rebutting Microsoft's argument that the PROTOCOLS THEMSELVES constitute innovation and therefore must not be divulged.

  11. Re:Please explain by KokorHekkus · · Score: 3, Informative

    Supply complete and accurate information: This is very vague and how would they even test whether the documentation is complete and accurate
    They let Microsoft define who was capable to judge this issue by letting them deliver a shortlist of people that Microsoft themselves found acceptable. The EC then picked one of them.
  12. Re:Or... by WindBourne · · Score: 3, Informative
    Nobody is forced to use any Microsoft product.

    False. MS is having gov. do their bidding for them. In particular, upper reaches of gov. tell sub groups that they will run windows. The upper group have a cash or reward incentive to do it. In America, it is called lobbying or simply doing business as usual. In other countries, it is called bribery and is illegal.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  13. There IS no significant innovation by bastianmz · · Score: 4, Informative

    If you look at what is covered by Microsoft's Published Protocols made available by entering into Royalty Free licensing agreement, you will find yourself able to "to implement the Protocol(s) for which the applicable box(es) are checked on Exhibit A, and to use the corresponding Technical Documentation (as defined below) for that purpose." What are some of these Royalty Free protocols?

    • Daytime (RFC 867)
    • Chargen (RFC 864)
    • AppleTalk
    • DIFFSERV (RFC 2474)
    • Discard (RFC 863>
    • DNS (All appropriate RFCs)
    • DHCP
    • FTP
    • TCP/IP
    • ...

    The list just keeps going on. I know this is royalty free but for the life of me I cannot figure out why I would need to sign a licensing agreement with Microsoft to implement any of these. A patent agreement maybe with Apple for AppleTalk or relevant parties to implement Bluetooth for example (not saying that I agree with software or protocol patents but this is the IP environment that we currently work in). Signing an agreement with Microsoft to be allowed to read documentation and implement someone elses protocol, WTF? No significant innovation. I would be interested to know if anyone has entered into this Royalty Free agreement.

    Protocols not included in this list are subject to other licensing and royalty agreements. An implementation of a General Server without restricted protocols has a royalty rate of 5% for a software product and 2.5% for an embedded product with a minimum royalty of $40 per server or $0.40 per user. Per server licensing would put the minimum product price at $800.

    Included in this is permission to implement propriety Microsoft protocols (.NET Remoting TcpChannel Protocol, FrontPage Server Extensions Remote Protocol, Microsoft Media Server Protocols, Windows Group Policy Protocols, etc) which may include significant innovation as well as others that are existing protocols that have been extended. These include:

    • H.323 Protocol Extensions (Additional codec)
    • Layer 2 Tunneling Protocol with IPsec Extensions
    • Windows Media Services HTTP 1.0 Streaming Protocol
    • Windows Media Services HTTP 1.1 Streaming Protocol
    • World Wide Web Distributed Authoring and Versioning (WebDAV) Protocol Extensions
    • Internet Protocol Security Protocols Extensions
    • NT LAN Manager Authentication Protocol (Kerberos extension)
    • Network Time Protocol Extensions

    None of these appear to be licensed separately, they are only available as part of task based licensing bundle. The protocols in the list above also don't have any significant innovation, they are just minor extensions or combinations of, existing protocols. I agree with the EU, these should not be patentable (nor should any protocol) and that the royalty is excessive.