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Supreme Court Sides With Microsoft Over AT&T

The Supreme Court today sided with Microsoft in another important patent case filed by AT&T. The case centered around whether selling Windows overseas infringed on AT&T's patents that are in Windows. Microsoft argued [PDF] that the copies being sold in Asia were "...not technically supplied from the United States because overseas manufacturers of its computers made copies of the software from a master disk and installed those copies into the operating system. Microsoft said it could not be considered a supplier since the copies, not the original software, were in the computers built abroad." Now, while I support the weakening of software patents in general, by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows?

122 comments

  1. The MS Crack Pipe... by Farfnagel · · Score: 0

    ...seems to get passed around a lot.

  2. WTF? by Xesdeeni · · Score: 2, Insightful

    That makes absolutely no sense. Surely I misunderstood this:

    You can wash your hands of patent infringement by hiding behind a redistribution license!?

    That sounds like a loophole big enough for a 18-wheeler to drive through!

    Xesdeeni

    1. Re:WTF? by Spazmania · · Score: 4, Insightful

      IANAL, but I suspect the ruling has been misrepresented.

      Generally, a company operating abroad is responsible for complying with local law, not US law. You can't sue a company in a US court for its behavior overseas. That's the the general rule; there are exceptions.

      The law makes an exception for building devices in the US which would infringe a patent if sold in the US but are instead exported -- the patent holder can sue in the US where the device is made. Microsoft argued that the general principle (local law) applies here, not the exception, because the would-be infringing device was actually manufacturered abroad.

      The Supreme Court agreed and applied the general rule: if AT&T wants to collect, they'll have to sue in the countries where the infringement occurred.

      --
      Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion.
    2. Re:WTF? by nine-times · · Score: 1

      That still doesn't make sense. Windows isn't "manufactured" abroad. It's copied abroad. Unless the patents are related to pressing CDs, the "product" being manufactured isn't the disc, it's the OS.

    3. Re:WTF? by GIL_Dude · · Score: 1

      The summary seems to indicate that, but when I read the article it seemed to be saying that they cannot consider "windows" to be a component of a computer. Not sure if that is really the decision, but the article sounded that way to me. If that's right, then they would still be left open for some other type of suit - just not one that says "windows, a component of computers sold...".

    4. Re:WTF? by TeraBill · · Score: 3, Insightful

      Right, but wasn't this reported a while back and the statement was made that MS had earlier argued in court that they should be allowed to count all of the individual copies sold overseas for deductions on their taxes. And now they are arguing the other side for the purposes of the AT&T patent infringement case. I just think that they should have to choose a side for the argument. If they claim for the purposes of US tax accounting that all of the copies sold originate here, then that holds for the AT&T case. If they are willing to give up the additional deductions and pay the back taxes and penalties, then they can have this ruling. They just shouldn't be able to have both.

      But then I'm not a lawyer, nor do I play one on television.

    5. Re:WTF? by terrymr · · Score: 1

      Chances are that AT&T doesn't hold patents on this technology outside the US. They are trying to use the US courts to block international distribution.

    6. Re:WTF? by Spazmania · · Score: 3, Interesting

      Patents are a little different than copyright. You infringe a copyright by copying the work. You infringe a patent using the patent -- in the sense that you use a physical device which implements the patent. Accordingly, manufacture of the device occurs when the components are combined into a physical form capable of using the patent.

      --
      Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion.
    7. Re:WTF? by Intron · · Score: 2, Informative

      "Windows isn't "manufactured" abroad. It's copied abroad."

      That's pretty much what the Supremes decided. It's not subject to US patent law unless components of the infringing device are made in the US. They decided that making a master here and copying it abroad does not constitute infringement in the US.

      The decision is also remarkable because Justice Alito compares Windows to a shrimp deveiner.

      Note to editors: you can circle around or center on but you can't "center around".

      --
      Intron: the portion of DNA which expresses nothing useful.
    8. Re:WTF? by Romancer · · Score: 1

      So what part of this argument doesn't negate all of the patants that Microsoft has on their software? If you can't be sued because your software isn't a component that was included in a computer, and claim that because the software was copied onto the system and therefore was not included with it, it doesn't constitute a component of the patentable item.

      Where does software stand then with so many battles over 1-click, table/database, tab and software download patents? All still not defining software as a patentable area so that this case was decided as such?

      Copyright and patent laws need so much reform it's just getting rediculous!
      People should look back on this age as we do to when they thought the earth was flat.
      "Those bumbasses just needed to look around and get a clue"

      --


      ) Human Kind Vs Human Creation
      ) It'd be interesting to see how many humans would survive to serve us.
    9. Re:WTF? by Anonymous Coward · · Score: 0

      around, preposition:
      1. roundabout
      2. at or near

    10. Re:WTF? by antarctican · · Score: 1

      The law makes an exception for building devices in the US which would infringe a patent if sold in the US but are instead exported -- the patent holder can sue in the US where the device is made. Microsoft argued that the general principle (local law) applies here, not the exception, because the would-be infringing device was actually manufacturered abroad.

      While I agree with your post, it doesn't answer the deeper question of where Windows is "manufactured." I'd argue it's manufactured in Redmond.

      I wonder how the law would apply to a physical product (ie. some widget) that is designed in the US with specifications that infringe on a patent but manufactured and sold by the company's overseas branch. Is that infringing? I'm betting a court would say yes.

      So why is Microsoft pressing CDs overseas any different? The infringing occurred in the US when the code was written and compiled.

      Of course the next question is... how can the OSS community take advantage of this lovely loophole Microsoft has openned? :)

    11. Re:WTF? by king-manic · · Score: 1

      So what part of this argument doesn't negate all of the patants that Microsoft has on their software? If you can't be sued because your software isn't a component that was included in a computer, and claim that because the software was copied onto the system and therefore was not included with it, it doesn't constitute a component of the patentable item. simple.. if MS has a patent in that country they are okay. AT&T doesn't hold a patent for that bit in many of the countries MS sells to. So MS can sell there royalty free and At&T must apply to patent what ever it is MS has used.
      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    12. Re:WTF? by Dread+Pirate+Skippy · · Score: 1

      I wonder how the law would apply to a physical product (ie. some widget) that is designed in the US with specifications that infringe on a patent but manufactured and sold by the company's overseas branch. Is that infringing? I'm betting a court would say yes.

      As I understand it, no, as long as its only manufactured overseas, you couldn't sue in the US. The company has every right to sue in the country where its being produced, but its not likely that they hold the patent there as well. If you're referring to manufacturing the widget overseas and then selling it back to the branch in a country where its already patented, Wikipedia tells me that would be infringing as well, anyone importing, selling, distributing, etc. is considered infringing.

      So as long as you keep your infringement outside the country, you're set.

    13. Re:WTF? by Spazmania · · Score: 1

      While I agree with your post, it doesn't answer the deeper question of where Windows is "manufactured." I'd argue it's manufactured in Redmond.

      That's an easy one: Windows ISN'T manufactured. PC's running Windows are manufactured. For patent purposes, Windows is just an unpatentable set of instructions telling those PC's how to implement a patent.

      Here, this post explains it far better than I can: http://slashdot.org/comments.pl?sid=232849&cid=189 33137

      --
      Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion.
    14. Re:WTF? by cheater512 · · Score: 1

      But doesnt Microsoft export the master copies?

    15. Re:WTF? by Anonymous Coward · · Score: 0
      I must be missing something here.

      From the article that you point to:

      You cannot enforce patents on algorithms/idea themselves, just devices/actions that implement them .

      According to the logic in this statement, there is no reason to pay money for software licenses. The software is not a device, nor can it implement any actions sitting on a CD/DVD. You would need a computer to make anything happen.

      You cannot mandate using this OS, so it is not a required component of a desktop computer.
      Desktop computers will function with other OSes.
      Copying a Microsoft CD and using their OS to run on your desktop computer doesn't change the inherent purpose of your desktop computer. It doesn't provide functionality that isn't available in other formats from other sources.

      - you figure it out, my head hurts...
    16. Re:WTF? by Mattsson · · Score: 1

      So Microsoft claim that their products are the actual CD's or DVD's that contain their software, not the software itself, which definitely is produced in the US? =/

      Well, it does comply nicely with their "You got to have the exactly correct version of the physical media to install"-license keys.

      --
      /.Mattsson - My native language is not English, so please don't whine over linguistic errors. (That's lame anyway...)
    17. Re:WTF? by asc99c · · Score: 1

      But really the copying is the manufacture. Writing the software is the design. Apple designs iPods in California and ships out a complete description of it to China where the pieces are put together. Microsoft designs the software in various countries and sends the completed design to other countries where they press and package up the CDs for distribution. Just because the split of work and cost between the two phases is different doesn't change the definitions.

    18. Re:WTF? by nine-times · · Score: 1

      Apple designs iPods in California and ships out a complete description of it to China where the pieces are put together.

      But what they're selling is software-- and where are the "pieces" of software put together? The problem with your interpretation is that the software is complete when it has been written and compiled, but iPods are not complete when they've been designed. Therefore, writing the software is not the "design" phase-- it's the construction of the product being sold.

  3. Uh, in the digital world, if MS gets paid by Burz · · Score: 1

    ...for the copy then they are the supplier.

    1. Re:Uh, in the digital world, if MS gets paid by Bill,+Shooter+of+Bul · · Score: 1

      Right, but not in the legal world.

      --
      Well.. maybe. Or Maybe not. But Definitely not sort of.
  4. Does this mean..... by stox · · Score: 1, Insightful

    that if I steal one copy of Windows, and make 1,000,000 copies of it, that I am only liable for the one copy? After all, since Microsoft only produced one copy. I am only depriving them of the use of one copy. The lawyers are going to have a field day with this decision.

    --
    "To those who are overly cautious, everything is impossible. "
    1. Re:Does this mean..... by Anonymous Coward · · Score: 0

      Does this mean that if I steal one copy of Windows, and make 1,000,000 copies of it, that I am only liable for the one copy? After all, since Microsoft only produced one copy. I am only depriving them of the use of one copy. The lawyers are going to have a field day with this decision.

      Why yes it does =)
      Which makes me curious how it's still okay to copyright metaphors
    2. Re:Does this mean..... by jfengel · · Score: 4, Insightful

      I don't think so. There are a couple of things going on here:

      1. This only applies to other countries.

      2. It only applies to the AT&T patents inside the software.

      It seems that the OEMs are nominally responsible for securing AT&T's patents in those countries before distributing the software. So if you're in Asia pirating copies of Windows, both Microsoft and AT&T will be suing you.

      If you're in the US, only Microsoft will sue you, and part of the money they take out of your hide should go to AT&T.

      So AT&T should, theoretically, be going after these OEMs; Microsoft isn't on the hook to pay them. But it's a lot easier for AT&T to pursue Microsoft than a bunch of Microsoft's OEMs. /IANAL

    3. Re:Does this mean..... by tricorn · · Score: 1

      Umm, no. Copyright law and patent law are completely different. This is about patent law, and has nothing to do with making unauthorized copies of software.

    4. Re:Does this mean..... by tricorn · · Score: 1

      Umm, no. The AT&T patent isn't valid in the other country, so no, they couldn't go after you there for patent infringement. Try R-ing TFA next time.

      The issue was whether producing the software in this country was violating the patent in this country even though it was only used in a country where it wasn't patented; the court ruled that since what was shipped from this country was never combined into a product that violated the patent, only copies made from what was shipped from this country, that it did not violate the patent in this country. If there was a patent in the other country that applied, it would still be infringing that (though, presumably, it would be whoever did the final "combining" of the software and hardware into a single product that was doing the infringing).

    5. Re:Does this mean..... by orielbean · · Score: 1

      No, you are still violating copyright laws which have different applications from patent law. Not the same thing.

  5. Of course it doesn't apply. by garcia · · Score: 1

    Now, while I support the weakening of software patents in general, by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows?

    A lawsuit from AT&T hurts Microsoft's bottom line and thus this ruling is ok. Pirating overseas in Asia also hurts Microsoft's bottom line and thus this ruling wouldn't be applied.

    Glad we have that cleared up.

    1. Re:Of course it doesn't apply. by ponzio · · Score: 1

      Yeah; and the day I see Gates, Ballmer, etc. standing in a breadline I may feel a twinge of guilt. But I doubt it.

  6. I think Microsoft needs to prove by Marxist+Hacker+42 · · Score: 1

    That the Asian OEM code is substantially different than what is sold in the US.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    1. Re:I think Microsoft needs to prove by Anonymous Coward · · Score: 0

      That's irrelevant. This isn't about source code, it's about where the product was sourced. Versions of Windows shipped in Asia are not shipped from the US. They're manufactured and shipped in and from Asia.

    2. Re:I think Microsoft needs to prove by Marxist+Hacker+42 · · Score: 1

      If the original coding was in the US- or even that particular DLL- then that shouldn't be an issue. Unless of course they want to get into the philosophical difference between software and hardware, and even then, they've got to prove that the disks manufactured and shipped in are not substantially different than say, a music CD, or Sony's and Phillip's patents might come into play.

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    3. Re:I think Microsoft needs to prove by Marxist+Hacker+42 · · Score: 1

      2nd reply- now I think I understand what you're saying. Does this mean I can break a patent merely by having the product manufactured in China and marketed here?

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  7. Piracy has nothing to do with patents by CodeShark · · Score: 4, Insightful
    What it simply means is that the Supreme Court is being consistent with existing law regarding patents, i.e. the method that M$ uses to export Windows to foreign companies means that certain types of patents don't apply therefore MS can't be sued for using patented code oversees if it obeys certain export rules.


    But this has nothing to do with "pirated copies", because software piracy is a matter of copyright law, not patent law, and there are numerous treaties governing the protection of copyrights internationally that still apply.

    --
    ...Open Source isn't the only answer -- but it's almost always a better value than the alternatives...
    1. Re:Piracy has nothing to do with patents by TheRaven64 · · Score: 1
      Please, somebody, mod the parent up. With the number of IP-related stories posted here, you'd have thought that ScuttleMonkey would understand the difference. Mind you, his commend didn't really seem to make any sense, since (very limited) patent licenses are part of the software license, and so are obviously not granted to users of pirate versions before or after the ruling.

      The good thing about this is that it gives the anti-patent lobby in the US a powerful weapon to use when talking to their elected representatives. Now they can say 'even when made by a US company, exactly the same product costs less to sell outside the USA where they don't have software patents, won't somebody think of the cheap consumer goods?'

      --
      I am TheRaven on Soylent News
    2. Re:Piracy has nothing to do with patents by ghoti · · Score: 1

      trianglman's point was not about copyright or piracy per se, but about its implications. If Microsoft is not the supplier of Windows if the DVDs are pressed or the harddisks installed by other companies in Asia, then you can argue that Microsoft is not the supplier of the software for people who pirate it, either. Of course, this does not make any sense either, because AT&T wasn't suing Microsoft's customers or people who had pirated Windows. But at least argue against the right argument ;)

      --
      EagerEyes.org: Visualization and Visual Communication
    3. Re:Piracy has nothing to do with patents by ghoti · · Score: 1

      Of course it was ScuttleMonkey's point. Sorry for mixing up the editor with the submitter.

      --
      EagerEyes.org: Visualization and Visual Communication
    4. Re:Piracy has nothing to do with patents by PPH · · Score: 1
      Right.

      The 'master disk' that Microsoft provided foreign manufacturers wasn't pirated, so copyright laws don't apply. This means that once your IP leaves the borders of the USA, there's nothing protecting it in the way of patent law. So long as they aquire the media legitimately, there is no patent protection.

      --
      Have gnu, will travel.
  8. Sensors Detect Bullshit, Captain by ewhac · · Score: 1
    Could someone read the decision and tell us what it really says? Because the posted summary makes absolutely no sense at all. I can't believe an argument that fatuous would fly in the SCOTUS.

    Schwab

    1. Re:Sensors Detect Bullshit, Captain by terrymr · · Score: 2, Informative

      Other stories I've seen about the case said that the court ruled that US patents do not apply outside the US. Therefore microsoft can't be infringing AT&T patents outside the US. I'm sure AT&T's argument was on the theory that all copies of windows came from the US therefore they could stretch US patent laws to cover windows sold outside the US.

    2. Re:Sensors Detect Bullshit, Captain by Adhemar · · Score: 4, Informative

      You might remember that this was the Supreme Court case where the Freedom Software Law Center (Eben Moglen's organisation) did write an Amicus Curiæ Brief technically in support of Microsoft. The SFLC wanted the Court to decide that software isn't a (patentable) component altogether. Sadly, the Court did not follow that logic. (It was a long shot, and worth the try.)

      Instead, it held that software in the abstract isn't a component. It's not the method but the apparatus capable of executing the method that can be patented.

      Such an apparatus is, in pratice, a computer on which said software is installed.

      The contended software was a speech encoding and compression algorithm included in a version of Windows sold to foreign manufacturers.

      The Court held that since the actual copying of the Windows software on the computer was done outside the United States (Düsseldorf or Tokyo, if I recall), the United States patent law does not apply. The fact that the software (on the master disk) was created inside the United States, and copied from the United States to Düsseldorf or Tokyo, is considered irrelevant.

      So basically, the Court held that software patents are unenforceable under US patent law as long as you don't load the software on any device inside the US.

    3. Re:Sensors Detect Bullshit, Captain by vux984 · · Score: 4, Informative

      To make a more layman analagy:

      Suppose I design a chair that infringes AT&Ts patent in the US (and the patent only applies in the US). If I make the chair in the US, I have to pay the license. If I make the chair in china and import it to the US I have to pay to license.

      If I have a chair factory in the US that makes chairs for US use, and another factory in china that makes chairs for Chinese use. Then I don't have pay licensing on the Chinese chairs, because the patent doesn't apply where they are produced or sold. This isn't controversial, and is how patent laws work. You only have to license patents in the countries you make/sell the products affected by them.

      Now, of course for me to set up a chair factory in china I have to send them blueprints and a prototype for the chair. This is of course, perfectly legal. Again, no controversy. At most I might pay a royalty on the single unit.

      Now in this case, AT&T asserted that distributing windows elsewhere, by having sent a copy of the CD sent there constituted making the product in the US and then distributing it, entitling AT&T to patent royaltys for each copy sold abroad.

      MS, asserted it was really more like sending a single blueprint and prototype to the chair factory, for them to produce copies locally, and that AT&T was not entitled to royaltees for each copy of the product made and distributed abroad.

      I personally agree with SCOTUS, and side with MS on this. Its consistent with how patent law is normally applied.

    4. Re:Sensors Detect Bullshit, Captain by bockelboy · · Score: 1

      So basically, the Court held that software patents are unenforceable under US patent law as long as you don't load the software on any device inside the US.
      That sets of big flashing lights in my head. If I violate Company X's patents by writing some open-source software package, can I be held liable for patent infringement? After all, I'm just distributing the "blueprints", the end-users are the ones who are violating the patent by loading it on a computer.

      Of course, you can't license such a piece of software under the GPL because it would restrict redistribution. It still makes it an interesting argument that might weaken the reach of patents.
    5. Re:Sensors Detect Bullshit, Captain by Keeper · · Score: 1

      If I violate Company X's patents by writing some open-source software package, can I be held liable for patent infringement? After all, I'm just distributing the "blueprints", the end-users are the ones who are violating the patent by loading it on a computer.

      Theoretically, as part of writing that software package, you "installed" it to verify that it worked. However, you're only liable for a single instance of infiringement. Anyone who downloads the package and installs it on a single computer would also be liable for a single instance of infringement -- this isn't a new revelation -- in fact it is one of the bits of fud being spread to slow the adoption of FOSS.

    6. Re:Sensors Detect Bullshit, Captain by Samari711 · · Score: 1

      So basically, the Court held that software patents are unenforceable under US patent law as long as you don't load the software on any device inside the US. True. Of course as soon as you try to import it into the US you get whacked with patent infringement.
      --

      I never said I was smart, I just said I was smarter than you

    7. Re:Sensors Detect Bullshit, Captain by mabhatter654 · · Score: 1
      without knowing particulars because the links are light, I think there's one change to your example... Microsoft may have licensed the code prior to putting it into there software in the US and agreed to pay fees... then exported that software where it wasn't patented. Should Microsoft pay for all the copies they sold under the agreement as the agreement was for their company to use ATT IP? It would seem Microsoft is pulling a "we don't have to pay" move here... after negotiating a contract for say 1 million copies with ATT then telling the court half were sold where there is no patent so we shouldn't have to pay ATT.

      on a side note, this is why Microsoft doesn't understand the GPL.... they simply don't believe in honesty. period. They don't appear to every negotiate a contract in good faith... look at all the articles on slashdot about that. It's the absolute worst kind of business dishonesty because they ruin it for everybody. I've always likened their business practice to that kid on the playground that trades everybody for stuff they're not allowed to have then runs to teacher when they get one bad deal and wants take-backs because they weren't supposed to be doing it in the first place..."that's the rules!" then sneers behind the teacher's dress and starts all over again.

    8. Re:Sensors Detect Bullshit, Captain by vux984 · · Score: 1

      Microsoft may have licensed the code prior to putting it into there software in the US and agreed to pay fees... then exported that software where it wasn't patented. Should Microsoft pay for all the copies they sold under the agreement as the agreement was for their company to use ATT IP?

      In a word "No", at least not for patents. Microsoft doesn't need an agreement with ATT in order to get 'access' to the *patents*. Patents are public and published and can be freely accessed by anyone. Microsoft needs an agreement with ATT to create products in the US covered by the patent, or to sell products in the US that are covered by the patent, but for a product made and distributed in China there is no restriction in using the patent. And as anyone can view the contents of the patent its not like you needed to deal with ATT to see what they covered.

      Now if this were a copyright case, it would be different; if ATT supplied actual copy-protected source code that they expected to be paid a royalty for they'd have a solid case.

      It would seem Microsoft is pulling a "we don't have to pay" move here... after negotiating a contract for say 1 million copies with ATT then telling the court half were sold where there is no patent so we shouldn't have to pay ATT.

      Except that it really is how patent law works. Microsoft is not obligated to enter into a contract with ATT at all in order to create and distribute products abroad where the patent doesn't apply.

      I've always likened their business practice to that kid on the playground that trades everybody for stuff they're not allowed to have then runs to teacher when they get one bad deal and wants take-backs because they weren't supposed to be doing it in the first place..."that's the rules!" then sneers behind the teacher's dress and starts all over again.

      Except in the playground, the kids know better and -don't- get takin in a second time. I'm not sure why anybody enters into deal with Microsoft these days without expecting MS to use their size, weight, marketshare, and legal manipulations against them.

      Overall I agree that MS might have been disingenuous in their dealings with ATT and 'deserve to lose'; and perhaps that ATT set pricing based on the expectation that they would be compensated for each copy of windows regardless of whether a patent license was actually needed where it was sold. But its ultimately ATT's fault for not spelling out the deal more clearly.

      If you and I have an agreement that I can copy your book and sell it, provided I pay X for each copy, and then I start producing and selling copies in a country that doesn't have any copyright law. What is your recourse? You couldn't sue me for copyright infringment, because what I'm doing isn't violating copyright. I am however violating a reasonable interpretation of our contract, and you might be able to go after me on that.

      Similarly ATT -might- have a case showing that their licensing contract should be interpreted as requiring microsoft to pay patent royalty on foreign production, but they don't have a case that MS is actually violating patent law directly.

    9. Re:Sensors Detect Bullshit, Captain by TheLink · · Score: 1

      You can sit in country A while the software you wrote is compiled and installed in country B where the patent laws don't apply.

      --
  9. Moot point by jshriverWVU · · Score: 1

    Are they claiming that IP in Windows doesnt matter when the software is being pirated, and that the Asian versions of Windows aren't really made by them, but a copy? Thought Windows made/supported a full Asian version.

    1. Re:Moot point by bockelboy · · Score: 1

      No. They claim nothing about piracy or IP in general. This has to do with patent lawsuits, not pirates or copyright.

      They are claiming that they are not exporting patented parts outside of the US for foreign assembly.

      The software doesn't violate the patent until the foreign manufacturers load it on a computer. Hence, MS is not exporting a patented part, so they don't violate that particular law.

      It's as if I patented a widget made of steel. Can I sue the steel manufacturer for exporting the metal to China where you make the widget in violation of the patent? No. Could I sue a US widget maker for violating my patent, even if they only sell it in China? Yes.

      It's a good example of "laws written for one context, used for another context". Doesn't change the piracy picture a bit.

  10. Re:First Dup! by Anonymous Coward · · Score: 3, Informative

    There have been two separate significant rulings by the Supreme Court. One is Microsoft Corp. v. AT&T (the subject of this article) and the other is KSR Int'l Co. v. Teleflex Inc. (the subject of the article you linked to).

    HTH

  11. A rule to live by. by Howitzer86 · · Score: 1

    The first rule of pirating software is... don't talk about pirating software.

  12. Re:First Dup! by shystershep · · Score: 2, Insightful

    I know it's not fashionable to RTFA, but come on. Just because the summaries contain the words "patent" and "Supreme Court," that does not automatically mean they are the same. These are completely different stories.

    --
    The bigotry of the nonbeliever is for me nearly as funny as the bigotry of the believer. - Albert Einstein
  13. What does this mean for end users of ... by sabre86 · · Score: 2, Interesting

    "patented software?"

    So if I make a copy of, say, Linux that has a "patent-infringing" software in it, am I liable for violating the patent, or is the author of the software? Or are both of us, if we're in the US?

    --sabre86

    1. Re:What does this mean for end users of ... by sabre86 · · Score: 1

      Late thought: It just occured to me that I may have to export the copy to be liable, perhaps by allowing it to be downloaded internationally from my server. I'm not familiar with the patent law in question, but the article seems to imply that this applies to exporting components. That confuses me. Is the patent for "using the software with a computer" or for the software -- or some algorithm in the software -- itself? As somebody said earlier, if anyone can actually explain what this means, please do. --sabre86

    2. Re:What does this mean for end users of ... by yellowalienbaby · · Score: 1

      I'm interested in this view. I'm hoping someone who knows stops by..

      --
      Darwin Hawking Blackmore
    3. Re:What does this mean for end users of ... by kripkenstein · · Score: 1

      So if I make a copy of, say, Linux that has a "patent-infringing" software in it, am I liable for violating the patent, or is the author of the software? Or are both of us, if we're in the US?
      If (big if) I understand the ruling, then making a copy isn't infringement at all, for anyone. The point of the ruling was that software in itself is just information, not a 'component', and not patentable. However, if you install software on a computer, the final result - a working version of the software on a physical computer - may infringe on patents. So, Microsoft were ruled able to legally distribute copies of Windows which is patent-encumbered.

      It would seem that mere distribution of software is therefore not liable to patent lawsuits. So ftping or bittorrenting patented code appears fine, which is, incidentally, not a bad thing for FOSS servers hosting such content.

      However, reading the decision itself, things appear far trickier. For example it is critical that the copies installed are not those that are exported, i.e., Microsoft exports a single 'master' CD, which is then duplicated and installed on actual PCs. But this would be easy enough to do (create an intermediary copy) if necessary to avoid lawsuits.
  14. Article summary is wrong by Marxist+Hacker+42 · · Score: 1

    It's even WORSE- Microsoft is arguing that software isn't patentable because software and hardware are different. Well, maybe that's better- but basically, they're arguing no patent infringement because the source code wasn't on the disk.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  15. Re:Dupe by terrymr · · Score: 1

    Different story

  16. I'll take a shot.... by Otter · · Score: 2, Interesting
    Decision here. I'm not sure I follow it, but since my understanding could hardly be worth less than the submitter's, here's a shot at summarizing it:

    The issue is whether the US patent held by AT&T applies to copies of Windows that are installed on foreign-built computers. The ruling is that OS installs from a master disk made in the US don't qualify as US-made export goods themselves, and therefore aren't subject to US patents.

    1. Re:I'll take a shot.... by omeomi · · Score: 1

      The ruling is that OS installs from a master disk made in the US don't qualify as US-made export goods themselves, and therefore aren't subject to US patents.

      But doesn't Microsoft still get paid for each OEM copy of Windows that is sold, regardless of whether an actual CD was sent for each computer or not? Also, don't computers oversees come with an official copy of the Windows CD? Last I checked, they do here...although, it has been awhile since I've purchased a computer rather than building it myself...

    2. Re:I'll take a shot.... by Otter · · Score: 1
      But doesn't Microsoft still get paid for each OEM copy of Windows that is sold, regardless of whether an actual CD was sent for each computer or not?

      They do, but that's not (again, as I understand this) enough to make US patent law applicable to those sales. The product has to be "made" in the US.

    3. Re:I'll take a shot.... by omeomi · · Score: 1

      They do, but that's not (again, as I understand this) enough to make US patent law applicable to those sales. The product has to be "made" in the US.

      Doesn't this seem like a fundamental misunderstanding of software? I mean, the software isn't the CD, it's the stuff on the CD...every copy of it is identical to the original...the transmission medium should be completely irrelevant.

    4. Re:I'll take a shot.... by ps_inkling · · Score: 1
      The judges took this into consideration. Short answer: it's the computer running the software that's infringing, not the software itself. Congress can choose to close this loophole. From the (thanks to another poster) fine PDF):

      AT&T holds a patent on an apparatus for digitally encoding and compressing recorded speech. Microsoft's Windows operating system, it is conceded, has the potential to infringe AT&T's patent, because Windows incorporates software code that, when installed, enables a computer to process speech in the manner claimed by that patent. It bears emphasis, however, that uninstalled Windows software does not infringe AT&T's patent any more than a computer standing alone does; instead, the patent is infringed only when a computer is loaded with Windows and is thereby rendered capable of performing as the patented speech processor. The question before us: Does Microsoft's liability extend to computers made in another country when loaded with Windows software copied abroad from a master disk or electronic transmission dispatched by Microsoft from the United States? Our answer is "No." The master disk or electronic transmission Microsoft sends from the United States is never installed on any of the foreign-made computers in question. Instead, copies made abroad are used for installation. Because Microsoft does not export from the United States the copies actually installed, it does not "suppl[y] . . . from the United States" "components" of the relevant computers, and therefore is not liable under 271(f) as currently written. Plausible arguments can be made for and against extending 271(f) to the conduct charged in this case as infringing AT&T's patent. Recognizing that 271(f) is an exception to the general rule that our patent law does not apply extraterritorially, we resist giving the language in which Congress cast 271(f) an expansive interpretation. Our decision leaves to Congress' informed judgment any adjustment of 271(f) it deems necessary or proper.
    5. Re:I'll take a shot.... by jonbryce · · Score: 1

      But the patent isn't on the software. You can't patent software. The patent is on "a device or apparatus that [in this case recognises speech]", ie some speech recognition software running on a computer. The "running on a computer" bit is the important thing here.

      The CD containing the software is not a patentable device or apparatus. It becomes patentable when it is loaded on a computer. That didn't happen in the US, so it falls outside US juristiction.

      In all other respects, it doesn't make software any less patentable, as there is mostly no point in having it if you can't run it on a computer.

  17. Re:fastest....dupe....ever..... by terrymr · · Score: 0, Redundant

    ITS A DIFFERENT STORY

  18. The Real Question by Jah-Wren+Ryel · · Score: 1

    Now, while I support the weakening of software patents in general, by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows?
    That's a stupid question. If you are a pirate, why would you even care about the patents?

    The real question this brings up is if someone pirates this same overseas master disk and distributes those copies, doesn't it follow that MS has no recourse, that the only ones being infringed are the overseas distrbutors and not MS?

    And the answer is OF COURSE NOT, do not expect the law to follow common sense or have any sort of internal consistency. If it did, who would employ all the lawyers?
    --
    When information is power, privacy is freedom.
    1. Re:The Real Question by king-manic · · Score: 1

      The real question this brings up is if someone pirates this same overseas master disk and distributes those copies, doesn't it follow that MS has no recourse, that the only ones being infringed are the overseas distrbutors and not MS? They have no recourse to persue patent compensation but they could persue copy-right violations. Violating a patent is not violating a copyright law. They are no equivalent. Although both are used in similiar ways: temparary monopoly on some ideas.
      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
  19. ScuttleMonkey knows not what he says. by pavon · · Score: 4, Informative
    Copy and pasted from my post in the the other patent thread that mentioned this case as an aside:

    You cannot enforce patents on algorithms/idea themselves, just devices/actions that implement them - this has been true since the beginning. The Supreme Court has never ruled that software is patentable, just that a device implemented using software is just as patentable as one implemented using hardware. It has long been believed that source code would not be considered a device, but just a description of a device, and is thus no more protected by patent law than a technical spec or published paper. However, programs running on a computer have been ruled to be a device, and therefore in practice sofware is patentable, even though technically it is not.

    This case focused in part on the question of whether compiled code is a device - and the answer was no, it too is just a description. In practical terms this means very little for domestic software producers - since you can't run software without a computer, either you or your customer will be breaking the law if one of you does not license the patents, and knowingly selling software that needs patents licenses, without informing your customers about it will get you in bit trouble. Furthermore, even if you do inform your customers, you could have problems depending on the circumstance.

    As far as international trade, it has the effect that patent export laws do not apply to software. With a physical device if you build it here and ship it abroad you have to pay patent royalties, but if you send the plans abroad and produce and sell it there, then US patent laws don't apply. Since software is simply a description, as long as the computer (or embedded device) is produced abroad, and the software is installed abroad, you don't have to pay US patent royalties. Of course you do still have to pay patent royalties in the other country if they apply.

    Another area that it could have an impact in is open source drivers, especially firmware. You could argue that anyone that uses the software has paid for any required patent licenses when they bought the hardware in question. And since the court ruled that there is no difference between machine language and source code as far as patents go, they are no longer an excuse for providing binary only drivers. (Of course all the companies that are claiming "patent issues", are really probably trying to protect trade secrets).

    Now, while I support the weakening of software patents in general, by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows? If those copies are in in the US they still apply, but in say China, they wouldn't. Note that copyright still applies.
    1. Re:ScuttleMonkey knows not what he says. by ronanbear · · Score: 3, Interesting

      Had AT&T won this would have strengthened software patents and increased damages across the board. That's because companies sued in the US for a software patent infringement could have damages set based on their worldwide sales, many (even the majority) in areas where software patents aren't valid.

      It would be punishing companies for infringements that don't exist. If I use software in Ireland and the maker gets sued in the US they shouldn't be charged for patent violations that aren't violations here. If the software was legally sold here and didn't violate locally recognised patents then the maker didn't do anything wrong (except for directly exporting).

      In the long run this will be good for Linux. It also has implications for other judgements such as the EOLAS case, I think.

      --
      the more they over-think the plumbing the easier it is to stop up the pipe
    2. Re:ScuttleMonkey knows not what he says. by ASBands · · Score: 1

      What you're saying makes a lot of sense, but I'm a little confused as to how algorithms work. I've always thought that since algorithms were just a description of math, that they could not be patented. The problem becomes how one describes an algorithm. Starting with plain English, we might say "Iterate the list, comparing the current position to the next one. If the current is larger than the next, swap the data. Go through the same amount of times as you have data." It could be described in pseudo-code, Java, C++, FORTRAN, etc. At what point can I patent the ASBands Bubble Sort (if I wanted to)? What is the difference between description and implementation?

      --
      My UID is a prime number. Yeah, I planned that.
    3. Re:ScuttleMonkey knows not what he says. by pavon · · Score: 1

      At what point can I patent the ASBands Bubble Sort (if I wanted to)? You could get a patent for "a device that sorts by repeatedly swapping elements to bring the greatest to the beginning of the list", assuming there wasn't prior art and it met the requirements of originality.

      Here's another way of looking at it that is perhaps clearer. When you file a patent you genuinely are getting a patent on an idea (for a new device or process), but that patent doesn't give you complete control over the idea. In particular, you can not restrict the dissemination of the idea, but you can restrict the use of that idea (with some exemptions for educational and research purposes).

      What is the difference between description and implementation? So the point at which something becomes an implementation, would be the point at which it can be (or is) used. Software (in any form) cannot be used without a computer, and therefore it is not a device until combined with a machine capable of interpreting it. Alternately, if the algorithm is not being carried out by a machine but by people - as is the case of patents on business methods or manufacturing processes - then you start infringing upon the patent at the time you use those methods.
    4. Re:ScuttleMonkey knows not what he says. by onemorechip · · Score: 1
      Since software is simply a description, as long as the computer (or embedded device) is produced abroad, and the software is installed abroad, you don't have to pay US patent royalties.



      What about testing? If the software was tested in the US before it was shipped abroad to be installed, then it had to be installed on a machine in the US (well, not absolutely true; it could have been installed abroad and tested and debugged from a VNC client running domestically, but how likely is that unless somebody is specifically aiming for this particular loophole?). Does installing on a machine in the US for testing purposes constitute infringement?


      Of course, I have no idea how MS tested this software, so any conclusions drawn would be speculative.

      --
      But, I wanted socialized health insurance!
  20. Legal piracy in China? by atividia · · Score: 0

    Does this mean that if we buy one of those pirated disks from China, it's perfectly legal?

    Did Microsoft just shoot itself in the foot? Well I guess it doesn't matter when they actually prefer that you pirate from them.

    1. Re:Legal piracy in China? by ClosedSource · · Score: 1

      "Does this mean that if we buy one of those pirated disks from China, it's perfectly legal?"

      No. It means, for example, if you wrote code for Linux that violated a MS patent and that code was installed on computers only in countries where MS patents were not honored, MS couldn't sue you. As others have pointed out, this ruling has nothing to do with piracy since that's a copyright issue.

    2. Re:Legal piracy in China? by h2_plus_O · · Score: 1

      What you buy in China is subject to Chinese law. (not US law).

      If you then import one of those pirated chinese disks to the US, (where piracy is not legal and stuff) it wouldn't be legal. Odds are against the law being enforced either way, but if it is enforced either way, odds are you won't like it one bit.

      --
      If there's one thing I won't stand for, it's intolerance.
  21. Issue was "who's the manufacturer" by Ungrounded+Lightning · · Score: 3, Insightful

    Uh, in the digital world, if MS gets paid ...for the copy then they are the supplier.

    The issue is "who is the manufacturer" - Microsoft, or the guys who built the box and loaded the software onto it.

    The patents cover the final system. (That's because you can't patent the software itself, only the total system using the software.) The software is a component of the system, like a chip full of AND gates, a capacitor, or even a complex integrated circuit that was designed specifically to perform the patented functionality.

    If you look at the documentation that comes with your typical chip, you'll see a manufacturers disclaimer of patent liability. Essentially "If you use this chip to do something patented, getting a license from the patent holder, fighting his suit, or paying the judgement is your problem."

    Microsoft just wants to be in the same position as a chip manufacturer with respect to the computerized-device manufacturer who builds a final product that incorporates their software and somebody else's chips.

    The supreme court just said that Microsoft gets the same deal as Intel, AMD, Broadcom, etc.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  22. Stupid summary by cdrguru · · Score: 1

    OK, so Microsoft gets the court to agree that the infringment is not against US patents from a US manufacturer, but (for example) a Chinese manufacturer against (???) a Chinese patent. Thus requiring AT&T to file against the Chinese manufacturer in a Chinese court.

    Somewhat makes sense, but I would think it would be common sense that the "manufacturer" of a software product was the developer, not the facility where discs are copied. If it was this easy, we could get our product certified as being manufactured in Europe and avoid all those nasty import duties.

  23. One for the diplomats by rbanffy · · Score: 1

    If I got it correctly, AT&T may still try to enforce their patents under local law by suing the manufacturers. They also can sue them in the US because they are selling devices that infringe AT&T patents to the US.

    Again, if I got it correctly, local manufacturers can sue Microsoft for selling them goods without disclosing potential liabilities.

    This is one for the diplomats to untangle. Hope they enjoy it.

  24. Applicable to Purported Microsoft Patents in Linux by MITEgghead · · Score: 1

    It seems like this ruling directly applies (against Microsoft's favor) in the case of Microsoft's innuendos of patent infringement by Linux. From Microsoft's arguments in the case, object code and source code cannot be patented because it is not on a physical machine that performs the patented operations nor can it be directly installed on such a machine without going through an intermediate step (linking) in the foreign country. Thus, any open source project that provides the object or source code over the Internet but not the binary installer is completely shielded from any patent infringement claims by Microsoft because they are distributing non-installable data that doesn't constitute a patentable invention. I can't wait for Groklaw et al. to jump all over this fumble by Microsoft (as some are already discussing http://www.groklaw.net/article.php?story=200704301 21005424/). Seriously, besides saving some pocket change, can anyone understand what Microsoft was thinking here?

  25. Re:First Dup! by Adhemar · · Score: 1

    The Microsoft v. AT&T ruling got mentioned in the fifth paragraph of the article of the previous story and quite a bit of the Slashdot discussion was either about the Microsoft case or both patent cases, although they did get mixed up a few times.

  26. The SC is interpreting a very specific statute by Nosajjason · · Score: 4, Informative

    Let's clarify something. Section 271 of the Patent Act defines many different types of infringing acts. Section 271(a) defines infringement as the making, using, selling, or importing (the most common types of infringement). Section 271(f)(1) defines another type of infringing act, namely, exporting "components" of a patented invention.

    Section 271(f)(1) states:

    Whoever without authority supplies or causes to be supplied in or from the United States all or a substantial portion of the components of a patented invention, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the patent if such combination occurred within the United States, shall be liable as an infringer.

    Section 271(f)(1) was created to close a loophole in patent laws that allowed companies to manufacture the "patented invention" by manufacturing the components of the invention and then shipping the components overseas to be assembled and sold. Because the individual components did not infringe to the "patented invention," these companies were not infringers.

    Section 271(f)(1) was an attempt to close that loophole, and provides that infringement does occur when one "suppl[ies] ... from the United States," for "combination" abroad, a patented invention's "components."

    In Microsoft, the SC addressed Section 271(f)(1), and specifically the term "component." The Supreme Court held that "component" means "component," or a part of the whole which is combined to form the final product. The master disks exported by Microsoft were not "components" because the disks themselves where not combined with the "whole." Instead, the disks where used to make software, which then became part of the whole. The Supreme Court analogized the master disks to tools. Tools are used to make a "component" but they are not "components." Section 271(f)(1) only applies to "components" and not to tools for making components. Thus, Microsoft did not infringe (as defined by 271(f)(1)). The opinion is limited to section 271(f)(1), and likely will not affect "normal" infringing activities.

    1. Re:The SC is interpreting a very specific statute by sabre86 · · Score: 1

      Ah! Thanks, that was extremely informative. It now makes perfect sense. Sincerely, --sabre86

    2. Re:The SC is interpreting a very specific statute by poot_rootbeer · · Score: 1

      The master disks exported by Microsoft were not "components" because the disks themselves where not combined with the "whole."

      No, but (an exact copy of) the code contained on those disks is present in the final product, therefore the code could be considered a component of the system.

      Assuming that we believe software is a patentable invention, which I'm sure we don't all.

    3. Re:The SC is interpreting a very specific statute by Nosajjason · · Score: 1
      No, but (an exact copy of) the code contained on those disks is present in the final product, therefore the code could be considered a component of the system.

      Actually, AT&T made that exact same argument:

      AT&T urges that reading 271(f) to cover only those copies of software actually dispatched from the United States creates a "loophole" for software makers. Liability for infringing a United States patent could be avoided, as Microsoft's practice shows, by an easily arranged circumvention: Instead of making installation copies of software in the United States, the copies can be made abroad, swiftly and at small cost, by generating them from a master supplied from the United States.

      The SC, however, thought otherwise:

      Until it is expressed as a computer-readable "copy," e.g., on a CD-ROM, Windows software--indeed any software detached from an activating medium--remains uncombinable. It cannot be inserted into a CD-ROM drive or downloaded from the Internet; it cannot be installed or executed on a computer. Abstract software code is an idea without physical embodiment, and as such, it does not match 271(f)'s categorization: "components" amenable to "combination." Windows abstracted from a tangible copy no doubt is information--a detailed set of instructions--and thus might be compared to a blueprint (or anything containing design information, e.g., a schematic, template, or prototype). A blueprint may contain precise instructions for the construction and combination of the components of a patented device, but it is not itself a combinable component of that device.

      Remember, the SC is interpreting "component" very narrowly.

      "Component" is commonly defined as "a constituent part," "element," or "ingredient." Webster's Third New International Dictionary of the English Language 466 (1981).

      The full text of the SC's opinion is available at: http://www.law.cornell.edu/supct/html/05-1056.ZO.h tml

  27. Total miss by poster by bockelboy · · Score: 1

    Swing and a miss! The summary isn't even close to accurate.

    The case was this: AT&T and Microsoft had a patent dispute. Microsoft accepted the fact that it violated the patent in the US. Question: Does Microsoft owe AT&T damages for patent violations in the US *and* for products shipped outside the US? Or, must AT&T sue MS in those countries also? According to a 1984 law, if you manufacture patented parts for assembly outside the US, you violate the patents in the US.

    The court found: Shipping the master copy of Windows source code outside the US to be mastered abroad doesn't count as patent infringement.

    Why? You can't patent an algorithm! Notice that in software patents, you must reference a combination of a "method and a device", or some such language. You have to include something physical in the patent. You can't patent "voice recognition software", you must patent "voice recognition software running on a computer". From the AP article:

    "Ginsburg said that neither Windows software nor a computer standing alone without Windows installed infringes AT&T's patent."

    Only if MS was shipping both a computer *and* the software, were they shipping a patented part. So, AT&T's damages must be limited to domestic damages. In order to recover damages occurred in, say, France, AT&T must sue MS in France. US law doesn't cover MS's non-US activity, in this case. Kind of makes sense to me.

    As others have pointed out, the submitter stupidly mixed up copyrights and patents; pirates are usually sued for violating copyrights. I suppose if I'm a software pirate, and I get sued for patent infringement (for some really stupid reason), the damages awarded to the company would be limited to domestic damages I've done. Of course, they would get more money out of me more quickly if they limited themselves to the copyrights.

    So, take home message: If you sell software worldwide, any patent violations you get sued for in the US will most likely have their damages limited to the actions inside the US. For damages from selling abroad, the company which is suing you must file their lawsuit abroad.

  28. You just don't get it, do you? by Anonymous Coward · · Score: 0

    "by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows?"

    The ruling is that US patents don't apply, because the software on a particular machine is not exported from the US, But is a copy made in Asia. Therefore, one would assume local patent laws would apply, instead of US patent laws.

    Now that you understand this, the logic of the statement about piracy is absurd

  29. It's tough to know by necro81 · · Score: 1

    It's tough to know who to root for or against in this case: Microsoft vs. AT&T? Man, that's a hard choice! It's like a choice between Goliath and Goliath.

    1. Re:It's tough to know by Anonymous Coward · · Score: 0

      It's strange when you're forced to root for the lawyers...

  30. Re:Dupe by enharmonix · · Score: 1

    Different story Same court case, though. A lot of the details were missing from the last story, but technically it is the same. I knew about this already but realized it was the comments from slashdotters who bothered to dig a little deeper and not the actual article summary or even the linked story. So I suppose you could say it's a different /. story about the same case. Either way, this is excellent news - can't hurt to post it twice.
  31. Umm.... by Anonymous Coward · · Score: 0

    *** would that mean that MS's patents don't apply to those that use pirated copies of Windows? ***

    Umm, this wouldn't be patent infringement you tard, it would be piracy, a criminal offense. Patent infringement is a civil matter.

  32. Re:First Dup! by Adhemar · · Score: 2, Informative

    Just in case anyone is interested in the actual opinions:

    The Supreme Court opinion of Microsoft v. AT&T .

    For completeness: The previous story was (mainly) about KSR v. Teleflex , although it did mention Microsoft v. AT&T as well, in the fifth paragraph.

  33. Copies IN the US... by Raistlin77 · · Score: 1

    From the summary... Microsoft said it could not be considered a supplier since the copies, not the original software, were in the computers built abroad."

    Now, while I support the weakening of software patents in general, by this logic, would that mean that MS's patents don't apply to those that use pirated copies of Windows?


    By your interpretation of that logic, wouldn't it also mean that MS's patents don't apply to any copy of Windows on a PC in the US that was not installed from the "original software", which would basically mean EVERY copy of Windows, since it is highly unlikely that the master disk has been placed in EVERY PC ever sold in the US with Windows installed. And of course there are also system restorations to consider that were done with copies made from master disks as well (shipped with PCs or available by request/purchase).

  34. Microsoft doesn't actually sell the software by Fujisawa+Sensei · · Score: 1

    Remember Microsoft doesn't actually sell any software. All they sell is a license to use a give piece of software. I haven't read the EULA recently, but you probably don't even have to have a copy of the software in question to buy a license.

    --
    If someone is passing you on the right, you are an asshole for driving in the wrong lane.
  35. Ok, i can see how that worked...BUT... by hurfy · · Score: 1

    "Notice that in software patents, you must reference a combination of a "method and a device", or some such language"

    Then how were they found to be violating in the US?
    I didn't buy my computer from MS.

    1. Re:Ok, i can see how that worked...BUT... by bockelboy · · Score: 1

      My thoughts exactly - turns out that the section of the law governing what you do inside the United States is different from the one considered in this ruling.

      Note that MS still is liable for damages done within the US. They think this ruling would allow them to appeal the Eolas case and have to pay less money.

  36. Fix DMCA by Zork+the+Almighty · · Score: 1

    Now we just need the Supreme Court to fix the DMCA and we're all set. On a related note, check out my new tagline.

    --

    In Soviet America the banks rob you!
  37. Read what laywers are saying about these decisions by Infonaut · · Score: 4, Informative

    It might be more instructional than reading dozens of comments that start with, "I don't know a thing about law, but... ." It's like marketers talking about programming: "I don't know C# from sharp cheddar, but... ." Here are a few views from lawyers who know patent law:

    KSR v. Teleflex:

    Microsoft v. AT&T:

    --
    Read the EFF's Fair Use FAQ
  38. Thulsa Doom calls for you, heretic! by Anonymous Coward · · Score: 0

    "My child, you have come to me my son. For who now is your father if it is not me? I am the well spring, from which you flow. When I am gone, you will have never been. What would your world be, without me? My son."
                                                                                                                      -Thulsa Doom
     
    Get on your fucking faggot knees and pray for forgiveness from Thulsa Doom the Great! You deserve nothing but destruction but still you remain only by the mercy of Thulsa Doom.
     
    Repent for your fucking foolishness now, motherfucker, or Thulsa Doom will beat your faggot ass!
     
    THULSA DOOM!

  39. Preceidents? by mixonic · · Score: 1
    Check it:

    AT&T holds a patent on an apparatus for digitally encoding and compressing recorded speech. ... It bears emphisis, however, that uninstalled Windows software does not infringe AT&T's patent any more than a computer standing alone does; instead, the patent is infringed only when a computer is loaded with Windows and is thereby rendered capable of performing as the patented speech processor.
    Hot, that means I can write white-room version of an MP3 encoder and distribute it lawfully, I simply cannot install it and use it. (It's an example, ignore the foreign patent implications of MP3 and the DMCA reverse-eng possibilities.)

    On page 3 the court reiterates a precedent from Deepsouth Packing Co. v. Laitram Corp that states it is "not an infringement to make or use a patented product outside of the United States". Nice. Amazon can't go after peeps outside the US over patents (well, duh, but still, good to say it again). On page 5 the court goes over a law Congress made in response to that stopping exports of multiple pieces with no other use than to create an infringing whole. Still nice for US extraterritorials.

    Seems the decision and Stevens's dissent focus on whether software is analogous to blueprints or components, hinging on the language of Deepsouth.

    -mix
  40. sounds about right by pbjones · · Score: 1

    Unlike copyright, patents are only valid in the country that they are registered in. This would apply to MS patents also. They have copyright over the software which is almost global, but any patent would only apply is the countries in which the patent is registered. There may be agreements between countries, but if I patent something in Australia only, it could be built and used in the USA without asking me, but it could not be sold back into Australia.

    --
    There was an unknown error in the submission.
  41. Would Hardware be Considered Also? by LifesABeach · · Score: 1

    I cannot help but if the same argument used by Microsoft against AT&T, could also be applied to the "Microsoft Tax"?

  42. -1 Troll by r_jensen11 · · Score: 1

    Let's see, we have here a company who the US Government broke up some few decades ago because it was a monopoly, which has hence re-merged to form the same monopoly in the Red Corner. In the Blue Corner, we have a company who the US Government has been calling a monopoly for over 10 years and has (with albeit pathetic means) attempted to break up said monopoly into several other companies. It's like Terminator 1 vs Terminator 2, but only Terminator 2 won this time....

  43. You missed the right analogy. by raehl · · Score: 1

    I live in the US. I design a widget. I ship the design plans for the widget to China. A factory in China manufactures the widgets.

    Where did the manufacturing occur?

    Even better analogy:

    You design a widget. You patent the widget. I read the patent, copy it, send it to China, and have widgets manufactured. Where does the manufacturing occur?

    *WRITING* software isn't manufacture, it's design.

    1. Re:You missed the right analogy. by nine-times · · Score: 1

      *WRITING* software isn't manufacture, it's design.

      Copying software to a CD isn't really "manufacture" either. The problem with your analogy is that, really, software does not undergo "manufacturing". It's designed, written, debugged, patched, and finally copied.

      If the patents involved burning CDs or making boxes for software, then those patents would be used in the process of pressing and boxing CDs. If that process took place in China, then you'd have a point. However, if the patent involves the software itself, then all the pieces of that patented process are "assembled" when the software is written.

      If writing software to disk is legally considered "manufacturing", then this is an instance of the law failing to keep pace with the times. These days, copying information is too trivial a matter to carry any weight. In a serious metaphysical way, the game has changed, but a lot of governments and businesses haven't figured it out yet. If IP laws can be circumvented as simply as having the copying process take place in other countries, then something is wrong-- where the copying takes place is arbitrary and meaningless. If IP laws rightfully should be circumvented as simply as having the copying process take place in other countries, then that should be a real indication that those IP laws need revision.

  44. From the court's decistions by CrkHead · · Score: 1

    I have been working through the decisions rendered and what I've found most striking is the phrase "What <patent> taught us..." This is the court back to saying that the purpose of patents is to share knowlege while repecting original invention. I like the language being used.

  45. Didn't MS just blow their argument? by countach · · Score: 2, Insightful

    I thought MS's big argument against Linux was that MS would stand behind their product and its intellectual status.

    Now they're telling me that if I use Windows in China, AT&T can come sue me because MS won't back up their product? So why not just go with Linux to begin with?

  46. Re:FST PST by HermMunster · · Score: 1

    So that means that SAMBA isn't in violation of any patents relating to Windows protocols as long as the distributions are created outside the US. Granted any patent owned by anyone as long as it is created for copy or production outside the US. Sounds like Microsoft lost more than it gained. I'd say it was a rather stupid move on their part and the ramifications are not fully known yet. But ALAS they'll claim this applies to others and not to them.

    --
    You can lead a man with reason but you can't make him think.
  47. The folly of IP by rkinch · · Score: 1

    This is just one more absurd result you get when you postulate abstract information as "property". If reductio ad absurdum is probative, then the whole edifice of IP law has more holes and dead ends than an ant's nest.

  48. Tangled Web by ProfessorJWN · · Score: 1

    Oh what a tangled web we weave! This sounds great. Does this mean that you could simply create a "gold disk" of windows (ok, Brass or Zinc would sound better for windows, but the technical term is "gold"), export to Asia and have 100,000,000 copies burned? I don't think that is what the big "M" had in mind, but think about it. You could copy something someone patented in USA (i.e. a software CD, send the plates to stamp the CD over to Asia, then have at it. What do you suppose that would cost? A dollar a piece?? If all you have to do is provide for "foreign assembly", just about anything copied be ripped off. BTW - when does Microsoft have to hand over "Selected" windows code to the EU? probably just the screen saver and mine sweeper. That ought to be interesting, and if they do, and if people download here in USA (for information use only), is that illegal?? hmmmmmm, makes you wonder. I'd like to see how much "yo ho ho" (pirated) code is in windows, wouldn't you. I still claim that windows has code from digital Equip,ment Corporation (DEC) which is now owned by HP (via compaq acquisition). how ironic would that be, the Innovation Company being found to be the pirates we know them to be.

  49. Re:Applicable to Purported Microsoft Patents in Li by syntaxglitch · · Score: 1

    Seriously, besides saving some pocket change, can anyone understand what Microsoft was thinking here?

    Probably something like "Hey, we won! Yay!". As slashdotters typically like to point out, patents probably neither encourage nor enable innovation in software, and benefit big companies only defensively through a MAD-type strategy. This applies fully to MS, especially since they seem to have no difficulty maintaining their dominant position through non-patent means. Strengthening software patents would hurt MS overall, because it only serves to open them up to patent trolls and lawsuits from smaller "innovative" companies that come up with something 95% obvious, patent it, and sue MS for coming up with the idea.

    The FUD over patents on Linux is largely just that, FUD, and this ruling won't substantially impact their ability to make up nonsense. It's all lies, hollow threats, and insinuation anyways. MS has more to lose from the possibility of patent warfare than they do from even modest success of Linux.

  50. No. by paladinwannabe2 · · Score: 1

    Most of the world doesn't have software patents. Thus, AT&T can only sue you for violating their patent if they are in a country that respect software patents in the first place.

    --
    You are reading a copy of my copyrighted post.