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Microsoft/Novell Deal Could Create Two-Tier Linux Market

Posted by Zonk on Tue Nov 07, 2006 11:38 AM
from the now-which-hat-will-they-wear dept.
Rob writes writes to mention a Computer Business Review article about the recent Microsoft/Novell Linux deal. Article author Matthew Aslet warns that while some may see the announcement as a step forward, it may ultimately be very divisive for the Linux community. From the article: "Microsoft made it clear that only SUSE users and developers, as well as unsalaried Linux developers, are protected. 'Let me be clear about one thing, we don't license our intellectual property to Linux because of the way Linux licensing GPL framework works, that's not really a possibility,' said Microsoft chief executive, Steve Ballmer. 'Novell is actually just a proxy for its customers, and it's only for its customers,' he added. 'This does not apply to any forms of Linux other than Novell's SUSE Linux. And if people want to have peace and interoperability, they'll look at Novell's SUSE Linux. If they make other choices, they have all of the compliance and intellectual property issues that are associated with that.'"
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[+] Ballmer Says Linux "Infringes Our Intellectual Property" 820 comments
Stony Stevenson writes "In comments confirming the open-source community's suspicions, Microsoft CEO Steve Ballmer Thursday declared his belief that the Linux operating system infringes on Microsoft's intellectual property." From the ComputerWorld article: "In a question-and-answer session after his keynote speech at the Professional Association for SQL Server (PASS) conference in Seattle, Ballmer said Microsoft was motivated to sign a deal with SUSE Linux distributor Novell earlier this month because Linux 'uses our intellectual property' and Microsoft wanted to 'get the appropriate economic return for our shareholders from our innovation.'" His exact wording is available at the Seattle Intelligencer, which has a transcript of the interview. Groklaw had an article up Wednesday giving some perspective on the Novell/Microsoft deal. Guess we'll have something to talk about in 2007, huh?
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  • by Harmonious Botch (921977) * on Tuesday November 07 2006, @11:40AM (#16751891) Homepage Journal
    Bill: I'm worried, Steve. We're losing more ground to Linux. It's on the verge of becoming a non-nerd OS.

    Steve: I've got an idea. Let's buy another version of Linux.

    Bill: Are you crazy? The SCO gambit didn't fool anybody.

    Steve: No, not like that. Instead of trying to fool a judge, we'll try to fool our customers.

    Bill: So? That's already company policy.

    Steve: Yes, but we'll release our own version. We tell the public that we're joining the Linux bandwagon, and with our marketing clout, it will soon become the dominant version on the market. Then when the public is convinced that MSLinux IS Linux, we make gradual changes to turn it into an unusable bloated wreck. Linux will be finished!

    Bill: No way! Remember, Steve, I used to write software. No self-respecting programmer would deliberately wreck an OS. Where are we going to get a bunch of programmers to do that?

    Steve: We have all the guys who wrote Vista. I think they could do it.
  • by csoto (220540) on Tuesday November 07 2006, @11:42AM (#16751917)
    Novell just bent over and let Stevie "embrace and extend." Rather than usurp Red Hat, this is going to make Microsoft-connected SuSE Linux software coda non grata in the OSS community.

    • From T.F. summary: "If they make other choices, they have all of the compliance and intellectual property issues that are associated with that."

      Rarely have I ever seen such perfect examples of FUD. This has it all; it's an unspoken threat, dropped only in order to create feelings of uncertainty in the marketplace.

      I had thought for a while that Microsoft was just ignoring Linux, but now it seems they're opening up a new front, one where they're going to engage in overt psychological warfare in order to discourage adoption of competing products.

      In a sick way, you have to appreciate watching Microsoft work. It's not as though this hasn't happened a dozen times before, just in the IT market, and yet it still always seems to do the trick. At a certain point, you either have to laugh or cry. I haven't decided which way to go yet.
    • by gstoddart (321705) on Tuesday November 07 2006, @11:59AM (#16752181) Homepage
      Novell just bent over and let Stevie "embrace and extend." Rather than usurp Red Hat, this is going to make Microsoft-connected SuSE Linux software coda non grata in the OSS community.

      They're not worried about the OSS community. Not even a little.

      This is about making the perception among customers that the only way to have a Linux which is free from being sued by Microsoft for IP violations is to go with Novell/Suse. They hope to make the rest of the Linux offerings 'poisoned' for businesses to use with the veiled threat that all other versions of Linux are potentially tainted.

      Really, who didn't see this coming on the day they announced it?

      Cheers
        • better/faster than any other company in the world

          Can they really be said to be "better" or "faster" when they actively discourage other people with potentially superior products from competing with them based on technical merits?

          Seems to me that almost every area where Microsoft is dominant and not faced with external competition has stagnated. Look at what happened to the browser between the demise of Navigator and the rise of Firefox: basically nothing (well, except viruses and trojans; it was a great time to be a malware writer).

          They are a huge brake on what ought to be an accelerating, ever-changing industry. The outcome that Microsoft would really like -- one platform, under EULA, with per-seat licensing and DRM for all, Amen -- would be nothing less than a dark age for information technology.

          Microsoft only looks like a good thing when it's compared to nothing at all; if you compare it to what might exist in the absence of such a distorting influence, they've caused nothing but harm.

          Microsoft didn't 'bring computers to business;' businesses would have bought computers in the absence of Microsoft; the advantages are just too great to be ignored. What Microsoft did, was effectively eliminate any choice that businesses might have had in the OS and software they wanted to buy and run, in order to be inter-operable. They injected themselves into computing and ended up in a place where they could become one of the "costs of doing business," applicable to everyone, everywhere. You aren't just paying the Microsoft Tax when you buy a new PC, you're paying it all the time, everywhere, because everyone uses their stuff. You're paying for it in the cost of your food, your electronics, your entertainment, and even your taxes, because not even our government can live without MS.

          Microsoft is a plague, a parasite, that has so thoroughly infested the business world that it's basically impossible to remove. But just because it's too close to our vital bits to get rid of it now, shouldn't prohibit us from considering the nature of the infection and realizing that there could have been -- indeed, was -- a multitude of other ways that things could have gone.

          Microsoft didn't "push technology all over the globe," people in all corners of the globe pulled that technology to themselves; they bought and paid for it because of the benefits it offered, despite the necessity of paying for Microsoft software in order to get anything done. Microsoft didn't create those markets, or those benefits; they would have existed anyway, because the technology really is that good. It's not good because of Microsoft -- MS didn't invent email, or CRM systems, or word processing, or spreadsheets -- and there's little that Microsoft offers that wouldn't be offered by somebody else in their stead. (Even the 'lingua franca' that Microsoft provides to the world could be easily replaced by a variety of open standards, because such a standard would be mutually beneficial in the absence of a standard piece of software.) It's good despite Microsoft.

  • Bad move by Novell (Score:4, Interesting)

    by ISoldMyLowIdOnEbay (802697) on Tuesday November 07 2006, @11:43AM (#16751921)
    Agreeing to licence "IP" from Microsoft just gives legitimacy to any claims they are going to pursue against other Linux vendors/developers. It sets a bad precedent, even if those claims are likely to be bogus. It is obvious MS are thinking this way, otherwise why would they pay Novell rather than the other way round?

    Not sure what Novell are thinking of here. Surprised IBM hasn't had something to say...
    • by advocate_one (662832) on Tuesday November 07 2006, @11:47AM (#16751975)
      Not sure what Novell are thinking of here. Surprised IBM hasn't had something to say...

      give them time, they're busy reviving a fresh batch of lawyers from cold storage, then they've got to work out precisely who to let them loose on, Novell and/or Microsoft

    • by Znork (31774) on Tuesday November 07 2006, @12:32PM (#16752733)
      "Not sure what Novell are thinking of here."

      I doubt Novell were thinking at all. As far as any GPLed code is concerned, the agreement is worse than worthless; if Novell thinks they're distributing GPL code that needs extra rights granted, then they must forward those extra rights to any and all recipients, or they cannot distribute the code at all.
  • Dang. (Score:4, Interesting)

    by LWATCDR (28044) on Tuesday November 07 2006, @11:47AM (#16751971) Homepage Journal
    I really liked OpenSuse. Oh well I guess Ubuntu isn't a bad choice.
  • by BeBoxer (14448) on Tuesday November 07 2006, @11:49AM (#16752025)
    I think experience shows us what happens to companies foolish enough to partner with Microsoft. Oh well. It's been nice knowing you Novell.
      • by 0xABADC0DA (867955) on Tuesday November 07 2006, @12:54PM (#16753119)
        Because *if* there are Microsoft's patents then unless Novell can extend usage rights for free to all, not just their "users", then they are in violation of the GPL. Clearly they won't be able to do this as that would effectively indemnify all Linux distros (since you could "patch" SuSE to be Fedora Core for instance). So you see that the other distro's are held in check by threats of lawsuits from Microsoft over patents and SuSe is held in check by lawsuits over copyright from GNU and/or Microsoft subsidiaries that get their GPL code included in the distro (parties with copyright to sue over).

        The best response from the community is to boycott SuSE in every way as a distro. The best response from GNU and other rights holders is to immediately sue Novell over violation of GPL license (but this may require showing that there *are* patented code in Linux that SuSE aren't extending rights to use it).
  • by rcw-work (30090) on Tuesday November 07 2006, @11:51AM (#16752051)

    If they make other choices, they have all of the compliance and intellectual property issues that are associated with that.

    Dear Microsoft,

    How will my baby mulching machine [wikiquote.org] be able to legally interoperate with your software?

    This is very important to me and my colleagues, and I would appreciate it if you would address our concerns.

  • by Doc Ruby (173196) on Tuesday November 07 2006, @11:55AM (#16752103) Homepage Journal
    Microsoft has all kinds of SW patents in its portfolio. MS will sue all the other distros than Novell's for patent infringement, driving everyone to SuSE. Then it will pull the plug on Novell, exactly the way it did on NetWare, when MS folded all NetWare's features into Windows NT.

    The only defense is RedHat and IBM, and possibly other corps with money to fight MS attacking their Linux distros their future OS strategies all depend upon. Maybe Oracle is bought in to Linux enough that it too will defend a Linux version. RedHat is new and bubbly enough that I'm not surprised they're vulnerable to this attack, and maybe Oracle could tell that, too. But IBM should have known that its defense from SCO, which was a defense against Microsoft's proxy, was too close an alliance with Novell. I'm surprised IBM didn't protect themselves from this Microsoft attack through Novell. But then, MS has always made all its biggest victories by attacking IBM's blind spots.

    The other defense is anarchy. Tens of thousands of Linux developers, and tens of millions of users, all across the world, just ignoring MS patent attacks on their distros. If that works, it could also undermine the very patent weapon Microsoft and others wield to destroy SW progress. If they bit off more than they can chew, MS could very well be doing us all a big favor, by destroying itself and patent regime in which it makes its crooked living.
  • FUD (Score:4, Informative)

    by Stalyn (662) on Tuesday November 07 2006, @11:55AM (#16752113) Homepage Journal
    As much as I like to bash Microsoft, this whole "Microsoft is the next SCO" is bullshit. The only possible patent infringement going on is in the Microsoft compatibility stack of Mono. This is seperate from the Mono CLI and compiler which is under the Ecma. And also different than the Linux stack which includes Gtk#.

    Microsoft is basically saying "If you want to run your ASP.NET app with open source software then Novell is your only choice". Microsoft is not saying "Novell Linux is the only safe Linux distro from Microsoft lawsuits" because Linux is inherently safe as long as you don't run Microsoft's crappy .NET software on it.
      • Re:FUD (Score:4, Interesting)

        by Stalyn (662) on Tuesday November 07 2006, @12:30PM (#16752707) Homepage Journal
        Mr. Ballmer is talking specifically to shareholders who think this Novell deal is going to lead to Microsoft releasing portions of their intellectual property to OSS. Which means to the average MS shareholder, "Oh I better sell my stocks".

        Of course to the average Slashdotter, who doesn't RTFA or does any research, this means Microsoft is going to start suing other Linux companies that aren't blessed by Microsoft. But again how can Microsoft sue over patents when they don't own any in regards to the Linux kernel or Linux development stack. Even Wine is safe from Microsoft. It's just some portions of Mono which deal with .NET and Windows.Forms. Perhaps some other technologies as well that have to do with Microsoft Office.

        And honestly trusting press releases for good information is a waste of time. Doesn't Bush send out PR every day saying how good things are going in Iraq?
         
  • An interesting quote (Score:5, Interesting)

    by lucychili (987345) on Tuesday November 07 2006, @11:56AM (#16752127) Homepage
    [A]n indiscriminate creation of exclusive privileges tends rather to obstruct
    than to stimulate invention. It creates a class of speculative schemers who
    make it their business to watch the advancing wave of improvement, and
    gather its foam in the form of patented monopolies, which enable them to
    lay a heavy tax upon the industry of the country, without contributing
    anything to the real advancement of the arts. It embarrasses the honest
    pursuit of business with fears and apprehensions of concealed liens and
    unknown liabilities to lawsuits and vexatious accountings for profits made
    in good faith. Atlantic Works v. Brady, 107 U.S. 192, 200 (1882) (Bradley, J.).
  • Violating GPL (Score:5, Informative)

    by pavera (320634) on Tuesday November 07 2006, @11:58AM (#16752163) Journal
    This statement clearly violates paragraph 7 of the GPL. Novell is no longer able to legally distribute linux because they cannot give royalty free copies to everyone.
  • Licensing (Score:5, Insightful)

    by jamienk (62492) on Tuesday November 07 2006, @12:00PM (#16752199)
    So what, exactly is Novell licensing from MS? If Novel declares that they only have the right to distribute certain GPL'ed code because of a license that they've bought, then, under the terms of the GPL, they cannot distribute that code at all.

    MS and Novel know this, and that's why they don't call what they've done "licensing." Instead, as they've said, they have carefully taken the GPL into account when they made this deal (in order to work around it), and called their deal a "promise not to sue" or some such.

    If MS DOES successfully sue another distributor or coder over GPL'ed code, then Novell's deal with MS would not give them any EXTRA ability to continue to distribute that code.

    So what have MS and Novell done? They have created the illusion that Novell has licensed MS patents and that other Linux distributions do not have this license. The truth is:

    * No court has ruled that MS holds patents on any GPL'ed code

    * MS has not claimed that any specific GPL'ed code violates MS's patents

    * If MS DID bring a patent suit against a prominent Free software project or it's proxy, it would be resolved:

          - Many big projects would fight in court (Red Hat, FSF, IBM), and MS would lose

          - MS would come under attack by other companies that have interest in GPL'ed software and that have large patent portfolios -- MS would back down

          - If MS did win a suit (or if the legal battle was too much), the code would be replaced quickly

    Question: how does the BSD'ed code (or Apache licensed, etc) fare in the above context?
  • I wonder... (Score:5, Interesting)

    by petrus4 (213815) on Tuesday November 07 2006, @12:04PM (#16752261) Homepage Journal
    Although I'm not an expert on RICO, I find myself wondering if Microsoft aren't tiptoeing within reach of potential racketeering charges, here.

    If Microsoft are planning on threatening people with suits for using their IP, they're going to have to make damn sure that said people *are* using their IP first. If they threaten a company, the company calls their bluff, and it comes out in the courtroom that said company isn't actually infringing on their patents, an astute judge might then ask some rather awkward questions.

    Methinks Ballmer needs to be very, very careful. An approach of, "Nice distribution you have there. Would be a shame to see anything happen to it," could seriously legally backfire.
  • by HighOrbit (631451) * on Tuesday November 07 2006, @12:04PM (#16752265)
    "Let me be clear about one thing, we don't license our intellectual property to Linux because of the way Linux licensing GPL framework works, that's not really a possibility," said Microsoft chief executive, Steve Ballmer.
    "Novell is actually just a proxy for its customers, and it's only for its customers," he added. "This does not apply to any forms of Linux other than Novell's SUSE Linux. And if people want to have peace and interoperability, they'll look at Novell's SUSE Linux. If they make other choices, they have all of the compliance and intellectual property issues that are associated with that."

    IANAL, but I think these are empty threats and here is why:
    1. Mutually Assured Destruction, or rather, IBM and its relationship to Linux and Unix. IBM has a stake in Linux and will defend its own interests. Also, Linux mostly implements Unix. Almost any challange to Linux will also be a challange to Unix. IBM (and Sun for that matter) is not about to let that happen.
    2. Again, IANAL, but I would think this would be a case of "estoppel". Linux is a hodgepodge. It is a bunch of contributed "pieces-parts" from other people. Novell/MS can not benefit from contributed software and simutaneously oppose it for everyone else. Nor can Novell equitably get away with knowingly contributing to Open Source and then say "gotcha".

    Looking for the silver-lining, I hope this will lead to an officially blessed MS smb/ad client that will reveal some of the inner workings that continously stump Samba.
  • This is from a year ago, but it's even more relevant today:
    Microsoft made it abundantly clear that they would use their patent portfolio to prevent the spread of GPL software. Section seven of the GPL (the implicit patent grant of the license) now looks like the most prescient writing Richard Stallman has ever done. If you're not familiar with it I'd suggest you read it and understand why using the GPL to protect your Free Software is so important.
    http://samba.org/samba/news/articles/low_point/col umn11.html [samba.org]
  • Sound and Fury (Score:4, Insightful)

    by Tony (765) on Tuesday November 07 2006, @12:43PM (#16752937) Homepage Journal
    This is all a bunch of sound and fury, signifying Vista.

    Seriously.

    When XP rolled out a few years ago, a bunch of businesses used Linux to leverage better deals on corporate licenses for XP and MS-Office. Microsoft probably "lost" hundreds of millions (meaning they didn't make hundreds of millions more) this way.

    Now that Linux is much more mature, some of those threats to migrate to Linux might actually turn out to be real. Wouldn't *that* suck for Microsoft. But even if they didn't, customers would use Linux like they did last time.

    Many companies might delay rollout of Vista simply to take a "wait-and-see" approach, to see if anyone else is moving to Linux. It's not a big threat, but it is a threat. Microsoft needs Vista to not look like a flop out of the gate. This is a big launch for them, and they need it to look good, to drive early sales. Yes, they have the market locked up, but it's better to get everyone's money *now*, and not later, especially for their stock price.

    Anyway. To me, that seems the most reasonable explanation, what with the timing of this. The important thing isn't that Linux is in trouble (which it is not); the important thing is that there is the *appearance* that Linux is in trouble.
        • by jacksonj04 (800021) <nick@tn-uk.net> on Tuesday November 07 2006, @03:38PM (#16755621) Homepage
          I'm sure the EU have a committee working on it already. After all, the EU directive on cucumbers (Yes, it really does exist: EU Commission Directive 1677/88) runs to 7 pages and more words than the vast majority of significant documents (US Constitution, Magna Carta, Geneva Convention, Treaty of Versailles etc).

          Amongst other things, it states that any cucumber with a curvature of more than 10mm per 10cm length cannot be sold as a Class 1 product. Microsoft must have broken something in one of the more obscure directives.