Software patents — the sordid reality (contd.)

Owen Barder’s Blog pointed me towards an instructive post in Groklaw. It concerns the pressure Microsoft allegedly applied to Denmark’s Prime Minister in order to soften his government’s opposition to the European Commission’s Directive on software patents. Groklaw runs this translation of an article in a Danish newspaper.

The founder of the world’s largest software company, Bill Gates, is now ready to shut down Navision in Denmark and move around 800 developers behind Denmark’s biggest software success to the US.

The Microsoft leader made that clear, when he meet with Prime Minister Anders Fogh Rasmussen, Economic and Business Minister Bendt Bendtsen and Science Minister Helge Sander in November.

The threat risks being executed if part of the IT business manages to block the disputed EU directive on patenting software, that Microsoft wants so dearly, but time and time again has been postponed thanks to efficient lobbying by anti-patent opposition.

“If I am to keep my development center in Denmark, I must have clarity on the rights issue. Otherwise I will move to the US, where I can protect my rights,” said Gates according to to Microsoft Chief Attorney Marianne Wier, who also attended the meeting with Anders Fogh Rasmussen.

If this is true, the results were mixed. On the one hand, the Danes did back off; on the other, staff in Microsoft’s Danish operation started to panic over the future (or otherwise) of their jobs. This prompted an emergency email to all staff from a senior Microsoft executive which (according to a leaked copy) reads:

Dear all,

  You may have seen the front page article in Børsen today with the headline: Gates threatens to move Navision. The article outlines how the current EU disagreement over software patent protection endangers our development centre here in Vedbæk. Let me be very clear about this:  

Microsoft has absolutely no plans to move the centre.

We are completely committed to Vedbæk and its current location.  

The journalist has linked Microsoft’s known and outspoken attitude towards patent protection with some internal disagreements in EU regarding this software patent.  

Microsoft is very much in favour of software patent protection – we believe this is the only way to ensure innovation and development of state-of-the-art software. Bill Gates has spoken of this numerous times in different situations. And yes, he has also made our opinion very clear to the Danish government. Let there be no doubt that Microsoft believes patent protection is necessary in order to protect our innovative work. We will continue to argue in favour of this but it is not the only aspect which we consider when investing in R&D.  

If patents were the only thing determining where we locate our development sites then we would probably not have a site in China or in India.  

I just wanted to briefly reassure you – you have absolutely nothing to worry about in terms of Vedbæk’s future. We are in dialogue with the journalist whom we hope to be able to present a more nuanced picture of the situation.

Don’t you just love the word “nuanced’! Note the clue that the boys in Redmond regard the Indians and the Chinese as a bunch of no-good pirates. And isn’t it interesting to learn that Microsoft intends to break the habits of a corporate lifetime and take up “innovation”?

Software patents — the reality

The New Zealand Herald

If you wondered how Bill Gates topped the Forbes rich list for the 11th year with a personal fortune of US$46.5 billion ($63 billion), look no further than the New Zealand Intellectual Property Office.

Patent 525484, accepted by the office and now open for objections until the end of May, says Microsoft invented and owns the process whereby a word-processing document stored in a single XML file may be manipulated by applications that understand XML.

It is one of a raft of patent applications Microsoft has dumped on the overworked staff of the office, and on patent offices worldwide.

Intel: abusive monopolists — us?

From Good Morning, SiliconValley

It’s been almost a year since Japan’s Fair Trade Commission raided Intel’s offices in Tokyo looking for evidence that the company illegally pressured computer-makers to use its microchips. Now, it seems the katana has finally fallen. Over the weekend, the commission, which enforces the country’s Anti-Monopoly Law, ruled that Intel’s Japanese subsidiary stifled competition by offering rebates and discounts to five Japanese PC makers on condition that they agreed either not to buy or to limit their purchases of chips made by rivals AMD and Transmeta. “In this case, a company with a dominant market position squeezed out rivals by doing business with the five major PC makers on condition of not using competitors’ chips,” a JFTC official told reporters. Intel, for its part, says it did nothing of the sort, although that is difficult to believe when the combined Japan market share of AMD and Transmeta dropped from 24 percent to 11 percent during the period in question, while Intel’s rose from 76 percent to 89 percent. In any event, the company has 10 days to decide whether to appeal the order, and if it does, the case would go through the commission’s judicial review process.