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Free Software Sets the Computing Agenda

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July 19, 2006

This article was contributed by Glyn Moody

The news that the European Commission is to fine Microsoft - €280.5 million has naturally provoked plenty of headlines, both in the technical and non-technical press. But big as that number might seem, it is in truth a gnat-bite as far as the Microsoft behemoth is concerned: last year its net income was $12 billion, and it holds cash and short-term investments worth over $39 billion. Against this background, the EU's fine is a little more than an accountancy rounding error.

What is interesting about the whole affair is that the sticking point seems to be an apparently minor requirement to provide technical information that would allow third parties to interoperate better with networks running Microsoft Windows. But as a press release from the Free Software Foundation Europe rightly points out, this obstinacy is not over some general principle, whatever Microsoft might claim, but is actually highly specific, and has one aim above all: to thwart Samba's rise in the enterprise.

Thus Microsoft's brinkmanship with the European Commission is driven almost entirely by its need to react to free software. It turns out that this is by no means the only sphere where Microsoft has ceased to be master of its own destiny, and finds itself constantly responding to open source initiatives, and playing catch-up with free software projects.

A good example is to be found in the world of high-performance computing (HPC). GNU/Linux was first used for computing clusters back in 1994, when the Beowulf project began. Since then, free software has established itself as the pre-eminent HPC solution. In June 2006, the TOP500 listing of the most powerful supercomputers in the world showed that well over 70% of them ran some variant of GNU/Linux; precisely two systems out of 500 used some form of Windows. The same month, Microsoft finally launched its official HPC solution, the Windows Computer Cluster Server 2003 – fully 12 years after the first free software solution was made available for this sector.

While the crushing lead that free software has over Windows in the HPC area is little known outside specialist circles, most people in computing are familiar with the fact that the Apache Web server has maintained a commanding lead over Microsoft's Internet Information Server (IIS) for the past few years.

Microsoft, too, is obviously acutely aware of this, and recently has been making sustained efforts to reduce the embarrassingly large lead Apache holds, and with some success. For example, the Netcraft survey for June 2006 showed that Microsoft IIS gained 4.5 million Web servers, while Apache lost 429,000, giving Microsoft a whopping 4.25% gain for the month, and cutting the gap between them to 31.5%, a drop of 16.7% in just three months. Closer examination reveals exactly why this is happening. As Netcraft's analysis explains:

Apache's loss of hostnames is due to decreases for Linux at a number of hosting companies. In addition to Go Daddy [which moved over 1.6 million hostnames from Apache to IIS], six hosts reduced their use of Linux by 40K or more, including leading UK provider PIPEX Communications, Lycos and Zipa.

This is unlikely to be coincidence. After a year of steady market share, the graph for IIS has been rising sharply since March 2006, which suggests a concerted effort by Microsoft to court hosting companies in order to swing them away from Apache on GNU/Linux towards IIS running on Windows. Once again, then, this shows Microsoft being forced to react to free software's successes. Despite these efforts, the market still seems to be moving away from Microsoft: the Netcraft survey for July 2006 shows a gain of 1.8% for Apache, mostly made of up incremental gains at a dozen hosting companies.

Perhaps the best-known example of Microsoft being compelled to revise its strategy thanks to free software is in the world of Web browsers. Development work on Microsoft's browser had effectively came to a halt after the release of Internet Explorer 6 in August 2001. Microsoft's refusal to provide any significant updates to IE 6, despite its mounting security problems, was one of the prime reasons why the Firefox project was started. Firefox's steady rise in popularity, and the corresponding drop in Internet Explorer's market share, eventually compelled Bill Gates to announce a reversal of Microsoft's previous decision not to produce a standalone browser before Vista appeared.

With betas available of both IE 7 and Firefox 2.0, the emerging consensus seems to be that Microsoft has largely caught up with the free software world as far as browser technology is concerned, but the price that it has paid for its lengthy refusal to satisfy the needs of users is a serious loss of market share. Latest figures from OneStat.com show that Firefox holds some 15.8% of the browser market in the US, and a massive 39% in Germany.

Even though the appearance of IE 7 is likely to staunch the flow of users away from IE to Firefox, the latter has established itself as a serious rival, one that Microsoft will need to track continually to prevent more of its users defecting. In itself, this is not a huge problem for Microsoft. The appearance of Firefox has essentially made Microsoft more responsive to users, and more amenable to following open standards. It does not, though, imply any loss of revenues.

The situation for office suites is quite different. Microsoft Office is one of the main cash cows for the whole company: any loss of market share here will have serious financial repercussions. This makes Microsoft's decision to sponsor a project to create tools to build "a technical bridge" between the Microsoft Office Open XML Formats and the OpenDocument Format all the more surprising, since potentially it could lead to a costly leak of Office users to other office suites supporting ODF.

It shows once more the world's leading software company being forced to backtrack in response to developments in the open source world. Microsoft's position initially was that no one was using ODF, and so there was no point supporting it. But the announcements by Massachusetts and, particularly, the Belgian and Danish governments in favor of ODF - with administrations in France, Germany and elsewhere considering the move - meant that Microsoft was forced to cede to the growing pressure for some kind of ODF support in Office. The fact that Google has joined the ODF Alliance - whose members now number 260 - and will be supporting the ODF standard with its online word processor Writely means that Microsoft's scope for independent action is even more circumscribed.

Taken on their own, each of these instances of Microsoft emulating or accommodating free software might seem fairly minor. Put together, they represent a consistent pattern of loss of control that is unprecedented in the company's recent history. From being on the fringes, ignored or at best derided by traditional software companies, open source has gradually moved to the centre, to the point where today it is free software - and not Microsoft - that is setting the agenda for computing at practically every level.

Glyn Moody writes about open source at opendotdotdot.


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The most delicious part

Posted Jul 20, 2006 4:23 UTC (Thu) by felixfix (subscriber, #242) [Link]

I especially appreciate that Microsoft is only making all these moves under duress. Their heart is only in it enough to give the appearance of doing something. There is no doubt tremendous pressure to not only not waste resources on markets they thought they had sewn up, but to avoid the appearance of playing catchup or bestowing any semblance of legitimancy on the opposition. They will continue to be their own worst enemy as they have before.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 9:27 UTC (Thu) by rwmj (subscriber, #5474) [Link]

I've actually used IE7, and I can tell you that the popular view that they are now supporting CSS is NOT correct. In fact it renders some of our (correctly formed) websites worse than IE6.

Rich.

HPC computing

Posted Jul 20, 2006 9:46 UTC (Thu) by vblum (guest, #1151) [Link]

Linux has a strong lead in HPC for now, but it's good to remember that this need not always be so.

One of the reasons for that lead is that there is essentially no other cheap customizable offering out there that includes all sorts of small modern desktop conveniences on the side. For instance, a modern shell is simply nice. Likewise, a modern browser can be really handy while trying to figure out some strange setup issue on the console. Yes indeed. Sometimes you need the information in a small cramped room while plugging cables back and forth. Linux fills that need, affordably.

However, administration can still be a headache ... ever tried to set up a queuing system that fulfills the needs of every single user, for instance? ... and if Microsoft comes out with a compelling not-too-expensive solution in that space, administration, a good number of people might yet choose their well-known environment (yes, Windows on the Desktop) over a perceived customizability for which they lack the time. In places where administrators, rather than users, have the power, that is a serious threat. This is not how it should be ... but the lure of convenience should not be underestimated.

HPC computing

Posted Jul 20, 2006 10:11 UTC (Thu) by drag (guest, #31333) [Link]

I don't know.. I never done any real HPC stuff, just played around it at home.

If I can setup a Linux cluster then it can't be that difficult.

Also I've been told that for clustering projects especially, and HPC in general, that the best thing a operating system can do is simply get out of the way. The less impact the OS has the better.. You just need something to manage I/O (ie, fast drivers for the interconnects), setup the disks, initialize the hardware, bring up the node, and the rest is all managed at that application level with whatever custom thing they've setup.

Not that I know a lot about it personally.

As I understand it it's mostly fortran with some MPI libraries that people use for beowolf stuff. With Linux this is very easy. I expect a administration can probably setup a little ramdisk with everything you need on it to setup a node and load it over a network in a blink.

I couldn't imagine having to do that with something like Windows 2003. Just strip it down to a kernel and a few bare utilities and libraries... Is that even possible? I would have to devote a half a gig of ram and have a disk drive just to run the OS.

I know that Microsoft just getting into HPC is a bit of a farce. They've been working with institutions for years to get Windows-based clusters into the Top500 for many years now.. And they've consistantly been able to do it. The first time that I aware of was with a NT-based cluster in 1999. They've had various W2k machines in the Top500. Pretty much every top500 ranking since 2002 or so has had a Windows cluster in it. I haven't seen more then a specific university or two build them and those are specificly working with Microsoft for Windows cluster projects. Building clusters to prove that they can build clusters. Or so it seems to me at least.

HPC computing

Posted Jul 20, 2006 14:36 UTC (Thu) by jschrod (subscriber, #1646) [Link]

HPC means not only to run FORTRAN / MPI programs, but also to run applications like LS-DYNA (car crash simulation), NASTRAN (wind tunnel simulation), and others. It also means support of proprietary/modern/fast interconnect technologies like Myrinet or Infiniband. (My company does consulting in this area.)

While Windows is very bad in this area, Linux is better, but not really good either. I have seen several Linux HPC cluster projects in the automotive industry that got abandoned, at different companies, because the admins there were not able to get the stuff in a stable state. And these were admins with several years of experience managing HPC clusters. (Mostly AIX or other Unices like HP-UX or Solaris.) I know of other Linux clusters that were well publicized in the press, but that did not fulfill their promise during production, mostly due to problems with stability and throughput.

While you can easily get a small system to work at home, a real Linux cluster with a few hundred or even a few thousand nodes, _fast_ Interconnect technology (i.e., *not* GB-Ethernet), and good SAN access (EMC powerpath in Linux, anyone?) that runs stable over an extended period in time is hard to get by. And stability is demanded by our customers, when the design of a new car depends on modelling jobs being computed over night, every night.

Cheers, Joachim

HPC computing

Posted Aug 10, 2006 23:04 UTC (Thu) by csamuel (✭ supporter ✭, #2624) [Link]

Often that's the case of people selecting (or being forced to select) the
wrong configuration for the codes they want to run. For instance you're
not going to get very far with NASTRAN or Gaussian running RHEL with ext3
on a box with just 2 drives, they're IO hogs and need a fast filesystem.

LS-DYNA on the other hand is pretty well behaved, as long as you remember
to not use it in SMP mode on an SMP box and stick to the MPP (MPI)
version in all cases.. :-)

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 10:10 UTC (Thu) by ortalo (guest, #4654) [Link]

What's that good old motto? Ah, yes:
"First they ingore you, then they laugh at you, then they fight you, and then... you win."
Nice to see we are entering the last step.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 10:15 UTC (Thu) by ortalo (guest, #4654) [Link]

One question (and potentiel follow-up for your article): what about other big software players? Oracle and SGBD, IBM and AIX servers or big-iron mainframes?

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 10:53 UTC (Thu) by jonbayer (guest, #36490) [Link]

Heh,

Funny story, I work in the webhosting industry and microsoft has been quite agressively trying to gain a foothold, going so far as to pay for dedicated servers for more than a few webhosting providers.

Of course windows is terrible enough with shared hosting I think they have a long road ahead of them, but the matter of fact is the average webhosting customer can't write HTML ; much less tell what OS their server is running.

Fortunately for linux right now IIS is absolutely terrible and has all sorts of ridiculous bugs that are a pain in the ass to deal with, however microsoft is making progress. If they ever reach a stage of not being horrible to deal with, you may see a lot of hosting providers go with windows by default.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 12:05 UTC (Thu) by jpmcc (guest, #2452) [Link]

Microsoft Office is one of the main cash cows for the whole company: any loss of market share here will have serious financial repercussions.

This is where the story becomes really interesting. OpenOffice.org is more than good enough for the average MS-Office user, and since version 2 it's sufficiently compatible to make migration easy. So Microsoft suddenly finds itself having to try and differentiate itself in the marketplace, and put open-source equivalents into catch-up mode. The launch of MS-Office 2007 is postponed while the developers are instructed to 'make it look different'.

However, the more 'different' MS-Office 2007 appears, the more MS risks upsetting its current user base, 80% of whom only use 20% of the current functionality anyway. Driving product development based on the needs of shareholders rather than the needs of customers is a very risky strategy indeed.

Microsoft has made substantial marketing blunders in the past, but as a monopolist it was able to recover. With open-source competitors in play, one mistake could lose it business permanently.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 14:44 UTC (Thu) by tjc (guest, #137) [Link]

So Microsoft suddenly finds itself having to try and differentiate itself in the marketplace, and put open-source equivalents into catch-up mode.
Yes, and in a competitive market there is no way that they can retain their current market share. Even the best run company in the world, with the best products, functioning in an oligopolistic market condition, would have a hard time retaining 50 percent of the market, much less 90 percent.

At some point it's all down hill for Microsoft. I shall enjoy watching that even more than the SCO debacle.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 14:44 UTC (Thu) by hein.zelle (guest, #33324) [Link]

Don't get me wrong, I would like nothing better than OpenOffice indeed being just as good as MS Office. Maybe it even is, for most users. Remains the problem (for me at least) that by copying all the features of MS Office, OOO has also copied several of the nasty ones, and probably some that could be called "bugs" as well. In daily practice working in an office environment where a lot of MS documents (text, spreadsheets and presentations) are thrown at me, there are far too many times when I run into trouble trying to view or edit these documents using OOO. If that were the only problem it wouldn't be too bad, but OOO annoys me about just as much as MS Office does when writing new documents. Too many things just don't work consistently - for example managing page / paragraph styles in text documents or spreadsheets, or dealing with automatic numbering or images.

Those and many more are my personal peeves with OOO, but I see a lot of people that have similar problems. Given the current basic layout, design and workflow of MS and OO office suites, I wouldn't be too sure that Microsoft's switch to a different look or workflow is something bad. It may cause grief with existing customers, but they may also actually achieve a significant improvement in their software by letting go of the past a bit.

I would be much more interested in seeing OOO move towards a higher level of usability than towards a higher market share.

Best word processor needs to be... Perfect!

Posted Jul 20, 2006 17:41 UTC (Thu) by amazingblair (guest, #2789) [Link]

hein.zelle,
You say OpenOffice is copying MSWord in bad things as well as good, and they should go for "a higher level of usability [rather] than towards a higher market share". I agree. Perhaps they should be looking at a better model: WordPerfect.

WordPerfect X3 remains the superior commercial word processor. It handles most everything better than MSWord, and even knows how to - shock! - correctly print "page x of y" in your headers, a problem that has baffled Microsoft for years.

If WordPerfect adopts the ODF as one of its document saving options, then it will be compatible with OpenOffice. (OpenOffice ignored WordPerfect's format, so I've had to use RTF - Rich Text Format - to exchange docs between my Mandriva Linux laptop and my WinXP desktop.)

Occasionally they've made noises about releasing a Linux version of WordPerfect again. WordPerfect for Linux using the Open Document Format would be my heaven!

-Amazing Blair

Best word processor needs to be... Perfect!

Posted Aug 10, 2006 23:06 UTC (Thu) by csamuel (✭ supporter ✭, #2624) [Link]

I guess the issue there is that these days most users say "ugh, it's not
Office, I'm not using that"...

About the anti-trust case

Posted Jul 20, 2006 15:11 UTC (Thu) by coriordan (guest, #7544) [Link]

First, thanks for this good article.

I think the EC anti-trust case against MS is more important than most people realise. It's something I ignored for a long time because I thought it was an MS bashing exercise, but it's not. For the free software community, it's about helping Samba.

The fines are sustainable by MS, but the negative aura associated with being guilty of anti-trust abuse is an on-going problem for MS, and every good result in the EU provides a precedent for other countries and economic regions.

The lawyer representing FSFE has given more info on this in an interview on Groklaw, and in his sub-presentation at FSFE's recent GPLv3 conference (video and audio recordings are there, but the site is briefly offline for some maintenance).

Microsoft's biggest problem...

Posted Jul 20, 2006 18:50 UTC (Thu) by cventers (guest, #31465) [Link]

...is that they've built such a huge monopoly that depends on all pieces
working together. Now that the lack of alternative solutions is gone / on
its way out (which you measure by considering how well the potential
alternatives would function in a vacuum), you'll start to see tiny cracks
and pebbles falling off the Microsoft mansion.

And with each grain of stone that falls to the ground, the structural
integrity of the Microsoft mansion is reduced. Eventually you reach a
tipping point...

ODF is a huge deal, because beyond just giving free software opportunity
for a powerful footing in office suites, it lets the other vendors that
had previously been beaten into submission by the Microsoft monopoly have
a chance to compete once again. Office competition would be my biggest
fear if I ran Microsoft, because once your Microsoft Office monopoly
fails, and competing software that interoperates well starts to build and
install on Linux, you just lost a huge chunk of the reason that the
modern commercial enterprise runs their desktops on Windows.

And you can bet that Novell will be waiting there, ready to pry their way
in just as soon as it is so possible.

Sure, the GNU/Linux desktop has its own problems. But as each day passes,
ours are more and more just technical. And if there's one thing free
software people know how to do, it's technical work.

In short, this is the beginning of the end for Microsoft (at least as we
currently know it). I'll think back to this day and giggle when Microsoft
is forced to alter strategy and support the GNU/Linux platform itself.

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 19:44 UTC (Thu) by christophe (guest, #1557) [Link]

  But big as that number might seem, it is in truth a gnat-bite as far as the Microsoft behemoth is concerned: last year its net income was $12 billion, and it holds cash and short-term investments worth over $39 billion. Against this background, the EU's fine is a little more than an accountancy rounding error.

The fine is not a big concern for Microsoft but what about the penalty payments of €3 million per day? Can Microsoft pay €3 million per day forever? How much Microsoft earns per day from its European business?

Free Software Sets the Computing Agenda

Posted Jul 20, 2006 19:58 UTC (Thu) by felixfix (subscriber, #242) [Link]

Well, 3 * 365 is roughly 1000, so it comes to about 1000 million euros a year, or 1/12 of their profit. They can afford it, but (a) it's a big chunk, and I doubt they really want to, and (b) I think the commission would get tired of just receiving the payments and eventually stiffen the punishment, raising the fine and/or adding something worse.

Microsoft's only sin here...

Posted Jul 20, 2006 21:03 UTC (Thu) by kmw (guest, #38039) [Link]

...is its refusal to stand up for its right to offer its products as it
wants to.

As the eminent 20th-century Russian-American philosopher Ayn Rand proved,
no majority is entitled to trample on the rights of the individual,
whether through outright brutishness or under the guise of "democratic
government".

And before you all scream, "Microsoft isn't a person, it's a company!",
let me ask you this: Who owns companies? Who runs them? Who works for
them?

I suggest you all read http://www.capmag.com/article.asp?ID=4730

"Microsoft isn't a person, it's a company!"

Posted Jul 21, 2006 6:19 UTC (Fri) by xoddam (subscriber, #2322) [Link]

> Microsoft's only sin

No-one is accusing a company of a sin; the concept is a nonsense.
Companies are mechanisms for profit, they don't exist in any moral
sphere. They do exist in a *legal* sphere. For instance, Microsoft
exists in a legal environment where individuals' right to make copies
is severely restricted by the power of the state.

> Who owns companies? Who runs them? Who works for them?

The state provides a mechanism whereby individuals may collectively
engage in enterprise for profit and be shielded from individual
responsibility for the debts and crimes of the company. Corporations are
established under and protected by the law. If a corporation breaks the
law, sanctions apply against the collective and to its legal officers who
have voluntarily taken this responsibility, not to random individual
shareholders and employees as you seem to imply.

Protections afforded to people and companies by the state are things like
monopolies on copyrights and patents. Without rigorous state enforcement
of the copyright law (with such sanctions as fines for companies and
imprisonment for individuals), Microsoft would be worthless. It is only
fair that Microsoft should also pay a penalty for its violation of legal
orders.

> no majority is entitled to trample on the rights of the individual

While we could debate all day the niceties of whether the state has a
right to enforce its laws or to exist at all, or whether it represents a
majority or merely a ruling class, that's utterly irrelevant to companies
and courts which take the legal framework as an *axiom*.

Individuals are forced to play by the rules all the time. The degree to
which force is applied to lawbreaking individuals by the state is usually
in inverse proportion to personal wealth. The same applies to
corporations, so it's nice to see the law being applied with such a heavy
hand against such a big company, for a change.

Whether the fine will ever actually be paid is a separate issue.

(There's a much more subtle question, as to the validity of antitrust
laws, which the article you link to mentions but which doesn't seem to be
part of your own argument. The essence of antitrust is that the state
arrogates the right to collect taxes to itself: private interests aren't
entitled to impose their own taxes. So here's a better question: should
Microsoft have the 'right' to impose the Microsoft Tax?)

"Microsoft isn't a person, it's a company!"

Posted Jul 21, 2006 15:39 UTC (Fri) by kmw (guest, #38039) [Link]

Your argument rests on the false assumption that intellectual property,
copyrights, trademarks, and patents are mere legal constructs.

They are not.

They are objective moral principles--rights inherent to all creations
which individuals are obligated to obey whether they are enshrined in law
or not. No entity should be required to waive certain of its rights in
order to prevent other rights from being trampled upon.

Furthermore, rights are not something that can be "granted" or "revoked",
as you seem to imply. When talking about rights, the proper question is
NEVER "Should X have right Y?" but rather "DOES X have right Y?". The
existence of rights is due not to government fiat, but rather to the mere
fact of the agent's existence.

Furthermore, your characterization of the supposedly inflated end-user
prices caused by Microsoft's OEM agreements as a "tax" is fallacious on
two levels. First, selling prices are metaphysically independent from
costs of production. Prices are determined by utility, supply, and
demand--period. If hardware with Microsoft products installed does indeed
tend to have a higher selling price than equivalent hardware without, that
is better explained by the increased utility and demand for the products
rather than the additional costs incurred by the OEM.

Second, your understanding of what a "tax" is is completely wrong. A tax
is collected at gunpoint, whether you wish to deal with the collecting
organization or not. If you refuse to deal with the government, it
threatens to take from you what you already have. If you refuse to deal
with Microsoft, all it can do is refuse to provide you with a benefit you
do not yet have.

Your assertion that Microsoft does not exist in a moral sphere is also
absurd. EVERY action has a moral component--and, as the eminent
20th-century Russian-American philosopher Ayn Rand proved, the honest and
noncoercive pursuit of private profit is one of, if not the, most virtuous
act one can engage in. Money is inherently a moral issue; read Francisco
d'Anconia's "Money Speech" in Atlas Shrugged for a better understanding.

Finally, obedience to the law is not a virtue in its own sake. There is
never any moral obligation to obey an illegitimate law--and one is morally
obligated to abide by the dictates of a legitimate law even if it is not
enshrined as such. The difference between the two is based solely on
substance, not on how they got on the books--just as the difference
between a legitimate and illegitimate government is based on what it does,
not how it got into power. An usurper who completely respects the
individual rights of everyone is infinitely more legitimate than a
tyrant--or even a Bush or Clinton--who received 99% of the vote in a free,
open election.

Certainly, the state may be able to get away with enforcing illegitimate
laws--but that does not make it right.

"Microsoft isn't a person, it's a company!"

Posted Jul 21, 2006 16:28 UTC (Fri) by zlynx (guest, #2285) [Link]

Copyright and other intellectual property may be a moral right, in that we believe people have a right to profit from the work they do.

However, the precise amount of profit and the limits of control certainly are mere legal constructs. These are specifics that everyone disagrees with but can usually compromise on.

For example, an artist may have a moral right to profit from a song she has written. However, does she have that right for 25 years or life? What are the limits to what she can charge? Does she have any right to control the uses of her song once she sells a copy?

These specifics are not moral rights.

Copyrights, trademarks and patents have a basis in a moral right to benefit from our own work but the specifics are mere legal constructs. Therefore, xoddam makes no false assumptions.

"Microsoft isn't a person, it's a company!"

Posted Jul 21, 2006 21:15 UTC (Fri) by giraffedata (guest, #1954) [Link]

Copyright and other intellectual property may be a moral right, in that we believe people have a right to profit from the work they do.

However, the precise amount of profit and the limits of control certainly are mere legal constructs.

Furthermore, the moral aspect of copyrights and patents are almost never what we're talking about when we speak of copyrights and patents. We're nearly always talking about the laws. Those laws were written with no consideration of a person's moral right to his creations, but rather with a pragmatic social engineering goal. Copyright laws create legal rights out of thin air, with no pretense that they're founded on moral rights.

"Microsoft isn't a person, it's a company!"

Posted Jul 21, 2006 22:05 UTC (Fri) by giraffedata (guest, #1954) [Link]

As a corporation lawyer, I have to take this opportunity to tighten up some of the terminology.

A company is a group of people working together. Often, what they're working on is a business, and they're employees of someone.

A corporation is a legal construct that helps us write and enforce laws that involve large groups of people. The kind of corporation most people think of when they hear the term is a business corporation, in which case the large group of people are investors in a business. (Other kinds of corporations include charities and governments).

In the case of a business such as Microsoft, "company" refers to the employees, not the investors.

A company is not a legal entity. You can't sue one or make a contract with one. It isn't property; you can't legally buy or sell a company. (When we loosely refer to buying a company, we either mean buying the assets of the company or buying the corporation that operates the company).

The way a corporation works is that the law treats it in many ways like a person, separate from the persons who are actually members of it. That way, millions of words of laws that have been developed to apply to a single businessman can be instantly adapted to apply to a group of a thousand investors as well.

This, I believe, leads non-lawyers to think of the corporation as an actual person separate from the investors -- one who has emotions and personality, conscience and survival instinct. That's a mistake. Fining the Microsoft corporation means fining Microsoft shareholders; that's all. Each shareholder becomes poorer, and it's to recoup riches that reached that shareholder illicitly and to punish him for hiring directors and giving them money with which to do evil.

Thanks

Posted Jul 24, 2006 2:24 UTC (Mon) by xoddam (subscriber, #2322) [Link]

This clarification is much appreciated. I was aware of non-corporate
uses of the term 'company', but not of its definition.

> (When we loosely refer to buying a company, we either mean buying the
> assets of the company or buying the corporation that operates the
> company)

If the company is simply the group of people who work together, wouldn't
it be clearer to say that we mean either to buy the assets the company
works with or to buy the corporation which *employs* the company? Or is
'operating' a group of people legitimate (and more general) legalese?

Thanks

Posted Jul 24, 2006 3:31 UTC (Mon) by giraffedata (guest, #1954) [Link]

I oversimplified the definition of company a little. It isn't exactly the collection of people -- it's the enterprise they're engaging in. The group of workers is the essence of it, but a (business) company is definitely said to have assets -- the things the employer owns that the workers use to do their thing.

But the important thing is that there is no crisp legal definition of company because it isn't a legal entity -- not like for example a partnership. That's why lawyers get so much money for closing deals to sell a company -- it takes a lot of work to figure out just what is getting sold.

And many are the small claims complaints I've seen get rejected because the defendant is named as "Joe's Garage." You can't sue somebody's garage. You have to sue Joe.

It seems to me that the word "business" is replacing "company" in legal discussions, and it may be because people are not as fundamental to a business as they once were.

I'll throw in one more tidbit: A company often has a name, one that is registered with the government, and that still doesn't make it a legal entity. Such a name is known in law as a "fictitious business name," and is nothing more than an alias for the person (or equivalent) who operates the company. On legal papers, it would say, "Acme Wastewater Treatment Inc. doing business as Woodland Spring Mineral Waters."

"Microsoft isn't a person, it's a company!"

Posted Jul 22, 2006 2:51 UTC (Sat) by irwinr (guest, #39286) [Link]

--snip---
"Your argument rests on the false assumption that intellectual property,
copyrights, trademarks, and patents are mere legal constructs.

They are not.

They are objective moral principles--rights inherent to all creations
which individuals are obligated to obey whether they are enshrined in law
or not."
--snip---

Oh yeah? Prove it. If the law didn't force people to obey a certain way, they would not. If there were no law, and someone was holding a gun at your head because you pissed them off, and you said "You are obligated to spare my life because it is my right to live..." They would laugh at you and say "Says who?"

Rights ARE granted, and they are granted because the majority believes they should be 'rights' and thus a government is established to protect those rights. A 'Right' is a human idea. What is, or is not a 'right' can not be proven by any kind of experiment. You only have the rights you have because society deems it so and elects government officials who agree.

--snip---
"Furthermore, your characterization of the supposedly inflated end-user
prices caused by Microsoft's OEM agreements as a "tax" is fallacious on
two levels. First, selling prices are metaphysically independent from
costs of production. Prices are determined by utility, supply, and
demand--period."
--snip---

Take an economics class. In a monopolistic environment, the rules for supply and demand are bent in such a way that demand is not as elastic, and therefore the monopolist can charge much more without greatly decreasing demand for it's products. Why? Because users have no choice, they buy from the monopolist or they do without significant and important technological innovations. (In this case, computers in general)

In this case, Microsoft was handed a monoply by IBM. Microsoft did not earn it's 90% market share by having the best product, it got there by being in the right place, at the right time. That, in and of itself, was not illegal. However, Microsoft abused their monopolistic position. They used illegal tactics to prevent competitors from being able to enter the market, and in economies that are based on a free market, such as in the US and the EU, this is ILLEGAL for good reasons.

The Microsoft "tax" was indeed a tax. Why? Because if you didn't pay it, not only did you not receive Windows, but you were denied the ability to use your computer at all. Alternative software for other operating systems didn't exist (And in some cases still doesn't) because Windows held a 95% market share. Microsoft adopted the practice of not only making it's products completely incompatible with anyone elses, they also hid the details of these incompatibilities, and forced you to agree not to try to reverse engineer them or face civil and/or criminal charges.

Essentially, this would be like a car manufacturer creating a new type of hitch, and telling people they can't look at how the hitch is made, and no-one is allowed to create a 'bridge' that allows other hitches to connect to it. This type of behavior would be considered absurd in any other industry, but Microsoft got away with it for years. It has severely hurt technological innovation in this area, as other operating systems with more and better features, are unable to get the neccessary user support and funding neccessary to continue innovating, because they can't run software or even open files that were created using Microsoft products. These activities in and of themselves are not that bad, because there's nothing wrong with Microsoft wanting to keep secret it's own technologies. However, taken in the big picture, it just adds to the big list of Microsoft bully tactics.

Microsoft used a catch-22 to hold it's monopolistic position:

Make sure no competing products can be compatible with Microsoft products.
This ensures that nearly all (Over 95%) of computer users were 'locked in' to a Microsoft product in way or another.

Make sure that no major OEM distributor can sell a competing product, or even bundle competing products along with Microsoft products.

It is literally impossible for any company to introduce a product to compete with this, because Microsofy even ensured that 3rd party programs that ran on Windows could ONLY run on Windows. So even if I invented a great new OS, it wouldn't run ANY of the existing software on the market. So why would anyone buy it? And because no-one will buy it and use it, none of the developers of those 3rd party programs will spend the massive amount of development it would take to essentially re-write their programs to run on this alternative OS.

Microsoft also forced OEM's to sell Windows on ALL their computers. It would not sell Windows to an OEM at all unless they agreed to this. And because there were few alternative products, none of which could run the software that users were demanding (Because Microsoft made sure that software could only run on Windows). OEM's were faced with a choice: Sell ONLY Windows, or go out of business.

Microsoft took many technologies that it did not own, (Java as an example), modified the format of the technology, rebranded it as it's own and bundled it with Windows in order to completely stomp out the company that created the technology. Lukcily, with Java, their contractual obligations with Sun explicitly prohibited this, and they got sued and were forced to stop. Do you feel Microsoft was wronged here too?

--snip---
"Your assertion that Microsoft does not exist in a moral sphere is also
absurd. EVERY action has a moral component--and, as the eminent
20th-century Russian-American philosopher Ayn Rand proved, the honest and
noncoercive pursuit of private profit is one of, if not the, most virtuous
act one can engage in. Money is inherently a moral issue; read Francisco
d'Anconia's "Money Speech" in Atlas Shrugged for a better understanding."
--snip---

First of all, just because someone wrote it in a book, does not mean it was 'proven'. Secondly, Microsoft's monopolistic practices put hundreds of businesses out of business. I guess according to your philosopher, those private profits were not as important as Microsoft's? What about the users who get the shaft when they're paying for a product that should be 1/3 the price they charge? What about society as a whole when technological innovation slows to a crawl because once you have a monopoly, and you literally control the market, you have no incentive to innovate. I guess everyone else is screwed because Microsoft should be allowed to own and control each and every one of us? What about everyone ELSE's rights here?

--snip---
"Finally, obedience to the law is not a virtue in its own sake. There is
never any moral obligation to obey an illegitimate law--and one is morally
obligated to abide by the dictates of a legitimate law even if it is not
enshrined as such."
--snip---

I don't think I have ever read anything so short sighted, or just plain dumb. Who determines if a law is illegitimate? Tell me? I'm listening... Everyone has different morals. If someone decides it's 'moral' to kill someone for no reason, does that make it alright? I'm sorry, but you can not just 'decide' a law is legitimate or not, and then decide to obey or not to obey it. No-one can say a law is legitimate or not, and it be fact. That statement will always be an opinion, regardless of who says it or why. You can not prove or disprove the legitimacy of a law without using other laws as a reference. Society decides whether laws are legitimate or not by who they elect to public office. And even then, it's not 'proven' or 'fact', it's a consensus by the people of that society that the law should be how it is.

There are people in other countries that will say that you should not have the right to free speech, or that you should not have the right to earn a private profit, or the right to choose ones own religion. What makes them wrong and you right? We only have those 'rights' because humans fought and died for them, and because humans established a government to protect them. People like you disgust me, because you think that you have your rights just because you exist, or because some philosopher says so. If you feel that way, move to North Korea, or Iran, and let me know what they think about your obligation to your rights.

In this case, Microsoft broke the laws defined by society, knowing full well it was doing so. It is now paying the price for those actions. If you think that's wrong, too bad. Get a new set of legislatures elected... Otherwise you and Microsoft can take yourselves and go somewhere where these laws don't apply to you.

-Jeremy

"Microsoft isn't a person, it's a company!"

Posted Jul 22, 2006 7:11 UTC (Sat) by h2 (guest, #27965) [Link]

There's no point in trying to argue with someone who thinks ayn rand is a 'preemininent philosopher'. Author of mediocre novels, yes.

MS Exchange - MAPI

Posted Jul 22, 2006 14:27 UTC (Sat) by addw (guest, #1771) [Link]

One huge nail in the MS corporate strategy would be if/when the MAPI protocol is fully described. MAPI is how MS Outlook talks to MS Exchange, in spite of several attempts there is not an open source product that implements this.

MS Exchange through it's groupware functions (booking of meetings, etc) often glues large companies together. Since the functionality is part ef exchange there is no way of replacing the mail server with something better (eg: exim/postfix with cyrus or dovecot) as the groupware would be lost. The result is a lock-in to MS Exchange & Outlook, this means the MS Active Directory needs to be used server side and to run Outlook you need a MS Windows desktop.

If we could speak 'MAPI' then:

* we could implement FLOSS servers and desktop users would (need to) know, I know many sites that would love to dump MS Exchange.

* we could have FLOSS desktops working alongside MS Windows desktops, this crack could then be widened on a desktop by desktop basis while guaranteeing that no one would be cut off from the corporate diary.

---

There are a few proprietary products that implement MAPI (Bynari & HP/Samsung OpenView) - nothing free.

The exchange of email is easy, IMAP provides a good way of doing it. When many talk of email they also mean groupware, to be able to break the stranglehold would be a big win for FLOSS on the desktop.


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