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Microsoft now all about cooperation? Yes, thanks to patents

Posted by Scott_Ruecker on · 4 comments
ars tecnica; By Nate Anderson
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Far from being the evil monopolist, Microsoft has in many ways become the cooperative giant—and it's all thanks to intellectual property. The company's IP czar takes us inside the corporate transformation in a new book, Burning the Ships, to show us how it happened (and to take a few potshots at Richard Stallman).

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Comments (4)

All they want is to charge license fees for shonky patents, who'd a thought....
This effectively leaves upstarts in a lurch since, like the article states, they don't have a large patent portfolio they can leverage to cross-license. Instead, they gotta pay up!
Pull quotes from the article:
Quoting:He also calls IP "the single greatest wealth-creating asset of the modern corporation."


The word "wealth" is the giveaway. "Wealth" means on-the-books value like a stock portfolio or a real estate holding, before you sell it. I believe that's the modern sense of the word.

Quoting:Everyone else was welcome to partner with the new Microsoft, but Phelps quickly learned that many companies were wary of doing so. A big part of the reason was the "non-assertion of patents" clause that Bill Gates had dreamed up in 1993 and inserted into just about every Windows contract.


Wow! There's your de facto patent pool. The existence of a patent pool explains the long term lack of innovation. A recent research paper (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1308997) looks at historical evidence, and finds that innovation in the field of sewing machines ceased while a patent pool was in effect. Very nice for MSFT and all its hangers-on in the Windows Ecosystem, not so good for the rest of us.

Beware of patent pools, and other de facto devices to create oligopolies.
I take it ta meant nice for Microsoft, not that Microsoft was somehow being nice. Microsoft is always nice... to Microsoft's bottom line and nothing else.

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