Firm Foundation Technology, LLC's Small Business Update
for Monday June 21st, 2004
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Headlines
All Legal MumboJumbo Issue
- The World vs Microsoft
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Welcome to Part Two of the All Legal Mumbo-Jumbo Issue! As you may recall, last week we took a look at SCO and its seemingly compulsive habit of suing anyone who has anything whatsoever to do with Linux. This week we will examine the flip side of the coin, a company under near-constant legal attack . . .
- The World vs Microsoft
While SCO has gone out looking for trouble, trouble just shows up at Microsoft's doorstep. MS has never been noted for its "nice guy" image, and the cutthroat nature of its competitive tactics has come back to haunt it again and again. Lets look at Microsoft's legal dance card as it stands today:
European Union vs Microsoft
Similar to the well-known DoJ vs Microsoft case of 1999, the EU has been investigating whether MS was a bad guy in how it bundled software and excluded competitors. The EU has found MS guilty and has asked for a fine of $612 million plus other remedies. The appeals could take years. Given that the EU could have fined them three billion dollars, MS is getting off easy on the money side.
RealNetworks vs Microsoft
RealNetworks is going after Microsoft, claiming that MS is using all the usual tactics to force Real's software out and force people to use Microsoft's Media Player. While I don't doubt that MS has been playing rough, in this case Im not certain that Real is suffering as much as they allege. Unlike the rough stuff MS did to Netscape in the 1990's where Netscape was bleeding money, Real is growing and only losing a little bit of money after you take out the cost of litigation.
Eolas Technologies vs Microsoft
Eolas Technologies sued last year over patent infringement related to Internet Explorer. The award was only $521 million, but if the case is upheld Microsoft will mostly likely be forced to change Internet Explorer, causing a lot of upheaval on the Web. The case is on appeal and the Eolas patent is being reviewed by the Patent Office.
Public Patent Foundation vs Microsoft
Speaking of the Patent Office, the Public Patent Foundation (PUBPAT) has asked for a review of one of the patents key to the "FAT file system". The FAT system is the way older versions of Windows and DOS kept hard disks and floppy disks organized. These days the focus is on memory cards like those used in PDAs and digital cameras. MS has announced that they are planning to start charging royalties on users of the FAT technology.
This would mean that either everyone would need to agree on a new way to organize memory cards or that the cost of those cards would go up. PUBPAT has gotten the agreement of the USPTO to reexamine the patent. Who knows where this one will end up?
Just in case you think it's all bad news, here are some of the lawsuits MS has settled on recently:
- Minnesota Class Action Lawsuit
- InterTrust Technologies vs. Microsoft
- Sun Microsystems Inc. vs. Microsoft
- Tennessee Class Action Lawsuit
- North Dakota Class Action Lawsuit
- South Dakota Class Action Lawsuit
- North Carolina Class Action Lawsuits
- District of Columbia Class Action Lawsuits
- Kansas Class Action Lawsuits
The Small Business Impact
Microsoft will probably always be in conflict with someone simply because of its position in the computer industry. Depending on your business the outcomes of some lawsuits are potentially much more important to you than others. The Eolas Technologies case, for example, could have a big impact on web design and development firms.
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See you next week
Stan
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