CCIA Responds to Microsoft's Saber Rattling on Patents

File Under: News, 2007, Copyright

May 14, 2007

CCIA President and CEO Ed Black today expressed grave concern about authoritative statements from a Microsoft official that Linux and other key open source software programs violate Microsoft patents. Microsoft made the statements in interviews with Fortune Magazine.

“Microsoft’s assertion that developers of open source software like Linux and OpenOffice owe royalties for use of ‘its’ technologies is very troubling,” Black said. “The company hints it will demand payment from developers and, just maybe, end users in government and business. This sort of talk is as shocking as it is baseless, and likely based on patents that are questionable at best.

“It is unlikely that Microsoft will actually bring patent suits implicating open source. We further believe that recent Supreme Court decisions undermine the viability of dubious software patents.  Nevertheless, we are troubled: These latest statements seem to signal a shift away from what we felt was a serious, if minority, effort within Microsoft to be truly open. Today’s comments suggest that Microsoft remains bent on frightening users and producers away from open source and, if necessary, imposing huge litigation costs on those who resist.

“Microsoft faces an identity crisis at the moment.  Last July, it issued a 12-point manifesto describing how it was a ‘new’ company open to competition and working productively with others in the high-tech industry. Now, Microsoft can either relapse back into its shortsighted, anticompetitive habits of old or embrace competition and innovation that will benefit the company, their industry, and the economy as a whole.

“Microsoft has spent years rebuilding relationships with others in the tech industry. Reverting to bullying now would be unfortunate and unwise. Any attempt to use patent law to block legitimate competition would reignite antitrust concerns around the world.

“Proliferation of patent litigation in this area would harm everyone involved in it, including Microsoft, which would almost certainly face a bevy of patent suits filed in retaliation.   Such ‘mutually assured destruction’ in which numerous companies would enter into round after round of litigation serves no beneficial purpose.
 
“The damage from questionable patents becomes more apparent with each passing year. One-click online shopping carts, RIM’s Blackberry products, Vonage’s innovative VoIP service – all have been the subject of innovation-sapping lawsuits. Yet, these same suits have risked harming millions of ordinary businesses and consumers.

“The U.S. government is in the midst of acting on long-sought efforts to reform the U.S. patent system. Statements by senior Microsoft officials which attempt to intimidate the open source software community can only undermine this reform effort. This controversy comes on the heels of Verizon’s recent suit to cripple the innovative VoIP industry. It is imperative to address such patent misuse by dominant firms.

“Threats to aggressively litigate patents in markets dominated by a single player raise anticompetitive issues per se. Prosecution of junk patents against the most viable competitor in the market would definitely be against the public interest.

“The computer, communications, and software industries demonstrated breathtaking prosperity for decades without software patents, evading the potential harm that comes from overly broad patents. Too many ignored those risks and today the U.S. Congress and the Supreme Court are compelled to try to repair the damage. Ironically enough, Microsoft backs many of the legal reforms now on the table.

“The last thing this industry needs is more lawsuits,” Black said. “We urge Microsoft to drop the rhetoric and begin working constructively with open source developers.”