Cybersource

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Australia's Leading Linux & Open Source Solutions Company

Press Release

FOR IMMEDIATE RELEASE                  

If Linux Infringes 200 Software Patents, Then Windows Infringes 2,000.

Australia -- 22nd November, 2004                                                
                                                                                
A few days ago in Singapore, Microsoft CEO Steve Ballmer tried to               
scare off Asian governments from adopting Linux in ever-greater                 
numbers, with veiled threats that Linux was potentially in                      
violation of various software idea patents [1]. In reality however,             
the platform which is most at risk from drowning in patent                      
litigation is Microsoft's own, and even Microsoft's US$50 billion               
cash hoard may not be enough to save it.                                        
                                                                                
"At present, Linux is not the target of any software idea patent                
attacks," stated Con Zymaris, CEO of open source solutions company              
Cybersource. "Microsoft however, is facing between 30 and 35 such               
court actions [2]. To name but a few, Microsoft has been ordered to             
pay US$521 million to Eolas for an infringement in Internet                     
Explorer and another US$440 million settlement to InterTrust                    
Technologies Corp. for infringement of digital restrictions                     
management patents and US$1.6 billion to settle a patent and                    
anti-trust suit bought against it by Sun Microsystems. That's over              
US$2 billion for just three suits, well over US$500 million per                 
patent case. Furthermore, the number of court cases against                     
Microsoft is increasing."                                                       
                                                                                
Obviously responding to the Singaporean government's recent                     
decision to migrate 20,000 PCs to open source desktop productivity              
applications [4], Ballmer is trying to use FUD about software idea              
patents as a weapon to stem more government and corporate defections            
to Linux. In his haste however, he forgets to mention that if                   
software idea patents are a threat to Linux and open source, they               
are far more of a threat to Microsoft itself.                                   
                                                                                
"If we believe Ballmer, the Linux kernel may possibly infringe on               
228 software idea patents," continued Zymaris. "If that's the case,             
then it seems reasonable to expect Microsoft's Windows, which has a             
code-base ten times larger, infringes on over 2000. And that's just             
the operating system. Once we include Microsoft Exchange, Visual                
Studio, SQL Server and dozens of other products, Microsoft could be             
infringing on thousands more. On current track record, losing even              
100 patent cases might be enough to deplete Microsoft current cash              
reserves. Suddenly that gargantuan mountain of money that Microsoft             
sucked dry from its customers doesn't quite seem large enough."                 
                                                                                
As an open source solutions company, Cybersource is strongly                    
against software idea patents. Both open source and proprietary                 
software are already well protected by copyrights.  Further, a                  
recent report by Price Waterhouse Coopers formally identified                   
software idea patents as a threat to the software industry [5].                 
                                                                                
"Thankfully most countries do not allow the patenting of software               
ideas. Just as importantly, none of the US-sourced software idea                
patents (which might potentially be used against Linux) apply                   
throughout Asia. Therefore Ballmer's scaremongering threats were                
totally disingenuous and certainly inaccurate," continued Zymaris.              
                                                                                
"In watching Microsoft's recent movements in this space, we come to             
the conclusion that Microsoft have given up trying to compete with              
Linux and open source on value, quality and security. We had hoped              
that Microsoft would respond with better, more secure and much                  
cheaper software, rather than resort to shabby veiled legal FUD.                
But if that's the message it wants to send the world, then so be                
it," concluded Zymaris.                                                         
                                                                                
Further reading:                                                                
                                                                                
                                                                                
 Ballmer and the revenge of the Jade penguin                                    
 http://comment.zdnet.co.uk/other/0,39020682,39174385,00.htm                    
                                                                                
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References:                                                                     
                                                                                
[1] Author of Linux Patent Study Says Ballmer Got It Wrong                      
 http://www.eweek.com/article2/0,1759,1729908,00.asp                            
                                                                                
[2] Microsoft hit by dozens of patent suits                                     
 http://www.eweek.com/article2/0,1759,1661094,00.asp                            
                                                                                
[3] Microsoft ordered to pay $521 million                                       
 http://news.com.com/2100-1012-5062409.html                                     
                                                                                
[4] Singapore Dumps Microsoft, Goes Open Source                                 
 http://www.techweb.com/wire/ebiz/50900190                                      
                                                                                
[5] PwC: software patents threat to Europe                                      
 http://www.theregister.co.uk/2004/09/15/pwc_swpat_are_a_threat/                
                                                                                
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About Cybersource Pty. Ltd.                                                     
                                                                                
Cybersource, founded in early 1991, is the second longest running open          
source solutions company in the world. We have been demonstrating the           
better value, security and robustness of open source technologies to            
our clients since then. We also produce products like:                          
                                                                                
* The Safe Internet Computer: The Safest Way to Use the Internet.               
                                                                                
* The Small Business Linux Server: the best value small business server         
  on the market and 75% less expensive than the Microsoft alternative.          
                                                                                
* Datasafe: Stores copies of all your documents. Easy and direct access         
  to all past revisions.                                                        
                                                                                
* Cybersource Trim Client; All the advantages of a Thin Client with none        
  of the disadvantages.                                                         
                                                                                
http://www.cybersource.com.au/                                                  
                                                                                
Contact: Con Zymaris <conz@cyber.com.au>
Phone: +61 3 9621 2377                                                          
Email: info@cyber.com.au