Friday, May 27, 2011

Microsoft's extortion game.

I don't think there's been enough press made of CPTN Holdings, and how close Microsoft was, at obtaining a large portion of Novell's IP last month. Had it not been for regulators in Europe, who forced Microsoft to give up their share of the IP, from CPTN's buyout of Novell's IP, the tech environment may have been further distorted by a group of tech oligarchs.

Now, we find out that Microsoft has been extorting $5 from HTC for every Android handset they sell.  Word is, they're currently pursuing even higher extortion monies from other manufacturers.  Which to me, is proof that Ballmer's WP7 can't compete head to head, so he has to rely on his cadre of lawyers to find alternative means of revenue.  All these "new" features that are coming to WP7 via Mango...a lot of it was stuff that Android already has.

This is symptomatic of the distorted intellectual property system in Europe and the US: the more mature a company gets, the more it ends up relying on its patent portfolio that has built up over the years, forcing newer companies (that tend to move much faster and with intrepid determination in comparison to their elderly brethren) to pay its rent, just to exist.

Technological innovation is predicated on first paying the rent.

Sound familiar?  Before you can sell an orange, you have to pay me so that nothing bad happens to your store, my friend!

No comments: