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Microsoft and Novell at two: Was the patent pact worth it?

By | November 18, 2008, 11:18am PST

Summary: Two years ago this month, in November 2006, Microsoft inked its controversial cross-licensing pact with Novell. Since the agreement was forged, a lot has happened.

Two years ago this month, in November 2006, Microsoft inked its controversial cross-licensing pact with Novell.

In exchange for Microsoft distributing to its customers certificates for Novell’s SuSE Linux, Novell basically conceded that its implementation of Linux violated Microsoft patents and agreed its customers needed patent-enforcement protection. (That’s not how Novell or Microsoft likes to portray the arrangement, but that’s what it boiled down to, in essence.)

Since the agreement was forged, a lot has happened.

In the first few months after Novell and Microsoft announced their deal, Microsoft convinced a number of smaller Linux players they needed similar “patent protection” coverage. Among those who signed on Microsoft’s dotted patent-infringement line: Linspire and Xandros.

Red Hat held firm and wouldn’t succumb to CEO Steve Ballmer’s infringement sabre-rattling. In March 2007, Yankee Group issued a study noting that Novell’s share was growing vis-a-vis Red Hat’s, and said Microsoft’s certificate distribution was the main reason. And Microsoft and Novell proudly touted customers who they claimed were eager to seek shelter from potential Microsoft patent lawsuits by signing up for SuSE Linux.

In February 2007, Ballmer stated in no uncertain terms that the deal between Microsoft and Novell was proof that open-source vendors need to respect Microsoft’s intellectual property. One month later,Microsoft licensing officials made the bold (and as still publicly unsupported) claim that Linux and other free software violated 235 Microsoft patents.

Novell definitely benefited financially from the Microsoft pact. Its deal with Microsoft helped keep Novell in business, some industry watchers went so far as to say. But Novell came to be seen by many open source purists as a sell-out and little more than Microsoft’s patsy in Redmond’s ongoing Windows vs. Linux and closed-source vs. open-source battles.

In the past year, there have been no new Linux vendors lining up to sign patent-protection deals. Microsoft’s open-source backers, led by Sam Ramji & Co., have been endeavoring to undo some of the damage Ballmer’s anti-open-source rhetoric has done since Novell and Microsoft signed their agreement.

How would you rate the two-year old Microsoft-Novell deal, at this point? A positive for customers, but a negative for Novell? A win for all parties (Microsoft, customers and Novell)? A wash?

Update: Microsoft issued a press release on November 18 to commemorate the Novell-Microsoft anniversary.  Microsoft is citing interoperability advances (that I’ve always thought would have been possible without the pact) and new customers as proof that the relationship has been a resounding success. From the release:

“In the second year of their business collaboration agreement, Microsoft and Novell have added more than 200 new joint customers, including Alticor Inc., BP Oil International Ltd. and China Mobile Ltd., which are receiving certificates from Microsoft for three-year priority support subscriptions for Novell’s SUSE Linux Enterprise Server. When the five-year agreement was signed in November 2006, Microsoft purchased certificates to sell to customers, which then redeemed those certificates with Novell for a subscription to SUSE Enterprise. In the first two years of the agreement, Novell has invoiced more than 70 percent of the original certificate purchase.”

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

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RE: Microsoft and Novell at two: Was the patent pact worth it?
dsfwrryd3401-24353672353182640509235579913603 Updated - 11th Nov
Hey all, mulberry bags i'm someone used my new web page i absolutely arrived to "return mulberry bag the main favour".My organization mulberry shop is around the looking with regard to ways to can include factors to this site!I reckon that its just chuckled . that can put on to move some of a person's other choices!!
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Staff
Sheer brilliance
Larry Dignan 18th Nov 2008
Not that I'm going to start any wars or anything, but from a business perspective this deal was totally worth it.

Microsoft got to wiggle its way into mixed source environments. Novell got a lifeline and became a bigger Linux player. Double bonus is the FSF is still seething (half kidding on that one).

What's not to love wink
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Funny
Tim Patterson 19th Nov 2008
You're a funny guy Larry.

People who need serious computing power completely ignore MS and their sycophants.
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What company do YOU work for?
seannj427 Updated - 19th Nov 2008
I work for a really large company. We use all flavours of un*x, linux, windows (32 and 64 bit) as well as Mainframe.
It all depends on what you are doing, what apps you are running and what your end goal is.
We have lots of large windows servers and lots of small linux servers, and lots of large and small un*x servers. So - - tell me, why aren't there any LARGE linux servers around? OH that's right, linux is still 'catching up' to Microsoft and Un*x in the datacenter.
-S
PS I should say, that, the exception to this rule in our shop is VMWARE ESX which runs on linux.
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Showing off your mental retardation problem again, are you?

You ask, "Why aren't there any LARGE servers around?" Are you serious?? They're sitting at the head of the top 500 supercomputers list.

A better question is where are the large Windows servers? Seeing how 8 cores is the maximum that MS will allow you to run, without paying MAJOR $$$$$$$$$$$ (not just a few $$$, LOTS OF $$$$$$$$$$$!), yes, where indeed are those large servers? They're all running various forms of *nix, you ignorant twit.



Windows, as usual for Microsoft products, has artificially low performance limitations hard-coded in the system.
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That's a ridiculous statement
emcauley 18th Feb 2009

The following is a ridiculous statement made by an ignorant person.

"So - - tell me, why aren't there any LARGE linux servers around? OH that's right, linux is still 'catching up' to Microsoft and Un*x in the datacenter."

Here's an actual real life engineering question for you: "Can you tell me why Microsoft has yet to fix its file 9 problem with chkdsk?" This problem will immediately neutralize AND render useless the functionality of any system on which it occurs, disabling proper execution of the filesystem, requiring immediate attention; AND this corrupt functionality has been around for 10 years.

Please do tell me why Microsoft has yet to fix this file 9 engineering problem with chkdsk, that threatens nearly all of its installed base of operating systems? It is a lot more important than "My dog's bigger than your dog arguments."

CHKDSK is verifying security descriptors (stage 3 of 3)...
Repairing the security file record segment.
Deleting an index entry with Id 8447 from index $SII of file 9.
Deleting an index entry with Id 31126 from index $SII of file 9.
Deleting an index entry with Id 50636 from index $SII of file 9.
Deleting an index entry with Id 31126 from index $SDH of file 9.
Deleting an index entry with Id 50636 from index $SDH of file 9.
Deleting an index entry with Id 8447 from index $SDH of file 9.
Replacing invalid security id with default security id for file 1461234.
Security descriptor verification completed.
Windows found problems with the file system.

http://search.live.com/results.aspx?form=MSHPLS&q=file%209%20security%20error%20chkdsk&mkt=en-US

APPLIES TO

* Microsoft Windows 2000
* Microsoft Windows XP
* Microsoft Windows Vista
* Microsoft Windows 7?

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Two out of three ain't bad
Yagotta B. Kidding 18th Nov 2008
How would you rate the two-year old Microsoft-Novell deal, at this point? A positive for customers, but a negative for Novell? A win for all parties (Microsoft, customers and Novell)? A wash?

Microsoft: lots of press and a boost to the FUD for chump change. Win.
Novell: lots of press, bad PR is better than no press, cash to keep the doors open: Win.
Users: Total yawn. Wash
But I guess they always were the mafia... :\
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NO!
Linux Geek 18th Nov 2008
It was an anti consumer and anti OSS pact.
Novell & M$ will soon show up, hat in hand, in Washington for a bailout.
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ROTFLMAO, The Court Jester Strikes Again!! NT
JustAnAboveAverageJoe 18th Nov 2008
.
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No impact at all
ThePrairiePrankster 18th Nov 2008
This FUD filled threat from MS never was taken seriously by my organization nor by me as a consumer. We use non-Novell Linux, Apple and Microsoft OS just fine and the lawyers have blessed it.
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A win for everyone
No_Ax_to_Grind 18th Nov 2008
and the bottom line pretty much agrees.
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The deal has inflicted huge damage to the openSUSE community. Many openSUSE users and development contributors turned away in disgust, and sought themselves another Linux distro.

The deal was very unfortunate. No doubt about it. But I think we should move on.

Novell and openSUSE are still major contributors to Linux development in general (for instance kernel development). So it would be a pity for Linux in general, if openSUSE and SLED would disappear.

And let's not forget: openSUSE is a fine distro. Good German quality. Adding the missing multimedia support is as easy as in Ubuntu (thanks to the community). And each version receives no less than two years of security and stability updates. All for free.... happy
If Novell has to be IT, so be it.

I threw my last set of Suse disks in the garbage, along with the box and the Sears catalog sized book that went with them.

If you lie down with dogs... you'll wake with fleas. Stink, too!
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It was disappointing that...
Henry Miller 18th Nov 2008
...Novell caved to Microsoft's empty threats and bullying, but I don't think it did any damage to Linux.
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The agreement legally documented that there was no confirmed infringement by either party and, for the right to know that risk went away, Microsoft paid Novell a LOT more than Novell paid Microsoft. Shady relative to being like a cross-license but involving GPL on one side yes but an open admission of infringement, not only no but extra effort was made to make that part of the legal documentation which was made public. You can call it something else as many times as you want and you are entitled to your opinion but it doesn't alter the facts.

It seems a bit biased and perhaps irresponsible to leave out the results of the interoperability portion of the agreement given the question the post asks overall. Many customers would suggest that they did win but not because of the intellectual property stuff. They won because interoperability was advanced in meaningful ways around document formats, virtualization, identity and systems management. They also won because Novell started what has become a more significant "move to the middle" of Microsoft if you consider Microsoft to have started on the far right and FOSS on the far left when it comes to open source, interoperability, software patents and more.

When the deal was struck everyone said Novell had been had. They were naive and Microsoft would use this to kill Novell and, from there Linux and perhaps FOSS. How about giving Novell a little credit in retrospect for a bold, controversial move that isn't 100% like-able but, maybe, just maybe, fundamentally exposed a weakness in Microsoft and started them on a path that will forever leave them changed with regard to how they view Open Source (if not the GPL specifically), their place in the IT landscape and the need to interoperate and that showed them they can benefit from coopetition and don't need to put competitors out of business to advance their own position.

You don't ever have to be comfortable with the whole thing to acknowledge that some good did come of it.
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We're now a non-SuSE Linux Shop...
Basic Logic 18th Nov 2008
Thank you Microsoft. You finally nudged us to be a one-vendor Red Hat Linux shop.
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Two computers in the basement is not a "shop".
No_Ax_to_Grind 18th Nov 2008
wink
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Never said...
ShadowGIATL 18th Nov 2008
what kind of "shop" it was... just saying.
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There was clearly a short-term benefit to Novell but I believe it will wear off as the traction for MS's anti-OpenSource FUD decreases, partially through MS's own efforts, as the article noted.

Less clear is what the swing in judicial opinion towards business-method patents as evidenced in the Bilski decision will mean in the long term to software patents. If some of the side-opinions in that case are any indication, judicial will to strike down the patentability of software may also loom. Then what value will this be? None, even in the short term. And then the negative good will generated by the Microsoft-Novell fingercuff move will only increase.

stay tuned
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More Posturing
Tsingi 19th Nov 2008
More posturing FUD from Microsoft. I think that the authors of the above responses all realize that. It hurt Novell badly in the UNIX community if not the rest of the world. Does that matter? Not yet, but the world that used to be sucked in by M$ is becoming more aware.

You can fool some of the people all of the time, and that's quickly becoming the minority that buys MS FUD.
Probably. Arguably, Novell made more money than they would have if they didn't have MS passing out SuSE certificates. And, they bought 'insurance' (some might call it "protection") from unwanted advances from the MS legal department. Interoperability is a more complex issue. As I recall, MS promised that Vista would run Linux binaries natively (which has not really materialized, though it could if MS & Novell wanted to make that happen.
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You're Kidding, Right?
rjacksix 19th Nov 2008
What FUD!

The Microsoft / Novell alliance was not about
mitigating the threat of Microsoft litigation for
patent infringement...ever. To say that it was is to
buy into the Ballmer FUD, FUD that almost queered the
whole deal.

The reality is that Novell has successfully turned the
corner from being a proprietary company to one that is
leveraging and supporting the new OSS paradigm. They
are light years ahead of MS in this regard and can
actually teach MS a thing or two in that realm. The
Ballmer FUD which you insist on foisting upon us does
not take into consideration that Novell has a huge
basket of patents itself, patents which could just
have easily been turned on some of Microsoft's
proprietary software development efforts.

Instead of playing that game, Novell has embraced
reality, MS is everywhere and a successful company
must be able to integrate heterogeneous environments.
That is what interoperability is ALL about and it has
resulted in some very dynamic collaboration which has
benefited not just MS but Novell and the OSS
community.

Purists are fanatics. The Microsoft / Novell deal
represents reality and the AD integrations, Samba
innovations, Mono advances, Open Office bridges and
work all represent just a tip of the iceberg when it
comes to interop benefits and continued possibilities.

The epitome of this effort was when I saw a Novell
Symphony live migration of a MS Hyper-V host at
Brainshare last year. Something that MS couldn't do
at the time.

We live in a heterogeneous world, one where OSS will
continue to change the way in which our industry
works. Bravo Novell and Microsoft for embracing the
future.
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"Purists are fanatics"
Ole Man 19th Nov 2008
And where would you be today without some of your fanatical forefathers, like the ones who dumped a ship-load of tea into the Boston Harbor? You might not appreciate it if you're not American, but even so, you should thank your lucky stars that the world has a few "fanatics" to help keep it safe against greedy gargantuans for limp-wimps.

You have no idea how deep waters run.
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Absolutely Worth It.
mhorany@... 20th Nov 2008
Some may not like the way it went down... that being said: You have to fight for survival in the IT industry now. And it was a brilliant move for Novell. Now with Microsoft behind them, they can push their OES product and SUSE Linux product further into the server market. A lot of people complained about the so called attack on Red Hat, but at some point competition is going to have to take precedence over being nice in the open source market. Good for you Novell.
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SUSE compatibility
se_lain@... 23rd Nov 2008
The compatibility pact helped advance mono and bring moonlight to Linux among other things. Honestly though, the single biggest thing I liked was having MS fonts available on SUSE ^_^. Yeah I know you can add them manually, but having them available as an update so that you can have those fonts when you don't have a copy of windows was very nice. SUSE is still my favorite Linux Distro. I still have to use Windows to play some of my games of course and despite any agreement with MS I doubt that will change anytime soon.
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Get the Facts Right....Please
rjacksix 17th Feb 2009
Novell did not concede ANYTHING about violation of patents (despite Steve Ballmer's bloviating). The agreement was to work together to achieve better interoperability in recognition of the fact that most shops are heterogeneous conglomerations. The patent infringement agreements were more a mechanism for insuring that attempts to achieve better interoperability would not latter be a means of attacking the other company.

Your comment;

That?s not how Novell or Microsoft likes to portray the arrangement, but that?s what it boiled down to, in essence.

makes me wonder what makes you the expert on a business deal between two multi-billion dollar companies and why your readers should trust your take. This isn't journalism its muckraking.

It is a well known fact that Novell has a huge portfolio of patents itself, and that Microsoft's products sit on the periphery of some of those technologies. But your characterization simply continues the FUD and myth surrounding a collaborative effort that

This agreement and the synergies realized have been an extreme positive. We use both Novell and Microsoft products throughout our enterprise and are excited about the product enhancements, new technologies and cost savings we have realized from this agreement.

Could some of the interoperability stuff have happened w/o the agreement, sure, but it would have taken much longer and would have always been a reverse-engineering kind of effort. You also failed to mention that Novell never conceded that anything that it developed as part of the interoperability effort would not go into the OSS. So, despite the Novell bashing of "purists," the interoperability agreement will end up bring new interoperability code and tools to the whole OSS community without the FUD of MS lawsuit threats.

It was a brilliant move on the part of Novell and not a bad move on the part of MS. As eventually MS will have to round the curve to an OSS business model as Novell already has.
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[removed by me]
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Reality Check
UserLand 26th Feb 2009
1. Since the deal, Novell's stock is slowly ebbing away (devalued 38% in fiscal 2008), the company laid off workers and it's come pretty close to being a pariah to many open source developers:

http://www.heraldextra.com/content/view/247987/

http://www.boston.com/business/ticker/2009/02/novell_ceos_200.html

2. Meanwhile, Red Hat had its best year ever in 2008 and told Microsoft to stick it concerning patent agreements, with Mr. Softy ending up crawling back practically begging for an interoperability agreement:

http://news.cnet.com/8301-13505_3-10164907-16.html?subj=news&tag=2547-1_3-0-20&part=sphere

http://news.cnet.com/8301-13505_3-10128256-16.html

I'd say, just based on the observable facts, that Novell got left holding the bag, while Red Hat comes out smelling like a rose.
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RE: Microsoft and Novell at two: Was the patent pact worth it?
jackson1984-24316069205748857739440257893812 10th Oct
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RE: Microsoft and Novell at two: Was the patent pact worth it?
dsfwrryd3401-24353672353182640509235579913603 Updated - 11th Nov
Hey all, mulberry bags i'm someone used my new web page i absolutely arrived to "return mulberry bag the main favour".My organization mulberry shop is around the looking with regard to ways to can include factors to this site!I reckon that its just chuckled . that can put on to move some of a person's other choices!!

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