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Who bought those 882 Novell patents? Not just Microsoft

By | December 16, 2010, 7:44am PST

Summary: The mysterious CPTN Holdings — the organization that bought the 882 Novell patents as part of the terms of the Attachmate acquisition of Novell — has been unmasked.

The mysterious CPTN Holdings — the organization that bought the 882 Novell patents as part of the terms of the Attachmate acquisition of Novell — has been unmasked.

CPTN Holdings isn’t just a front for Microsoft. It is a coalition that includes Microsoft, Apple, EMC and Oracle, according to information from the German Federal Cartel Office (which I found via Florian Muller’s FOSS Patents blog). The Federal Cartel, a k a, the Bundeskartellamt, listed the CPTN Holdings partners in a list of antitrust-related notifications.

On November 22, Seattle-based Attachmate Corp. announced plans to buy Novell for $2.2 billion. At the same time, Novell announced the “concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash.” At the time, Microsoft officials refused to comment on the specific patents purchased or on CPTN Holdings in any way.

I’m more curious than ever now about how Microsoft came to “organize” this motley crew and how the patent spoils have been divided. Since Attachmate has said it plans to continue operating the SuSE Linux business, it’s doubtful (I’d think) that there are Linux-related patents in the CPTN war chest.

I speculated earler that perhaps some of the patents having to do with the WordPerfect antitrust case between Novell and Microsoft might be part of the 882. EMC’s inclusion in the coalition makes me think some virtualization-focused patents may have been part of the spoils, as well. (There were some folks hinting in November that EMC/VMware might try to grab Novell from Attachmate in a last-minute bid, but with this new information, I’d think such a move is highly unlikely.)

I’ve put in another query to Microsoft to see if the company will share more now about its CPTN involvement. I’m not holding my breath for an answer.

Now that we know more about CPTN, any other thoughts/guesses as to what other Novell patents might be part of the 882?

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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.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Who bought those 882 Novell patents? Not just Microsoft
makrekwe57-24353622088313796844736220235705 Updated - 10th Nov
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Makes sense to me.
Bruizer 16th Dec 2010
Keep it out of the trolls so the patents can just (mostly) die.
@Bruizer In the right hands, those patents can be licensed out properly to generate profits for new innovations with further research and development. This is mostly why IBM has built up such a large patent portfolio.

It's the exploitation for pure profit that makes patents purely useless.
@nucrash

"It's the exploitation for pure profit that makes patents purely useless."

That's the whole point of a patent: Providing an incentive for innovation. Other than money, what incentive is there?
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@nucrash

The software industry initially built itself up very successfully before USA-only software patents were enforceable. Patents are no guarantee that a company will be MORE successful.
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I'd like to add
People 16th Dec 2010
@nucrash

building patent portfolios through acquisition also protects one from future lawsuits from those like SCO looking for a quick buck.
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@nucrash

Patents are property that can be legally sold/purchased. So they are not useless.
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500 million is also cheap insurance
Bruizer 16th Dec 2010
@nucrash

No reason to even license them.
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However, weve always considered this group to be consumer focused, the former MVP said. The general feeling is that they are cleaning house - hitting the reset button and starting over with ipad bag blog of best sutudeg community the modern education news and this group.
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but for the most part are not mutually exclusive automotive of industry that home from any the track from people of best any other food blood to the money.
@nucrash Doesn't take a iCrAppleholic getting buzzed on the RDF (Reality Distortion Field) at the iGenius Bar to figure out that Steve realizes he's losing his Magical and Revolutionary edge as a con artist! .....notice that his Fragmentation bullshizt story blew junks in his face as they his App choice flipped his whole story on it's ear!!!! haha..... it's hell getting old and finding his gypsy touch has left him! sihirli sayilar 3d sokak yarisi grey away
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are contingent on VMware (or any of the other compaines involved) not trying to buy Novell for themselves.
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SCO 2.0
osreinstall 16th Dec 2010
I thought at first it was Nathan Myhrvold adding to his portfolio. But a better use would be to protect itself from submarine patents. Then concentrate and finish off Linux or make it fork big time.
@osreinstall err, what an odd take on the merits and effects of forking. You, me, Google, anyone, can fork Linux. In fact, Linux is already forked, but, amazingly, seems to have survived.
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Just a thought
osreinstall 20th Dec 2010
@THUFIR.HAWAT

This is the kernel we are talking about that MS has some 285 patent claims against. I was wondering who would rally to their defense once Novell's IP is now MS's. If MS won it would be a major rewrite or MS would use it to incorporate the code in question into their product. It will be interesting. Like I said in the past, software patents should be limited to device drivers for 10 years only.
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is clearly not understanding that they are not competitors. Apple does not compete with Microsoft. Apple is exactly where it wants to be and can manage mindshare and cost with the smaller base. They can focus on their hardware in the computer, MP3 and phone sectors, among others.

Microsoft continues to sell plenty of Office and Windows licenses on Apple Hardware, and Apple can continue to support any x86/x64 OS.

They understand their relationship. Why can't so many users?
@PlayFair You're serious?
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@azzlsoft

Yep. Apple are primarily a consumer electronics and media seller. MS are primarily an enterprise software company.

They're both huge companies with diversified interests and so compete in some areas, but for the most part are not mutually exclusive.
@azzlsoft

Certainly I am serious. Competitors don't team up consistently. Maybe in video games and cartoons, but not in business.

The whole rivalry angle is a media spin that we fall for time and time again. True competitors would not share things like they do and be partners in as many things as they are.

And their partnerships are of course mutually beneficial, but that is how it goes with big businesses. And as OffsideInVancouver mentioned, one focuses on Hardware, while the other focuses on software.
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azzlsoft, he is correct
Mister Spock Updated - 18th Dec 2010
in the mid 80's General Motors purchased Hughes Aircraft. While this allowed them to overlap Boeing in area of satellites, avionics, and advanced weaponry, people would hardly catagorize both General Motors and Boeing as being "in the same business" based on their core products, that being automobiles vs aircraft.

Microsoft and Apple are no different in that respect.


plain
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...when Apple, EMC, and Oracle are also part of the group?
This smells. Cartel smelly.
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For those with any ..
thx-1138_@... 16th Dec 2010
.. modicum of discernment, these latest revelations should be of no surprise at all.

Mary Jo, I believe the contents of this particular patent portfolio - in and of itself - are far less relevant than the symbolic and perceived value to CPTN: which is to act as a 'hedge' and simultaneously demonstrate a 'strong arm' move into - and in spite of - the OSS community.

I was initially going to liken this act to the Greeks and their Trojan Horse .. but than quickly rethought that the analogy is wrong. I think this act is out-in-out blatant, direct and belligerent .. much like Blitzkreig under Hitler's vaunted Panzer Armies.

If we trace the actions of three of those parties named (the 'usual suspects'), it all makes perfect sense when put in the context of how Apple, MS and Oracle somehow magically .. and coincidentally (sic) .. became involved in ultra aggressive acquisitions, takeovers and patent suits against OSS counterparts - and various OEMs - all roughly within the last year or so.

Let's be frank, if this is not simply more posturing by an oligarchical / monopolistic cartel, than the Pope isn't Catholic.

".. The pieces are in motion .."
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Wrong Trail?
dunraven 16th Dec 2010
If you look at the pattern of the page, I wouldn't bank on that the forward slash designates what goes into it. It rather seems to be a separator of various parties to a contract, though not consistently so. I.e., the mentioned parties are forming a GU - Gemeinschaftsunternehmen - a joint corporation. That may mean that all five - Microsoft, Apple, EMC, Oracle, and CPTN are part of something, not that CPTN = Microsoft, Apple, EMC, and Oracle. Note that in several cases the product (of the union) is mentioned afterwards, but no product is mentioned here, e.g., "DZ Bank/purus Arzberg Gr?ndung der DORADUS Immobilien KG" - the final results is DORADUS ("Gr?ndung der" = founding of the). Is doesn't say, "Microsoft/Apple/EMC/Oracle Gr?ndung der CPTN Holding."
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It's so obvious it is not funny.
bjossir 16th Dec 2010
They are scared of Google.
Oracle fighting Google over Java/Dalvik in Android
Apple iOS against exploding Android
MS against Android/Chrome (OS)/Search/Google Docs etc
EMC loosing relevance when companies use Google to store their data.

What part is so hard to understand?
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These same people would just love a walled garden for all of their customers. "Oh no, really, there's no such thing as Linux or free software. We've got you covered."

They don't want Google around because it's a giant promoter of free software. They can't imagine making more money from customer service than from software licenses. Well, possibly Oracle, but the developers fleeing MySQL and OpenOffice tell the real story.

Owning a patent is a great replacement for customer service.
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epitax. In fact they are the least customer service oriented company in the world today. Google is not a promoter of "free software", they are the biggest promoter of Google's free software, as Microsoft is of theirs, ect.

Many a free software company has proven that revenue from customer serice oriented bussines model is far less then that of selling the actual software itself.

I would argue that you conclusions are wrong.
plain
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