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Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

Microsoft still pushing a standards tax

By | August 10, 2009, 5:20am PDT

Summary: If a standard includes “IP restrictions” of any sort, especially royalties (no matter how reasonable or necessary you consider them) you’re imposing a tax on all users for your invention.

While putting it in the way of the weasel, Microsoft is still pushing what amounts to a tax on users of Internet standards.

(Image from Amazon.com.)

It’s doing this through a definition of “open standards” that would mandate standards bodies to consider patented, protected, proprietary technology on a par with truly open source offerings, and encourage companies to pack standards bodies with paid employees.

The way Jason Matusow, Microsoft director of corporate standards, does this would do credit to any Senator seeking to filibuster a wildly-popular measure.

He calls it “balance.”

I fundamentally still believe that innovations are opportunities…and that is a good thing (for the inventor and for society). But the “no IP restrictions” concept of “open standards” does away with too much. Out of balance.

In this Matusow is pretending not to know what having a standard means. It means everyone must use whatever it is you offer. Standards are, almost by definition, not innovative. They are what everyone has, what everyone is required to have.

If a standard includes “IP restrictions” of any sort, especially royalties (no matter how reasonable or necessary you consider them) you’re imposing a tax on all users for your invention.

My idea of balance is a bit different. Innovations are a good thing. But by the time an innovation reaches a standards body it’s no longer an innovation.

Standards are a base line. They’re the minimum entry point for performing a basic function. Any royalty or limitation on using a basic function represents a private tax against all users by one vendor.

If we learned anything at all from the OOXML debate it should be that any Microsoft victory there was pyrrhic. ODF was able to deliver on its standard long before Microsoft could change its own proprietary scheme to match what the ISO approved.

If their idea was to bury ODF in the corporate user base, Microsoft failed, and at enormous cost, both to its own reputation and that of the ISO standards bodies.

I think other companies saw this and will push back hard against any future Microsoft attempts to place its own proprietary technology ahead of open source, or at least royalty-free, offerings in the future. I think the standards bodies themselves have learned to read Microsoft pronouncements carefully, and assume weasel language, something that will cost Microsoft dearly for a long time to come.

But I wonder whether Microsoft has learned anything. (Tip of the hat to Raiden’s Realm for pointing out the need for a wag of the finger.)

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Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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A usage us not a standard
Daddy Tadpole 17th Aug 2009
Sorry, there seems to be strange 'send' ,key on my computer.

Concerning Microsoft Word, you're confusing 'usage' and 'standard'. The Word format is often needed because 3rd parties use it... because it's often used. Whether or not the Word format is any good is another matter.

You could define 'any good' as meaning that someone other than a geek who wants to read your literary gem 20 years from now will be able to do so (provided of course the storage media have been maintained and kept up to date). 20 years is less than the lifetime of an aeroplane or a medicine.

The reason for wanting standards is that software producers, left to to their own devices, will produce formats that are upwards and/or downwards incompatible with different versions of the same offering. And, of course, as incompatible as possible with rival products.
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You make an assumption that is not true
Johnny Vegas Updated - 10th Aug 2009
"If a standard includes ?IP restrictions? of any sort, especially royalties (no matter how reasonable or necessary you consider them) you?re imposing a tax on all users for your invention."

Excuse me? Take for example Flash. Do they not license On2's proprietary "IP restricted" technology for which they also pay a "royalty". How much "tax" did the nearly 100% of internet users who have Flash pay? Same with Move. Same with the codecs MS includes for SL on linux. Same with many many other examples of royaltied IP.

There is no causation between resitricted IP, even with royalties, and end user "tax". End user taxes are a completely independent business model decision.

PS the ooxml argument is pretty weak too. From the other side it can be looked at as MS was open enough (or powerless enough) to standard change for the good of all that the standard moved far enough from what they already had (and submmitted) that it took them significant time to conform to. And that they spend more time testing the chnages than the OSS implementors...
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not a standard
techodude 12th Aug 2009
Sorry dude, Flash is not a standard, just a popular technology. The same way that Msoft Word is not a "standard", just a popular software.

SMTP is a standard, as is TCP; if your stuff follows the standard it works with everyone else's mail systems and networks.
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Then, why is every open source word processor listed as being Microsoft compatible? Abiword, OpenOffice, KOffice and all the others must be .doc compatible if they want to be used. There are three standards of word processing: .doc, .txt, and .rtf. All the rest are proprietary to the program. I do not use Word but to make my documents usable with my Linux Open Office and Documents to Go on my Palm z31, (since I cannot sync using Ubuntu), I have to save all files in Native Microsoft Formats. .PDF is also a standard format. All Linux distros include a .pdf reader as part of the basic install.

As for Flash, it is required on any website that has multimedia. gnash and swf just don't cut it. If something does not work because a component is missing, that component is a standard.

Paul
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A usage us not a standard
Daddy Tadpole 17th Aug 2009
Concerning Microsoft Word, you're confusing 'usage' and 'standard'. The Word format is often needed because 3rd parties use it... beca
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A usage us not a standard
Daddy Tadpole 17th Aug 2009
Sorry, there seems to be strange 'send' ,key on my computer.

Concerning Microsoft Word, you're confusing 'usage' and 'standard'. The Word format is often needed because 3rd parties use it... because it's often used. Whether or not the Word format is any good is another matter.

You could define 'any good' as meaning that someone other than a geek who wants to read your literary gem 20 years from now will be able to do so (provided of course the storage media have been maintained and kept up to date). 20 years is less than the lifetime of an aeroplane or a medicine.

The reason for wanting standards is that software producers, left to to their own devices, will produce formats that are upwards and/or downwards incompatible with different versions of the same offering. And, of course, as incompatible as possible with rival products.
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If Microsoft thinks the only way create a moat around their operating system business is through patents, then they are not relying upon their ability to innovate. Some say the purpose of the patent is to give a business the room to grow. I say that patents allow a business to stand on the hands of others instead of continuing to innovate. Without patents, businesses are forced to continually innovate to keep ahead of others. Patents are monopolies and have no place in a free market.

It seems to me that, to Microsoft, in their perfect world, there are no alternatives and everyone uses Microsoft software, development tools and standards. They prefer to destroy competition and thus, alternatives, rather than to actually compete with others. Once this nirvana is achieved by Microsoft, stock holders and executives could rest easy while the rest of us work. If that is what they want, they might feel more comfortable in a communist country.

To sum it up, when it comes to patents, Microsoft looks like this.
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wow, nice comment!
lightweight 12th Aug 2009
Yes, patents are an anti-market device - a government granted market distortion intended to give individuals and businesses an incentive to innovate... patents didn't exist until the industrial revolution, where huge capital investment was required for much innovation... and people innovated before that... With software, the capital investment is trivial, and innovation is rampant even though almost no software developers consider patents. It's only entrenched monopolies who consider patents worth their cost: they use patents like land mines in an attempt to stymie possible competitors who would innovate past them. Microsoft are a lot of things, but "innovators" is seldom a term used to describe them (except in their own market spin).

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