Meetings/Special Meeting 2006-11-27

From openSUSE

Meetings

This meeting was meant to discuss the Novell/Microsoft deal.

It was held in the #openSUSE-project Freenode IRC channel on Monday 2006/11/27 18:00 CET (17:00 GMT)

Agenda

We discussed only questions regarding the Novell/Microsoft deal.

For other questions about openSUSE, please look at the regular meeting on 2006-11-22.

Please check out the documentation we have so far, many questions should be answered there:

Nat Friedman, Holger Dyroff and AJ are happy to answer all your questions in the chat.

If you can't participate, please enter your question below:

Q&A Section

Your Name Question/Comment
Alan Pater Software Libre and software patents are not compatible. Technical compatibility agreements are all good, no matter with whom. But the patent thing is wrong, not to mention irrelevant in most of the free world.

Will Novell use all these millions to defend user freedoms by working to de-legalize software patents in the countries it operates in?

Dunes Microsoft is already using the agreement to suggest the OS/SUSE community is using patented Microsoft technology. How should we respond to such suggestions? Imho the suggestions by Microsoft should be disarmed and the suggestions have to stop.
Saill According to Microsoft's "Community Commitments", anyone submitting "Original Work" to "openSUSE.org" is entering into a covenant with Microsoft wherein Microsoft agrees not to pursue patent violation litigation against the submitter, but explicitly refuses to offer the same benefit to subsequent users of the submitted work. It has been noted that entering into a covenant that gives the author a freedom (from threat of patent litigation) without extending this same freedom to others who use or modify the code violates both the spirit and the letter of the GPL, which says in its preamble that if you distribute software under the GPL "...you must give the recipients all the rights that you have".

My question: Is there any way to create a path for Suse users and developers to communicate code fixes and/or bug reports to the Suse engineers without entering into such a covenant?

Saill Under the business collaboration agreement, Microsoft has paid $240 million to Novell for "approximately 70,000 coupons for SUSE Linux Enterprise Server maintenance and support per year". Under the five year term of the agreement, that comes out to 350,000 SLES "coupons".
  • Microsoft is therefore paying nearly $700 per "coupon", approximately double the cost of a one-year basic SLES subscription.
  • On page 23 of Novell's most recent quarterly report filed with the SEC they reveal that their "Open Enterprise Server" produced revenues of less than $90 million in the previous six months. This means that Microsoft has paid Novell two and a half years worth of SLES revenues. This seems both very optimistic and very generous on Microsoft's part.
  • Microsoft will spend $12 million annually plus $34 million over five years to market SLES/Windows virtualization. This is $19 million annually. On page 5 of the Novell quarterly report it shows that Novell had nearly $190 million of sales and marketing expenses in six month, or $380 million annually. Again, it seems very optimistic that Microsoft will be able to resell so much SLES with so little budget, unless they plan to distribute SLES at a heavy discount.

My question: The high price paid to Novell does not look like a wise investment on Microsoft's part. Does anyone know if there is some unpublicized aspect of the deal that makes it more advantageous to Microsoft?

Saill According to the Microsoft FAQ, under the terms of the technical collaboration agreement "the two companies will create a joint research facility at which Microsoft and Novell technical experts will architect and test new software solutions".

Does anyone know the details of how this will work, especially with respect to virtualization? Will Novell be sponsoring a collaboration between Microsoft engineers and the Xen team whereby the MS engineers help optimize Xen for a Vista guest? Will Novell engineers be assisting Microsoft in virtualizing Suse Linux on a Vista platform? I can understand why Novell could use interoperability assistance from Microsoft due to fact that Vista is closed-source, but why would Microsoft need such assistance from Novell when all code and documentation of the Suse Linux operating system is available to the public?

My question: This offer to collaborate technically with Novell does not look like good business on Microsoft's part. Can anyone explain what Microsoft gets out of this collaboration?

Saill (wearing tinfoil hat) Are there no worries that any Vista on Xen interoperability may be for just for the short term - only long enough for users to become dependent on such convenience?

My question: How deeply and securely can one "interoperate" with a set of technologies whose source code is kept secret?

Saill (hat off) Under the patent collaboration agreement, according to the Form 8K filed by Novell with the SEC, "Microsoft will make an up-front net payment to Novell of $108 million, and Novell will make ongoing payments of at least $40 million over five years to Microsoft based on percentages of Novell's Open Platform Solutions and Open Enterprise Server revenues."

The reason given in the Microsoft FAQ for Microsoft's higher payment is "(the) net balancing payment from Microsoft to Novell reflecting the larger applicable volume of Microsoft’s product shipments". This does not make sense in terms of how patent litigation works. One company does not sue ALL the users of anothers products for patent violations. Rather they target one or two companies that have "deep pockets", as Daimler Chrysler was targeted by SCO. Thus each of the customers of a huge company is actually statistically safer from litigation than each of the customers of a smaller company. This method of calculating patent protection payment does not make sense.

A second reason for Microsoft's higher payment was given by Ron Hovsepian in his Open Letter to the Community of 20 November in which he says: "Novell has a significant patent portfolio, and in reflection of this fact, the agreement we signed shows the overwhelming balance of payments being from Microsoft to Novell." This also makes little sense, given that Microsoft holds 5834 US patents, compared to Novell's 279. Some argue that Novell's patents tend to be "stronger", i.e. more likely to hold water in court due to true originality of ideas. Nonetheless, Microsoft's ability to threaten litigation is much, much stronger. This second reason for a net payment from Microsoft to Novell makes no sense either.

My question: The high price paid to Novell does not look like a wise investment on Microsoft's part. Does anyone know if there is some unpublicized aspect of the deal that makes it more advantageous to Microsoft?

Rayjhax This seems to renege on Novell's prior committment "use its patent portfolio to protect open source products against potential third-party patent challenges, meaning that Novell is prepared to asserts its patents against such third parties", since they covenant not to sue Microsoft only shielding Novell Enterprise users from direct lawsuits. Even Novell Enterprise users, having paid the tax Microsoft claims is due to them through Novell, seem not immune from the effects of lawsuits or FUD threats against other entities encouraged by the pact, right? Clearing the way for Microsoft lawsuits and FUD, which Microsoft has confirmed, seems like the stupidest thing since Novell squandered Unix assets on SCO, so why does Novell consider this a good thing?
Rayjhax Where is the clause nullifying the pact if Microsoft files suit against non-taxed users of Free software, at which point, the pact is revealed as a patent license and Novell seems in clear violation of GPL v2 and loses the right to support the very enterprise customers it purported to protect? Doesn't this transform Novell, like SCOG, into a company only able to sell purported IP licenses without being authorized to distribute the program? Caldera, too, thought at first that they could get away with continuing to distribute while violating GPL v2, didn't they?
Rayjhax Will you be providing an option for your paying customers who do not want any portion of their money to be sent in per-seat fees to Microsoft as a tax, but would rather have the money spent advancing the Linux community? If a majority of your paying customers were to choose this option, do you have the flexibility to rescind the pact early, or have you sold out for the next n years at least?
Marcell What will Novell do when MS starts to sue other linux distros (ie. community driven Debian, Gentoo, Arch...) for patent infringments? Suggest paying 40m in cash?
Marcell In FAQ on

http://www.novell.com/linux/microsoft/faq_opensource.html says: "We maintain that Mono does not infringe any Microsoft patents." Does that mean that MS maintain that Mono does infringe Microsoft patents and they said that explicitly setting up agreement with Novell so that's the reason why you didn't put in FAQ this statement: "Mono does not infringe any Microsoft patents."

Martin (cb400f) Two Questions:

1) Do Novell believe that MS infringes Novell's patents? This is suggested by Simon Phipps, and actually by MS too

Phipps: "... word on the street is that Novell had some deep patent dirt on Microsoft..."

MS: "Microsoft and Novell have agreed to disagree on whether (..) certain Microsoft offerings infringe Novell patents."

2) If the public financial details are correct. MS will pay $240 million for 5x70.000 SLE coupons. According to my calculations that's about $685 per coupon. I understand that a coupon is a one year subscription. That's a pretty steep price, makes people, including me, think MS might be buying something other than coupons for the money. Maybe there's some relation to question #1, otherwise I don't like to think about what MS is buying.

N Bollow I am concerned that Microsoft, or some company financed by MS, might one day assert patents against free code that Novell has distributed as part of SuSE. What will happen then? Will Novell's patents portfolio be used in retaliation in order to protect the freedom of the threatened software package(s), like Novell has promised? If yes, how can that be done without violating the agreement with MS?
Please From LWN.net:

Posted Nov 21, 2006 9:16 UTC (Tue) by subscriber dwalters [Link]

If the IRC meeting is meant to provide some clarity about the Novell-Microsoft deal, it needs to answer some hard questions from the FLOSS community. Here are three questions I would like answered (and no weasel-words please, just straight answers):

Q1. Microsoft CEO Steve Ballmer stated last week that Linux "uses [Microsoft's] patented intellectual property". Does Novell share this view? If so, exactly which parts of Linux are considered to be affected by Microsoft patents? If you disagree, do you know which parts of Linux Microsoft considers to be affected by their patents?

Q2. What does Novell have to say to the large constituency in the FLOSS community who regard the patent agreement between Novell and Microsoft to be in discordance with the spirit and intent of the GPL V2, even if not with the letter (i.e. it gets through a loophole). In other words, does Novell agree that when it distributes the GPL'd software in SLED/SLES to customer A, that customer is not liable for patent infringement of any Microsoft patents, but when customer A then distributes the GPL'd software in SLED/SLES to person B, person B is potentially liable for Microsoft-patent infringement?

Q3. It seems almost certain that the loophole which may make the Novell/MS patent deal permissible under GPL 2 will be closed in version 3. When new versions of great swathes of software components vital to all GNU/Linux distributions (e.g. compilers, tools, the C library, and many other components) are licensed under GPL 3 in 2007, what will Novell's response be?

The last one is the most important question that needs answered in my view, because until I get a satisfactory answer to that question, there's no way I can recommend Novell's Linux to any enterprise customers in good conscience. As it stands, it seems to me that there's too much of a risk that future versions of SLES/SLED (which will include components licensed under GPL 3) might become undistributable if the Novell-Microsoft agreement still stands.

Sid Comment

Well i'm getting a little confused here. If you think of it you could come to the conclusion, that the open source concept is nothing but a very clever way to take advantage of developement and creativity without having to pay for it? Mayor companies today place parts of their patent stock at the open source comunitys disposal in order to get their own products enriched for free! Open Source is likely to save them millions and millions and on top of that all the developers are highly motyvated. It iscommonly known that it is quite difficult and very expensive too to get people to work with such dynamic power if they are in salaried employment.

Why do i think so? Well all the efforts and the hype created about this thing surely doesn't come out of nowhere. There are many many topics nowadays that are of mayor interest to millions of people but none of them gets quite such an attention. So...obviously open source is ment to become pupular. But this fact has quite certainly nothing to do with the undesputedly positive basic idea of open sorce development.

glasseyes What are the exact terms of the individual, non-commercial developer patent non-assert? Who is covered and who is not?

The terms of the individual, non-commercial developer patent non-assert are on www.microsoft.com/interop. You are covered if you are doing non-commercial open source software development. This includes individual enthusiasts, such as a student or a developer who does work on his own time on a project of personal interest to him. If you are compensated for your development, then your activities are considered "commercial", and you would not be covered.

My question: What do you mean by 'compensated for development'? That sounds like sponsorship to go to GUADEC or another meeting is covered, or any other help you get from the community. Are you trying to say that only people employed working as a contractor for companies are "commercial", or that anyone compensated in any way for developing is "commercial"? And which page are the terms of the non-assert on?

Rayjhax What does Novell think we should make of their blatant ignoring of the real questions including these on this list and pursue straw men? One more dirty deed done by Novell, aka Scovell? I will ask for Gnome, true to its roots and the reasons for creating an alternative to KDE, to adhere strictly to gpl v3 and reject things like mono from Novell, who has demonstrated that they are treacherous to the community.
Mike What exactly did the references to "mixed source" in the press conference mean? I feel as if this term and its implications have been left out of the publicity spotlight, even though no clear explanation about them has been made. In the IRC chat, Nat Friedman said, "We're going to write new virtualization code, new Open XML code, and release it all as open source." If these two components are going to be open-sourced, then what exactly will be closed-source? Is it just the eDirectory/Active Directory stuff? Will the Samba project and/or other Linux vendors end up at a loss because of this? Is Novell essentially creating proprietary add-ons to Linux so they can have the one and only "bona-fide" Windows-interoperable Linux distro out there? If this is the case, what incentive do other Linux vendors have to collaborate with Novell in the future?

Also, one more question regarding Mono. Miguel de Icaza has said that the patent protection agreement is important for Mono, apparently because it ensures that individual Mono developers/users can't get sued. But given this, what is the incentive for other commercial Linux vendors (such as Red Hat and Ubuntu) to distribute Mono, if they risk getting sued by Microsoft (because they are not part of the patent protection agreement)?


2006/11/27 openSUSE Special Meeting transcript