Devil's Advocate: Microsoft's foolish patent policy

Company out to patent innovations that precede its existence...

By Martin Brampton, 7 June 2005 07:00

COMMENT Microsoft's XML-related patents seek to convince the public it believes in open formats while requiring them to pay for access to their data. The solution, says Martin Brampton, lies with the user.

Is it really true that Microsoft has patented the transformation of objects into XML? That would certainly be proof, if proof were needed, that so-called intellectual property has little to do with innovation.

Software objects involve ingenious ideas that have had growing attraction. The concepts were always sound, and they were all invented before Microsoft even existed. But their use was limited because applications were restricted in scope and computer power was scarce. As those factors changed, so objects became far more central to computing.

Likewise, although XML itself is a relatively recent phenomenon, it is based on SGML. And SGML was also invented long before the foundation of Microsoft. Again, it was a question of timing, as the tantalising goal of building self-describing data looked to be achievable with rising hardware capabilities.

It is reported that Microsoft has now achieved a patent on the transformation of objects to XML and vice versa. This is a pretty bizarre thing to happen. As an industry analyst, I became aware of XML as soon as it started to make waves. My immediate reaction was that XML documents were objects without the behaviour.

Now that was hardly an astonishing insight. I would never have expected to rush off and patent it, even if I could afford to patent anything. It was an insight that was common to anyone who had at least half an understanding of both objects and XML. I must have discussed the point with numerous people, and most likely spoken about it at public conferences. If it is a patentable idea, then the whole patents system is demonstrably absurd.

If large companies are to be granted patents on ideas that have been commonplace for years and are based on fundamental concepts well understood for decades, they might as well be given taxation powers. The idea that their revenues are hard won in competitive markets will be defunct, if it is not already.

The reality is probably just a little more complex. The patent is most likely less wide-ranging than recent reports would suggest. Microsoft's efforts in relation to XML patents have mostly been concentrated on achieving two contradictory goals. One is to give the impression that Microsoft software, especially Office, is storing its data in an open format. The other is to make it impossible for other software vendors to handle data from Microsoft products, except perhaps after making substantial payments to Microsoft.

Provided Microsoft restricts itself to such relatively limited goals, it may well succeed in exploiting the patent regime, which is anyway slanted towards the interests of large companies. The only remedy lies in the hands of the pusillanimous users of packaged software.

It is extraordinary that so many organisations have permitted so much of their information to be locked into proprietary mechanisms, usually without a second thought. It is a commonplace that information is a valuable asset, yet people seem carelessly to give others the right to control it.

A reasonable starting point for a balanced commercial negotiation for software would seem to be that the data belongs to the organisation that creates it, not to the software supplier. The creator should be prepared to pay a reasonable price for the use of software. However, a prudent software purchaser would insist that the data will always remain fully accessible, even if use of the software ceases. Simply accessing one's own data should not be grounds for further payments.

From a mixture of carelessness and inequality of negotiation power, software buyers have generally failed to implement this principle. In the end, they pay a high price for this. Just how high the price can go before provoking retaliatory action remains to be seen.

Comments

There are 11 comments. Join the discussion

  1. 1. David J Walker

    Next, the wheel!

  2. 2. Jay Bal

    This has been going on for a long tiime! We had a similar discussion about the original Dolby noise reduction patent, any electronics engineer at that time was aware of it and many used similar band pass filters. The idea that it was patentable seemed absurd!

  3. 3. Knut Boehnert

    And in not too far future the same regime will grip Europe if nothing gets done about the absurd patent reform law.

    The problem is not with Microsoft - it's just the most closely watched company that takes patents to the extreme to shut out competition. But all proprietary companies do it.

    But the more absurd the patents get the better it might be in the end. If the patent law proves and defines itself ad absurdum then governments will be forced to maybe revoke patents on software in total.

    It would be a fight to the death for some companies who haven't adapted to the new market place like IBM.

    Time will tell but at least there can be hope that in the end proprietary software might end up as a small market niche.

  4. 4. Christine Denniston

    US copyright law allows you to copyright a song written by somebody else - just so long as they haven't copyrighted it in the States first. Then they have to pay you to play the song they wrote. It's not about justice. It's about being the first to grab the land before any other wagon train gets there. It's the spirit that made the US a global power...

  5. 5. Jenny Pearce

    Martin foolishly misunderstands how patents work - a patent can only be valid when it is focused on something that is novel. Neither Microsoft nor anybody else could claim that XML is new. However it is possible to protect new ways of using XML - just as it is possible to protect new ways of using wheels. The point of the patent system is to define the area of novelty, and give a time limited monopoly to the inventor who tells the world about their innovative advance. Would it really be preferable for all innovations to be protected by corporate secrecy?

  6. 6. Jenny Pearce

    Martin foolishly misunderstands how patents work - a patent can only be valid when it is focused on something that is novel. Neither Microsoft nor anybody else could claim that XML is new. However it is possible to protect new ways of using XML - just as it is possible to protect new ways of using wheels. The point of the patent system is to define the area of novelty, and give a time limited monopoly to the inventor who tells the world about their innovative advance. Would it really be preferable for all innovations to be protected by corporate secrecy?

  7. 7. anonymous

    Don't blame Microsoft - Blame the law. This is the absurdity of patenting software (which after all is just a process, like walking, drinking a beer or baking a cake).

    Microsoft is going to have to patent things just to protect it's business. If it does not then it's competitors will and then it will end up paying fees to it's competitors.

    What's worse is that the EU wants to bring in software patents as well.

  8. 8. Douglas Jackson

    It is interesting that the Patent system can be abused like this.

    Here is Australia, we have an Innovation Patent. It is simply a case of typing some data into a form, quote a credit card number, and your Patent is in the mail. One of the steps in the form is for you to tick a checkbox that says that your idea is unique... That was how the Inovation Patent on the Wheel was dis-allowed when an enterprising atourney got too clever. I seem to recall that the conversation went along these lines:

    Commissioner: Did you lodge a fraudulent claim? Remember that we de-register atourneys who act frauduntely.
    Atourney: Hmmm.
    Comissioner: That little check box says you invented it. Did you actually invent the wheel?
    Atourney: I think that I have inadverntantly lodged some inaccurate data. May I withdraw the application?
    Comissioner: We will start writing the system to allow applications to be withdrawn. That will take a little while. In the mean time, sign here...

    Ya sends ya money to the PO box...

    Then you fight for it in court. (Thats what the Patent system is actually about.)

  9. 9. anonymous

    In response to Jennys' comment above.

    I am not sure you know about Australian Secret Patents. In exchange for not divulging your innovation to the public, you are granted a patent. Hmmm.

    These are used for little companies like TWA, Boeing, etc

  10. 10. Marc Wilson

    This is just another plank in the platform of open-source. When customers ask me to supply MS office products now, I point them to OpenOffice instead, and bill them for the consultancy.

    A massive boycott of MS office, sadly, seems unlikely- but customers moving to alternate platforms may get the message across. Local governments in Europe and South America have led the way here, moving towards Linux and Open Office. If some larger corporates were to do the same, it might gain their attention.

  11. 11. Marc Wilson

    In response to the posting about "Secret" patents, I believe that the US has something similar, called "Submarine" patents IIRC.

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