Hi!

     http://www.theregister.co.uk/2004/04/15/fat_patent_review/

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Patent Office asked to review Microsoft FAT patent

   By [43]Andrew Orlowski in San Francisco
   Published Thursday 15th April 2004 21:24б GMT

   Microsoft's patent for the FAT file system - the basis for the
   company's first salvo in its licensing offensive - is to be reviewed
   by the US Patent Office, at the request of a free software group.

   Microsoft introduced its first ever intellectual property licensing
   program in December, having hired the senior IBM executive responsible
   for building Big Blue's patent revenue stream from zero in 1985 into
   what's now a billion dollar business, Marshall Phelps. Redmond calls
   it "liberalization", and set the royalty payments relatively low for
   its intended customers, such as camera manufacturers who use the FAT
   file system for removable storage. But any royalty fee poses an
   insurmountable obstacle for free software developers, the attorney
   behind the request told us today.

   "Free software is licensed in a way that prohibits royalties - you
   can't pay Microsoft a license and distribute your software under a
   free software license," says Dan Ravicher, executive director of the
   Public Patent Foundation which has filed the request to invalidate the
   patent.

   Although the open source community has been transfixed by the SCO
   case, Microsoft's threat is far more serious, as it seeks to make
   distributing patent-encumbered free software illegal. If Microsoft
   asserts more intellectual property claims under a royalty bearing
   license, if these claims affect free software, and if Microsoft
   chooses to uphold its rights and wins, then free software developers
   would have little option but to stop work under existing open
   licenses. That's a lot of ifs, but Microsoft has been unsuccessful in
   impeding the growth of open source software so far, and has shown it
   has both the means and motive. If successful, today's licenses would
   eventually become a curious historical footnote for future computer
   science students.

   According to the Public Patent Foundation's request, "the '517 patent
   is causing immeasurable injury to the public by serving as a tool to
   enlarge Microsoft's monopoly while also preventing competition from
   Free Software." "Microsoft is using its control over the interchange
   of digital media to aid its ongoing effort to deter competition from
   Free and Open Source Software. Specifically, Microsoft does not offer
   licenses to the '517 patent for use in Free Software. As such, the
   '517 patent stands as a potential impediment to the development and
   use of Free Software because Free Software users are denied the
   ability to interchange media with machines or devices running
   Microsoft owned or licensed software."

   The says that Microsoft's FAT patent (5,579, 517) is invalid because
   of three prior art patents, filed by IBM and Xerox in 1988, 1989 and
   1990. Microsoft was not granted '517 until 1996.

   Ravicher told The Register that he'd welcome a move by Microsoft to
   license their portfolio for use in free software under reasonable
   royalty-free terms. ╝
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