ZDNet:  Reviews | News | Downloads | Prices

AppsNetworkingSecurityeBusinessHardwarePlatformsIT Products

 App Dev  |  Collaboration  |  Data Mgmt  |  ERP  |  Java  |  RDBMS  |  SFA  |  Web Services  |  xSP  |  more...















1. IBM, Microsoft patents pose dangers
2. HP withdraws support
3. Exercising their options
4. Unstoppable duo
NetWorld+Interop 2002: Everything network  
P2P makes a corporate play  
Intel CEO Craig Barrett unplugged  
Outsourcing net management can ease TCO  
Gartner Symposium/ITxpo 2002  
EMC: Storage leader's perilous perch  
The incredible shrinking Internet  
Face to face with Carol Bartz  
More special reports...  
Resources
IT Product Finder
Special Reports
Downloads
Tech Jobs
White Papers
RFP Center
Letters to the Editor
Subscribe to Newsletters
Events Calendar
Register for Classes
Online Book Library
Contact the Editors
E-mail Publishing
Managed Hosting




Search:   Premier sponsor
Oracle


IBM, Microsoft patents pose dangers
By David Berlind
April 12, 2002
back to intro
TalkBack!
E-mail this story!

Printer Friendly


IBM and Microsoft have been quietly busy behind the scenes for the last two years building a toll booth that could position the two companies to collect royalties on most if not all Internet traffic.

While the technologies that form the foundation of that toll booth have yet to be officially recognized as standards by an independent standards body, the collective strength of IBM and Microsoft could be enough to render Internet standards consortia powerless to stop them.

Click Here!

The potential for the two giants to erect a toll booth is tied to the likelihood that Web services protocols such as SOAP, WSDL, and UDDI--and the related ones to which the two companies hold patents or other intellectual property rights--will one day be as important as the standard protocols (such as TCP/IP and HTTP) on which the Internet is based today. Web services and the protocols that make them possible are destined to play a major role in most if not all electronic commerce as well as other Internet traffic.

If the protocols do become standards, either by virtue of an independent standards organization's imprimatur or by attaining a de facto status, IBM and Microsoft--or any other company that maintains the intellectual property rights to them--could legally impose royalties on that traffic. In fact, any protocols that become a part of the core Internet infrastructure without having been made available on a royalty-free basis could guarantee the owners of the intellectual property the right to place a tax on the Internet traffic that depends on those protocols.

That tax could show up in both direct and indirect ways. Web sites that use non-royalty-free protocols--to which IBM and Microsoft claim intellectual property rights--could be subject to per-use or annual licensing fees. Competitors to IBM and Microsoft could be forced to pay royalties before they are allowed to sell tools and products for developing those sites. These vendors, in turn, might decide to pass on their additional costs to customers, or they might decide not to develop and sell their products--thereby reducing the number of competing alternatives. In the least likely scenario, users of Internet applications that depend on the protocols could be asked to pay based on metered use of those protocols. Currently, no plausible or globally scalable mechanism exists for doing so.

No standard policy
For the most part, standards-setting for the Internet and Web has taken place within the working groups of two organizations: the Internet Engineering Task Force (IETF) and the World Wide Web Consortium (W3C). Until recently, neither organization had maintained a policy requiring vendors to make the intellectual property (IP) they contribute to the standards setting process available on a royalty-free basis. According to W3C Patent Policy Working Group Chairman Danny Weitzner, "Despite the lack of a policy, there has always been an understanding amongst the various contributors that the Internet and the Web wouldn't be possible or scalable unless their contributions were available to everyone on a royalty-free basis."

But that gentleman's agreement has been tested several times over the years and it could end up being tested again by Microsoft and IBM. According to documents on the W3C's Web site, IBM and Microsoft not only own intellectual property within specific Web services protocols, but also have no intentions of relinquishing their IP rights to those protocols should they become standards. The documents indicate that the two companies are currently maintaining their rights to pursue a reasonable and non-discriminatory (RAND) licensing framework as opposed to a royalty-free-based framework. The RAND framework is widely acknowledged as the one that keeps a vendor's options open in terms of being able to charge content developers and Internet users a royalty for usage of relevant intellectual property.

 Next page 1 2 3 4  :  HP withdraws support 


David Berlind is Editorial Director of ZDNet's Tech Update.

Email author   

ARTICLES
 IBM Power Play: Plotting a return to dominance

 Web Services Update

 Will patent disputes spoil the Web's success?

NEWSLETTERS
Sign up for these related newsletters: Tech Update Today 
 More newsletters
Visit the Enterprise Applications Update Center

E-mail this story!
Printer Friendly

 TalkBack: Post your comment here
       Re: IBM, Microsoft plot Net takeover  Marvin Goembel

       Re: IBM, Microsoft plot Net takeover  Ron Uncapher

       Re: IBM, Microsoft plot Net takeover  Bryan Gray

       Re: IBM, Microsoft plot Net takeover  Larry LeGore

       Re: IBM, Microsoft plot Net takeover  Frank Lohmeyer

       Kudos   Jason Epperson

       Re: IBM, Microsoft plot Net takeover  david leed

       Re: IBM, Microsoft plot Net takeover  Ron Johnson

       Re: IBM, Microsoft plot Net takeover  Dennis Bianco

       Re: IBM, Microsoft plot Net takeover  Paul Ricca

       I wouldn't bet in IBM  Gregg Harcus

       Re: I wouldn't bet in IBM  P Stroud

       Re: I wouldn't bet in IBM  Gregg Harcus

       Re: IBM, Microsoft plot Net takeover  Phil Lo Galbo

       Re: IBM, Microsoft plot Net takeover  Gregg Harcus

       You had better have cold hard facts.....  Debbi Card

       Take it to who?   Mark Hotchkiss

       Re: You had better have cold hard facts.....  Tom Hite

       Re: You had better have cold hard facts.....  Michael Eiden

       Re: You had better have cold hard facts.....  daryl datz

       Re:   Joe Viola

       Re:   Chris Maxwell

       Re:   Paxton King

       Re:   Alastair Nicol

       Oh please, a sense of proportion here!  Robert Lallier

       Re: Oh please, a sense of proportion here!  Richard Brown

       Re: Oh please, a sense of proportion here!  Dan O

       Re: Oh please, a sense of proportion here!  Thomas McMullan

       Re: Oh please, a sense of proportion here!  Gregg Harcus

       Re:   Pete Grondin

       Re:   Todd Siskin

       Re:   Paul Mulcahy

       Would spark another open source off shoot  durandal 00

       Re: IBM, Microsoft plot Net takeover  Jeff Beard

       Re: IBM, Microsoft plot Net takeover  Joseph Nicholson

       Re: IBM, Microsoft plot Net takeover  Internet User

       This is a crock!  Lynn Withrow

       Re: This is a crock!  Joyce Perkins

       Hmmm, Didn't Rambus and Intel Try This?  Donald W. Shantz

       Re: Hmmm, Didn't Rambus and Intel Try This?  Leon Letto

       Other countries will never allow this  JON BAIN

       Absurd  Roy Tyrell

       Nice Reporting!  Gary Edwards

       Re: IBM, Microsoft plot Net takeover  Michael Nehring

       Re: IBM, Microsoft plot Net takeover  Chris Maxwell

       IBM, Microsoft plot Net takeover  David Bright

       Re: IBM, Microsoft plot Net takeover  A Grant

       Hidden Costs  Glen Tippetts

       Re: IBM, Microsoft plot Net takeover  Tony Burcham

       Re: IBM, Microsoft plot Net takeover  Curtis , The Man

More Replies







ZDNet
Services: Hosting Providers | Deluxe PCs | IT Jobs | Notebook SuperCenter | Daily Price Drops | Security

      CNET Networks: Builder | CNET | GameSpot | mySimon | TechRepublic | ZDNet

About CNET Networks 

About Us | Support | Your Privacy | Service Terms | How to Advertise | ZDNet Jobs
 
Copyright © 2002 CNET Networks, Inc. All rights reserved. ZDNet is a registered service mark of CNET Networks, Inc. ZDNet Logo is service mark of CNET Networks, Inc.