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Microsoft The Almighty Buck Your Rights Online

Sell Your Computers, Keep Paying MS For Licenses 689

An anonymous reader writes "Microsoft Licensing 6.0 requires a company to pay up on software maintenance when the computers that are covered under the license are sold off. Here's the kicker though: MS is no longer obligated to provide maintenance even though the contract is paid up! Read the Infoworld article."
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Sell Your Computers, Keep Paying MS For Licenses

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  • huh huh (Score:5, Funny)

    by Anonymous Coward on Wednesday April 09, 2003 @01:41PM (#5693993)
    Tell me Mr. Anderson: what good is a MICROSOFT LICENSING 6.0 if you are unable to KEEP USING IT AFTER YOU SELL YOUR COMPUTERS?
  • by ebuck ( 585470 ) on Wednesday April 09, 2003 @01:44PM (#5694005)
    Now that innovation!

    Mabye this is what they kept talking about during all of those trials.

  • remember..... (Score:5, Insightful)

    by Lxy ( 80823 ) on Wednesday April 09, 2003 @01:44PM (#5694008) Journal
    You don't own software. Software is a contract, and even though you shelled out $x for a piece of software, you are bound to the agreement. Transfering a Windows license is like any other contract.. read it carefully and make sure you're permitted to do so.

    I'm not saying that MS is good, quite the contrary. They will rape their customers for as much money as they can, but from a bunsiness standpoint they're just just doing business.

    If you don't like it, use linux.
    • Re:remember..... (Score:5, Insightful)

      by dachshund ( 300733 ) on Wednesday April 09, 2003 @01:57PM (#5694121)
      read it carefully and make sure you're permitted to do so.

      And if you don't like the terms, suck it up. MS has a monopoly on the desktop, especially in terms of business software. They can put any damned thing they want into their licenses, because most businesses have nowhere else to go.

      This story simply helps to illustrate the difference between having a monopoly and abusing one.

      • Re:remember..... (Score:5, Interesting)

        by Arcturax ( 454188 ) on Wednesday April 09, 2003 @02:21PM (#5694305)
        You honestly think one can't do buisiness using a Macintosh? Mac OS X is every bit as usuable as Windows, some may argue more so. There is certainly Mac software to fill about any need you can think of, and free high quality development tools just in case you find the odd thing that someone isn't currently supporting on the Mac.

        Don't believe me? Go to VersionTracker [versiontracker.com] and take a look at all the software you could ever want for that platform.

        True Apple does have licensing as well, but it's not near as arduous as Microsoft's, that and Apple supports open source far more than Microsoft ever has or ever will.

        When you factor in software and hardware costs, using the Mac isn't so much more expensive given that even though the hardware costs more, you get far better terms on licensing, that and your support costs are a lot less given that Mac's don't break down near as often as PC's. It may even be less, I remember a study which showed total cost of ownership of a network of Mac's was less than comparable PC's using Windows, but I can't remember where it was.
        • I wish to God they would, but they won't. If you run a business of anything beyond a dozen people, you cannot just drop your IT Infrastructure and switch to Macs and/or Linux. I have an iBook. I just installed Red Hat 9 on one of my home servers last night. I think they're great for doing what I want. But I am not a whole company. I also didn't invest hundreds of thousands of dollars into my current set up. Telling a business "Can't you just switch" or "If you don't like it, do use it" is completely naive.

          I

          • by RoLi ( 141856 ) on Wednesday April 09, 2003 @04:20PM (#5695595)
            I wish to God they would, but they won't. If you run a business of anything beyond a dozen people, you cannot just drop your IT Infrastructure and switch to Macs and/or Linux. I have an iBook. I just installed Red Hat 9 on one of my home servers last night. I think they're great for doing what I want. But I am not a whole company. I also didn't invest hundreds of thousands of dollars into my current set up. Telling a business "Can't you just switch" or "If you don't like it, do use it" is completely naive.

            I don't know why anybody would want to throw everything out overnight.

            But haven't it occured to you that maybe just stop upgrading Windows and using Linux boxes when the hardware needs to be replaced is a viable alternative.

            That's what I would do.

          • Telling a business "Can't you just switch" or "If you don't like it, do use it" is completely naive.

            Really, it's just a summary of the situation. Naive was the business assuming that MS wouldn't use their monopoly position to squeeze more and more money out of them in spite of their long history of doing just that.

            Even more naive is assuming that this is as bad as it will get. MS has made it clear that their license will get tougher than ever. The Bush administration has made it clear that it has no i

    • Re:remember..... (Score:5, Insightful)

      by Mac Degger ( 576336 ) on Wednesday April 09, 2003 @02:13PM (#5694256) Journal
      Yes, correct. But the only reason software is a contract is because we have let it become that. It's still rediculous: it's like the phones of old (at least in parts of europe) which you rented/leased instead of bought.
      Personally I want it spelled out to me: do I buy this or do I lease it. And for me, if I go to a store and buy something, without having to sign a piece of paper which I'd read very carefully, I have bought something. No matter what some clickthru EULA says.

      Of course, Licence 6.0 is nothing like that. But even so, I'd say that this is a perfect example of MS leveraging their monopoly position for vendor lock-in. due to the fact that it is unfeasable for many companies already running MS to switch to anything else [yeah, it's possible, but only with clear changeover protocols and policies...which these companies might not have]. This can have multiple reasons, from financial (retraining) to time factors (retraining ;) ) and many others. But the end result is that MS gains a lot of extra money for no effort, due to restrictive and amoral licencing which many companies jhust can't get out of.
    • Re:remember..... (Score:4, Insightful)

      by gilesjuk ( 604902 ) <giles@jones.zen@co@uk> on Wednesday April 09, 2003 @02:16PM (#5694273)
      Try buying a brand name computer without a Microsoft license though, Microsoft throw their weight around whenever one of the major suppliers like Dell starts selling naked PCs.

      Microsoft even go so far as to say that PCs without an OS installed are machines for pirates and even have a scheme where OEMs are rewarded for reporting people asking for such machines.

      They don't seem to be able to comprehend that a customer may already own Windows or wish to install an alternative OS.
    • by ashitaka ( 27544 ) on Wednesday April 09, 2003 @03:11PM (#5694745) Homepage
      This issue only covers the services provided under Software Assurance. (i.e. pre-paid upgrades.)

      When Licensing 6.0 first came out you had to pay the full cost of the Software Assurance right at the start. When MS found that companies balked at such a huge up-front capital cost they allowed for the payment to take place over three years. No interest, but no discount either.

      The issue arises when a company tries to divest itself of licenses covered by Software Assurance before the three years are up.

      What happens is that:

      1) The divesting company must pay the remaining amount of the Software Assurance agreement.

      2) Neither the divesting, not acquiring company receives any Software Assurance after the divestiture.

      What this means is that if the acquiring company wants Software Assurance on the transferred licenses they will have to purchase a brand-new SA agreement from Microsoft. If the divesting company sold their licenses after only one year, Microsoft would get TWO YEARS of SA fees for the same licenses for which SA had already been bought, essentially selling the same thing twice.

      There has GOT to be some law against double-selling.
    • Re:remember..... (Score:3, Insightful)

      by WNight ( 23683 )
      Do you own a book? The courts ruled that you do. Software is pretty much the same as a book. You can resell a book if you wish, the first sale doctrine said this in no uncertain terms. Ditto for software.

      In fact, the argument about software is that because you need to copy it to use it, you need a license. Not true, the US copyright code (which I'll use here for a common-ground even though I'm not from the US) specifically allows all temporary copies required for the normal use of the program.

      You can't vi
  • by saskboy ( 600063 ) on Wednesday April 09, 2003 @01:45PM (#5694013) Homepage Journal
    MS can do whatever the heck they want now. They can legally force an update on your OS if you have Windows XP.

    They have a monopoly, let's get used to it.
  • by GweeDo ( 127172 ) on Wednesday April 09, 2003 @01:46PM (#5694021) Homepage
    It is amazing to me how much power MS is willing to use and abuse so obviosly. If any company not in a monopoly pulled a stunt like this people would say "screw you, we are gonna use company XYZ's product instead!", but in many cases companies don't have that option due to the monopoly position that MS is in. Why oh Why can't the justice department come up with a means to end their monopoly and make them compete so companies don't have to bend over time and time again because the JD can't figure out what to do....
  • by stonebeat.org ( 562495 ) on Wednesday April 09, 2003 @01:46PM (#5694022) Homepage
    what if my computer catches fire, and is reduced to carbon? do i still keep on paying to MS?
  • by The Fanta Menace ( 607612 ) on Wednesday April 09, 2003 @01:48PM (#5694030) Homepage

    I've often wondered - I've got a Sony Vaio, which came for a licence for Windows ME (which I don't use anyway). But when the laptop eventually dies, does the licence die with it?

    Or am I allowed to move it to another computer?

    • by stratjakt ( 596332 ) on Wednesday April 09, 2003 @01:53PM (#5694069) Journal
      No, you got a discount from the retail cost of ME for the OEM copy that came bundled with your laptop. The OEM license is limited and for that computer and that computer only.

      If you pay full retail for a boxed copy, you can use it as long as you want, so long as you only use it on one machine at a time.
      • Damnit! Now I'll have to build my next computer in my Dell laptop case with the OEM sticker on the bottom!

        Of all the luck.
        • Which raises another interesting question... if a "computer" is actually just a collection of interchangeable parts, and if a licence is bound to one "computer"... which part of that computer is the license bound to? The whole thing? If I swap out the floppy drive, is it now a new computer? What if I rip everything out of the case and replace it with different stuff? What if I take everything out and drop it into a new case so that I'll have more room? What if I upgrade the Mobo and processor and keep everything else?

          I just thinking about ways to weasel an OEM licence into a new system... if I take the floppy out of an obsolete computer and drop it into a new system, can I claim that the "computer" the software licences were attached to went transferred along with the floppy drive? Logically of course not, but legally may be another matter.

      • If you pay full retail for a boxed copy, you can use it as long as you want, so long as you only use it on one machine at a time.

        I wonder if that's really true. I thought that even when you paid for it at retail you only got to run it on one computer, ever. That's what the whole Windows XP activation scheme is about.

        • No, the activation 'scheme' is to ensure its running on one machine at a time. You call MS to 'reactivate' - they purge the old record from the database, and put on a new one - when you install on another machine. (They've never really 'turned on' the activation servers to enforce this stuff).

          Its like my cable provider only allowing my account to be used from one cablemodem at a time. If I replace it, I have to call and tell them, they purge the old MAC address and enter the new one.

          Personally, I think
        • by sirshannon ( 616247 ) on Wednesday April 09, 2003 @02:18PM (#5694296) Homepage Journal
          yes, that is the way it works. Activation keeps you from running it on more than one PC at a time, but you can use it on other PCs when you trash/upgrade the old one. I gave a boxed XP Pro to a friend and he's reactivated the same copy at least 5 times in the last 14 months due to upgrades/replacements/giving away the POS it was originally on, etc.

          OEM versions only allow a single install on a single machine, which is why they are so much cheaper.
          • by Anonymous Coward on Wednesday April 09, 2003 @02:37PM (#5694459)
            This statement is incorrect. Compare the EULA before and after installing SP2 (or whatever the latest big service pack was). You'll notice a BIG change in the section labeled "Transfer".

            Originally, my retail box of Windows XP Pro stated I was explicitly allows to transfer XP from one machine to another, provided I deleted the first copy.

            After the upgrade, the EULA stated "The SOFTWARE is licensed with the HARDWARE as a single integrated product and may only be used with the HARDWARE." It goes on to state that if I sell the hardware, XP has to go with it.

            This is from a full retail copy, folks. Take a look at your own EULA, \windows\system32\eula.txt. Also note that I never saw any indication this EULA was being updated in the SP2 installation process (and I read the presented update EULA there in full).
            • Yeah, OK then... (Score:3, Interesting)

              by GeckoX ( 259575 )
              So you had a boxed copy of XP, and it's license, which came in the box, stated that XP could be used on any compatible hardware and transfered to other hardware at any time, as long as there is only 1 copy installed at any one time.

              And you think that their changing the EULA with a service pack update can force your original license to suddenly be bound to a single piece of fictitious hardware that the software wasn't purchased with in the first place?

              <quote character="Martin" show="The Simpsons">
              Ha
    • The answer according to microsoft is no. Some would argue that the first sale doctrine in Copyright law says differently, the truth is that it is impossible to determine until it is tested in court.

      However the article addresses the issue of business enterprise and site licenses and doesn't directly apply to consumers.

      IANAL so this is just what I would do, but I would not have any moral problem using it on a different computer. And since Microsoft/BSA are very unlikely to go after consumers who have
  • by Bug-Y2K ( 126658 ) on Wednesday April 09, 2003 @01:48PM (#5694031) Homepage
    ...is beyond me.

    Maybe Apple was right with their (globally lambasted) "Lemmings" super bowl ad in 1985. Business just blindly walked off the cliff and right into Gates/Ballmers' bank accounts.

    Of course I suspect if history had been different and we'd all ended up buying Apple's the result would not be that different. We'd have a Steve Jobs/Borg head icon instead perhaps. =)

    At least we didn't all buy Amigas... then we'd all have to off ourselves for being such bleating wankers.

    heh.

  • by emptybody ( 12341 ) on Wednesday April 09, 2003 @01:50PM (#5694044) Homepage Journal
    ..."What microsoft is really doing is saying, 'Hey, just recognize you are truly at our mercy.' "
    If you didn't already know that, you just haven't been paying attention.


    How many more reasons do companies need to dump Microsoft and go with unix/linux?
    • by Sylver Dragon ( 445237 ) on Wednesday April 09, 2003 @02:26PM (#5694342) Journal
      How many more reasons do companies need to dump Microsoft and go with unix/linux

      1 and only 1. The problem is, that 1 reason has to be that Linux/Unix/etc. have a similar level business app that just runs on them. None of this silly, get the source, modify if for a company's purpose, and then complie it. Ah, shit, ok, go find dependancies, complie. Damn, missed one, get that one, compile. Crap, that one had 4 more, ok get those, complie. Hey, we have an app that looks like hell and really doesn't do what we need.
      The *nix community needs to get some serious developer support before companies will really start to look at it seriously. Also the whole RTFM attitude is doing tons of harm to the movement as well. When the only support you can get for an OS is found on the web, and half the responses are along the lines of "RTFM 1d10t, y0ur a 1user, and 1m 37337" this does not instill confidence in that OS.
      Sadly, in the end, the things that make Linux attractive are going to be the same things that hold it back from taking more of the business desktop market.
      - It's free - Which usually means there isn't a company behind it that will support it.
      - It's open source - So you can modify it to do what you want it to do. This, of course, takes time and money, and there isn't a company you can go to and pay them to do it.
      Businesses like fire and forget solutions, they don't care about the politics of it. And for all its flaws, Windows is quick and easy to get going.
      • The *nix community needs to get some serious developer support before companies will really start to look at it seriously. Also the whole RTFM attitude is doing tons of harm to the movement as well. When the only support you can get for an OS is found on the web, and half the responses are along the lines of "RTFM 1d10t, y0ur a 1user, and 1m 37337" this does not instill confidence in that OS.

        Now now, you're comparing apples and oranges here.

        If you go direct to a Linux vendor like RedHat or a company like
  • by stratjakt ( 596332 ) on Wednesday April 09, 2003 @01:50PM (#5694048) Journal
    If I sign a 4 year maintanaince contract with Pedros lawn care, I have to keep paying even if I move and the new owners dont want them running around the yard spraying pesticide.

    The same goes with many other maintanaince/support contracts. Dont like it? Do business with someone else.

    We have customers who still contractually pay for support on HP big iron boxes that havent been plugged in for years.

    Another case of MSFT doing the same thing everyone else does, execpt (heres the kicker!) for some reason it's "evil" because you dont like windows.

    Big fat whoop. MS Licensing is a business support contract, and pretty much a standard one at that.
    • this will change (Score:3, Insightful)

      by tacokill ( 531275 )
      As businesses get wise to these kind of contracts, they will get smarter about entering into them. For years now, most companies have been "stupid" when it comes to IT -- but times are changing. Companies are getting MUCH more sophisticated about how they handle their IT.

      This is a short term problem.
    • by Carbonite ( 183181 ) on Wednesday April 09, 2003 @01:59PM (#5694143)
      If I sign a 4 year maintanaince contract with Pedros lawn care, I have to keep paying even if I move and the new owners dont want them running around the yard spraying pesticide.

      That's a rather poor analogy. Perhaps this would be more accurate:

      - Pedro demands the contract be paid in full prior to moving.

      - Pedro then refuses to care for the lawn even though the new owners want the service.

      - The new owners are forced to buy their own lawn care contract.

      • by sehryan ( 412731 ) on Wednesday April 09, 2003 @02:13PM (#5694252)
        Actually, the first post was a very good analogy. Look at it like this:

        I am with Sprint PCS and have a one year agreement with them. I choose to switch to Verizon before my agreement is up. I cannot use my Sprint PCS phone with Verizon, so I decide to sell it.

        1. Sprint PCS is going to charge me for breaking my contract.

        2. The new owner of the phone has to start their own contract with Sprint PCS if they want service. The remainder of my contract will not carry over to the new owner of the phone.

        This example is what actually happens if I were to do all of this. But we don't see Sprint PCS, Verizon or any of the other carriers posted on Slashdot.

        Fact is, this is just basic business. It only makes headlines on Slashdot because it's Microsoft.
        • by Carbonite ( 183181 ) on Wednesday April 09, 2003 @02:33PM (#5694412)
          Actually your analogy also has serious flaws. The companies in the posted article weren't trying to terminate the contract, they were simply transferring it to new owners. In many cases it would be the same person using the computer, just under a different company name.

          If John Smith changes his name to John Jones, does Sprint PCS force an "acceleration" of the original contract and then make John Jones sign a new contract? No, that would be absurd. However, if a computer that once was part of Company X is now part of Company Z, the contract must be paid in full, yet Company Z must now also purchase a new contract.

          The main reason your analofy doesn't hold up is because the situation are just too different. Cell phone contracts are relatively short (1-2 years) and inexpensive ($25-50/month) compared to software licenses. There's also numerous companies who offer very similar service. Microsoft is the only company who sells Windows XP, 2003 Server, etc. You can't go "somewhere else" unless you plan on migrating away from MS entirely. This is usually far too expensive, it's not at all like switching cell service. I do agree that companies need to read the contract much more carefully, but that doesn't excuse the fact that Microsoft is abusing its monopoly status.
          • But a single person changing names versus a company transferring part of itself to a new company, even if they are keeping all of the former employees and doing all of the same work, do not equate. Now if the company were to rename itself, then sure. But a separate company is a separate entity, which is not necessarily bound to any of the contracts held by its parent.

            Basically, the contract is non-transferrable, and there is nothing wrong with that. Maybe the prices that they are charging are being abus
            • A home mortgage analogy may be more appropriate, but it still doesn't hold. If I sell a house that I've paid $200K out of an original mortgage of $300K, I'll have to settle the remaining $100K. I get whatever the selling price is minus $100K.

              If you apply the Microsoft license situation to a mortgage, it might happen like this:

              I choose to sell my house to my brother for $1 (I'm a very nice guy, but want to avoid gift tax). As above, I've already paid $200K, so I settle the remaining $100K. The bank now dec
  • by Znonymous Coward ( 615009 ) on Wednesday April 09, 2003 @01:54PM (#5694077) Journal
    From the office of Iraqi Information Minister Mohammed Saeed al-Sahhaf :

    In post Saddam Iraq, Microsoft licenses you.

  • by Noryungi ( 70322 ) on Wednesday April 09, 2003 @01:54PM (#5694083) Homepage Journal
    Please do continue your efforts to rip^H^H^H fleece^H^H^H^H^H^H provide "value-added" propositions to your customers through your wonderful License Agreement.

    You are making my world domination^H^H^H^H^H^H^H^H^H job so much easier.

    Thank you so much in advance,

    Yours respectfully,

    Linus Torvalds
  • by Rinikusu ( 28164 ) on Wednesday April 09, 2003 @01:55PM (#5694091)
    The DOJ attempted to bring Anti-Trust against MS and has been completely INEFFECTUAL (no, really, exactly how has MS changed since then?). Even without the DOJ (and frankly, most people I know shrug their shoulders and wonder what the hubbub is all about), MS is driving the stake through it's own heart by creating an environment that causes it's customers to question their patronage. Witness the corporate desktops, server rooms, and some home desktops fleeing to Linux, not because it's necessarily better, but because of MS's attitude toward it's own customers ("We Own You."). When the cost of maintaining MS hegemony in your organization exceeds the cost of retraining and license policing, then you switch. It's happening (and it didn't have to be Linux, it could just as easily be a BSD).
  • The beauty of living under a régime of napoleonic civil code instead of the common law is that such a stunt could never be pulled, as every kind of transaction is rigidly codified in law...
  • Standard contracts (Score:3, Insightful)

    by sjbe ( 173966 ) on Wednesday April 09, 2003 @02:01PM (#5694148)
    My guess is that this is just a side effect of whatever the standard contract is. When licensing software you don't want to have to negotiate a different licensing agreement with each customer unless you have to. Of course one size doesn't always fit all so this sometimes has some unintended consequences. MS can afford to ignore some of these because there aren't exactly a lot of realistic alternatives. Behavior is nearly always explained by incentives.

    While I fully agree that this is not the most ethical behavior, But I also think this might fall under the category of "never attribute to malice that which can adequately be explained by stupidity". I think this is just something that was overlooked or ignored because it was problematic. Plus who else are you going to go to? (*cough* monopoly *cough*)

  • by cyber_rigger ( 527103 ) on Wednesday April 09, 2003 @02:01PM (#5694149) Homepage Journal

    Instead of whining
    here are some things that you can do.

    Ask computer manufacturers if their machines are linux compatible

    (especially laptops)video cards, sound cards, etc.

    Most have a toll free numbers.

    If the don't support linux ask "them when will they?".

    Ask software suppliers it they have ported their products to linux.
    Call their main office. Once one company listens others will follow.

    We need a "Linux Call the Manufacturer Day".

    They will get the message.
    • by dr-suess-fan ( 210327 ) on Wednesday April 09, 2003 @02:33PM (#5694415)
      OK,

      How does April 23rd sound ?

      Seriously. It's fine to say 'we should', we see
      that alot on slashdot (phone your political rep. etc.). Let's do something. Pick your favourite
      vendor that doesn't support linux yet, call them
      on April 23rd.

      I think we (slashdot readers) have more influence
      than we often think we do.

  • Not surprised (Score:3, Interesting)

    by bahamat ( 187909 ) on Wednesday April 09, 2003 @02:02PM (#5694163) Homepage
    I'm honestly no longer surprised when a new story comes out along the lines of "give MS money, get nothing in return".

    First it was per cpu licensing, then refund day, the MS tax on every name brand computer, licensing 6.0, expiring licenses, the "media center pc" (which is nothing more than a PC with a tv tuner), pay for support you don't (and can't) get.

    What totally boggles my mind is that in the face of so many alternatives in both the desktop and server markets (linux, sun, mac os x) people continue to pull down their pants and bend over for Bill.

    Not only do they not complain, but they do it willingly. People jump at the chance to hand over their hard earned cash to a bunch of crooks.

    Maybe MS knows their days are numbered and it's only a matter of time before people wake up out of the mass stupor blanketing this planet, and that's why they're milking those poor fools for all they can.
  • by spanky1 ( 635767 ) on Wednesday April 09, 2003 @02:02PM (#5694164)
    We are under EA (enterprise agreement) version 6 here at my company and this is how it works. Once a year you tell MS how many computers are using what software products. This only happens once per year. Yes, if you cut the number of machines in half you won't see an immediate savings until the next time you give MS your numbers.

    However, if you end up doubling your computers you come out ahead: you basically get free use of the software until you update your numbers with MS.

    This also means you could get free use of software if you only used it for part of a year. For example, if you give MS numbers each January, you could install extra stuff in February, remove it in December, and MS would never have to know you used it.

    The EA does end up saving money if you were going to upgrade all the time anyway, or perhaps only skip one version. If you tend to skip two or more versions, the EA would most likely cost you more money.
    • by Anonymous Coward
      We are also under an EA. I have three things to add to what you just said.

      1) Server liscences are NOT covered under the EA (so we are still in the normal Select/SA boat that this article describes for them).

      2) You do not actually pay Microsft for what you currently have but what you currently have and what, if anything, you expect to add this year. Also, if you added more than you estimated you settle up next year (ie the EA is a glorified deep discount volume liscence with no free rides).

      3) Unlike the s
  • by All Names Have Been ( 629775 ) on Wednesday April 09, 2003 @02:05PM (#5694195)
    Just you wait until, along with a new social security number, you're required to purchase a Windows 2014 license for your new child, along with lifetime maintenance.

    All in the name of curbing copyright infringement, mind you.
  • by fudgefactor7 ( 581449 ) on Wednesday April 09, 2003 @02:07PM (#5694211)
    All we need to do is get Congress to declare the current method of software "licensing" to be illegal; then force the idea that "once you buy software you BUY it--you can use it perpetually--but only one computer at a time, and if you sell it ALL your rights in the matter go to whomever you sold the software.

    End of problem. Unfortuantely, it's harder to accomplish than anyone can imagine. Which is why you all need to elect me as Emperor for life. And, just like my .sig says...
  • by Eric Smith ( 4379 ) on Wednesday April 09, 2003 @02:13PM (#5694249) Homepage Journal
    With Linux, when you want to transfer the license, you have to pay a transfer fee of 72.8 times the original license cost!
  • Major headache (Score:5, Interesting)

    by EZmagz ( 538905 ) on Wednesday April 09, 2003 @02:16PM (#5694274) Homepage
    For the last few months I've been doing short-term contract work for a major HMO in the area dealing with this kind of shit on a day-to-day basis. Let me tell you, it's a headache.

    We purchase all of the new PCs we order with a Microsoft EA SA agreement. It's a nightmare trying to keep track of which boxes at which location have what version OS on them, what kind of upgrades they're covered up through, and so on. There's a dedicated guy just for our department that does nothing but dealing with licensing.

    For anybody who's never taken the time to read through some of these contracts, print one out sometime or read through the EULA next time you upgrade Windows and be prepared to be suprised. Honestly, MS plays by their own rules.

    The crappy thing is there is no real alternative. There's over 50,000 computers in this organization. Switching these boxen over to linux isn't an option (sorry guys, I love linux as much as the next guy, but the average 50 year-old in HR ISN'T going to be able to use it). And as expensive as dealing with MS is, it's still cheaper than buying 50,000 Macs and running OSX on them. Besides, most propritery medical apps only run on Windows from what I've seen.

    • Re:Major headache (Score:4, Informative)

      by mla_anderson ( 578539 ) on Wednesday April 09, 2003 @03:04PM (#5694703) Homepage

      sorry guys, I love linux as much as the next guy, but the average 50 year-old in HR ISN'T going to be able to use it

      If Linux is properly configured the 50 year-old in HR will be able to use it as well as he/she uses Windows (which may not be very well, but that's another story). And the sysadmin gets an advantage that Linux is much easier to protect from clumsy users. My wife uses Linux at home, she cannot trash the system accidentally. When the kids start messing with the "buttons" they're only going to risk her files not the system.

      The only time I would recommend Windows is if there is a critical application that does not have a replacement in Linux. The list of those apps is getting smaller by the day.

  • by __aagmrb7289 ( 652113 ) on Wednesday April 09, 2003 @02:25PM (#5694330) Journal
    Someone spent a lot of time researching something pretty basic - if you sell a computer that has an "open license" (the license is not tied to the computer), Microsoft will allow the ownership of the operating system to transfer, but not the right to "free" upgrades. Umm, duh? Who, in their right mind, if they aren't giving way their software, would?

    DAMMIT! STOP MAKING ME DEFEND MICROSOFT!!! ARGH!
  • BFD (Score:4, Informative)

    by PapaZit ( 33585 ) on Wednesday April 09, 2003 @02:25PM (#5694337)
    Essentially, Microsoft are saying "We're going to sell you a three-year non-transferrable support and upgrade contract." Nothing wrong with that. They also let you make payments instead of paying for the full three years up front. Again, nothing bad about that. They DO specify that you have to pay off the balance on any machines that you sell, though. How's that any different than, say, requiring you to pay off your bank loan before you sell your car?

    It seems to be that nobody'd be complaining if they just required the entire payment for three years up-front and said"It's non-transferrable. Cope." People are pissed because Microsoft offers a payment plan, but they won't automatically transfer that plan.
    • by FredFnord ( 635797 ) on Wednesday April 09, 2003 @03:02PM (#5694692)
      The answer is, most contracts are in some way transferrable. If your aunt dies and leaves you a computer, its warrantee is transferred to you... in most states it's actually illegal to have it not transfer. If you sign up for three years' prepaid DSL in a house of six college students, and then transfer after the first year, you can (I have) transfer the service over to somone else's name, as long as they're at the same address. If your car comes with 60,000 mile power train protection, it doesn't matter if your car was sold eleven times, you're still entitled to it. (Unless your car has been sold as a salvage vehicle.)

      There are non-transferrable contracts, but those have to be scrutinized carefully. For example, the idea a non-transferrable *END-USER* software license has been invalidated by the courts a number of times. Right of first purchase comes with the right to transfer your license to anyone else. (Do you honestly think there would be any way of transferring licenses for MS software if this weren't the case? There is, as long as it wasn't an OEM copy of Windows... and even then you can transfer it as long as you sell the hardware in tandem.)

      Here we have a software purchase agreement which is nontransferrable. It's just that this one is for a big company, and so MS can, perhaps, get away with it.

      -fred
  • Deal Points (Score:5, Informative)

    by milo_Gwalthny ( 203233 ) on Wednesday April 09, 2003 @02:26PM (#5694345)
    Not that anyone who isn't actually buying or selling divisions of companies cares, but here are a couple of other things you might think about to make sure you're protected:

    - make sure each legal entity is the licensor of its own licenses (ie. Bluelight should have been the licensor, not Kmart); then when the division is sold or divested, it is transparent to Microsoft (you may lose some volume discount here, of course);
    - if you haven't done the above or are selling assets instead of equity, set up a permanent lease of the computers to the buyer instead of transferring ownership; make sure payments are structured (probably through some sort of escrow account or trust) so the lease is a lease and not a sale;
    - in a bankruptcy, ask the judge to tell Microsoft to stuff it, which he may well have the power to do, and if he's a Windows user will certainly *want* to do.

    Does it need to be said? IANAL.

    On a related note, why doesn't some unemployed entrepreneur out there start a company that buys unused MS licenses (for Windows and Office, say) from companies that are downsizing or going out of business, then resell them to large companies that are being audited by MS? I know a few that would pay decent money just to not have to sort out the mess that is their file cabinet full of licenses, even if they do lose SA.
  • by TrueJim ( 107565 ) on Wednesday April 09, 2003 @02:27PM (#5694351) Homepage
    Legislatures often pass bad laws. Their intentions are good, but the letter of the law often leads to ridiculous conclusions when taken to the extreme.

    It usually takes many years to discover how badly a law has been written, because it usually takes many years for people (or companies) to get around to pushing the wording to its logical conclusion. When Microsoft (or the RIAA, etc.) imposes seemingly ridiculously licensing terms on the public, they're actually doing us all a service in the long run, by quickly demonstrating to legislators that the applicable public policies are (in the long run) unworkable.

    We know Microsoft isn't going to "win" in the long run (they're losing our data centers already, and eventually they'll lose our desktops and office suites as well), but when they do these extremely silly things they actually help hasten their own eventual demise, by rapidly educating the public (and the policy makers) about what's wrong with current regulation.

    Getting laws corrected may feel like it's occuring with glacial slowness to those of us who already understand where things are heading, but it'll actually happen much more quickly than it would otherwise, the worse Microsoft behaves. So I say, heck ya Microsoft! Charge us twice for things you don't deliver...charge us ten times, twenty! Let's show the world what the phrase "illegal monopoly" -really- means.
    • We know Microsoft isn't going to "win" in the long run (they're losing our data centers already, and eventually they'll lose our desktops and office suites as well), but when they do these extremely silly things they actually help hasten their own eventual demise, by rapidly educating the public (and the policy makers) about what's wrong with current regulation.

      Are You so sure they won't "win"? They're working on that damn Palladium cruft that will make all Open Source software either expensive or just pl
    • Yeah, like my representatives read the EULAs.
  • Not exactly new... (Score:3, Informative)

    by graveyhead ( 210996 ) <fletchNO@SPAMfletchtronics.net> on Wednesday April 09, 2003 @02:28PM (#5694370)
    Anyone else remember a /. story from a couple of years ago where a teacher found a bunch of old 386 machines and installed a copy of Win3.1 on them for use by underprivledged children? IIRC, the machines themselves originally had a Windows license. MS tried to rape this guy and demand license fees for all the copies of the ~10 year old software.

    It sounds to me like they are just codifying their past behavior into lawyereese in their EULA.
  • by ChaoticCoyote ( 195677 ) on Wednesday April 09, 2003 @02:43PM (#5694525) Homepage

    I've been moving my work onto Linux, gradually, for several years now. I'm not an anti-Microsoft zealot by any stretch of the imagination; in fact, ten years ago, I was very pleased with many products coming out of Redmond. But as time has passed, Microsoft's products have bloated while their business practices leave a bad taste in my mouth.

    Their licensing policies are the last straw; their greedy stupidities drive me nuts. Example: I bought a machine recently that came with a new copy Windows XP. I installed Linux on that machine, wanting to put the XP on one of my other boxes. But this copy of XP won't upgrade an existing installation of Windows 2000! Microsoft's reponse: I can only install the XP on a the machine it is "assigned" to!

    Can someone please explain to me how Microsoft loses anything by my installing a "new" XP over an existing installation? Why do they care what machine I install the product on, so long as I've paid for it? Their arrogance is amazing; it is the result of corporate feudalism [coyotegulch.com]. I, for one, do not wish to be their peasant or peon.

    As it is, I do 90% of my work on Linux now; I have only one Windows machine in my office, and it is used to simplify my interface with the MS world. But my next book is being written on Linux using AbiWord, LyX, and TeX, and I no longer take jobs that require MS products. A minor financial hit, to be sure, but a choice I can survive.

    Microsoft lost me as a customer because of their attitude, not their product.

  • by Futurepower(R) ( 558542 ) on Wednesday April 09, 2003 @02:43PM (#5694535) Homepage

    License agreements are becoming more and more abusive. I decided to jump several steps ahead (short steps) and write the final EULA:

    The final license agreement:
    1. I can do anything I like.
    2. You have no power.
    3. You can't say anything bad about me.
    4. Everything belongs to me.
    I knew a 3-year-old who said this. He has since become an adult, which is more than I can say for some executives.
  • by MortisUmbra ( 569191 ) on Wednesday April 09, 2003 @02:49PM (#5694580)
    Is that even if MS went away tomorrow, we wouldn't suddenly have a great new OS to replace them. I mean, 12 years later Linux, while having made great strides, is NOT ready for mainstream yet.

    Sad but true.

    Once Linux becomes capable enough to make it mainstream MS won't be able to keep it out. Because there is little real financial burden on Linux. It's an open source product where ALOT of the work is done, in essence, for free. So MS can't bully it out of the marketplace by putting pressure on their vendors until the OS suffocates itself for lack of funds like a competing comppany would surely do.

    It's here to stay because nobody is paying for it, and nobody is financially burdened by it. So it developson it's own, with TONS of fierce competition from MS. And it does nothing but grow and grow.

    People should STOP complaining about Ms being a monopoly and START contributing to Linux/GNU.


    One of the above posters said if you don't like it, don't use it. Thats dead wrong. As with everything else in life, if you don't like it, do something to change it. Do something to enhance Linux and/or its acceptance.
    • *sigh* Linux is not a drop-in replacement for Windoze, and it was never intended so. If Windows suddenly disappeared from the face of Earth (I can dream, can't I?) then people would have to accept the alternatives, and they would be happy with it, just like the old-timers who loved going uphill both ways because they had no choice. Right now there's no such direct incentive for switching.
  • by Windcatcher ( 566458 ) on Wednesday April 09, 2003 @02:51PM (#5694597)
    ...why the US Army rejected Windows XP. Under NO--repeat, NO--circumstances are they willing to enter a situation where a vendor can shut them down. If push comes to shove because of file-format issues, Microsoft can look forward to selling *ONE* XP computer to the Army until they can convert anything involved into open formats. Period. End of story. (yes, I am somewhat in the know on this)
    • by gruhnj ( 195230 ) on Wednesday April 09, 2003 @03:24PM (#5694847)
      Uh, you must not be in AG. As a sysadmin for an AG brigade, I can tell you that I have alot of XP computers under my control. Not my choice mind you, but the Army DOES use XP. XP does your 201 file, your life insurance, and your orders. They may not be in a tactical enviroment, but XP is alive and well in the Army.

      PFC Gruhn
      G1/AG Automation, the Dilbert Guy
      I Corps, Fort Lewis, WA
      "Serve and Sustain"
  • by Futurepower(R) ( 558542 ) on Wednesday April 09, 2003 @03:23PM (#5694844) Homepage

    Lists of Microsoft Abuses:

    Overall abuses: Reasons to Avoid Microsoft [lugod.org]. (More than 200 in one year!)

    Abuses in one product: Windows XP Shows the Direction Microsoft is Going. [futurepower.net]

    Sometimes people confuse themselves by thinking of Microsoft as a software company that is abusive. It can be more clear to think of Microsoft as an abuse company that sells software.

    Judging from some of the things I've seen, there must be executives at Microsoft who every day energetically think of more ways to put the customer's back against the wall.

    I've spent more than 20 years studying things of this nature, and I think what's happening at Microsoft is a general social breakdown. Usually in situations of this sort, things get worse and worse until something breaks.

    Other social breakdowns:

    The U.S. government: History surrounding the U.S. war with Iraq: Four short stories [futurepower.net]

    and What should be the Response to Violence? [futurepower.net].

    Law in the U.S. state of Oregon:

    Complicated methods corrupt Oregon government. [hevanet.com]

    and Airplanes are safe, but laws often crash. [futurepower.net]
  • by Doc Hopper ( 59070 ) on Wednesday April 09, 2003 @03:42PM (#5695061) Homepage Journal
    I thought it was common knowledge that this was how Microsoft treated their volume licensing customers. It was what we figured would happen with our several-hundred license shop when we decided to shut down, and it's played out that way.

    The company I work for has one of these agreements with Microsoft, and is about to make payment number two of three in a few months. It's about $20,000 every year for 400 licenses or so. When we informed them we were closing the business before the third payment would come due, they in turn informed us that they would hold us to the letter of the contract, and require that third payment in full.

    So if you decide to close your business one month into an MS volume licensing agreement, expect you will have to figure in the next two payments for part of your cost of closing the business. Or else file bankruptcy to get out of it. Either way, Microsoft will inform you that you owe in full to the last penny of your agreement if you try to get out early, and you'll be left holding the bag at the end with whatever version of the software was the "latest" at the time the SA ran out. It sucks, but at the time the decision was made the company was moving to become an all-Microsoft shop. I came in several months after they abandoned that approach (thank goodness), but we are left with the legacy. So we'll be forking out another $20K next year for 360+ unused seats if we want to get the most value out of the contract, even though we'll have a handful of people as a skeleton crew.

    This is yet another reason I pushed hard for an all-GNU/Linux approach. Unfortunately, we discovered to our disappointment that GNU/Linux cannot yet handle the needs of a small financial institution like ours. You can chalk that up to lack of good bank-level accounting, payment processing, recovery (in the repossession sense, not tape backups), and loan origination/management software. Eh, well, the stuff for Windows isn't much better than doing it by hand yet either unless you're really big :) And most of what we're doing has been running off our AS/400 up until now anyway.

    Oh, yeah, what was my point? Right, if you buy into these agreements, what you save in convenience you pay in terms of contract inflexibility. Know what you're getting into at the get-go, that it's not something you can get out of or "transfer" (despite language to the contrary in the contract which is only for small numbers of machines to individual transferees with somewhat onerous record-keeping requirements), and that you're not really paying for ongoing support, but instead just for the licenses to use the product.

    Makes me wish I could start up a new company using solely free software, making annual grants of $20K or so to free software developers...
  • by Pettifogger ( 651170 ) on Wednesday April 09, 2003 @05:39PM (#5696607)
    One of the biggest misconceptions out there is that when someone presents you with a contract, you are not allowed to make any changes to it. Though Microsoft may not agree to them, you can usually negotiate ANY contract provision you want, even if it's printed on a form and you have to write the changes in the margin. Contracts are very flexible, and that's so you and someone else can agree to what you want. I do not use any Microsoft products, and do not intend to. However, if I had to, I would read the EULA (and their other crap) then make all revisions I thought were appropriate, sign it, and send it to Microsoft via certified mail with a letter stating that they had 30 days to correct my revision or negotiate further terms. And if they didn't, in one month all of my terms would constitute the new agreement between me and Microsoft. Yes, this can create a new and binding contract, but do not take that as legal advice. Do some more research and carefully read your contract before taking any action. Microsoft might pick a fight if only a few people did this, but if there were hundred and thousands, well, there'd be no way for them to handle it. Any ideas?

    The other point is that contracts usually get judged solely on what's contained inside of them, unless there's fraud, illegality, mistake, mutual recission, and a few other exceptions. So if you want to know what you've gotten yourself into, then RTFC. There are no state or federal laws (with a few small exceptions) that force you to agree to certain things, so it's all in the contract. And you don't need a law degree to understand them, either. Most of the legalese is shorthand so that broad concepts don't have to take pages and pages of explanation. Get a law dictionary (don't use Black's if you're a novice- it explains legal terms with legal terms, get one that uses layperson definitions) and go through it yourself. It might not be pleasant, but you'll understand more than you think you will.

    • This is false (Score:5, Informative)

      by shylock0 ( 561559 ) on Thursday April 10, 2003 @02:08AM (#5699399)
      Actually, some research and a quick consult with a lawyer friend has shown: this is false, and apparantly you learn why as a 1st year law student.

      In this case, you are proposing to them an alternate contract, which they must accept. Silence can never be a means of contract acceptance. For example, if you are sent a magazine without asking for it with the legal terminology "failure to cancel in 30 days will be construed as acceptance of a subscription and we will bill you," you can't legally be held to their billing request -- and in fact, by not answering you can continue to recieve the magazine for free.

      Furthermore, if you sent the contract back to Microsoft, you couldn't use the software until you either recieved a reply or decided to agree to the EULA.

      Sorry, but this post suffers from flawed legal reasoning: silence or the failure to respond cannot be considered legal acceptance of a contract. Check with any lawyer...

  • Perfect solution! (Score:4, Insightful)

    by miffo.swe ( 547642 ) <daniel@hedblom.gmail@com> on Thursday April 10, 2003 @03:25AM (#5699590) Homepage Journal
    Run something else!

    There arent that many killer apps not availiable on alternative OS any longer. On a average company you can come a long way with linux if you plan for linux from day one. Same with Apple albeit more expensive hardware is required. The only problem as i can see it is if a company is tailored to run on Microsoft software. With licenses like that it sure looks as if its is well worth the pain to migrate away to ABM.

    Im sitting on a friends Windows right now and i feel it lacks a lot of things. The ONLY thing Windows has is more applications, as an OS it is just an empty shell.

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