Google always argued that this case was more FUD than substance, and they were right.
I'll update as I read more.
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The new subsidiary, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the new subsidiary, which will have an ongoing relationship with the company’s retail stores. Barnes & Noble has not yet decided on the name of Newco.Florian Mueller gives the Florian Mueller take (Yay patents! Stupid open source lawyers.):
The fact that Barnes & Noble partners with Microsoft proves, if anyone still needed any proof, that its mostly antitrust-related "patent misuse" allegations against Microsoft, which the ITC threw out even ahead of trial and refused to reconsider, were bogus claims borne out of desperation (for lack of patents that could be used to bring counterclaims), possibly misguided by certain lawyers who self-servingly raised totally false hopes in Barnes & Noble's management as to what they could achieve by shouting "antitrust! antitrust!"The actual story looks more interesting. Microsoft has invested $300 million for a minority stake in a spin-off of a $1.3 billion dollar business. Microsoft also gets some unspecified royalty payments on patents from that new business. B&N is a retail book store in trouble, it needs saving. Microsoft is a software business with a lot of cash, but at imminent risk of decline. It needs a way forward in the industry. Forward is the Apple, Google, Amazon direction: content stores on many devices.
By settling with B&N, Microsoft avoids an ugly court battle that might not have been decided in its favor. Like most companies that wield patents as weapons, the goal is to prevent competition and maximize royalties. Microsoft has no dog in the e-reader fight, so the partnership with B&N makes sense for Microsoft anyway.Update 2: Now TechCrunch, but with more details (money):
A section called “Commercial Agreement” notes that Microsoft will be paying the Barnes & Noble subsidiary $180 million in connection with revenue sharing on the Nook app that B&N will make for the Windows 8 platform. This is nonrefundable, the filing notes. Microsoft is also paying $125 million (equal to $25 million over five years) “for purposes of assisting NewCo in acquiring local digital reading content and technology development.” This, too, looks to be nonrefundable.So, maybe the number is over $600 million. More reason to think this would expand the Nook store beyond books. If the number Microsoft is investing is over half a billion, Microsoft looks more like the desperate party. The danger for B&N is that they go the way of Nokia, anchored to a sinking platform.
Apparently, the current Windows Phone OS is built on the venerable Windows CE kernel. Setting veneration aside, Microsoft would have decided to use a more modern foundation for Windows Phone 8. And said modern foundation would not run on today’s hardware.Classic Microsoft, and hence the paucity of developers embracing Windows Phone. No amount of marketing can make a silk purse out of a sow's ear, the people writing code have to deal with the real platform, not the glossy ads. Apple's solid Unix foundation in iOS, plus the thin Objective-C framework, are a winner in mobile. Android's Linux, plus a heavy Java framework, struggles. But a Wince OS with yet another half-baked Microsoft framework is DOA for developers.
But it will, again, have to be so amazing that people and/or carriers will really take notice and consciously switch their allegiance. And the odds of that happening, based on Microsoft's track record in mobile, are slim.The only, desperate, hope I've seen came from a comment on Gassée's piece:
An Android injunction as a result of the current Oracle-Google trial (Probability? Is anyone paying attention?) would open the doors wide open for Nokia Windows phonesThe probability is practically non-existent. At worst a judge would order payments on RAND terms, but it is far more likely that Oracle will lose in its attempts to copyright Java.
Arrington and Siegler can try to play journalism police all they want, but the fact is they have turned themselves into hacks for hire and as such have lost all credibility. They’re not the only ones working this racket. Now we have PandoDaily, a new tech blog crated by their TechCrunch pal Sarah Lacy and funded by CrunchFund and a bunch of other VCs and angels whose companies PandoDaily aims to cover.But what is hilarious is the reaction Dan's attack provoked, Arrington:
He says that our insanely over subscribed venture fund is just a joke. He says our work at TechCrunch over the last six years is a joke. He says MG is a joke. He drags Pando Daily and Techmeme into the fight and trashes them too.
I’m surprised that my mother wasn’t mentioned, frankly.Oh my fur and whiskers! Then Siegler:
That passion is conveyed in our writing. And it’s conveyed when we meet with startups. Ask any company in our portfolio why they accepted us as investors. That Dan Lyons would imply it’s some sort of shakedown shows how very clueless he is.It's hard to believe people could be this obtuse, the other possibility is that Lyons hit too close to home. Given the amount of projection the latter is most likely. Then again Siegler just discovered how defensive patents work, and only recently discovered how ignorant he is, so maybe he really is that dim.
And it shows exactly why he could never do what we do. His words reek of jealousy. Of disillusionment. He’s angry. He doesn’t get it. And worst of all, he simply does not matter anymore. The only time he did was as a joke. He’s that guy who used to be that guy that was pretending to be Steve Jobs once upon a time. That must be extremely frustrating.