Erik Funkenbusch wrote:
> > Roy Schestowitz wrote:
> >> Do Windows users have an "undisclosed balance-sheet liability" too?
> >>
> >> ,----[ Quote ]
> >>| Who can tell what infringes what any more? Also, I wonder if we should
> >>| even care. Patents were originally created to protect the little guy
>
> No, Windows does not have an undisclosed balance-sheet liability, because
> Microsoft indemnifies it's users against any such lawsuits.
> http://news.com.com/Microsoft+to+back+customers+in+infringement+cases/2100-1014_3-5445868.html
Most of the major software vendors have such idemnification provisions.
Ironically, the license terms indicate just the opposite. The customer
must indemnify the publisher (Microsoft, Novell,...) against damages
caused by the software (even if the damage is deliberate). On the flip
side, the customer is assured that if there is a third party product,
the provider will settle or negotiate with the owner.
Investors in these public companies assume this risk as part of the
risk associated with the investment. These risks are balanced against
returns. In the case of Microsoft, they have a $30 billion cash horde
that they can use to quickly settle even the most frivolous claims,
quickly and quietly.
It would be pretty hard for Microsoft to get hammered so hard that it
couldn't settle without crashing it's stock prices.
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