EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

07.14.09

How the Gates Foundation Helps Getting Children Addicted

Posted in Africa, America, Asia, Bill Gates, Finance, GNU/Linux, Microsoft, Patents at 2:51 am by Dr. Roy Schestowitz

“They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade.”

Bill Gates

Summary: The Gates Foundation makes children dependent not only on expensive drug patents [1, 2] but on Microsoft also

ON NUMEROUS occasions in the past we explained all those Microsoft addictions that are imposed upon young children and adolescents through their school systems. They essentially get indoctrinated without being offered any choice/escape, and assumed to be receptive of the software they are taught to depend on. It is software which was designed to take away their independence and freedom, turning them to perpetual customers. In our latest post on the subject, we showed that “Elevate America” is somewhat of an equivalent of “EDGI”, which may be specifically intended to make people “addicted”, as Bill Gates honestly put at least once in the past. This does not prevent Microsoft and its loyal press (Seattle P-I in this case) from describing all this “addiction” as generous donation. Spot the latest spin:

Microsoft will contribute up to $50 million’s worth in software, training and certifications to worldwide higher education and workforce training, the company announced today at a forum it hosted in Paris.

If not a shameless lie, this is deception at best. Software has no cost associated with duplication, so Microsoft is inflating numbers and casting the state-funded conversion of schools to Microsoft recruitment camps as something charitable.

To address a similar subject, all schools in Brazil are moving to GNU/Linux and the Huffington Post has just covered this massive transformation.

Fifty million Brazilian students will have Christmas in July when software Santa slips down the chimney to give them a free ticket on the information highway.

With Microsoft software licenses costing up to 1000 percent more in Brazil than in the US, the ProInfo program launched by the government of president Luiz Inacio Lula da Silva reduces dependence on costly foreign software just as the sugar ethanol program for cars reduces dependence on expensive foreign oil. The program, administered through the national education secretariat. provides free operating systems, backbone and educational content employing Linux, Debian and KD3 freeware.

Beneath the surface, this story is a lot more complicated. Michael has just visited Brazil on behalf of Red Hat or the OSI and here is what he found out about things Microsoft does (or tries to do) in Brazil.

On the alarm front, I heard specific confirmation of a storyline I’ve been following, which is that the Bill and Melinda Gates Foundation is basically telling governments: if you want contributions/investments from us, then you’ll give Microsoft cabinet-level access to inform policy, and you’ll use Microsoft products. For example, donations to educational initiatives require installing and teaching Microsoft products. It is similar to another story line reported by Roy Shestowitz. My informant told me that she was fortunately able to point out to the President that this was against Brazil’s sovereignty and interest, and is one of the reasons that President Lula came to FISL, to show is support for the freedoms that “software livre” (aka free software, aka open source) mean to Brazil.

This sure sounds like a form of extortion and it is hardly surprising given what we saw in other countries such as India. Blackmail through withdrawal of incentives in something that we previously saw in Kenya for example. Bill Gates uses the Foundation to pressure governments — and sometimes companies — to buy Microsoft (and only Microsoft). There are of course many other issues such as the fact that Bill and Melinda Gates use their Foundation to avoid paying tax, just as Microsoft uses Ireland to bring taxation down to near 0%. As a timely note on the subject, Groklaw highlights this new document about Xilinx losing its right to play such games around revenue tax. The tide is changing, despite Microsoft's blackmail of Obama.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

10 Comments

  1. Andrew Macabe said,

    July 14, 2009 at 10:59 am

    Gravatar

    On software: Packaging and storing windows on store shelves is really a losing proposition in itself. To microsoft it’s more an investment by establishing a commercial/consumer value on products (windows, msoffice, etc.) no one in their right frame of mind would actually pay or even copy. Given that the “value” for the product is therefore established, the campaigning for profit begins by snaring the various governmental depts; education, military, police, charities, etc. How many packaged, boxed products does a corporation get when it pays a site license for a windows os?

    There is nothing of any value that the USA can export except its GNP, which is its natural resources (natural gas, coal, etc. – Welcome to the order of 3rd world countries, America), so, it’s concentrating on Intellectual Property licensing (money from nothing-patents on ideas and concepts) and pushing American corporate mentality (ACTA, CompTIA, BSA, etc.) on to other countries.

    Roy Schestowitz Reply:

    Both ACTA and ACT are pushing American corporate mentality, but I think you meant “ACT” (Microsoft front). ACTA is the initiative to transform the world into a global intellectual monopoles police.

    Andrew Macabe Reply:

    The Jonathan Zuck group.

    Roy Schestowitz Reply:

    Which used to be called ATL.

    Andrew Macabe Reply:

    Thanks, I always screw up acronyms.

  2. Jose_X said,

    July 14, 2009 at 3:20 pm

    Gravatar

    If the B&M Foundry donates in one year $100,000,000 of MS products/services (that would be less than 1% of the money the charity has), that number comes out as Microsoft revenues, with a high percentage of that as earnings. MSFT is priced at at least 10 times earnings. This means that 100 million investment helped MSFT gain or maintain some 1 billion dollars in market cap. Since Gates has MSFT shares he sells, this means by investing 100 million from his left pocket, he made 10 times that into his right pocket.

    Well, not exactly because he only profits from a small part of MSFT’s total market cap.

    Can he thus turn 60 billion into 600 billion market cap? Well, yes in a sense, if he went all out.. at least for a year he could pull that off and if the market did not realize what was going on. Of course, he owns a fraction of MSFT, so he would not want to use his charity to subsidize all other MSFT investors. However, if he got many to contribute to B&M Foundry, then he would be using their money.

    Also, you can apply this to even more spectacular P/E ratios if you do it with small companies, eg, with small “high-growth” pharm companies owned by Bill.

    So if Bill owns all of some small company, and he feeds that company 100 million over 5 years so that when the company goes public at the end of the five years, it made 50 million in that last year, then the IPO might result in a P/E of 100 or more. 50 million times 100 is 5 billion. Gates would likely own at least 30 percent at the time of the IPO (I’m guessing this figure). That would mean that his B&M Foundry’s 100 million investment would have netted Bill over 1 billion dollars at least if he were able to cash in at the IPO price. [Yes, I excluded taxes in this simplified analysis.]

    In practice he can use the B&M Foundry not to entirely support such a pyramid scheme but to help fuel it and to give this private businesses competitive advantages over everyone else. Throw in pharm patents and you are looking at monopolies in the making. Repeat for some other industries. And to think, all of these would be largely controlled by a small number of people and be supporting each other.

    Bill didn’t invent this, but I have a hunch he will try to exploit it to the max.

    Yes, there are laws, but how many loopholes exist? Point is Bill is likely leveraging this significantly if not nearly as much as might be suggested by the above simplified model.

    Roy Schestowitz Reply:

    This is not new. Some distinguished medical professionals publicly accused Gates of monopolising in their field using a “charity” as a vehicle. You can find articles about it.

    Jose_X Reply:

    I had not heard of actual competitors complaining. I would like to read up on this.

    Jose_X Reply:

    I would like to read up on this…and if I had heard (probably here), I do not recall anything like what you mentioned.

    The basis for this is because you have markets pricing companies at many times earnings. Thus you can feed some of your gains from selling at the high price of the business back into revenues.

    If the company has a high profit margin, then the revenues mostly become earnings.

    This, thus, finishes out the cycle, as these extra earnings get multiplied many-fold to lead to even greater pricing of the company.

    Of course, those that have lots of influence over the pricing of companies (ie, those with savvy and access that lead them to buy low) know what is going on and won’t pay a high price, but they can exploit the ignorance among most of the investment public.

    And you don’t have to go all out with this technique (or exclusively). The point is that the B&M Foundry is helping to distort markets. This hurts consumers and many others.

    It also shows that patent monopolies are being exploited to lead to or to help preserve larger monopolies.

    Roy Schestowitz Reply:

    Here is the latest article I am aware of:

    http://www.hindu.com/2009/05/10/stories/2009051055151000.htm

    Journal critique on Bill & Melinda Gates Foundation grant pattern

    New Delhi: The Bill and Melinda Gates Foundation’s pattern of funding in the form of grants for global health programmes and projects has been criticised in a research paper in The Lancet.

    Older:

    http://www.nytimes.com/2008/02/16/science/16malaria.html

    Gates Foundation’s Influence Criticized

    The chief of malaria for the World Health Organization has complained that the growing dominance of malaria research by the Bill and Melinda Gates Foundation risks stifling a diversity of views among scientists and wiping out the world health agency’s policy-making function.

    In a memorandum, the malaria chief, Dr. Arata Kochi, complained to his boss, Dr. Margaret Chan, the director general of the W.H.O., that the foundation’s money, while crucial, could have “far-reaching, largely unintended consequences.”

    Many of the world’s leading malaria scientists are now “locked up in a ‘cartel’ with their own research funding being linked to those of others within the group,” Dr. Kochi wrote. Because “each has a vested interest to safeguard the work of the others,” he wrote, getting independent reviews of research proposals “is becoming increasingly difficult.”

What Else is New


  1. Links 29/7/2016: More Microsoft Problems and Layoffs, Bodhi Linux 4.0.0 Alpha Released

    Links for the day



  2. Links 28/7/2016: CORD as Linux Foundation Project, Wine 1.9.15 Released

    Links for the day



  3. EPO Loses More Than 80% of Cases at the International Labour Organisation (ILO)

    The International Labour Organisation (or Organization) helps show just to what degree the European Patent Office (EPO) violates the rights of workers



  4. To Understand What Battistelli Has Turned the EPO Into Look at Turkey and China

    Battistelli and his notorious Vice-President from SIPO (Croatia) turn the European Patent Office, once the pride of Europe, into a human rights cesspool with SIPO (China) connections



  5. Patent Lawyers Move Closer to Battistelli's Rubber-stamping Office While the Appeal Boards Pushed Away as Collective Punishment Which Masks Decline in Patent Quality

    Urgently sending appeal boards away and urgently granting applicants patents without proper examination will be Battistelli's sorrow legacy at the European Patent Office



  6. Software Patents a Dying Breed, But Patent Lawyers in Denial Over it and Notorious Judge Rodney Gilstrap Ignores Alice (Supreme Court)

    A look at what law and practice are saying about software patents, contrasted or contradicted by the patent industry and trolls-friendly courts (which make business out of or together with patent aggressors)



  7. CAFC Meddling in PTAB Affairs; Unified Patents Fights a Good Fight by Invalidating Software Patents

    A look at how the AIA's Patent Trial and Appeal Board is invalidating software patents post-Alice, with or without involvement of patent courts



  8. Early Certainty That Benoît Battistelli is Dangerously Clueless and a Major Risk to the EPO

    The chaos which Team Battistelli is assured to deliver if it doesn't treat scientists like scientists, instead viewing them as a production line with rubber-stamping duties



  9. OIN Makes Claims About “Open Source Innovation”, But It Produces Nothing and Protects Virtually Nobody

    The Open Invention Network (OIN) reports growth, but in practical terms it does little or nothing to help developers of Free/Open Source software



  10. Links 27/7/2016: New CrossOver, Blackmagic for GNU/Linux

    Links for the day



  11. The Death of Software Patents and Microsoft's Coup Against Yahoo! Made the Company Worthless

    A look at what happens to companies whose value is a house of software patents rather than code and a broad base of users/customers



  12. Munich Attack Mentioned by EPO But Not Ansbach

    The EPO does the usual right-wing thing (exploiting disaster/emergency for domestic crackdowns), but some bemoan the omission of the explosion at Ansbach (also in Germany)



  13. Kluwer Thinks People Are Clueless About the Unitary Patent System and Pretends It's Business as Usual

    Flogging the dead UPC horse at times of great uncertainty (enough to bring the UPC to a standstill)



  14. Almost Everything That the Government Accountability Office Says is Applicable to the EPO

    The Government Accountability Office in the United States produces reports which can serve as a timely warning sign to the European Patent Office, where patent quality is rapidly declining in order to meet 'production' goals



  15. Microsoft Says It Loves Linux, But Its Anti-Linux Patent Trolls Are Still Around and Active

    Highlighting just two of the many entities that Microsoft (and partners) use in order to induce additional costs on Free (as in freedom) software



  16. Links 26/7/2016: Microsoft Growing Desperate, Linux 4.8 Visions

    Links for the day



  17. Links 25/7/2016: Linux 4.7 Final, PostgreSQL 9.6 Beta 3

    Links for the day



  18. Leaked: Boards of Appeal Face 'Exile' or 'Extradition' in Haar After Standing up to Battistelli

    A look at some of the latest moves at the European Patent Office (EPO), following Battistelli's successful coup d’état which brought the EPO into a perpetual state of emergency that perpetuates Battistelli's totalitarian powers



  19. The US Government Accountability Office (GAO) Comes Across as Against Software Patents, Relates to the EPO as Well

    Some analysis of the input from the Government Accountability Office (GAO) with focus on the EPO and software patents



  20. In the US, Patent Trolls Engage in Patent Wars and Shakedowns, Whereas in China/Korea Large Android OEMs Sue One Another

    Highlighting some of the differences between the US patent system and other patent systems



  21. Links 24/7/2016: Elive 2.7.1 Beta, New Flatpaks and Snaps

    Links for the day



  22. Links 23/7/2016: Leo Laporte on GNU/Linux, Dolphin Emulator’s Vulkan Completion

    Links for the day



  23. Links 22/7/2016: Wine 1.9.15, KaOS 2016.07 ISO

    Links for the day



  24. Haar Mentioned as Likely Site of Appeal Boards as Their Eradication or Marginalisation Envisioned by UPC Proponent Benoît Battistelli

    Not only the Staff Union of the European Patent Office (SUEPO) is under severe attack and possibly in mortal danger; the increasingly understaffed Boards of Appeal too are coming under attack and may (according to rumours) be sent to Haar, a good distance away from Munich and the airport (half an hour drive), not to mention lack of facilities for visitors from overseas



  25. EPO Attaché Albert Keyack Viewed as Somewhat of a Mole, Reporting From the US Embassy in Brazil Until Shortly Before the Temer Coup

    Public responses to the role played by Albert Keyack on behalf of the United States inside the European [sic] Patent Office



  26. EPO Insiders Explain Why the EPO's Examination Quality Rapidly Declines and Will Get Even Worse Because of Willy Minnoye

    Public comments from anonymous insiders serve to highlight a growing crisis inside the European Patent Office (EPO), where experienced/senior examiners are walking away and leaving an irreplaceable bunch of seats (due to high experience demands)



  27. Patents Roundup: BlackBerry, Huawei, PTAB, GAO, Aggressive Universities With Patents, and Software Patents in Europe

    Various bits and pieces of news regarding patents and their fast-changing nature in the United States nowadays



  28. Glimpse at Patent Systems Across the World: Better Quality Control at the USPTO Post-America Invents Act (2011), Unlike the EPO Post-Battistelli (2010)

    While the EPO reportedly strives to eliminate pendency and appeal windows altogether (rubberstamping being optimal performance as per the yardstick du jour), the USPTO introduces changes that would strengthen the system and shield innovation, not protect the business model of serial litigants



  29. Blockstream Has No Patents, But Pledges Not to Sue Using Patents

    Blockstream says that it comes in peace when it comes to software patents, which triggers speculations about coming Blockchain patent wars



  30. Links 21/7/2016: Ubuntu 16.04.1 LTS, Linux Mint 18 “Sarah” Xfce Beta

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts