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[IP] Microsoft Patent Envisions Free Hardware, Software





Begin forwarded message:

From: TClaburn@xxxxxxx
Date: July 28, 2006 1:35:23 PM EDT
To: dave@xxxxxxxxxx
Subject: for IP if you wish...

Microsoft Patent Envisions Free Hardware, Software

http://informationweek.com/news/showArticle.jhtml?articleID=191502430

As Microsoft increases its spending to do battle with Google for leadership in online advertising and hosted applications, a Microsoft patent application
published on Thursday shows the company contemplating free computers and
software for its customers.


In the deliberately broad language patent lawyers use to leave their clients' options open, Microsoft's latest patent application, "Profitable free computing
resources leveraging the advertising model," describes several possible
applications for a targeted advertising system under development.


The patent application details the possibility of free computers for Microsoft's online customers. It suggests "a service provider such as a telephone company, an Internet service provider, or a leasing company may provide computer systems or components to users at a reduced charge or for free in exchange for targeted
advertising delivery."


In such a scenario, Microsoft would presumably work with hardware and ISP partners, subsidizing the cost of hardware and service with online advertising
revenue.


A Microsoft spokesman declined to comment further on the patent application.


But at a meeting of financial analysts at Microsoft's Redmond, Washington headquarters on Thursday, Kevin Johnson, co-president of Microsoft's platforms and services division, demonstrated the company's commitment to advertising technology as a source of revenue. He showed off Microsoft adCenter serving ads to Microsoft's Xbox Live online service and discussed Microsoft's acquisition of Massive, a developer of technology for delivering ads inside video games. Johnson projected that Microsoft's online services would see revenue growth ranging from 7% to 11% in FY07, rising to $2.5B to $2.6B from $2.3B in FY06.


In exchange for free computing hardware and service, the patent application details how users would have to pay in information. "Resources on the computer system itself, such as the operating system, identify user characteristics and interests based on information stored on the computer," the patent application explains. "A user profile may be developed using information such as music
preference, language, and game usage."


The patent application proposes sharing user information with an advertising provider, either directly or through a service provider, to allow for targeted
ad delivery, both online and offline.


...

Thomas Claburn, Editor-at-Large
InformationWeek, CMP Media, Inc.
600 Harrison St., 6th Floor
San Francisco, CA 94107
tclaburn@xxxxxxx
415.947.6820

http://www.informationweek.com
http://www.thomasclaburn.com



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