While attention has been focused on The SCO Group's IP suit against free software, Microsoft itself has prepared the ground for a full scale patent licensing program in which smaller vendors will be the most vulnerable. In June, Microsoft hired Marshall Phelps from IBM, the executive who began IBM's patent-based revenue program in 1985. Seeing growth from its traditional businesses taper away IBM turned to patents (and financial instruments such as mainframe leasing) as a way of increasing revenues. Microsoft has been granted 3,000 patents and applied for over 5,000 more.
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