MS sounds a little self-serving on the cross-licensing terms: I don't 
think I know of any Sun or IBM license that demands that!
More thoughts later...
Rohit
          February 22, 1999
          PATENTS
          Microsoft Move Sparks Controversy Over Web Standards
          By TERESA RIORDAN
          Many Web site developers were angered earlier this
          month when they learned that the Microsoft Corp. had
          received a patent covering a fundamental technology
          adopted by the World Wide Web Consortium, a nonprofit
          group working to standardize the Web.
          Part of the furor arose because Microsoft, a member of
          the consortium, had not told members that it had applied
          for a patent covering aspects of a technology known as
          "cascading style sheets."
          These style sheets are essentially templates that reduce
          the cost of developing Web sites, make it easier to
          redesign a site on the fly and cut the cost of
          maintaining a site.
          Microsoft since has said that its failure to disclose
          the patent application was inadvertent and, more
          important, that it will freely license the patent. But
          technologists say that the Microsoft patent is a
          worrisome symptom of a much larger problem.
          The U.S. Patent and Trademark Office has begun to issue
          a spate of patents that were applied for several years
          ago when the Internet was just becoming viable
          commercially. Some fear that these patents threaten the
          very architecture underlying the online world.
          While patents are intended to reward innovative work
          done independently by individuals or companies, the
          World Wide Web is in many respects the result of
          innovation that is by definition collaborative.
          "The Web works because everyone has some basic
          underlying agreements about basic technical standards,
          not because everybody went out and tried to make their
          own web," said Daniel K. Weitzner, director of
          technology standards for the World Wide Web Consortium.
          "If everyone did go out and make their own web, we would
          have no Web."
          Paul Resnick, associate professor at the University of
          Michigan's School of Information, said the friction
          between patents and standards was spurring a "revolution
          in how we think about property."
          "Both innovation and standardization create value for
          consumers," he said. "Patents are good for rewarding
          innovation. But they can inhibit standardization. And
          the value that is created by standards accrues to
          everyone. "
          Microsoft's patent, No. 5,860,073, covers part of the
          technology behind "cascading style sheets," templates
          into which fresh data can be poured repeatedly. The
          style sheets are used with HTML, the common language of
          the Internet. The patent also covers a similar template
          approach for XML, a next-generation language described
          as "HTML on steroids."
          George Olsen is a design director at 2-Lane Media in Los
          Angeles who heads up the Web Standards Project, a
          lobbying group for developers who want to see Web
          standards broadly adopted, so that virtually all sites
          can be viewed easily with any type of browser.
          When Olsen's group first heard of the Microsoft patent,
          they hotly threatened to press the Patent Office to
          re-examine it. But the group's tempers have cooled since
          Microsoft announced that it would freely and widely
          license the patent.
          "Now we're in a trust-but-verify mode," Olsen said.
          While the Microsoft patent has been the subject of ire
          outside the World Wide Web Consortium, also known as the
          W3C, a different patent seems to be the main focus of
          concern within the consortium.
          The Intermind Corp., a consortium member, did disclose
          to the consortium that it had applied for a patent
          covering aspects of "metadata," which is essentially
          information tagged to data so that it can be sorted or
          classified. (An "R" rating tagged to a movie, for
          example would be metadata about a movie.) The consortium
          adopted a metadata standard known as the Platform for
          Privacy Preferences, or P3P. But members were taken by
          surprise when Intermind announced, after it had been
          issued patent No. 5,862,325 -- a huge, 130-page document
          -- that it would exact licensing fees from fellow
          members, who had helped developed P3P.
          Thomas Reardon, a Microsoft program manager who is the
          company's representative with the consortium, said his
          company was serving as a model of how consortium members
          should treat their patents.
          "There is currently absolutely zero patent policy at the
          W3C," said Reardon. Instead, each of the consortium's
          300 members post their own policy regarding licensing.
          Microsoft's is far more liberal than that of any other
          company, he said, comparing it to "much stricter terms"
          offered by Sun Microsystems or IBM.
          "I actually think what we're doing is pretty striking,"
          Reardon said. "We're saying, 'It doesn't really matter
          what the patent says, you can have it."'
          Of course, Microsoft is not giving away its patent for
          nothing. In return, companies must grant Microsoft a
          reciprocal license for any related technology. "We're
          not going to give something for free and then be held
          hostage by somebody we just gave to," Reardon said.
          But even if other companies follow Microsoft's example,
          other thorny issues will probably emerge.
          Eolas Technologies, a company in Wheaton, Ill., that is
          not a member of the consortium, recently sued Microsoft
          for infringing its patent, No. 5,838,906. Mike Doyle,
          the founder of Eolas, contends that the patent covers
          aspects of "embedded technology" -- the so-called
          applets and plug-ins that make it possible to experience
          music, video and animated graphics on the Web. These are
          used not just by Microsoft but by other software makers
          as well.
          Should Eolas and others not in the consortium be able to
          reap the benefits of standardization while at the same
          time exacting licensing fees for patented technologies?
          Resnick contends that such questions are going to
          require a radical rethinking of intellectual property.
          "It's a big issue; it's fundamental," he said. "There's
          not going to be an easy answer."
          Patents are available by number for $3 from the Patent
          and Trademark Office, Washington, D.C. 20231.
          --------------------------------------------------------
          Related Sites
          These sites are not part of The New York Times on the
          Web, and The Times has no control over their content or
          availability.
             * Microsoft Corp.
             * World Wide Web Consortium
             * World Wide Web Consortium: Cascading Style Sheets
             * U.S. Patent and Trademark Office
             * Microsoft: Style Sheets: A Brief Overview for
               Designers
             * Patent No. 5,860,073: Cascading Style Sheets
             * Web Standards Project
             * W3C: Platform for Privacy Preferences
             * Patent No. 5,862,325: Metadata
             * Eolas Technologies
             * Patent No. 5,838,906: Embedded Technology
http://www.microsoft.com/workshop/design/layout/css-des.asp
http://164.195.100.11/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PAL 
L&p=1&u=/netahtml/srchnum.htm&r=1&f=G&l=50&s1='5,860,073'.WKU.&OS=PN/5 
,860,073&RS=PN/5,860,073"
http://164.195.100.11/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PAL 
L&p=1&u=/netahtml/srchnum.htm&r=1&f=G&l=50&s1='5,862,325'.WKU.&OS=PN/5 
,862,325&RS=PN/5,862,325
http://164.195.100.11/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PAL 
L&p=1&u=/netahtml/srchnum.htm&r=1&f=G&l=50&s1='5,838,906'.WKU.&OS=PN/5 
,838,906&RS=PN/5,838,906">Patent No. 5,838,906: Embedded Technology