Recent Microsoft (MSFT) patent application indicative of Gates' involvement

Bill Gates still is not out of the picture with the world's largest software company that he co-founded, Microsoft, Inc. (NASDAQ: MSFT). In fact, Gates' name is all over a new patent by the company that deals with how to track online web browsers who click on ads and tie them to later, verified online purchases. This is not exactly a new concept in the world of e-commerce, but the striking involvement of Gates in many of Microsoft's recent patent applications is. Was Gates really this involved in a day-to-day basis? Remember, his title was "Chief Software Architect" -- which tells me that conceptual designs involving software was in his daily grasp of responsibilities.

One of the software giant's most recent patent applications deals with an online advertising system that uses 'points' to track the correlation between clicking on ads while web browsing with actual purchases. Now, many Google, Inc. (NASDAQ: GOOG) AdWords customers (and Yahoo!, Inc. (NASDAQ: YHOO) ad customers) already do this. When you click on that Google ad, a cookie places itself on your PC and if you complete a transaction based on that click, Google knows it. This is known as "conversion rate" in the marketing world. It's interesting to see Microsoft's spin on this tracking concept with one of the software company's most recent patent applications.

But Microsoft's goal here is to curb and hopefully prevent click fraud, which continues to dog almost every online advertiser since it may (or may not) be easy to fraudulently manipulate. So, from all viewpoints, Gates having his name attached to this recent patent application says he had a hand in the concept, but to what extent is unknown. The concept, which was developed in May of last year, was actually before Gates turned the reigns over to Ray Ozzie, his hand-picked replacement. Does Gates' involvement here signify that internet advertising is a core area within Microsoft's business strategy? Yes, and the company has not been shy about saying that either in the past 18 months as Google's meteoric rise has happened. I'm not sure this patent will be Gate's curtain call, but Ole' Softie needs an advertising hat trick now more than ever.