now things are going to get really ugly

Yes, indeed, a multinational corporation setting on millions (or is it billions?) of dollars of cash reserves is on the run from a rag-tag fleet collection of individuals organized over the 'net, and mostly working for free:

Microsoft Corp. may in the future be forced to lower its software prices as a result of the growth of open source, the company cautioned in its latest filing with the Securities and Exchange Commission.

Wah! Mommy! Save us from the nasty competitors! They won't play fair and let us buy them out, like we have everybody else!

More seriously, this appears to be a tactical strike at government efforts to mandate open-source solutions. Personally, I'm fine with the open-source solutions not being mandated -- as long as open formats are mandated, and as long as open-source gets to play on the same terms (i.e., no fair buying the person with purchasing authority a free vacation, or even lunch).