You must be referring to the time Microsoft reversed engineered YouTube API's and blocked ads in their unauthorized YouTube app. They had no right to reverse engineer proprietary API's, they had no right to block ads from being played and they had no right to create an app for an IP they didn't own.

>And on what planet do you live that licensing out patents that are legitimate patents, for a fee, is racketeering?

You should look into the Microsoft vs Barnes and Noble case[1] as well as review their detailed patent racketeering practices at Groklaw. Additionally, the Chinese government made Microsoft expose all of their patents that they wouldn't allow companies they were shaking down to see and, well, they were full of old, obsolete and prior art ridden patents - be sure to look those up too.

[1]http://www.groklaw.net/articlebasic.php?story=20111111222912...