[pchelpers] Microsoft in trouble again
- From: John Durham <john.modec@xxxxxxxxxx>
- To: PC-Helpers <pchelpers@xxxxxxxxxxxxx>
- Date: Fri, 27 Feb 2004 11:57:26 +1300
http://www.mercurynews.com/mld/mercurynews/business/8049225.htm
Posted on Thu, Feb. 26, 2004
Japanese anti-monopoly authorities raid Japanese unit of Microsoft
TOKYO (AP) - Officials from Japan's fair trade watchdog raided the
Japanese unit of Microsoft Corp. on Thursday on suspicion of
anti-monopoly law violations.
Microsoft confirmed that the Fair Trade Commission inspected the Tokyo
headquarters office but denied any wrongdoing.
A commission official, speaking on customary condition of anonymity,
said Microsoft Japan is suspected of attaching improper restrictive
conditions -- such as requiring that Japanese computer makers reveal
proprietary information that would infringe on patents -- when signing
software deals.
The official refused to elaborate. Japanese fair trade officials
generally do not comment on continuing investigations. The commission
frequently raids companies it suspects of illegal business practices but
the investigations rarely lead to criminal charges or fines.
In a statement, Redmond, Wash.-based Microsoft said its contracts with
manufacturers had included a provision that would force computer makers
to give up their right to file patent infringement lawsuits against the
software maker.
The company said, however, that it had last week told computer makers --
including companies in Japan -- about plans to drop the patent-related
provision when new contracts are signed later this year.
Microsoft said it believes the provision is legal under Japanese, U.S.
and European Union law, but that it decided to delete it after receiving
comments from some computer makers.
The case offers a glimpse into the business practices that Microsoft has
used to keep its operating system the dominant software for computers
sold around the world. Under agreements with such patent-related
provisions, Japanese manufacturers like Sony, Fujitsu and NEC would have
to agree to provide secret product information while signing away their
right to sue if the software maker used that information for its own profit.
Microsoft may be more willing to concede on such issues because the
company is at a very sensitive point in its negotiations with EU
regulators over antitrust concerns, said Joe Wilcox, an analyst with
Jupiter Research. A ruling there is expected as early as March, and
Microsoft has said repeatedly that it hopes to settle the case.
``Microsoft is in the hot seat right now because of the European case,
and in many ways for the next couple of weeks, at least, the company
needs to watch its behavior very carefully,'' Wilcox said.
The latest probe in Japan also comes as Microsoft faces a growing threat
in Asia from the Linux open-source operating system. Japan and South
Korea have been prodding China to join an effort that boosts research in
a Linux system that better handles Asian languages.
Like European countries, Japan, South Korea and China long have been
wary of leaving too many government computers and networks dependent on
Windows. Many experts view Windows as too prone to computer viruses and
hacking.
In fact, Wilcox said, part of the reason Microsoft is eager to avoid
confrontations with government officials is because government customers
are an important part of the software giant's business.
``The company wants to build government relations where it can, and
getting into a legal dispute with any government is just not in the
company's best interest right now,'' Wilcox said. ``And that isn't just
about avoiding legal problems. It's also about actually fighting Linux
and open source, because some of the most vocal interest and Microsoft
alternatives has been among government agencies.''
Japanese authorities have accused Microsoft of violating anti-monopoly
laws before.
In 1998, the Fair Trade Commission ordered Microsoft to stop bundling
software pre-installed in personal computers in a way that put
competitors at a disadvantage. But the company wasn't fined or charged
with a crime.
------
AP Business Writer Allison Linn in Seattle contributed to this report.
--
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