US Report: Microsoft plays hardball

NEWS
One thing's certain: in responding in the aggressive fashion it has to the sweeping antitrust lawsuit brought against it by the Justice Department and 20 state attorneys general, the software maker is giving no ground. "This would certainly be an indication that Microsoft has no intention of being conciliatory," Mike Pettit, executive director of anti-Microsoft group Project to Promote Competition & Innovation, said of the counterclaims. Microsoft's formal response to the DoJ's sweeping antitrust suit in U.S. District Court in Washington, D.C. -- a typical nuts-and-bolts filing -- disputed all of the government's main claims. But the separate intellectual property counterclaim filed in the same court is being interpreted by legal experts as a tactic designed to signal the DoJ that it won't back down. In the claim, the company charges that federal copyright laws trump the state's antitrust allegations. It further asks the court to find that the states deprived Microsoft of its rights under the copyright act. Microsoft claims that the states are seeking to illegally alter Windows 95 and 98 by giving computer makers the option to change the software. Under federal law, only the owner of copyrighted material can change it or grant permission to do so. The filing also is an attempt by Microsoft to consolidate the case by trying to get state claims tossed out on the basis that they violate federal laws. The company already has succeeded in getting the state and federal suits combined into one. It's common for intellectual property issues to be raised during antitrust cases. But it's less common to name government regulators as defendants in such claims and accuse them of depriving a company of its intellectual property rights. "That, to me, is more aggressive. I don't how likely that is to proceed," said David McGowan, an associate professor of law at the University of Minnesota's law school. "It's a very strong assertion by Microsoft that it has intellectual property rights that allow it to do some of the things it's accused of doing." By filing the counterclaim, Microsoft is putting a twist on a common tactic used by smaller companies that have been sued by larger companies for patent infringement. In those cases, the smaller company - the one being accused of violating the larger company's intellectual property rights - will claim antirust violations, or that the bigger company gained contracts by leveraging its monopoly. Microsoft, in this case, is doing the reverse, claiming an intellectual property defence in the face of an antitrust suit. Warren Grimes, a professor at the Southwestern University Law School in Los Angeles and a former FTC attorney, expects the trial to provide a showcase for the tension between state and federal laws. It's also likely to demonstrate the conflict between a party exerting intellectual property rights and another party seeking to prove antitrust violation claims. "The question here is: to what extent does Microsoft have lawful copyrights or patent rights that allow it to do what it's doing, or to what extent is it going beyond those rights?" Grimes said.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

14 minutes ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

6 hours ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

8 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

8 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

10 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

10 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

11 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

12 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

12 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

12 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

13 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

13 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

13 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

13 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

16 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

17 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

18 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

19 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

20 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

21 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule