This is taken from the Deseret News (Salt Lake City, Utah)
December 4, 2003, Thursday
SECTION:
BUSINESS;
Pg. E03
By Helen Jung Associated Press
SEATTLE -- Microsoft Corp. said Wednesday it will open its portfolio of patented technology for use by academic researchers and make it easier for companies -- including competitors -- to license its intellectual property.
The company said the changes are designed to respond to other technology companies who have wanted Microsoft to license its patented technology. Other companies, including IBM, have long made their intellectual property available.
"A number of other industry leaders have done (this) for a number of years and in some cases decades," general counsel Brad Smith said. "We're joining their ranks today."
The move comes as the company faces potentially severe penalties from the European Union over alleged anticompetitive behavior, that could include forcing the company to disclose more of its technical information in its Windows operating system.
Smith noted that the new licensing program satisfies some of the long-standing concerns from European regulators, but said it is not directly aimed at the European inquiry.
"This kind of step is consistent with the kinds of steps that others in the industry including our competition and some in government have been encouraging us to take," Smith said, "but this is something that has been in the works for some time."
Microsoft, based in Redmond, Wash., announced two programs.
The first is a royalty-free program, in which the academic community may access its portfolio of copyrighted and patented technology for noncommercial use and research. Microsoft had previously allowed only limited access.
The second is for commercial companies wanting to license its technology.
Microsoft on Wednesday announced two specific technologies available for licensing -- one for file transfers and one that makes reading text on computer screens clearer. But Microsoft is "open for business in terms of licensing our intellectual property," Smith said.
The move reflects that Microsoft is genuinely trying to change its ways, said Joe Wilcox, an analyst with Jupiter Research.
"This is a company that historically has been very, very tight with its intellectual property," said Wilcox. "And now it's realizing that it has something valuable that it can offer to industry, government, educational institutions and that sharing is a good thing -- for the company image, for fostering cooperation with other companies and for advancing technological adoption that also benefits Microsoft," he said.
"Microsoft is maturing and is beginning to recognize it must take more of a leadership role."
Posted by Morgan
at 3:35 PM EST
