April 23, 2007

ECIS: it is standard industry practice to offer interoperability information royalty-free

Brussels – 23 April 2007 – “It is standard industry practice to license interoperability information royalty-free,” said Simon Awde, Chairman of the European Committee for Interoperable Systems (ECIS). “We therefore view Microsoft’s statement today urging the Commission to provide greater clarity on the royalties that the company can charge, as just another example of its chronic foot dragging towards anti-trust compliance,” he added, pointing out that a full three years after the EU’s March 2004 Decision, Microsoft still has not properly complied with the necessary remedies.

“Microsoft’s wish for ‘a constructive conversation’ with the Commission on this issue confirms our concerns,” he commented. There are multiple examples of Microsoft licensing its interoperability information on a royalty-free basis in those areas where it has not achieved a dominant position. “So, why does Microsoft need a conversation with the Commission to set suitable royalty rates,” Awde asked.

Awde concluded that “there is no doubt that the 2004 Decision obligates Microsoft to license. We can only believe that by trying to impose a prohibitive royalty rate, Microsoft is effectively refusing to license.”

Background

After one of the most extensive and lengthy investigations in the history of EU competition law, the European Commission condemned Microsoft in March 2004 for foreclosing competition for work group servers and media players. To remedy this market abuse, the Decision requires Microsoft to not only disclose necessary interoperability information, but also to license it on fair and reasonable terms. It further stipulates that Microsoft can charge only for the innovative value of the interoperability protocol, and not simply for the right to interoperate with Microsoft‘s operating system.

About ECIS

ECIS is an international non-profit association founded in 1989 that strives to promote market conditions in the ICT sector allowing vigorous competition on the merits and a diversity of consumer choice. ECIS has actively represented its members on many issues related to interoperability and competition before European, national and international bodies, including the EU institutions and WIPO. ECIS’ members include large and smaller information and communications technology hardware and software providers Adobe, Corel, IBM, Linspire, Nokia, Opera, Oracle, RealNetworks, Red Hat, and Sun Microsystems.

ECIS media desk at Burson-Marsteller:

Tel: +32 2 743 66 10

Fax: +32 2 735 85 28

Email: info@ecis.eu

Website: www.ecis.eu