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Microsoft Accepts Most EU Demands, But Not Over Source

JoeGi writes "Microsoft sent a letter to EU regulators Monday accepting 20 out of the Commission's 26 demands. According to BetaNews, 'The remaining stumbling block to full compliance is source code licensing' as Microsoft is refusing access to open source projects. Microsoft officials told BetaNews they are trying 'to find a way that companies can implement these technologies in code that would get distributed with open source products, but the source code wouldn't be published itself.'"

2 of 587 comments (clear)

  1. Re:...wtf? by amliebsch · · Score: 5, Informative

    RTFA. The dispute has to do with licensing Microsoft's proprietary code, and whether or not they were locking open-source projects out of the licensing agreements. MS probably was, out of fear that if their code was incorporated into an open-source project, it would be open-sourced. The EU is not requiring MS to open-source their code.

    --
    If you don't know where you are going, you will wind up somewhere else.
  2. AP Wire Text by Anonymous Coward · · Score: 5, Informative

    This has more information than the BetaNews article - full AP Text.

    Microsoft says it will meet most EU demands

    By ALLISON LINN
    AP BUSINESS WRITER

    Microsoft Corp. says it will meet most demands by European Union regulators on making software blueprints available to competitors, including lowering licensing fees, but is seeking further talks on some issues.

    Microsoft said it delivered a letter to EU regulators on Monday detailing its intentions.

    The EU last month threatened new fines if Microsoft doesn't make it easier and cheaper for competitors to see the blueprints, known as source code.

    Brad Smith, Microsoft's top lawyer, said the Redmond, Wash.-based company told the European Union it isn't opposed to licensing the code to open-source developers as long as it's assured that its intellectual property will be safeguarded.

    Open-source programs led by the Linux operating system pose perhaps the most serious threat to Microsoft because their code is freely shared, while Microsoft closely guards its source code.

    Click Here
    Smith said Microsoft also wants clarification on whether concerns that view its source code can develop and distribute software outside of Europe.

    EU spokesman Jonathan Todd said Monday afternoon that he could not yet confirm that the Commission received Microsoft's latest letter, but said "We have received a letter in response" to our questions that Microsoft sent before Easter.

    He said the EU was "studying it carefully." He gave no further comment on the content of Microsoft's letter or on Monday's announcement

    The EU compelled Microsoft, in a March 2004 antitrust ruling in which it fined the company 497 million euros ($640 million dollars), to share the source code with competitors who make server software so their products can better communicate with Windows-powered computers.

    European regulators also ordered Microsoft to produce a Windows version minus its multimedia player to provide a more level playing field for competitors such as RealNetworks Inc.

    Microsoft has complied with that order but says it will only make the software available in Europe. Dow Jones Newswires reported last week that Dell Inc., a leading computer maker, would not offer the stripped-down Windows version as an option.

    Company officials would not provide The Associated Press with a copy of the letter they submitted to the EU on Monday.

    But they listed these changes that they said they had accepted in the server source code reviewing procedure:

    -Microsoft will customize licenses for developers who want to pick and choose from source code rather than buying a preset package.

    -The company will give competitors a price break on reviewing source code and more time to decide whether they want to license it - charging 500 euros ($645) a day for up to eight days instead of allowing a maximum of two days at 3,850 euros ($4,965) for the first day or 5,390 euros ($6,950) for two days.

    Microsoft spokesman Jim Desler said the company was working on a new set of prices for licenses to address the commission's concerns that previously proposed fees of $100 to $600 (77 euros to 465 euros) per server were too high.

    Desler would not elaborate on any details of the new royalty fee structure.

    Andy Gavil, a Howard University law professor who is co-writing a book on Microsoft's antitrust battles, says the company has good reason to try to elongate the process, especially given its plans to appeal the March 2004 order.

    Microsoft has been ordered to comply with the ruling even as it seeks an appeal.

    Gavil said Microsoft is concerned about losing the freedom to build new features into its operating systems and that sharing too much with competitors will weaken its business.

    "In a sense, they're trying to define a software philosophy and a business strategy," Gavil said.

    Smith emphatically denied that the company has any interest in slowing down the proces