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Microsoft ordered to stop some Windows sales

  • Source: Global Times
  • [05:31 November 19 2009]
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Microsoft Corp has been ordered by a court to stop selling versions of its Windows operating systems that include fonts designed by a local company, citing a violation of licensing agreements.

Beijing's No.1 Intermediate People's Court found Microsoft had exceeded the scope of a previous agreement to use and sell fonts owned by Zhongyi Electronic, said Lan Fei, a spokeswoman of the Beijing-based company.

Microsoft will have to stop selling the Chinese versions of its Windows 98, 2000, 2003 and Windows XP, according to the court. It is unclear when the ruling will take effect or how many copies are affected. Microsoft said it will appeal the ruling.

"Microsoft respects intellectual property (IP) rights. We use third party IP only when we have a legitimate right to do so," the firm said in a statement.

"By winning this case against an internationally well-known company like Microsoft, it shows that China, although still a developing country, is taking positive steps to protect intellectual property rights," said Ling Xinyu, the lawyer for Zhongyi.

The World Trade Organization's legal system provides many opportunities for both developing and developed countries to exploit. However, Chinese companies lack the necessary experience to take advantage of these protocols, Ma Xiushan, deputy secretary general of China Intellectual Property Society (CIPS), told the Global Times.

While Western companies usually exploit lawsuits to increase their bargaining power, Chinese companies should learn to do the same, Ma said.

Zhongyi said in a statement on its website that the agreements signed only permitted Microsoft to use its intellectual property in Windows 95, but the US tech giant used it in subsequent versions of its Chinese Windows operating systems.

The Zhongyi's spokeswoman said the company was studying the ruling and could seek compensation from Microsoft for damages.

Timing is important for litigation. A company may discover the IP rights violation early, but it can wait until it becomes a huge problem and have sufficient evidence to sue the offender so that its gain can be maximized, Ma of CIPS said.

However, "to fight against the IP rights violations by large foreign firms will require a long process for Chinese companies," he said.

Agencies and Cong Mu contributed to this story