EU Warns, Patent Disputes Heat Up, and Other Legal News

Antitrust regulators for the European Union (EU) have said they will penalize Microsoft unless the company can answer allegations that it has illegally tied its digital media playback software to Windows and failed to give other vendors information they need for their server software to interoperate with Windows desktops. The EU’s proposed penalties could hamper Microsoft’s digital media strategy and help competitors in the server market, such as Sun Microsystems. Microsoft will probably work with regulators to settle the case under less restrictive terms. Otherwise, it will likely face a verdict by the end of 2003.

In other legal news, Microsoft altered its licensing terms for certain communications protocols, to stay in compliance with an earlier antitrust settlement with the U.S. Department of Justice (DoJ); lost and will appeal a US$521 million patent infringement verdict on browser technology; and settled a patent dispute with force-feedback company Immersion.