The Japanese Fair Trade Commission yesterday told Microsoft to
remove a provision from licence agreements with Japan's computer
makers that forbids them from suing Microsoft for any alleged
breach of patent rights.
The Japanese Fair Trade Commission yesterday told Microsoft to
remove a provision from licence agreements with Japan's computer
makers that forbids them from suing Microsoft for any alleged
breach of patent rights.
According to Microsoft, the clause, known as the non-assertion
of patents, or NAP, provision, is designed to encourage computer
manufacturers to raise any intellectual property concerns they may
have before shipping a new version of its Windows operating
system.
But Toshihiro Hara, director of the First Special Investigation
division at Japan's Fair Trade Commission, speaking to Reuters,
argued: "There is a high probability that the provision will
discourage PC makers from developing their own technology,"
In February, acting on complaints, the JFTC raided the offices
of Microsoft Japan looking for evidence of anti-competitive
behaviour. Shortly afterwards Microsoft agreed to remove the
provision from new agreements with computer makers.
This, as far as the JFTC is concerned, is not good enough.
According to yesterday's Recommendation, Microsoft's conduct "shall
be construed as dealing with PC manufacturers on conditions which
unjustly restrict their business activities", in violation of
Japan's Antimonopoly Act.
The Recommendation requires that Microsoft "terminate" the
clause in "the current and previous agreements concluded with
Japanese PC manufactures".
However, Microsoft responded by confirming that it would not
remove the provision from past agreements, and would be seeking a
review of the decision.
"We believe that the provision at issue fairly balances IP
protection and the need to create a stable environment for the
development of the IT industry by avoiding disruptive IP disputes,"
the company said in a statement. "While we decided earlier this
year to remove this particular provision in contracts going
forward, this balancing provision has a limited continuing effect
under past agreements."
The Commission is therefore likely to institute a series of
hearings, after which it will issue a decision. This can then be
appealed to a Tokyo court, according to the Washington Post.
