January 23, 2004

Microsoft tweaks protocol licensing program

Arrangement stems from antitrust suit

In response to criticism from U.S. government antitrust regulators, Microsoft on Friday detailed additional changes to a licensing program for Windows protocols it created as part of its landmark antitrust settlement with the federal government.

The changes are to make it easier and more attractive for software makers to license the protocols, which can be used to make server software work better with PCs running Microsoft's Windows client operating system, Microsoft said in a statement.

Microsoft is reviewing the proposed changes to the Microsoft Communications Protocol Program (MCPP) with the U.S. Department of Justice and officials from the states it settled with. The new license agreement should be posted to the MCPP Web site soon, the Redmond, Washington-based software maker said.

The proposed changes will cut the length of the license agreement in half and change the royalty model for protocols for six of 14 server tasks to a flat fee. Also, about 20 protocols for general network connectivity will be licensed without a charge, Microsoft said.

The company also proposes changes to the license to make it easier for companies to sign it. Microsoft's right to audit a licensee's users will be scrapped and licensees will get a clear right to distribute to another MCPP licensee on a royalty-free basis, the vendor said.

Changes in the licensing program had been expected. Microsoft earlier this week said it would detail revisions on Friday after the states that it has settled the antitrust case with last week critiqued the program in a court filing on Microsoft's compliance with the November 2002 settlement.

The MCPP was created to allow software makers to better compete with Microsoft, which has a monopoly in the desktop operating system market. However it doesn't seem to be working as intended as only 11 companies have signed up. Microsoft is in discussions with more than 20 additional potential licensees, it said.

Microsoft has relied on industry and government feedback to improve the MCPP and make it more appealing to software developers as the licensing program is unprecedented and the technology it covers complex, Mary Snapp, Microsoft corporate vice president and deputy general counsel, said in the statement.

Microsoft modified the MCPP last August, revamping the royalty structure and revising license terms.

The MCPP Web site is at:

http://members.microsoft.com/consent/info/Default.aspx

 

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