Microsoft, Japanese regulators meet over license terms

TOKYO -- Lawyers for Microsoft met with investigators from the Japan Fair Trade Commission (JFTC) on Friday to clarify the commission's position in an ongoing dispute over Microsoft's software licensing practices in Japan.

The JFTC said last July that provisions in Microsoft's licensing agreements with Japanese PC vendors violate Japan's Antimonopoly Act. The provisions restrict possible legal action by the vendors should they believe that Microsoft has infringed on their technology patents.

Microsoft has denied any wrongdoing. It says it dropped the disputed provisions from new licenses last February, although it retained the provisions in existing licenses. Less than a week after the provisions were dropped, the JFTC raided Microsoft's Tokyo headquarters and launched its investigation.

Friday's meeting was held at Microsoft's request to clarify the terms of the commission's case, Takujiro Kono, deputy director of the JFTC's First Special Investigation Division, said via e-mail on Monday. Neither Microsoft nor the JFTC raised any new legal issues or questions, he said.

Microsoft has yet to clarify its counterarguments in the case, according to Kono. A further meeting is planned for March 11 where the JFTC is expected to answer additional questions from Microsoft, he said.

"The basic situation is unchanged. Because Microsoft has not yet given its arguments the possibility of a resolution is uncertain," Kono said.

Friday's meeting was the third time the two sides have met since the JFTC listed its charges in October.

"We are in continuing discussions. ... It's still very early in the process," said Aki Araki, a spokeswoman for Microsoft Co. Ltd., the U.S. company's Japanese subsidiary.