MRTPC to hear Microsoft case tomorrow

DEC 3: Microsoft India's case will come up for hearing tomorrow before the MRTPC on the software giant's alleged adoption of unfair and re...

DEC 3: Microsoft India8217;s case will come up for hearing tomorrow before the MRTPC on the software giant8217;s alleged adoption of unfair and restrictive trade practices by imposing restriction on the buyers in the form of end user licence agreement EULA.

Monopolies and Restrictive Trade Practices Commission MRTPC had earlier asked its investigative wing, Director General of Investigation and Registration DGIR, to submit its report by December 4.

The commission, in its previous hearing in September, had upbraided the DG for not carrying out complete investigation against Microsoft and its Indian subsidiary and had ordered it to make an enquiry on a priority basis.

The commission8217;s chairman B M Lal and member R L Sudhir further asked the DG to probe whether the company8217;s end user agreement was violative of MRTP Act, Contract Act or the consequences as per the MRTP Act in case it was protected by the International Copyrights Treaties.

The complaint was filed by a Mumbai-resident who had alleged that Microsoft8217;s EULA imposed restrictions on buyers of its software products.

He said the agreement forbids the use of softwares by the licensee unless the buyer acquires an access licence for each computer attached to the server and buyers are restrained from using the software on more than one computer.

The complainant, L J Shah, had alleged that the software Microsoft India was indulging in monopolistic and restrictive trade practices by preventing the buyers from using its softwares on more than one computers.

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Thus, even if a small company which is in possession of five to 10 computers has to buy five to 10 full pack licences as per the EULA, the complainant said.

However, according to DGIR8217;s preliminary investigation, Microsoft had submitted that its software product was an intellectual property and not the product simplicitor.

Thus EULA did not violate the MRTP Act and a licensor had a right to attach any condition to the licensee to protect its rights which is based on International Copyrights Treaties and other Copyrights Laws.

Meanwhile, DG also alleged that Microsoft was reportedly issuing letters to its executives offering them gifts, if they could supply information about illegal use of their softwares against the terms and conditions of EULA.

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The DGIR added that the Microsoft8217;s Indian subsidiary does not develop any software or manufacture any product as it has no authority to prescribe prices of the software and other products of Microsoft Corporation, USA.

It added that the Indian company was only engaged in the promotion and marketing of softwares and other products manufactured by the parent company.

The restrictions imposed on the buyers of software product in terms of EULA had been imposed by the US-based parent company, it said.