Microsoft is asking the European Union to accept the deal it has
negotiated with the US government to end its prolonged antitrust
battle.
At the same time it is fighting off pressure to license its Windows
operating system source code to other companies as part of the EU
antitrust lawsuit.
The US settlement, which has yet to be accepted by a trial judge
and is still opposed by nine states, requires Microsoft to disclose
technical details about its Windows server software.
In a written response to the European Commission's allegations that
Microsoft has abused its dominant position in the operating-system
market, Microsoft argued that compulsory licensing of its codes
would breach international copyright law.
Microsoft filed its 102 page confidential reply with the European
regulator on 16 November.
The reply was handed out to other companies involved in the
lawsuit, including Sun Microsystems, whose complaint to the
European competition regulator in 1998 sparked the investigation
into the software maker.
It appears that Microsoft is focusing its defence in the European
case on the fact that Europe has signed up to the international
intellectual-property agreement known as Trade-Related Aspects of
Intellectual Property Rights (TRIPS).
This agreement allows for compulsory licensing of patented codes if
they are essential for interoperability with other products.
However, it is less clear with copyright. Under TRIPS and US law,
ideas, principles and methods of operation cannot be granted
copyright. But there is a fine line between what can and cannot be
copyrighted.
Microsoft faces fines of up to 10% of its global sales if the
Commission finds it guilty of abusing its dominant position. It may
also be forced to make structural changes to its business practices
in order to allay the European Commission's concerns.
Commission spokeswoman Amelia Torres declined to comment on the
leaking of Microsoft's written response.
Microsoft's senior counsel in Europe, John Frank, said: "I don't
think it helps anyone to have selected quotes leaked."
Frank said that he and his team were "working to resolve the
dispute" with European regulators.
The European Commission has set a 7 January deadline for comments
from other companies involved in the case.