By forcing Microsoft to play by European rules and comply with court orders, such as the ruling that forces Microsoft to strip Media Player from Windows in Europe, the European Commission may hope to set a precedent for controlling corporations with a firm hand.
Robert Badal, a partner in the Los Angeles office of Heller Ehrman White & McAuliffe, and who specializes in intellectual property law, believes the ruling illustrates a growing gap between the approaches of the EU and the U.S. to intellectual property.
Judge Bo Vesterdorf’s decision not to grant Microsoft a stay from the penalties while it appeals the European Commission’s antitrust penalties, he said, illustrates that the EU is quick to conclude that a company should be compelled to share its intellectual property with competitors. “This will have a chilling effect on innovators,” he said, adding that there is a direct correlation between the amount of innovation a company produces and the risk of being forced to share those innovations with competitors.
Directions on Microsoft analyst Matt Rosoff said, “What Microsoft doesn’t want is a legal precedent under which a government agency can tell Microsoft what it can and can’t put into Windows.
The European Court of First Instance refused to relieve Microsoft from complying with the judgment levied by antitrust regulators, thereby enforcing penalties that go much further than what the U.S. Department of Justice imposed in an antitrust settlement.
On the other hand, if the penalties had been suspended, by the time the appeal process ended, the EU’s order to sever the media player from the operating system might have been moot.
“Microsoft was asking the court to take a huge leap of faith pending outcome of final decision,” said Andre Bywater, an attorney in the Brussels office of Eversheds, LLP. He said that in domestic cases in both the UK and France, it’s extremely difficult to persuade courts to suspend judgments.
CompTIA, a computer industry trade association of which Microsoft is a member, said the ruling would have negative consequences for the IT industry and consumers.
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