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Microsoft Amends Windows License Rules

Antitrust deal gives software developers better terms.

Joris Evers, IDG News Service

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Microsoft will cut the cost and ease restrictions for software developers who license certain Windows protocols to make their products work better with the operating system, Microsoft has said.

Revised licensing terms for the Windows communications protocols will be published later this week, most likely on Wednesday, according to Matt Pilla, a Microsoft spokesperson. The revision is part of Microsoft's antitrust settlement with the U.S. Department of Justice, he said.

Relaxed Terms

The new license terms are simpler, assess lower initial costs, and will eliminate a previously required nondisclosure agreement, Microsoft said in a statement sent via e-mail.

As part of the settlement in its landmark antitrust case, Microsoft has agreed to make its communications protocols available to third parties on "reasonable and nondiscriminatory terms." Microsoft started licensing the protocols in August last year but is now revising the licensing terms in response to comments from the DOJ and licensees, Pilla said.

The Windows communications protocols allow other software products to communicate better with Windows. Microsoft currently has a handful of licensees, typically companies that are building server offerings and want them to interoperate better with Windows, Pilla said.

Other Changes Ahead

The license changes will not be the last. For example, Microsoft "in the near term" plans to offer a 50 percent refund option, Pilla said. Companies that purchase rights to use the protocols and then within a year decide not to use them will be entitled to a 50 percent refund, he said.

Microsoft and the DOJ also are still examining the royalties charged for the protocols, according to Microsoft. In a statement issued Monday, the Justice Department said it would evaluate the royalties over the next several weeks.

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