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MS OS and MS Applicaitons - How leverage works
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Info-Policy-Notes | Available from listproc@cptech.org
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INFORMATION POLICY NOTES
November 24, 1997
- Discussion of Microsoft Leverage of Windows
to market its applications
- Special attention to distribution license for
Common Control DLL, which is an example of
Microsoft licensing practices which require
competitors to market MS applications if they use
updated Windows components
The past few days there have a few articles which talk about the
ways that Microsoft is seeking broad integration of Windows (3.1, 95 or
NT) operating systems with Microsoft applications as a way of
"leveraging" the OS market share for the applications. This was the
topic by James Gleick's interesting "Justice Delayed" in the November
23, 1997 New York Times Magazine (not on the Web at this time), my own
article in Intellectualcapital.com
http://www.intellectualcapital.com/issues/97/1120/icpro.asp (no comma),
and the recent Department of Justice reply brief in the Microsoft case.
One item referenced in the November 20, 1997 DOJ brief was a
December 20, 1996 document sent by Microsoft's Jim Allchin (who now
heads Microsoft's personal and business systems group) to Paul Maritz
(group vice president for Microsoft's platforms and applications group.
The message, which was titled: "concerns for our future," states:
1. Ensuring that we leverage Windows.
I don't understand how IE is
going to win. The current path is simply
to copy everything that Netscape
does packaging and product wise. . . .
My conclusion is that we must
leverage Windows more. Treating IE as just
an add-on to Windows which
is cross-platform [is] losing our biggest
advantage -- Windows marketshare. We
should dedicate a cross group team to come
up with ways to leverage Windows
technically more. . . . .
We should think first
about an integrated solution -- that is
our strength.
[Gaspar Conf. Decl. 17, Exh. 14 (December
20, 1996 e-mail from Jim Allchin to Paul
Maritz).
The DOJ brief is on the Web at:
http://www.usdoj.gov/atr/cases3/micros2/1277.htm (no period). Other DOJ
documents in the case are available from
http://www.usdoj.gov/atr/cases3/micros2/micros0.htm
In a November 19, 1997 post to info-policy-notes, I reported
Great Plains Software's letter to DOJ, objecting to Microsoft's decision
to force third party software companies to distribute Microsoft's
Internet Explorer (MSIE), if they distribute the latest version of the
"Common Control DLL,"
(http://www.essential.org/listproc/info-policy-notes/msg00274.html), a
file which is part of Windows.
Brett Glass, wrote to say:
"COMCTL32.DLL is a general-purpose library that's
used by virtually every application. One thing this
particular article did not point out, though, is the
consequences that ripple through from the MSIE
license agreement.
These are key to understanding the full
import of the tying arrangement." As MSIE licensees
(and all developers must be, since COMCTL32.DLL is
fundamental to shipping a Windows app), are
literally required to make their Web sites
incompatible with Netscape browsers. What's more,
they're required to issue press releases saying
they've adopted IE, creating the perception of
incredible momentum in the press. What's more, if
they get on Microsoft's bad side, it pulls the
license and they can no longer ship product."
At Brett's suggestion, we reviewed Exhibit C of the Microsoft
distribution license for MSIE. A copy is attached below. It is a
textbook case of Jim Allchin's proposal for leverage.
Jamie Love
love@cptech.org
202.387.8030
http://www.cptech.org
EXHIBIT C
Marketing Activities
Company shall participate in the following marketing related
activities:
(i) Issue a press release announcing that Company has licensed
Internet Explorer, Outlook Express, or NetMeeting within sixty (60) days
following execution of this Agreement, or authorize Microsoft to use
Company's name in press releases to identify Company as a licensee of
Internet Explorer, Outlook Express or NetMeeting. The party preparing
the press release shall provide such release to the other party for
review at least five (5) days prior to release;
(ii) Use and display the Microsoft Internet Explorer logo online logo
on the home page for Company's Internet Product along with a hot link to
www.microsoft.com/ie on home page of Company's primary web site(s) in
accordance with the terms set forth at www.microsoft.com/ie/logo, or any
successor thereof;
(iii) Use the Microsoft Internet Explorer name and logo depicted in
Exhibit A in Company' packaging, advertising an promotional materials.
Such use shall be pursuant to the Guidelines in Exhibit A and
Microsoft's standard trademark policies as may be provided by Microsoft
to Company from time to time;
(iv) Make Internet Explorer and Outlook Express available for use
internally under Company's customary information services policies and
procedures; and
(v) Deploy [and promote where appropriate] at least one advanced
feature of Internet Explorer 4 (e.g., Channel webcast optimization via a
CDF file, Dynamic HTML, or NetShow content) on Company's Internet
Product page.
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