MRTPC probe against Microsoft

By Our Legal Correspondent

NEW DELHI, AUG. 11. Barely a month before the Microsoft chief, Mr. Bill Gates' second visit to India in three months, his company finds itself facing the prospects of a further probe by the Monopolies and Restrictive Trade Practices Commission (MRTPC).

A preliminary investigation conducted by the MRTPC's Director- General of Investigation and Registration (DGIR), on a complaint against Microsoft Corporation (India) Pvt. Ltd., has already revealed that the ``Indian company did not enter into any agreement with the buyers of the software or other products''.

In a panic reaction, Microsoft officials, flanked by a battery of lawyers, met the DGIR in his office and sought clarifications from him. The Microsoft officials had reason to panic because a Press Information Bureau (PIB) release issued in the morning had inadvertently suggested that the DGIR ``had recommended action by the MRTPC''. (Late in the evening the PIB withdrew its release as cancelled).

According to the preliminary report submitted by the MRTPC DGIR, the complainant had made allegations of monopolistic and restrictive trade practices carried on by Microsoft Corporation, USA and its Indian subsidiary following which the Commission ordered preliminary investigation by the DGIR.

In his report submitted to the Commission, the DGIR said ``the restrictions imposed on the buyers of software products in terms of End Users License Agreement (EULA) were attributed to the principal company in USA. The software products of the USA company had been pleaded as `Intellectual Properties' and not the products simplicitor''.

The report further said ``as per the provisions of the MRTP Act, 1969, a licensor has a right to attach any conditions on the licensee to protect its patent/copyright. Accordingly, any further action in this matter has been left to the discretion of the MRTP Commission''.

Later in the day, Microsoft said reports about recommendation of action against it were ``factually incorrect''. Quoting the DGIR, the statement said ``the DGIR of the MRTP Commission confirmed that he has submitted his report to the Commission but at the same he reaffirmed that no recommendation for initiation for any inquiry has been made against Microsoft India''.

The release further said ``he has also confirmed that suggestions that the DGIR has recommended action by the MRTP Commission against Microsoft India is false and factually incorrect. The DGIR has given permission to quote him in this regard'', the statement added.

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