14 DAY TRIAL // Microsoft has issued an official response to the European Antitrust Commission's Statement Objections to the royalties the Redmond Company has associated with its protocol technology licensing program in Europe.
The EU Commission failed to agree with the premium pricing model proposed by Microsoft for a selection of its Windows protocol technology. The argument that the EU Commission has put forward is that it was unable to associate the premium pricing with the actual value of the innovations behind Microsoft's patented technology. Microsoft Senior Vice President and General Counsel Brad Smith is the voice through which the Redmond Company has responded to the EU Commission.
Smith underlined the fact that Microsoft feels disappointed with the EU Commission dragging its feet over the issue of evaluating its pricing proposal and of the threats of additional penalties. "Microsoft has spent three years and many millions of dollars to comply with the European Commission's decision. We submitted a pricing proposal to the Commission last August and have been asking for feedback on it since that time. We're disappointed that this feedback is coming six months later and in its present form, but we're committed to working hard to address the Commission's Statement of Objections as soon as we receive it. We do have a different perspective on the underlying facts and the proposed findings," Smith commented.
Microsoft revealed that the protocol licensing prices are 30% cheaper than for comparable technology, according to a PricewaterhouseCoopers' analysis. Additionally, Microsoft fended off EU Commission's view that its protocol technology is not innovative. "The findings appear to attempt to regulate the pricing of our intellectual property on a global basis and not just within the EU. We believe it's unwise for governments to regulate pricing beyond their borders and that if other authorities all took similar views of their power, companies would be unable to comply with contradictory rulings," Smith added.
Microsoft also responded to threats of additional financial penalties from the EU Commission. The Redmond Company could face extra fines of 3 million euros per day. "We've always said we are willing to entertain any reasonable price offer from any potential licensee, and that we are willing to be flexible to meet any unique business needs of potential licensees. Currently, we're in negotiations with a number of potential licensees," Smith concluded.