Kitsap Peninsula Business Journal
8-7-2001
Microsoft to change licensing
agreements because of court ruling
   Microsoft’s Corp.’s decision to change its licensing agreements with computer manufacturers appeared to have little impact, as computer makers seemed hesitant to change their policies and critics said it does little to appease their concerns.

Analysts speculated that the move was designed to help Microsoft’s image without hurting its bottom line.

Microsoft, responding to a recent court ruling that said its competitive practices broke the law, will change its licensing agreements with computer manufacturers, allowing them to remove shortcuts to Microsoft’s Internet Explorer browser from the Windows computer desktop.

The company also announced that PC manufacturers will be able to continue to add icons of other technology companies, such as RealNetworks Inc. or AOL Time Warner Inc., on the forthcoming version of Windows, called XP.

Previously, the company had sought to create a completely clean desktop for the new system, due out Oct. 25, free of both Microsoft and competitors’ icons. In light of the ruling, that plan would have been illegal, because it prohibited manufacturers from adding shortcuts to competing products.

Microsoft’s earlier licensing agreements allowed manufacturers to add icons such as the one to rival Internet browser Netscape Navigator, but prohibited them from removing Microsoft icons such as the one for Internet Explorer.