Share
Explore BrainMass

Business Law for Microsoft and Windows OS

1. Microsoft sells Windows OS and will only sell it if the buyer also agrees to purchase Microsoft Messenger. It does not sell messenger separately. Is this legal? What should the government do? Support your answer with appropriate arguments and references.

2. Study the NYSE's Web site and write a note about its regulatory role. Debate the merits of the recent scandal relating to Dick Grasso's compensation in the context of the NYSE's role as a regulatory body. To answer this question, you can search Business Week for terms such as Grasso, executive compensation, and excessive compensation. There are many examples in current events that relate to executive compensation.

http://www.nyse.com/

Solution Preview

1. Microsoft sells Windows OS and will only sell it if the buyer also agrees to purchase Microsoft Messenger. It does not sell messenger separately. Is this legal? What should the government do? Support your answer with appropriate arguments and references.
It is legal. The reason is that the Microsoft Messenger is not a unique product. There are several other messengers available and some of them free. From the legal perspective this can be described as pro competitive, because Microsoft Messenger is attempting to compete with other well entrenched messengers. (See United States v. Microsoft 253 F.3d at 95). Tying essential patented products with unessential products does not constitute a misuse of the patented product. In this case the patented product is the Windows operating system. Courts have held that several tie ins are pro competitive (See Illinois Tool Works Inc. V. Independent Ink, Inc. 126 S. Ct. at 1292). In this case Microsoft can claim that it is bundling the messenger with Windows to make the Messenger competitive. Further, Microsoft can include the argument of business justification. A user of the operating system may like to use the messenger and so it is offering its version to its own customers, free. What the government can ...

Solution Summary

This answer provides you an excellent discussion on Business Law

$2.19