Analysis on the Data of Microsoft’s Combat against IPR Infringement

On 23^rd February 2012, an article Michael Jordan Wants Respect for his Brand in China in Business Week reported Michael Jordan’s lawsuit against China Qiaodan Sports in China, and said that “After all, China is notorious as a haven for intellectual property rights (IPR) piracy. Microsoft (MSFT), to name just one example, has struggled for years to fight against unauthorized versions of Windows and Office. What makes Michael Jordan think he can succeed where Bill Gates has failed?”

But on 21^st March, Mr. Simon L. K. Leung, Chairman and CEO of Microsoft China stated on the interview by Wallstreet Journal that the situation is improving and he credited a campaign against piracy led by China’s Ministry of Commerce, and said an increasing number of state-owned enterprises are using licensed software.

Microsoft appears to be a loser in China by the post of Business Week, while it’s a promising company in the essay of Wasllstreet Journal, then which one is the correct answer? We searched the news report concerning Microsoft’s combat against infringement in China since 2010 in Baidu News, the following statistics are concluded:

In addition, we also find 11 judicial judgments of Microsoft. And to analyze from the materials, Microsoft has not only initiated the lawsuit against the individual, but also against those large scale companies and PC sellers. And the strategy is mainly focusing on the market adjustment from the origin, so that the circulation of pirated software could be stemmed, and also the habit of purchasing genuine ones for consumers could be cultivated. Furthermore, to large scale companies, including some listed companies, a more rigid measure for lawsuit will be taken by Microsoft and also a higher compensation claimed. And these companies tend to take the compensation claim to protect their own commercial reputation.

We believe, it’s just a tip of iceberg, and the above listed compensation could be small part of all the compensation got by the company through lawsuit or purchase contract after mediation. Meanwhile, we also find in the negotiation as the representative of clients that Microsoft appears to be mighty, and that might be fueled by its consecutive win and high compensation judged in the lawsuit. As to the criminal investigations, according to our research, many suspects have been sent into the prison by Microsoft, and the crime involves the crime of copyright infringement and the illegal manufacture and sale of registered trademark. For the threshold of crime determination in China is low, any infringement against Microsoft’s IPR could be easily decided criminally guilty.

And this is the current situation in China, though the piracy is not rare, and by a statement made by Ballmer, CEO of Microsoft, in 2011, Microsoft China only gained 5% benefits as that in U.S.A under the same market scale, the lawsuit filed by the IT giant are almost all supported by local courts with some sever infringer sent into prison. We believe, the income gap between China and American market of Microsoft will definitely become narrow for the IPR protection environment in the state are improving.

Author: Mr. Huang Mengren
Attorney-at-law of DeBund Law Offices
Co-author: Mr. You Yunting
Founder & Editor-in-Chief of Bridge IP Law Commentary
Partner & Attorney-at-law of Shanghai DeBund Law Offices
Email: Bridge@chinaiplawyer.com, Tel: 8621-5213-4900,
You can also find us on Facebook, Twitter and Linkedin.

Bridge IP Law Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.

Short Link: