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Microsoft loses IP case in China

Microsoft Corp has been ordered by Beijing’s No 1 Intermediate People’s Court to stop selling versions of its Windows operating systems that include fonts designed by a Chinese technology company, Zhongyi Electronic, citing a violation of the scope of licensing agreements. The court ruling will affected the Chinese versions of its Windows 98, 2000, 2003 and Windows XP operating systems.

China has long been a concern for foreign companies seeking to protect their intellectual property. Under pressure from the US government and the European Union, the country has increased enforcement of its intellectual property laws. The ruling signals a wave of newly assertive local firms ready to take their own IP claims to court, a paradigm shift that first became apparent in Taiwan. Initially, Taiwanese companies were usually on the defensive of litigation. In recent years, however, local companies are more commonly initiating litigation.

In a statement, Microsoft expressed it will appeal the ruling.