In the crosshairs of the European Commission for failing to play nice with others, Microsoft (Quote) announced today that is has signed its first licensee for protocol technology under the Work Group Server Protocol Program (WSPP), the European licensing program.>
The deal means that Aliso Viejo, Calif.-based Quest Software (Quote) will have access to Microsoft's protocol technology in order to help its European customers achieve interoperability in heterogeneous environments by, for instance, securing and managing user identities across Unix, Linux and Java authentication systems, as well as Microsoft's Active Directory.
Under terms of the agreement, Microsoft will earn royalties of 5.25 percent of net revenues generated by any Quest products that incorporate the protocols.
Microsoft said that Quest actually signed the agreement last week, on the day that the European Commission filed a Statement of Objection that pillories Microsoft for charging too much its protocols.
Microsoft attorney Erich Andersen said the signing date is symbolic and that "this agreement clearly shows that Quest believes the royalties are reasonable."
Andersen added that Microsoft is also in discussions with a number of other potential licensees and that "the protocols that Quest licensed and other protocols are available to any firm that is interested in licensing them."
Microsoft may expect that this agreement will sway the commission, but the regulators aren't playing along. "We don't have any comment on that," Linda Cain, a spokeswoman for the competition committee,
Microsoft has until March 29 to respond to last week's Statement of Objection. As reported last week by the commission accused Microsoft of failing to live up the promises made in the WSPP to which the two parties agreed following the commission's March 2004 antitrust decision.
Under the terms of the pricing principles, Microsoft must make its protocols available to competitors at reasonable prices and may only charge for technological innovation.
Microsoft has claimed that its prices are 30 percent below what competitors are charging for comparable technology. And the company disputed the commission's assertion that innovation is the principal basis for determining whether Microsoft is entitled to charge for the protocols at all.
Quest is a Microsoft global gold partner and was named Microsoft's global ISV of the year in 2004.