Microsoft to Ease Software License Terms

Under pressure from antitrust authorities, Microsoft Corp. said Monday that it would make it easier for rivals to examine the ways its software for personal computers hooks into Microsoft software for running more powerful server computers.

The changes will make it possible for rival makers of server software, such as Sun Microsystems Inc., to get general descriptions of how the hooks work without having to pay licensing fees and sign restrictive nondisclosure agreements.

As part of last year’s settlement of a federal antitrust suit, Microsoft agreed to release the information in a reasonable and nondiscriminatory way. But Sun and other competitors complained that the process wasn’t reasonable. Among other complaints, they said they had to sign nondisclosure agreements and pay licensing fees before they could even see the menu of protocols available for specific licensing deals.

With the revisions that will be detailed this week, “the nondisclosure agreement for actually getting information about the program goes away,” Microsoft spokesman Matt Pilla said. As for the licensing options available to competing developers, “we realize that they need to be greatly simplified.”

Server computers are used to operate networks of personal computers. If the PCs run on Microsoft software -- and more than 90% of them do -- they tend to work better when paired with a server that also runs on Microsoft software.

But if rival software developers have easier access to the protocols Microsoft uses to connect PCs and servers, their software will work just as seamlessly, prosecutors hope.

Only three companies had signed nondisclosure and licensing agreements according to Microsoft’s original terms, which were announced in August. Sun, which is one of the licensees, declined to comment on the changes because executives weren’t sure they could do so without violating the original agreements.

Federal officials will continue to evaluate the licensing system over the next few weeks “in a concentrated way,” the Justice Department said in a written statement.

The European Union is still investigating whether Microsoft’s approach to the server market violated antitrust laws on that continent.

Microsoft’s newest server software, Windows Server 2003, goes on sale Thursday. The company’s shares slipped 29 cents to $25.21 on Nasdaq on Monday.