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Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





Copyright Notice: We don't think much of copyright, so you can do what you want with the content on this blog. Of course we are hungry for publicity, so we would be pleased if you avoided plagiarism and gave us credit for what we have written. We encourage you not to impose copyright restrictions on your "derivative" works, but we won't try to stop you. For the legally or statist minded, you can consider yourself subject to a Creative Commons Attribution License.


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Google enjoined from linking to Belgian newspapers

Copiepresse, an organisation which manages copyright for the Belgian French- and German-language press has won its suit against Google in a Belgian court which has ordered it to stop reproducing article snippets from French-language newspapers in an unprecedented copyright crackdown over what is a common online practice (link here).

Google, which is planning to appeal the ruling, said that it had removed links to the newspapers from news.google.be and was in the process of taking them down from its news sites in other countries.

Agence-France Presse has brought a similar suit and is seeking monetary damages.

If this becomes widespread, it will really damage Google's usefulness and popularity .

European Commission warns Microsoft not to use its new operating system to stifle competition

The European Commission has warned Microsoft about tying security features into its new operating system, Vista, thus putting other security programs at a competitive disadvantage. A spokesman for the competition regulator, Jonathan Todd, is quoted by the New York Times as saying it was up to Microsoft, as "a near monopolist," to ensure the new software complies with antitrust rules (link here).

Microsoft has responded by suggesting it might have to delay the sale of Vista in Europe.

The regulator had previously ordered Microsoft to sell a version of the current operating system, Windows XP, without Windows Media Player. The stripped version is said to be a poor seller, given that XP with Player is still available. It remains to be seen whether the new requirement will effectively maintain competition.

Why do companies with drug patents buy off generic makers?

The previously reported Plavix drug story gets more interesting (link here). The Economist suggests a few alternative explanations for why a patented drug holder and a competitive generic maker would do a deal rather than compete; that happened in the Plavix case, (although it was subsequently overturned by the government).

One reason might be to "to delay its introduction of a cut-price product". A second might be that "the cost and legal uncertainty associated with patent trials are simply too great." Finally, it may be that the firm may know that "its patent was mistakenly awarded, perhaps because the purported breakthrough was too minor or obvious."

David Balto, a former official at the Federal Trade Commission, is quoted as saying, "Branded pharmaceutical firms have been stretching the limits of what deserves a patent, and the courts are just catching up."

It seems they have a long way to go.

Behind the counter drug sales

Monopoly loves to expand. Pharmacists around the world are finding ways to preserve their exclusive right to sell drugs. Do you want to buy "Plan B," a "morning after" contraceptive hitherto sold only as a prescription drug in America. Rather than allowing it to be dispensed freely, the FDA forced a "voluntary”"accord on Barr Laboratories, the drug's maker, for it to be sold from behind the pharmacist's counter. If an identity check reveals the purchaser to be under 18, Plan B will still require a prescription; if the buyer is 18 or over, the pharmacist can dispense it freely. This landmark decision could prove to be the thin edge of a very big wedge. The arrival of Plan B may herald the emergence of a class of pharmaceuticals unknown in America: behind-the-counter (BTC) drugs (link here)”.

Enough said.

Existing wireless telecoms retain dominance

The Economist magazine (though it calls itself a newpaper) reports on the recent US airwave auctions to provide additional band to wireless providers (link here). The bottom line seems to be that competition remains in the hands of existing firms.

"Despite hopes that a new national operator might emerge, the spectrum largely went to existing wireless firms (with the exception of a consortium of cable companies partly backed by Sprint).... The result is that today's broadband duopoly between the fixed-line telecoms operators and the cable companies is now moving into the wireless sector." Great news.

Against Monopoly

AFP reports that (link here)

Indian state Kerala Education Minister M.A. Baby said his government would promote the use of open source Linux operating systems along with Microsoft in high schools in Kerala, India's most literate state which has a population of 31.8 million.

"We are against monopolies of multinational companies in any sectors," he told AFP. "So we would like to provide equal opportunity for both Linux and Windows-Microsoft operating system in the school curriculum."

But "ideologically I support Linux and Free and Open Operating Systems for IT enabled-education in schools," he added.

Open source advocates will be heartened by this development, modest though it is, given the size of the world software market. Still, we will have to wait and see which operating system wins out. Competitive dynamics seem to favor the innovator. So far, Microsoft has stayed ahead by continuing to innovate and provide advantages to those who have already adopted its software.

Korea requires Microsoft to sell stripped-down Windows XP

In a case similar to one in the EU, South Korea's Fair Trade Commission found that Microsoft had violated its anti-trust law and must strip out Windows Live Messenger and Media Player, as well as pay a $34 million fine. XP will now be available stripped or with a link to a site with downloadable competing applications (link here). Whether this applies to sales of the forthcoming Windows Vista remains unclear.

A step in the direction of more competition, this does little to loosen Microsoft's lock on the operating system market. Most first-time computer buyers will take the easy course, using what comes on the new machine. Having learned to live with it, relearning a different OS is not a competitive option, and Windows retains the advantage from the many applications written for it arising from being the first to market.

Update on generic drug Plavix

The New York Times updates our earlier report on the drug patent dispute between generic maker Apotex and Bristol-Myers Squibb which claims a valid patent for Plavix, a blood thinner (link here).

A federal judge has now ruled that the challenged patent is valid but went on the allow Apotex to distribute what generic it has already put in the wholesale channel. Apotex will appeal the patent judgment. Bristol Myers expects a big cut in its profits this year as prices for the drug have been sharply cut.

More to come.

Supreme Court To Rule On Software Patents?

The issue of software patents, particularly in regards to open source software, is increasingly contentious. According to Information Week,

The opponents of proliferating software patents who see them as a threat to open source software may finally get their day in court--the U.S. Supreme Court.

The critics have been itching for this opportunity for years. But the Supreme Court rarely reviews patent cases, which usually are decided by federal appeals courts. The top court, however, has agreed to hear three patent cases this fall, though only one relates to the impact of patents on open source software.

The full Information Week article can be read here

And stay tuned.

Britain uses copyright to suppress dissident views

The Washington Post carries an account of a curious use of copyright to suppress publication of the dissident views on human rights which ended the career of British Ambassador to Uzbekistan Craig Murray (link here). The money quote from Murray: "I also wanted to publish a large number of documents to corroborate my story -- including my official dispatches from Tashkent and the government's demands that I change the text -- but when the government threatened legal action, I removed the documents from my book. I have continued to receive threatening letters; when Foreign Office lawyers argued that the government still retains copyright over all documents produced by the government (even if obtained through Freedom of Information laws), I had to remove them from my Web site." (The documents are said to be available on other websites, presumably outside Britain.)

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French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1