Preo Software AG sues out preliminary injunction against Microsoft and calls in Federal Cartel Authority

Hamburg, October 6, 2011. The regional court of Hamburg enacted a preliminary injunction against Microsoft. The motion of preo Software AG from September 30, 2011 was accepted. Previous to the adjudication there were a series of letters with false propositions from Microsoft Ireland addressing customers of preo.

The office of Microsoft, located in Ireland, which is responsible for the European market, had argued in the middle of September in a multiplicity of letters addressed to customers of preo Software AG that the transfer of software licenses would be forbidden if it was a matter of splitting of licenses from volume contracts.

“The argument that a split-up of volume licenses would be forbidden in general, is wrong”, says Boris Vöge, management of preo Software AG. The regional court of Hamburg reacted to preo’s application immediately and by their preliminary injunction (327 O 506/11) enjoined Microsoft Ireland from affirming this anymore.

Concerning the adjudication from September 30, 2011 Microsoft is enjoined to argue  

1. that a split-up of licenses of a Microsoft volume contract is forbidden in general,
2. that volume licenses must not be divided or transferred except under specific circumstances,
3. that especially a transfer of licenses is prohibited if the addressee of the transfer would not be authorized to purchase volume licenses otherwise. 

Already in 2010 preo successfully overrode a similar contra-competitive behavior of Microsoft. The regional court of Hamburg in a conviction of main proceedings of preo against Microsoft eliminated this course of action – the conviction is absolute (315 O 266/09).

preo calls in Federal Cartel Authority

The repetition of Microsoft’s behavior made preo file charges at the Federal Cartel Authority, requesting to adequately investigate Microsoft. Also in other European countries the software monopolist experiences resistance: For example the Spanish public authorities press charges against Microsoft, because they assume that the software concern could have violated the competition law by constricting the resale of pre-owned software licenses illegally. 

The market of pre-owned software expands. Savings up to 50 percent in comparison to the acquisition of new software are not rare. “More and more companies use pre-owned software. Alternatively developed cloud solutions do not find the ready market they expected, also at the Microsoft partner event, which just ended, the topic cloud was highly repressed”, reports Boris Vöge, management of preo Software AG. 

Reckoning the efforts of liberalization of the European commission, for example the requested changes in exclusive dealing of television rights for professional soccer, user-friendly tendencies become apparent which for sure distress the monopolistic software manufacturers. “Maybe this is a reason for Microsoft’s hectic course of action”, says Boris Vöge. “Again the monopolist tries to compensate its failure by exercising market power.”

About preo:

preo Software AG is one of the leading provider of pre-owned software located in Hamburg, Germany. The company was founded in 2005. At the moment preo transfers are counted among the most transparent in the market of pre-owned software because of an ISO certification and the involvement of software manufacturers. Customers are international concerns, companies of medium-sized business as well as the public sector and local authorities. For further information go to www.preo-ag.com

 

In case of further inquiry please contact:

preo Software AG

Boris Vöge, Vorstand

Mühlenkamp 31

22303 Hamburg

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