Monopoly Market Model Research Paper Example | Topics and Well Written Essays - 500 words

Monopoly Market Model - Research Paper Example However, the legal regulation of monopolies can create conflict with innovation and intellectual property protection and Jones and Sufrin highlight the changes in the telecommunications sector and the multimedia market as a prime example of this and they comment that this market comprises part of a â€Å"new economy†, which: â€Å"Now encompasses high technology industries.... However, the inherent nature of these new market spaces is the rapid pace of technological change, the creation and exploitation of intellectual property rights, the need for complementary products to work together, and a high degree of technical complexity† (Jones and Sufrin 55). This conflict between innovation and the regulation on market monopolies is evident by the high profile litigation involving Microsoft, which has been in troubled in the US under the Sherman Act. Additionally, Microsoft was found to be in breach of antitrust laws and subjected to the highest fine imposed by the EU competition regulatory authorities for abuse of dominant position. The background to the EU case against Microsoft was triggered by an initial complaint by Novell in 1993 in respect of Microsoft’s licensing requirements. Novell argued that Microsoft’s licensing practices regarding tying and bundling were anti-competitive in preventing competitor access to the market. Furthermore, Novell argued that the licensing practices and royalty requirements resulted in a royalty payment for every computer that was sold by a Microsoft operating system supplier, irrespective of whether the computer included the Windows operating system. Microsoft negotiated a settlement in 1994, which led to a change in some licensing practices. However, in 1998 the spotlight was back on Microsoft again as Sun Microsystems complained about Microsoft’s restricted disclosure in respect of the Windows NT interfaces. This triggered