Unseemly row breaks out between Microsoft and distributor

SOFTWARE GIANT Microsoft has started a legal action against one of its distributors, alleging that the firm owns millions of dollars of Microsoft software which it should have destroyed.

The dispute could mean innocent end users who bought software from Microsoft after the row started could find their operating systems coughing and spluttering to a standstill.

And Microsoft alleges that even though a distribution agreement it entered into with TSR Silicon Resources expired at the end of last December, it is continuing to ship the software.

That could cause Microsoft to revoke licences issued to end users who may have bought the software in good faith, it alleged.

The action started in an Illinois court last week, with Microsoft seeking a temporary restraining order and a preliminary injunction against TSR.

Microsoft claims that at the time its distribution agreement with TSR expired, it also owed several million dollars in royalty payments for stock which TSR had earlier reported having sold.

It's claimed TSR has $3.5 million worth of Microsoft software in its various warehouses.

The filing claims that if TSR does not destroy the Microsoft software, it will be required to deactivate all COAs shipped to TSR under the OEM distribution channel agreement. "This could result in software being deactivated that has already been sold to an end user by TSR, but not reported to Microsoft on a royalty report," it alleges.

The judge in the case has issued a temporary restraining order on TSR. µ