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Microsoft sued for Vista downgrade fees

By Barry Collins

Posted on 16 Feb 2009 at 17:09

Microsoft is once again in a legal battle over Windows Vista - this time over the fees it charged users to downgrade to XP.

LA resident Emma Alvarado has filed a suit in Seattle, demanding a refund of the fee she paid for downgrading a Lenovo PC from Vista Business to Windows XP Professional.

Alvarado is encouraging others who've paid up for downgrades to the join the suit, alleging that Microsoft has abused its monopoly position by forcing people to pay extra for a supposedly lesser version of its software.

"Consumers have encountered numerous problems using the Vista operating system," the lawsuit claims.

"As a result, many consumers would prefer to purchase a new computer pre-installed with the Windows XP operating system or at least not pre-installed with the Vista operating system.

"However, Microsoft has used its market power to take advantage of consumer demand for the Windows XP operating system by requiring consumers to purchase computers pre-installed with the Vista operating system and to pay additional sums to 'downgrade' to the Windows XP operating system.

The suit notes how Microsoft charged users more than $100 to switch back to XP, and how the company twice extended the deadline for XP downgrades.

"These extensions were likely due to the tremendous profits that Microsoft has reaped from its 'downgrade' option," the suit claims.

"To date, nearly one in three consumers purchasing a new computer has paid to downgrade the operating system from Vista to Windows XP," it adds, although it seems likely that figure includes both businesses and consumers.

A Microsoft spokesman told PC Pro: "We still have not been served with the Alvarado lawsuit, so it would be premature to comment on the complaint or the specific allegations.

"Microsoft offers downgrade rights as part of some Windows Vista licenses, including Windows Vista Business purchased through the OEM channel. Microsoft does not charge or receive any additional royalty if a customer exercises those rights.

"Some customers may choose or need to obtain media or installation services from third parties to install the downgrade version."

Microsoft is still waging a long-running legal battle over the Vista Capable sticker scheme, in which it's accused of misleading consumers into buying PCs that weren't able to run the more sophisticated versions of the operating system.

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