Ju Jitsu

Attack:

SEOUL (Reuters) - Microsoft Corp. has threatened to withdraw its Windows software from South Korea if the country's antitrust agency orders it to unbundle its Instant Messenger and Media Player from the operating system.

South Korea's Fair Trade Commission (KFTC) has been investigating allegations that the world's top software maker breached antitrust laws by incorporating the services into Windows.

"If the KFTC enters an order requiring Microsoft to remove code or redesign Windows uniquely for the Korean market, it might be necessary to withdraw Windows from the Korean market or delay offering new versions in Korea," Microsoft said in a U.S. regulatory filing on Thursday.

Counter-Attack:

If Microsoft makes good on its self-destructive threat to pull Windows from the South Korean market rather than accede to local demands to un-bundle its proprietary media and IM apps, there's a safe harbour waiting in the form of blanket, country-wide licenses for the OS formerly known as Lindows.

Noting that South Korea blows $100m per year on Microsoft bugware, Linspire honcho Kevin Carmony has made a formal offer to South Korean President Roh Moo-hyun to license every computer in the realm for the bargain price of $5m.

"South Korea could save around a quarter of a billion dollars. More importantly, however, it would break South Korea loose from the monopolistic grasp of Microsoft, which the country currently finds itself under," Carmony explains.

Microsoft is increasingly caught in a trap - it's no longer seen as the only alternative. Good move by Linspire here, though it's not something they can keep up.