Microsoft’s Intellectual Property Rights

Microsoft Corporation

ONE MICROSOFT WAY

REDMOND, WASHINGTON 98052-6399

(425) 882-8080

“I Pledge my honor that I have abided by the Stevens Honor Code”

____________________________

Taylor Fowler

Section A

BT 102

Spring 2007

Company Overview:

 Microsoft develops, manufactures, licenses, and supports software products for many computing devices. However, it is expanding its portfolio by breaking into new markets such as internet services, portable devices, and consumer electronics.

 The company primarily operates in the US and is headquartered in Redmond, Washington, US.

 Microsoft employs about 71,200 people; 44,000 in the United States and 27,200 internationally.

 Microsoft owns 3.3% of the Global Software and Services Market share, second only to IBM, who owns 5.1% (DATAMONITOR)

Business Segments / Major Subsidiaries:

 Client - $13,209 million

Accounts for 29.8% of revenues.

Microsoft’s Client segment consists of premium edition operating systems, including Windows XP Professional, Media Center Edition, Tablet PC Edition, and other standard Windows operating systems, including Windows XP Home.

 Server and Tools - $ 11,467 million

Accounts for 25.9% of revenues.

The Server and Tools segment consists of server software licenses and client access licenses (“CAL”) for Windows Server, Microsoft SQL Server, Exchange Server and other server products. It also includes developer tools, training, certification, Microsoft Press, Premier and Professional product support services, and Microsoft Consulting Services.

 Information Worker - $11,756 million

Accounts for 26.5% of revenues.

The Information Worker is primarily made up out of the Microsoft Office system of programs, servers, and services. These include Microsoft Office, Microsoft Project, Microsoft Visio, and SharePoint Portal Server. Smaller information worker products include the Office Communications Server and Microsoft OneNote.

 Microsoft Business Solutions - $919 million

Accounts for 2% of revenues.

Microsoft Business Solutions segment provides business management software solutions targeted to businesses of varying sizes. The main products consist of enterprise resource planning (ERP) solutions, customer relationship management (CRM) software, retail solutions, Microsoft Partner Program (MSPP), and related services. Also, this segment includes the Small and Mid-market Solutions and Partners (SMS&P), which focuses on sales to customers in the small and mid-market customer segments.

 MSN - $2,298 million

Accounts for 5% of revenues.

Microsoft’s MSN segment includes communications services (e-mail and instant messaging) and online information offerings, such as MSN Search. MSN also provides a variety of online paid services including MSN Internet Access and MSN Premium Web Services. Revenues from this segment are mainly derived from advertisers on MSN, and from MSN Internet access subscribers.

 Mobile and Embedded Devices - $377 million

Accounts for 0.8% of revenues.

The Mobile and Embedded Devices segment includes Windows Mobile software, Windows Embedded operating systems, and Windows Automotive. These products extend the Windows platform to mobile devices including PDA’s, phones, and a wide range of other small devices. The segment is also responsible for managing sales and customer relationships for Microsoft with device manufacturers and communication sector customers. The communication sector includes network service providers and media and entertainment companies.

 Home and Entertainment - $4,256 million