[Meet the CEO]Netpia to square off with Microsoft

CEO Lee Pan-jung plans legal battle over U.S. firm`s new browser

By Yang Sung-jin

U.S.-based software giant Microsoft Corp. plans to launch a revamped Web browser later this year, adding a host of new features. This should be embraced as a positive development for most internet surfers, but Lee Pang-jung has a different idea.

One of the new features is expected to jeopardize the business of Netpia, a Korean-language domain service provider, and as CEO and founder of the tech firm, Lee is planning to take action.

"We will file a legal complaint about Microsoft`s Internet Explorer 7.0 because its new address search feature can hurt our business as well as 700,000 organizations, companies and individuals in Korea," Lee told The Korea Herald.

The clash between Netpia and Microsoft is not new. Lee has long staged a series of battles with Microsoft to protect the native language domain service, which allows internet users to type in the title of a company or name of a person to reach related sites instead of full Web addresses starting with "www" and mostly with "com" or "co.kr" endings.

Lee claims that Microsoft`s new Web browser`s address bar should not include a keyword search function. If the U.S. software company does allow such integration, Netpia`s core Korean-language domain business fears it will lose its technological edge as well as its paying customers.

The problem is that Microsoft does not show any sign of compromise - at least so far. The new feature will simply bring more profits for Microsoft as the new address bar, now armed with multilingual support, will direct more internet users to its own keyword search portals such as MSN.com, regardless of whether they originally want to use Netpia`s service or not.

As if the outside threat is not enough, Netpia is also facing two domestic challenges. First, the company is locked in a complicated patent battle with its smaller rival domain service provider over the native language domain technology. Second, Hanarotelecom, the country`s second-largest internet service provider, does not support Netpia`s solution and instead directs the address bar traffic to its own keyword search portal to bolster its online ad revenue.

The imminent challenges pushed Lee to return to work last month after an 18-month rehabilitation due to health problems. "I wanted to rest for a while, but because of the urgency of the situation, I had to return," Lee said.

Lee founded Netpia 11 years ago and has long pushed for the adoption of the native language domain system as an alternative to English-oriented internet domains led by U.S. organizations and companies.

The Internet Corporation for Assigned Names and Numbers, or ICANN, controls the English-language domain system worldwide, a huge business whose stakes are increasing in tandem with the growth of online business.

Netpia and its alliances are claiming that such dominant English-oriented domain systems should leave some room for alternatives. To forge allies with other countries to support non-English speaking internet users, Netpia recently helped found the Native Language Internet Consortium.

CEO Lee said he is determined to fight for the native language domain system and will attempt to block Microsoft from adding the new feature, which could virtually terminate Netpia`s domain business.

It is far from certain whether Netpia can win a legal battle with Microsoft. The only hope Lee has is that Korean authorities would again keep Microsoft`s monopolistic business practice at bay.

In early July, the Seoul High Court rejected Microsoft`s stay request regarding the Fair Trade Commission`s order made on Feb. 24 this year. In a major setback, the software giant is now required to dislodge Windows Media Player and Windows Messenger programs from its operating systems for the Korean market, beginning Aug. 24.

Under the FTC ruling, all Windows-based PCs sold in Korea should come without the two popular multimedia and online chatting programs from Feb. 1, 2007.

Microsoft said it would comply with the FTC`s order as planned, while seeking to reverse the decision yet again through the appeal process in the court.

The FTC levied a 32.49 billion won ($34.7 million) fine on Microsoft for bundling the two software programs with Windows operating systems, while ordering the company to release two different versions: one with the two programs entirely removed and the other offering both its own programs and easy links to its competitors` comparable programs. The software giant is going through similar antitrust problems in Europe, where it has been ordered to release a new Windows operating system.

(insight@heraldm.com)