News for nerds writes "The head of Microsoft Corp.'s Japan unit, Michael Rawding, acknowledged that the battle with Japanese anti-monopoly authorities over a controversial licensing clause has hurt its corporate image. But he said the company will continue to oppose a Fair Trade Commission ruling ordering Microsoft to retroactively remove the clause from its licensing agreements, as similar investigations in the United States and Europe found it 'lawful and appropriate' according to him, though Longhorn faces another delay. Commission officials are not certain any patents have been violated by Microsoft. But several Japanese electronics makers have complained about suspected patent infringements since December 2000, especially regarding multimedia technologies (VC-9 and H.264/AVC, anyone?). Major Japanese CE companies that are partners with Microsoft include Sony, Toshiba, and Matsushita."