From Gujarat, India, to Santa Clara, Calif., Microsoft is simply doing the right thing for the company and its shareholders, as any company should. But is the giant shortsighted in treating these two situations in the same manner? The answer could be yes. It's a mistake to manage IP the same way during different phases of a technology's life cycle rather than adjusting along the way. It's a fumble that many companies, not just Microsoft, would be wise to avoid.

At BusinessWeek.

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