Corel drives inquiry into Microsoft deals

Troubled software vendor Corel has taken on the Canadian government alleging unfair treatment over lucrative public sector contracts won by Microsoft.

The claim that the government bought Microsoft products, worth about $2 million, without offering the deal out to public tender, is being investigated by the Canadian International Trade Tribunal.

Corel is also trying to block a deal between the Canadian Inland Revenue and Microsoft to fit 30,000 workstations with its software. The contract is believed to be worth more than $10 million.

Corel has complained that under the terms of the deal, even if a Microsoft rival did win the contract, it would be obliged to pay the costs of converting systems from Microsoft and training staff to use the software. If the tribunal found in Corel's favour, the government would be forced to pick up the bill.

Corel lawyer Ronald Lunau argued: 'The current contractual terms rule out any rival's products.'

In a preliminary ruling last month, the tribunal agreed with Corel and ordered the Canadian Inland Revenue to delay the deal.

But last week, the government complained that the collection of the nation's taxes was in jeopardy and the order was rescinded while the investigation continued.