Microsoft backtracks on desktop icons

Upping the stakes in its battle against AOL Time Warner, Microsoft has reversed its decision not to force manufacturers to display its proprietary software logos on PC desktops.

Microsoft had originally agreed to ship its latest operating system, Windows XP, free of icons, allowing OEMs (original equipment manufacturers) the freedom to choose the start-up interface display.

At the time the decision was made, Microsoft claimed it was in a show of good will, following a court ruling that it had abused its monopoly position.

But its continuing battle to win instant message customers from AOL means the Seattle software giant has made a u-turn.

Microsoft is now demanding that logos for its video streaming software Windows Media and its browser Internet Explorer be made clearly visible to all new buyers, according to reports in the Wall Street Journal.

Just a few weeks ago the company announced that PC vendors will have to use the MSN logo on the start-up interface regardless of whether other rival software is installed.