The Internet software market is characterized by strong network effects andomnipresent intellectual property rights. In this paper, we attempt toexplore the relationship between the two, focusing on two examples: thegovernment's antitrust proceeding against Microsoft for browser tying, andSun's suit against Microsoft for altering Java. We conclude that the socialvalue of the Internet lies in its ability to facilitate interoperation, andthis in turn argues in favor of open access to network standards. Such openstandards may be achieved in the open market. Where they are not, the lawmay intervene, but it must be cautious not to overreach and to avoiddisturbing the incentives provided by intellectual property protection.