A Chinese court has ruled that Microsoft infringed a Chinese software maker's intellectual property rights in a surprise decision that has renewed concerns about China's management of IPR disputes, the Financial Times reported on Wednesday.

The paper reported Microsoft's use of two Chinese fonts developed by Zhongyi Electronic, a Beijing-based software company, was not covered by a license agreement between the two, the Beijing No 1 Intermediary People's Court said in a verdict.

Once the ruling takes effect, Microsoft must stop selling all PC operating systems that use the fonts including the Chinese language editions of the second edition of Windows 98, Windows 2000, Windows XP and Windows Server 2003, the paper said.

Microsoft said it believed its license agreements with the plaintiff covered its use of the fonts in question and it would appeal against the decision, the FT reported.

(Editing by Jeremy Laurence)

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