The company was not charging any fee from its users for downgrading from the Windows Vista operating system to the older XP software; that’s what Software giant Microsoft stated, last week, refuting all the allegations.

Microsoft spokesman said, "Microsoft does not charge or receive any additional royalty if a customer exercises [downgrade] rights.”

Emma Alvarado of Los Angeles filed a legal complaint against Microsoft, in which she stated that she was unfairly charged a $59.25 fee to downgrade a new Lenovo laptop from Vista to XP.

According to the complainant, there is a clause in the Windows license that in certain cases allows its users to replace newer versions of Windows with an older edition without having to buy a second license.

According to the lawsuit, which seeks damages and class-action status, “Microsoft's policy barring computer makers from offering XP on new PCs after Vista's early-2007 launch violated Washington state consumer-protection laws”.