Beijing - China on Thursday denied that it was investigating the US software firm Microsoft Corp for possible violations of a new anti-monopoly law, refuting a state media report.

The State Intellectual Property Office said a report alleging that it was examining the practices of Microsoft and other international software companies was "totally untrue."

The office said in a statement that it had "entrusted relevant organizations to investigate the ratio of domestic piracy" and released the results at the end of May, but it said it had "never conducted an investigation aimed at enterprises' monopoly actions and does not have such a plan."

The Shanghai Securities News reported Wednesday that the office might organize some Chinese firms to sue the foreign software companies after the anti-monopoly law takes effect August 1.

It quoted Fang Xingdong, the head of a state-run internet research unit, as saying the high prices of software from Microsoft and other leading firms was the main reason for rampant software piracy in China.

"International software firms, taking advantage of their monopoly status, set high prices for the original software," the newspaper quoted another unidentified source as saying. (dpa)