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Microsoft is a trade name when it is used to refer to the company as a
business in which case it can be used as a possessive. For example,
Microsoft's employees.
Microsoft is a trademark when it is a brand name of a product or line of
products. It cannot be used as a possessive. The correct way to use it would
be Microsoft(R) Windows(R) operating system's features, for example.
It explains it rather well in the Microsoft(R) Manual of Style for Technical
Publications.
