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Tuesday, November 6, 2001

However, a third of the states indicated they would continue litigation. Another third indicated they might join the settlement if adjustments are made to the deal.

Lawyers representing the states did not give a breakdown on which of their clients would pursue litigation. Massachusetts is the only state to publicly state it would not go along with the Justice Department deal.

U.S. Judge Collen Kollar-Kotelly said she would schedule another hearing later Tuesday.

Microsoft and the Justice Department have reached a settlement in the federal government's antitrust lawsuit and filed it in Kollar-Kotelly's court last Friday.

Kollar-Kotelly, who took over the case after U.S. Judge Thomas Penfield Jackson was removed by the appeals court for out-of-court statements against Microsoft, had ordered both sides into mediation and gave them until last Friday to come up with a deal.

The judge must approve any settlement deal before it becomes final. The deal would force Microsoft to change its conduct and give rivals access to its software, but includes no civil fines or divestiture. Nor would it force Microsoft to disengage its middleware -- such as its Internet browser or instant messaging program -- from its Windows operating system.

Microsoft's Windows program dominates the operating system market. The vast majority of computer manufacturers and vendors install Windows on personal computers before they reach the consumer.

Since the mid-1990s, the Justice Department has alleged that Microsoft tried to maintain its monopoly by keeping middleware developed by rivals from working with Windows.

Microsoft allegedly saw the middleware, which was evolving into something resembling PC operating platforms, as a threat to Windows' dominance.

The agreement filed in U.S. District Court on Friday says Microsoft cannot prohibit manufacturers and vendors from "(i)nstalling, and displaying icons, shortcuts or menu entries for any non-Microsoft middleware or any product or service ... that distributes, uses, promotes or supports any non-Microsoft middleware, on the desktop or Start menu, or anywhere else in a Windows Operating System ... "

Under the deal, Microsoft cannot keep manufacturers and vendors from distributing or promoting such middleware, or offering PC users the option of launching other operating systems from the basic boot-load of a Microsoft or non-Microsoft system.

Microsoft is also ordered to give its rivals access to code and documents for Microsoft middleware -- and communication protocols used to convey information between applications -- so those rivals can design products that "interoperate" with Windows.

Manufacturers, vendors and consumers will be able to substitute competing middleware on Windows under the agreement.

In addition, Microsoft will be forced to license its operating system to major computer manufacturers for five years and must use a "uniform license agreement" -- assuring a level playing field.

The software giant is banned from entering into contracts that require the exclusive support of Microsoft software -- a key element of the government's complaint.

Finally, the agreement prohibits Microsoft from retaliating against any manufacturer or vendor that uses, distributes or promotes a rival's middleware.

The agreement lasts for five years, and Kollar-Kotelly can extend it for two years.

Under the proposal, three independent "enforcers," computer experts with their staffs, will monitor the agreement on-site at Microsoft in Redmond, Wash. The monitors will be paid by Microsoft but will communicate with the Justice Department.

The proposal gives the enforcers access to all of Microsoft's code, books and personnel.

Copyright 2001 by United Press International. All rights reserved.

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