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http://www.techweb.com/wire/story/TWB19990331S0002

Microsoft To Put APIs On Settlement Table
(03/31/99, 7:14 a.m. ET)
By Darryl K. Taft, Computer Reseller News

Microsoft has expressed a willingness to put the
Windows APIs on the table for discussion as part of
the antitrust settlement negotiations, according to
sources and written reports.

The software giant began talks Tuesday with the U.S.
Departmentof Justice and 19 states on settling the Justice
Department's antitrust suit.

The Seattle Times reported Tuesday afternoon that
Microsoft, in a document forwarded to the government
listing topics for discussion, said it was willing to discuss
its process for developing and making available the APIs
critical to applications developers.

An opening up of the API process could gain industry
support, as several Microsoft competitors have alleged
Microsoft withholds key APIs from companies either in
retaliation or to hamper a competitor's progress.

Microsoft, in Redmond, Wash., has steadfastly denied
these claims. Real or not, some independent software
vendors said they believe the software giant takes care of
its own developers long before they release code to third
parties.

A source close to the government was suspicious of
Microsoft's proposal to put APIs up for discussion: "I'm
skeptical. The mere definition of what's an API is an
issue."

At a recent news conference of the Association for
Competitive Technology (ACT), Jonathan Zuck, president
of ACT, said, "The industry thrives on two things among
others, intellectual-property protection and platform
standards. Any settlement deal that represents an erosion
of either of these would not be supported by ACT or, for
the matter, the majority of the industry. We believe
Microsoft owes it to the industry to walk away from the
table rather than concede on these points."

On Wednesday morning, Microsoft and representatives
from the Justice Department and the states are slated to
meet in court with U.S. District Judge Thomas Penfield
Jackson for a status hearing to discuss scheduling and
other issues related to completing the trial, should the
parties fail to reach a settlement.

The trial is scheduled to resume no earlier than April 12,
but sources said the judge was now presiding over a
criminal trial that may run through April, putting off a
resumption of the Microsoft trial until some time in May.

Microsoft delivered an initial settlement proposal to federal
and state regulators last week. The states promptly
discounted the proposal as not going far enough. In that
document, Microsoft offered to relax some of its
contractual requirements on ISPs and OEMs.

However, a proposal gaining popularity with government
regulators is one that would force Microsoft to auction off
the Windows source code to the top three bidders, thus
enabling other companies to distribute Windows and
breaking the so-called Microsoft monopoly.

Officially, Microsoft and the government would not
comment on Tuesday's settlement negotiations.

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