Original Sender : Ari <[EMAIL PROTECTED]> --------------------------------- http://dailynews.yahoo.com/tx/19990331/tc/microsoft_178.html Wednesday March 31 1:35 AM ET Microsoft Talks With U.S. Government, States ----------------------------------------------------- By David Lawsky WASHINGTON (Reuters) - Microsoft lawyers met for two hours Tuesday with representatives of the Justice Department and 19 states in an apparently uphill effort to settle the company's landmark antitrust case. The meeting occurred one day before all sides were due in court before District Judge Thomas Penfield Jackson to discuss when the company's antitrust trial would resume. The government has alleged that Microsoft Corp. (Nasdaq:MSFT - news) holds monopoly power in the market for personal computer operating systems and has abused that power in order to preserve its influence and extend it to other businesses. After 62 trial days, Jackson has heard 24 witnesses. All that remains is for him to hear another six rebuttal witnesses, which experts say will take a month or so. Microsoft general counsel Bill Neukom, Sullivan & Cromwell lawyer Richard Urowsky and another lawyer, Rick Rule, drove into the Justice Department courtyard shortly before 5 p.m. EST (2200 GMT) and left about two hours later, without talking to reporters. Jackson suggested before adjourning the trial late last month that both sides use the recess time wisely, which was widely interpreted as suggesting the sides explore settlement. The government said it was willing to talk but awaited a proposal from Microsoft -- which was finally delivered last week. A prominent antitrust lawyer doubted that Tuesday's talks would produce anything unless the Justice Department tells Microsoft exactly what it is looking for. ``One reason I would suspect this will go nowhere is that Microsoft is shadow-boxing,'' said Malcolm Pfunder, of Gibson, Dunn & Crutcher in Washington. ``They don't really know until the Department of Justice tips its hand, at least privately, what kind of a deal they need to beat.'' Last week, the states made clear that they did not like the Microsoft proposal. The attorneys general have been circulating their own proposals, and Microsoft's reaction to those is expected to serve as an indication of whether it would be fruitful for the two sides to continue meeting, much less reach an agreement. Monday Microsoft announced a modest reorganization, and Microsoft Chief Executive Officer Bill Gates was asked about settlement along the lines of the proposal being floated among the states. Under the states' proposal, Microsoft would sell intellectual property rights to Windows 95, Windows 98 and Windows 2000 to two or three companies. Microsoft would retain the right to market and develop its own versions of the software and Microsoft shareholders would get ``reasonable compensation,'' according to a person familiar with the states' thinking. It is one of several proposals being considered by the states. Gates declined to comment on the proposal. But he said any agreement would have to protect the ``integrity'' of Windows and the right of the company to continue to integrate new features in the operating system. ``If those (principles) are preserved then it would be nice if a settlement could be reached,'' Gates said, repeating the formula he has given reporters steadily for the past week or more. ---------------------------------------------------------------- Compu-Mania MailingList is provided by PT Centrin Utama Maintained by : [EMAIL PROTECTED] To Post a msg : Send mail to [EMAIL PROTECTED] To Unsubscribe : Mail to [EMAIL PROTECTED] BODY : unsubscribe Compu-Mania For more information, send mail to [EMAIL PROTECTED] with "HELP" in the BODY of your mail (without quote). ----------------------------------------------------------------
