Microsoft Countersues Sun Microsystems
Oct. 27, 1997
Refutes Sun's Claims and Sues Sun for Breach of Contract and Bad Faith

SAN JOSE, Calif., Oct. 27, 1997 — Microsoft Corp. today responded to the claims of Sun Microsystems Inc. in U.S. District Court. In addition to categorically denying Suns claims, Microsoft countersued Sun for breach of contract, breach of the covenant of good faith and fair dealing, and unfair competition for Suns repeated failure to live up to its obligations under the two companies agreement of March 11, 1996.

"Sun has apparently decided that it no longer likes the deal it made more than a year and a half ago," said Tom Burt, associate general counsel, Microsoft Corp. "Suns suit may make for good PR, but its claims are not grounded in fact or in law. We are disappointed that it has come to this, but we have upheld our end of the bargain. Sun has not."

Countersuit Charges Sun With Repeated Breaches of Contract

Microsofts countersuit outlines numerous breaches of contract by Sun. In particular, the countersuit specifies that, contrary to the agreement, Sun failed to deliver technology that passes Suns own test suites and runs on the Microsoft® Reference Implementation. Nor has Sun provided a public set of test suites as required by the agreement. Further, Sun has consistently failed in its obligation to treat Microsoft on an equal footing with all other licensees.

Moreover, Microsoft sued Sun for intentional interference with prospective advantage and unfair business practices for its repeated false statements about the compatibility and desirability of Microsofts products and Microsofts rights under the agreement.

Founded in 1975, Microsoft (NASDAQ "MSFT" ) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft is either a registered trademark or trademark of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft's corporate information pages.

Read More: