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COMPANY ALSO RESOLVES LEGAL DISPUTE WITH INTERTRUST
In the last month, on the heels of the sweeping agreement with Sun Microsystems, Microsoft resolved a patent dispute with InterTrust Technologies and reached a settlement with Minnesota class action plaintiffs. In this issue of the FINFlash Update, we also provide an update on Microsoft’s compliance with the U.S. antitrust settlement and highlight Steve Ballmer’s address on cyber-security. FIN members also have another opportunity to complete our brief FIN survey.
MICROSOFT RESOLVES TWO IMPORTANT LEGAL DISPUTES
On April 19, Microsoft announced that it had reached a settlement in a private class action lawsuit in the state of Minnesota. The terms are still being finalized and will be presented to the state court for preliminary approval this summer. Microsoft has now settled 10 state class action lawsuits; seven additional cases are still pending.
http://www.microsoft.com/presspass/press/2004/apr04/04-19MSMinnesotaPR.asp
In the last month, Microsoft also settled a patent dispute with InterTrust Technologies. In addition to resolving litigation, Microsoft has licensed InterTrust’s patent portfolio for a one-time payment of $440 million. “Licensing InterTrust’s patent portfolio reaffirms Microsoft’s commitment to the importance of intellectual property rights as well as our commitment to our customers to stand behind our products in emerging technology areas," said Marshall Phelps, deputy general counsel and corporate vice president of intellectual property at Microsoft. The agreement between Microsoft and InterTrust could help speed the development and adoption of technology that enables the secure distribution of digital media, including movies and music, over the Internet.
http://www.msnbc.msn.com/id/4723829/
STATUS CONFERENCE ON ANTITRUST COMPLIANCE
On April 22, at a U.S. District Court antitrust compliance status conference, Microsoft announced that it had agreed to extend the communications protocol licensing program two years beyond the expiration of the antitrust settlement. Fourteen companies, including Sun Microsystems and AOL, have now signed up for licenses under this program, and Judge Colleen Kollar-Kotelly noted that, “There's been continuing progress.” The next status conference takes place on July 19.
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4897078
STEVE BALLMER ADDRESSES CYBER-SECURITY
On April 7, Microsoft CEO Steve Ballmer addressed the issue of cyber-security in a speech at the Center for Strategic and International Studies in Washington, DC. He said that government, businesses, consumers and the IT sector must all take steps to address cyber-security threats. "Everyone in the IT industry is used to competing, but on cyber-security, we know we have to come together and collaborate in very new ways.... These are real threats, and the stakes for society and our economic future and national security are very high." In his swing through Washington, Ballmer also met with Secretary of Homeland Security Tom Ridge to discuss cyber-security. To read Ballmer’s remarks, visit: http://www.microsoft.com/presspass/exec/steve/2004/04-07BSAsecurity.asp
In Washington, DC, dozens of elected officials also commented on the ruling. Senate majority leader Bill Frist (R-TN) called the European demand to strip Media Player out of Windows “preposterous.” Senator Blanche Lincoln (D-AR) said, “The EU’s actions…are a significant step in the wrong direction.” And Representative Cal Dooley (D-CA) said, “The Commission’s ruling threatens to disrupt not only years of work by the Department of Justice and the courts, but could also have a profound, negative effect on the U.S. information technology industry.” To read other statements from elected officials, visit http://www.microsoft.com/freedomtoinnovate/eu/statements.
FEDERAL TRADE COMMISSION AND IT LEADERS DISCUSS SPYWARE
On April 19, the Federal Trade Commission (FTC) held an informational workshop about the problem of spyware -- invasive software that monitors a computer user’s Web activity and can support deceptive advertising practices. Microsoft, as well as many other technology companies, believes that consumer education, anti-spyware technology and industry best practices are the best first steps to fighting spyware. Spyware legislation, if not properly drafted, has the potential to hurt innovation and restrict technologies that help consumers, such as automatic update services, parental control tools and remote technical support. Several states as well as Congress are considering spyware legislation this year. Stay tuned for more news on this important issue.
http://www.pcworld.com/news/article/0,aid,115765,00.asp
We are pleased to offer FIN members the opportunity to view the House Commerce, Trade and Consumer Protection Subcommittee hearing entitled "Spyware: What You Don't Know Can Hurt You" on demand. It is available for viewing at: http://www.fednet.net/archive/tech_archive.asp
To help consumers learn more about fighting spyware, Microsoft has established a new spyware information Web site. Find links that help you detect spyware and remove it from your computer by visiting: http://www.microsoft.com/mscorp/twc/privacy/spyware.mspx
You’re also encouraged to share your comments and suggestions by writing to us at: msfin@microsoft.com
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