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May 20, 2002
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Judge Criticizes States' "Lack of Clarity"
Last week in court, Judge Colleen Kollar-Kotelly questioned the logic of the sanctions being proposed by the nine holdout states that rejected the bi-partisan settlement reached by Microsoft, the U.S. Department of Justice and other state plaintiffs last year.

In three days of afternoon sessions, the judge considered Microsoft motions that challenge the non-settling states' proposed sanctions, and had critical words for several specific provisions in the States' proposals:

* The judge strongly questioned the states' broad and unworkable proposal to extend sanctions to emerging technologies, such as handheld devices and TV set-top boxes, saying their argument suffered from a "a significant lack of clarity."
http://seattletimes.nwsource.com/html/microsoft/134455124_microsoft16.html

http://www.computerworld.com/governmenttopics/government/
legalissues/story/0,10801,71194,00.html


* The judge expressed skepticism about the states' vague and overbroad proposal to enforce their sanctions with a court-appointed special master. She also criticized the outrageous plan to allow third parties -- e.g., Microsoft's competitors -- to bring complaints directly to the special master, even if they were not part of the case.
http://www.reuters.com/news_article.jhtml?type=search&StoryID=978618

* The court also heard arguments about whether nine states should be able to seek a remedy that would cover the entire country when a national settlement has already been reached by the U.S. Department of Justice. Outside the courtroom, antitrust expert Lars Liebeler issued a statement outlining the harm to consumers and competition that would result if just a few states mandate antitrust regulation for the entire nation.
http://www.comptia.org/aboutus/pr/pr020516a.htm

The Settlement Addresses All Issues of the Case
Several issues debated last week in court were carefully addressed in the reasonable settlement reached between Microsoft, the DoJ and nine other states:

* The settlement creates an independent technical committee that oversees Microsoft's compliance with the terms of the settlement. Unresolved disputes will be turned over to the DoJ. The non-settling states' special master provision takes authority away from the DoJ and does not allow for practical resolution of complaints.

* The settlement addresses all issues of the case upheld last summer by the U.S. Court of Appeals. The non-settling states have attempted to expand the case well beyond the boundaries established by the Appellate Court.

Stay informed about the progress of the trial and other critical policy debates that impact consumers, competition and the future of technology. To learn more and contact your elected officials to share your views, visit the FIN website at:
www.microsoft.com/freedomtoinnovate

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