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Final Arguments Frame States' Harmful Remedy
Yesterday in U.S. District Court, Microsoft presented its final arguments in the case against the nine holdout states that rejected the bi-partisan settlement proposal reached by Microsoft, the U.S. Department of Justice and other state plaintiffs.
Microsoft summarized how the non-settling states' proposed sanctions would:
- Harm consumers by fragmenting and destabilizing the Windows platform
- Stifle innovation by confiscating Microsoft's Intellectual Property
- Destroy Windows by creating a technically unworkable regulatory regime that would leave Microsoft no choice but to withdraw it from the market
Microsoft's full proposed Findings of Fact and Conclusions of Law are available at:
http://www.microsoft.com/presspass/legal/jun02/06-10findings.asp
States' Arguments Underscore Competitor Focus
The States relied heavily on rhetoric in this final day, virtually ignoring their burden of proof or the evidence that was presented in ten weeks of the trial. According to former White House Counsel C. Boyden Gray, now Chairman of Citizens for a Sound Economy, "It is disturbing that the states seem disinterested in the case at hand. Of far more interest to them has been using what was supposed to be a 'remedy' phase to enter entirely new complaints into the record."
(Full statement at: http://www.cse.org/newsroom/press_template.php?press_id=318)
Also ignored by the states were consumers, who were hardly mentioned in the states' closing arguments. Instead, the states cited technical disclosure as their top priority for remedy, a provision that has nothing to do with this case but does address what Microsoft's competitors seek: the Company's intellectual property.
http://www.eweek.com/article2/0,3959,115751,00.asp
A Real Solution
Microsoft urged the Court to reject the states' proposed sanctions because an appropriate resolution already exists, namely the settlement proposal reached with the U.S. Department of Justice and nine other states. The terms of that settlement address - in fact, exceed -- all the findings affirmed by the U.S. Court of Appeals last summer.
While this settlement proposal affects every corner of Microsoft's business, it does not prevent the company from continuing to innovate in any technology area. Microsoft has already proactively taken many steps to comply with its terms.
The settlement proposal is available at:
http://www.microsoft.com/presspass/trial/nov01/11-06revised.asp
Case Now in Judge's Hands
U.S. District Court Judge Colleen Kollar-Kotelly must now rule on both the proposed settlement and the non-settling states' proposed sanctions. She may accept, reject or modify the competing proposals in order to create a single comprehensive ruling, which is expected later this summer.
The FIN will keep all members up-to-date on the case and alert you as soon as a ruling is issued.
For more information on the antitrust case and other issues affecting the technology industry, visit the FIN website. You can also take the opportunity at the FIN website to e-mail your elected officials to share your views.
www.microsoft.com/freedomtoinnovate
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