Wednesday June 30 2:00 AM ET
Small Rival Wins Round In Suit Against Microsoft
By James Nelson
SALT LAKE CITY, Utah (Reuters) - A federal judge Tuesday ruled against Microsoft Corp.'s
(Nasdaq:MSFT - news) request to strike down antitrust claims brought by tiny rival Caldera Inc.,
bringing another trial over the software giant's business practices a step closer.
U.S. District Judge Dee Benson denied four motions by Microsoft to narrow the scope of Caldera's case, although he has not
yet ruled on another three motions. Another hearing is scheduled next week on two more Microsoft motions.
A trial in the case currently is scheduled to begin Jan. 17, 2000.
Caldera contends that Microsoft engaged in a pattern of anti-competitive behavior intended to obtain and then maintain a
monopoly position in the computer operating system market in the late 1980s and early 1990s.
The Utah-based company, which now markets a version of the Linux operating system among other products, is seeking more
than $1 billion in damages for lost sales of its DR-DOS software, which competed with Microsoft's now-defunct MS-DOS.
The case is even more wide-ranging in some ways than the massive government antitrust suit brought against the Redmond,
Wash.-based company, which just completed its testimony phase. Microsoft also is embroiled in lawsuits brought by Sun
Microsystems Inc (Nasdaq:SUNW - news) and Bristol Technology Inc.
In previous hearings, Microsoft argued that there was no merit to Caldera's claims over its licensing practices, so-called
product ''preannouncements'' and disparagement of Caldera's products.
Benson, in an 11-page ruling, disagreed and backed Caldera's position that while each practice might not in itself be a violation
of U.S. Section 2 antitrust law, together they might form an illegal pattern of behavior.
''Caldera takes a broad approach to its Section 2 claim, arguing that based on an examination of all the predatory conduct
Microsoft engaged in, Microsoft violated antitrust law,'' Benson wrote.
Tuesday Microsoft lawyers argued against Caldera's claim that Microsoft acted improperly by denying the maker of DR-DOS
access to beta test versions of the Windows 3.1 user interface.
Attorney Jim Jardine said Microsoft was ''absolutely privileged'' to deny a competitor access to the unreleased software and
added that Caldera released a competing product without ''substantial difficulty.''
Benson asked several questions about the ''absolute privilege'' and then said he would deny the motion.
Benson also warned Microsoft lawyers against ''grandstanding'' in the courtroom, which has gotten increasingly crowded as the
case has moved ahead.
''Spinning this case is not helping the court with the facts,'' he said.
Benson had no immediate ruling on a separate motion over claims that Microsoft illegally tied MS-DOS and Windows together
to create the Windows 95 operating system.
Microsoft associate general counsel Tom Burt said he was disappointed with the rulings.
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