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Technology Stocks : How high will Microsoft fly?
MSFT 479.20+0.2%Jan 9 9:30 AM EST

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To: Valley Girl who wrote (38611)2/26/2000 1:23:00 PM
From: PMS Witch  Read Replies (2) of 74651
 
I do not in posession of any legal training beyond what I've picked up as a Microsoft shareholder who has endured this and previous courtroom dramas over the years.

Unlike your liquor store bandit, the crime, if any, is not clearly defined. I think we're witnessing a bit of a fishing expedition as a few people in the DOJ see a potentially career enhancing opportunity. The prosecution must prove that the crime exists and that Microsoft is guilty. The difficulty is that the 'wrong' is very hard to define. Example: The per-box basis of OS licensing. These contracts were not viewed as illegal when signed. They were one way of dealing with the potential theft of Microsoft's property, as common in China, and it seemed to work.

I think of a monopoly as similar to a gun: It's OK to have one, but not to misuse it. Microsoft earned their monopoly: They didn't buy it, which I think is prohibited.

I don't get the tying issue. Over time, many software packages include features and functionality previously available only by purchasing additional programs. (I remember buying a spelling checker.) Today's Windows98 comes with games, editor, paint, calculator, music, terminal, backup, defrag, ... all which one needed to purchase separately not too long ago. This 'including' direction has been long established in this industry and I see nothing wrong with Microsoft continuing this trend to include browsers.

As for the overcharging, how should software be priced? If we look at utility/cost, codesize/cost, development_effort/cost, the price of Windows seems to be falling instead of rising. Does anyone want to go back to DOS 1.1, even if it only costs $60?

I don't have much optimism that Microsoft will be treated fairly by 'the system', but I do think they have the resources and agility to prosper in spite of the stumbling blocks ahead. Obviously, we're in for some tough times as this case continues. If Microsoft has committed crimes, they should admit their guilt, accept their punishment, and mend their ways. If Microsoft has not committed crimes, they should defend themselves with the focus and determination they're famous for and not take the expedient road of capitulation, because if they do, they will only invite more parasites.

Cheers, PW.
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