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Technology Stocks : How high will Microsoft fly?
MSFT 478.53-1.0%Dec 12 9:30 AM EST

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To: Ibexx who wrote (5080)2/10/1998 5:39:00 PM
From: Flair  Read Replies (2) of 74651
 
Ibexx & all, "Caldera takes on Windows 95"

news.com

After receiving permission from a
federal magistrate judge, Caldera has
amended its private antitrust lawsuit
against Microsoft to include evidence
concerning Windows 95.
Up to now, the suit has been limited to
alleged wrongdoing concerning Windows
3.1 and MS-DOS, older versions of
Microsoft operating systems that slowly
are being phased out. The decision means
that Caldera can add its voice to a growing
chorus of critics who claim that Microsoft
engages in anticompetitive practices
when designing and marketing its
dominant Windows 95 product.
It also could prove to be a significant boon
to Caldera's case.
Until the court allowed us to include
Windows 95 in our lawsuit, the case we've
had has been very historical in nature,"
said Lyle Ball, a spokesman for Caldera.
"Now it includes current behavior, so we
get to use evidence we've gathered
post-1995 to also prove our allegations
against Microsoft."
Caldera alleges that Microsoft illegally
tied MS-DOS software to Windows and
engaged in other anticompetitive
practices intended to quash DR-DOS, a
competing operating system that Caldera
acquired from Novell. Microsoft has
denied the charges.
Two weeks ago, U.S. Magistrate Ronald
Boyce of Salt Lake City ruled at a hearing
that Caldera was free to amend its
complaint to include allegations that
Microsoft illegally tied MS-DOS to
Windows 95. In addition to providing
Caldera with more ammunition to bolster
its charges, the ruling could allow the
closely-held Utah software maker to
collect substantially higher damages
should it succeed in proving its case.
At a hearing slated for tomorrow, the
court is expected to hear Microsoft's
request to delay the start of a jury trial
scheduled for November. Caldera also
plans to raise issues concerning the
fact-finding procedure of the case, known
as discovery.
Rich Gray, an antitrust attorney with
Bergeson, Eliopoulos, Grady & Gray, said
that the decision is a clear victory for
Caldera because the company is now
allowed to introduce "potentially
explosive" evidence to a jury. He warned,
however, that Caldera has by no means
won the war.
"It certainly breathes life into an
important lawsuit, but Caldera still has a
lot of work to do," Gray said. For
instance, he added, the company will have
to demonstrate that there were no
technological justifications for tying
Windows software to MS-DOS. Caldera
also must demonstrate that, were it not
for Microsoft's allegedly anticompetitive
activities, DR-DOS would have enjoyed
gained significant market share. Neither
allegation will be easy to prove, Gray said.
Caldera filed its case in July 1996, alleging
that Microsoft unnecessarily tied
MS-DOS to Windows and made false
promises, known as vaporware
announcements, in order to eliminate
DR-DOS. The suit is just one of a
number of actions taking aim at
Microsoft's allegedly anticompetitive
practices.
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