Mike and thread,
Wednesday July 29, 1:11 am Eastern Time
Microsoft seeks dismissal of antitrust charges
By Martin Wolk
SEATTLE, July 28 (Reuters) - Microsoft Corp. on Tuesday asked a federal judge to dismiss state and federal antitrust charges as groundless in the software giant's first formal, legal response to the landmark case set for trial beginning Sept. 8.
In two documents filed in U.S. District Court for the District of Columbia, Microsoft denied all charges brought against it by the U.S. Department of Justice and 20 states.
''Microsoft demands judgment dismissing the complaint on the merits, in its entirety and with prejudice,'' the company said in each of the two documents. With officials on all sides preparing for a trial in six weeks, the request was considered to be a formality.
As part of its response, Microsoft also filed a counterclaim against the 20 state attorneys general, arguing that many charges they brought are superseded by federal copyright law.
If successful, the Microsoft counterclaim would eliminate all charges brought under state antitrust laws although both the state and federal cases would go ahead on charges brought under federal law.
''Any time you can winnow the case down and eliminate any allegation, that's very much in the best interest of Microsoft,'' company spokesman Mark Murray told reporters in a conference call.
While Microsoft will file a more complete statement of its position in a brief due on Aug. 10, the latest filing provides a glimpse of the company's legal strategy, which is centered in part on showing that the company's Windows operating system acts as the linchpin of a vital and competitive U.S. software industry.
''In attacking the design and licensing of the Windows operating system, the complaint challenges not anti-competitive conduct but the very creation of commerce itself,'' Microsoft said.
Microsoft also intends to build on a recent federal appeals court decision that upheld the company's right to add Internet-related features to Windows as long as it can be showed they benefit consumers.
''We are looking forward to showing in court the many ways that software developers and customers benefit from Microsoft's constant improvements to Windows,'' Microsoft Senior Vice President Bill Neukom said in a statement.
A Justice Department spokeswoman said Microsoft's response to the federal charges contains ''numerous misstatements.''
''We remain confident in our case and expect to prevail at the trial that will begin in September,'' she said.
In its formal response, Microsoft denied that its integration of the Internet Explorer browser with Windows had been intended to eliminate the threat posed by rival Netscape Communications Corp.
''That is a chronological impossibility'' because Microsoft decided to include browser technology in Windows 95 before Netscape even existed, Murray said.
Microsoft also rejected government allegations that the company had tried to illegally divide the browser market with Netscape in two June 1995 meetings that have become a topic of controversy.
''Microsoft has never attempted to divide the market for Internet browser software,'' the company said.
Microsoft also denied government claims the company had entered into exclusionary contracts with Internet service providers or Internet content providers or restricted the ability of computer manufacturers to alter the so-called ''first screen'' users see when they turn on their machines.
In its counterclaim against the state attorneys general, Microsoft is seeking a summary judgment on the charges brought under state laws and the award of legal fees. |
