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Technology Stocks : How high will Microsoft fly?
MSFT 472.22-1.3%Nov 21 9:30 AM EST
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To: John F. Dowd who wrote (11306)10/14/1998 6:07:00 PM
From: John F. Dowd  Read Replies (2) of 74651
 
To All: The below excerpt from the full MSFT refutation of DOJ's case(http://www.microsoft.com/presspass/doj/10-13record.htm#statement) gives us an idea of why MSFT is headed inexorably back up.

Dismissal of case and great earnings.

Ironically, even Netscape cannot support the government's accusation that Microsoft
has illegally "tied" Internet Explorer technology to the Windows operating system. In
a recently unsealed document outlining the active collaboration of the Justice
Department and Netscape months before the case was filed, Netscape's own counsel
writes: "We are totally unable to provide examples of files that can or can not be
deleted from Windows 98 since, as we discussed this week, it is our understanding
that it is simply not possible to delete any portion of IE, or of browser functionality,
from Windows 98 as presently configured without severely interfering with the
operating system."

A body of case law has developed to deal with claims that the technical connection of
one product with another constitutes an unlawful tying arrangement. These cases
hold that such technically interconnected products are immune from tying claims
(generally referred to as "technological tying" claims), as long as the interconnection
of the two products achieves a technologically beneficial result. The case brought
against Microsoft presents an even weaker basis for judicial intrusion into questions
of product design because, unlike in most "technological tying" cases, Windows 95
and Windows 98 as provided to computer manufacturers have always included
Internet Explorer technologies – both operating systems are a single, integrated
product. Additionally, there is no claim that the alleged tying product (Windows) was
designed in a way that would make competitors' products incompatible with it.
Moreover, the Department of Justice cannot genuinely dispute that the integration of
Internet Explorer technologies in Windows 98 achieves technically beneficial results.
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