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To: Loring who wrote (29873)1/10/2000 11:01:00 PM
From: Paul Fiondella  Respond to of 42771
 
Microsoft is beaten by Caldera --- Noorda vindicated

Software makers Microsoft Corp. and Caldera Inc. said Monday that they have settled an antitrust lawsuit that the Utah software firm brought against the software giant in July 1996.

The terms of the agreement weren't released, but Microsoft said it will record a one-time charge in the second quarter that will reduce earnings by approximately three cents a share.

"We are pleased to put this issue behind us," Tom Burt, Microsoft's general counsel for litigation, said
in a statement.

Bryan Sparks, Caldera's chief executive officer, said the company was "pleased with the result" of the lawsuit, adding that "we now look forward to vigorous competition in the marketplace with our Linux products and strategies."

Caldera's suit heated up in November, when the tiny Orem, Utah, firm won the right to bring its court fight to a jury. The trial was expected to begin Feb. 1 and take up to four months.

In its suit, Caldera alleged that Microsoft illegally tied its Windows and MS-DOS operating systems in an effort to undermine Caldera's DR-DOS product -- a claim that closely paralleled the Justice Department's antitrust charges against the Redmond, Wash., company.

DR-DOS was developed by Novell Inc., which later sold it to Caldera. It worked much like MS-DOS, the platform that Microsoft used to build its Windows empire.

Caldera asserted that, beginning in May 1990, Microsoft either built incompatibilities into Windows or tried to create a perception of incompatibilities to discourage computer users from buying DR DOS -- even while e-mail messages compiled as evidence indicate Microsoft programmers found DR-DOS superior.

Caldera accused Microsoft of producing error message in its Windows 3.1 operating system whenever it detected DR-DOS on a computer. Caldera says the message wasn't needed and needlessly scared users away from its product.

====================

$.03 a share must be about $175 million. Just as Caldera was exiting the Court Room, reporters were wondering how soon Real Networks would be entering to obtain a restraining order. Once Judge Jackson issues his Conclusions of Law in the Federal Case it would be a logical move.