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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator -- Ignore unavailable to you. Want to Upgrade?


To: Keith Hankin who wrote (15145)12/19/1997 6:34:00 PM
From: John F. Dowd  Respond to of 24154
 
Dear Keith:

The following tells you how computer literate this judge is. Please read the entire article and then you will understand MSFT's dilemma. The judge said they had to separate the two but perhaps he didn't mean it as literally as he spoke in court.
Microsoft Must Explain Browser Position
By David Lawsky

WASHINGTON (Reuters) - A federal judge Friday told Microsoft Corp. he easily
uninstalled the company's Web browser without breaking Windows 95 and ordered
company officials to explain why they could not do the same.

"Windows 95 functioned flawlessly" with Internet Explorer uninstalled, U.S.
District Judge Thomas Penfield Jackson told Microsoft.

Last week he ordered the company to make its Windows 95 software operating
system available to PC makers without also requiring them to accept Internet
Explorer. The company called Jackson's decision unworkable and appealed it.

Nonetheless, Microsoft said it had complied with his order by offering computer
makers the choice of an old version of Windows 95 or one that the company says
will not work.

Personal computer makers may instead buy an up-to-date system with both
Windows and the Web browser installed.

At a hearing to schedule arguments over a government allegation that Microsoft is in
contempt of Jackson's order -- and should be fined $1 million a day -- the judge
said he had seen a demonstration showing that Microsoft's Web browser could be
uninstalled in about 90 seconds.

He said a court employee had used a brand new Micron computer with the latest
version of Windows 95 as he watched.

"I was given a demonstration," Jackson said. After the uninstall, he said,
"Windows 95 functioned flawlessly."

The judge then explained the simple steps the employee had followed to uninstall
the Internet Explorer Web browser. At the end, a message flashed on the screen
saying that Internet Explorer had been "uninstalled successfully."

Jackson said the program could be reloaded with equal ease in what appeared to be
a very simple process.

"If it's not that simple, I'd like to have it refuted," he told Microsoft officials at
Friday's hearing.

Microsoft must file a brief by Dec. 23 explaining its position and the government
will file a response on Dec. 29. The judge set a hearing for Jan. 13, with each side
permitted only one witness.

The scuffle is part of an increasingly intense battle between the government and
Microsoft.

The Justice Department has charged that Microsoft is trying to muscle rival
Netscape Communications Corp. out of the Web browser market by forcing PC
makers to buy Microsoft's Web browser along with its dominant Windows 95
operating system.

After the hearing, Brad Smith, associate general counsel of Microsoft, was asked
about news reports speculating that the company might settle the case.

"There's no discussion that I'm aware of," he said in a telephone interview, adding
that he probably would know about such discussions. "The case is continuing."

Smith also said that the uninstall mechanism described by the judge actually left 97
percent of Internet Explorer intact, removing little more than the "icon" on the
screen known as the "desktop."

He said that despite what Jackson said about the program functioning flawlessly,
the removal breaks a couple of functions in Windows 95, such as the ability to
easily download other Web browsers.

Smith said Windows 95 is a technologically complex product that is best left alone
by the government.

"You simply can't slice and dice it with a legal meat cleaver," Smith said.

The Justice Department, however, is beefing up its legal team. It has retained David
Boies, a highly regarded New York lawyer, to help try the case against Microsoft.

After the hearing Friday, Christine Varney, a former Federal Trade Commissioner
now representing Netscape, was jubilant.

"I think the judge has understood the seriousness of the issue," she said.

Microsoft stock closed at $128.69, down $2.19 on Nasdaq, where it was among
the most active issues.