To: Mikey who wrote (4555 ) 12/31/1997 8:35:00 AM From: Shawn M. Downey Read Replies (1) | Respond to of 74651
Microsoft Wins Expedited Hearing In Appeal of Browser Bundling Case By JOHN R. WILKE Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- Microsoft Corp. won an expedited hearing on its bid to overturn a court order that it offer its Windows and Internet-browser software products separately. The federal appeals court ruling late Tuesday is a procedural victory for Microsoft, but doesn't suggest the software giant will prevail in its appeal. On Dec. 11, District Judge Thomas Penfield Jackson found that Microsoft may be trying to use its monopoly in Windows computer operating software to build another monopoly in Internet software. He ordered that Windows and the company's Internet browser, Internet Explorer, be available separately until the court rules again next summer. Microsoft was encouraged by the ruling. "We've said all along that it's important for consumers and the software industry as a whole to resolve these issues as quickly as possible, and we look forward to the opportunity to present our case," a spokesman said. A Justice Department spokesman called the ruling simply procedural and said it "comes as no surprise." Separately, lawyers for both sides met for the first time in New York with Harvard University's Lawrence Lessig, an Internet-law expert appointed by Judge Jackson to gather evidence and make a recommendation to the court by May 31. The Justice Department charged in October that Microsoft violated a 1995 antitrust settlement by forcing computer makers to accept its Web browser along with Windows, the basic operating system that runs most of the world's personal computers. Microsoft had sought to combine the two programs as a single product to thwart Netscape Communications Corp.'s Internet software. The appeals court said Microsoft must file briefs on its appeal by Jan. 29. A response is due from the government March 2, and Microsoft may respond again March 9. The court said oral arguments will be scheduled at the first opportunity after these briefs are filed. The appeals-court order was signed by Douglas Ginsburg, who was appointed by President Reagan, and Judith Rogers, named to the court by President Clinton. Judge Ginsburg led the Justice Department's antitrust division during the Reagan administration, when sharply fewer major antitrust cases were brought. While there is no guarantee both judges will remain on the three-judge panel that will ultimately hear the case, there is a good chance they will be assigned to it. In its request for an expedited appeal on Dec. 16, Microsoft said Judge Jackson overstepped his authority and granted the Justice Department more than it had asked for. Microsoft also objected to the appointment of Mr. Lessig and to the preliminary injunction ordering that Windows and Internet Explorer be separated. But "by entering such a broad preliminary injunction on its own motion, the district court radically altered the status quo," Microsoft argued. "For 16 years, Microsoft has licensed to computer makers the latest and best versions of its operating system" and the judge's order deleting Internet Explorer for those computer makers who want it will lead to a "plainly deficient" product. Microsoft insists that it can add Internet capabilities to the Windows operating system if it wishes and that it is explicitly allowed to do so under the 1995 agreement.