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To: FDHIII who wrote (6564)10/19/1998 12:48:00 PM
From: Logistics  Respond to of 119973
 
NSCP looking sweet. Gates already caught in a lie:

Monday October 19 12:28 PM EDT

Gates' Testimony Questioned In Microsoft Trial

By David Lawsky

WASHINGTON (Reuters) - The government opened its landmark antitrust
trial against Microsoft Corp. (MSFT - news) Monday by calling into
question Chairman Bill Gates' pre-trial testimony on whether the
software giant had made overtures to Netscape Communication Corp.

Justice Department attorney David Boies played excerpts of Gates' Aug.
27 videotaped deposition in court and contrasted the billionaire's
statements with internal memos sent in 1995 by Gates about Netscape,
then a fledgling Internet browser maker.

In the videotape, Gates says he did not know of Netscape's plans and was
not involved in preparation for a June 21, 1995, meeting between
Microsoft and Netscape that is likely to be pivotal in the antitrust
trial. Netscape has said Microsoft asked at that meeting to cooperate
and agree not to compete in certain markets.

Asked in the deposition whether he was involved in preparation for the
June, 1995 meeting Gates said: ''At this time I had no sense of what
Netscape was doing.''

But Boies asked the court to look at a May 1995 memo from Gates which
said: ''A new competitor born on the Internet is Netscape.'' Another
memo that month from Gates said: ''I think there is a very powerful deal
of some kind we can do with Netscape.''

The trial is rated by antitrust experts as one of the most important in
recent times -- comparable to the U.S. government suit against telephone
titan AT&T Corp. (T - news) in 1974.

The U.S. Justice Department and the states filed suit in May charging
Microsoft had used its dominance in personal computer operating systems
to stamp out competitors and capture other software business.

Monopolies are legal if acquired through offering better products or
services but U.S. law forbids the use of monopoly power to maintain
market share or gain monopolies in other business areas.

The government says Microsoft's behavior diminishes consumer choice and
ultimately makes software more expensive.

Microsoft counters that the suit is unwarranted interference in its
business that will hamper its efforts to provide the best possible
products to consumers.

In opening statements, the Redmond, Wash.-based software giant is
expected to repeat its position that it has always behaved legally while
competing vigorously.

''The relevant evidence, the admissible evidence, will show that
Microsoft is a vigorous but a very fair competitor,'' Microsoft general
counsel William Neukom told reporters outside the court

District Court Judge Thomas Penfield Jackson presided over the case
which is expected to last 6-8 weeks.

Each side is limited to 12 witnesses plus two rebuttal witnesses at the
trial's end. To speed the process, witnesses will only be examined on
statements made prior to the trial.

The first witness is not expected on the stand until Tuesday and it is
likely to be Netscape Communications Corp (NSCP - news) President and
Chairman James Barksdale.

In a key aspect of the government's case, Microsoft is accused of making
extraordinary and illegal efforts to push the Internet browser maker out
of the market because Netscape Navigator software threatened its own
software plans.

Microsoft has said it has internal communications that show it initiated
plans to become a major browser player and integrate its Internet
Explorer program with its Windows operating software before it had even
heard of Netscape.

But the Wall Street Journal reported Monday that America Online Inc. (
AOL - news) had provided evidence to the government that supports
Netscape's version of what happened at a June 21, 1995 meeting between
Netscape and Microsoft that is expected to be a major feature of the
case.

A Netscape engineer told an AOL executive that Microsoft ''would crush
them'' if Netscape did not cooperate with Microsoft in providing a board
seat and make available its plans.

Microsoft has repeatedly denied Netscape's version of events. The
government will also call on witnesses from Sun Microsystems Inc. (SUNW
- news), Apple Computer Inc. (AAPL - news) and Intel Corp. (INTC - news
) in an attempt to demonstrate a pattern of behavior by Microsoft.

The bulk of Microsoft's witnesses are from within the company although
it is expected to put a Compaq Computer Corp. (CPQ - news) CPQ.N
executive on the stand, the president of a software partner company and
Richard Schmalansee, interim dean of the Sloan School of Management at
the Massachusetts Institute of Technology.

The government has said if it wins its bid for a preliminary injunction
for remedies in the Internet browser market it will seek ''additional
permanent relief as is necessary to restore competitive conditions.''

Some have speculated that could mean a telephone company style breakup
of Microsoft like the one imposed on AT&T. In any event, most people
expect the case will ultimately be appealed to the Supreme Court for a
final decision.
Earlier Stories
•Microsoft Antitrust Trial Begins (October 19) •U.S. Government Vs.
Microsoft Trial Starts Monday (October 19) •Government Seeks New Order
On Microsoft Evidence (October 18) •Microsoft Trial Revives Prospect Of
Forced Breakup (October 16) •Klein: No Settlement Talks Now With
Microsoft