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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (11614)	10/21/1998 10:01:00 PM
From: John F. Dowd	Read Replies (1) \| Respond to of 74651

To All: This is amazing! NSCP should run for political office. WASHINGTON (Reuters) - Microsoft Corp. resumed its defense of government antitrust charges Wednesday, accusing Netscape Communications Corp. of being the first to suggest Microsoft take a stake in the then fledgling Internet browser maker. Government lawyers have said the software titan offered to take a position in Netscape in a June 1995 meeting at which, they charge, Microsoft proposed to illegally divide the browser market. But Microsoft lawyer John Warden produced a December 1994 message from Netscape co-founder and then chairman Jim Clark to two senior Microsoft officials that said: "You might take an equity position in Netscape with the ability to expand the position later."

To: John F. Dowd who wrote (11614)	10/21/1998 10:15:00 PM
From: John F. Dowd	Respond to of 74651

To All Softees: More Great Stuff - Warden Strikes again! Knew it all along Warden also tried to establish that Netscape knew of Microsoft's Internet browser plans well in advance of the June 1995 meeting. Barksdale testified Wednesday that he had not been aware of Microsoft's intention to integrate the Internet Explorer Web browser into Windows 95 until a December 1995 speech from Microsoft Founder and Chairman Bill Gates. Prior to that, Barksdale said, he had been under the impression that Microsoft (MSFT) would ship the browser with Windows 95, but that the browser would not be included as an essential part of the operating system. Warden then grilled Barksdale on comments Clark made in a deposition. Clark had testified that he learned of Microsoft's plans when Gates divulged his company's strategy at a conference in the fall of 1994, before Netscape released the first beta version of its Internet browser, Navigator. "All he said was: 'I hope no one plans to make money on browsers, because they will get bundled into the operating system,' " Clark said in his deposition. "And this was before Netscape released the beta." Clark said in his deposition that after learning of Microsoft's plans, Netscape planned to make Navigator available for free for a limited trial period because he "felt like we would have to if we were to survive against Microsoft." Warden asked Barksdale, who became Netscape CEO in January 1995, if anyone had apprised him of Gates' statement. Barksdale replied, "I don't believe so." Moves haven't hurt Netscape Warden also quoted Netscape press releases that declared Netscape's Netcenter Web site is the fastest-growing Internet portal, attacking the notion that Microsoft's entry into the browser market had crippled Netscape. Even if Netscape had been hurt in some way by Microsoft's actions, Warden argued, the company still was managing a fast-growing business. Barksdale testified that Netscape's annual revenues has increased every year since 1994, though he expects 1998 revenues to slip from 1997 results. (Netscape reports fiscal 1998 results in November.) In an often heated exchange with Barksdale, Warden also tried to press the point that although Netscape's market share has declined significantly since 1996, that is only because Microsoft has provided more competition in the marketplace rather than eliminated consumer choice. "Isn't it true that any home user who wants to use Netscape's browsing software has the choice to do so at no cost?" Warden asked. "I don't accept the premise of your question," replied Barksdale, who often appeared flustered and frustrated by Warden's questions. "I don't know if my question had a premise," Warden said. "In a very biased way, [that statement] would be true," Barksdale said. "But most people wouldn't make the effort [to download Navigator because they get Internet Explorer with Windows]." "But they are free to do it," Warden shot back. Warden later contended that Microsoft only served to increase innovation in browser development, refuting Barksdale's charge that Microsoft's actions have stifled innovation. "Isn't it true that Netscape has actually increased the pace of new releases of its browser software as a result of Microsoft's browser software?" Warden asked. "As they've improved their products, we've improved ours," Barksdale said. "I've never said anything otherwise." Separately, Judge Thomas Penfield Jackson granted a Justice Department motion to compel Microsoft to provide access to databases with information concerning sales, shipments, pricing and distribution of Internet Explorer and Windows through the retail channel. Microsoft had previously filed a motion challenging the request, contending the government's original request only related to database files concerning sales and distribution through PC makers. The Justice Department and 20 states filed suit against Microsoft last May accusing the software giant of leveraging its operating system monopoly into the browser market. In recent weeks the case has expanded to include charges that Microsoft tried to bully competitors and partners in other areas of the Internet software business.