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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Joey Smith who wrote (68147)	11/9/1998 6:36:00 PM
From: John Koligman	Respond to of 186894

Gates also said Intel's software efforts were of 'low quality' and did not mesh well with the Windows work Microsoft was doing at the time. Here is the expanded text.... Gates denies pressuring Intel about software By Elizabeth Wasserman IDG News Service, Washington bureau Posted at 11:18 AM PT, Nov 9, 1998 WASHINGTON -- Microsoft Chairman Bill Gates denied taking steps to dissuade Intel from developing Internet software, but he did describe the chip maker's software products as being of "low quality" and "incompatible" with Windows during his videotaped deposition in preparation for Microsoft's antitrust trial. In a 15-minute segment of the videotape played in U.S. District Court Monday, Gates steadfastly rejected government claims that Microsoft attempted to press Intel to stick to hardware and stay away from the software trade. He also denied -- in a series of simple "No" answers accompanied by long pauses and his characteristic rocking -- that his company sought to keep Intel from aiding Microsoft's rivals, Sun Microsystems and Netscape Communications. In segments of the deposition that Microsoft's attorneys requested be shown, Gates elaborated on what he recalled of Microsoft's contacts with Intel regarding software development. The U.S. Justice Department's outside counsel, David Boies, asked Gates during the Aug. 28 deposition, "Did you or, to your knowledge, anyone at Microsoft, try to convince Intel that it should not engage in any software activity unless Microsoft was involved in that activity?" Answered a more animated Gates: "I'm sure we pointed out sometimes how sometimes a lack of communications between the two companies on various subjects including software development led to unfortunate unreliability and mismatch, which led to bad customer experiences." Boies then pressed Gates as to whether he or anyone at Microsoft told Intel officials that "they should leave the software side of the PC business entirely to Microsoft?" "We were having a hard time coordinating our work with Intel, and we thought the quality of some of their work was very low as well as not working with any of our new Windows work," Gates replied. "We may have suggested at some point that the net contribution of their software activities could even be viewed as negative." When court resumes this afternoon, the government is expected to call Steven McGeady, a vice president at Intel who oversaw that company's work on development of Internet software and work in the Java programming language. McGeady is expected to bolster government claims that Gates and Microsoft did attempt to convince Intel to stay out of the software side of the business. But unlike other witnesses called so far during the trial, McGeady's direct testimony was not made public beforehand at the request of Intel. Outside the courthouse, Microsoft's Mark Murray said that Microsoft and Intel have a strong and positive business relationship. "Now, just like any two companies, Microsoft and Intel don't always agree on every issue," he said. "But when they disagree, they work together to try to resolve those disputes." Boies said the reason he played the Gates video was to foreshadow what McGeady would say on the witness stand. "The purpose was to put in front of the court all the testimony concerning Intel that we thought were relevant," Boies said. During the morning session, Apple's senior vice president for software development, Avie Tevanian, wrapped up his testimony in the case. He insisted that the only reason Apple agreed in an Aug. 5, 1997, agreement with Microsoft to make the Internet Explorer (IE) browser the default browser on the Macintosh computer was because Microsoft had threatened to stop developing Microsoft Office for Mac. But during a videotaped segment played for the court by Microsoft's attorneys, Apple CEO Steve Jobs said in announcing the deal at MacWorld the following day that it was to resolve multiple patent disputes. The tape was also noteworthy for displaying the disfavor that the MacWorld crowd exhibited when Jobs announced the Microsoft deal, booing when he announced IE would be the default browser and cheering when it was announced that other browsers would also be available. Based in Redmond, Wash., Microsoft Corp. is at www.microsoft.com. Apple Computer Inc., in Cupertino, Calif., is at www.apple.com. The U.S. Department of Justice is at www.usdoj.gov. Intel Corp., in Santa Clara, Calif., is at www.intel.com. Elizabeth Wasserman is Washington bureau chief for The Industry Standard. Patrick Thibodeau, a senior writer at Computerworld, contributed to this report. Related articles: "Microsoft paints Apple as hardball player" "Executive: Microsoft threatened Apple" "Microsoft Under Fire: A roundup of InfoWorld's coverage of government antitrust actions against a computer industry titan"