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To: Karin who wrote (24750)	12/22/1998 5:44:00 AM
From: EPS	Read Replies (1) \| Respond to of 42771

Tuesday December 22 1:10 AM ET Restraining Order Against Microsoft By STEVE GUTTERMAN Associated Press Writer DENVER (AP) - A Colorado Internet greeting card company won the first round in its lawsuit against Microsoft Corp. (Nasdaq:MSFT - news) when a California state court ruled the software giant must stop filtering out messages sent by clients of Blue Mountain Arts. In a suit filed earlier this month, Boulder-based Blue Mountain claimed a new version of Microsoft's Internet Explorer browser comes with an e-mail product containing a filter that automatically places Blue Mountain greeting cards into a junk-mail folder designed for immediate discard. On Monday Santa Clara County, Calif., Superior Court Judge Robert A. Baines granted a temporary restraining order that forces Microsoft to provide Blue Mountain with information allowing it to design its greeting cards so that they get through and are not placed in the junk-mail folder. Microsoft must provide the information by Tuesday. ''We're thrilled that this order came down in time for us to be sure our clients' cards will reach their intended recipients this holiday season,'' said Jared Schutz, vice president of business development for Blue Mountain. Officials at the Redmond, Wash.-based software giant couldn't immediately be reached for comment Monday night. The court also ordered Microsoft to give Blue Mountain 15 days advance notice of any planned changes in the junk mail filter contained in the product version in question, Outlook Express, that's downloaded as part of Internet Explorer 5.0, beta version 5. In addition, it ordered Microsoft to post a clear warning on any relevant software telling users Outlook Express comes with an e-mail filter that may channel legitimate e-mail ''such as electronic greeting cards from family or friends'' into the junk mail folder. The requirements under the restraining order will stand until Jan. 21, when the court will decide whether to issue a preliminary injunction. Unless Microsoft convinces Baines to rule otherwise, they will remain in effect until the case is resolved. Blue Mountain is seeking to halt sales and distribution of any product that hinders its business. It is also seeking restitution and compensation for damages. Previously a Microsoft spokesman pointed out that the junk-mail folder does not delete messages or prevent them from being read. Tom Pilla claimed Blue Mountain's complaint is ''full of inaccuracies'' and said the filter - designed to screen out unwanted commercial e-mail - also sends Microsoft's own greeting cards into the junk-mail folder.