[CC] Beware of Microsoft bearing gifts (Trojan computers with software hidden inside)

[George(s) Lessard]

------- Forwarded message follows -------
From:           	"Paul Nielson" <p.nielson@home.com>
To:             	<cpi-ua@vcn.bc.ca>
Subject:        	[CPI-UA]: Beware of Microsoft bearing gifts (Trojan computers 
with software hidden inside)
Date sent:      	Thu, 29 Nov 2001 12:25:06 -0600
Send reply to:  	cpi-ua@vcn.bc.ca

New York Times, November 28, 2001 U.S. Judge Questions Plan for Deal in 
Microsoft Case By BLOOMBERG NEWS BALTIMORE, Nov. 27 (Bloomberg) - A federal 
judge today questioned whether Microsoft (news/quote)'s $1 billion plan to give 
computers to schools to settle consumer antitrust claims would give it an 
unfair advantage in one of the few markets where it faces competition from 
Apple Computer Inc. (news/quote) Judge J. Frederick Motz of Federal District 
Court asked lawyers for class-action plaintiffs who negotiated the settlement 
to respond to criticism from Apple, Red Hat Inc. (news/quote) and industry 
groups that allowing Microsoft to donate software and refurbished personal 
computers would entrench the company's monopoly in operating systems. Providing 
free copies of Microsoft's Windows operating system might "have an indirect 
anticompetitive effect" because schools would choose to receive computers 
compatible with Microsoft software "as opposed to buying" from Apple, the judge 
said. Apple now has a 47 percent share of the market for school computers in 
the United States, while Windows powers 53 percent. In denouncing the school 
plan, Attorney General Mike Hatch of Minnesota and the Software Industry and 
Information Association echoed criticism of the proposed settlement of the 
Justice Department's antitrust suit against the company. To settle the consumer 
antitrust claims, Microsoft has agreed to deliver one million reconditioned 
computers with free copies of the Windows operating system to schools in poor 
neighborhoods. The agreement would resolve more than 150 class-action suits 
claiming the company overcharged consumers. The pact would also apply to any 
pending claims that accuse Microsoft of using its Windows monopoly to charge 
extra money for the operating system and popular software programs like 
Microsoft Office. Judge Motz said he would decide by mid-December whether to 
give preliminary approval to the settlement. Such approval would be followed by 
a hearing on whether the plan is fair. A plaintiffs' attorney, Michael 
Hausfeld, told the judge that class-action lawyers were in negotiations with 
Red Hat for the company to provide free copies of its Linux-based operating 
system for each copy of Windows that Microsoft gives to schools. "The 
settlement would heavily promote and subsidize the schools' acquisition of 
Microsoft products at the expense of more effective and appropriate 
alternatives," Apple contended in its brief. Lawyers representing California 
consumers say they will urge Judge Motz to reject the settlement because it 
would deny their clients the opportunity to seek damages. "We have 13 million 
consumers who are relying on us to represent them," said Eugene Crew, 
representing plaintiffs who sued in California state court. "The settlement is 
grossly inadequate."  


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Copyright 2001 The New York Times Company 

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