-Caveat Lector-

http://www.nypostonline.com/business/17831.htm

GATES WAITS FOR
BAILOUT FROM GOP

By NILES LATHEM


 Microsoft boss Bill Gates plans to play cat and mouse with the
feds until after the election, in hopes that George W. Bush
becomes president and saves his tail, officials close to the
company said last night.

The world's richest man will use his political and financial
clout to keep antitrust officials at the Department of Justice at
bay, in a gambit to save his high-tech empire from ruin, the
officials said.

Gates, who took a beating on Friday when a federal judge found
Microsoft was abusing its monopoly power and harming consumers,
is expected to stand firm and spurn any talk of settling with
government trustbusters.

But state attorneys general, who joined the feds in the suit, say
they'll proceed against Microsoft no matter what happens after
the election.

Judge Thomas Penfield Jackson, who issued his blistering findings
of fact against Microsoft at the conclusion of a 77-day trial,
has scheduled a meeting with lawyers in the case for sometime
next week.

At that meeting the judge, who has set the stage for harsh
sanctions, including a breakup of Microsoft, is expected to press
both sides to settle the lawsuit.

While Microsoft lawyers are expected to participate, company
officials, including general counsel William Neukom, have given
broad hints that they'd rather pursue the appeals process instead
of settlement talks - which they would enter holding the weaker
hand.

"I don't think there's much risk going for an appeal. Given the
one-sided nature of the findings any kind of reasonable
settlement will be difficult," said Sen. Slade Gorton (R-Wash.),
Microsoft's biggest booster in Congress.

In pursuing the appeals strategy, Microsoft wants to delay the
case and play out the clock in hopes of getting a better deal
with a new president and new attorney general after President
Clinton and Attorney General Janet Reno leave office in January
2001, analysts said.

Texas Gov. George W. Bush, the GOP presidential frontrunner, for
example, is a close friend of Microsoft Chief Operating Officer
Bob Herbold and said at a conference of high-tech executives in
Arizona last month his administration would "always take the side
of innovation over litigation."

Microsoft clearly would be looking for similar actions from a
Bush adminstration that businesses got from the Reagan
administration in 1981. Reagan's antitrust enforcer William
Baxter brought a more pro-business tilt to his policies and
dropped the decades-long case against IBM.

The only major case that did go forward under Baxter was the
breakup of AT&T.

Neukom hinted that a play-out-the-clock strategy was in the works
when he told reporters that if the case went to the Supreme
Court, it would be 2003 at the earliest before it was resolved.

Microsoft, which gave $1.3 million in donations to Congressional
campaigns in the last election cycle, is also lobbying GOP
members of Congress to cut the budget of the Justice Department's
antitrust division, which sued the company and it is spending
millions funding grassroots lobbying efforts in 19 individual
states whose attorneys general also joined in the historic
lawsuit.

Legal experts say it will be difficult to reverse Jackson's
findings of fact in higher courts and Microsoft will open itself
to hundreds of lawsuits from high-tech companies unless it
settles quickly with the government.

But Microsoft's lawyers are expected to base their appeal on
their belief that Judge Jackson was biased against Microsoft from
the very outset and ignored large areas of evidence presented by
company attorneys at the trial.

The appeals court, dominated by Republican pro-business
appointees, "is likely to be a friendlier place," for Microsoft,
said William Kovacic, an anti-trust expert at George Washington
University, because it has already overturned a key ruling from
Jackson ordering Microsoft to separate its Internet Explorer web
browsing software from Windows95.

Many state attorneys general said they will continue to pursue
strong sanctions against Microsoft, regardless of what happens in
Washington.

"If they abandon the case, then it's pretty clear what would
happen - the 19 states would continue it ... If somehow a new
administration wants to settle or dismiss the case, the states
are not going to settle it, except on terms that they accept,"
said Iowa Attorney General Tom Miller.

Added Connecticut Attorney General Richard Blumenthal: "Very
emphatically and unequivocably, we will stay in this lawsuit as
long as it takes to reach remedies that correct Microsoft's
predatory business practices."



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