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Microsoft wants injunction clarified
By NULL Reuters
May 7, 1998, 7:00 a.m. PT
http://www.news.com/News/Item/0%2C4%2C21885%2C00.html?sas.mail

WASHINGTON--Microsoft  is asking a federal appeals court to clarify whether a 
preliminary  injunction already under appeal prohibits the bundling of its Internet 
Web  browser with Windows 98.  

  The motion, filed in the U.S. Court of Appeals for the District of  Columbia, would 
have no effect on possible new legal actions under  consideration by the Justice 
Department  and state attorneys general.  

  Such new actions under the Sherman antitrust act may be filed in a matter  of days. 
The Sherman act is aimed at preventing monopolies from unfair  competition practices.  

  Microsoft said it has a separate set of concerns because of the existing  
preliminary injunction, which was issued last  December by U.S. District Judge Thomas 
Penfield Jackson.  

  Microsoft appealed against that preliminary injunction on December 16,  asking the 
higher court to overturn it. Written and oral arguments ended  last month but the 
appellate court has yet to issue its decision.  

  Microsoft said when it decided to appeal the decision it did not know when  it might 
be releasing Windows 98 and so it made no arguments about the new  product.  

  But, the company argued, it will be giving computer makers Windows 98 on  May 15 and 
selling it to the general public on June 25. That release could  lead to new legal 
problems under the injunction.  

  The December injunction bars Microsoft from bundling its Internet Web browser with 
any Windows product, "including Windows 95 or any successor version thereof." 
Microsoft noted in its argument that the judge's injunction, as written, "included 
Windows 98."  

  And so the company asked the appellate court to clarify that the  preliminary 
injunction does not in fact apply to Windows 98.  

  "In order to comply with the preliminary injunction insofar as it relates  to 
Windows 98, Microsoft would have to create a whole new operating system  that did not 
provide support for Internet  standards," the company said.  

  It said that Web capability was so central to Windows 98 that removing it  would 
result in a product that "would bear  little, if any, resemblance to Windows 98."  

  A Justice spokesman said: "Our response will be filed promptly."  

  However, a Justice official noted that the judge's order last December was  valid 
until further orders were given  by the court.  

  That, he said, was "essentially an invitation to come back and seek  clarification 
in the District Court. Microsoft  has avoided doing so and instead has contrived an 
'emergency' where none  needed to exist."  

  In its brief, Microsoft said  Justice had "refused to enter a definitive  agreement 
immunizing Windows  98" from being included under the preliminary injunction.  

  The DOJ official said that kind of immunity was not up to the department.  

  He said the injunction "is a judicial order, not a contract. It is up to  the judge 
to decide what his order means. The department has offered to  join in an effort to 
obtain a determination by the District Court."  

   Microsoft  chairman Bill Gates's late night  meeting  Tuesday with senior DOJ 
lawyers yielded no progress toward resolving the  conflict between the government and 
the  software Goliath, the Wall Street Journal reported today.  

  Gates met for two hours with lead antitrust prosecutor Joel Klein and asked  that 
the government not restrict Microsoft's ability to add new features to  its flagship 
Windows operating system software, the Journal said,  citing unnamed participants in 
the meeting.  

  Gates argued that such a move would stifle innovation and hurt consumers,  the paper 
said.  

  Gates, accompanied by Microsoft general counsel William Neukom and other  outside 
legal advisers, did most of the talking and was forceful in his  presentation, the 
Journal said. He argued that Windows does not have  a monopoly in operating system 
software, citing the UNIX, O/S 2 and Apple Computer systems.  

  The meeting took place at the Washington office of the law firm Sullivan &  
Cromwell, the paper said.  

    Dan Goodin contributed to this report.  


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