But see http://www.theregister.co.uk/content/4/24584.html where Red Hat admit that they do very little real software development ... at least MS are actually working on an office suite ...
-- Edmund Cramp (playing Devils Advocate) http://www.emgsrus.com/graffiti.htm > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] > Behalf Of Ron Spruell > Sent: Tuesday, March 26, 2002 8:18 AM > To: Brluglist > Subject: [brluglist] Gateway Executive Says Microsoft Has Used > Settlement to Its Advantage > > > Gateway Executive Says Microsoft > Has Used Settlement to Its Advantage > > By NICHOLAS KULISH > Staff Reporter of THE WALL STREET JOURNAL > > > WASHINGTON -- A top Gateway Inc. executive told a federal > judge that Microsoft > Corp. has tightened its grip on the computer industry in the > months since the > Bush administration settled its antitrust case against the > software maker. > > "Microsoft has used the [settlement] to compel financial and > other benefits it > did not have under previous agreements with Gateway," Anthony > Fama, an attorney > for Gateway, testified in U.S. District Court here Monday. > > The Justice Department settled its antitrust case last > November, pending > approval of the deal by Judge Colleen Kollar-Kotelly. At the > same time, she is > presiding over the related case through which nine states > that refused to settle > with the Justice Department are seeking tougher remedies. The > states argue that > the settlement is ineffective against the monopoly abuses > found by a federal > appeals court last June. > > THE MICROSOFT CASE > > See complete coverage of the Microsoft case, including > related articles, more > than three years' worth of court filings and other documents, > and a chronology > dating back to the 1980s. > > Join the Discussion: Will Microsoft's legal woes ever end? > Who's right? "Sun's > and Oracle's attacks are driven by envy and a big inferiority > complex," one > reader writes. Add your comments. > > > > Mr. Fama said Microsoft had used the agreement to force > computer makers to > accept new contracts that contained more onerous terms than before the > settlement, even though the company had been found in > violation of the Sherman > Antitrust Act. > > According to Mr. Fama, the new contracts allow Microsoft to > terminate agreements > with little or no notice and permit the company to infringe > on PC makers' > patents without compensation. New agreements also could force > Gateway and others > to pay Windows operating-system royalties on returned > computers and potentially > even on hardware shipped without an operating system, he said. > > Microsoft challenged portions of his testimony, asking that > they be stricken as > outside the scope of the proceeding, but Judge Kollar-Kotelly > allowed Mr. Fama's > written direct testimony to be entered into the record. In > his challenge, > Microsoft's lead trial attorney, John Warden, said one of the > criticized > provisions "had been a standard term in Microsoft's Windows > license agreements > since at least 1995." > > Microsoft's relationship with computer makers has been > central to the antitrust > case from the start. Without Microsoft's operating system on > which to run > programs, PC makers can't sell their computers. And with the > tight profit > margins in the industry, even slight price differences can > make or break a > company. > > That leverage gave Microsoft the power to demand that PC > makers leave rival > software like the Netscape Navigator Web browser off their > computers, evidence > in the earlier trial showed. Even with a new volume-based > uniform pricing system > agreed to in the Justice Department settlement, Mr. Fama said > Microsoft still > appeared to favor the most cooperative computer makers. > > In cross-examination, Microsoft attorney Richard Pepperman > asked Mr. Fama about > those uniform pricing terms. Mr. Pepperman said the company > already had > conformed to guidelines for listing prices on a closed Web > site for the top 20 > PC makers. > > A former Gateway executive, Peter Ashkin, testified before > the court last week, > but attorneys for Microsoft linked his testimony to his > current employer, > competitor AOL Time Warner Inc. > > Earlier in the day, Microsoft attorneys cross-examined > Michael Tiemann, the > chief technology officer at Red Hat Inc. The upstart software company > distributes the Linux operating systems, which powers a small > fraction of the PC > market Microsoft dominates. > > Mr. Tiemann testified that Microsoft had made it more > difficult for computers > with different operating systems to work together, > discouraging equipment > manufacturers from selling rival technologies. > > Lawyers for Microsoft questioned Mr. Tiemann about Red Hat's > business practices, > suggesting that it was the company's own failure to meet > demands and provide > products and standards requested by PC makers that kept their > market share > relatively small. > > Write to Nicholas Kulish at [EMAIL PROTECTED] > > Updated March 26, 2002 > > ================================================ > BRLUG - The Baton Rouge Linux User Group > Visit http://www.brlug.net for more information. > Send email to [EMAIL PROTECTED] to change > your subscription information. > ================================================ > > ================================================ BRLUG - The Baton Rouge Linux User Group Visit http://www.brlug.net for more information. 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