http://www.infobeat.com/stories/cgi/story.cgi?id=2556956928-d8b

06:47 PM ET 11/05/98

Judge says Microsoft uses ``misleading language''

         
         (adds detail on jackson criticism grafs 2, 4, 5, information on
next witness graf 20)
            By David Lawsky
            WASHINGTON (Reuters) - District Judge Thomas Penfield
Jackson Thursday admonished a Microsoft Corp.  lawyer at the
company's antitrust trial for using ``misleading language'' that
was ``not acceptable.''
            It was the judge's strongest scolding of Microsoft counsel
so far in the 11-day-old trial and he continued to criticize the
lawyer as the day wore on.
            ``You keep mischaracterizing what he's told you,'' the judge
snapped at Microsoft lawyer Theodore Edelman as he was
cross-examining Apple Computer Inc.  software executive Avadis
Tevanian.
            Until now lawyer John Warden has spoken for Microsoft and
incurred occasional mild criticism from the judge. But Jackson
repeatedly criticized Edelman. At one point, he called one of
the Microsoft lawyer's questions ``misleading'' and added: ``You
shouldn't ask him the question.''
             And Jackson, who had several times asked Edelman when he
expected to finish, finally told him in mid-afternoon: ``I want
you to try to finish today, I urge you to try.''
            During his testimony, Tevanian said the software giant tried
to get Apple to give up an important market and said both
companies characterized that as ``knifing the baby.''
            The executive said that at an April 1997 meeting, Microsoft
surprised Apple with a proposal that Apple narrow the market for
its multimedia player software called QuickTime that competed
with a Microsoft product for playing music and video.
            That charge echoes one of the central allegations of the
case. The Justice Department and 20 states have alleged that
Microsoft violated the nation's antitrust laws by competing
unfairly against Netscape Communications Corp. in the market for
Internet browsers.
            The government says that Microsoft tried to get Netscape to
surrender an important part of the market for Web browsers.
            As Edelman hammered away at Tevanian, the Apple senior vice
president grew increasingly frustrated and turned to Judge
Jackson at one point, telling him: ``Your honor, that's not even
close to true.''
            The breaking point came when the Microsoft lawyer asked 
about an Aug. 20, 1997, e-mail in which two Apple engineers
suggested extensive co-operation with Microsoft.
            Tevanian said the document meant little, because ``we (upper
management) flatly rejected their proposal because it didn't
make sense.'' Microsoft's Edelman continued to press, until the
judge interrupted.
            ``He said this was not a proposal, this was a predecision
communication by two Apple engineers which was explicitly
rejected by Mr. Tevanian and others as a proposal,'' Jackson
said. ``It's misleading language and it is not acceptable to
me.''
            Tevanian described in court the April 1997 meeting where he
charged the software titan made its proposal for Apple to stop
QuickTime from working on computers using Microsoft's Windows 
operating software.
            He said Peter Hoddie of Apple was so surprised he wanted to
be clear Microsoft was asking Apple to give up its Windows
market for the QuickTime player.
            ``Do you want us to knife the baby?'' Hoddie asked
Christopher Phillips, the business development manager for
Microsoft's multimedia system.
            ``Yes, we're talking about knifing the baby,'' replied
Microsoft's Phillips, according to Tevanian who was not actually
at the meeting.
            Those kinds of concerns eventually led Apple to consider
ways to counter Microsoft, Tevanian testified.
            Apple executives even discussed whether to warn Microsoft
they could report it to the Justice Department for antitrust
violations. But Tevanian said he did not know if such a plan
ever went beyond internal discussions.
            The trial will resume Monday, when Tevanian will face a
final, brief examination by the government. He will be followed
by Steven McGeady, an executive with Intel Corp.       In Boston
Thursday, Microsoft argued an appeal of a ruling that denied it
access to private tapes of interviews with Netscape executives
used in writing the book, ``Competing on Internet Time.''
            Microsoft would like to show that Netscape lost ground in
the browser market because of its own mistakes rather than any
unfair actions by Microsoft.
            Appeals Court Judge Bruce Seyla promised a timely ruling.
 ^REUTERS@
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