A US district court on Friday dismissed 38 cases against Microsoft that sought to represent millions of PC owners who argued that they had been overcharged for its Windows operating system. The Washington judge ruled that state laws protect Microsoft because its products were distributed by others.

Most copies of Microsoft's operating system are sold to computer manufacturers. The computers containing Windows are then sold to retailers, then to the consumers, making them indirect purchasers of Windows. Microsoft has successfully argued that indirect purchasers have no remedy against it in cases brought in Baltimore, Hawaii, Iowa, Kentucky, Nevada and Oregon and now Washington.

According to a report in WSJ.com, over 80 such lawsuits are still pending.

Microsoft’s appeal in the government antitrust case is scheduled for February. Many speculate that the new administration of George W. Bush will favour Microsoft, which could lead to the case being settled or dropped according to how the appeal court rules.

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