Out-Law / Your Daily Need-To-Know

Lawyers for Microsoft, the US Justice Department and 18 states appeared in the latest hearing on Microsoft's antitrust settlement on Friday. The judge expressed concern that only nine companies have signed for Microsoft's licensing programme.
Under the terms of the settlement, Microsoft is obliged to licence its software to manufacturers on uniform terms for five years, so that they can make their own software interoperable with the Windows operating system.

Microsoft did create a licensing system, but on terms so restrictive that by April of this year only three companies had signed up. Complaints ensured that the restrictions were eased but, according to the progress report submitted to US District Judge Colleen Kollar-Kotelly on 17th October, only eight companies have now obtained licences. One more company, UT Starcom, has since signed up.

At the hearing on Friday, the Attorneys General could not confirm whether the licences were on sufficiently favourable terms, and said it would take a while to do so.

According to CNet News.com, California's Senior Assistant Attorney General Kathleen Foote, told the court, "We would have liked to say by now whether the remedy had achieved the purpose of opening up the market we had hoped for". She added, "We certainly hope to get at least some clarity on these subjects in the next few months."

Associated Press reports that judge Kollar-Kotelly said, "I think all of us had hoped for more agreements". She went on, "I am interested in finding out why we don't have more licensed products."

Microsoft's lawyer, Rick Rule, argued that the fact that few licenses had been taken up did not mean that Microsoft was not complying with the settlement agreement.

"Ultimately the question should be, are these potentially available," Rule said. "It shouldn't be, how many licenses are there."

The next hearing is scheduled for 23rd January.

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