Microsoft chief counsel still wants EU settlement

BRUSSELS – Microsoft Corp’s chief counsel, briefing reporters in the lead-up to a European Union court hearing this week, said on Monday he remains hopeful the software giant’s European antitrust case can be settled.

Microsoft has challenged the European Commission’s finding from March that the software giant abused its dominance of PC operating systems. But its top counsel said negotiations remain the preferred course.The company asked the Court of First Instance in Luxembourg to suspend remedies demanded by the EU until the case is completed in years from now.These require the software giant to sell a modified version of windows and offer additional information to rival makers of work group servers Chief counsel Brad Smith said the company plans to argue tomorrow, Friday and possibly Saturday that although the company has spent millions of dollars preparing to comply with the orders it would suffer irreparable damage if it did so.”We’ll be ready to comply with whatever the court orders,” Smith said.On its side, the EU executive will argue that if the remedies are delayed they will become irrelevant and meaningless by the time the case is completed and the market has moved on.The Commission declined to speculate on any future negotiations with Microsoft, noting its decision from March was unanimously endorsed by national competition authorities.”I am not going to speculate on what we might do or not do when faced with a particular decision or another,” Commission spokeswoman Amelia Torres said.”That decision exists and can only be annulled by the Court of First Instance.”The Commission has ordered Microsoft to sell a version of its Windows operating system without Media Player audio-visual software to computers makers.That way, the computer makers can offer Windows with rival audio-visual such as RealNetworks RealPlayer.Court of First Instance President Bo Vesterdorf has asked Microsoft to explain why it could not offer a version of Windows without Media Player, as illustrated by RealNetworks in a demonstration at Microsoft’s hearing before the Commission, a source familiar with the situation said.Microsoft says that would lead to a degraded version of Windows.RealNetworks replies that it has demonstrated Windows can operate well without Media Player, and says that is validated by quality management firm Keylabs.”We have done precisely what the Commission ordered.It’s the difference between a grudging monopolist and an innovative company trying to figure out how to make it work,” said Dave Stewart, deputy general counsel of RealNetworks.The Commission also ordered Microsoft to make available protocols, or software rules, to rivals so their products are on a level playing field when it comes to communicating with Microsoft desktop computers.Microsoft said the order would impinge on its limited-time exclusive rights, including its patents, copyright and trademarks.For example, Smith said its software allows a traveling laptop plugged into a system in New York or London to automatically find the closest printer.Rivals should not enjoy the advantage of that kind of development, Smith said.The court’s Vesterdorf asked Microsoft to explain why it should not share its protocols with many companies, since it has already agreed to share them with Sun Microsystems, a source familiar with the situation said.Microsoft said that while it has a reciprocal, voluntary agreement with Sun, settling a long and bitter lawsuit, it does not want to be forced to make agreements with others.Vesterdorf will decide on Microsoft’s request to suspend, but the case itself will later be heard by a three-judge panel.-Nampa-ReutersBut its top counsel said negotiations remain the preferred course.The company asked the Court of First Instance in Luxembourg to suspend remedies demanded by the EU until the case is completed in years from now.These require the software giant to sell a modified version of windows and offer additional information to rival makers of work group servers Chief counsel Brad Smith said the company plans to argue tomorrow, Friday and possibly Saturday that although the company has spent millions of dollars preparing to comply with the orders it would suffer irreparable damage if it did so.”We’ll be ready to comply with whatever the court orders,” Smith said.On its side, the EU executive will argue that if the remedies are delayed they will become irrelevant and meaningless by the time the case is completed and the market has moved on.The Commission declined to speculate on any future negotiations with Microsoft, noting its decision from March was unanimously endorsed by national competition authorities.”I am not going to speculate on what we might do or not do when faced with a particular decision or another,” Commission spokeswoman Amelia Torres said.”That decision exists and can only be annulled by the Court of First Instance.”The Commission has ordered Microsoft to sell a version of its Windows operating system without Media Player audio-visual software to computers makers.That way, the computer makers can offer Windows with rival audio-visual such as RealNetworks RealPlayer.Court of First Instance President Bo Vesterdorf has asked Microsoft to explain why it could not offer a version of Windows without Media Player, as illustrated by RealNetworks in a demonstration at Microsoft’s hearing before the Commission, a source familiar with the situation said.Microsoft says that would lead to a degraded version of Windows.RealNetworks replies that it has demonstrated Windows can operate well without Media Player, and says that is validated by quality management firm Keylabs.”We have done precisely what the Commission ordered.It’s the difference between a grudging monopolist and an innovative company trying to figure out how to make it work,” said Dave Stewart, deputy general counsel of RealNetworks.The Commission also ordered Microsoft to make available protocols, or software rules, to rivals so their products are on a level playing field when it comes to communicating with Microsoft desktop computers.Microsoft said the order would impinge on its limited-time exclusive rights, including its patents, copyright and trademarks.For example, Smith said its software allows a traveling laptop plugged into a system in New York or London to automatically find the closest printer.Rivals should not enjoy the advantage of that kind of development, Smith said.The court’s Vesterdorf asked Microsoft to explain why it should not share its protocols with many companies, since it has already agreed to share them with Sun Microsystems, a source familiar with the situation said.Microsoft said that while it has a reciprocal, voluntary agreement with Sun, settling a long and bitter lawsuit, it does not want to be forced to make agreements with others.Vesterdorf will decide on Microsoft’s request to suspend, but the case itself will later be heard by a three-judge panel.-Nampa-Reuters