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Judge says Microsoft antitrust pact works

U.S. District Judge Colleen Kollar-Kotelly said the 2002 settlement with the government was working and she brushed aside concerns from the Justice Department that a key provision had failed to live up to expectations.
/ Source: Reuters

A federal judge on Friday said she was satisfied with Microsoft Corp.'s efforts to comply with its landmark antitrust settlement after the company announced new steps, including free access to some of its Windows operating system code.

U.S. District Judge Colleen Kollar-Kotelly said the 2002 settlement with the government was working and she brushed aside concerns from the Justice Department that a key provision had failed to live up to expectations.

"The decree seems to be operating," Kollar-Kotelly said. "We only have concerns about one provision."

The comments came during a conference with the Justice Department and Microsoft, held to update the judge on how well the company is complying with the settlement.

In a report to Kollar-Kotelly last week, antitrust enforcers at the department complained the settlement had fallen short on a key provision designed to make sure rivals can make their server software work properly with the Windows operating system."

In response to the concerns, Microsoft gave Kollar-Kotelly a list of changes it will make to make it simpler and easier for competitors to license the necessary computer code.

Microsoft attorney Rick Rule said Microsoft would make 20 of the 113 pieces of the necessary computer code, known as protocols, available for free by download.

Rule said Microsoft also would simplify and shorten the licenses. He told the judge that Microsoft is working hard to entice other companies to take advantage of them.

"Microsoft is willing to go that extra mile to try to get additional licensees signed up," Rule said.

The judge conceded the provision at issue "has not yet yielded the hoped-for results," but she said it "may be just too early to tell."

Making the server protocols more accessible could help companies such as Sun Microsystems Inc., which are battling Microsoft in the market for software that runs servers, the powerful machines that manage computer networks.

It's the second time Microsoft has agreed to streamline the server protocol licenses. Last year, Microsoft took other steps to make the licenses more attractive and address other Justice Department concerns about the settlement.

But to date, only 11 companies have signed licenses for the Windows protocols. The department said most have been for development of niche products that are unlikely to spur the broad competition to the Windows desktop.

Stephen Houck, the attorney for a group of state attorneys general who are also part of the settlement, said the shortcomings in the licensing were a major problem.

"We regard it as one of the most important provisions in the judgment," Houck said. "We believe there is much more that can and should be done to make this program work as it should."

But Kollar-Kotelly was unperturbed. She said some of Microsoft's competitors might be holding off on licensing the Windows protocols because they are waiting for the outcome of "external proceedings," a reference to a separate antitrust case the European Commission is pursuing against Microsoft.

Instead Kollar-Kotelly praised Microsoft and the department for working cooperatively on other parts of the settlement.

"I am pleased to see that the parties seem to be cooperatively resolving the complaints that have been raised," the judge said.