[wordup] microsoft settlement agreement.

[Adam Shand]

I haven't read through this but as far as I can tell M$ got off pretty
light. Once nice thing in the agreement though is the line which roughly
says "MS must allow OEM's to ship dual booting computers". So maybe we'll
start seeing more companies offering linux as an alternative when you
*buy* the computer.

Below is a fairly readable summary of what it all actually means.

Adam.

From: http://news.bbc.co.uk/hi/english/business/newsid_1634000/1634590.stm

Outline of proposed settlement
Friday, 2 November, 2001, 14:43 GMT

The Department of Justice on Friday published details of the proposed
settlement of its dispute with Microsoft. The highlights of the proposal
follow, and the full text is obtainable by following the link lower down
the page on the right.

Today's proposed settlement is modeled on the conduct provisions in the
original Final Judgment entered by Judge Jackson, but includes key
additions and modifications that take into account the current and
anticipated changes in the computer industry, including the launch of
Microsoft's new Windows XP operating system, and the Court of Appeals
decision revising some of the original liability findings.

The proposed Final Judgment includes the following key provisions:

 * Broad Scope of Middleware Products - The proposed Final Judgment
   applies a broad definition of middleware products which is wide ranging
   and will cover all the technologies that have the potential to be
   middleware threats to Microsoft's operating system monopoly. It
   includes browser, e-mail clients, media players, instant messaging
   software, and future new middleware developments.

 * Disclosure of Middleware Interfaces  - Microsoft will be required to
   provide software developers with the interfaces used by Microsoft's
   middleware to interoperate with the operating system. This will allow
   developers to create competing products that will emulate Microsoft's
   integrated functions.

 * Disclosure of Server Protocols - The Final Judgment also ensures that
   other non-Microsoft server software can interoperate with Windows on a
   PC the same way that Microsoft servers do. This is important because it
   ensures that Microsoft cannot use its PC operating system monopoly to
   restrict competition among servers. Server support applications, like
   middleware, could threaten Microsoft's monopoly.

 * Freedom to Install Middleware Software - Computer manufacturers and
   consumers will be free to substitute competing middleware software on
   Microsoft's operating system.

 * Ban on Retaliation - Microsoft will be prohibited from retaliating
   against computer manufacturers or software developers for supporting or
   developing certain competing software. This provision will ensure that
   computer manufacturers and software developers are able to take full
   advantage of the options granted to them under the proposed Final
   Judgment without fear of reprisal.

 * Uniform Licensing Terms - Microsoft will be required to license its
   operating system to key computer manufacturers on uniform terms for
   five years. This will further strengthen the ban on retaliation.

 * Ban on Exclusive Agreements  - Microsoft will be prohibited from
   entering into agreements requiring the exclusive support or development
   of certain Microsoft software. This will allow software developers and
   computer manufacturers to contract with Microsoft and still support and
   develop rival middleware products.

The proposed Final Judgment also includes key additional provisions
related to enforcement:

 * Licensing of Intellectual Property - Microsoft also will be required
   to license any intellectual property to computer manufacturers and
   software developers necessary for them to exercise their rights under
   the proposed Final Judgment, including for example, using the
   middleware protocols disclosed by Microsoft to interoperate with the
   operating system. This enforcement measure will ensure that
   intellectual property rights do not interfere with the rights and
   obligations under the proposed Final Judgment.

 * On-Site Enforcement Monitors - The proposed settlement also adds an
   important enforcement provision that provides for a panel of three
   independent, on-site, full-time computer experts to assist in enforcing
   the proposed Final Judgment. These experts will have full access to all
   of Microsoft's books, records, systems, and personnel, including source
   code, and will help resolve disputes about Microsoft's compliance with
   the disclosure provisions in the Final Judgment.

Illegal conduct

The core allegation in the lawsuit, upheld by the Court of Appeals in June
2001, was that Microsoft had unlawfully maintained its monopoly in
computer-based operating systems by excluding competing software products
known as middleware that posed a nascent threat to the Windows operating
system.

Specifically, the Court of Appeals found that Microsoft engaged in
unlawful exclusionary conduct by using contractual provisions to prohibit
computer manufacturers from supporting competing middleware products on
Microsoft's operating system by:

 * prohibiting consumers and computer manufacturers from removing
   Microsoft's middleware products from the operating system

 * reaching agreements with software developers and third parties to
   exclude or disadvantage competing middleware products.

The proposed Final Judgment will be published by the Federal Register,
along with the Department's Competitive Impact Statement, as required by
the Antitrust Procedures and Penalties Act.

Any person may submit written comments concerning the proposed consent
decree within 60 days of its publication to: Renata Hesse, Trial Attorney,
325 7th Street, N.W., Suite 500, Washington, DC 20530

At the conclusion of the 60-day comment period, the Court may enter the
proposed consent decree upon a finding that it serves the public interest.

The proposed Final Judgment will be in effect for a five-year period and
may be extended for an additional two-year period if the Court finds that
Microsoft has engaged in multiple violations of the proposed Final
Judgment.