Microsoft Revisions May Benefit OEMs

The company's revised proposed settlement with the U.S. Justice Department, disclosed last week, addresses a number of potential loopholes identified by opponents to the settlement carved out with the government last November.

In the brief, Microsoft agreed to redefine terms that critics had argued could be used as loopholes to get around the restrictions in the deal. And one specific provision that required computer manufacturers to license some intellectual property to Microsoft has been cut.

A spokesman for Compaq Computer said the new settlement will benefit OEMs. However, others said the revision is not likely to pass muster with the District of Columbia and nine dissenting state attorneys general, who want to see more open access to Microsoft code; stronger enforcement; and an extension of the coverage period to 10 years from the five years currently proposed. Remedy hearings are scheduled to begin March 11.

One Microsoft systems integrator and MSP also predicts the new changes won't push it past the goal line. "I'd be surprised if all nine states said, 'This is good enough,' " said Joe Young, president and CEO of Global Data Systems, Pembroke, Mass.