Opening Statements In Microsoft Vs. States: Counsel Trades Jabs

Microsoft

In his opening statement, attorney Brendan Sullivan, speaking for nine states and the District of Columbia, which are pressing the case, cautioned U.S. District Court Judge Colleen Kollar-Kotelly that Microsoft would assert that the district and the states want nothing less than "the destruction of [the company."

"We do not want to wreak havoc on Microsoft," Sullivan said. "We want to make Microsoft behave properly."

Microsoft attorney Dan Webb took the floor after Sullivan wrapped up his remarks, and scoffed at opposing counsel's notion that the company was exercising hyperbole.

In fact, Webb said, the remedy proposed by the district and the states would have a "devastating impact" on the Redmond, Wash.-based software giant.

Enacting the elements of the proposed remedy "would force Microsoft to withdraw Windows from the marketplace," Webb said. "It would unfairly confiscate billions of dollars" of Microsoft's intellectual property. And it would "severely damage Microsoft's ability to compete in the marketplace."

"The only beneficiaries of this proposal," Webb added, "are Microsoft's competitors."

Sullivan and attorney Steven Kuney, who each spent an hour presenting the plaintiffs' opening statement, said the states are concerned that the proposed remedy does not do enough to protect consumers and other IT companies from Microsoft's anticompetitive behavior.

Enforcing greater flexibility in OEM partners' contracts, for example, would protect hardware manufacturers that choose to work with developers of other operating systems, Sullivan said.

"Manufacturers should be accorded respect in how they configure their products," he said, adding that some protection for these companies is needed since "Microsoft likes to control the lifeblood of [its partner manufacturers."

Other examples of the plaintiffs' proposed remedy are no-retaliation provisions -- which they assert would protect OEMs and ISVs that wanted to develop interoperability with non-Microsoft products -- and the appointment of a special master who would oversee the enforcement of the proposed remedy.

California, Connecticut, Florida, Iowa, Kansas, Massachusetts, Minnesota, Utah, West Virginia and the District of Columbia did not join in the settlement brokered by the U.S. Department of Justice and nine other states in November.

The first witnesses in the case, which could last for several months, are to be called this afternoon. Microsoft Chairman Bill Gates and CEO Steve Ballmer are among the witnesses expected to testify.