msft urteil

UNITED STATES DISTRICT COURT
                     FOR THE DISTRICT OF COLUMBIA


        UNITED STATES OF AMERICA,
                 Plaintiff,

                          v.

        MICROSOFT CORPORATION,      
                 Defendant.



        STATE OF NEW YORK, et al.,
                 Plaintiffs,

                          v.

        MICROSOFT CORPORATION,      
                 Defendant.



        MICROSOFT CORPORATION,
                 Counterclaim-Plaintiff,

                          v.

        ELIOT SPITZER, attorney general
        of the State of New York,
        in his official capacity, et al.,
                 Counterclaim-Defendants.


                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )
                                    )          
                                          Civil Action No. 98-1232 (TPJ)








                                          Civil Action No. 98-1233 (TPJ)


                            FINAL JUDGMENT

        Plaintiff, United States of America, having filed its complaint herein on May 18,
        1998;

        Plaintiff States, having filed their complaint herein on the same day;

        Defendant Microsoft Corporation ("Microsoft") having appeared and filed its
        answer to such complaints;

             The Court having jurisdiction of the parties hereto and of the subject
        matter hereof and having conducted a trial thereon and entered Findings of Fact
        on November 5, 1999, and Conclusions of Law on April 3, 2000;

             The Court having entered judgment in accordance with the Findings of
        Fact and the Conclusions of Law on April 3, 2000, that Microsoft has violated
        §§ 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2, as well as the following state
        law provisions: Cal Bus. & Prof. Code §§ 16720, 16726, 16727, 17200; Conn.
        Gen. Stat. §§ 35-26, 35-27, 35-29; D.C. Code §§ 28-4502, 28-4503; Fla. Stat.
        chs. 501.204(1), 542.18, 542.19; 740 Ill. Comp. Stat. ch. 10/3; Iowa Code           §
        553.4, 553.5; Kan. Stat. §§ 50-101 et seq.; Ky. Rev. Stat. §§ 367.170, 367.175;
        La. Rev. Stat. §§ 51:122, 51:123, 51:1405; Md. Com. Law II Code Ann.           §
        11-204; Mass. Gen. Laws ch. 93A, § 2; Mich. Comp. Laws §§ 445.772,
        445.773; Minn. Stat. § 325D.52; N.M. Stat. §§ 57-1-1, 57-1-2; N.Y. Gen. Bus.
        Law § 340; N.C. Gen. Stat. §§ 75-1.1, 75-2.1; Ohio Rev. Code §§ 1331.01,
        1331.02; Utah Code § 76-10-914; W.Va. Code §§ 47-18-3, 47-18-4; Wis. Stat.
        § 133.03(1)-(2); and

             Upon the record at trial and all prior and subsequent proceedings herein, it
        is this __7th___ day of June, 2000, hereby:

             ORDERED, ADJUDGED, AND DECREED as follows:

          1.Divestiture

               a.Not later than four months after entry of this Final Judgment,
                  Microsoft shall submit to the Court and the Plaintiffs a proposed
                  plan of divestiture. The Plaintiffs shall submit any objections to the
                  proposed plan of divestiture to the Court within 60 days of receipt
                  of the plan, and Microsoft shall submit its response within 30 days
                  of receipt of the plaintiffs' objections.

               b.Following approval of a final plan of divestiture by the Court (the
                  "Plan")(1) (and the expiration of the stay pending appeal set forth in
                  section 6.a), Microsoft shall implement such Plan.

               c.The Plan shall provide for the completion, within 12 months of the
                  expiration of the stay pending appeal set forth in section 6.a., of the
                  following steps:

                     i.The separation of the Operating Systems Business from the
                       Applications Business, and the transfer of the assets of one
                       of them (the "Separated Business") to a separate entity
                       along with (a) all personnel, systems, and other tangible and
                       intangible assets (including Intellectual Property) used to
                       develop, produce, distribute, market, promote, sell, license
                       and support the products and services of the Separated
                       Business, and (b) such other assets as are necessary to
                       operate the Separated Business as an independent and
                       economically viable entity.

                    ii.Intellectual Property that is used both in a product
                       developed, distributed, or sold by the Applications Business
                       and in a product developed, distributed, or sold by the
                       Operating Systems Business as of April 27, 2000, shall be
                       assigned to the Applications Business, and the Operating
                       Systems Business shall be granted a perpetual, royalty-free
                       license to license and distribute such Intellectual Property in
                       its products, and, except with respect to such Intellectual
                       Property related to the Internet browser, to develop, license
                       and distribute modified or derivative versions of such
                       Intellectual Property, provided that the Operating Systems
                       Business does not grant rights to such versions to the
                       Applications Business. In the case of such Intellectual
                       Property that is related to the Internet browser, the license
                       shall not grant the Operating Systems Business any right to
                       develop, license, or distribute modified or derivative versions
                       of the Internet browser.

                    iii.The transfer of ownership of the Separated Business by
                       means of a distribution of stock of the Separated Business
                       to Non-Covered Shareholders of Microsoft, or by other
                       disposition that does not result in a Covered Shareholder
                       owning stock in both the Separated Business and the
                       Remaining Business.

               d.Until Implementation of the Plan, Microsoft shall:

                     i.preserve, maintain, and operate the Operating Systems
                       Business and the Applications Business as ongoing,
                       economically viable businesses, with management, sales,
                       products, and operations of each business held as separate,
                       distinct and apart from one another as they were on April
                       27, 2000, except to provide the accounting, management,
                       and information services or other necessary support
                       functions provided by Microsoft prior to the entry of this
                       Final Judgment;

                    ii.use all reasonable efforts to maintain and increase the sales
                       and revenues of both the products produced or sold by the
                       Operating Systems Business and those produced or sold by
                       the Applications Business prior to the Implementation of the
                       Plan and to support research and development and business
                       development efforts of both the Operating Systems
                       Business and the Applications Business;

                    iii.take no action that undermines, frustrates, interferes with, or
                       makes more difficult the divestiture required by this Final
                       Judgment without the prior approval of the Court; and

                    iv.file a report with the Court 90 days after entry of this Final
                       Judgment on the steps Microsoft has taken to comply with
                       the requirements of this section 1.d.

          2.Provisions Implementing Divestiture

               a.After Implementation of the Plan, and throughout the term of this
                  Final Judgment, neither the Operating Systems Business nor the
                  Applications Business, nor any member of their respective Boards
                  of Directors, shall acquire any securities or assets of the other
                  Business; no Covered Shareholder holding securities of either the
                  Operating Systems Business or the Applications Business shall
                  acquire any securities or assets of or shall be an officer, director,
                  or employee of the other Business; and no person who is an
                  officer, director, or employee of the Operating Systems Business
                  or the Applications Business shall be an officer, director, or
                  employee of the other Business.

               b.After Implementation of the Plan and throughout the term of this
                  Final Judgment, the Operating Systems Business and the
                  Applications Business shall be prohibited from:

                     i.merging or otherwise recombining, or entering into any joint
                       venture with one another;

                    ii.entering into any Agreement with one another under which
                       one of the Businesses develops, sells, licenses for sale or
                       distribution, or distributes products or services (other than
                       the technologies referred to in the following sentence)
                       developed, sold, licensed, or distributed by the other
                       Business;

                    iii.providing to the other any APIs, Technical Information,
                       Communications Interfaces, or technical information that is
                       not simultaneously published, disclosed, or made readily
                       available to ISVs, IHVs, and OEMs; and

                    iv.licensing, selling or otherwise providing to the other
                       Business any product or service on terms more favorable
                       than those available to any similarly situated third party.

                       Section 2.b.ii shall not prohibit the Operating Systems
                       Business and the Applications Business from licensing
                       technologies (other than Middleware Products) to each
                       other for use in each others' products or services provided
                       that such technology (i) is not and has not been separately
                       sold, licensed, or offered as a product, and (ii) is licensed on
                       terms that are otherwise consistent with this Final
                       Judgment.

               c.Three months after Implementation of the Plan and once every
                  three months thereafter throughout the term of this Final Judgment,
                  the Operating Systems Business and the Applications Business
                  shall file with the Plaintiffs a copy of each Agreement (and a
                  memorandum describing each oral Agreement) entered into
                  between them.

               d.Throughout the term of this Final Judgment, Microsoft, the
                  Operating Systems Business and the Applications Business shall
                  be prohibited from taking adverse action against any person or
                  entity in whole or in part because such person or entity provided
                  evidence in this case.

               e.The obligations and restrictions set forth in sections 3 and 4 herein
                  shall, after the Implementation of the Plan, apply only to the
                  Operating Systems Business.

          3.Provisions In Effect Until Full Implementation of the Plan of Divestiture .
             The provisions in this section 3 shall remain in effect until the earlier of
             three years after the Implementation of the Plan or the expiration of the
             term of this Final Judgment.

               a.OEM Relations.

                     i.Ban on Adverse Actions for Supporting Competing
                       Products. Microsoft shall not take or threaten any action
                       adversely affecting any OEM (including but not limited to
                       giving or withholding any consideration such as licensing
                       terms; discounts; technical, marketing, and sales support;
                       enabling programs; product information; technical
                       information; information about future plans; developer tools
                       or developer support; hardware certification; and permission
                       to display trademarks or logos) based directly or indirectly,
                       in whole or in part, on any actual or contemplated action by
                       that OEM:

                         1.to use, distribute, promote, license, develop, produce
                            or sell any product or service that competes with any
                            Microsoft product or service; or

                         2.to exercise any of the options or alternatives provided
                            under this Final Judgment.

                    ii.Uniform Terms for Windows Operating System Products
                       Licensed to Covered OEMs. Microsoft shall license
                       Windows Operating System Products to Covered OEMs
                       pursuant to uniform license agreements with uniform terms
                       and conditions and shall not employ market development
                       allowances or discounts in connection with Windows
                       Operating System Products. Without limiting the foregoing,
                       Microsoft shall charge each Covered OEM the applicable
                       royalty for Windows Operating System Products as set
                       forth on a schedule, to be established by Microsoft and
                       published on a web site accessible to plaintiffs and all
                       Covered OEMs , that provides for uniform royalties for
                       Windows Operating System Products, except that ­

                         1.the schedule may specify different royalties for
                            different language versions, and

                         2.the schedule may specify reasonable volume
                            discounts based upon actual volume of total
                            shipments of Windows Operating System Products.

                       Without limiting the foregoing, Microsoft shall afford
                       Covered OEMs equal access to licensing terms; discounts;
                       technical, marketing, and sales support; product information;
                       technical information; information about future plans;
                       developer tools or developer support; hardware certification;
                       and permission to display trademarks or logos. The
                       foregoing requirement insofar as it relates to access to
                       technical information and information about future plans
                       shall not apply to any bona fide joint development effort by
                       Microsoft and a Covered OEM with respect to confidential
                       matters within the scope of that effort. Microsoft shall not
                       terminate a Covered OEM's license for a Windows
                       Operating System Product without having first given the
                       Covered OEM written notice of the reason for the proposed
                       termination and not less than thirty days' opportunity to cure.
                       Microsoft shall not enforce any provision in any Agreement
                       with a Covered OEM that is inconsistent with this Final
                       Judgment.

                    iii.OEM Flexibility in Product Configuration. Microsoft shall
                       not restrict (by contract or otherwise, including but not
                       limited to granting or withholding consideration) an OEM
                       from modifying the boot sequence, startup folder, internet
                       connection wizard, desktop, preferences, favorites, start
                       page, first screen, or other aspect of a Windows Operating
                       System Product to ­

                         1.include a registration sequence to obtain subscription
                            or other information from the user;

                         2.display icons of or otherwise feature other products
                            or services, regardless of the size or shape of such
                            icons or features, or to remove the icons, folders,
                            start menu entries, or favorites of Microsoft products
                            or services;

                         3.display any user interfaces, provided that an icon is
                            also displayed that allows the user to access the
                            Windows user interface; or

                         4.launch automatically any non-Microsoft Middleware,
                            Operating System or application, offer its own
                            Internet access provider or other start-up sequence,
                            or offer an option to make non-Microsoft
                            Middleware the Default Middleware and to remove
                            the means of End-User Access for Microsoft's
                            Middleware Product.

               b.Disclosure of APIs, Communications Interfaces and Technical
                  Information. Microsoft shall disclose to ISVs, IHVs, and OEMs in
                  a Timely Manner, in whatever media Microsoft disseminates such
                  information to its own personnel, all APIs, Technical Information
                  and Communications Interfaces that Microsoft employs to enable ­

                     i.Microsoft applications to interoperate with Microsoft
                       Platform Software installed on the same Personal
                       Computer, or

                    ii.a Microsoft Middleware Product to interoperate with
                       Windows Operating System software (or Middleware
                       distributed with such Operating System) installed on the
                       same Personal Computer, or

                    iii.any Microsoft software installed on one computer (including
                       but not limited to server Operating Systems and operating
                       systems for handheld devices) to interoperate with a
                       Windows Operating System (or Middleware distributed with
                       such Operating System) installed on a Personal Computer.

                  To facilitate compliance, and monitoring of compliance, with the
                  foregoing, Microsoft shall create a secure facility where qualified
                  representatives of OEMs, ISVs, and IHVs shall be permitted to
                  study, interrogate and interact with relevant and necessary portions
                  of the source code and any related documentation of Microsoft
                  Platform Software for the sole purpose of enabling their products
                  to interoperate effectively with Microsoft Platform Software
                  (including exercising any of the options in section 3.a.iii).

               c.Knowing Interference with Performance. Microsoft shall not take
                  any action that it knows will interfere with or degrade the
                  performance of any non-Microsoft Middleware when
                  interoperating with any Windows Operating System Product
                  without notifying the supplier of such non-Microsoft Middleware in
                  writing that Microsoft intends to take such action, Microsoft's
                  reasons for taking the action, and any ways known to Microsoft
                  for the supplier to avoid or reduce interference with, or the
                  degrading of, the performance of the supplier's Middleware.

               d.Developer Relations. Microsoft shall not take or threaten any
                  action affecting any ISV or IHV (including but not limited to giving
                  or withholding any consideration such as licensing terms; discounts;
                  technical, marketing, and sales support; enabling programs; product
                  information; technical information; information about future plans;
                  developer tools or developer support; hardware certification; and
                  permission to display trademarks or logos) based directly or
                  indirectly, in whole or in part, on any actual or contemplated action
                  by that ISV or IHV to ­

                     i.use, distribute, promote or support any Microsoft product or
                       service, or

                    ii.develop, use, distribute, promote or support software that
                       runs on non-Microsoft Middleware or a non-Microsoft
                       Operating System or that competes with any Microsoft
                       product or service, or

                    iii.exercise any of the options or alternatives provided under
                       this Final Judgment.

               e.Ban on Exclusive Dealing. Microsoft shall not enter into or enforce
                  any Agreement in which a third party agrees, or is offered or
                  granted consideration, to ­

                     i.restrict its development, production, distribution, promotion
                       or use of, or payment for, any non-Microsoft Platform
                       Software,

                    ii.distribute, promote or use any Microsoft Platform Software
                       exclusively,

                    iii.degrade the performance of any non-Microsoft Platform
                       Software, or

                    iv.in the case of an agreement with an Internet access
                       provider or Internet content provider, distribute, promote or
                       use Microsoft software in exchange for placement with
                       respect to any aspect of a Windows Operating System
                       Product.

               f.Ban on Contractual Tying. Microsoft shall not condition the
                  granting of a Windows Operating System Product license, or the
                  terms or administration of such license, on an OEM or other
                  licensee agreeing to license, promote, or distribute any other
                  Microsoft software product that Microsoft distributes separately
                  from the Windows Operating System Product in the retail channel
                  or through Internet access providers, Internet content providers,
                  ISVs or OEMs, whether or not for a separate or positive price.

               g.Restriction on Binding Middleware Products to Operating System
                  Products. Microsoft shall not, in any Operating System Product
                  distributed six or more months after the effective date of this Final
                  Judgment, Bind any Middleware Product to a Windows Operating
                  System unless:

                     i.Microsoft also offers an otherwise identical version of that
                       Operating System Product in which all means of End-User
                       Access to that Middleware Product can readily be removed
                       (a) by OEMs as part of standard OEM preinstallation kits
                       and (b) by end users using add-remove utilities readily
                       accessible in the initial boot process and from the Windows
                       desktop; and

                    ii.when an OEM removes End-User Access to a Middleware
                       Product from any Personal Computer on which Windows is
                       preinstalled, the royalty paid by that OEM for that copy of
                       Windows is reduced in an amount not less than the product
                       of the otherwise applicable royalty and the ratio of the
                       number of amount in bytes of binary code of (a) the
                       Middleware Product as distributed separately from a
                       Windows Operating System Product to (b) the applicable
                       version of Windows.

               h.Agreements Limiting Competition. Microsoft shall not offer, agree
                  to provide, or provide any consideration to any actual or potential
                  Platform Software competitor in exchange for such competitor's
                  agreeing to refrain or refraining in whole or in part from
                  developing, licensing, promoting or distributing any Operating
                  System Product or Middleware Product competitive with any
                  Windows Operating System Product or Middleware Product.

                i.Continued Licensing of Predecessor Version. Microsoft shall,
                  when it makes a major Windows Operating System Product
                  release (such as Windows 95, OSR 2.0, OSR 2.5, Windows 98,
                  Windows 2000 Professional, Windows "Millennium," "Whistler,"
                  "Blackcomb," and successors to these), continue for three years
                  after said release to license on the same terms and conditions the
                  previous Windows Operating System Product to any OEM that
                  desires such a license. The net royalty rate for the previous
                  Windows Operating System Product shall be no more than the
                  average royalty paid by the OEM for such Product prior to the
                  release. The OEM shall be free to market Personal Computers in
                  which it preinstalls such an Operating System Product in the same
                  manner in which it markets Personal Computers preinstalled with
                  other Windows Operating System Products.

          4.Internal Antitrust Compliance. This section shall remain in effect
             throughout the term of this Final Judgment, provided that, consistent with
             section 2.e, this section shall not apply to the Applications Business after
             the Implementation of the Plan.

               a.Within 90 days after the effective date of this Final Judgment,
                  Microsoft shall establish a Compliance Committee of its corporate
                  Board of Directors, consisting of not fewer than three members of
                  the Board of Directors who are not present or former employees
                  of Microsoft.

               b.The Compliance Committee shall hire a Chief Compliance Officer,
                  who shall report directly to the Compliance Committee and to the
                  Chief Executive Officer of Microsoft.

               c.The Chief Compliance Officer shall be responsible for
                  development and supervision of Microsoft's internal programs to
                  ensure compliance with the antitrust laws and this Final Judgment.

               d.Micr