Microsoft Settles Legal Dispute With Gateway for $150
12, 2005 / Microsoft Corp. will pay computer maker Gateway
Inc. $150 million over four years to end a long-running
legal dispute, and Gateway said it would use the money to
market and develop products that run Microsoft
Microsoft Corp. will pay computer maker
Gateway Inc. $150 million over four years to end a
long-running legal dispute, and Gateway said it would use
the money to market and develop products that run Microsoft
As part of the settlement announced
Monday, Gateway will release all antitrust claims against
Microsoft based on past conduct. Microsoft has denied any
To account for the settlement, Redmond,
Wash.-based Microsoft said it would take a $123-million
pretax charge in the quarter ended March 31. The company
also plans to take a pretax charge of $41 million for an
earlier settlement with Burst.com. And it will take an
additional $550-million charge to reserve funds for other
antitrust matters, such as its ongoing legal wrangling with
digital media rival RealNetworks Inc.
The deal marks the latest in a series
of agreements Microsoft has reached to put various antitrust
claims behind it.
Over the last two years, Microsoft has
spent about $3 billion to settle private antitrust lawsuits
filed by Time Warner Inc., Sun Microsystems Inc., Be Inc.
and Novell Inc.
Microsoft still faces some antitrust
The Novell settlement relates to
antitrust claims regarding its NetWare product. Less than a
week after reaching that deal, Novell filed a lawsuit
regarding WordPerfect, a product Novell used to own.
Microsoft also has been sued by
Seattle-based RealNetworks and is currently appealing a more
than $600-million European Union antitrust ruling against
Gateway shares rose 8 cents to $4.16 on
Monday on the New York Stock Exchange. Microsoft shares rose
3 cents to $24.97 on Nasdaq.
Microsoft Sues Over
April 12, 2005 / Microsoft Corp., the
world's largest software maker, said Monday that it was
filing lawsuits against eight computer-system builders and
resellers in California and six other states, accusing them
of distributing counterfeit and unlicensed software and
Microsoft Corp., the world's largest
software maker, said Monday that it was filing lawsuits
against eight computer-system builders and resellers in
California and six other states, accusing them of
distributing counterfeit and unlicensed software and
The lawsuits follow similar action in
November 2004 against eight dealers. Legal amendments in
2003 provide criminal and civil penalties for distributing
software without authenticity certificates.
"Our partners are coming to us and
asking for our help," said Microsoft attorney Bonnie
MacNaughton. "They are being undercut and forced out of
business by having to compete with dishonest PC
manufacturers and resellers who continue to sell
Microsoft said the lawsuits were filed
in California, Florida, Texas, New Jersey, Alabama, Maryland
and Rhode Island.
The lawsuits stem from a program in
which Microsoft acquires software, components or computer
systems from dealers and tests them for authenticity.
The suits name as defendants Abacus
Computer Corp. of Anaheim; Technology One of Los Angeles;
Avantek Inc. of Orlando, Fla.; First E-Commerce of Austin,
Texas; M&S Computer Products Inc. of Boonton, N.J.;
Micro-Excell Inc. of Gadsden, Ala.; Odyssey Computers of
Pasadena, Md.; and Signature PC of Warick, R.I.
Calls to Microsoft, Avantek and M&S
Computers were not returned. Abacus, First E-Commerce,
Micro-Excell, Odyssey, Signature and Technology One couldn't
be reached for comment.
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