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• • 108 Microsoft Settles Legal Dispute With Gateway for $150 Million
• • April 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 software.
• •
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 software.
• •
As part of the settlement announced Monday, Gateway will release all antitrust claims against Microsoft based on past conduct. Microsoft has denied any wrongdoing.
• •
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 hurdles.
• •
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.
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Microsoft also has been sued by Seattle-based RealNetworks and is currently appealing a more than $600-million European Union antitrust ruling against it.
• •
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 Software
• •
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 software components.
• •
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 software components.
• •
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 illegitimate software."
• •
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.
• •
///

ByLines: Editors Note

More Articles • Converging News 162005 / TeleCom Buy Outs and Asset Seizure Boom

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