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MSFT seeks court review
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July 18, 2001: 5:38 p.m. ET
Software company asks for Appeals Court to review key adverse finding
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NEW YORK (CNNfn) - Microsoft Corp. filed a brief with the U.S. District Court of Appeals Wednesday, hoping to overturn the court's finding that the software company commingled Web browsing code with its Windows operating systems.
According to experts, such a move indicates Microsoft's desire for the Supreme Court to review the Appeals Court's decision.
Microsoft (MSFT: Research, Estimates) argued that the Justice Department's witnesses did not back up the government's assertion in its antitrust case that Microsoft used the same software to do different things in order to further its operating system monopoly.
"A detailed analysis of the factual record discloses that the district court's finding that Microsoft engaged in unjustified 'commingling' of software code is clearly erroneous," the company wrote in its filing.
"The Court's ruling with regard to 'commingling' of software code is important because it might be read to suggest that (computer manufacturers) should be given the option of removing the software code in Windows 98 (if any) that is specific to Web browsing," the company said.
Microsoft spokesman Vivek Varma said the petition was "a good-faith attempt to seek clarification," and should not be read as an unwillingness to settle the landmark antitrust case out of court.
Leading antitrust lawyer Seve Axxin said asking the Court to reverse itself on a key adverse decision is "clearly hopeless."
Both Axxin and antitrust lawyer Kevin Arquit said such a move indicates the desire of the company to seek Supreme Court review of the Court of Appeals ruling.
On June 28, the Court overturned a lower court's ruling that Microsoft be broken into two companies as a remedy for anti-competitive practices, and remanded other parts of the judge's decision back to the lower court for consideration by a different judge.
According to a published report Monday, Microsoft approached antitrust chief Charles James last week with a new settlement proposal.
Shares of Microsoft fell 35 cents to $70.22 after hours. 
-- from staff and wire reports
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