Microsoft OKs deal changes
Software maker agrees to revisions to settlement to refute criticism deal is too lenient.
February 28, 2002: 12:45 p.m. ET
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NEW YORK (CNN/Money) - Microsoft Corp. and the Justice Department have agreed to change their proposed settlement of the government's antitrust case against the software maker, as the two sides try to answer criticism of the deal.
In a filing with the U.S. District Court in Washington, D.C., the company and department said the changes, with one exception, do not change the meaning of the proposed settlement, but that they should help close what critics said were loopholes in the earlier proposal.
One change drops a provision, which Microsoft had sought, that critics had charged would allow the dominant maker of personal computer software to misappropriate the computer hardware patents of companies who win access to Microsoft's computer code as part of the agreement.
"Microsoft continues to believe that the provision was reasonable and justified, but in the interests of eliminating confusion and facilitating the expeditious entry of the decree, Microsoft has consented to the removal of (the section)," the company said in a court filing.
The company also agreed to language to clarify Microsoft communication protocols that must be made available to other companies under the proposed settlement.
"The critics speciously argue that Microsoft will refuse to make available all (or perhaps any) of its communication protocols on the ground that those proprietary protocols are not necessary to 'interoperate' with Windows operating system product," the Microsoft filing said. "This argument is belied by the plain language of (proposed settlement.)"
But Microsoft said it agreed to new language in the section to "make crystal clear what is now clear."
The revisions to the deal are an attempt by the software maker to refute criticism from the attorneys general of nine of the 18 states that had filed their own antitrust action against the company, and who continue to contest its business practices.
The move came the day after Microsoft asked Judge Colleen Kollar-Kotelly, who is overseeing the case, to dismiss the case brought by the nine states that have not joined the proposed settlement. Kollar-Kotelly is weighing whether to accept the proposed agreement between Microsoft and Justice.
Microsoft (MSFT: up $0.97 to $59.36, Research, Estimates) stock rose in afternoon trading Thursday following the filing. 
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