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Caldera takes on Goliath
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July 29, 1998: 6:41 p.m. ET
Little-known software company scores win in case against Microsoft
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NEW YORK (CNNfn) - A small Utah software company many have never heard of may end up helping the Justice Department in its antitrust battle against Microsoft Corp.
Caldera Inc. won a victory Wednesday from U.S. Magistrate Ron Boyce, who ordered Microsoft to disclose its source code for Windows 95, DOS and Windows 3.1 to the company.
Source code is the actual programming instructions that make an operating system, or any other program, function.
The source code is being turned over to Caldera attorneys only for use in its case against Microsoft. Caldera cannot use the source code to modify any of its products.
Caldera President and Chief Executive Officer Bryan Sparks believes Microsoft is violating antitrust laws by tying its version of DOS with all the versions of Windows on the market.
He wants a judge to order Microsoft to ship versions of Windows containing Caldera's DR-DOS, or a compatible product from any other company.
"We believe Windows 95 … is essentially Windows 4.0 with DOS 7. They only offer Windows 95 to [computer makers] when in fact an alternative DOS runs perfectly well underneath," Sparks said.
Caldera also alleges that Microsoft (MSFT) intentionally included code in Windows 95 that makes it impossible to run a competing version of DOS under the operating system.
Caldera Inc. develops and sells a variety of operating systems and software used by businesses to link their equipment to the Internet and other networks.
Two years ago, after purchasing the DR-DOS operating system from Novell Inc., the company sued Microsoft, alleging the way it marketed its MS-DOS violated antitrust laws.
Caldera's DR-DOS is used in a variety of devices including packaging tracking systems, point-of-sale terminals and entertainment systems.
The privately held company is seeking unspecified damages from Microsoft and also wants the software giant to change the way it licenses operating systems to allow consumers to have alternatives.
Sparks said the judge's ruling gives him more confidence Caldera will prevail in its case, which is scheduled to go to trial in June 1999.
He also believes Caldera's case is having an indirect effect on the Justice Department's battle against Microsoft.
"When we filed our case, we were the lone men in the wilderness complaining. Having this become public is good.
"The other benefit is if we're successful in proving Microsoft is a monopoly with monopoly power, that goes a long way to help the DOJ in their case. If we can prove they use that power to maintain a monopoly, that can have a cascade effect," he said.
--by staff writer Cyrus Afzali
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Caldera
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