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Justice wants Gates
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July 31, 1998: 8:17 p.m. ET
Government seeks extensive depositions from software chief
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NEW YORK (CNNfn) - The Justice Department went to court Friday seeking to force Microsoft Corp. to relinquish the source code for its Windows 95 and 98 operating systems and to make Chairman Bill Gates available for two days of depositions.
In the motion, filed late Friday in U.S. District Court for the District of Columbia, the government also alleges the company has not adequately cooperated with antitrust officials investigating Microsoft's business practices.
Investigators want source code
The Justice Department on June 17 formally requested Microsoft to produce source code files of Windows 95 and 98 as well as other documents that would help government investigators understand the files.
The government said Microsoft (MSFT) rejected that request, claiming it was "burdensome, irrelevant and required disclosure of 'extremely confidential, highly sensitive trade secrets.'"
Moreover, the government said Microsoft wants to prohibit any government expert who views the source code from working on any project for a rival software firm for a period of 12 to 18 months - a condition the government calls oppressive.
Source code is the actual programming instructions that comprise the operating system.
The government said it needs the source code to determine whether Microsoft's claims that the operating system and Internet Explorer Web browser are integrated and cannot be separated are true. Justice has accused the company of illegally tying the two products together.
Responding to Microsoft's claims that source code contains trade secrets and other sensitive and confidential information, the government said Microsoft should have requested additional protections from the court if it felt they were necessary.
It also points out that Microsoft lost a similar effort to keep from turning over its source code in connection with a lawsuit filed by Caldera Inc.
Earlier this week, a Utah judge ordered the company to turn over source code to Caldera attorneys in connection with a separate lawsuit in which the company accuses Microsoft of illegally tying its DOS operating system with Windows 3.1, 95 and 98.
That case is set to go to trial next year.
Government asks for Gates, executives
On July 14, the government also requested Microsoft Chairman and Chief Executive Officer Bill Gates give two days of depositions. U.S. District Judge Thomas Penfield Jackson is set to hear the case in early September.
Microsoft has so far only offered to provide Gates for no more than eight hours on Aug. 12.
Microsoft spokesman Greg Shaw said the company believes eight hours is "more than adequate" because it's longer than Netscape Communications Corp. (NSCP) Chairman James Barksdale or Sun Microsystems Inc. (SUNW) Chairman Scott McNealy spent testifying.
In addition, the government wants testimony from 15 other unnamed Microsoft employees.
In the motion, the government charges Microsoft has refused to allow more than seven depositions from Microsoft employees other than Gates and President Steven Ballmer.
"Microsoft cannot justify limiting the deposition of Mr. Gates... to a mere eight hours. Full access to Mr. Gates is necessary for plaintiffs to prepare their case. Mr. Gates has personal knowledge about every aspect of this matter which cannot be obtained through other sources."
News of the filing came after the close of trading Friday. Microsoft shares fell 3-1/2 to 109-15/16 Friday, reflecting a broad decline on Nasdaq and the New York Stock Exchange.
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