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Microsoft eyes settlement
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March 22, 1999: 7:34 p.m. ET
Trial in lull, software giant mulls 'good faith' effort after judge calls for talks
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NEW YORK (CNNfn) - Microsoft Corp. said Monday it's ready for a "good faith" effort toward a settlement in the antitrust trial brought by the U.S. government.
Last month, presiding U.S. District Court Judge Thomas Penfield Jackson urged the software giant and the Justice Department to try to work out their differences during the current trial recess.
"We are taking the judge's direction to both parties very seriously," a Microsoft source told Reuters, adding however that no date for talks on a settlement has been set. "We're going to make a good-faith effort to try to resolve these issues without the need for extended additional litigation."
But government officials are taking more of a wait-and-see approach until they get an official initiative from Microsoft.
Joel Klein, assistant attorney general for antitrust affairs, said that Justice has not yet received a proposal about a settlement. But a spokeswoman said the department "has been and always remains open to a settlement."
Richard Blumenthal, attorney general of Connecticut, one of the 19 states participating in the antitrust action, said: "What we need are specifics, a proposal on the table, so we can really evaluate whether Microsoft is serious about settlement talks, or whether it is just using the talk about talk to advance its public relations position, which has suffered grievously during this trial because their case has been so weak."
No settlement is expected before the trial resumes April 12, because the two sides still have major differences on a number of issues, according to press reports Monday. The Wall Street Journal first reported Microsoft's plans to begin settlement talks.
Microsoft's legal team has decided to go forward with settlement talks after meetings with Chairman Bill Gates and other company executives, the Journal reported. Tom Pilla, a Microsoft spokesman, would not confirm that the meeting took place.
But advisers close to Microsoft said the company always has kept the door open to a settlement -- and that Judge Jackson's urging just offered an added push.
"Microsoft has always said it's not in the business of litigating," said Rick Rule, a legal adviser to Microsoft at the law firm Covington & Burling. "We continue to believe Microsoft hasn't done anything to violate the law."
Rule said the company isn't eager to see this case drag on: "Under a best-case scenario, this thing could go on for two more years."
A new effort at a settlement wouldn't be the first. Microsoft led an abortive attempt to find a settlement before the government filed its suit last May.
Justice and the 19 states have accused Microsoft (MSFT) of abusing its monopoly in computer operating systems to stifle competition.
The government argues Microsoft improperly used monopoly power of its market-dominant Windows operating system to carve out larger market share for its Internet Explorer browser, undercutting Netscape 's (NSCP) rival Navigator browser.
Microsoft has been under growing pressure to settle the lawsuit, as prosecutors have made a strong showing in court.
Pilla declined comment on reports that Microsoft would be willing to alter allegedly exclusionary contracts with Internet partners or give personal computer makers more flexibility in adding features to the Windows start-up screen.
But one of the most contentious issues -- the company's practice of adding new features to its Windows operating system, allegedly to target competitors -- may not be up for negotiation.
"We have always said we're willing to work with the government on contract language or other issues -- so long as we can retain our fundamental right to add new features to Windows," a Microsoft spokesman said. 
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