Microsoft settles suits for $1.1 billion


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REDMOND, Wash., Jan. 10 ? Microsoft Corp. said Friday that it had settled a number of class-action lawsuits filed in the state of California for $1.1 billion that will return money to consumers in the form of vouchers to buy computers and computer-related items.

THE SOFTWARE GIANT said that it settled the lawsuit with the law firm of Townsend and Townsend and Crew LLP, lead counsel for a series of lawsuits filed by California consumers.

(MSNBC is a Microsoft-NBC joint venture.)

California consumers and businesses who bought Microsoft?s operating system, productivity suite, spreadsheet or word processing software between Feb. 18, 1995, and Dec. 15, 2001, will receive vouchers to buy ?any manufacturer?s desktop, laptop and tablet computers, any software used with those computer products and specified peripheral devices for use with computers,? Microsoft said.

Two-thirds of any unclaimed settlement proceeds will be donated to California?s public schools to be used for Microsoft software, as well as to buy computer equipment and non-Microsoft software.

?Coming at a time when California is in the middle of a significant budget crisis, these funds and software will help to ensure that California?s schoolchildren get technology they can use,? Jack O?Connell, the state?s superintendent of public instruction, said in the Microsoft statement.

OTHER CASES GO FORWARD

The cases are separate from the massive antitrust case filed by the Justice Department and 18 states. In that lawsuit, a federal judge found that Microsoft acted as an illegal monopoly based on its dominance in desktop operating systems. Microsoft ultimately settled, although two states are still appealing.

Other non-related cases, meanwhile, will continue.

U.S. District Judge J. Frederick Motz of Baltimore narrowed Sun Microsystems? private antitrust suit Friday against Microsoft and said he would rule next week on Microsoft?s attempts to drop additional claims. But Motz refused to dismiss antitrust and other claims made by two other companies.

Motz has already approved Sun?s request to require Microsoft?s Windows operating system to include Sun?s latest Java programming language pending resolution of its lawsuit.

Sun contends that Microsoft has gained an unfair advantage by shipping Windows ? used by more than 90 percent of the world?s personal computers ? with an outdated version of Java that is inconsistent for its users.

Motz dismissed two of 16 claims made by Sun, although he said Sun could resubmit the charges with amendments. The two claims deal with monopolization of personal computer operating systems and the Web browser market.

Motz reserved judgment on Microsoft?s attempts to dismiss additional claims, some of which involved allegations of ?tying,? in which a seller with monopoly power over one product uses that power to coerce the purchase of a second product.

Meanwhile, Motz agreed to let lawsuits by Burst.com and defunct software maker Be Inc. proceed. The companies claim that Microsoft used its might to squeeze out an alternative to its Windows operating system as well as technology for streaming video online.

The Associated Press and Reuters contributed to this report.

MSNBC

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