[Am-info] (no subject)

[Mitch Stone]

http://story.news.yahoo.com/news?tmpl=3Dstory&u=3D/ap/20021108/ap_on_hi_te=
/=20
microsoft_7

Microsoft Picks 3 for Watchdog Panel

By TED BRIDIS, Associated Press Writer

WASHINGTON (AP) -  Microsoft Corp. took early steps Friday to begin =20
obeying court-approved sanctions in its antitrust case, appointing =20
three of its existing board members to a new committee responsible for =20=

making sure the software maker doesn't break the rules.


The appointments satisfy one requirement that U.S. District Judge =20
Colleen Kollar-Kotelly imposed against Microsoft on behalf of nine =20
states that had rejected a settlement the company negotiated with the =20=

Justice Department (news - web sites).

The judge ordered Microsoft to allow computer makers and customers to =20=

remove icons for some Microsoft features, share some technical =20
information with rivals, agree to uniform contracts with computer =20
makers and agree not to participate in exclusive deals that could hurt =20=

competitors.

The new committee is one of two oversight groups established under the =20=

judge's rulings. The Justice Department and state attorneys general =20
also can file complaints with the judge if Microsoft fails to abide by =20=

the sanctions.

The new committee, led by Harvard University business professor James =20=

I. Cash Jr., 54, of Boston, will hire at an unspecified future date a =20=

compliance officer who will enforce the judge's sanctions.

Microsoft will almost certainly pay that officer's salary, but those =20
financial arrangements and the exact day-to-day responsibilities of the =20=

three-person committee are among "many things that will have to be =20
spelled out," said Brad Smith, Microsoft's general counsel.

The other new committee members are Ann McLaughlin Korologos, 60, of =20
Washington, former Labor secretary under President Reagan; and Raymond =20=

V. Gilmartin, 61, of New Jersey, president and chief executive at Merck =20=

& Co. Inc., one of the nation's largest drug companies. All joined =20
Microsoft's board after January 2000.

As board members, each is paid $35,000 by Microsoft. Last year, they =20
also received options to buy 10,000 shares of Microsoft, according to =20=

Microsoft's securities filings.

In creating the committee, Microsoft's board explicitly acknowledged =20
the additional oversight by the government. Directors said the board =20
"recognizes and appreciates the important roles the Department of =20
Justice (news - web sites) and each of the State Attorneys General will =20=

play in their oversight of Microsoft's compliance."

Under the judge's orders, only board members who were not employees =20
could be appointed to the committee =97 which ruled out Microsoft =20
Chairman Bill Gates (news - web sites), chief executive Steve Ballmer =20=

and former Microsoft President Jon A. Shirley. Microsoft's other board =20=

members are venture-capitalist David F. Marquardt and William G. Reed =20=

Jr., a retired businessman.

Korologos is currently a senior adviser with Benedetto Gartland & Co. =20=

Inc., a private investment banking company, according to Microsoft's =20
records.

Also Friday, the sides agreed to minor changes imposed by the judge to =20=

the antitrust settlement. The changes explicitly give Kollar-Kotelly =20
additional authority to ensure that Microsoft abides by the agreement =20=

over the next five years.