[Am-info] (no subject)

Joe Barr warthawg@austin.rr.com
08 Nov 2002 17:03:52 -0600


I've just gone over the redlined third revised proposed settlement.  It
appears that MS East/MS West have incorporated the judge's request for
sua sponte power over the process, but ignored her expansion of
prohibited acts to classes of behavior rather than simply specific acts.

Am I missing something?



On Fri, 2002-11-08 at 16:56, Mitch Stone wrote:
> http://story.news.yahoo.com/news?tmpl=3Dstory&u=3D/ap/20021108/ap_on_hi_t=
e/=20
> microsoft_7
>=20
> Microsoft Picks 3 for Watchdog Panel
>=20
> By TED BRIDIS, Associated Press Writer
>=20
> 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.
>=20
>=20
> 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).
>=20
> 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.
>=20
> 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.
>=20
> 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.
>=20
> 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.
>=20
> 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.
>=20
> 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.
>=20
> 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."
>=20
> 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.
>=20
> Korologos is currently a senior adviser with Benedetto Gartland & Co. =20
> Inc., a private investment banking company, according to Microsoft's =20
> records.
>=20
> 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.
>=20
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