Microsoft Returns Fire at Sun
Microsoft Corp. on Monday raised the stakes in its bitter Java licensing dispute with rival Sun Microsystems Inc., denying the computer maker’s allegations and filing a countersuit in federal court.
Microsoft’s lawsuit, filed in U.S. District Court in San Jose, charges it was Sun that broke the March 1996 agreement to license Sun’s Java programming language, not the other way around.
“Sun has consistently failed to perform its obligations and to show good faith in its dealings with Microsoft,” the computer software giant said in its countersuit. “By its lawsuit, Sun improperly seeks to rewrite the agreement.”
In just more than two years since its release, Java has gained popularity among programmers for its promise to allow a single application to run on multiple platforms without having to be rewritten. That capability poses a threat to the dominance of Microsoft’s Windows system.
After negotiations that lasted several months, Microsoft licensed Java from Sun and began including the technology in its products.
But Sun, the Mountain View-based manufacturer of high-end computer workstations and software, contends Microsoft is shipping altered versions of the technology that favor the Windows platform and undermine the ability of Java programs to run on other platforms. Sun sued on Oct. 7.
“This is a garden-variety tactic. We fully expected this to happen,” said a spokeswoman for Sun’s JavaSoft unit. “It is standard operating procedure in litigation. We will look at and review the complaint when we see it.”
Sun declined to comment specifically on Microsoft’s allegations.
Redmond, Wash.-based Microsoft says its license with Sun differs from that of most other licensing deals in that it allows the software company to determine whether to distribute Java in its entirety, in part or not at all.
Microsoft shares fell $6.50 to $128.88 and Sun fell $3.25 to $34.31 in a day of steep losses on Nasdaq.
Microsoft’s countersuit charges Sun with breach of contract, breach of “the covenant of good faith and fair dealing,” and unfair competition. The company contends Sun broke the contract by failing to deliver Java technology that passes its own tests and failing to provide a public set of compatibility standards.
Microsoft also said Sun intentionally interfered with its business by repeatedly making false statements about the compatibility and desirability of Microsoft’s products and Microsoft’s rights under the agreement.
The company is seeking the right to unilaterally terminate the licensing agreement, the right to continue using the Java trademark, and unspecified monetary damages.
