Surprise Nominee for Microsoft Case Mediator: Clinton

California’s attorney general has suggested that the Bush administration appoint an unorthodox candidate to mediate settlement talks in the ongoing antitrust case against Microsoft Corp.: former President Bill Clinton.

Bill Lockyer floated the idea, which immediately met strong resistance, in a letter sent Wednesday to U.S. Atty. Gen. John Ashcroft.

In the letter, a copy of which was obtained by The Times, Lockyer described Clinton as “uniquely qualified and capable of assisting the parties to identify an appropriate resolution to our case, if possible.” Lockyer also cited Clinton’s background in international negotiations and grasp of information technology and economic issues.

Lockyer could not be reached. Officials at the U.S. Justice Department declined to comment.

The proposal encountered instant opposition from officials in some of the 17 states that joined California and the Justice Department in suing Microsoft for violations of antitrust law.

“It became clear that there’s no consensus that we move forward on that,” said Iowa Atty. Gen. Tom Miller, who has been coordinating the coalition of states. “That’s not moving forward.”

Miller declined to say what prompted the objections. But others working for the states on the landmark case portrayed Clinton as a polarizing personality.

Lockyer has not spoken to Clinton about the idea and has not received a response from Ashcroft, said Chief Deputy Atty. Gen. Peter Siggins.

“We will continue to litigate the case, but at the same time we think it’s worth trying to talk about resolving it,” Siggins said. “It obviously would help to have someone of [Clinton’s] stature and experience.”

Some Microsoft supporters said they were perplexed by Lockyer’s recommendation.

“Given that it was his administration [that] brought the case, it seems like a strange suggestion,” said Jonathan Zuck, president of the Assn. for Competitive Technology, a trade group closely aligned with Microsoft. “I really don’t even know how to react.”

Another member of the states’ team noted that Clinton would bring little technical expertise to the case.

“The real problem is coming up with language” in a consent decree, said the official, who declined to be identified. “You can produce something that sounds really good, but with loopholes you could drive a truck through.”

Clinton, who resides in New York with his wife, Sen. Hillary Rodham Clinton, also could not be reached. In January, the former president agreed to surrender his Arkansas law license for five years, avoiding possible prosecution for giving false statements about his affair with former White House intern Monica Lewinsky.

Apart from any controversy that would surround any Clinton involvement, some antitrust officials said a new attempt at mediation should wait until some of the current legal issues are resolved.

“The case is not ready for mediation,” said one attorney for the states.

The previous mediator, Chief Justice Richard Posner of the U.S. Circuit Court of Appeals in Chicago, gave up in March 2000 after several months of hard-fought negotiations.

As attorney general for the largest state involved in the Microsoft case, Lockyer’s views are considered important. But until now, he has been less visible than other state officials.

Lockyer’s proposal comes during a period of transition in the lawsuit. A new Justice Department point man was named to oversee the case last week, after a federal appeals court in June upheld a lower court finding that Microsoft acted illegally to maintain its monopoly over personal computer operating systems.

The appellate court called for new hearings on other antitrust issues and on appropriate punishment. The Times reported on Friday that the states and federal authorities are considering whether to drop the remaining claims on the extent of Microsoft’s misconduct and move on to consideration of penalties.

And Microsoft has asked the appeals court to reconsider part of last month’s ruling, saying it may also ask the U.S. Supreme Court to step in.

Meanwhile, Microsoft is hoping to avoid a successful challenge to the August distribution of code for its new operating system, Windows XP. That program bundles different functions including instant-messaging and video players and could run afoul of the appeals court’s findings.