Microsoft Hearings Urged to Begin Feb. 4

Court hearings on restricting Microsoft Corp.’s business practices would begin about three months after the company releases its Windows XP operating system, under a schedule proposed by the government.

The Justice Department and 18 states urged a federal judge Thursday to start remedy hearings Feb. 4. Windows XP, the latest version of the operating system that powers 95% of the world’s personal computers, is scheduled for release by Microsoft on Oct. 25.

Antitrust enforcers have said they might seek changes in XP to prevent Microsoft from consolidating its Windows monopoly.

The government’s “leisurely paced program” probably means Windows XP “gets a free ride,” said Ernest Gellhorn, an antitrust expert at George Mason University law school. Giving Microsoft a nearly three-month lead to introduce XP to consumers will make it hard to install some conditions on it, Gellhorn said.

The world’s largest software company and antitrust enforcers remain divided over the scope of the remedies after an appeals court ruled that Microsoft illegally protected its Windows monopoly, according to a report submitted by both sides in the case.

Both sides said they will continue private talks seeking an out-of-court settlement, though the opposing lawyers have met only once since the June 28 appeals court decision.

Separately on Thursday, Microsoft said it is broadening its Passport Internet Identification service to give businesses more control over their users’ accounts, a move the company hopes will ease concerns about privacy.

Microsoft has come under fire for Passport, a program that lets users store personal data to avoid reentering it on participating Web sites.

Some privacy advocates have balked at the idea of Microsoft becoming a central repository for information such as credit card numbers, ages and addresses.

The Redmond, Wash.-based software giant wants to create an “Internet trust network” in which businesses and online service providers will be able to use their own log-in systems to let people use Passport services, spokesman Brian Arbogast said. The companies may then use the system to share data.

Microsoft shares fell $3.11 to close at $50.76 on Nasdaq.