Microsoft Judge Orders Talks
The new judge in the Microsoft Corp. antitrust case ordered the software giant and government prosecutors into another round of settlement talks, saying she expects both sides to negotiate seven days a week around the clock.
“I think this case should be settled, and this is the optimal time to do that,” said U.S. District Judge Colleen Kollar-Kotelly at a hearing Friday, the first formal proceeding in the case since February.
She gave the parties until Nov. 2 to reach a settlement and said there would be no extensions. If an agreement is not reached by then, a trial to determine how Microsoft should be punished will begin March 11, the judge said.
The new trial was ordered June 28 by a federal appeals court, which found that the Redmond, Wash.-based software company broke antitrust laws by using its monopoly over operating systems to bully computer makers and undercut rivals.
Chances of a settlement in the long-running case are slim, most agree. Both sides continue to spar over a litany of issues, big and small, ranging from how severely Microsoft should be punished to how many witnesses should be called to testify during the trial (Microsoft wants seven; the government, 10).
“You didn’t agree on a lot,” Kollar-Kotelly said, referring to the parties’ inability in recent weeks to even agree on a time schedule for proceedings.
Kollar-Kotelly also rebuffed Microsoft’s request that she narrow the scope of any potential remedies sought by the government, saying such a move would be premature.
Charles James, head of the Justice Department’s antitrust division, said after the hearing that the government will endeavor to settle the case, as the judge ordered, but he declined to speculate on the likelihood of an out-of-court settlement.
“We’re looking forward to meaningful discussions and hope they will be successful,” James said.
Microsoft attorneys left the courtroom without commenting.
The company has asked the Supreme Court to grant it a new trial, arguing that the previous judge acted improperly. The high court is expected to announce shortly whether it will hear the case.
Friday’s hearing at U.S. District Court in Washington marked the first face-off between two new high-profile litigators hired by both sides to take over the case.
Representing the Justice Department is Philip Beck, a Chicago attorney who represented President Bush during the election standoff in Florida last year. And newly added to the Microsoft table is Dan K. Webb, also of Chicago, who prosecuted Adm. John Poindexter in the Iran-Contra scandal.
It also was the first glimpse of Kollar-Kotelly, who inherited the complex case after a random lottery determined that she would replace U.S. District Judge Thomas Penfield Jackson, who was disqualified for improperly discussing the case with reporters.
If settlement talks fail, Kollar-Kotelly ordered the government to submit its proposed remedy by Dec. 7. Microsoft has until Dec. 12 to submit an alternative plan.
Kollar-Kotelly showed little sympathy for Microsoft’s pleas for more time to prepare, noting that both sides have requested that a total of 28 attorneys be approved to appear in her courtroom.
“It sounds like you have more than enough resources,” the judge said. “If you don’t wish to use those resources, settle the case.”
