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July 16, 2004 4:57 PM PDT

Microsoft: Sun deal unsigned; feds look at Longhorn

As part of Microsoft's settlement with Sun Microsystems, Sun agreed to take part in a licensing program under which Microsoft gives rivals access to various Windows communications protocols. However, Sun's check is apparently still in the mail.

In a court filing late last week, Microsoft noted that the two companies have not signed off on a contract, nor has Sun made a necessary royalty payment. Sun agreed to take part in the Microsoft program as part of a wide-ranging deal earlier this year in which Microsoft agreed to pay Sun $1.95 billion to settle antitrust and other disputes.

A Microsoft representative said on Friday that the deal has yet to be signed but said "we expect to finalize it shortly." A Sun representative said he was looking into the matter.

The requirement that Microsoft license its Windows protocols is part of its 2001 accord with the Department of Justice and various state attorneys general. Microsoft and regulators are required to make quarterly updates, like the recent filing. The document was filed ahead of a status conference Monday before the federal judge overseeing the case.

Also in the document, Microsoft announced that three less well-known companies--Satyam Computer Services, SecureAll Systems and BeTrusted--agreed to take out licenses for the Microsoft protocols.

Microsoft also said in the filing that state and federal regulators are beginning to look at Microsoft's next-generation Windows operating system, code-named Longhorn, to make sure it fits in with the consent decree, in particular a section of the pact that deals with the accessibility of the software to server software known as middleware.

"While Longhorn is not scheduled for release for some time, plaintiffs believe that early attention to these issues will enable plaintiffs and Microsoft to address any potential concerns in a timely manner, before the final structure of the product is locked into place," Microsoft and regulators said in the joint filing.

Microsoft has tweaked the terms of its licensing program on several occasions as part of its implementation of the pact between the company and state and federal regulators. At the end of last month, a federal appeals court upheld the settlement.

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More problems for Microsoft
maybe the Sun deal might not go through? Perhaps it was more of a ruse to rise up the stock prices of Microsoft and Sun? Show me the money! Will MS pay Sun, will Sun license Microsoft protocols?

Longhorn is one impressive piece of vaporware. They just keep adding features to it (feature creep) and keep pushing back the release date. Perhaps it will be the first telepathic and 4D operating system, released on 2300 AD? Oh I heard they are adding in Unix support to run Unix programs. This is good because it will break a lot of the existing Windows programs out there. Maybe Microsoft can borrow a page from Apple and make Longhorn based on BSD Unix, or at least the Unix part of it? After all, Microsoft has to borrow ideas from someone, they ran out of ideas in 1980, before MS-DOS was created based off a CP/M ripoff. They buy out companies like Hotmail, because they cannot create technology like that from scratch.

My concern is how Microsoft will keep offering a return on investment to investors when they have over 90% marketshare and cannot increase it any higher. The Xbox tanked, Sony and Nintendo own the console market. Microsoft games, pullleeezze! MSN, a has-been ISP at best. Microsoft is going to try to get into new markets, perhaps finance or media, within the next ten years.
Posted by Orion Blastar (590 comments )
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How convenient
How convenient of the courts to prepare ahead of time for Microsoft's law-breaking, so they have enough time to adjust their products to where they juuust can get away with it.
Posted by (15 comments )
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