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Old Microsoft DNA still at work?
In July 1994, the U.S. Department of Justice and Microsoft settled charges that the software maker had violated the Sherman Antitrust Act, despite a Washington judge dissing the deal as toothless.
You doubtless recall how the story turned out: Left free to pursue its bliss, Microsoft landed back in hot water four years later. The government complained that the software maker had exploited its market dominance in order to drive competitors out of business, and the two sides headed to trial.
After an appellate court voided most of a harsh lower-court ruling, the subsequent deal left Microsoft free to go about its business with little more than a slap on the wrist. The lesson for smaller software makers was clear: Why stick your neck out when even the might of the United States government was not enough to force Microsoft to cry uncle? In the business argot of our day, the potential return on investment is not worth the effort.
I was reminded of all this when Michael Robertson came to town to talk up his latest start-up. Robertson, the impresario who created MP3.com, is tussling with Microsoft these days over the name of his newest company, Lindows.com.
Microsoft, which has the obvious incentive to block any would-be rival desktop operating system, is suing for trademark infringement. The immediate argument centers on whether or not the term "windows" should be classified a generic term. Given that his company markets a Linux-based operating system, Robertson had to know that his naming convention would inevitably attract Microsoft's attention. But let's leave that issue for another day.
There's potentially a more explosive item on the agenda: Robertson claims that Microsoft has used its muscle to steer would-be business partners away from doing business with Lindows. If true, certain folks in Washington will want to know the details. So far, however, Robertson refuses to name names--at least not for the record. And he doubts that any of the parties concerned will make a beeline for a microphone, either; after watching what happened to Netscape, what's the point of going public?
Microsoft says the allegations are bunk, but the timing of Robertson's charge comes only a few months after RealNetworks filed a $1 billion lawsuit, accusing Microsoft of illegally using its Windows monopoly to limit consumer choice in digital media.
Among other things, Real claims that Microsoft used contractual restrictions and monetary incentives to "force PC makers to accept Windows PC operating systems with the bundled Windows Media Player and to restrict the ability of PC makers to preinstall or promote competing digital media players."
Substitute "Windows Media Player" with "Internet browser," and the complaint sounds eerily familiar to the government accusation that Microsoft sought to choke off Netscape's access to distributors.
No doubt, RealNetworks CEO Rob Glaser, an ex-Microsofty, has a score to settle with his old company and former mentor Bill Gates. Still, he's a not a goof, and neither is Robertson. He may have an ax to grind, but he remains a serious business executive.
That's why I'd like know whether all this is simply a forgettable case of corporate DNA reasserting hardball habits at Microsoft--or something more. The question remains open for investigation.
Other must-reads from News.com this past week:
The RFID revolution: Are we close?IBM's Rainer Kerth says the key will be to separate the practical applications from the technology's gee-whiz appeal.
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Gates goes to college
Microsoft's co-founder explains why he's barnstorming to a pro-tech education campaign on campus.
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ICANN't take it anymore
Policy analyst Sonia Arrison warns of the implications of a dangerous drift in Internet governance.
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As IT spending has slowed, IT managers are having to make prudent purchasing decisions--even as the demands on their infrastructure may be increasing. To help with tough choices, CNET's White Paper Directory features information on processors, memory components, database servers as well as other hardware.
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Vox populi on tech outsouring
CNET News.com's Declan McCullagh got an earful from readers when he argued that outsourcing jobs overseas is good for the economy.
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A software potential movement?
Compuware executive Dan Schoenbaum urges a radical change in the way companies develop, deploy and manage applications.
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