Lawsuit accord changes offered

  • Monday, December 10, 2001 9:00pm
  • Business

Associated Press

BALTIMORE — Microsoft on Monday unveiled changes to its offer to settle private antitrust lawsuits by donating reduced-price software, computers and training to schools. The changes are designed to answer criticism the donations will extend the company’s market dominance.

Microsoft lawyer Tom Burt urged U.S. District Judge J. Frederick Motz to accept the settlement, saying schools, not the software giant, would benefit from the settlement plan. He said schools would be able to make their own technology choices.

"This is going to be a platform-neutral settlement that is not going to be influenced by Microsoft," Burt argued in urging acceptance of the deal that would provide an estimated

$1 billion for school donations.

Among the settlement changes unveiled by Microsoft:

  • Changes in the way the foundation that will oversee the money will pick its board members. Microsoft said two software makers are joining the foundation: Connectix, which makes a program that lets Windows work on rival Apple computers, and education software company Key Curriculum Press.

  • The foundation, not Microsoft, will oversee the doling out of

    $90 million in teacher training funds that are also part of the settlement.

    The changes are designed to address the criticisms of some educators and Microsoft rivals that the plan would simply encourage students to use Microsoft software and thus extend the software giant’s market dominance.

    Last week, Apple told the court the settlement constitutes a massive subsidy for the adoption of Microsoft products in schools. Apple holds nearly half the pre-college educational market and analysts said that share could be threatened by the settlement.

    Microsoft said the settlement has the support of the National Education Association, the United Negro College Fund and other education groups.

    Under the proposal, Microsoft would provide at reduced prices more than $1 billion worth of Microsoft software, refurbished personal computers and other resources to more than 16,000 of the nation’s poorest schools.

    Burt said he hopes more companies will join the foundation and stressed that schools can make their own technology choices.

    "This is not a settlement that imposes any solutions on local schools." he said. "The eligible schools are enabled to implement local technology plans."

    Motz repeatedly expressed concerns about the structure of the settlement, showing fears that it might unduly benefit Microsoft.

    Burt called that concern "at most insignificant" and claimed that schools would be shortchanged if Microsoft simply paid a lump sum to the foundation, as Apple suggested.

    "The value of the software to the students is much greater than the cost to Microsoft," Burt said.

    Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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