COURT NOTES: Microsoft started out another bad week in court by calling general manager Dan Rosen to the stand. There Rosen testified that he typed - but never sent out - a 1995 e-mail that proposed splitting the browser market with Netscape. Government lawyers then produced a document number proving that the message came from the inbox of another Microsoft official, meaning that the message had been delivered. The witness quickly changed his story, saying that he had apparently sent the message, but only to that one person. Rosen proceeded, claiming that he never felt Netscape was a serious competitive threat to his company. That contradicted the testimonies of Microsoft executives Paul Maritz and Brad Chase and an e-mail from Bill Gates.
Rosen then told government attorney David Boies that he never saw the Windows 95 version of Netscape Navigator until July 1995. Boies asked him if he recalled it correctly, and if it was in April or May 1995. Rosen replied that it definately happened it in May. Boies produced an e-mail Rosen wrote in April of the same year discussing a meeting with Netscape where he received a copy of the new program. Following the admission of these two exhibits Rosen said he had been mistaken, a remark which produced laughter from the courtroom and a loud sigh from Judge Thomas Penfield Jackson. Shortly thereafter Boies ended his cross examination an hour early saying that the witness had proven his lack of credibility.
Tuesday Microsoft executive Eric Engstrom took the witness stand. Although Engstrom's written testimony primarily concerned allegations that Microsoft asked Apple to divide up the multimedia software market, Malone spent most of that afternoon dealing with the company's relations with Netscape and Intel. One 1997 e-mail Engstrom wrote proposed that Microsoft buy DimensionX before Sun could. Boies speculated that Microsoft wanted DimensionX because the software tools company had a product that some within Microsoft thought would be important for writing sites to run on Netscape's browser.
The next day Engstrom combatted the testimony of Apple's Avadis Tevanian, who back in November said Microsoft built hooks into Windows to give error messages when Apple's Quicktime is used [see NewsSource, Nov. 11 '98]. The witness then claimed that his job was placed at risk because of Tevaian's earlier testimony. But Engstrom did acknowledge that Microsoft wanted Apple to abandon part of QuickTime and use a product from Microsoft instead, saying that it was "silly" for the companies to duplicate their efforts.
Following a recess for lunch, German-born Microsoft senior vice president Joachim Kempin was called to testify. He began by showing another Microsoft-produced video (looks like they would have learned by now) supposedly showing how Acer, Compaq and Sony each bundle non-Microsoft Web browsers with their machines. Videos also showed how each of those companies let users sign up for Internet services other than those provided through Windows' built-in Internet Connection Wizard.
In short, said Kempin, Microsoft's relations showed that it was not a monopoly, but a competitor in a difficult market. But when asked, Kempin conceded that computer makers couldn't change their registration routines until Windows 98 shipped - eight months after the Department of Justice sued Microsoft in 1997. The witness also confirmed that the registration technique used by Compaq wasn't allowed in its original contract with Microsoft, and instead had to be negotiated separately. But he defended those actions, explaining that his company was only protecting its intellectual property rights; letting a computer assembler change a startup screen or remove an icon would be like removing a chapter from the novel 'Moby Dick'.
Kempin then cknowledged that Microsoft paid incentives to OEMs so they would make changes to the startup screens to bring them into compliance with its licensing agreements. But a short while later when Boies asked why Microsoft had to "bribe" computer companies to use IE, the witness changed his testimony: "Our license agreements never allowed personal computer makers to do this." "Didn’t you tell me two minutes ago they could?" Boies asked. "If I said that it was wrong," replied Kempin. The testimony then progressed to debating whether or not Kemplin understood the questions since English is not his native language.
On Friday yet another Microsoft senior vice president, Robert Muglia, testified about Java. Following that unremarkable piece of testimony, Judge Jackson called the court into recess for six weeks to allow everyone involved in the trial time to handle other unrelated business.
Lawyers from both sides said that they have yet to decide what witnesses to call for their rebuttals when the trial resumes in mid-April. Most speculation centered around Bill Gates, but we doubt the Microsoft CEO will be called to the stand because he hurts the case for his side, and would be a hostile witness for the prosecution. We have heard several rumors that America Online's Steve Case could testify, but so far nothing that Case could give new information about has been produced. However things go, we'll be back in this spot six weeks from now to cover it.

Microsoft announced last Monday that Internet Explorer 5.0 will be released for download on March 18. Versions in 10 different languages will be available for Windows 95, Windows 98, NT 4, NT 3.51, Windows 3.x, Solaris and HP-UX. Macintosh users will, however, have to wait until late summer for the browser upgrade. IE5 was originally scheduled to be released with Office 2000 and Windows 98 SP1, but those products have been delayed until sometime later this year. A retail version of IE5 is expected, but Microsoft has yet to give out any date for its release.

Microsoft has created a "monitoring campaign" to watch auction-type web sites - particularly eBay - to ensure that no pirated Microsoft products are being sold there. Microsoft will reportedly combine its campaign with eBay's existing piracy prevention program.

_{Oracle goes after Windows NT
Microsoft creates a BackOffice bonanza
Gates Backs 'Fast-Track' Power For Clinton}