Judge Sets September Trial Date in Microsoft Case

(May 26, 1998)  Federal District Court Judge Thomas P. Jackson ruled at a hearing on Friday, May 22, that the government's case against Microsoft will go to trial on September 8.  The Judge issued no preliminary injunction regarding Windows 98.  He also consolidated the two cases filed on May 18 by the federal and state governments.

Judge Jackson rejected Microsoft's request that the preliminary injunction stage of the proceeding not go to a hearing until 1999.   However, Judge Jackson granted Microsoft's request to consolidate the nearly identical suits brought by the federal government and twenty states.

The decision gave something to both sides.  Microsoft is not now enjoined from releasing Windows 98.  The public release date is June 25.  Moreover, copies of Windows 98 were distributed last week to computer manufacturers, so that they can preinstall the software on their machines.

Also, Microsoft and computer manufacturers do not need to promote Windows 98: the government and other Microsoft opponents are waging an effective media campaign for them, by creating a public image of Windows 98 as "the product that the government doesn't want you to have," and of the Netscape Navigator as a welfare case.

On the other hand, the government has the opportunity to proceed to a trial for which Microsoft will not have had an adequate time to conduct pre-trial discovery of evidence.  

The government's Memorandum in Support of Motion for Preliminary Injunction alone referenced twenty-nine affidavits, declarations, and depositions, and thousands of pages of documents.   Many of the sources of evidence in this highly complex case work for companies which are in competition with, and hostile to, Microsoft.  They will have little difficulty dragging meaningful compliance with Microsoft's discovery requests until after the beginning of trial.

The 45 minute hearing was conducted Friday morning in a packed courtroom at the U.S. Courthouse in Washington DC.  John Warden, of the law firm of Sullivan & Cromwell, represented Microsoft.  David Boies represented the Department of Justice.

Statement by William H. Neukom
Microsoft Senior Vice President for Law and Corporate Affairs
May 22, 1998

We are pleased with several aspects of today's proceeding. Obviously, there are many more hurdles before this case is resolved, but there were two significant victories for Microsoft, and for anyone who cares about innovation in the high tech industry.

First, although the DOJ and the States asked the Court for injunctive relief before June 25, the Court determined there was no need to take any action before the consumer release of Windows 98. We are looking forward to an exciting Windows 98 launch that delivers this innovative new product to millions of consumers without any cloud of government intervention.

Second, the Judge Jackson recognized that Microsoft should be given additional time to gather evidence and interview witnesses, so that we can present all the facts to the Court. The Judge rejected a motion by the federal government and the States that called for a rush to judgment on these issues by June 18th, before Microsoft could assemble its case.

We will use the time the Court has provided to marshal all the facts and legal arguments, and we will present a very powerful case in September.

We look forward to launching Windows 98 on June 25th and we look forward to presenting our case in September. We're confident the facts will show that Microsoft is competing fairly and offering great value to consumers.