COVINGTON — Some Covington and Newport schools would receive free computers under a proposed $1 billion lawsuit settlement between states and software giant Microsoft Corp.

        As part of the settlement, which must be approved by a federal court in Baltimore, Microsoft has agreed to give thousands of the nation's poorest schools more than $1 billion in cash, services, computers and software. A preliminary hearing on the settlement is set for today before U.S. District Judge Frederick Motz, who is overseeing the case in U.S. District Court for the District of Maryland.

        As part of the settlement, Kentucky Attorney General Ben Chandler has announced that about 170 schools in Kentucky would receive free computers. The schools that might get computers in Northern Kentucky are:

        • First District Elementary, Covington.

        • Fourth District Elementary, Covington.

        • John G. Carlisle Elementary, Covington.

        • Sixth District Elementary, Covington.

        • Fourth Street Elementary, Newport.

        • Newport Day Treatment.

        To be eligible, schools must have at least 70 percent of students receiving free lunches under federal programs designed to help feed needy children.

        The details, including the number of computers each school will receive and when they will arrive, must be worked out, according to Mr. Chandler's office.

        Earlier this month, Mr. Chandler, representing the commonwealth of Kentucky, settled with Microsoft as part of a multistate lawsuit involving violations of antitrust laws. The company was accused of abusing its market position by overcharging for computers and software, he said.

        “I am thrilled with the possibili ty that Kentucky schools will enjoy a tangible benefit” from the lawsuit, Mr. Chandler said.

        Jack Moreland, superintendent of Covington Independent Public Schools, said the school district is “excited” to be in line for new computers.

        “As far as computers in the elementary schools, we're in pretty fair shape with a student to computer ratio of about five or six to one,” he said. “But getting new computers will make it even easier for our students to get on a computer in the classroom.”

        In Covington's elementary schools, computers are installed in classrooms, not a computer lab.

        “That way, the students have better access to computers. And with more computers coming to the classrooms, they'll even have a better opportunity to use a computer,” Mr. Moreland said.

        Microsoft was hit with dozens of private lawsuits claiming antitrust violations after the government filed its antitrust suit against the software company in 1998.

        Federal courts have ruled that Microsoft was guilty of antitrust violations, that it abused its monopoly power and that consumers suffered harm as a result. In June, a federal appeals court unanimously affirmed the finding that Microsoft used anticompetitive means to maintain its Windows operating system monopoly.

        Many states dismissed the suits because new computer buyers did not directly buy the Windows operating system.

        The remaining cases were consolidated under Judge Motz, who appointed Cincinnati attorney Stan Chesley as lead counsel.

        The settlement calls for Microsoft to distribute cash, computers and other material to 12,500 schools serving 7 million students over the next five years. Under the settlement the company admits no wrongdoing.

        Ohio is not one of those involved in the settlement.

       The Associated Press contributed to this report.

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