Tuesday, December 11, 2001
Microsoft: Settlement would help poor schools
By D. Ian Hoppe
The Associated Press
BALTIMORE A proposed settlement to end a private, consumer lawsuit against Microsoft would help poor schools get used computers and free software to close the digital divide, the software giant said Monday.
The settlement, which would provide more than $1 billion in Microsoft software, computers and training, is very fair and even generous, Microsoft lawyer Tom Burt said.
Microsoft defended the proposal at a hearing in Baltimore before U.S. District Judge J. Frederick Motz, who is expected to decide by the end of the year whether to accept the plan. The class-action lawsuit contends that Microsoft abused its monopoly power and overcharged people for Windows, Office and other software.
Some companies, like Apple Computer, as well as scores of educators and parents, contend that the deal would reward the company by increasing Microsoft's market share in schools at the expense of competitors like Apple.
The education market is very robust, Apple general counsel Nancy Heinen said. Why would you let a monopolist get a better foothold?
Mr. Burt argued, however, that 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 Micro soft, he said.
During the hearing, Microsoft offered several changes to the settlement to address the criticism that began when the proposal first was unveiled last month. Among the new Microsoft ideas:
Changing the way the foundation that will oversee the money will pick its board members. Microsoft said two software makers would join the foundation: Connectix, which makes a program that lets Windows software work on rival Apple computers, and education software maker Key Curriculum Press.
Allowing the foundation, not Microsoft, to oversee the distribution of $90 million in teacher training funds that are part of the settlement.
Microsoft said the settlement has the support of the National Education Association, the United Negro College Fund and other education groups.
The $1 billion in software, computers and training would go to more than 16,000 of the nation's poorest schools.
Mr. Burt said he hopes more companies will join the foundation and stressed that schools will be able to 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.
Mr. Motz expressed concerns that the settlement might unduly benefit Microsoft.
Deal could unlock Over-the-Rhine development
City developer asks more time
Fed likely to slash rate again
Changing electric providers unpopular
What's the Buzz?
Tristate Business Summary
Microsoft: Settlement would help poor schools
Retailers ride wave of holiday sales
Morning Memo
Report: Social Security changes ought to help economy