Microsoft Corp Chairman Bill Gates, making his first courtroom appearance in a four-year-old antitrust fight, told a federal judge that a penalty proposal by nine states would force the company to give away software code that cost billions of dollars to develop.
In four hours of sparring with a lawyer for the states, Gates said the world's No. 1 software maker obeys the law and promotes innovation throughout the computer industry. He said the state plan is so broad it would fracture the Windows operating system that has been the industry standard for almost a decade.
"It takes away Microsoft's intellectual property and it gives it away for free for cloning," Gates said. The plan "does authorize the copying of virtually all of Windows."
Gates displayed little of the forgetfulness and evasiveness that, according to the original trial judge in the case, characterized videotaped answers he gave in an earlier phase of the legal fight. He answered all but a handful of the questions from state lawyer Steven Kuney head on.
US District Judge Colleen Kollar-Kotelly must decide whether to accept the Bush administration's settlement with Microsoft or impose stricter controls. As is her practice, she said little during the day's session, interjecting occasionally to resolve objections by Microsoft's lawyers or to tell Kuney and Gates not to interrupt one another.
Gates's testimony, which will continue today, came during cross-examination by Kuney.
"This proposed decree identifies no such boundaries." The states want to force Microsoft to devise a "modular" version of Windows so that computer makers can easily replace Microsoft programs with competing software.
The plan also would make Microsoft's Internet Explorer browser part of the public domain and force disclosure of more Microsoft code to let rival software easily run on Windows.
An appeals court last year ruled that Microsoft illegally protected its Windows monopoly, while overturning a judge's order to break up the company. The case is now assigned to Kollar- Kotelly to weigh new remedies in the event she decides the settlement is insufficient.
Microsoft shares fell US$1.61 to US$55.59 in trading on Monday.
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