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Microsoft Countersues Justice Department and States

Bill Gates and company file counterclaims against the Department of Justice and state attorneys general, denying the antitrust allegations.

By Lisa Moskowitz, PCWorld   

The two counterclaims will "clearly prove that Microsoft's actions are completely legal and good for consumers," the company said in a statement. In addition, the statement says that Microsoft believes the suits filed by the states "unconstitutionally undermine the company's intellectual property rights under federal law."

The statement goes on to cite the Federal Copyright Act of 1976, which states that copyright owners have the right to license their products to third parties in unaltered form. The argument is that under this act the installation of Windows 95 and 98, both of which are copyrighted, on third-party PCs is perfectly legal and constitutionally protected.

According to the statement, Microsoft made the following arguments in the court papers it filed against the federal government today:

• Microsoft had planned to integrate its Internet Explorer browser into the Windows operating system before Netscape even existed; this refutes the government's accusation that Microsoft only incorporated its browser technologies to disadvantage Netscape.

• Microsoft claims that its Internet Explorer technology is gaining popularity with consumers for the simple reason that it offers superior technology and has won virtually all of the recent independent reviews comparing it with Netscape's Navigator browser.

• Microsoft rejected government allegations that the company tried to "illegally divide the browser market" with rival Netscape in spring 1995.

• Microsoft rejected government allegations that the company entered into exclusionary contracts with Internet service providers or content providers.

• The company also rejected government claims that it illegally restricted the ability of computer manufacturers to alter the Windows desktop screen that users see when they turn on their computers for the first time.

The documents filed today are only part of Microsoft's position, the company said in a statement. Microsoft is expected to provide a more comprehensive response when the government motions for a preliminary injunction on August 10.