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Microsoft to file for appeal within days

OUT-LAW News, 08/06/2000

Microsoft will quickly file an appeal and request for a stay of Judge Thomas Penfield Jackson’s order splitting the company in two, according to the company’s lawyers.

“We will file the notice of appeal and stay just as soon as possible, in the matter of a very few days,” said attorney Bill Neukom. He added that he expected the appeals process to last for several months, or possibly more than a year depending on how the process unfolded.

Microsoft’s chairman insisted the company will appeal the decision, speaking in a conference call shortly after Judge Thomas Penfield Jackson gave his ruling to split the company in two. Gates said, “This reminds me of the old saying, ‘today is the first day of the rest of your life’ and today is the first day of the rest of the case.”

Gates added, “We’re confident the judicial system will overturn this decision and we will also be seeking a staying order to prevent any other restrictions until the appeal process is complete.”

The Department of Justice will want to take the case straight to the Supreme Court when the appeal is filed. Assistant Attorney Joel Klein said: “A matter of this consequence, involving serious market implications and a major company, should, one, benefit from Supreme Court review and, two, should benefit quickly so that the expectations can be settled, the remedy can go forward and the industry can move on.”

Taking the case to the Supreme Court would bypass the normal intermediate hearing at the US Circuit Court of Appeals for the District of Columbia. To succeed with this bypass, the government must show that the case is “of general public importance in the administration of justice.” Microsoft’s agreement is not necessary.

Bill Neukom argued implied that Microsoft would be reluctant to bypass the circuit court. He observed that in 28 years the Supreme Court has taken only one expedited appeal which led to the break up of telecom giant AT&T.

Joel Kelin said: “After the divestiture I expect both companies will be vibrant, strong and successful firms. Each will be free to create new, exciting products. And they will have every incentive to compete vigorously with one another and with others in this industry. That competition will benefit America’s consumers and the entire economy.”

 

 

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