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Microsoft loses case to small software company

OUT-LAW News, 05/09/2000

A federal judge in Connecticut has ordered Microsoft to pay US$1 million in punitive damages to a small software company, Bristol Technology Inc., for using deceptive business practices during a dispute over a licence to the Windows NT operating system.

Judge Jane Hall’s ruling came just over one year after a federal jury awarded Bristol Technology nominal damages of $1, concluding a six week trial. Bristol had accused Microsoft of violating US antitrust law by preventing access to the source code for Windows NT.

Bristol makes software called Wind/U, a collection of Windows and UNIX cross platform development products. Between 1994 and 1997, Microsoft and Bristol had a contract under which Bristol was entitled to the source code for an earlier version of Windows NT. Bristol sued when Microsoft refused to extend the contract to the newer versions.

Hall wrote: “The deceptive conduct engaged in by Microsoft clearly rises to the level of reckless and wanton indifference to the harm it caused Bristol and others, including independent software vendors.” She also observed that Microsoft chairman Bill Gates gave an intentionally false statement during a speech in 1996 in which he assured other software companies and customers that Microsoft would continue to provide its latest products for conversion to the UNIX platform.

Microsoft has said it will likely appeal the ruling on the grounds that it was inconsistent with the jury’s decision in 1999.

 

 

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