March 16, 2004

Trial begins in Minnesota case against Microsoft

Plaintiffs allege MS overcharged for Windows and other software

Opening arguments began this week in a class-action lawsuit accusing Microsoft Corp. of overcharging for software licenses.

Lawyers for the plaintiffs, seeking up to $452 million for software licenses sold in Minnesota between 1994 and 2001, began their opening arguments Monday and concluded Tuesday afternoon. Microsoft lawyers were scheduled to begin opening arguments late Tuesday in Hennepin County District Court in Minneapolis.

The trial, expected to take about 15 weeks, could include testimony from Microsoft Chairman and Chief Software Architect Bill Gates. His name remains on the Microsoft legal team's list of witnesses, said Microsoft spokeswoman Stacy Drake.

Attorney Eugene Crew, representing the plaintiffs, has argued that Microsoft overcharged prices for Windows and other software because of the monopoly it has enjoyed. Crew was unavailable for comment Tuesday.

Microsoft disagrees, although it reached settlements with lawyers representing consumers in states including California, Tennessee, North Dakota, South Dakota and Kansas. In those cases, Microsoft agreed to make vouchers available to customers who bought Microsoft software during a specific time period. The vouchers can be used to buy computer software or hardware.

"We believe the plaintiffs damage requests are wrong and based on unjustified calculations," Drake said of the Minnesota case. "Our high-volume, low-cost model is the opposite of overcharging."

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