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In the 1990s, IBM irked Microsoft by selling PCs loaded with its own operating system, OS/2, as an alternative to Windows, and with its SmartSuite productivity software, cutting into the market for Microsoft Office programs. IBM also backed Java, a programming language that doesn't need Windows to run.

Jackson noted that Microsoft retaliated by charging IBM more than other PC makers for copies of Windows.

There were other tactics, too. Months before Windows 95 came out, Microsoft let other PC companies pre-install the operating system on new computers that could go on sale right after the launch. But IBM got its license only 15 minutes before the event.

http://www.businessweek.com/ap/financialnews/D8B2ONRG0.htm?campaign_id=apn_tech_down

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Short recap and context: on July 1, 2005 Microsoft and IBM announced an agreement that resolved a string of desktop-related antitrust claims tied to the 1990s litigation. Microsoft agreed to $775 million in cash plus $75 million in software credits (roughly $850M total). The deal covered OS/2/SmartSuite-era claims but left certain server-related claims limited for later action. (news.microsoft.com)
Microsoft press release (July 1, 2005)

Why settle instead of litigate: by 2004–2005 Microsoft was already resolving multiple legacy suits (for example, a large settlement with Sun in 2004 and a separate Gateway agreement in 2005) and had taken reserves to cover expected payouts. Settlements buy certainty, cut discovery and trial costs, and let firms refocus on product and channel relationships rather than years of courtroom risk. (theguardian.com)
Guardian: Sun settlement (2004) — Microsoft financial update (Apr 11, 2005)

Who "won"? Short answer: it depends. IBM converted past harms into immediate cash and credits; Microsoft bought legal closure and predictable exposure; lawyers and outside counsel collected fees for negotiating and structuring the deal; the public didn’t get a dramatic trial verdict that might have produced clearer legal precedents. Also note that settlements of this type commonly resolve claims without an admission of liability, which changes the shape of public accountability versus private recovery. (news.microsoft.com)
Examples of \"no admission\" clauses

Practical takeaway tied to the thread: and are right to flag lawyers as big financial beneficiaries of litigation, but that is only part of the picture. For companies, settlement is a pragmatic business decision; for critics, it can feel like accountability was shortchanged. The IBM–Microsoft deal gave IBM concrete recovery and left Microsoft fewer legacy risks — which, for markets and product teams, is often the primary objective. (news.microsoft.com)

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Member Avatar for jwenting

The only ones who won were the lawyers who got multimillion dollar paychecks out of the farce.
This is the usual result of large civil lawsuits, especially frivollous ones like this where the charged party has done nothing wrong and the accuser tries to get rich over someone else's back...

Member Avatar for server_crash

Yep, the lawyers REALLY rip people off. Most people cannot afford them, so they say: "Hey, don't worry about paying me right now, but if we win, I get 50%". I think I saw on a television show about this crap a while back, and one lawyer made 900 million a YEAR...All from getting 50% of the wins and from stupid lawsuits.

Member Avatar for jwenting

Yup. John Edwards (you know, the running mate and financier of John Kerry last year?) makes $500 million a year just from the lawsuits he does himself. He makes even more from his share in the proceeds from his lawfirm.
He specialises in medical cases, chasing ambulances.

Member Avatar for server_crash

Yup. John Edwards (you know, the running mate and financier of John Kerry last year?)

I know that idiot. I'm embarrassed to say that he's from my state. What makes me hate him more, is the way he tried to recover from a terrible beating during a debate with Cheny.

Member Avatar for jwenting

I wouldn't call anyone making $500 million a year legally an idiot :)
He's a powermad maniac, and certainly not the person I'd want to hang around with, but he's not an idiot.

Member Avatar for server_crash

He's been the senator for my state, and I know him. I cannot stand that dude. I laughed when he was getting his butt kicked during a debate up untill he became a sore loser and said something inappropriate.

Member Avatar for jwenting

My condolences having him as your senator.
Your only comfort can be that it could be worse, it could be Hillary :)

Member Avatar for server_crash

Your only comfort can be that it could be worse, it could be Hillary :)

:cheesy: :cheesy: :cheesy:

OHHHH NOOOO! And to think that women will probably run for president in the upcoming election....

Member Avatar for jwenting

:cheesy: :cheesy: :cheesy:

OHHHH NOOOO! And to think that women will probably run for president in the upcoming election....

I knew the so-called "democratic" party (ever noticed that true democrats never call themselves democrats?) were stupid but I didn't think they had a deathwish :mrgreen: :cool: :p

Member Avatar for server_crash

Actually she's got the popularity to beat almost anyone. The republicans are already preparing to match her if she runs..I'm thinking they will send condoleza rice. It's going to be a sad election year if all these rumors are true, but who knows, she might not even run.

Member Avatar for jwenting

They've failed to rig the elections in their favour twice already. Unless a lot of people that voted for Bush decide to vote independent in protest against his inaction against the destruction of civil liberties by the US suppreme court I think they'll fail a third time.

Member Avatar for server_crash

Unless a lot of people that voted for Bush decide to vote independent in protest against his inaction against the destruction of civil liberties by the US suppreme court I think they'll fail a third time.

I would NOT be suprised at all if that happened.

By the way, what kind of government is in the Niederlandes? You seem to know A LOT about ours!

Member Avatar for freesoft_2000

Hi everyone,

and one lawyer made 900 million a YEAR...All from getting 50% of the wins and from stupid lawsuits.

I think i am in the wrong industry

Richard West

Member Avatar for server_crash

No you don't, the way that guy made the 900 m's was with frivolous law suits. The kind that's destroying our justice system.

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