Microsoft, AOL trade legal jabs

SEATTLE: Microsoft Corp. and rival AOL Time Warner Inc. traded legal jabs on

Thursday, with the software giant claiming AOL hasn't fully revealed how it has

aided the nine states seeking tougher antitrust penalties, and AOL countering

the complaint is just retaliation for a new lawsuit it filed earlier this week.

In a filing with Judge Colleen Kollar-Kotelly of the US District Court for

the District of Columbia late on Wednesday, Microsoft said AOL has failed to

abide by subpoenas that require it to reveal contacts with the states demanding

tougher measures against Microsoft for breaking antitrust laws.

Microsoft asked the court to force AOL to hand over more documents as well as

shorten the time for AOL to respond to the filing, and bar any AOL witnesses

from giving trial testimony. AOL had produced only 851 pages of documents, while

two other firms involved in the litigation, SBC Communications and Novell had

produced 27 boxes and seven boxes, respectively, Microsoft said.

"AOL can't have it both ways. Their uncooperative attitude on document

production stands in stark contrast to their active, behind-the-scenes

involvement with the non-settling states," said Microsoft spokesman Jim

Desler. The motion came one day after AOL launched a private lawsuit alleging

Microsoft's unfair business practices harmed its Netscape Web browser

subsidiary.

Microsoft said the matters were unrelated, but AOL countered that the new

filing was retaliation for the new lawsuit.

Netscape link?



In a filing of its own later on Thursday, AOL said it would agree to a
faster schedule, and slammed Microsoft for breaking off talks to resolve some of

the procedural disputes.

"Microsoft's decision to cease discussions and to file a motion to

compel curiously coincides with a lawsuit filed on January 22nd, against

Microsoft by Netscape, a subsidiary of AOL," AOL said. "Indeed, when

asked about this, Microsoft's counsel did not deny that the filing of the

Netscape complaint caused Microsoft to suddenly change its position," AOL

said.

AOL also said it had been producing required documents. To this, Microsoft

shot back that AOL's response was "replete with falsehoods" and was

intended to cover their lack of cooperation.

Microsoft itself has recently come under fire for similar reasons from the

American Antitrust Institute, a private group supporting harsher sanctions

against the company. The AAI filed a motion on Thursday seeking to force

Microsoft and the Department of Justice to provide greater detail about how they

settled the government's landmark antitrust case against the software maker.

The Justice Department did not adequately explain its reasoning behind the

settlement, the AAI said, and Microsoft did not fully reveal all the meetings it

had with government officials before the settlement, as required by law.

(C) Reuters Limited.