Novell exec says Microsoft withheld vital data

When Novell tried to obtain technical specification on the Windows OS from

Microsoft in order to make its networking products compatible with the dominant

PC operating system, Microsoft withheld the information, hurting Novell and

other companies that compete with Microsoft in the market for networking

solutions.

Novell chief technology officer, Carl Ledbetter told US District Judge

Colleen Kollar-Kotelly Microsoft had created problems for his and other

companies by modifying industry standards and designing its most recent server

operating system to work well only with Windows. "Microsoft has taken steps

to degrade the performance of rival server operating systems," Ledbetter

said.

Ledbetter testified on behalf of the nine states that are seeking tougher

sanctions against Microsoft. They are trying to show that the rather weak

antitrust settlement negotiated between the US Justice department and Microsoft

will do little to prevent Microsoft from using it monopoly power to stamp out

competitors.

Ledbetter said the proposed settlement of the case was not sufficient to end

the software giant's behavior. Unless it is forced to do so, Microsoft will not

disclose key software interface information that competing software developers

need to achieve effective interoperability. But the settlement fails to require

timely disclosure of computer code and is subject to Microsoft's discretion. Nor

does the settlement address Microsoft's adherence to industry standards. And he

said, there are no time constraints in the settlement to handle disputes.

"Time is of the essence in this industry."

Microsoft lawyers, in cross-examining Ledbetter, said internal Novell

documents showed Novell is merely trying to use the antitrust case to advance

its competitive position. A December 2001 e-mail from Novell CEO Jack Messman

asked Ledbetter if the company could use its eDirectory software as a

"Trojan Horse" by getting Microsoft to include it in its server

software. "After we get it in, we can then proliferate," Messman

wrote.

Ledbetter replied that the antitrust case against Microsoft could pressure

the company into carrying eDirectory, which competes with Microsoft's Active

Directory. After eight witnesses, Kollar-Kotelly has heard numerous instances in

which Microsoft has tried to obstruct competition in the market place. The

testimony should give the judge the legal leverage to force more stringent

penalties on Microsoft.

Microsoft appears to expect as much but is building a legal defense on the

contention that the Judge can only issue directives that apply to past business

practices and cannot penalize Microsoft in ways it would that would affect new

products and markets such as handheld devices.

The company is almost certain to appeal any additional punishment to the

Supreme Court if it has to. But earlier rulings by the Appeal Court appear to

give Kollar-Kotelly some leeway in addressing just about any aspect of

Microsoft's business involved in current or future anti competitive behavior.