Showdown looms over Passport

Cole claimed there are more than "200 million Passport accounts performing more than 3.5 billion authentications each month." But on Thursday, Gartner said the true number of consumers is closer to 25 million, with each using many multiple Passport accounts. The MSN executive also rebuffed Borthwick's allegation that Passport is a "closed" system. Cole referred to Microsoft's September announcement about opening Passport to other authentication systems. "In entering into agreements with Web site developers, Microsoft has not required Web sites to use Passport on an exclusive basis," Cole testified. "By contrast, I understand based on Mr. Borthwick's direct testimony that America Online has entered into an agreement with Amazon.com...to use its Screen Name Service authentication service exclusively." Borthwick and Schwartz also addressed the Liberty Alliance, a Sun-sponsored authentication service and rival to Passport. "Although Microsoft has not joined the Liberty Alliance to date, Microsoft hopes to work with America Online, Sun Microsystems and other members of the Liberty Alliance to achieve interoperability among online authentication systems," Cole testified. "Microsoft sees interoperability as good for consumers." Cole also addressed allegations that Windows XP nags consumers to sign up for Passport, which is required to use Windows Messenger and some other features. "Although several optional services in Windows XP use Passport, Windows XP does not require users to have or use a Passport, and a Passport is not required to access the Internet from Windows XP," he testified. On the stand In court, during cross-examination, states attorney John Schmidtlein attempted to get Cole to agree that Microsoft hoped to use Windows XP to drive Passport adoption. He asked the witness if Passport sign-ups had increased since Windows XP's launch in October. "I don't have data on that," Cole responded. But he later estimated Microsoft signs up between 1 million and 1.5 million new Passport accounts each month. But he emphasized that Hotmail, with 160 million users, is more important for Passport than Windows XP. Cole estimated Microsoft's signs up about 14 million new accounts each month. Schmidtlein latched onto Hotmail, MSN Messenger and some Windows XP features as Passport-account generators. "Yes, Passport is necessary to use a number of services that come with Windows XP," Cole explained. The answer didn't satisfy Schmidtlein. "Passport is more than just an enabler (of these services), it's an absolute prerequisite," he charged. "Yes, Passport is an enabler of those services," Cole replied. But he gave no ground on the prerequisite portion of the question. Schmidtlein proceeded onto other Microsoft services requiring Passport, such as MSN Messenger and .Net Alerts. Without hesitation, Cole conceded Microsoft's 40 million MSN Messenger users need a Passport account to use the service as do those subscribing to .Net Alerts. Schmidtlein also tried to attack the portion of Cole's written testimony pertaining to how much information Microsoft collects during Passport sign-up. Cole had said only an e-mail address, which could be fictitious, and password. But Schmidtlein noted that Hotmail, which requires a Passport account, collects a lot more information, including name and address. Cole explained that this is different, because Hotmail is a free service supported by advertising. "Hotmail generates revenue...this demographic information allows us to do that," he said. Cole's cross-examination is expected to continue on Monday. Microsoft still has another possible 20 or more witness that could testify during the proceeding. The company expects to release the upcoming week's witnesses as early as Friday.
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