US Report: Microsoft homes in on Netscape/AOL talks

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Microsoft. wound down its cross-examination of America Online senior vice president John Colburn yesterday with a final series of internal memos that portrayed Netscape Communications as an unreliable partner in AOL's efforts to move from a proprietary online service to an offering that included a hefty dose of the wide-open Internet as well. An expected, taped deposition of Microsoft chairman Bill Gates failed to materialize, as Microsoft continued what opposing lawyers claim are delaying tactics. To drive home their point, Microsoft lawyer John Warden dug up a May 1996 memo, written nearly two months after America Online had already decided to give a crucial browser contract to Microsoft instead of Netscape. In it, an AOL executive in charge of relations with the browser maker's staff chided Netscape for failing to deliver on its promise to develop an "integrated" browser that would work as a seamless part of the AOL service. "They are not holding up either to the letter or the spirit of the contract," the technical specialist told top management. The company missed meetings, failed to deliver phone calls, and generally showed a lack of concern wrote the executive. That memo seemed to fit with Microsoft contentions it won the struggle to supply the browser for the AOL service "fair and square". "Isn't that the same behavior you'd seen earlier?" Warden asked Colburn. "No," Colburn said: Netscape made meetings, returned phone calls and the rest. The problem, Colburn asserted, was Netscape simply lacked motivation to perform in the wake of the Microsoft deal. Under terms of the "primary browser" contract, Netscape could never have more than 15 percent of the browser business at AOL. When the Silicon Valley company had signed its original contract, there had been no such restrictions. In fact, Colburn testified Tuesday, Netscape had lost so much from the Microsoft deal that AOL never felt compelled to enforce the original terms at all. Warden spent most of his time this morning once again scrutinizing the America Online Inc./Netscape Communications Corp. "alliance". And again, he painted unflattering comparisons between it and Microsoft's alleged monopolistic practices. Microsoft itself is accused of offering to divide the market for Internet browser software with Netscape by guaranteeing itself a free hand in computers that run Windows 95, Windows NT and all future versions of the Windows operating system. Netscape, in turn, would have gotten a lock on software for older, less popular operating systems. Netscape officials say they rejected that proposal. Microsoft denies it ever made the offer. Microsoft attorney John Warden homed in on an AOL-Netscape contract that set out terms of collaboration on America Online's "Instant Messenger" service, an e-mail-like Internet program that lets Net users alert other users that they want their attention immediately. The contract also covered conditions under which AOL would offer Netscape's browser software to its customers. Why, Warden asked AOL Senior Vice President David Colburn, did the contract prohibit AOL from linking the IM service to advertising that might compete with Netscape? Warden had suggested Wednesday the two were trying to "divide the market" for browsers and online service. The ban on other ads, Colburn said, was only logical. "AOL felt certain that makes sense," he said. "They don't want to distribute a product that's going to tell people to go somewhere else." Warden wanted to know more about advertising provisions that guaranteed AOL and Netscape up to 10 percent of the unsold advertising space on each others' sites -- gratis. Wasn't this a requirement to promote another company's product? Colburn had previously criticized Microsoft's insistence that AOL promote its browser while all but banning similar promotion of Netscape's Navigator browser. "There are requirements for swapping inventory," Colburn said blandly. With the Colburn testimony out of the way, Apple Computer's Avadis Tevanian is scheduled to take the stand on Monday. The trial recesses for Tuesday, which is election day, and resumes the next day. Independent Software Consultant Glenn Weadock is scheduled to take the stand that week if time permits, Intel's Steven McGeady will testify for the government Monday Nov. 9. Microsoft Chairman Gates will likely not appear until sometime after then, although government attorney David Boies declined to predict when. Lawyers for both sides say privately the trial itself may last into January if not February.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

bordero

ike fuelband is great for every healthminded person ! to work out! theres this website called textme4free.com that you can use to text anywhere in...

10 hours ago by bordero on Nike's FuelBand wristband gamifies exercise
BrownieBoy

> I'm told it's somewhat annoying when people have their Macs stolen > and Apple stores treat the thief as the owner, but there you go. Ouch,...

12 hours ago by BrownieBoy on AMD Ultrathins to challenge Intel Ultrabooks
Moley

@kevinmchapman. OK, I acknowledge that 'most' was a gratuitous throwaway comment as an afterthought and too presumptuous. As to proof, as you...

16 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
Jack Schofield

@BrownieBoy > Works really well for thieves.... >> Nice attempt to deflect the argument by tossing in a point that's totally >> irrelevant, even...

17 hours ago by Jack Schofield on AMD Ultrathins to challenge Intel Ultrabooks
raskolnikof

fantastic that the so called piracy bills have been withdrawn. however, these anti-democracy supporters are still in the shadows so lets be alert...

18 hours ago by raskolnikof on SOPA, Protect IP support wavers in face of online protest
Tony Douglas

Please God no; teach them anything you like - thinking rationally, the uses and misuses of data, what data is and what it's not - but leave the...

20 hours ago by Tony Douglas via Facebook on Kids are the future. Teach ’em to code.
BrownieBoy

@Jack, > Works really well for thieves.... Nice attempt to deflect the argument by tossing in a point that's totally irrelevant, even it were...

1 day ago by BrownieBoy on AMD Ultrathins to challenge Intel Ultrabooks
bootlegger

Make that 13 people now - I got refused today at Manchester airport. I thought I was up to date on this legislation - I knew of the EU ruling from...

2 days ago by bootlegger on UK airport body scans will not be opt out
tinycg

Don't forget to check out apps like GoodReader or SlideShark either, they're indispensible for people on the go in presentation situations. Best...

2 days ago by tinycg on Four top iPad apps for people on the move
TerryRK

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

2 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

2 days ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

3 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

3 days ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

3 days ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

3 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

3 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

3 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

3 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

3 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

3 days ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany