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- Volume 2, Issue 2 Atari Online News, Etc. January 14, 2000
-
-
- Published and Copyright (c) 2000
- All Rights Reserved
-
- Atari Online News, Etc.
- A-ONE Online Magazine
- Dana P. Jacobson, Publisher/Managing Editor
- Joseph Mirando, Managing Editor
-
-
- Atari Online News, Etc. Staff
-
- Dana P. Jacobson -- Editor
- Joe Mirando -- "People Are Talking"
- Michael Burkley -- "Unabashed Atariophile"
- Albert Dayes -- CC: Classic Chips
-
-
-
- To subscribe to A-ONE, send a message to: dpj@delphi.com
- and your address will be added to the distribution list.
- To unsubscribe from A-ONE, send the following: Unsubscribe A-ONE
- Please make sure that you include the same address that you used to
- subscribe from.
-
- To download A-ONE, set your browser bookmarks to one of the
- following sites:
-
- http://people.delphi.com/dpj/a-one.htm
- http://www.icwhen.com/aone/
- http://a1mag.atari.org
-
-
- Visit the Atari Advantage Forum on Delphi!
- http://forums.delphi.com/m/main.asp?sigdir=atari
-
-
- =~=~=~=
-
-
- A-ONE #0202 01/14/00
-
- ~ Amiga Resurrected?! ~ People Are Talking! ~ AOL-TV??
- ~ CES Panel: No e-taxes! ~ MS, Caldera Suit Ends ~ Pro-Elite For NUON
- ~ Win2000 Virus Detected ~ Lynx Games For Songbird ~ Nyko NUON Gamepad
- ~ MS Loses Temps Appeal! ~ MS Break-up Favored! ~ Acclaim's 'Tee Off'
-
- -* Gates Gives Reins To Ballmer! *-
- -* AOL Buys Time-Warner In Stock Deal! *-
- -* AOL To Continue Open Access Fight, Or Not? *-
-
-
- =~=~=~=
-
-
-
- ->From the Editor's Keyboard "Saying it like it is!"
- """"""""""""""""""""""""""
-
-
-
- Okay, winter had to show up here in New England eventually!! But, it was
- nice while it lasted - 303 days since the last time there was any measurable
- snow in this area! And man, it's been _cold_ the last few days!
-
- How about the computing technology headlines this past week! America Online
- Buys Time Warner?! Bill Gates steps down as CEO of Microsoft?! Wow! Not
- even in my wildest dreams would I have imagined these two events happening!
- I guess if you're going to start of the year 2000 with a bang, you may as
- well make it a loud one! The times...they are a-changin'!
-
- The AOL/Time-Warner deal is something that really woke me up. Most of us
- have been using our systems (Atari or otherwise) for many years now for
- telecommunications. From the days of the local BBS to places such as
- CompuServe, Delphi, and GEnie - to Prodigy - to AOL, and more. The internet
- is certainly becoming more and more a focal point these days. It appears
- that those who don't get involved with it will be left behind. Who knows
- where this will take us!
-
- Until next time...
-
-
-
- =~=~=~=
-
-
-
- PEOPLE ARE TALKING
- compiled by Joe Mirando
- jmirando@portone.com
-
-
-
- Hidi ho friends and neighbors. Well, this is another week when nothing
- comes to mind for my column intro. I hate when that happens. I mean, you
- folks read this column for a reason, right? The least I can do is to have
- something of worth to add to all the stuff that other people have provided
- via the UseNet.
-
- I may not always have something spiritually uplifting or socially relevant
- to add, but I always speak my mind. It's just that, at the moment, my mind
- has laryngitis.
-
- At any rate, it's been another busy week. Y2K problems have given way to
- other concerns... all of them, of course, urgent.
-
- For any of my friends who happen to read this column, please accept my
- abject apologies for not corresponding lately. As much as I promise myself
- that I'll make the time to get in touch, I just can't seem to make it
- happen. I'll keep trying if you promise not to hold my protracted silence
- against me.
-
- For the rest of our readers, I have a bit of a treat...
-
-
- The intro part of the column is over. <grin>
-
-
- >From the comp.sys.atari.st NewsGroup
- ====================================
-
-
- Artur Stachon asks:
-
- "How come 90% of Atari Falcon demos won't work on VGA monitor ? What do I
- need to do to see them on my VGA monitor ? I am sick of little Atari ST
- monitors - can't stand them ! Is there any emulator that would make
- Falcon see my VGA monitor as Atari monitor or whatever needed so I can
- see Falcon demos ? It won't work in "ST compatible modes" I tried already.
- Also, is there any good emulator except "Dawnwards" to play STe games on
- Falcon ? I tried with TOS ROM switching program to make Falcon behave like
- STe but it always re-boots and overwrites all."
-
- Fredrik Egeberg tells Artur:
-
- "The reason why most demos only run in RGB is because we (the democoders)
- at least in the beginning mostly had RGB monitors or TVs.. and coding on
- RGB is somewhat "easier".. this is related to the fact that most demos run
- their effects not in 320*200 or so but in 320*100 or similar, the falcon
- isn't fast enough to make it in 320*200.. so on RGB you can set 320*100 and
- "stretch" the pixels (line doubling) vertical.. to make a 320*100 cover
- the whole screen.. this is done by hardware.. on VGA the same isn't
- possible unless you use 100Hz frequency.. but many older VGA monitors
- cannot cope with 100Hz correctly, hence the distorted image on many demos on
- VGA monitors.
-
- These days most of us make demos VGA and RGB compatible though. I prefer
- demos on RGB.. since you know it will work on TVs and RGB monitors.. and
- you don't have to bother about line-doubling pixels yourself.. but VGA is
- of course easier on your eyes since you don't have interlace mode.
-
- One way to get around must be to get a multisync capable of RGB signals to
- watch both RGB and VGA demos.. I heard the NEC 3D is one cool (old)
- monitor able to cope with many different signals.."
-
- Clayton Murray asks about his removable hard drive:
-
- "I just got a Syquest "Syjet 1.5" (1.5gig removable cartridge SCSI drive).
- I hooked it up to my Falcon, partitioned it, and copied most of my IDE
- drive's contents to it. So far, everything is fine. Now, I'm ready to
- remove the cartridge and shut everything off. Surprise!, it won't eject.
- It beeps once and I can hear it click a few times, then nothing. The manual
- says I can remove it by hand after it's been off for 45 seconds, but I'd
- really like to get it working RIGHT. It also says if the cartridge won't
- eject, it's because it is "locked". Then it goes on to say you have to use
- the software included on a floppy in order to "unlock" the drive.
- Aaaarrrgghhh! I DON'T HAVE A !@#*%! PC COMPUTER, so the software is
- useless.
-
- I suspect that there must be someone in this NG who has figured out how to
- get around this. I'm using Falcon/ TOS 4.04/ ICD hard drive software and
- utilities. Any ideas?"
-
- "Galen" tells Clayton:
-
- "I know this isn't what you want, but Syquest drives are designed to keep
- the disk inside the drive mechanism. I'd just leave the disk in the drive
- and have a 1.5GB HD."
-
- Clayton tells Galen:
-
- "You're right, it's not really what I wanted, but it's appreciated anyway.
- Actually, I found (I think on their web page) some info indicating it was
- not a good idea to leave the cartridge in the drive. Maybe it's just a
- safety precaution in case you move it, etc. Also, if you have more than
- 1 cartridge, you of course have to eject to switch between them. Their web
- page also had a whole system of info dealing with cartridges that are
- afraid to come out of their shells.
-
- My drive is working fine now. The cartridges eject like they are supposed
- to. I don't know why it was misbehaving earlier. Just one of those
- mysteries."
-
- Wayne Booth adds:
-
- "I had a syjet that when I first started using it, the eject mechanism
- would lift the cartridge but it wouldn't eject. After I worked it a bit
- (lifting and releasing and ran the drive a bit) it finally started
- ejecting. I suspected that possibly the lubricant was a bit sticky (from
- age or temperature or maybe the initial viscosity of the lubricant was too
- high) and it was causing the sticking. As it was exercised a bit and
- warmed up, then it started working and I haven't had a problem since."
-
- James Smith puts his own experiences into the mix:
-
- "I had always switched on the SyJet before inserting the cart. When I was
- at PMP, my SyJet was passed from machine to machine without ejecting the
- cart; the result was bad sectors and a lot of problems getting the cart to
- reformat !"
-
- Jerry Martin asks for info about fonts:
-
- "Where can I find bitmap fonts which I could use with NVDI 5.03 as a system
- font. I am using the supplied Monaco font, but are there any others
- available/suitable?"
-
- John Logan tells Jerry:
-
- "This is digging deep into memory (mine, not the computer's) but I _guess_
- that any GEM font will do. The PD libraries must be full of these. Failing
- that FontKit will convert Signum fonts to GEM fonts.
-
- Myself I never see any reason to change from the standard Atari font - it
- is clear and readable and looks OK."
-
- Joergen Bak adds:
-
- "Any TTF or PS1 font will do. There are lots on the Internet.
- Try a search for font."
-
- In my experience, this isn't exactly true. Joergen should have said "Any
- TTF or PS1 font THAT HAS ALL 256 CHARACTERS MAPPED will do."
-
- Andy Blakely asks about control panels:
-
- "Okay, I've heard people mention XCONTROL and ZCONTROL, among others.
- So what's the difference between all of them? Are there different ones
- for different systems?"
-
- John Whalley tells Andy:
-
- "The original Atari control panel was a simple accessory with just a few
- settings. This is way too restrictive, so they introduced Xcontrol,
- (eXtended/eXtendable control panel?). This uses modules (CPXs - Control
- Panel eXtensions) and seems to work pretty well on most machines/OSes.
-
- All the other options are "improvements" on Xcontrol, some of which
- support extended CPXs ( ECPXs, which can have bigger windows etc). I'm
- not sure which do and which don't, except that Zcontrol does support
- them (they're rare, though).
-
- Zcontrol is apparently not y2k compliant, so forget it.
-
- COPS takes a slightly different approach and relies on a multitasking OS
- for this (so forget vanilla TOS): you can use it like Xcontrol, or you
- can set it up to run, make the settings and quit after startup. You can
- also double-click a CPX directly from the desktop to run it if COPS is
- installed. Some people have had trouble with some versions of it, but I
- use 1.06 and it seems pretty stable to me. I suspect it's happier under
- MagiC than under MiNT.
-
- The only other one I know of is the second version of the Freedom
- replacement file selector. I think this supports ECPXs too. This seemed
- to have a whole lot of its own troubles as it allegedly uses some dubious
- programming techniques to do its stuff and can render some systems
- unstable.
-
- There may be others, but these are all I know of.
-
- Boils down to a choice between Xcontrol and COPS, the latter only being
- an option if you have a multitasking OS.
-
- Oops, apologies: it's not Zcontrol which has a y2k problem, but Neocontrol
- (which I *presume* has something to do with Neodesk). Comes of relying on
- my memory...
-
- Other than the y2k problem (mentioned in a recent post here - it wouldn't
- set a 00 date for someone, when Xcontrol would) I know nothing about
- Neocontrol."
-
- You know, one of the coolest things about the UseNet and the internet
- in general is the fact that YOU can help other people with their
- problems by simply relating your experiences. Take a look at this...
-
- TJ Andrews, a new internet surfer, posts:
-
- "Since Delphi decided to drop dialup access via SprintNet/Tymnet, I've been
- forced to go to the Internet to stay online. Right now I'm trying to
- master the use of Newsie 0.94. I've been using email for over a week, and
- figured out getting and reading newsgroup articles earlier this week.
- (Thanks, Joe M., for your vital assistance in setting up STinG!)
-
- This message serves two purposes. First, it's a test to see if I have
- Newsie's Offline posting procedure correct. Second, since it seemed such a
- waste to simply send a useless test post, I thought I'd ask a question.
-
- Once I have newsgroup posting (and follow-up) down, I'd like to work on ftp
- setup. Could anybody give me some suggestions for some good ST ftp sites,
- and please, if possible, tell me the information I need to set them up in
- Newsie?
-
- Any help I can get would be greatly appreciated."
-
- Brian Van Tilborg tells TJ:
-
- "Good, I hope you have figured out how to expand and contract the Newsgroup
- threads with the + and - Key or you may not see this until you start
- deleting your original post:-).
-
- So welcome aboard.
-
- To use NEWsie's FTP.
-
- An Example
-
- 1) FTP pull down Menu
- 1a) "Select Server"
- Should be a short list of servers that come with NEWsie.
- Such as
-
- ftp.primenet.com
- Highlight this by clicking once.
-
- 2) "Edit Server" from pull down Menu.
-
- Should see...
-
- 2a)Server:ftp.primenet.com
- 2b)Logon: anonymous
- 2c)Password: youremailadress@here.com
-
- Now you are done. If you double click on the ftp site you want in the
- Server Window with the list of ftp sites , you will be on your way.
-
- 3) "Add Server"
-
- Same as above except you write in the NEW Server address you have found.
-
- At http://www.umich.edu/~archive/atari
- Hallvard Tangeraas has an article on using ftp. It is worth reading.
- Should be in the networking/internet section.
-
- I also recommend you go to
-
- http://www.geocities.com/SiliconValley/Bay/8745
-
- Here you can find a list of FTP sites and some good files to be downloaded
- via ftp. If you type the URL in NEWsie, this site is NEWsie friendly.
- If you go to the preference window and turn "Autobuffers" on, then you
- should be able to double click on the above URL and go directly to the site
- via NEWsie.
-
- The little ftp site is either ftp.sn.no or ftp.sol.no I can't remember, but
- one works with NEWsie and one doesn't and there are some must have
- utilities that Halvards put there.
-
- You should be able to doubleclick on the ftp site from the webpage in this
- case and NEWsies FTP functions will take over.
-
- That http site, is possible the best when just getting started on the net
- and looking for Atari stuff. Well organised and Quick. I don't know how
- current the links are anymore as I don't know how much effort is still
- being put into maintaining the pages, but I was there last month and it
- still looked like it was being maintained.
-
-
- Here is a good ftp site to add to your list.
-
- 193.190.204.128 or you can type in
- chapelie.rma.ac.be
- if you prefer.
-
- This is the Belgian Ftp site.
-
- Unless otherwise stated most ftp sites operate with anonymous and
- email address as password and logon. Again the ftp article covers this very
- well.
-
- The Umich http archives are huge.
-
- If you need to see what is happening with ftp, I suggest you OPEN the LOG
- window. Here you will see the activity of the FTP server and list of
- commands and such and it will give you more information. This LOG file is
- also written to disk. ONLY ONCE, and then it overwrites itself each time
- you start NEWsie. So if you want to look at your LOG file after you have
- exited NEWsie, don't restart NEWsie because that log file, the one written
- to disk with your last session, will be overwritten with the next session.
-
- I hope I haven't left anything out."
-
-
- Well folks, that's it for this time around. Tune in again next week, same
- time, same station, and be ready to listen to what they are saying when...
-
- PEOPLE ARE TALKING
-
-
-
- =~=~=~=
-
-
-
- ->In This Week's Gaming Section - Songbird Acquires Lynx Games!
- """"""""""""""""""""""""""""" Pro Elite! Game Controller!
- Nyko GamePad For NUON!
- 'Tee Off' For Dreamcast!
-
-
-
- ->From the Editor's Controller - Playin' it like it is!
- """"""""""""""""""""""""""""
-
-
-
- I have to tell you, I've been having a ball re-living my experiences with
- Leisure Suit Larry! I've completed the first three games in the collection
- so far. These were games I played over 10 years ago on my ST. They're just
- as good now as they were then! I have now skipped a couple and I'm playing
- the 7th game of the series. Wow, you wouldn't believe the advances to this
- game. In earlier versions, you typed short phrases to have the main
- character, Larry Laffer, do certain things. Any "interaction" between
- characters were displayed as dialog 'balloons'. Not any more! The
- characters talk, have conversations, and are more animated. No longer do
- you make your character "walk" from one place together (although walking
- isn't totally eliminated). Bring up a map, click on it, and Larry shows up
- at that scene. The game plays faster this way! It's a blast. If you
- enjoyed Leisure Suit Larry in the "old days", and now have a PC or newer
- Mac, grab this collection of Leisure Suit Larry! And I haven't even tried
- the Space Quest collection yet!!
-
- Until next time...
-
-
-
- =~=~=~=
-
-
-
- ->A-ONE's Game Console Industry News - The Latest Gaming News!
- """"""""""""""""""""""""""""""""""
-
-
-
- Hot Products Inc. Announces Pro Elite Controller
- for NUON First Quarter 2000
-
-
- Hot Products Inc.com Monday announced at last week's Consumer Electronics
- Show, in Las Vegas, its plan to launch the Pro Elite, a retail edition NUON
- enhanced game controller.
-
- The new controller is officially licensed for NUON interactive consumer
- products by VM Labs Inc., of Mountain View, Calif. HPI is one of only two
- licensed suppliers, for this retail version NUON enhanced controller.
-
- HPI has engineered the Pro Elite to compliment the design styling of
- today's consumer electronics, including popular DVD player consoles. HPI is
- targeting the Pro Elite to the consumer who is likely to purchase a NUON
- enhanced DVD player as part of their total audio and visual entertainment
- system.
-
- The high profile design of the Pro Elite for NUON enhanced DVD players
- appeals to the sophisticated and discriminating game player. It will be a
- high quality offering, with an innovative ergonomic contour design,
- suitable for both children and adults alike. The Pro Elite will support an
- optional vibration mode and optional memory cards.
-
- It will be digital and analog compatible, incorporate a generous 12-foot
- cable, and will be compatible with all NUON enhanced products.
-
- Hot Products Inc.com will exploit the extraordinary sales potential for the
- NUON platform, and plans to launch other peripherals and accessories over
- the next 12 to 24 months. NUON is an exciting new technology platform that
- will continue to grow for years to come, as it replaces the traditional Set
- Top box and VHS formats as the industry standard around the world.
-
- Hot Products Inc.com plans to launch the Pro Elite for NUON enhanced DVD
- players during the first quarter of 2000, to be sold worldwide with a MSRP
- of under $30 U.S.
-
- NUON has the speed and power to transform a DVD player into an interactive
- fun-center that will entertain the whole family. NUON enhanced digital
- video devices bring the television to life with interactivity in the form
- of games, educational software, interactive movie content and more. Future
- NUON enhanced features include Internet connectivity and web-enabled movie
- experiences.
-
- The NUON media processing technology replaces the MPEG decoder chip
- currently found in digital video products. Analysts predict that digital
- video will supersede the current analog method over the next few years, and
- NUON is poised to become the new standard for interactive digital home
- entertainment.
-
-
-
- NYKO Introduces Gamepad for NUON-Enhanced DVD Players
-
-
- NYKO Technologies Inc., a leading manufacturer of video game accessories,
- debuted one of the industry's first video game controllers designed
- specifically to enhance the interactive capabilities of NUON technology.
-
- NYKO is among a select few companies that are approved by VM Labs Inc. to
- supply licensed controllers and accessories for NUON. NUON technology is a
- new multimedia engine that will be embedded into next-generation digital
- video products such as DVD players and set-top boxes.
-
- Named the NYKO DV Devil, this game controller includes upgraded components
- that will enhance the interactivity of NUON-based home entertainment
- products. The dedicated controller will allow consumers complete
- flexibility with new interactive game titles that will be released for the
- NUON format.
-
- DV Devil's ergonomic styling provides a unique look that will set it apart
- from traditional console and PC controllers.
-
- NUON multimedia technology will allow users to enjoy high-performance video
- games, educational and reference applications, in addition to the standard
- movies and audio discs playable on current DVD systems. Samsung's DVD-N2000
- DVD player, scheduled for spring shipment, will be among the first products
- incorporating the new media processor.
-
- NYKO anticipates strong market interest in the NUON-enhanced digital video
- products as they roll out to market, according to vice president, sales and
- marketing, Robert J. Rienick. DV Devil is just the first product by NYKO to
- be adapted to NUON.
-
- The accessory maker plans to add other products to its NUON line as the
- platform gains market penetration, including memory cards, a light gun,
- vibration pack, extension cables and other accessories.
-
- ``VM Labs continues to develop strategic relationships with top consumer
- electronics companies, which bring value and creativity to the NUON
- platform and benefit consumers," according to Donald A. Thomas Jr., VM
- Labs director of peripheral licensing.
-
- ``The NKYO design team has been one of NUON's biggest supporters since its
- inception, and we are pleased to confirm that they have been the first to
- apply their experience in game technology to enhance NUON-based products.
- We feel that NYKO's controllers and accessories will complement the
- interactive experience of NUON-enhanced DVD movies and games."
-
- ``NYKO is entering the year 2000 after an exceptionally strong year," said
- Robert J. Rienick, vice president, sales and marketing for the firm. ``Our
- support of NUON-enhanced products continues our show of strength as we move
- into new product categories, demonstrating our goal to grow as an
- entertainment company, and showing our expansion plans for new platforms
- such as DVD.
-
- ``We are very impressed with VM Labs' NUON multimedia technology and look
- forward to developing products together."
-
-
-
- Acclaim's Tee Off Scores A Hole-In-One As the
- First Golf Title For The Sega Dreamcast
-
- Addictive Gameplay Makes Tee Off
- A Must-Have for Video Game Golfers
-
-
- Acclaim Entertainment, Inc. Wednesday announced that Tee Off, the first
- golf title for the next-generation Sega Dreamcast, has shipped to stores
- nationwide.
-
- ``Tee Off brings addictive golf gameplay to the most advanced console
- system to date," said Rick Mehler, marketing manager at Acclaim
- Entertainment. ``With arcade-style action, stunning graphics, and precision
- golfing, Tee Off is a must-have Sega Dreamcast title for golf fans."
-
- Tee Off lets gamers play as one of 15 talented anime golfers on a quest to
- become the number-one golfer. Each unique character has its own wide range
- of skills and can control shots by adding topspin, backspin, hooks, and
- slices. Gamers can choose from five different levels of play: beginner,
- amateur, semi-pro, pro and senior. Golfers then hit the greens on five
- challenging courses in Africa, America, Australia, Japan and Scotland. Tee
- Off also features six game modes that will test even the best golfer's
- skills: World Tour, Free-Round, Match Play, Stroke Play, Point Play and the
- futuristic Gate Ball. Also included is a multiplayer mode up to four
- players.
-
-
-
- =~=~=~=
-
-
-
- ->A-ONE Gaming Online - Online Users Growl & Purr!
- """""""""""""""""""
-
-
-
- Songbird Press Release
-
-
- SONGBIRD ACQUIRES UNRELEASED LYNX PROPERTIES FROM BEYOND GAMES
-
-
- January 10, 2000
-
- For immediate release:
-
- ROCHESTER, MN -- Continuing the trend of supporting orphaned Atari
- platforms, Songbird Productions recently acquired full rights and source
- code to three unreleased Lynx properties from former Lynx and Jaguar
- developer Beyond Games. The three properties are: Cybervirus, Ultra
- Vortex, and Mechtiles.
-
- Cybervirus is an incredible first-person perspective, mission-based
- action game based on the Lynx BattleWheels engine set in an apocalyptic
- future where rogue computers and virus-infected robotic warriors
- threaten the very survival of humanity. Ultra Vortex, the original Lynx
- version of what became Ultra Vortek on the Atari Jaguar, is an awesome
- two-player fighting game. Mechtiles is a multiplayer game of giant robot
- combat, also based on the award-winning BattleWheels engine.
-
- Carl Forhan, owner of Songbird Productions, said, "Beyond Games has been
- enthusiastic about getting these properties transferred so that Songbird
- may pick up where they left off. I'm excited to have the opportunity to
- finish up these games and publish them for the benefit of Lynx fans
- everywhere."
-
- At press time, Songbird anticipated that Cybervirus would be the first
- game completed and published later in 2000. The other games will be
- evaluated for their relative completeness before being put on schedule.
- All the acquired games are the sole property of Songbird Productions.
-
- To keep up to date with the latest news at Songbird Productions, be sure
- to visit the company web site at http://songbird.uni.cc, or send an
- email to forhan@millcomm.com.
-
- Copyright 2000 Songbird Productions. All rights reserved. This article
- may be reprinted in its entirety.
-
-
-
- =~=~=~=
-
-
-
- A-ONE's Headline News
- The Latest in Computer Technology News
- Compiled by: Dana P. Jacobson
-
-
-
- Microsoft's Gates Gives CEO Role to Ballmer
-
-
- Microsoft Corp. said Thursday co-founder Bill Gates was giving up the chief
- executive position at the software giant and named long-time No. 2 Steve
- Ballmer to replace him in the job.
-
- Gates, who has served as CEO since he co-founded the company 25 years ago,
- will remain chairman and take on the role of chief ``software architect."
-
- ``I'm returning to what I love most -- focusing on technologies for the
- future," Gates said at a news conference. "Steve's promotion will allow
- me to dedicate myself full-time to my passion -- building great software
- and strategizing on the future, and nurturing and collaborating with the
- core team helping Steve run the company."
-
- Ballmer, in one of his first declarations as chief executive, said it
- would be ``reckless and irresponsible of anybody to try and break up this
- company ... a disservice to consumers."
-
- The news conference was called after a day of published reports and
- intense rumors that the Justice Department and states would push for a
- breakup of the world's leading software company.
-
- Gates has led the Redmond, Wash.-based company through a turbulent recent
- history, capped by Judge Penfield Jackson's ruling last November that
- Microsoft used monopoly powers to harm consumers, competitors and other
- companies.
-
- Gates said he now would concentrate on issues of ``software architecture"
- and his role as chairman overseeing the company's operations. He said he
- remained committed to devoting his full time to the company.
-
- Gates said concentrating on the chairman's job would ``allow me to spend
- almost 100 percent of my time on these new software technologies."
-
- Microsoft said the transition would take place surrounding the release of
- its new Windows 2000 operating system -- the successor of the NT system,
- aimed at office and professional users.
-
- Ballmer said he planned to concentrate on meeting "heightened competition"
- in the market that has emerged with the growth of non-PC computing and the
- Internet.
-
- Gates also said Ballmer would become a member of the Microsoft Corp. board
- of directors, effective Jan. 27.
-
-
-
- AOL, Time Warner Agree to Largest Merger Ever
-
-
- Top Internet services provider America Online Inc. will buy Time Warner
- Inc., the world's biggest media company, for $160 billion in stock, the
- companies said on Monday, joining the power of new and traditional media
- assets through the largest merger ever.
-
- Shares of the two companies soared after news of a deal that will create
- an all-media empire that reaches from magazines and movies into cyberspace,
- and promises to remake the landscape of how people around the world
- communicate and are entertained and informed.
-
- Enthusiasm for the proposed merger swept up shares of major media and
- technology companies in Europe and the United States, where it sparked a
- broad-based rebound in the Nasdaq stock market, especially among Internet
- and cable TV companies.
-
- The deal marks the passing of the baton from old media to new, analysts
- said. It sets the stage for the next evolution of the Internet as
- distinctions between telecommunications, media and technology industries
- blur into a single industry.
-
- Jeff Kagan, an independent telecommunications analyst in Atlanta, said the
- merger would speed the day when consumers may get telephone service,
- entertainment, news and information from a single source -- via Time
- Warner cable Internet networks.
-
- ``Everything is being rewritten from a sub-atomic level," he said.
-
- While an AOL rival such as Microsoft Corp. or Yahoo Inc. might have the
- financial flexibility and strategic interest in acquiring Time Warner,
- there was no sign a bidder was preparing to emerge, takeover traders said.
-
- Prior to the announcement, the biggest merger on record was MCI WorldCom
- Inc.'s agreement to buy Sprint Corp. for $115 billion, although the current
- $132 billion hostile bid by British-based cellular phone company Vodafone
- for Germany's Mannesmann would rank higher.
-
- America Online Chairman and Chief Executive Steve Case, 41, was named
- chairman of the merged companies and Time Warner Chairman and Chief
- Executive Gerald Levin, 60, will serve as chief executive, the companies
- said in a statement.
-
- ``It gives me great pleasure to welcome the suits from Virginia here to
- New York," Levin joked at a carefully staged news conference in which the
- Manhattan media mogul appeared tieless in a rumpled tweed coat while AOL
- executives suited up in pinstripes.
-
- The combined company is to be known as AOL Time Warner and trade under the
- ticker symbol ``AOL."
-
- ``This is the first time a major Internet company has merged with a major
- media company and the possibilities are endless," Case said in a
- conference call with analysts as he touted the advertising and electronic
- commerce prospects of the deal.
-
- The takeover will create a media conglomerate with unprecedented reach
- across traditional and new media, allowing the delivery of programming
- from Time Warner's stable of brands onto the Web and giving AOL access to
- Time Warner's U.S. cable television network to offer high-speed Internet
- access.
-
- AOL Time Warner brings together Time Warner's Time, CNN, Warner Bros.,
- People, HBO, Sports Illustrated, Cartoon Network, Warner Music Group,
- Fortune, Entertainment Weekly and Looney Tunes with America Online's AOL,
- CompuServe, Netscape, ICQ youth-oriented messaging network, Digital City,
- and Moviefone.
-
- Under a fixed exchange ratio, Time Warner shareholders will receive 1.5
- shares of AOL Time Warner for each share of Time Warner stock they own
- while AOL shareholders will receive one share of AOL Time Warner stock for
- each share of AOL they own.
-
- AOL shareholders will hold 55 percent of the merged company, while Time
- Warner shareholders will hold 45 percent.
-
- Terms of the deal took into account the fact that AOL's market
- capitalization ahead of the announcement was twice the size of Time
- Warner's. That was weighted against the reality that Time Warner's strong
- cash flow is roughly four times larger than that of America Online.
-
- ``Time Warner provides AOL with an important missing link," Bear Stearns
- analyst Scott Ehrens said in a research note. He argued that the
- importance of the deal was how it provided AOL with access to Time
- Warner's high-speed cable television network, which reaches 20 percent of
- U.S. cable TV subscribers.
-
- The stock had been hurt in recent months by concerns that AOL would be
- shut out of the emerging market for high-speed Internet services.
-
- The merger will be accounted for as a purchase transaction and is expected
- to be add to America Online's cash earnings per share before the
- amortization of goodwill.
-
- Lehman accounting expert Robert Willens estimated the deal would generate
- a staggering $158 billion in goodwill write-offs. Amortized over a 20-year
- period, that would dilute earnings per share by $2 a year, wiping out AOL
- Time Warner's expected profits for years to come, he said.
-
- Securities analysts had forecast AOL would only generate 32 cents per
- share during its fiscal year ending June 2000, according to First
- Call/Thomson Financial, which tracks broker estimates. Separately, Time
- Warner was expected to produce earnings per share of 61 cents during
- calendar year 2000.
-
- But Wall Street appeared to brush off that concern, focusing instead on
- the deal's cash-generating power, the common barometer used to measure the
- performance of debt-laden media companies.
-
- UBS Warburg analyst Mike Wallace cautioned that AOL investors may have
- second thoughts about the deal as they mull Time Warner's slower growth
- rate -- an issue that cast a cloud over previous marriages between
- traditional and new media.
-
- The merger with America Online comes exactly 10 years to the day after
- Time Inc. merged with Warner Brothers in deal that created the world's
- largest media conglomerate.
-
- The latest transaction, which is subject to certain closing conditions,
- including regulatory approvals and approval by America Online and Time
- Warner shareholders, is expected to close by the end of 2000.
-
- The deal was only a few hours old when a phony press release began making
- the rounds on the Internet that jokingly referred to the combined company
- as eLeviathan.
-
- Antitrust experts said America Online Inc.'s proposed purchase of Time
- Warner appears likely to clear antitrust agencies, but consumer groups
- said they opposed the merger because it would reduce AOL's political drive
- to force open cable networks to alternative programming from other
- networks.
-
- Tom Pilla, a spokesman for AOL rival Microsoft, said the massive deal was
- the latest demonstration of how vital the Internet economy remains: ``The
- merger today is further evidence of just how competitive and dynamic this
- industry truly is."
-
-
-
- AOL Aims To Continue Open Access Fight
-
-
- In the middle of the madness yesterday over America Online's merger with
- media giant Time Warner, the Internet giant's chief legal counselor took
- time out to make a call to Capitol Hill.
-
- In a bold move for a company that had just agreed to purchase the nation's
- largest cable company, AOL's George Vradenburg assured congressmen that the
- company still supports legislation aimed at opening high-speed cable
- networks for use by independent Internet service providers (ISPs).
-
- It was a necessary call. With speculation rampant that AOL planned to pull
- out of the expensive fight for open access, the firm needed to show it was
- still willing to push for national legislation to ensure ISPs have a chance
- to join the broadband revolution.
-
- Cable operators like AT&T have spent billions of dollars to upgrade their
- networks to support advanced services like high-speed Internet connections.
- Companies like AOL, GTE and other telephone and Internet firms have fought
- to gain access to these channels, fearing they would be left behind as more
- consumers clamor for fast and inexpensive Net access.
-
- For the most part, the company seems to have put its compatriots' fears
- to rest.
-
- "They told us that AOL is still committed to the OpenNet (Coalition),"
- said Brianna Gowing, a spokeswoman for GTE, AOL's largest ally in the
- cable access battle. "They are committed to open access in the new
- company."
-
- The OpenNet Coalition is a lobbying group made up of ISPs and telephone
- companies that are pushing for equal access to high-speed cable networks
- owned by cable giants like AT&T, Time Warner and others.
-
- A number of questions still remain, including whether AOL will even be
- able to follow through on its promises to open up its own new cable
- network. Until those questions are answered, the megamerger has thrown
- the hard-fought battle over cable networks into flux.
-
- Along with GTE, MindSpring Enterprises and others, AOL has spent millions
- of dollars fighting to open AT&T's high-speed cable lines for use by
- outside ISPs. Currently, only affiliates of cable companies like
- Excite@Home or Road Runner are allowed to offer Net service over
- high-speed cable networks.
-
- The war over open access has been waged in Congress, in the courts and at
- the local government level. So far, ISPs have won only a handful of
- battles at the local level, but have yet to win actual access to any
- large cable network.
-
- Nevertheless, AT&T has said it would open its own cable systems for use
- by outside ISPs as soon as its exclusive contract with Excite@Home runs
- out in 2002.
-
- Details on how this transition will work are few, but open access
- proponents still welcomed the news as a step in the right direction to
- increase the spread of broadband Net access.
-
- But following the merger announcement yesterday, many open access
- opponents thought the protracted battle was essentially over.
-
- "I think you will see AOL go away as an agitator in the regulatory arena
- against us," Excite@Home chief executive George Bell said in the
- aftermath of the merger.
-
- Excite@Home, the cable Net affiliate of AT&T, Cox and Comcast, has borne
- the brunt of the open access battle. Investors have shied away from the
- company's stock during some of the more contentious open access debates,
- and regulatory battles have slowed the deployment of its high-speed
- services.
-
- That optimism may be misplaced, however--at least in part.
-
- Conflicting views have emerged from the new AOL Time Warner camp. At a
- press conference yesterday, Time Warner CEO Gerald Levin said the
- partners would try to end attempts to bring government power to bear on
- cable companies.
-
- "Essentially, we're going to take the open access issue out of Washington
- and out of City Hall, and put it into the marketplace and into the
- commercial arrangements that should occur to provide the kind of access
- foràmultiple ISPs," Levin said during a press conference.
-
- But AOL has since amplified that statement, saying that it will only
- retreat from the regulatory battle if all other cable companies join to
- open networks for use by other ISPs. Otherwise, it will continue with its
- push for national legislation, and perhaps--but not certainly--for local
- regulations.
-
- "AOL is committed to staying on as a member of the OpenNet Coalition,"
- said Rich Bond, one of the directors of the Washington-based lobbying
- group that has led the ISPs' charge on Capitol Hill. "They know full well
- what our mission is, which includes a local, state and federal approach.
- They had a chance to say they were uncomfortable with that, and they did
- not."
-
- Part of the ambiguity may lie in America Online's difficulty in
- delivering on promises to open up Time Warner's networks immediately to
- other ISPs.
-
- Time Warner's high-speed cable Net service is provided by Road Runner, a
- semi-independent company in which the media giant owns just a 36 percent
- stake. MediaOne--which is now merging with AT&T--owns another 35 percent,
- with the remainder controlled by Microsoft, Compaq Computer and
- Advance/Newhouse.
-
- To open its high-speed networks to ISPs, AOL Time Warner would need a
- coalition of support from all its partners. None of the companies so far
- have voiced an opinion in favor of open access, however.
-
- Nevertheless, the company has significant bargaining power. AT&T badly
- wants to provide local phone service through Time Warner's cable lines.
- The new AOL Time Warner could use that leverage to make a deal with Ma
- Bell, analysts say.
-
- "The AT&T-Time Warner agreement has not been resolved," noted Michael
- Harris, an analyst with cable research firm Kinetic Strategies. "I expect
- the new AOL Time Warner would push AT&T for carriage of AOL-branded
- broadband services as a condition."
-
- The other Road Runner partners are largely concerned with boosting use of
- broadband Internet service, and may well approve open access as a result,
- analysts added.
-
- GTE said it will continue with its own antitrust battle against AT&T,
- lobbying at the national and local level. The OpenNet Coalition as a
- whole is still behind the battle, representatives say.
-
- But until AOL turns yesterday's talk into tangible action, its partners
- and opponents will still be left with an uncertain view of their
- broadband future.
-
- "At this point we're still waiting to see what happens," GTE's Gowing
- said. "There's still a lot of things we don't know."
-
-
-
- Will Merger Shut Lid On Open Access?
-
-
- As media stocks soared and the folks at the newly minted AOL Time Warner
- Inc. toasted their futures, some feared Monday's behemoth merger could
- have dire consequences for extending cheap, high-speed Internet access to
- consumers.
-
- The reason: The deal may have co-opted one of the biggest supporters in
- the fight to force cable operators to open up their systems to other
- Internet providers -- just as telecommunications companies have been
- forced to open up their lines to other competitive long-distance carriers.
-
- So who is the ally that may be turning coat? It's American Online Inc.
- itself.
-
- "We think it sucks," said James Love, director of Ralph Nader's Consumer
- Project on Technology. "AOL has been a big hammer for open access, and
- this deal means they'll likely abandon that."
-
- The fight for open access primarily has targeted AT&T Corp., which has
- become the leading provider of high-speed cable modems by aggressively
- buying up cable-TV networks, most notably the giant TeleCommunications Inc.
-
- The company has come under fire for its reluctance to open up its lines to
- competing Internet service providers.
-
- Now, through its purchase of Time Warner, AOL will own its own cable
- systems, and some fear the fight for open access will no longer serve the
- company's interests.
-
- On Tuesday, however, AOL and Time Warner vowed to open what would be their
- vast cable system to online rivals.
-
- In so doing, they moved to take a debate over access to high-speed Internet
- pipelines out of regulators' hands and into the marketplace. Details were
- not offered.
-
- Jeff Chester, executive director of the consumer advocacy group Center for
- Media Education, said his biggest concern is that AOL has backed out of the
- public policy debate, preferring to tackle the issue through private
- negotiations.
-
- Calling AOL Chairman Steve Case the "Benedict Arnold of the digital age,"
- Chester said AOL had to buy its way into cable access. Companies that don't
- have that kind of money can't do that, he said.
-
- "Everyone who wants to compete on the Internet -- unless they're a close
- personal friend of Steve Case or (Time Warner CEO) Gerald M. Levin -- should
- be worried," Chester said.
-
- Mark Lemley, a professor at the University of California at Berkeley's
- Boalt School of Law, thinks federal regulators should approve mergers such
- as the one between Time Warner and AOL only if the companies agree to
- adhere to the open-access standards.
-
- Lemley, along with Harvard Professor Lawrence Lessig, has asked the Federal
- Communications Commission to add an "open access" requirement to its
- approval of AT&T's acquisition of MediaOne Group.
-
- "It will be interesting to see whether AOL changes its position on open
- cable access," said Lemley. "I hope they don't do that, but it's possible."
-
- AOL already has come under fire for its hypocrisy in the instant messaging
- wars. While the company was urging government agencies to adopt open-access
- laws, it was busy blocking competing technologies by Microsoft Corp. and
- others from taking advantage of its IM network.
-
- AOL did not immediately return calls seeking comment.
-
- Smaller ISPs and the trade groups representing them were more optimistic
- about the merger than some consumer advocates. Doug Hanson, CEO of
- Denver-based ISP Rocky Mountain Internet, said the move would boost
- open-access efforts.
-
- "AOL now has to open up Time Warner's cable system to all of us other ISPs,
- or they're going to be looked upon as hypocrites," he said.
-
- Hanson thinks the merger will make the FCC more likely to jump into the
- debate to ensure open lines because until now federal regulators looked at
- the issue as a fight between AT&T and AOL. Now the fight is between cable
- operators including AOL on one side and smaller ISPs on the other.
-
- "Without regulation, smaller ISPs cannot very well defend themselves
- against the giants," Hanson said.
-
- Cliff Staten, executive director of the Open Access Alliance of the Bay
- Area, agreed. "I think it's good news for open access," he said.
-
- So did Gary Schultz, president of the Multimedia Research Group in
- Sunnyvale, Calif. Schultz thinks that combining Time Warner's approximately
- 20 million cable television subscribers with AOL's 20 million members could
- double the number of consumers using broadband access by 2004.
-
- Dave McClure, executive director of the U.S. Internet Industry Association,
- said it's too soon to gauge the merger's effects on the industry, and that
- AOL has no choice but to continue the open-access fight.
-
- "It's very clear that were AOL to suddenly reverse its decision, it would
- lose credibility in Washington," he said. "Until you see evidence of that,
- I'd have a tendency to cut them a little slack."
-
- At least one major player in the open-access debate remained on the fence.
- OpenNet -- an open-access lobbying group backed by AOL's Case, MCI WorldCom
- and MindSpring -- called a press conference Monday, only to announce it
- hadn't finalized its statement and wouldn't take any questions.
-
- An hour later, the group issued a terse release saying, "We will seek
- negotiations with both AOL-Time Warner and AT&T, as well as the rest of
- the cable industry, to define how and when open access will be implemented,
- and we will continue to urge the federal government to make open access the
- rule for the entire cable industry."
-
- The group called AOL "a leading advocate for open access," and said the
- company would continue to be a member of the organization.
-
-
-
- AOL Offers Internet-TV Service
-
-
- America Online Inc. is offering a service that lets people use the Internet
- on their television sets, challenging Microsoft Corp.'s Web TV and other
- rivals seeking to build interactive TV businesses.
-
- The new service, called AOLTV, would be transmitted through cable set-top
- boxes made by Philips Electronics and Hughes Electronics Corp.'s DirectTV
- satellite television.
-
- AOL did not provide specifics on when the service would be available or
- how much it would cost monthly, nor did it give pricing for the
- equipment.
-
- AOLTV would allow users to exchange and view e-mail and instant messages,
- and browse the Internet. The company said Friday it would tell more about
- the service, including television programming, at a later date.
-
- The Dulles, Va.-based company has been moving aggressively to bolster its
- ``AOL Anywhere" strategy to extend its reach beyond the personal
- computer. In December, it bought MapQuest, a leader provider of maps on
- the Internet that helps users look up directions and can be used with
- hand-held computers. The company also has developed software to adapt its
- interactive calender and other features such as e-mailing to portable
- devices.
-
- Analysts say AOL has two goals with its AOL Anywhere program - to be
- among the first to take advantage of consumers' desire to be connected on
- the go and to encourage subscribers to stay online longer, which could
- allow the service provider to boost rates it charges companies for ads.
-
- AOL, fearing it could be denied access to parts of the high-speed
- Internet market, is currently lobbying regulators to force AT&T and other
- cable providers to sell it access to cable data networks at wholesale
- prices. Microsoft last year took a $5 billion stake in AT&T Corp. to ensure
- it has a place in high-speed cable access.
-
-
-
- Amiga's New Savior: Bill McEwen
-
-
- East of Seattle, at the foot of the Cascade Mountains, the Amiga computer
- system with half a million loyal followers has found its latest would-be
- savior.
-
- "This is about unification and creating something that developers can
- build upon," said Bill McEwen, the 37-year-old president and CEO of the
- newly formed Amiga Inc., from his home set amongst 200-foot-tall trees of
- Maple Valley, Wash.
-
- On Saturday at the Consumer Electronics Show, McEwen will make his first
- announcement regarding the group's plans for the Amiga with a major
- partner.
-
- Last week, McEwen and his Amino Development Corp. paid an undisclosed
- amount to Gateway Inc. for the Amiga trademark, technology and a license to
- the Amiga patents. While the amount of $5 million has been bandied about in
- press reports, the horse-riding Amiga chief said that figure misses the
- mark.
-
- McEwen and his 16-employee startup plan to continue to develop and support
- the latest version of the Amiga OS. Currently, he estimates that the
- platform still has anywhere from 350,000 to 500,000 devoted users -- most
- of whom are in Europe, with Germany being the crown jewel.
-
- He has received thousands of e-mails from developers and users offering
- free code and technical assistance, he said.
-
- While McEwen's group has a broad strategy for the system, he stressed that
- users shouldn't expect a roadmap for the Amiga operating system anytime
- soon.
-
- "We want to parcel out our information a bit at a time. At this point, we
- want to avoid creating too-high expectations," he said.
-
- He bought an Amiga in 1998, and hasn't gone back to other computers since.
- "My first response was the Amiga was dead," he said. "I was shocked to
- learn there were hundreds and hundreds of thousands of users out there."
-
- In the future, McEwen plans to morph the Amiga operating system into what
- he believes it does best: Remove the technological confusion from a device
- aimed at enhancing creativity.
-
- That's something that Windows and even the Mac have done a poor job at, he
- argued. "The difference between our visions: We truly want to enable and
- empower the home and home business," said McEwen. "My vision is a scalable
- OS in the home."
-
- McEwen also realizes the Amiga has to carve out a niche for itself
- quickly. Most computers are powered by Windows, the Mac OS and Linux.
- Meanwhile, start-ups such as Be Inc. are targeting the emerging market for
- so-called information appliances.
-
- "We have no time at all to do this," he said. "That's what originally
- prompted me to buy Amiga -- Gateway was just taking too long."
-
- Eschewing Silicon Valley, the company may move from Maple Valley to nearby
- Issaquah.
-
- But for Amiga users, any home would be welcome.
-
-
-
- No e-taxes, Says CES Panel
-
-
- Keep your mitts off the Net. That was the resounding message a Internet
- policy panel had for Congress at the Consumer Electronics Show Friday.
-
- "There should be no taxes on e-commerce at all," said Virginia Gov. James
- Gilmore, one of the government and industry officials sitting in on the
- panel. Gilmore is chair of the 19-member Advisory Commission on Electronic
- Commerce, which is trying to hash out a plan to fairly deal with taxing
- Web transactions.
-
- Instead of taxing e-commerce, Gilmore suggested abolishing the 3 percent
- telecom tax and holding back 1 percent of that tax to give to states as an
- incentive to help them get wired. In addition, Gilmore said the digital
- divide should be bridged with money that's currently earmarked for
- welfare.
-
- Local governments and many other governors have expressed concerns that
- the no-taxes plan will hurt services like fire departments and libraries
- as more commerce takes place online -- and therefore doesn't contribute to
- local coffers.
-
- Gilmore said he doesn't buy complaints from traditional, real-world
- retailers that e-commerce is ruining their business. For example, he
- pointed out that parking spaces were hard to find at the mall during the
- holiday shopping season -- an indication that people aren't abandoning
- physical stores. "Business is good and yet e-commerce is growing," Gilmore
- said.
-
- The advisory commission meets again in March.
-
- PSINet Inc. CEO Bill Schrader, who spoke after Gilmore, applauded the
- governor's plan, saying the potential of Internet taxes is his company's
- "single, biggest worry."
-
- Rep. Tom Bliley, R-Va., chair of the House Commerce Committee, also
- pointed to strong real-world sales as evidence that no new Internet taxes
- are needed, though he acknowledged it could be a problem in the future.
-
- In addition, Bliley criticized Clinton's plan to come down on
- e-pharmacies. Some online drug sellers have come under fire for selling
- people products such as Viagra even though they don't have prescriptions.
- Bliley said existing laws prohibit such sales, and the United States
- doesn't need extra federal regulation.
-
-
-
- Microsoft, Caldera Settle Anti-Trust Suit
-
-
- Software giant Microsoft Corp. said on Monday it settled an antitrust suit
- brought against it by Caldera Inc., ending a three-year legal battle.
-
- Although the terms of the settlement were confidential, Redmond,
- Wash.-based Microsoft said it would take a one-time charge against earnings
- of 3 cents a share in its quarter ending March 31.
-
- Caldera, based in Salt Lake City, Utah, filed the suit in July 1996 seeking
- more than $1 billion in damages.
-
- The small software company charged Microsoft illegally tried to maintain
- its monopoly in operating systems, the basic software needed to run
- personal computers.
-
- ``We are pleased to put this issue behind us," Tom Burt, an Microsoft's
- general counsel for litigation, said in a statement.
-
- ``Rather than litigating, we prefer to focus on building great software
- for our customers in this dynamic and competitive industry," Burt said.
-
- The case had been scheduled to go to trial on Jan. 17 after a federal
- judge denied in November an effort by Microsoft to narrow Caldera's
- complaint.
-
- Caldera said it was pleased with the result and would push the Linux
- operating system, an emerging rival to Microsoft's Windows platform.
-
-
-
- Microsoft Loses Appeal on Temporary Workers
-
-
- The U.S. Supreme Court on Monday rejected Microsoft Corp.'s appeal of a
- ruling that thousands of temporary and contract workers were eligible to
- buy discounted stock in the software giant.
-
- The justices let stand a U.S. appeals court ruling that greatly expanded
- the number of past and present workers who can participate in a
- class-action lawsuit against Microsoft over its lucrative employee stock
- purchase plan.
-
- Microsoft asked the Supreme Court to review the ruling that could cost the
- company millions of dollars, but the high court turned down the request
- without any comment or dissent.
-
- The lawsuit's eventual outcome could have widespread implications for many
- other companies that use temporary workers or independent contractors, an
- increasingly common business practice, especially in the technology
- industry.
-
- ``Microsoft has abused its immense power to cheat a large faction of its
- own workers out of the most basic benefits," said Elizabeth Spokoiny, one
- of the original plaintiffs.
-
- ``It will be a great relief to finally end this case and be able to say
- American high-tech workers will not tolerate exploitation," she said.
-
- Stephen Strong, a Seattle attorney for the plaintiffs, said in a statement
- that he hoped Microsoft ``will now make an active effort to correct its
- personnel practices and bring this case to an end after so many years."
-
- Microsoft spokesman Dan Leach expressed disappointment over the high
- court's decision not to review the case.
-
- ``We obviously are looking forward to putting this case behind us," he
- said. ``The decision really will have no impact from a practical
- standpoint because we continue to work with lawyers for the plaintiffs and
- the court to keep things moving forward."
-
- A federal district judge initially limited the class to just a few hundred
- workers employed at Microsoft from 1987 to 1990.
-
- But the appeals court ruled the class should cover any temporary or
- contract worker who worked 20 hours per week or more for at least five
- months in any year since the end of 1986 -- a class that could total well
- over 10,000 workers.
-
- The appeals court required Microsoft to prove which workers should not be
- included in the class as part of the hearings before a federal district
- court judge in Seattle to determine damages.
-
- Microsoft in its appeal urged the Supreme Court to restore "order to the
- law of employee benefits." It said numerous lawsuits have been filed in
- the last year on behalf of temporary agency employees or independent
- contractors claiming benefits from the company where they performed their
- services.
-
- It said the appeals court decision ``undermined the ability of district
- courts to manage class actions effectively" and contravened the grant of
- discretion under a federal rule to district courts to manage class-action
- lawsuits.
-
- The class-action suit, filed in 1992, claimed that Microsoft treated
- temporary and contract workers as permanent employees except for
- compensation.
-
- The lawsuit sought millions of dollars in gains from the employee stock
- purchase plans, which offer workers the opportunity to buy Microsoft stock
- at a 15 percent discount. The plans were not extended to temporary and
- contract workers.
-
- The Supreme Court in 1998 rejected an earlier Microsoft appeal in the
- case.
-
-
-
- U.S., States Favor Microsoft Breakup
-
-
- The U.S. government favors breaking up Microsoft Corp. to settle the firm's
- landmark antitrust case, people familiar with mediation talks taking place
- in Chicago said on Wednesday.
-
- The sources said that details of the remedy remain unclear, but it had
- emerged that the Justice Department and the 19 states involved in the
- case favor breaking up the company.
-
- The mediation talks began late last year under the supervision of Judge
- Richard Posner, chief of the United States Court of Appeals for the
- Seventh Circuit, who is acting in a private capacity.
-
- U.S. District Court Judge Thomas Penfield Jackson -- who is trying the
- case in Washington -- asked Posner to step in to mediate in the case
- after earlier attempts failed. The settlement talks began after Jackson
- found in early November, 1999, that Microsoft used monopoly power to harm
- consumers, competitors and other companies.
-
- USA Today reported earlier on Wednesday that the government favored a
- breakup of the company, giving specifics of the way the company would be
- restructured.
-
- A Justice Department spokeswoman said the USA Today report was inaccurate,
- without elaborating. ``The story is inaccurate in several important
- respects," the spokeswoman said. ``It does not accurately represent our
- views."
-
- Others familiar with the case said USA Today was correct in saying the
- government favored breaking up the company but incorrect in the way it
- characterized how the government wants the company to be restructured.
-
- Another Justice Department official said: ``The Justice Department will
- not discuss any aspect of the mediation process."
-
- A spokesman for Iowa Attorney General Tom Miller, who is leading the
- state's efforts in the case, said: ``We have not commented at all in this
- period where the judge has ordered mediation. We are not commenting."
-
- At a meeting in Jackson's chambers in Washington before the settlement
- talks began, Judge Jackson expressed concern about news reports that the
- states and the Justice Department were unable to agree.
-
- People familiar with the talks in Chicago said there did not appear to be
- significant disagreement now between the states and the Justice
- Department in the negotiations.
-
- A spokesman for Microsoft declined to comment on the mediation process.
-
- ``We're not going to speculate on what the government may or may not be
- thinking," said Microsoft spokesman Mark Murray. "We think it's
- completely inappropriate and counterproductive for anyone to be
- discussing the confidential mediation process."
-
- Murray said: ``Without commenting on mediation, we think any talk of
- breaking up Microsoft is completely unwarranted. There's nothing in this
- case that would support such a step."
-
- At this point in the case, the two sides are arguing over whether Judge
- Jackson's findings of fact show that Microsoft broke the nation's
- antitrust laws.
-
- The government has already submitted a brief arguing that the findings
- prove Microsoft did break the law. Microsoft replies on Jan. 18, with
- further filings by the two sides on Jan. 25 and Feb. 1.
-
- Jackson will hear oral arguments on Feb. 22. If he does find Microsoft
- broke the law, then he will likely hold yet another phase of the trial to
- determine remedies.
-
-
-
- Windows 2000 Virus Detected
-
-
- Windows 2000 won't come out for another month, but anti-virus software
- makers say they've found the first virus that targets Microsoft's
- forthcoming business operating system.
-
- The virus, known as the Win2000.Install or W2K.Installer virus, inflicts
- no damage, but can potentially point out conceptual vulnerabilities for
- future virus authors, said researchers at anti-virus software makers
- Symantec and F-Secure. So far, Win2000.Install has not been released in
- the "wild," or infected users at large.
-
- The virus and at least two variants, found several days ago, only affect
- Windows 2000 because the virus writers specifically earmarked it for the
- new operating system, said Vincent Weafer, director of Symantec's
- Antivirus Research Center.
-
- "It doesn't do any particular damage. The virus writers just want to show
- it can be done, so other people can come and use those concepts in the
- future and do something bad," Weafer said. "It's new and attractive for a
- virus writer to write the first Windows 2000 virus. This is the first wave
- (of Windows 2000 viruses) and we're going to see more."
-
- A Microsoft spokeswoman called the virus a "publicity stunt" by the virus
- writers to get attention. "In the world we live in, not everyone is good
- and nice and we should be happy that this is nothing. It's not a threat,"
- she said.
-
- The virus affects Windows program files and spreads when a computer user
- exchanges an infected program file to another computer, Weafer said.
-
- Windows 2000 is Microsoft's update to the Windows NT 4.0 operating system
- and is targeted for use by corporations, not consumers. Though the company
- won't officially release the operating system until Feb. 17, early
- versions of Windows 2000 have been available to beta testers and members
- of the company's preview program.
-
- The virus latches itself onto a Windows file and replicates itself, but it
- won't make the file size grow bigger, Weafer said. The virus causes no
- inherent damage, but can cause the Windows file to crash the program it's
- running on if the virus doesn't latch itself to the file correctly.
-
- The virus also manages to hide from new security features Microsoft has
- built into Windows 2000, he said, adding that the virus worked on some
- beta versions of Windows 2000 and not others.
-
- Symantec is updating its anti-virus software later this week to recognize
- and eliminate the virus, Weafer said. "Honestly, this is not a concern.
- It's not in the wild, so it's not like you'll get this in the next few
- weeks," he added.
-
- Windows 2000 is the largest development project in Microsoft's history and
- has been delayed for more than three years. Microsoft is touting Windows
- 2000 as the first Windows operating system that is secure, reliable and
- manageable enough to run heavily trafficked Web sites.
-
-
-
-
- =~=~=~=
-
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