Microsoft's newer strategy might save it from being cornered in Antitrust case

Driven into a legal corner from which there appears little chance of escaping the inevitable, many legal experts expect Microsoft will now shift focus in its strategy in the antitrust lawsuit and work towards a settlement that would be less punishing than court-imposed corrections for the company's monopolistic behavior.

Those speculative conclusions surfaced across the industry over the weekend following the Federal Appeals Court refusal to delay the outcome of the case. This week, the Appeals Court said it will go ahead with the planned appointment of a new lower court judge who will decide the appropriate punishment for Microsoft.

In recent weeks, Microsoft has tried feverishly to delay any further action by the Appeals Court even asking the US Supreme Court to overturn the unanimous Appeals Court ruling. The Appeals Court has ruled that the company illegally bundled the Internet Explorer browser with its Windows OS in order to protect its monopoly in desktop operating systems software. Microsoft hoped the appeal to the Supreme Court would delay the Appeals Court decision to let a lower court judge determine the appropriate punishment.

Such delay would let the company launch its Windows XP software before the Supreme Court has a chance to review the case. The Supreme Court won't return from its Summer recess until mid-October. Windows XP is slated for release on October 25. Once released, it would be much more difficult to halt shipments and distribution of Windows XP. Following the Appeals Court ruling some rumors also surfaced in Silicon valley that Microsoft may be planning an early release of Windows XP by letting computer companies ship the software in their computers ahead of the official release date.

In its latest ruling, a seven member Appeal Court panel said Microsoft had failed to show it would be harmed if the legal process to determine punishment for the company would process as scheduled.

The Appeals Court blasted Microsoft, saying the company had 'misconstrued' its June 28 ruling that upheld many of the findings of lower court's trial judge Thomas Penfield Jackson. Legal experts said the wording denotes a high level of irritation among the Appeal Court judges who have seen Microsoft celebrate their June 28 ruling as a legal victory and moral vindication. "It is a slight indication from the court that Microsoft's arguments were not well received," said Andy Strenio, a former US Federal Trade Commissioner.

It is expected that the government will ask the new lower court judge to block the shipment of Windows XP until the punishment for Microsoft has been decided. It is widely expected that Windows XP will play a central role in any punishment decree or settlement.

Officials at the US Justice Department said they were pleased with the Appeals Court ruling. "We are pleased with the court's decision and we look forward to proceedings in the District Court," said Gina Talamona, spokeswoman, Justice Department.

"I am pleased that Microsoft's delaying tactics have been soundly rejected by the court of appeals," said Connecticut Attorney General Richard Blumenthal, the most vocal of the 18 State Attorney Generals who are fighting Microsoft alongside the Justice Department. Microsoft officials minimized the significance of the decision. "While we believe the process was best served through a stay, we are prepared to move ahead with getting the remaining issues in the case resolved while we await word on Supreme Court review," said Microsoft spokesman Jim Desler.