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Supreme Court rejects Microsoft

By MICHAEL KIRKLAND, UPI Legal Affairs Correspondent

WASHINGTON, Oct. 9 (UPI) -- The Supreme Court on Tuesday refused to intervene in the government's massive antitrust suit against Microsoft.

The software giant had asked the Supreme Court to take the case, despite the ongoing proceedings in a lower court.

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In its petition to the Supreme Court, Microsoft contended that comments from U.S. Judge Thomas Penfield Jackson, who oversaw the antitrust trial last year, had so "tainted" the case that all of his rulings should be thrown out and the case brought back to square one.

However, the Supreme Court declined to intervene. There were no dissents or comment.

"We're pleased with the court's decision," said Gina Talaimona, spokeswoman for the Justice Department's antitrust division. "We'll continue our progress in the (U.S.) District Court."

Late last month, the U.S. judge now overseeing the combined federal and state Microsoft antitrust cases ordered the federal government, the state plaintiffs and the software giant to have settlement talks until Nov. 2.

U.S. District Judge Colleen Kollar-Kotelly said if the two sides don't settle by Friday, or select a mediator, she will appoint one for the talks.

She said, "The court expects that the parties will act in good faith and will engage in an all-out effort to settle these cases, meeting seven days a week and around the clock ..."

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Kollar-Kotelly ordered both sides to give her a progress report every 10 days, without disclosing the actual terms of the settlement talks.

Earlier this year, a federal appeals court threw out Jackson's order snapping Microsoft in two. The appeals court said anti-Microsoft comments made Jackson had so "tainted" the case that his proposed solution to the company's anti-competitive conduct had to be reversed.

After a lengthy trial last year, Jackson ordered Microsoft to spin off its popular Windows operating system from the rest of the company, but stayed his order pending appeals.

Though it upheld much of Jackson's ruling, agreeing with Jackson that Microsoft had violated U.S. antitrust law, the appeals court also sent the case back down to U.S. District Court for further proceedings before another judge.

The appeals court said the further proceedings should determine, among other things, whether Microsoft violated the law by "bundling" its Internet Explorer browser into the code of the Windows operating system.

Kollar-Kotelly was then assigned the case by lot in U.S. District Court.

The Justice Department and the 19 states have said they are limiting their proposed penalties against the company to an injunction against conduct, and have ruled out a company breakup.

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(No. 01-236, Microsoft vs. United States et al)

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