Interesting People mailing list archives

IP: From MS --- re Microsoft proposed settlement


From: David Farber <dave () farber net>
Date: Thu, 22 Nov 2001 10:01:47 -0500


Subject: Re:IP:   Microsoft proposed settlement
Date: Wed, 21 Nov 2001 18:11:24 -0800
From: "Linda Stone" <lindas () microsoft com>
To: <dave () farber net>

Dave,

There have been a few postings about the proposed settlement that would
resolve over 100 class action lawsuits that alleged Microsoft
overcharged customers.

What people seem to be missing is that the proposed settlement is
explicitly product-agnostic.

Microsoft will be providing a $150 million initial grant and up to $100
million in additional 1-to-2 matching funds to a new education
foundation.  If fully funded, therefore, the foundation will have $450
million and all of that money is available for grants to local schools
to buy whatever hardware and software they want.  The decision on what
hardware or software to utilize will be made at the individual school
level.  Schools that are using Macs today -- or who want to begin using
Macs -- can apply for a grant to purchase Macs and Mac-related software.
The Foundation is independent of Microsoft, and it is explicitly
required to make grant awards on a non-discriminatory basis.

Similarly, Microsoft will pay $160 million in cash into a separate fund
overseen by the new education foundation, which will be used for
technical support programs for the participating schools.  Once again,
the technical support programs are to be product-agnostic -- regardless
of whether schools use Macs or PCs, regardless of whether schools use
Microsoft software or any other software, they can receive technical
support through the programs funded by the foundation.

In addition, Microsoft will pay $90 million to train teachers,
administrators and support staff in how to use the technology provided
by the settlement, how to integrate technology into their curricula, and
how to support the technology they use.  Once again, this training will
be available for Microsoft and non-Microsoft technology, depending on
the products the schools select.

Microsoft will also establish a program to provide operating systems for
refurbished computers, and Microsoft is required to ensure that 200,000
refurbished Pentium-class PCs and Macintosh computers are available to
eligible schools each year.  Once again, the proposed settlement
explicitly covers alternatives to Microsoft-based PCs.

In addition to all of these hard-dollar commitments, Microsoft has also
agreed to provide free software to eligible schools. The value of this
software can only be estimated as it depends on the volume requested by
schools, but it may exceed $500 million valued at Microsoft's heavily
discounted academic prices.  Once again, schools with PCs can get a wide
range of PC titles free of charge, and schools with Macs can get
Microsoft's Mac titles, such as Office and the Magic Schoolbus learning
series.  Even though Microsoft currently has very attractive academic
pricing for schools, making this software available for free will be a
tremendous boost for these struggling schools.

Educators from around the country have responded to this proposed
settlement in a very enthusiastically -- this settlement will provide a
huge boost to more than 7 million disadvantaged students and more than
400,000 teachers at our nation's neediest 12,500 schools.

Lots of people have questioned the legitimacy of these class-action
lawsuits to begin with -- Microsoft has traditionally priced its
products as low or lower than competitor products.  Rather than waste
millions of dollars by both sides on litigation, this settlement would
put these issues behind us and bring enormous benefits to America's
poorest schools.

I hope this information is helpful.


Linda Stone

VP, Office of the CEO
Microsoft Corporation


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