_____More About Microsoft_____ • Microsoft Judge Wants to See 'Modular' Windows (Reuters, May 7, 2002) • Microsoft Sees Security Threat in States' Proposal (Reuters, May 7, 2002) • Microsoft to Buy Danish Software Co. (Associated Press, May 7, 2002) • States Ask Why Ruling Didn't Alter Windows XP (Reuters, May 6, 2002) • E-Mails Show Microsoft Sought to Weaken Rival (The Washington Post, May 3, 2002) • Microsoft Special Report _____Related Links_____ • Timeline: U.S. v. Microsoft • Post Profile: Bill Gates • Current stock price _____ Web Special _____ Take an online tour of Windows XP, the newest version of Microsoft's operating system. New features are highlighted, along with a discussion of why certain features of XP are being criticized by Microsoft's competitors. (Flash 5 Required) _____Software Headlines_____ • Embattled Etensity Reborn as DDLabs (Washtech, May 8, 2002) • IKimbo Halves Workforce, Names New Chief Executive (The Washington Post, May 7, 2002) • Apple Instant Messenger to Work With AOL (Reuters, May 6, 2002) • IBM Overtakes Oracle in Total Database Sales -Dataquest (Reuters, May 6, 2002) E-Mail This Article Printer-Friendly Version Subscribe to print edition

By Jonathan Krim
Washington Post Staff Writer
Wednesday, May 8, 2002; Page E06

Hackers, software pirates and purveyors of computer viruses could cause more damage if antitrust sanctions sought by state prosecutors are imposed on Microsoft Corp., a top company official testified yesterday.

James Allchin, the most senior Microsoft executive other than Chairman Bill Gates to appear at federal court hearings, laced his written testimony with national security concerns, noting that computers running the Windows operating system are used by the Defense Department and U.S. armed forces in Afghanistan and elsewhere.

"After the events of September 11, concern about computer virus attacks mounted by terrorist organizations has grown more acute," said Allchin, who as a Microsoft group vice president supervises all Windows operations.

At issue is how much technical information Microsoft should be required to disclose to outside software developers who write applications that can run on Windows but that might compete with Microsoft programs that perform the same functions.

Under a proposed settlement of the case between the Justice Department and Microsoft, the company can limit such disclosures if it decides they would compromise computer security or "digital rights management," code designed to thwart illegal downloading and copying of copyrighted music and videos.

The states, which want broader code disclosure than the proposed settlement requires, cite the exceptions as an example of why the proposed deal is weak and why stiffer provisions are necessary to rectify Microsoft's violations of antitrust laws.

Witnesses for the states have testified that more disclosure can be achieved without compromising security. They fear that Microsoft will use the exceptions to selectively keep out rival software by claiming that it does not meet Microsoft's security requirements.

Microsoft rivals, such as AOL Time Warner Inc., are especially worried that if Microsoft can extend its Windows hegemony into digital rights management, it stands to be the gatekeeper of music and video playback.

Allchin said concerns about the security exceptions in the proposed federal settlement are overblown. He said that the company is still analyzing how much code it would have to withhold but that it is likely to be minimal.

But under cross-examination, Allchin acknowledged that code can be exposed without compromising encryption technology, which protects security and copyrighted works.

Allchin is one of the last Microsoft witnesses scheduled in the hearings, after which both sides will have completed their cases.

But the states scored a procedural victory yesterday when Judge Colleen Kollar-Kotelly agreed to let them offer additional testimony from two rebuttal witnesses.

One, James Bach of Front Royal, Va., will contradict Microsoft assertions that it cannot build a version of Windows without various programs bundled with it, including applications for Web browsing and digital media playback.

Bach, an independent software testing specialist who once consulted for Microsoft, will testify that a tool known as Windows XP Embedded allows users to construct a fully functional operating system piece by piece.

Gates and other company officials testified that programs in Windows are so reliant on each other that they cannot be removed without breaking the operating system.