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Microsoft Sees Security Threat in States' Proposal

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_____More About Microsoft_____
• 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)
• MIT Professor Backs Microsoft in Antitrust Case (Reuters, May 1, 2002)
• Error May Hurt Microsoft Foes (The Washington Post, May 1, 2002)
• Microsoft Special Report
_____Related Links_____
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Reuters
Tuesday, May 7, 2002; 11:14 AM

WASHINGTON—Computers around the world would be more vulnerable to attack under antitrust sanctions sought by nine states against Microsoft Corp. , a top executive of the software giant told federal court Tuesday.

Microsoft group Vice President Jim Allchin said the states' proposals would open up sensitive technical information to computer hackers trying to break into corporate and government networks or unleash destructive viruses on the Internet.

"Providing such information just makes it a little easier to compromise the security mechanisms in Windows, and the stakes for our customers are too high for Microsoft to take such a risk," Allchin said in written testimony to the court.

Allchin said any antitrust sanctions should include a security "carve-out" that would allow it to withhold some information from competitors.

Such a provision is included in the proposed settlement Microsoft reached with the Justice Department and nine other states in November.

But the nine dissenting states, who have refused to settle the landmark case on the proposed terms, say the security exemption is a loophole that would allow the software giant to continue abusing its monopoly power.

Allchin told U.S. District Judge Colleen Kollar-Kotelly the states' view was a "mischaracterization."

The security exception "enables Microsoft to safeguard our customers' computer installations without denying competitors information they might want to use," Allchin said.

Without it, Allchin said, it would also be easier for software pirates to illegally copy and resell its software.

"I believe that the disclosures mandated by (the states) would make it easier for hackers to break into computer networks, for malicious individuals or organizations to spread destructive computer viruses, and for unethical people to pirate both Windows operating systems and a broad range of third-party digital content," Allchin said.

The nine states still pursuing the case are California, Connecticut, Florida, Iowa, Kansas, Massachusetts, Minnesota, Utah, West Virginia, plus the District of Columbia.

Last June, a federal appeals court agreed with trial court findings that Microsoft had used illegal tactics to preserve its Windows monopoly in personal computer operating systems but rejected breaking up the company.

The case was sent back to a new judge, Kollar-Kotelly, to consider the most appropriate remedy.

Now in their eighth week, the hearings on the states' proposals could end either later this week or early next week. Kollar-Kotelly is also considering whether to endorse the proposed settlement.


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