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The Courts Government Microsoft News

Microsoft CA Settlement Claim Forms Hit Mailboxes 131

Posted by CowboyNeal from the piece-of-the-pie dept.
mattOzan writes "So I got my Standard Claim Form in the mail today from the California State Superior Court, as I assume many other California residents did as well. This is the mechanism to get a chunk of the US$1.1 billion settlement Microsoft reached with the state of California for their anti-trust lawsuit. All the legal details (PDF) can be obtained online. Some of the fine print: the money will be doled out as vouchers based on what qualifying MS software you or your company obtained between 1995 and 2001 (nothing for 'server computers' or Macs). Two-thirds of all unclaimed money will be given to low-income California schools for computer purchases, and vouchers may also be donated to charity."
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Microsoft CA Settlement Claim Forms Hit Mailboxes More

Microsoft CA Settlement Claim Forms Hit Mailboxes

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  • North Carolina just settled a class action lawsuit (Score:5, Informative)

    by i_want_you_to_throw_ ( 559379 ) * on Friday November 07, 2003 @08:06AM (#7415761) Journal
    The lawsuit alleges that Microsoft violated North Carolina's antitrust and unfair competition laws. The story is here [finanznachrichten.de].

    The settlement, which last Thursday received preliminary approval from the North Carolina Business Court, will make vouchers available to class members that may be used to buy any manufacturer''s desktop, laptop and tablet computers, any software available for sale to the general public and used with those computer products, and specified peripheral devices for use with computers. If all class members claim and are issued the vouchers for which they are eligible under the settlement, the maximum value of the vouchers issued to class members will total approximately $89 million.

    Under the terms of the settlement agreement, Microsoft will provide one- half of the value of the "unissued vouchers" - i.e., one-half of the difference between $89 million and the value of vouchers issued to class members - to North Carolina''s public schools in the form of vouchers that may be used by schools to purchase a broad range of hardware products, Microsoft(R) and non-Microsoft software, and professional development services. In the event any vouchers issued to class members are not redeemed, Microsoft will provide one-half of the value of those unredeemed vouchers to the North Carolina Department of Public Instruction.

    Given that Apple has so much of a huge market share in schools, one has to wonder if vouchers good for MS products are a way for MS to start claiming some of that Apple market share as an intended/unintended side effect. One really wonders when you see the quote from their counsel...
    "We're pleased by the opportunity to help schools all across North Carolina get the computers and software they need," said Brad Smith, general counsel for Microsoft. "This settlement allows us to focus on the future and building great software, and avoids the cost and uncertainty of litigation."

    Seeing "non-Microsoft" software spelled out in NC's agreement is particularly heart warming though.

    • Comment removed (Score:5, Insightful)

      by account_deleted ( 4530225 ) on Friday November 07, 2003 @08:18AM (#7415795)
      Comment removed based on user account deletion
      • I think making kids use Commodore 64s or TRS-80s would be a great thing, since they would learn more about how computers work, rather than just what pretty icons to click. I know I learned far more using my TRS-80 than Windows ever taught me.
        • The important part of learning computers in my opinion is being part of a vital community surrounding it. I had an Atari ST in high school and college, and found it difficult to connect to other Atari ST owners. I lived in a small town with no BBS's, user groups, etc. When I got to college, everyone had PC's.

          I used to program my Atari ST in Modula-2, and figured out everything on my own. There was some stuff I never figured out, but would have if I could have interacted in a community. I also had a PC emul
        • I used to write games in assembler on my TRS-80 when I was ~11. I don't do anything to that complicated now. Somewhere along the way I must have lost a few braincells. Probably happened in High School. :)
      • TRS-80.....those were the days. I learned to program on an 80!
    • Given that Apple has so much of a huge market share in schools,

      I realize I live out in the backwoods (of north caorlina no less) but in all my years of public schooling i never saw one apple in a school or community college lab.

      Note to apple: Your products are expensive. Many many schools do not have money to throw around. Perhaps big city schools can afford to get apple only labs...but smaller ones often cannot. And there is a lot of backwoods between the east and west coast.
    • Some of the fine print: the money will be doled out as vouchers based on what qualifying MS software you or your company obtained between 1995 and 2001 (nothing for 'server computers' or Macs). Two-thirds of all unclaimed money will be given to low-income California schools for computer purchases, and vouchers may also be donated to charity.

      Such arrangements are extremely common in class action suits. For example, the one recently settled with some music company (last year, reported here, dont remember

  • MSFreePC still there... (Score:4, Interesting)

    by Realistic_Dragon ( 655151 ) on Friday November 07, 2003 @08:10AM (#7415769) Homepage
    You can get Lindows to do the leg work for you for the next 8 days.
    <br><br>
    <a href="http://msfreepc.com/">MSFreePC.com</a>
    <br><br>
    The attempted shutdown was reported <a href="http://www.silicon.com/software/os/0,3902465 1,10006232,00.htm">here</a>.

  • Settlement? (Score:3, Interesting)

    by Rxke ( 644923 ) on Friday November 07, 2003 @08:15AM (#7415786) Homepage
    That's not a settlement, it's a joke. This way, Microsoft will end up earning more money... Eventually. Give some computers to school etc... Laugh all the way to the bank when they start upgrading/buying additional MS software... Again, this is a joke.

    • Re:Settlement? (Score:5, Informative)

      by Evil Adrian ( 253301 ) on Friday November 07, 2003 @08:29AM (#7415837) Homepage
      Obviously you didn't read the article.

      From the settlement FAQ:
      "Q: What can the vouchers be used for?

      A: You can exchange your vouchers for cash by submitting proof of purchases you made after July 18, 2003 of the following computer products: Any desktop, laptop, or tablet computer made by any manufacturer for any operating system platform, or any of the following devices: printers, scanners, monitors, keyboards, or pointing devices (e.g. mouse, trackball). Qualifying software includes any non-custom software offered by any software vendor for use on a desktop, laptop or tablet computer. The qualifying computer hardware or software does not have to be a Microsoft product. After you submit proof of purchase to the Claims Administrator (either with your claim form or your voucher) a check will be sent to you for the amount of your purchase. The Claims Administrator will keep track of any remaining value on the voucher for your use in making future purchases. The claim form instructions and the voucher will explain the redemption procedure in more detail."

      The vouchers go towards buying computer hardware and software, and "The qualifying computer hardware or software does not have to be a Microsoft product."

      In the future, please read the article before you post. You will save time by not making remarks that are obviously false and clearly addressed in the article, and other people will save time by not having to correct you.
      • I don't take my words back, cause what i tried to point out still stands. Since 80-ish% of the market is MS, i don't think this freedom of choice makes much difference. Most people'll just buy additional MS stuff. The voucher system is bogus, it's hard cash penalties that hurts, not this voucher joke. Laugh... all the way to the bank.
      • California obviously did a much better job of reasoning their settlement through than Florida. In the settlement here, in addition to the consumer vouchers which could be spent on other vendor's products, MS was required to donate some fixed $ value worth of their own software to schools. Not only does this create the scenario the poster described, but the value was set at the retail cost of the software, though MS is out a pittance for each CD. They couldn't buy that kind of marketing?!

        • At least the California Schools won't need to buy the already free MS software and can spend their vouchers on something else.
          I also imagine the list of people who decide where those school vouchers are spent is relatively short compared to the list of people who were violated by the anti-trust actions when they bought a PC.
          In my opinion, people who qualify should recieve CA$H, not coupons, and unclaimed CA$H should be given, as CA$H, to the schools.
      • Ok, give someone a voucher - the person holding the voucher quite likely already has a Windows machine at home, and maybe needs that new "Student & Teacher Edition" of Microsoft Office.

        Chances are, people are going to blow the vouchers on more Microsoft software. Even then, the vouchers aren't *that* much - the average Joe probably doesn't have his proof of purchase for old software anyway. A business might, and they could use the $$ they get back to fund their Windows XP upgrade.

        Sorry, but I highly d
        • Sorry, but I highly doubt that any company is going to say "Yay! Now we can switch to Linux!" - they're just going to add it to the existing IT budget & buy more MS stuff.

          That sounds like a Linux usability problem, which is hardly something Microsoft is at fault for.
      • yeah i'm not sure. i think its tricky. after all microsoft has been convicted for being a monopoly. that means the only software available to buy is microsoft software. how do they lose money? i guess they gotta pay for the packaging... and you could spend the money on hardware. but i don't see how this settlement will foster competition in software. but i suppose thats not exactly the goal of the parties involved in the settlement.

    • That's not a settlement, it's a joke. This way, Microsoft will end up earning more money... Eventually. Give some computers to school etc... Laugh all the way to the bank when they start upgrading/buying additional MS software... Again, this is a joke.

      Not to mention the mindshare they will get with the students who used that software in school.

      There was a similar settlement here in FL and I rejected the claim form they sent to me for exactly those reasons.

      I haven't read the CA settlement, but I'd guess

    • Exactly. MS knows full well that plenty of that giveaway money will come right back to them in the end; few school IT types are clueful enough to shun the MS racket.

      I tell you one thing - I resent that my daughter's school is trying to hawk something to parents or the population at large EVERY WEEK in order to raise money for basic upkeep and decent (not extravagant) materials when they still mindlessly pursue MS software purchases.

  • Schools use of vouchers.. (Score:4, Interesting)

    by Channard ( 693317 ) on Friday November 07, 2003 @08:18AM (#7415797) Journal
    Kudos have to go for the plan to give unused vouchers to the state's schools. I wonder how many will go on computers that come preloaded with Windows though? Will we see a story on Slashdot about a school tech trying to use the vouchers to buy a computer that *isn't* preloaded with a Microsoft OS?

  • What a great settlement... for Microsoft. (Score:4, Insightful)

    by Jerk City Troll ( 661616 ) on Friday November 07, 2003 @08:31AM (#7415846) Homepage
    Two-thirds of all unclaimed money will be given to low-income California schools for computer purchases

    And what kind of computers and software will they be buying? Considering how schools are going from Apple to stupid, chances are they'll be Windows boxes.

    If that's the case, great deal for Microsoft. Hand Microsoft their money right back to them and increase their mind and market share. What a brilliant way to settle a dispute.

    • Re:What a great settlement... for Microsoft. (Score:1, Interesting)

      by Anonymous Coward
      So get off your lazy ass, write to some California schools, and explain the alternatives to them. Bitching on Slashdot will accomplish nothing.
    • ...increase their mind and market share

      That's in schools. Possibly the first computers some kids will be exposed to. Possibly the first impression of computers. For many, Windows will become synonymous to 'computer'.

      I don't usually mind it that much when colleges buy Windows ('cause they also usually tend to buy a few Apples, and [at least in my college] a few Sun boxes)

      But in schools??? This is like brainwashing kids into liking Microsoft.

  • Microsoft's new business model (Score:5, Funny)

    by scovetta ( 632629 ) on Friday November 07, 2003 @08:32AM (#7415847) Homepage
    1. Engage in unfair business practices
    2. Lose class action lawsuits
    3. Profit!
  • I got mine a while back. But I haven't filled it out yet... 'Cause I'm lazy. :( All told, though, I think I just want to frame the voucher above my monitor for a while... ;)

  • My take.. (Score:4, Interesting)

    by Anonymous Coward on Friday November 07, 2003 @08:36AM (#7415863)
    When the big MS antitrust case was running, at the very beginning, I believe MS was trying to make a very specific point about the relationship of IE to Windows. MS was saying that their HTML rendering engine was a component of Windows (much like Gecko was the rendering component of Netscape) and that IE was a thin application shell that wrapped around that engine to create the behavior of a browser like Netscape. Other Windows applications can use that rendering engine, such as their help. So they could construct help files like web pages, but the app that you see them in is a help tool, not a browser.
    That architecture is different than Netscape who carried their own rendering engine along with many other components as a bundle in their app. That difference in architecture is where the rathole regarding "taking IE out of Windows" comes from - removing the shell (as the CMU prof demonstrated) is relatively trivial, but if you object to the presence of the rendering engine, then the removal of that is not only painful but breaks other parts of Windows such as help.

    Of course, it doesn't help that MS was also being an ass about this all.

    Netscape (actually, I think it's other plantiffs such as Sun's Java) would complain that their ability to interact with the interfaces of these internal components was disadvantageous vs. Microsoft's own access and ability to enact change in the interfaces.

    The remedy to this solution would have been hard to implement I think - you have to force Microsoft to publish and commit to a set of public interfaces and functionality, make them available to all comers, and create some mechanism through which MS can't have back-door entry. In practice, quite difficult to do, especially in areas like this, subject to significant evolution.

    Once again, it doesn't help that MS was being an ass about this too.

    OK, now flash forward to Eolas. For competitive reasons, MS got pulled into having plug-in interfaces. Later, they took the ball and moved it beyond where Netscape had already set it. Today, those public plug-in interfaces are the way that Real audio can be a pluggable replacement to Windows Media, or that Macromedia in some future Flash will become yet another option. Again, to a lesser extent, these kinds of plug in interfaces are what allows Sun to build a pluggable JVM (although I believe this is a pretty different mechanism).

    So, if MS decides to lose the EOLAS case, that pretty much gives them carte blanche to slam the doors through the existing public interfaces shut and switch back to proprietary interfaces of their own, and their own control. In Soviet Russia, you don't plug into the brower, it plugs in to you (sorry, couldn't help it)! In a post-EOLAS world, poor Microsoft can't publish an API that allows Quicktime or Flash or RealMedia to appear in a window because they can't afford the license. But that won't stop them from doing a non-infringing implementation of Windows Media will it?

    I think this is definitely NOT a case where the enemy of my enemy is my friend.
    • I think this is definitely NOT a case where the enemy of my enemy is my friend.

      That depends on your perspective.

      If your enemy is Microsoft, and their enemy is EOLAS, then the enemy of your enemy is not your friend.

      However, if your enemy is EOLAS and their enemy is Microsoft, then the enemy of their enemy IS your friend (in this patent case anyway :)).

  • I need some help with my form... (Score:4, Funny)

    by BallPeenHammer ( 720987 ) on Friday November 07, 2003 @08:37AM (#7415864)
    Some of the questions on the form to get my money have me perplexed. Any help?

    37: Mother's father's mother's father's mother's maiden name______________

    193: Last digit in decimal expansion of pi___

    7.92x10^14: Meaning of life_

  • 1.1 billion. With a 95% discount. (Score:4, Insightful)

    by bo0ork ( 698470 ) on Friday November 07, 2003 @08:42AM (#7415888)
    If M$ is allowed to pay that 1.1 billion using the retail value of it's software, then that's not even going to start to hurt them, given their profit margins on software. I don't know what the cost for M$ to produce a bulk CD is, but I'm betting it's waaaay lower than the retail price for the software on it. And most of the software would be one CD + a bunch of license keys, anyhow.
    • I don't know what the cost for M$ to produce a bulk CD is, but I'm betting it's waaaay lower than the retail price for the software on it.

      You're "betting"? You're BETTING???

      Next time you find OfficeXP being sold on the shelves for 30 cents (the cost of an average CD-R, and pressed CDs can be even cheaper) PLEASE email me!

      Oh yeah, and according to the article (and the article summary), non-MS s/w and h/w can be purchased too.

  • "Guilty" is always nice (Score:4, Insightful)

    by heironymouscoward ( 683461 ) <heironymouscowar ... m ['oo.' in gap]> on Friday November 07, 2003 @08:49AM (#7415917) Journal
    Whatever the financial aspects of this case (and one has to assume that whatever the settlement, it will be trivial compared to Microsoft's costs in other areas, such as fire-fighting the Linux guerilla bushwars), it is a definite victory for the market to have a solid verdict against Microsoft.

    Being convicted of being a "monopolist", with random near-irrelevant punishments hurts no-one. But being convicted of stealing from the consumer and being told to give something back, that's something else.

    I believe this is a landmark moment, akin to the first judgements against big tobacco, and with a similar future impact.

    • A settlement is not a "solid verdict" and "guilty" is not a judgement in a civil case even when its not settled. Microsoft was not convicted of anything in California.

      You have to love a moderation system where a comment that is completely inaccurate in every way can be modded "insightful."

  • well well (Score:1, Insightful)

    by Anonymous Coward
    two thirds of the unclaimed money will be given to charity. Let me guess, in the name of Microsoft, so they can claim that money back as a tax write off. If it were donated in the name of the people that did not claim, fine, at least they can recieve 1/3 of that back. but this goes all to microsft. reminds me of the simpsons. "with the tax loophole swe only pay $3 a year" or something. total crappo.
  • FFFA: "Q: What can the vouchers be used for? (Top)

    A: You can exchange your vouchers for cash by submitting proof of purchases you made after July 18, 2003 of the following computer products: Any desktop, laptop, or tablet computer made by any manufacturer...."

    Ok, so since 99.9% of these computers have Windows on them, usually with Works and a few other things, I have to AGAIN get stuck with software I don't want?

    Great... I wonder how much this "Settlement" is going to make microsoft in sales of Windows..
  • Two years ago there was a class-action lawsuit and payout for overcharging of CDs. I filled out the web form expecting $20, but never heard anything. Perhaps that was the cause of some spam.
  • Some reasons why Microsoft owes many of us money.

    In case you haven't heard [billparish.com], Microsoft (MSFT [yahoo.com]) has been deeply unprofitable [economist.com] since 1996, when it began to rely on holes in the GAAP accounting standards that allowed it to report historic profits in its NASDAQ filings up until this very day, so making it look like the hottest business since ACME, Inc.. Large fund managers bought into it to the tune of hundreds of billions of dollars, making MS at its peak ($700B [billparish.com]) which for comparison made it the largest compone
    • "Smithers & Co., a research firm in London, calculated the cost of these footnoted options and concluded that the American companies granting them overstated their profits by as much as half in the financial year ending in 1998. In some cases, particularly that of high-tech firms (which tend to be generous with options), the disparity is even greater. For instance, Microsoft, the world's most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus th
    • To be fair, Microsoft isn't the only company to "take advantage" of those accounting loopholes. Just about every corporation that gives out stock options does the same. To single them out and demonize them alone just makes you yet another person looking for any excuse to rag on Microsoft.

      Regarding the expensing of options -- I would agree that you should expense the cost of exersized options, however I'm uncertain how you would expense options that are 1) not vested and 2) not cashed in.

      Even given that,
      • http://quote.bloomberg.com/apps/news?pid=10000039& sid=ae5D2IHZD6xQ&refer=columnist_crystal
        (beware - popups)

        Oct. 22 (Bloomberg) -- With a few exceptions, the offer Microsoft Corp. and J.P. Morgan Chase & Co. are making to Microsoft employees with under-water stock options is very likely no deal at all -- at least not for the employees.

        • 1) The link you posted doesn't work.
          2) I don't see what this small quote has to do with any of my coments.
          3) Just because an offer is being made doesn't mean the employee has to accept it.
          4) An offer has not been made, so it is hard to determine if it's a good or bad offer at this point.

  • EFF (Score:1)

    by gatolan ( 218884 )
    So do you think you could the EFF as a charity for these purposes? And don't you think you should count the EFF as a charity for these purposes?
  • The only TRUE winners in class action suits.. they get paid LOTS regardless of which side they are on. Regardless if they win or loose...

    Often, they get to keep the unclaimed funds too ( but I see in this case, its different ).

    They are in one of the few industries that can go out and produce work from peoples suffering, and not have to 'succeed' to make $.. I think I'm in the wrong business :)
  • In WV, we have a settlement underway as well. The maximum amount in vouchers that Microsoft will pay is $18 million with a similar prevision for the poorest of the poor schools. However, the lawyers are authorized for up to $9 million in fees for this case. I suspect that the real winner in all of this is not the consumers at all and not even Microsoft but the law firms.
  • From the FAQ:
    "Q: What benefits are available under the settlement?

    A: You will receive vouchers redeemable for cash after the purchase of a wide variety of software and computer hardware products.

    Sort like "Hey, you tried to poison me with your product!", so they respond "Oh, I'm so sorry sir. Here's a coupon for a credit towards a fresh batch of our new poison".

    Some people say I hate Microsoft. I don't, I'm a cynic. Justice has not been served against Bill Gates' company. He's a liar and a thief,
  • I sent off my voucher three days ago and I think when I get it back I'm going to buy a copy of Mandrake and a nice new flat panel monitor. I never knew there would actually be a benefit to being a previously loyal money-losing microsoft customer.

  • Two-thirds of all unclaimed money will be given to low-income California schools for computer purchases.

    This has probably been said already, but I don't think it will hurt too much to hear it again (and no, I am not whoring - I don't care if you mod this up or not):

    Personally, I'd much rather see 100% of this money go to schools. I've purchased many a Microsoft product in the past (for myself and others, sadly), and I'm just as qualified as many to receive a piece of this pie. However, I strongly beli

  • Oh, come on now, you get email that says "Subject: Microsoft will give you Free Money!" from some domain you've never heard of, looks a lot like spam. I never even opened it, but canned it from the headers. There's no obvious way that the State should have my email address, though perhaps I'd registered that with MS.

    Besides, anti-trust is a bogus claim anyway. If MS owes me any money back on what they charged for Win98SE and WinME, it's not because the products were too expensive (they weren't), or beca

  • I live in California and I got my settlement info several weeks ago. It says in there that the vouchers can be transferred no more than once to any business or individual. So you can give your vouchers to someone else if you like.

    I seriously considering giving mine to Mandrake to help fund Linux development.
  • Does the recipient get to choose what goes on the donated machines, or does the installed software default as Microsoft? You don't punish a company by giving them market share, so if anyone would rather have the donation, they should opt to install a non Microsoft system on the voucher machine and donate that instead. Then Microsoft will actually feel that chunk of cash evaporating, otherwise it just comes right back to them...

  • You can exchange your vouchers for cash by submitting proof of purchases you made after July 18, 2003 of the following computer products: Any desktop, laptop, or tablet computer made by any manufacturer for any operating system platform, or any of the following devices: printers, scanners, monitors, keyboards, or pointing devices (e.g. mouse, trackball).

    Sounds like this might stimulate the California economy for computer products. Good deal.

  • The settlement tries to punish MS by giving them even more marketshare? Why did they not hold out for real money?
  • I've now got a subscription to MSDN Universal, which gets me any Microsoft product in which I've got a remote interest. What the hell good does it do me to get a voucher for products I already get? These voucher settlements ought to be outlawed (or, alternatively, the plaintiff's lawyers ought to be paid in kind with whatever their 'clients' get paid. Let the shysters eat vouchers with the rest of us if they're so great.)
  • I've had my form for about three weeks now.
  • I think I will spend my vouchers on official CD sets of Slackware [slackware.com] and FreeBSD [freebsdmall.com]
  • I bought quite a few MS products during the dark ages when I lived out-of-state. Originally, they weren't intended "for use in the state of California" but they ended up being used that way. The language of the settlement doesn't really state anything about intent. IANAL, and probably, YANAL, but does anyone have any idea if the products that I bought out of state qualify for the class now that I'm a California residents, and use them in-state? Vengeful minds want to know.

    In any case, if you're like me a

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