Case Law New York v. Microsoft Corp.

New York v. Microsoft Corp.

Document Cited Authorities (35) Cited in (53) Related

224 F.Supp.2d 76

State of NEW YORK, et al., Plaintiffs v. MICROSOFT CORPORATION, Defendant.

No. CIV. A. 98-1233 CKK.

United States District Court, District of Columbia.

November 1, 2002.

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Steven F. Benz, Kellogg, Huber, Hansen, Todd, & Evans, PLLC, Washington, DC, for California Plaintiffs.

Jay Ward Brown, Levine Sullivan & Koch, LLP, Washington, DC, for Cable News Network, LP, LLP, Dow Jones & Co., Inc., Los Angeles Times, The Associated Press, The Washington Post, USA Today, Bloomberg News, The New York Times Co.

Bret A. Campbell, Clifford Chance Rogers & Wells LLP, Washington, DC, for Sun Microsystems, Inc.

Ellen S. Cooper, Office of the US Attorney General, Baltimore, MD, for Commonwealth of Ky., State of Ariz., State of Ark., State of Colo., State of Idaho, State of Ill., State of Ind., State of La., State of Maine, State of Md., State of Mich., State of Miss., State of Mo., State of Nev., State of N.H., State of N.J., State of N.D., State of Ohio, State of Ore., State of S.D., State of Tenn., State of Vt., State of Wash., State of Wis.

Douglas Lee Davis, Office of Attorney General State of West Virginia, Charleston, WV, for State of W.Va Jonathan Donnellan, Cable News Network, LP, LLLP, Atlanta, GA, for Cable News Network, LP, LLP.

Mark E. Faris, Gannett Co., Inc., McLean, VA, Barbara W. Wall, Gannett Co., Inc., McLean, VA, for USA Today.

Donald L. Flexner, Boies, Schiller & Flexner LLP, Washington, DC, for SBC Communications, Inc.

John G. Froemming, Howrey Simon Arnold & White, LLP, Washington, DC, for Gateway, Inc.

Karlene Goller, Los Angeles, CA, for Los Angeles Times.

Robert Gutkin, Pillsbury Winthrop LLP, Washington, DC, Aileen Meyer, Washington, DC, for San Jose Mercury News, Inc.

Jay L. Himes, New York Department of Law, New York, NY, for Commonwealth of Ky., State of Ill., State of La., State of Md., State of Mich., State of N.Y., State of N.C., State of Ohio, State of Wis.

John L. Warden, Sullivan & Cromwell, New York, NY, Richard J. Uroksky, Sullivan & Cromwell, New York, NY, Steven L. Holley, Sullivan & Cromwell, New York, NY, Bradley Paul Smith, Sullivan & Cromwell, Washington, DC, William H. Neukom, Microsoft Corporation, Redmond, WA, for Microsoft Corp.

Thomas J. Horton, Orrick, Herrington & Sutcliffe LLP, Washington, DC, for Onyx Software Corp.

Stuart D. Karle, Dow Jones & Co., Inc., New York, NY, for Dow Jones & Co., Inc.

Steven R. Kuney, Williams & Connolly, Washington, DC, for Commonwealth of Ky., Commonwealth of Mass., Dist. of Col., State of Cal., State of Conn., State of Fla., State of Ill., State of Iowa, State of Kan., State of La., State of Md., State of Mich., State of Minn., State of N.Y., State of N.C., State of Ohio, State of Utah, State of Wis., State of W.Va.

Alan R. Kusinitz, New York State Attorney General's Office, Antitrust Bureau, New York, NY, Kevin J. O'Connor, Office of the Attorney General Of Wisconsin, Madison, WI, Richard L. Schwartz, New York Attorney General's Office, Antitrust Bureau, New York, NY, for Commonwealth of Ky., Commonwealth of Mass., Dist. of Col., State of Cal., State of Conn., State of Fla., State of Ill., State of Iowa, State of Kan., State of La., State of Md., State of Mich., State of Minn., State of N.M., State of N.Y., State of N.C., State of Ohio, State of S.C., State of Utah, State of W.Va., State of Wis.

Lee Levine, Levine Sullivan & Koch, LLP, Washington, DC, for Bloomberg News, Cable News Network, LP, LLP, Dow Jones & Co., Inc., Los Angeles Times, The Associated Press, The New York Times Co., The Washington Post, USA Today.

Eric Lieberman, Washington, DC, Mary Ann Werner, Washington, DC, for The Washington Post.

Peter Peckarsky, Washington, DC, for Relpromaz Antitrust Inc.

Gene C. Schaerr, Sidley Austin Brown & Wood LLP, Washington, DC, for The Association for Competitive Technology.

David A. Schulz, Clifford Chance Rogers & Wells LLP, New York, NY, for The Associated Press.

Brendan V. Sullivan, Jr., Williams & Connolly LLP, Washington, DC, for Commonwealth of Ky., Commonwealth of Mass., Dist. of Col., State of Cal., State of Conn., State of Fla., State of Ill., State of Iowa, State of Kan., State of La., State of Md., State of Mich., State of Minn., State of N.C., State of Ohio, State of Utah, State of Wis.

MEMORANDUM OPINION

"There is a remedy for all things but death ...."1

KOLLAR-KOTELLY, District Judge. 

TABLE OF CONTENTS
INTRODUCTION ...............................................................86
  I. PROCEDURAL HISTORY ......................................................86
 II. LAW OF THE CASE .........................................................88
     A. Court of Appeals Opinion ............................................89
        1.   Market Definition ..............................................89
        2.   Theory of Liability ............................................89
        3.   Four-Part Test for Liability ...................................90
        4.   Original Equipment Manufacturer ("OEM") Licenses ...............91
        5.   Integration of Internet Explorer ("IE") and Windows ............92
        6.   Agreements with Internet Access Providers ("IAPs") .............92
        7.   Agreements with Internet Content Providers ("ICPs"), Independent
               Software Vendors ("ISVs"), and Apple .........................93
        8.   Java ...........................................................94
        9.   Intel ..........................................................95
        10.  Vacating the District Court's Order of Remedy ..................95
        11.  Remand .........................................................97
     B. District Court's Findings of Fact and Surviving Conclusions of Law...97
     C. General Antitrust Law of Remedies ...................................99
III. SCOPE OF THE REMEDY ...................................................103
     A. Legal Authority Related to Scope of the Remedy .....................106
     B. Findings of Fact Related to Scope of the Remedy ....................110
        1.  Introduction ...................................................110
        2.  Treatment of Middleware ........................................112
            a. "Middleware" and Related Definitions in Microsoft's
                Proposal ...................................................112
                i. "Non-Microsoft Middleware" in the SRPFJ .................113
               ii. "Non-Microsoft Middleware Product" in the SRPFJ .........114
              iii. "Microsoft Middleware Product" in the SRPFJ .............115
               iv. "Microsoft Middleware" in the SRPFJ .....................116
            b. "Middleware" and Related Definitions in Plaintiffs'
                Proposal ...................................................117
                i. "Middleware" in the SPR .................................118
                ii. "Microsoft Middleware Product" in the SPR ..............119
        3.  New Technologies ...............................................121
            a. Server/Network Computing ....................................121
            b. Set-Top Boxes and Interactive Television Software ...........124
            c. Handheld Devices ............................................125
            d. Web Services ................................................126
     C. Conclusions Regarding Scope of the Remedy ..........................128
        1.  Server/Network Computing .......................................129
        2.  Set-Top Boxes and Interactive Television Software ..............130
        3.  Handheld Devices ...............................................131
        4.  Web Services ...................................................133
        5.  Middleware .....................................................135
     D. Alleged "Bad" Acts by Microsoft ....................................138

1.   Findings of Fact-Allegedly New "Bad" Acts Relating to
               Interoperation ..............................................139
             a. Kerberos ...................................................139
             b. CIFS .......................................................140
             c. Directory Services, LDAP, ADSI .............................141
             d. TDS ........................................................142
             e. MAPI .......................................................142
             f. MUP ........................................................142
        2.   Old "Bad" Acts Relating to Interoperation .....................143
        3.   Conclusions Regarding "Bad" Acts Evidence .....................144
             a. Insufficient Nexus to Java Developer Tools Deception .......144
             b. Insufficient Nexus to First Wave Agreements ................145
             c. Nexus to Old "Bad" Acts ....................................146
     E. Causation Analysis .................................................147
        1.   Microsoft's Simple Injunction Argument ........................147
        2.   Economic Testimony ............................................148
             a. Dr. Shapiro's Causation Analysis ...........................149
                 i. Factual Findings .......................................149
                ii. Conclusions ............................................150
             b. Dr. Murphy's Causation Analysis ............................151
                 i. Factual Findings .......................................151
                ii. Conclusions ............................................151
                    
 IV. REMEDY-SPECIFIC CONCLUSIONS ............................................151
     A.
...

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Document | U.S. Court of Appeals — Third Circuit – 2016
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"...browser” as “a software application that can be used to locate and display web pages in human-readable form”); New York v. Microsoft Corp. , 224 F.Supp.2d 76, 245–46 (D.D.C. 2002) (“[A] web browser provides the ability for the end user to select, retrieve, and perceive resources on the Web...."
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"...is whether the relief represents a reasonable method of eliminating the consequences of the illegal conduct."); New York v. Microsoft Corp., 224 F. Supp. 2d 76, 99 (D.D.C. 2002) ("It has long been established that it is the job of the district court to frame the remedy decree in an antitrus..."
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"...preliminary and permanent injunctions barring, the company's allegedly unlawful conduct. New York v. Microsoft Corporation, 224 F.Supp.2d 76, 86 (D.D.C.2002) (hereinafter "Remedy Opinion").6 The instant action asserted claims pursuant to federal and state law, and was consolidated with the ..."
Document | U.S. District Court — District of Columbia – 2019
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"...would contravene the law of the case doctrine – to permit relitigation of those legal conclusions. See, e.g., New York v. Microsoft Corp., 224 F. Supp. 2d 76, 88 (D.D.C. 2002) ("When issues have been resolved at a prior stage in the litigation, based upon principles of judicial economy, cou..."
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"...the same practical effect of blocking competition for routing or eligibility," FTC Mootness Br. at 7. Accord New York v. Microsoft Corp., 224 F. Supp. 2d 76, 109 (D.D.C. 2002) ("[F]ederal court[s] ha[ve] broad power to restrain acts which are of the same type or class as unlawful acts which..."

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5 books and journal articles
Document | Intellectual Property and Antitrust Handbook. Second Edition – 2015
Intellectual Property Antitrust Issues in Litigation
"...that the purpose of a decree in a civil proceeding “is effective and fair enforcement, not punishment”); New York v. Microsoft Corp., 224 F. Supp. 2d 76, 177-78 (D.D.C. 2002) (likening a royalty-free license to a divestiture, which is “only appropriate where Plaintiffs have adduced evidence..."
Document | State Antitrust Enforcement Handbook. Third Edition – 2018
Settling competition concerns
"...as a whole. Twenty-five states submitted amicus briefs in support of the litigating states. 128. See New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002). Two of the litigating states, Massachusetts and West Virginia, appealed. West Virginia withdrew its appeal after it reached a s..."
Document | Intellectual Property and Antitrust Handbook. Second Edition – 2015
Table of cases
"...Cal. 2007), 224, 260 New York Mercantile Exch. v. Intercontinental Exch., 497 F.3d 109 (2d Cir. 2007), 14 New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002), 353 Newburgh Moire Co. v. Supreme Moire Co., 237 F.2d 283 (3d Cir. 1956), 389, 451 In re Nexium (Esomeprazole) Antitrust L..."
Document | State Antitrust Enforcement Handbook. Third Edition – 2018
State antitrust enforcement in health care markets
"...from federal antitrust laws). 50. Perhaps the best-known example is one outside the health care field. In New York v. Microsoft Corp ., 224 F. Supp. 2d 76 (D.D.C. 2002), the court rejected the remedial proposal of several states in favor of a slightly modified version of the DOJ’s proposal...."
Document | Handbook on the Antitrust Aspects of Standard Setting – 2011
Remedies and Standard Setting
"...supra note 168. 173. United States v. Microsoft Corp., 253 F.3d 34 (D.C. Cir. 2001). 174. Id. at 53. 175. New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002). 176. Id . at 83. 198 Handbook on the Antitrust Aspects of Standard Setting For the most part, the remedial order entered b..."

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5 books and journal articles
Document | Intellectual Property and Antitrust Handbook. Second Edition – 2015
Intellectual Property Antitrust Issues in Litigation
"...that the purpose of a decree in a civil proceeding “is effective and fair enforcement, not punishment”); New York v. Microsoft Corp., 224 F. Supp. 2d 76, 177-78 (D.D.C. 2002) (likening a royalty-free license to a divestiture, which is “only appropriate where Plaintiffs have adduced evidence..."
Document | State Antitrust Enforcement Handbook. Third Edition – 2018
Settling competition concerns
"...as a whole. Twenty-five states submitted amicus briefs in support of the litigating states. 128. See New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002). Two of the litigating states, Massachusetts and West Virginia, appealed. West Virginia withdrew its appeal after it reached a s..."
Document | Intellectual Property and Antitrust Handbook. Second Edition – 2015
Table of cases
"...Cal. 2007), 224, 260 New York Mercantile Exch. v. Intercontinental Exch., 497 F.3d 109 (2d Cir. 2007), 14 New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002), 353 Newburgh Moire Co. v. Supreme Moire Co., 237 F.2d 283 (3d Cir. 1956), 389, 451 In re Nexium (Esomeprazole) Antitrust L..."
Document | State Antitrust Enforcement Handbook. Third Edition – 2018
State antitrust enforcement in health care markets
"...from federal antitrust laws). 50. Perhaps the best-known example is one outside the health care field. In New York v. Microsoft Corp ., 224 F. Supp. 2d 76 (D.D.C. 2002), the court rejected the remedial proposal of several states in favor of a slightly modified version of the DOJ’s proposal...."
Document | Handbook on the Antitrust Aspects of Standard Setting – 2011
Remedies and Standard Setting
"...supra note 168. 173. United States v. Microsoft Corp., 253 F.3d 34 (D.C. Cir. 2001). 174. Id. at 53. 175. New York v. Microsoft Corp., 224 F. Supp. 2d 76 (D.D.C. 2002). 176. Id . at 83. 198 Handbook on the Antitrust Aspects of Standard Setting For the most part, the remedial order entered b..."

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5 cases
Document | U.S. Court of Appeals — Third Circuit – 2016
In re Nickelodeon Consumer Privacy Litig.
"...browser” as “a software application that can be used to locate and display web pages in human-readable form”); New York v. Microsoft Corp. , 224 F.Supp.2d 76, 245–46 (D.D.C. 2002) (“[A] web browser provides the ability for the end user to select, retrieve, and perceive resources on the Web...."
Document | U.S. District Court — Eastern District of New York – 2019
Barry's Cut Rate Stores Inc. v. Visa, Inc.
"...is whether the relief represents a reasonable method of eliminating the consequences of the illegal conduct."); New York v. Microsoft Corp., 224 F. Supp. 2d 76, 99 (D.D.C. 2002) ("It has long been established that it is the job of the district court to frame the remedy decree in an antitrus..."
Document | U.S. District Court — District of Columbia – 2008
New York v. Microsoft Corp.
"...preliminary and permanent injunctions barring, the company's allegedly unlawful conduct. New York v. Microsoft Corporation, 224 F.Supp.2d 76, 86 (D.D.C.2002) (hereinafter "Remedy Opinion").6 The instant action asserted claims pursuant to federal and state law, and was consolidated with the ..."
Document | U.S. District Court — District of Columbia – 2019
United States v. Philip Morris USA Inc.
"...would contravene the law of the case doctrine – to permit relitigation of those legal conclusions. See, e.g., New York v. Microsoft Corp., 224 F. Supp. 2d 76, 88 (D.D.C. 2002) ("When issues have been resolved at a prior stage in the litigation, based upon principles of judicial economy, cou..."
Document | U.S. District Court — District of Columbia – 2023
Fed. Trade Comm'n v. Surescripts, LLC
"...the same practical effect of blocking competition for routing or eligibility," FTC Mootness Br. at 7. Accord New York v. Microsoft Corp., 224 F. Supp. 2d 76, 109 (D.D.C. 2002) ("[F]ederal court[s] ha[ve] broad power to restrain acts which are of the same type or class as unlawful acts which..."

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