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Apple, Microsoft Deadlocked on Win 95

Apple says its negotiations with Microsoft to license Windows 95 have been unsuccessful. The hang-up is a clause indemnifying Microsoft against any infringement of Apple patents, which Apple refuses to accept.

Time is running out for Apple and Microsoft to reach an agreement regarding Apple's licensing of Windows 95. But Apple says the companies have yet to agree to the terms.

The current agreement, which allows Apple to supply the Microsoft operating system for use on cross-platform products, expires on December 31. In a report to the Securities and Exchange Commission yesterday, Apple said the companies have still not reached an agreement to continue the relationship.

The license Apple wants would allow it to sell Windows 95, but Microsoft wants to include what its officials call a standard clause that would indemnify Microsoft against patent infringement. Apple officials say they refuse to accept the arrangement under those conditions.

Microsoft and Apple officials will not say if negotiations are set to continue.