Interrogatory of Gateway 2000

Interrogatory 5:

For the period of time from January 1, 1995 to the present, identify each employee or representative of Microsoft that has discussed with your company the bundling or leveraging of Microsoft's Internet browser and the licensing of any Microsoft product(s), and, for each such individual, describe the nature of each such communications.

Response:

????A version of IE is included as part of the source code of Windows 95.? An icon for the browser appears on the "desktop" of the operating system, which means that when an end-user turns on a personal computer for which Windows 95 is the operating system, the icon for the browser appears on the screen after the operating system finishes booting.? On several occasions, Gateway representatives have askedf MS to remove the icon for IE from the desktop but MS representatives have refused each request, saying that the browser cannot be removed or sold separately.? In addition, Gateway is precluded from unilaterally removing IE from Windows 95 because the OS Agreement does not grant Gateway the right to modify any part of the licensed software.? In fact, Section 2(g) specifically reserves to MS all modification rights and rights to the source code for Windows 95.? In addition, MS representatives have repeatedly stated that Gateway has no right to modify the source code for the operating system.? As a result, Gateway must provide IE with each Gateway system that is sold with Windows 95.

????Under a Memorandum of Understanding regarding the soon-to-be released version 4.0 of Internet Explorer ("IE4"), Gateway will be required to distribute IE4 on a separate CD-ROM with every Gateway system that ships with Windows 95 after the date MS makes IE4 generally available to the public.

????In addition, beta versions of Windows 98, the successor product to Windows 95, indicate that IE4 will be integrated into the source code for the operating system to an even greater extent than IE is integrated into Windows 95.? IE4 will load automatically when a user boots up a system on which Windows 98 is loaded.? As a result, the desktop for Windows 98 will be controlled by IE4.

????Moreover, MS representatives have repeatedly said verbally and in electronic mail messages to Gateway representatives, including Richard Brownrigg, that MS will not allow Gateway to modify or customize one key portion of the desktop created by IE4.? The desktop will consist of three elements of an "active desktop" that will allow real-time information to be relayed to the end-user interactively.? One of these elements is a "channel bar" that organizes information available on the World Wide Web into a number of "channels."? Each channel contains information and hyperlinks supplied by a third party content provider.? Gateway representatives have indicated a wish to customize the channel bar for IE4 to allow Gateway to provide channels that are unique to each customer.? MS representatives have said, however, that Gateway and other OEMs may not remove any of the channels delivered by MS.? The only modification that Gateway will be allowed is to add one channel that provides Gateway content.

???????????? Gateway can only display its content and that of third party providers with whom Gateway has reached agreement by including such content in "sub-channels" that are accessed only after a user clicks on the Gateway channel on the channel bar.? MS representatives have repeatedly said that customization of the desktop may occur only through a "customer-executed decision."? As a result, the only manner in which Gateway will be able to offer a customer a customized IE4 desktop is by including an icon on another element of active desktop.? A customer may elect to customize its desktop by clicking on the icon and going through an additional set up procedure.