Texas sues Microsoft
The state of Texas files a lawsuit against Microsoft, charging the software giant with interfering in an antitrust investigation.
Texas attorney general Dan Morales asked a state court in Travis County today to prohibit the company from undermining the state's investigation into possible antitrust violations by the company.
According to the suit, "Microsoft improperly binds its customers and licensees to contract terms that require them to inform Microsoft before providing information to state and federal antitrust investigators."
Today's lawsuit follows last month's charges by the Justice Department that Microsoft has violated a 1995 consent decree governing its licensing practices. Critics have accused the company of strong-arming computer makers into accepting the terms of its deals.
"We think the lawsuit is unnecessary and reflects a misunderstanding of our nondisclosure agreements," a Microsoft spokeswoman said. "Our agreements are similar to those used throughout the industry, and nothing in them prevents companies from communicating with government regulators if they have concerns."
Company spokesman Mark Murray pointed to similar requirements required by Sun Microsystems and Novell.
"We've been concerned about this contract requirement, and we're looking into the legality of it in the course of our ongoing inquiry," Connecticut attorney general Richard Blumenthal told CNET's NEWS.COM. "If we find that it is impeding our investigation, we will take similar action."
Dan Appelman, a software licensing attorney at Heller Ehrman White & McAuliffe in Palo Alto, California, said he has never heard of a company requiring that it be notified of a subpoena before the other party was allowed to comply. "I couldn't see the justification for that except that it's Microsoft using its muscle to gain an advantage" that weaker companies couldn't, he said.
A hearing for a preliminary injunction in the Texas case will take place November 24.