The July 2 decision by IBM Corp and the US Department of Justice to settle in dispute over the 1956 Consent Decree (CI No 2,948) speaks to the wisdom of US Federal Judge Allen G Schwartz, who presides over the proceedings. Not since the days of Solomon has a judgement been so impressive, pleasing a pair of adversaries who have been at war since 1952. Computer Leasing Trade Body Declares Victory In Its Dispute With IBM, rang the headline on a press release issued on July 3 by the Computer Dealers & Lessors Association, which represents the computer traders who are most adamantly opposed to the removal of the rules forcing IBM to sell as well as lease computers and to make it possible for third parties to obtain parts for the machines. The decree’s elimination is going to save us scores of millions of dollars a year and maybe more, IBM’s general counsel Lawrence Ricciardi told the Dow Jones news wire. There is only one significant difference between the outcome obtained by Judge Schwartz and that for which Solomon is revered. In the case of the 1956 Consent Decree, the argument was between the father of the computer leasing industry and its children, and it concerned the fate of its mother. Solomon’s challenge was to settle a dispute over a child between two women who each claimed to be its mother. The next step in what is expected to be a mere formality will be taken on July 12, when the two disputants, IBM and the US Government, come before Judge Schwartz to propose a timetable for public comment and the review of any that might be received. That comment period could be of 60 to 90 days’ duration. Major violation Unless a comment is received that requires further attention by the court, the plan stipulated by the litigants will be accepted. Basically, under the agreement, restrictions on IBM in the AS/400 market will be retained for another four years and w ill then become null and void. In the mainframe segment, the decree will remain in force for another five years. However, certain provisions of the decree that apply to the AS/400 and mainframe markets will end sooner, a few on the finalisation and others six months later. Futher, IBM and the Government still disagree on one key matter. The Government contends that the 1956 Consent Decree applies to software as well as hardware; IBM says that systems software was not included in the scope of t he decree because, among other things, it simply did not exist when the 1952 case that was settled by the 1956 decree was under way. Our contacts in the leasing industry believe that the government has protected their business from some potentially dangerous shocks. But one lessor added, on condition that his comments remain anonymous, that the Government has given us the appearance of some protection. But the way IBM does business these days, bundling systems and leases and upgrades, looks l ike a major violation of the decree. I guess the Government doesn’t see it that way. What’s really happening is that the consent decree is gone and the government has decided it will officially admit this five years from now. How would Solomon have felt if the mother whose child he returned turned out to be an abusive parent?
Hesh Wiener, Copyright (C) 1996 Technology News of America C
