– Microsoft Corp claimed victory on a number of points after Wednesday’s five hour-plus session, saying it had successfully established that it had always planned to integrate its browser in the Windows operating system and that it has not foreclosed Netscape from freely and successfully distributing its browser. Chief prosecutor David Boies disagreed, insisting that former Netscape chief executive Jim Clark’s surprising email had nothing to do with the case and that it represented Microsoft’s attempt to change the subject. Boies called into question Clark’s testimony that Bill Gates spoke of his browser plans at a 1994 meeting, insisting he hadn’t seen a transcript of Gate’s speech, adding that Gates could tell us if he shows up. Netscape’s outside counsel Christine Varney accused Microsoft of now playing the snippet game through its production of fragments of information to support its case. She said the company was trying to rewrite history.
– Varney also downplayed the issue of Clark’s email soliciting an investment from Microsoft, explaining that the company had no product shipping and was quickly running out of cash. She said Clark was nervous and described his action as a desperate attempt, to save the fledgling company, in which he had $5m of his own money tied up. Varney also added that Microsoft flatly refused the proposal and that soon after it was made Netscape was in solid financial shape due to initial Navigator sales.
– The government has been awarded access to databases containing the sales records of all Windows and Internet Explorer products since 1990. It had previously been given data that only related to OEM sales. The discovery issue concerning the databases had been a point of contention for several weeks, with Microsoft insisting that the data is more complex than the DOJ attorneys realize and that producing it – while government officials are looking over their shoulders in Redmond – is hugely burdensome. The company has also complained that the request came too late in the process to be reasonable. Judge Thomas Jackson didn’t buy those arguments, however, and granted the DOJ’s request on the conditions that it takes no longer than two days to procure the information and that the government pay all costs associated with the action.
– When the issue of Jim Clark’s veracity came up with regard to his email to Microsoft about an investment in the start-up, lead defense attorney John Warden asked Netscape’s Jim Barksdale, Do you regard him as a truthful man? I regard him as a salesman, Barksdale said. I am not going to touch that, Mr. Barksdale, replied Warden.
– Jim Clark, in his email looking for an investment from Microsoft, said that Netscape didn’t consider client software its business, but instead saw itself as adding value on the back-end in the form of vertical applications, currently using Oracle databases. He added, We intend to do this primarily on NT and Back Office very soon.
– On the issue of Microsoft’s initial move into the market for internet software, Warden asked, How many first steps can you have? Barksdale replied, Oh, I don’t know…two or three.
– At the now infamous meeting between Microsoft and Netscape, Barksdale said Dan Rosen told him he had the authority to make an investment offer to Netscape and proceeded to tell him of the advantages The Bill Effect would have on Netscape’s upcoming initial public offering. At that time, a company with Bill Gates’ seal of approval was said to have commanded a much higher IPO price. á
