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California Microsoft Settlement

Lord Prox writes "From news.com.com: A California judge on Friday gave preliminary approval to a landmark settlement under which Microsoft will pay $1.1 billion to settle a class-action suit that claimed it overcharged consumers for Windows. More Townsend and Townsend and Crew is info from the law firm here. Also note... you get vouchers in settlement good for buying computer related items, not just Microsoft products and/or can be traded and converted to cash!"

36 of 193 comments (clear)

  1. In exchange for the $1.1 Billion by Anonymous Coward · · Score: 4, Funny

    California agrees to a ten year, $10 billion Microsoft contract.

  2. Overpaid ? by Anonymous Coward · · Score: 5, Funny

    A California judge on Friday gave preliminary approval to a landmark settlement under which Microsoft will pay $1.1 billion to settle a class-action suit that claimed it overcharged consumers for Windows

    I pirated a copy and feel ripped off !!

    1. Re:Overpaid ? by NotQuiteReal · · Score: 4, Interesting
      I am sure I purchased Microsoft products during the covered period. I don't recall feeling ripped off, nor do I remember anyone making me buy the products.

      Somehow, I suspect lawyers, or someone other than the alleged abused, are getting real money out of this deal and not silly coupons.

      --
      This issue is a bit more complicated than you think.
    2. Re:Overpaid ? by bentcd · · Score: 2

      nor do I remember anyone making me buy the products

      When you're a monopolist (and by you I mean they), the rules change. The justice system isn't fair to you anymore. The going refrain changes from "innocent until proven guilty" to "it's better to screw one company than risk letting them screw the entire marketplace". And it's most likely a correct approach.

      Monopoly is a boon and a curse.

      --
      sigs are hazardous to your health
    3. Re:Overpaid ? by LilMikey · · Score: 2, Insightful

      I don't recall feeling ripped off

      Yes, Microsoft Public Relations is very good at their job. Besides, everyone else is doing it and paying that much, it must be the right price. At work, we're holding out as long as possible before Licensing V6 exactly because we feel it's a rip-off.

      nor do I remember anyone making me buy the products

      Well, my laptop only came with Windows ME preinstalled. The last desktops my gf and her grandfather bought from BB came only with ME or 2000 preinstalled.

      However, the fact that someone else is making a hell of a lot more than the average consumer from this deal stands.

      --
      LilMikey.com... I'll stop doing it when you sto
  3. MS by Klimaxor · · Score: 2, Interesting

    That's good and all, i'm glad to see they are trying to do something about it...but..why couldn't the price been just a little more? $5 to $29 is not going to make up for the companies who have spent thousands upon thousands of dollars on microsoft products through the last 10 years or so. It's ridiculous.
    fp?

    --
    your sins into me, oh my beautiful one.
  4. Dammit by Realistic_Dragon · · Score: 2, Interesting

    I wish i didn't live in a sucky country which wimped out of nailing Microsoft to a target and announcing open season. Is it too late to organise a class action do you think? They must have commited another antitrust violation today or something, or do they take the weekends off?

    Here's hoping that exactly none of this money is used to buy upgrades to Windows XP.

    --
    Beep beep.
  5. Convenient by sirmikester · · Score: 5, Insightful

    Cnet says : Two-thirds of the unclaimed money will go to California public schools in a mix of donated Microsoft software and cash grants."

    Microsoft should make it a habit of getting sued by states so that it can spread its software into the schools more effectively. I'm sure that the cash is also tax deductible. You go Bill!

    --
    In linux libertas
    1. Re:Convenient by tiny69 · · Score: 2, Informative
      Cnet says : Two-thirds of the unclaimed money will go to California public schools in a mix of donated Microsoft software and cash grants."
      I feel sorry for the students of the public schools in California. I was a student there myself over ten years ago. Everytime something like this comes down, the state pulls that much from what they give to the schools. When Loto first came around, all of the politicians stood behind it because of all the money that would be pumped into the school system. The next year when it came time to do the state budget, what ever amount of money that was being pumped into the schools from Loto was pulled out of the state budget for the school system and used elsewhere. When the amount that Loto was bringing in started to fluxuate, everyone cried foul. But the state didn't lift a finger. One year I remember being told by a teacher that the school didn't have anymore money to buy paper for the rest of the school year. And this was only a couple of months into the school year.

      Those with money could care less what happens to the public school system because they send their kids to private schools.

      Whenever something happens were "EXTRA" money goes to the school system, the schools never see it. The state will use that money as an excuse to withhold that amount during the next years budget. And the state wonders why they have one of the worse public school systems in the world....

      --
      Go not unto/. for advice, for you will be told both yea and nay (but have nothing to do with the question)
  6. The real reason MS settled by Anonymous Coward · · Score: 2, Funny

    They didn't want to risk having to deal with a Governor who's also a Terminator.

  7. Cash is king by Rosco+P.+Coltrane · · Score: 4, Interesting

    A California judge on Friday gave preliminary approval to a landmark settlement under which Microsoft will pay $1.1 billion to settle a class-action suit that claimed it overcharged consumers for Windows.

    Isn't it great when you're so rich you can break the law, then simply reimburse the people you scammed when, sometimes, they notice and react ? How many people got ripped off and never got their money back because they didn't have the time or energy to fight back big bad Microsoft ?

    Did the hordes of people who wanted to buy bare computers but couldn't find any, and had a Windows license forced down their throats, get their money back yet ?

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
    1. Re:Cash is king by sfjoe · · Score: 2, Funny

      Isn't it great when you're so rich you can break the law, then simply reimburse the people you scammed when, sometimes, they notice and react ?

      That's what makes this country great. When the poor and downtrodden realize that the rich can break the law with impunity, then they too can reach the American Dream. All you have to do is give up the penny-ante crimes like liquor store holdups and start importing your own boatloads of drugs instead. Your children will grow up to be Senators and Presidents.

      --
      It's simple: I demand prosecution for torture.
  8. Price of Windows by rmohr02 · · Score: 4, Interesting

    So Microsoft admits that they overcharged for the price of Windows--does this mean that the price of Windows will now go down?

    1. Re:Price of Windows by neo · · Score: 2, Informative

      Settlements rarely place blame, or the defendant has almost no reason to settle.

      It's more likely that the settlement says nothing about why the money is being distributed.

  9. California's in the hole, people... by tinrobot · · Score: 2, Interesting

    Don't forget, California has a $30-40 billion dollar shortfall this year. They're stuggling to find any source of cash they can... I'm sure they settled because they need an infusion of cash NOW...

    Remember... when you can't walk away from the deal, there's no negotiation.

    1. Re:California's in the hole, people... by daveo0331 · · Score: 2, Funny

      California's in the hole and Microsoft is evil. I say we kill two birds with one stone. California's budget shortfall is 30-40 billion dollars; Microsoft has about that much in cash. We'll never get it just by settling lawsuits $1 billion at a time, especially when 2/3 of it isn't real money anyway.

      Everyone meet tomorrow afternoon in Sacramento, in front of the State Capitol. We'll then caravan up I-5 to Redmond. There's more of us than there are of them. We can take them. Once we get the money, we'll take it back to Sacramento and use it to balance the budget.

      Who's with me?

      --
      Remember the days when Republicans were the party of fiscal responsibility?
  10. Odd by 0spf · · Score: 2, Interesting

    MS Dos is included but not Windows 3.x.

  11. Judge declares M$ dividend! by mnmlst · · Score: 4, Insightful

    Is this some kind of attempt to get M$ moving on the rumoured increases in its' dividend rate? Were the California shareholders just excessively impatient?

    Of course, after living in California a few years now, I can assure you that you had better be a Microsoft-sized company if you expect to survive here. The place is insanely litigous, the State Senate and State Assembly routinely pass absurd legislation that inflicts high costs on companies gullible enough to do business here, and the cost of living is driving this place into a two-tiered society; the wealthy and those who serve them.

    Consider this just one more warning to other businesses tempted by this fabled "market of 34 million consumers". Chalk up this settlement next to hundreds of others, the recent tripling of workman's compensation insurance premiums (which is driving out hundreds of small companies and manufacturers), and the recent brilliance of our state government regarding taxes. The state's income tax system is very "progressive" meaning that high earners are heavily taxed and lesser earners are not taxed at all. Our brilliant legislature recently opted only to increase the income tax rates on the high earners. This is the very approach that got us in such a budget mess in the first place. The low earners vote for dozens of unaccountable spending programs that are paid for by the high earners. When the high earners get clobbered (read NASDAQ collapses onto Silicon Valley), the state government goes begging to support all those programs. Eventually, the state will be entirely populated by a wealthy few, some inland farmers, and those who serve the wealthy and depend on government programs to cope with the uniformly high cost of living. At least the ailing public schools will have a few copies of Windows 98 "donated" by Microsith. Be sure to check out microsith.com!

    Hey Californians, last one out, turn off the lights!

    --
    In principio erat Verbum.
    1. Re:Judge declares M$ dividend! by Alan+Cox · · Score: 3, Insightful

      Just do what everyone else does, make it abroad import it sending all the money back out of the US and fold if anyone sues you.

      Its not just that foreign jobs are cheaper than US or EU jobs, is that there is a patent, liability and general law driven economic incentive to move everything offshore except lawyers

    2. Re:Judge declares M$ dividend! by Strudelkugel · · Score: 2, Interesting

      From the article:

      Microsoft isn't the first technology company ordered to pay large sums after finding itself a class-action defendant. In 1999, Toshiba settled a billion-dollar class-action lawsuit that arose from claims that the company had sold notebooks with defective floppy drives. Immediately after the settlement, the same lawyers that pursued Toshiba sued Compaq Computer, Emachines, Hewlett-Packard, NEC and Packard Bell NEC.

      Anyone notice a pattern here? Some time ago I received a notice in the mail informing me that I was entitled to $10-$20 dollar discount on a future monitor purchase. (Remember that lawsuit about display area?) In order to get the voucher, however, I had to fill out some paperwork which would have required that I spend more time than the voucher was worth. The notice also stated that the law firm received $5 million in fees. Pathetic. Wonder what the legal fees were for the law firm in this case. Bet they aren't taking vouchers.

      1. File populist lawsuit
      2. Settle, file another one
      3. Profit!!!
      --
      Imagine how much harder physics would be if electrons had feelings! -Feynman, maybe
  12. Settlement Administrator Using IIS 5.0 (Irony) by hillct · · Score: 2, Interesting

    I love it. Part of the settlement administration website, managed by Rust consulting Inc., "... a class act in claims administration", located at http://microsoftcalsettlement.com/ is run on Microsoft IIS 5.0. I havn't seen the exact language of the settlement yet (does it cover Microsoft OSs more recent than Win05/98?) so it's hard to tell whether Rust Consulting Inc. will be filling out their own forms on their own website to claim their settlement coupons for their overpayment fot the OS running their website (or notifying their histing provider to do so).

    -- CTH

    --

    --Got Lists? | Top 95 Star Wars Line
  13. Re:Linux? by jonman_d · · Score: 2, Funny

    "Get Adobe to port linux to photoshop."

    I think that would take a little more than a billion dollars ;) Though, the I hear the GNU team did make an operating system out of a text-editor, once...so an image manipulator may not be all that hard! ;)

    (This post is funny. If you don't think it is, buy yourself a sense of humor.)

  14. What Idiots Negotiated this Deal? by Nom+du+Keyboard · · Score: 3, Interesting

    1. Overcharge by $40/copy.
    2. Agree to refund $5 to $29/copy.
    3. Profit!

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  15. Re:Settled by Jason1729 · · Score: 2, Insightful

    The rest goes to the lawyers. Isn't mass tort law great?

    Jason
    ProfQuotes

  16. There goes linux... by BrookHarty · · Score: 2, Interesting

    Two-thirds of the unclaimed money will go to California public schools in a mix of donated Microsoft software and cash grants. Although the maximum value of the settlement is $1.1 billion, Microsoft could end up paying as little as $367 in cash, which is what it would owe to California public schools if no vouchers are claimed. If all vouchers are claimed, Microsoft would be required to pay the maximum, but schools would then get nothing.

    Long paste, but I have 2 concerns.

    1. Are the software calculated at RETAIL. Very bad if they get to use these prices. Here in Redmond, if you have a buddy who works for m$ you can get stuff for dirt cheap, 15 bux for keyboard cheap.

    2. This would just give all the schools Microsoft windows to run on all its desktops, with a copy of office and maybe even .net developers tools. Wheres linux or bsd in the mix?

  17. Re:Yup by ceejayoz · · Score: 2, Insightful

    They don't want to go and spend $500 million restructuring everything, replacing all their Windows software with Linux software that may not be written yet, and training their endusers, probably.

  18. Re:more than 90% of desktops... by HiThere · · Score: 3, Insightful

    Do you really think that ANY of the software currently in existence will resemble the software running when today's elementary students graduate from highschool?

    There were HUGE changes in the last four years, but the current evidence is that the rate of change is still increasing.

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  19. The sad thing is... by LilMikey · · Score: 2, Interesting

    Windows 95 has fallen out of support and besides that, most people have gotten a new PC since then with ME or XP handcuffed to it. 98 is falling (has fallen?) out of support and even that has been largely replaced by newer versions (like it or not). How many people still hang on to their old licenses after the software is trash? There's gonna be like 10 claims from geeks swiping the license from granny's computer. Everyone else has trashed 'em or just don't give a crap about 16 bucks.

    --
    LilMikey.com... I'll stop doing it when you sto
  20. Typical "burn the consumer" settlement by rossz · · Score: 2, Interesting

    Many years ago Bank of America lost a class action lawsuit for some dubious practices. For example, make a deposit and write a check the same day. Odds are, the check will bounce and incur a hefty overdraft fee. After BoA settled I received a letter stating I could claim my portion by filling out the enclosed form, etc. etc., and I would receive vouchers good for banking services at BoA. Excuse me? What makes you think I would ever again trust them with my money?

    I'll bet some lawyers made some serious money in the case, though.

    --
    -- Will program for bandwidth
  21. ...converted to...? by Anonymous Coward · · Score: 2, Funny
    .

    "...can be traded and converted to cash"

    Better hope the settlement money can't be converted into campaing funds!

    (Inside joke. You have to be a Californian to understand what Gray Davis is going to do with that money.)

  22. See The Bigger Picture by Wp8gFSiO · · Score: 3, Insightful

    Townsend and Townsend and Crew, the law firm that filed the suit, described Friday's ruling as "the largest recovery of a monopoly overcharge ever achieved in the United States and the largest recovery ever achieved under the antitrust laws of California."

    Uh, yeah, and like most of these types of lawsuits, the trial lawyers get the bulk of the spoils and the consumer gets peanuts. The firm partners all get to build new wings on their homes and the consumer get their $5 to $29. Big consumer victory, what a joke. Sorry, but my contempt for what the legal profession has become overshadows anything wrong Microsoft might have done. And of course, the geeks applaud this outcome, because they can't get over their hang-ups on Microsoft without seeing the bigger picture, which is how out of control lawsuits have become in American society and how the legal system has become a tool of legalized terror against businesses and individuals. You need not look any further than what the RIAA is engaged in. Think about that before you yell "yeah, fsck Microsoft!"

  23. Re:more than 90% of desktops... by Ramze · · Score: 2, Interesting

    I don't know about that. Windows has had the same basic user interface since 1995 (windows 95). While the core technologies have changed (9x codebase to NT), the look and feel haven't changed that much. As far as the end-user is concerned, I don't think the GUI will change that much in the near future. Maybe when Longhorn is finally finished it'll have a new codebase and some different methods of searching for files on the PC, but I bet someone who has only used Windows 95 will have little trouble learning to use it because of the similarities in the GUI. In essence, technology changes rapidly, yes. But, interfaces change slowly. We're still using the same basic I/O's we have for decades... keyboard and mouse. The GUI of operating systems will likely change very little in the near future as well b/c people like what they have now and don't want any radical changes. I hear all this talk about AI agents, voice communication with a PC, etc. etc... but, I don't see it happening for another decade or two at least -- maybe longer. It's still faster to type than to talk for most PC users. Perhaps we'll have a few more buttons on our keyboards and mice for "hot key" functions and maybe a few voice commands. Maybe Windows will put a few interesting things in their OS like virtual folders and stacking folders since with a database filesystem files can be in more than one folder at the same time... or a few new things here and there to the OS... I wouldn't be surprised if almost ALL software 10 years from now looks almost identical to today's except with more menus, options, and prettier colors. Word hasn't changed so much that it's unrecognizable from its first release. Neither have packages such as AutoCAD or the internet service provider AOL. (I had AOL instant messaging way back in 1995 and it's not that much different now in 2003)

  24. Re:more than 90% of desktops... by EvilTwinSkippy · · Score: 4, Interesting
    Hey, when I started elementary school in 1981, computers in school were unheard of. You MAYBE saw a CPM machine. Then the Apple II came out. I remember playing with Apples clear into the 8th grade. I had a PC at home, and most of my friends had Commodore 64's. I programmed in BASIC, porting programs from Apple BASIC and Commodore BASIC to my IBM BASIC box.

    When I started high school the district bought a roomful of PC's networked with Novel Netware. Anyone else remember the big leap (around 11th grade) from DOS based Word Processors to Windows based? Hell I still remember the vulcan-neckpinch commands needed to operate WordPerfect. At this point I was writing device drivers in C for DOS. (Gasp, I still have the reference manual for all of the interrupt handlers for DOS 5 and 6.)

    In college I had to buy a Macintosh. Claris Works was my friend. My junior year they suddenly switched to PC's. I was on Coop an had to navigate MS Office. And just when people started to get good with NT, Linux came out. I moved on to scripting languages and SQL.

    What have I learned from all this? Basically how to learn. Everything else is just details.

    --
    "Learning is not compulsory... neither is survival."
    --Dr.W.Edwards Deming
  25. Re:California's in the hole, not by reboot246 · · Score: 2, Interesting

    This is totally off topic, but look at the report at CAFR.

    In short it says: "The State of California at the State-level has approximately $63.39 billion of the taxpayer's money it is not using, i. e. surpluses equal to $1,790 for every man, woman and child in California or $7,158 for a family of 4. This does not include all the additional surpluses that exist in the school districts, cities, or counties in California."

    This is not made up - the information comes from the California State Controller's Office. Read the report and then get mad as Hell. They are struggling alright; struggling to get more of your money! Bunch of damned crooks - Democrats and Republicans alike.

  26. I have an idea! by Mike+Schiraldi · · Score: 4, Funny

    Cool, man. When the tobacco companies were getting sued left and right a decade ago, they should have negotiated a settlement where they donated cigarettes to schools.

  27. or You did pay your local state taxes didn't you? by SmackCrackandPot · · Score: 2, Interesting

    Perhaps I'm being suspicious, but doesn't this claim process give the state of California the option of finding out those computer users who bought computers (eg. Dell, Gateway, PDA's) out of state, but didn't pay their local state tax? Claimants have to provide: proof of purchase, home address, and the software licenses purchased ....