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Few Takers For Microsoft's Settlement Cash

Makarand writes "According to this article on SiliconValley.com very few claims have been received to claim money from a Microsoft antitrust settlement in California. Only about 4% of the estimated 14 million eligible California consumers have bothered to file a claim till now. The deadline for filing claims is officially April 28 but is likely to be pushed back into May or June. Either, consumers have found the claims process too confusing, time-consuming and discouraging to keep them from making a claim or they are waiting till the last minute to file(like taxes). According to the settlement one-third of the unclaimed money will be kept by Microsoft and the rest will be given to Californian schools."

40 of 276 comments (clear)

  1. An easier way? by Anonymous Coward · · Score: 4, Informative

    Weren't these guys going to make it easier?

    1. Re:An easier way? by StumpMan · · Score: 5, Informative

      I receieved a settlement letter regarding the case with North Carolina.

      Basically, I had to take a day off work, go to the Courthouse in Raleigh, fill out several forms, and then wait about 6 months for a check for 10 dollars.

      Parking all day downtown will cost about 10 dollars, so I didn't see this as 'useful'.

      So I am not going to bother with all that nonsense.

      Any wonder why I run Linux now? Any takers? Anyone?

  2. Conspiracy 2.0 by Thunderstruck · · Score: 4, Funny

    Or perhaps these folks are refraining because the fine print of the license for XP includes the following:

    "User agrees to indemnify Microsoft against any and all abuse of the legal system and will in no case whatsoever assist any governmnent, foreign or domestic, in levying sanctions against Microsoft."

    (I don't run it, but it wouldn't surprise me to see this in there.)

    --
    Trying to use sarcasm in text-based forums does not work.
  3. It is -such- a lie... by torpor · · Score: 5, Informative

    ... to say that "the rest of the 'money' will go to California schools".

    What will go to "California Schools" is 'boxes of Microsoft product', valued at the $-value for the settlement, by a team of accountants, lawyers, and auditors.

    This settlement is a sham. It is nothing but an easy seeding program for Microsoft market-share harvests in the 6-month to 1-year time frame, among a vulnerable and naive market (education), and Microsoft know it.

    --
    ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    1. Re:It is -such- a lie... by torpor · · Score: 5, Informative

      Uh huh.

      Tell me, which part of this sentence don't you understand:

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

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    2. Re:It is -such- a lie... by swillden · · Score: 4, Informative

      What will go to "California Schools" is 'boxes of Microsoft product', valued at the $-value for the settlement, by a team of accountants, lawyers, and auditors.

      Mostly.

      The way the settlement is structured, 2/3 of the settlement not taken by consumers will go to California schools with lower-income student populations. The other third of the unredeemed cash MS just gets to keep. Of the 2/3 that goes to the schools, 50% is in the form of "General Purpose" vouchers, which can be spent by the schools on any computer hardware or non-custom software (including Microsoft software, at the school's discretion) and supporting I/T services. The other 50% will be in the form of "Software Vouchers", which can only be spent on MS software.

      So, if the schools really want to use the cash to buy non-MS stuff, they can. But the deal is set up so that they can maximize their benefit by buying MS. Obviously, if they choose to buy no MS stuff at all, they only get the spend 50% of the money. They're unlikely to choose to buy both MS and non-MS, because that means having two or more different kinds of systems to support and manage. The slickest part of it is the fact that they can use "Software Vouchers" to pay for any MS software bundled with PC hardware. So if they buy an $800 PC that includes a copy of Windows XP, they only have to spend $501 of their general-purpose money; the remainder is the retail price of XP and can be paid for with software vouchers.

      Even free software can't compete with that, because XP is only $50 or so of the $800 computer price. So to buy a Linux PC, the school woule have to spend $750 of their vouchers. The same situation applies to Apple hardware... even if Apple decides to sell them the hardware for rock-bottom prices and gives the software to them for free, schools will get less for their money for not going MS.

      So, at the end of it all, this $1.1B settlement is probably going to cost MS less than $300M in cash, *and* allow them to pump a lot of MS software into the schools.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    3. Re:It is -such- a lie... by rworne · · Score: 3, Informative

      Actually, I did file. It took em a long time because I simply do not keep a whole lot of obsolete software lying around in the hopes of it paying off 10 years down the road in a class-action suit.

      I had 3 MS Office licenses, 2 NT Licenses, 1 Win2k, 2 Win 98, 2 Win 98 SE and 6 Win 95 licenses.

      I for sure as hell was not going to claim all of these because of the difficulty of locating the license keys/COA's for software I haven't been running for at least 5 years. I certainly do not want the hassle of MS auditing my claim and trying to explain where these came from. So I had to dig and dig to find what I could. It's a real pain in the ass, so most people should just keep the claim under $100.

      For all my trouble, not all the proof could be found and I should be getting just $148 or so in vouchers.

      --
      I tried every decent and legal way I could think of to resolve the issue w/the business before I rented the chicken suit
    4. Re:It is -such- a lie... by achurch · · Score: 3, Informative

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

      The catch, of course, is that the "cash" is really vouchers that can only be used for computer-related expenses (see pp.32-34 of the Settlement Agreement), so either:

      • The school buys half Microsoft products and half non-Microsoft products, and has to deal with the attendant hassles; or
      • The school buys Microsoft products and uses the vouchers for training, hardware, etc., in which case the software side is 100% Microsoft; or
      • Somewhere in-between.

      And in any of those cases, Microsoft ends up benefitting from student/staff exposure to Microsoft software. So the fact that the schools are allowed to purchase non-Microsoft products doesn't necessarily mitigate that Microsoft managed to craft themselves a pretty sweet deal.

  4. Why claim Microsoft's money? by Jugalator · · Score: 4, Funny

    Everyone knows that silly Monopoly money isn't real!

    --
    Beware: In C++, your friends can see your privates!
  5. Logically... by JC-Coynel · · Score: 5, Funny

    Well I guess the process is too long, to heavy and they have no guarantee to get anything in the end.

    I guess that's why those people don't apply security patches either!

    --JC

    --
    --JC
  6. There are three reasons by medication · · Score: 5, Insightful

    First would be ignorance. I would imagine that a majority of the people who qualify for this settlement do not know about it and it's not as if Microsoft is going to go out of its way to inform them.
    Second would be reality. To claim your settlement money you must produce your "Product Key number or Product ID number". Mind you these are your keys/ids from February 18, 1995 thru December 15, 2001. I don't know about you but those keys are long gone for me.
    Third is human behavior. Corporations have known for a very long time that rebates are a fantastic sales tool precisely because many people do not follow through and claim them. I have a strong suspicion that the same principal is at work here - be it laziness or something else.

    --
    "If you're flammable and have legs, you are never blocking a fire exit." - Mitch Hedberg
    1. Re:There are three reasons by Smallpond · · Score: 5, Insightful

      Also, if you follow the link to webform.microsoftcalsettlement.com, you have to fill out a form to get the claim form. Then wait for the form. Then fill out the claim form and send it in. Then wait for the settlement.

      Note the privacy notice on the webpage. There isn't one. Who are these people? It doesn't say. What are they doing with the information they collect? What are the chances of getting a software audit if you fill out a claim form?

      Tinfoil hats available in aisle 3.

    2. Re:There are three reasons by stratjakt · · Score: 3, Insightful

      Fourth was a gross exageration of the amount of 'victims' by the plantiffs.

      Please, you may not like Microsoft, but you can't tell me you like phony horse-shit taxpayer dollar gobbling class action nonsense, do you?

      This isn't about helping Free software or punishing a bad corporation, this is some greedy lawyers using broken court system to extract revenue.

      --
      I don't need no instructions to know how to rock!!!!
    3. Re:There are three reasons by dixie_flatline_000 · · Score: 5, Informative

      Have you seen the claim form? My brother-in-law was mailed one because he actually registered a copy of Windows while he was living in California. It assigns a certain voucher value to each Microsoft product (something like Windows - $16, Office - $26, DOS - $13, I don't remember the exact values), and you can claim up to $100 worth of vouchers without any proof (i.e., product ID's or license keys). Then, if you have license keys, you can list those on the form and claim vouchers for those too.

      Also, the vouchers you get are not for Microsoft products -- they're for any PC hardware or software. So once you get the vouchers, you can, for instance, buy a PC (for more than the total amount of the vouchers), then send the vouchers back to the claims adminstrator along with receipt and proof of purchase for the PC. Then they send you a check for the amount of the vouchers. (You can also use it for hardware/software you already bought, within a certain timeframe.)

      It's a pain in the ass, of course, but you can actually get a fair amount of money back from them. Especially if, hypothetically, you claim a fictional combination of products which comes to exactly $100 (and don't need proof of purchase), then claim whatever additional products you can dig up license keys for (as long as you've got the CDs in their original cases or envelopes sitting around the house somewhere in boxes -- the CD cases usually have the license key on them.) If one were to do that, one might wind up getting $200-300 back from them.

  7. Re:Needed: expanded moderation choices by PatrickThomson · · Score: 3, Informative

    Ahem. Say what you want, Bill gates does, has, and will continue to, give vast quantites of money to charities and schools. Try reading his will sometime.

    --
    I am one of many. My idea is not unique, nor do I expect my voice alone to sway you. I speak in a chorus of opinion.
  8. Really? by blcamp · · Score: 4, Insightful


    consumers have found the claims process too confusing, time-consuming and discouraging to keep them from making a claim

    Well, DUH!

    Does anyone really think Redmond is just going to happily dispose of their $$$ and make it easy to do so at the same time?

    They didn't get to where they are now through stupidity.

    --
    The problem with socialism is that they always run out of other people's money. - Margaret Thatcher
    1. Re:Really? by JaredOfEuropa · · Score: 4, Funny
      Does anyone really think Redmond is just going to happily dispose of their $$$ and make it easy to do so at the same time?
      Que Clippy: "It looks like you are trying to file a claim against Microsoft. Would you like to
      - Call a service rep to help you fill out your claim form 26B/6? (0.99c / minute)
      - Have your legs broken by Steve Balmer?
      - Have your claim paid out in Windows ME licenses at their retail dollar value?
      - All of the above?
      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  9. Microsoft is a public company by skidoo2 · · Score: 5, Interesting

    Microsoft is a public company. With millions of shareholders. That is, millions of owners. You want to own a piece of it yourself, and have voting rights regarding the company's future? Go buy a block of stock.

    I know I'll probably get modded down and get all kinds of bad karma for this, but I hate to see /. dominated by so much misplaced anger.

    Microsoft is not just Gates and Balmer. It is a voice for a large number of people. It's this voice that gives Microsoft the power it has.

  10. More than that by poptones · · Score: 5, Insightful
    I actually have many of those PID numbers still here on my shelf from when we were filling the office with emachines picked up from officemax. And I filled out the lindows claim form just to check out lindows (couldn't get it installed on ANY of my computers but that's another story) but why would I waste time filling out this "rebate coupon" form? I have to download the damn pdf, print it, spend my time filling it out, stamping it, then waiting for the return of... a discount coupon for more Microsoft crap?

    Yeah... sssuuuuure.... I'm gonna do that right now!

  11. Or maybe... by RupertJ · · Score: 5, Insightful

    Maybe people value their time more than vouchers? Seriously, how many mothers and fathers are going to take an hour out of a busy day (that they could be spending with their kids) to fill in paperwork to get some rebate on software if they decide to upgrade their system in the future?

    Fact is most families don't care if their box isn't secure, patched or running the latest media player 9.03848.8464a - They'll use it once or twice a week to mail grandma.

    Sorry Slashdotters, but people who upgrade enough to care about some freebie settlement vouchers ARE that current 14% of settlement takers.

  12. Re:Total BS... by FrYGuY101 · · Score: 5, Informative

    Last I checked, between February 18, 1995 thru December 15, 2001 you were able to buy Windows 95, 98, ME, NT4 and NT5 (Aka Windows 2000). None of which have manditory registration.

    As a result, Microsoft is completely incapable of having a record of who purchased their product.

    Moreover, even if they did have such a list, they don't nessicarily have a list specifying the state in which the user resides, and as this rebate only applies to users in California...

    --
    "If we let things terrify us, life will not be worth living."

    - Seneca
  13. Re:Needed: expanded moderation choices by hraefn · · Score: 5, Insightful

    The altruism of the wealthy is rarely more than a tax deduction.

  14. Oh come on... by FrankoBoy · · Score: 3, Informative

    Don't you recognize Microsoft exerts some kind of monopoly in many software markets ( OS, office suite, media player, browser, etc. ) right now ? Of course people can write better software - hell, many do :) - but having a better product doesn't mean the top rank in market share because many other variables have to be taken into account, one of the most important being the monetary assets of the companies involved, another being the political power corporations can gain to twist societal tendancies into their favor. Microsoft have massive monetary and political power to help them stay on top, which isn't fair for any startup company. I'm not saying it's impossible to topple Microsoft as a monopoly by having better products alone, but the defacto-monopoly right now is definitely not a good thing for competition, and hence for consumers.

    <rant>
    We do not live in a classic-capitalism utopia where companies are ethical and let competition strive ; we live in a world where giant corporations enjoy being on top to gain huge piles of money, namely because of the underlying "greed" capitalism is based on. I've always found strange that on one hand, capitalists explain their position with a greed-as-human-nature argument while on the other hand assuming that this greed will be refrained for some Common Good. Greed has never been a matter of common good, it's about gaining and preserving power. Capitalism is not concerned with morals and ethics, and that's why it cannot stand alone as a worldview. So defending Microsoft on a strictly economical dimension isn't very much relevant at all.
    </rant>

    And actually I think MacOS X surpasses WinXP hands down on usability, as long as you're not glued up in WinLogics as a user.

  15. Re:Needed: expanded moderation choices by Daniel+Dvorkin · · Score: 5, Insightful

    I've said it before: if I rob a bank, and get away with the largest haul of any bank robbery in history, and rather than keeping all of my ill-gotten gains, I give away some small but meaningful portion of it to charity, and the recipients of my generosity are profoundly grateful for my gift ...

    ... I'm still a bank robber.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  16. Re:Good. by mahdi13 · · Score: 3, Insightful
    and you still choose to pay then maybe there's something wrong with the free choice.
    Like not being known?
    most people have never heard of Linux, and most those that have think that it is a software package that you load on a Windows server. The reason people will pay $300 for Windows is because that's all they know. Samething when it comes to CPUs, I hear way too often that all someone wants when getting a new computer is a 'Pentium'. You mention AMD and they look all puzzled and say 'is that a Pentium?'
    It's all about advertising, which Linux get's very little of. And the advertising it does get is very generic and not very specific. Those that know Linux think it's a product of IBM or a new way of running servers. If Red Hat or SUSE or Mandrake ran ads every 5 minutes on 'Must See TV' people would notice, but this isn't going to happen soon because that costs A LOT of money...money which none of these companies have.

    That and they need a jingle that will stick in peoples heads for years and/or a silly mascot that people will remember.
    --
    "Some things have to be believed to be seen." - Ralph Hodgson
  17. I was eligible and didn't file - here's why by Anonymous Coward · · Score: 4, Interesting

    I don't believe class-action lawsuits truly benefit anyone except the lawyers, who are the only ones that will receive any useful prize from the settlement. So let them get their money from Microsoft without my help, and if California schools get my $3.77, or whatever paltry fractional amount would have been sent, great, at least the money is being re-pooled into a useful amount again.

  18. anybody gotta UPC?? by malus · · Score: 3, Interesting

    i'm in line for a refund on the MS products i purchased between the dates specified, but i can't seem to find UPCs from 1995(!)

    give me a break. this settlement isn't getting responses, because people don't keep receipts for software for 10 bloody years.

    MS gets away with it, again.

  19. Re:Good. by jimicus · · Score: 5, Insightful

    Microsoft does NOT force anyone's hand to use their software. Even on PCs that come with it, you can get a refund

    You ever tried to do that?

  20. Like those rebates by Smidge204 · · Score: 5, Interesting

    It's almost like those rebate programs:

    1) Overprice your product and offer a rebate

    2) Bank on the fact that only a small percentage of customers actually mail in for the rebate, and do so correctly.

    3) Profit

    So MS's business model is looking more and more like:

    1) Do whatever you want and let others/the government file antitrust suits.

    2) Settle suits knowing almost nothing will be done to enforce/cash in on them

    3) Profit

    If Dubya wants to convince the public that the US economy is getting better, he should just designate litigation settlement income as a business sector instead of trying to classify burger flippers as "manufacturing jobs".
    =Smidge=

  21. Figures. by dj245 · · Score: 3, Interesting
    Few people ever recieve any sort of voucher or mail-in rebate from companies. I actually did get a rebate check for Flight Simulator 2000. The process was overly complex and long, leading to many people not bothering. It asked for receipts and bar codes some people might not have, or want to give up. You had to send in the original receipts, not a copy. The check had an expiry date, and there was such a small time allowance, that by the time I got it it had already expired.

    Companies bet on very few, if any, people actually getting money out of these things. I wouldn't be surprised if the beancounters calculated it out in advance to be 5% or so. There are so many hoops to jump through, and they are so high, that few people get through the maze of red tape. Why would any company make it easy for someone to suck "free money" in the form of a rebate or voucher away from them? Best to make it as complex and as hopelessly complex as possible.

    Normally I shun litigation as a solution to problems, but I think this area is a place where we could use some regulation. Things are so bad with rebates now that I wouldn't be surprised if cans of Tuna had rebates on them in the future, but cost $5 with $4 rebate. I know this is a little offtopic and Microsoft's situation is a little different, but their method of doling out their required settlement should be decided by someone with more common sense, not someone who wants to save the company the most money. I wouldn't be surprised if Microsoft actually pays out less than 5% of what they actually owe the people.

    --
    Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
  22. Re:Good. by NineNine · · Score: 5, Insightful

    they don't know that other OSes exist.

    Actually, I'm thinking that they just don't give a rat's ass. Non-geeks that I know couldn't care less about the OS they're running. It just doesn't matter.

  23. I for one dont want the rebate. by Kenja · · Score: 4, Insightful

    I didn't bother to fill out the form they sent me because I don't agree with the settlement and in fact think that it sets a very bad precedence. I purchased Microsoft software because it performed a task or service that I was willing to pay for. At no point was I tricked or forced to buy the stuff. I agreed to the price when I paid for it, so I think it would be wrong for me to change my mind years after the fact. I paid more for Autodesk, Novell and Sun software but you don't see anyone demanding rebates from them. This whole thing just struck me as a bunch of greedy layers and consumers who saw an opportunity to get something for nothing.

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
  24. Re:I agree by Black+Perl · · Score: 3, Informative

    does anybody happen to know how much money microsoft had donated to various schools over the years? im just curious

    If you mean money as in cold, hard cash, I suspect the answer is close to zero. All the school donations I have seen from Microsoft involve Microsoft products and occasionally some hardware that can be used to run Microsoft products. Of course, that doesn't stop Microsoft from deducting the cash-equivalence from their taxes. I suspect Microsoft profits from these "donations."

    --
    bp
  25. Re:Needed: expanded moderation choices by bobej1977 · · Score: 3, Interesting

    Bah, you only get out of paying tax on the amount you donated. So if you donate $1 million, you'll only save $3-500,000 on your taxes. It's still a net donation of $5-700,000.

    --
    The meek shall inherit the earth, in 3 by 6 plots. - Lazerus Long
  26. Re:Needed: expanded moderation choices by Dr.+Evil · · Score: 4, Insightful

    <conspiracy>They can print software and donate it. I don't know how the accountants sort out the value of the donation though. If it is anything other than cost of production (not estimated costs based on R&D, or wholesale/retail prices etc), then MS has a license to print money and expand their market through tax writeoffs.</conspiracy>

  27. Don't be fooled. Filing is very easy! by BrerBear · · Score: 4, Informative

    Wow, It's not that hard to file. I got maybe 4 forms sent to me already in the mail. I thought the deadline was long ago (mid-March), but it seems to have been extended to April 28.

    As long as you are filing for less than $100 reimbursement, you do not need to provide any product keys or proof. You just have to provide a list of what you bought, and most consumers will easily fall within the $100 limit and qualify for the standard (easy) form.

    In other words, fill out a form saying "I bought Windows 98 on or about this date" and you get a voucher.

    That's it. No proof necessary if your filing is under $100 and fewer than 5 products purchased. So get your forms, because time is running out! Go to the web site and request a standard claim form now.

  28. Re:Good. by boarder8925 · · Score: 3, Informative

    How could you? They don't give you Windows refunds anymore. You have to send back the entire system.

  29. Or they are not in agreement by unixfan · · Score: 3, Insightful

    We got it here in Florida too, and I did not accept the money as I don't want to agree not to sue MS.
    One of the stipulations accepting the money is not to sue MS.
    Besides the pultry few dollars are not worth the hassle. The latter no doubt lies behind what is going on in California. The state settled, not it's constituants.

  30. Damned MS Conspiracy... by pigeon768 · · Score: 3, Funny
    Of course, the claims form is "best viewed" in Adobe Acrobat 6.0.

    Which doesn't run on linux. Which means I'll have to go out, buy Windows and download Adobe Acrobat 6.0.

    Bastards! They got me everwhere I turn!

  31. I've Given Up On A Legal Solution To This Monopoly by Long-EZ · · Score: 3, Insightful
    I've given up on any legal solution. I suggest that any of us who don't like Microsoft products or marketing tactics spend a little more time converting users. Slashdot readers are routinely consulted by friends and relatives when buying or maintaining a PC. You know, 'cause we're geeks. My stock answer is now, "If you're surfing the net, sending email and word processing, let me introduce you to Linux."

    The Mac is a good option too. I pointed my brother in that direction several years ago and he hasn't needed any support from me since then.

    For anyone willing to change, and it's not that hard, they get the free hardware and software support they are accustomed to getting from me. But I'm not wasting any more time removing worms, reinstalling Windows every year when registry rot requires it, or cleaning up spyware. After a short period, I'm saving time, and so is the user.

    For now, I'm not trying to convert people who still need a lot of Windows-specific apps. They're phase II. But for most people, I'm now happy recommending Linux, and it's sufficiently mature that most people are happy using it. We've reached that important knee of the curve.

    Most naive users are surprised that they no longer have daily crashes, Outlook worms, etc. And they like the price, too. I think most non-geeks would be demanding a nice GUI Linux, but they simply didn't know that option existed.

    Microsoft is huge, mostly because in the DOS days PHBs made the purchasing decisions, and we know how technically astute they can be. The Microsoft monopoly is a market based problem, and there is a market based solution. If you don't like it, don't support it. Change the PC marketplace, one PC at a time.

    --
    >> My ultraviolent Linux switch video.