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Real And Microsoft Close to Settlement

pdirty writes "Real networks may be close to winning a $750 million settlement agreement with Microsoft following Real's antitrust lawsuit against Microsoft. The deal would include Microsoft paying cash as well as advertising for Real services, and products through channels such as MSN. Real is holding a conference call after the closing bell today to announce the details." From the article: "The deal follows on the heels of the European Commission appointing a watchdog last week to monitor Microsoft's compliance with its antitrust ruling. The pact is the latest in a string of payments by Microsoft to settle charges, including $750 million in 2003 to Time Warner to end charges about Microsoft acting to suppress Netscape, and $1.95 billion to Sun Microsystems to settle a suit by Sun over Microsoft's use of incompatible Java technology."

33 of 255 comments (clear)

  1. Changes coming to windows by Anonymous Coward · · Score: 5, Funny

    You will now have to enter a valid email address before logging into your desktop. Also several new unexplained executables will be added to every user's startup folder to enhance the browsing experience.

  2. Oh Oh by saskboy · · Score: 4, Funny

    "The deal would include Microsoft paying cash as well as advertising for Real services, and products through channels such as MSN. "

    This means that ads in MSN messenger are going to say
    "Buffering... 33%"

    And Microsoft should really consider advertising for Mozilla too.

    --
    Saskboy's blog is good. 9 out of 10 dentists agree.
    1. Re:Oh Oh by Queer+Boy · · Score: 4, Informative
      And Microsoft should really consider advertising for Mozilla too.

      The problem was that Real wanted to PAY to advertise on MSN and MS said no. It was not free exposure they were after.

      --
      Not since Marie-Antoinette played milkmaid has looking simple and honest been so fake and complicated.
  3. Actual Press Release by gurustu · · Score: 4, Informative

    The press release with details of the deal is here.

  4. what about iTunes? by Afecks · · Score: 3, Interesting

    OS X comes with iTunes yet there is no foul play there...

    1. Re:what about iTunes? by ad0gg · · Score: 3, Insightful

      Windows Media Player has been included since Windows 3.1. Apple had quicktime since System 6. This was way before real even existed as a company. This lawsuit is about Microsoft bundling media player in windows.

      --

      Have you ever been to a turkish prison?

    2. Re:what about iTunes? by 99BottlesOfBeerInMyF · · Score: 4, Informative

      incompatible java technology? how the fuck did they manage that?

      ...by shipping a Microsoft created JVM that intentionally broke the java standard.

    3. Re:what about iTunes? by 99BottlesOfBeerInMyF · · Score: 4, Insightful

      OS X comes with iTunes yet there is no foul play there...

      All sorts of people go to school playgrounds and it isn't illegal for them, so convicted child molesters out on parole shouldn't have any trouble going there either.

      Luckily, the laws say otherwise. Monopolies can't use their monopoly to create a new one. Apple sells computers and bundles an OS and a mouse and iTunes. They don't have a monopoly on any of those things. MS does have a monopoly on desktop OS's, thus they can't bundle new products with it. If they want to sell the media player as a separate product with financing segregated from Windows that is fine.

    4. Re:what about iTunes? by badriram · · Score: 4, Insightful

      Well see MS was not declared a monopoly until court pronounced it as such. So what are companies supposed to do until then?

      When you are at 69% market share something is legal and at 70% it is not? Even the courts or the laws cannot agree is what exactly a monopoly is. The entire concept of having a monopoly and abusing it is f'ed up. This is esp. true when competitors can do the same. The way I look at it, if Apple bundles iTunes with their OS, and MS competes with them, they should be allowed to do the same.

      Of course the problem is how to protect companies like Real wants to compete with Apple and MS, on particular part of their OS. There are no good answers that treats everyone fairly.

  5. But until the closing bell... by Tackhead · · Score: 5, Funny
    > Real is holding a conference call after the closing bell today to announce the details.

    But until the close of trading, the RNWK conference call says onlBuffering... buffering... buffering...

  6. Unfortunatly by RingDev · · Score: 3, Insightful

    I'm going to have to side with MS on this one. Real released a crappy product with a shady web site. I think it's a shame to capitalism that the better product will be funding the lessor product in this case.

    -Rick

    --
    "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    1. Re:Unfortunatly by 99BottlesOfBeerInMyF · · Score: 4, Insightful

      Real released a crappy product with a shady web site. I think it's a shame to capitalism that the better product will be funding the lessor product in this case.

      Then perhaps MS should have competed on the quality of their product, instead of illegally bypassing competition and bundling their product with their monopoly. Your opinion is that WMP is better than Realplayer, but it is not up to you or MS to decide what product deserves to be purchased. It should be left to market forces to decide, based upon honest competition between the two products. Those market forces cannot act when a monopoly is used to "force" all users to pay for one option whether they want it or not.

    2. Re:Unfortunatly by RingDev · · Score: 4, Insightful

      "but it is not up to you or MS to decide what product deserves to be purchased."

      Never has been. I have never purchased WMP, Winamp, or Real MP. No one's sales have been hurt by Microsoft's actions (by my actions at least).

      RMP sales have been hurt for two reasons, 1) it is an inferior product, and 2) it has a very poor image.

      Using your logic, the makers of TextPad should be able to sue Microsoft for including NotePad in their OS. But they don't. They produce a supirior product and compete with microsoft. Real had that same oppertunity. Produce a supirior, or hell, even similarly performing application, and they could have competed with Microsoft. Even if their product was as annoying as WMP 9 it still would have been popular just because so many people look for non-MS solutions. Instead they create a bloated resource whoring program that was grocely inferior to not just WMP, but pretty much every other streaming content viewer.

      -Rick

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    3. Re:Unfortunatly by m50d · · Score: 3, Insightful
      I'm going to have to side with MS on this one. Real released a crappy product with a shady web site.

      Then why couldn't MS have beaten them by playing fair? Say what you like about them, Real were wronged here and deserve compensation, no matter how bad whatever else they've done.

      --
      I am trolling
  7. Game plan by k98sven · · Score: 5, Funny

    1) Use monopoly power to crush and stifle any competition
    2) PROFIT!!
    3) Pay off government to drop anti-trust charges
    4) Pay off former competitors to drop anti-trust charges
    5) EVEN MORE PROFIT!!

    Nothing quite like the "free market"..

    1. Re:Game plan by RightSaidFred99 · · Score: 3, Insightful

      Actually, that is the free market. You're (through witless sarcasm) implying you want socialism. Here's your little joke properly worded 1) Make inferior product 2) Whine to politicians 3) Sue over a monopoly that by definition doesn't exist 4) Get pro-linux nerds (who also can't compete, on the desktop) all worked up and indignant on your side 5) Post to SlashDot so your fellow geeky dweebs can get all worked up 6) Win lawsuit 7) Profit!

    2. Re:Game plan by alnjmshntr · · Score: 4, Funny

      Real's (or even SCO's) gameplan:

      1. Make product that noone wants.
      2. ?????
      3. LOSS!!
      4. ?????
      5. Sue the shit out of everyone.

      --
      If I had created the world I wouldn't have messed about with butterflies and daffodils. I would have started with lasers
    3. Re:Game plan by fiendo · · Score: 4, Insightful

      Monopoly--1 : exclusive control of a particular market that is marked by the power to control prices and exclude competition and that esp. is developed willfully rather than as the result of superior products or skill (Source: Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.)

      By the legal definition I would say that Microsoft is a monopoly and this position has been upheld in court. As Adam Smith pointed out monopolies are the enemy of good management and therefore antithetical to a free market. It is in the best interest of healthy competition to regulate monopolies and restrain them from abusing their power.

      --
      I went to the city because I wished to live without deliberation.
  8. 750!!! by gbulmash · · Score: 5, Funny
    Seems like the standard settlement with Microsoft is $750 million. Maybe they just have suitcases with $750 million pre-prepared. When it comes time to settle, Ballmer takes one out of the closet, opens it up, shows it to the aggrieved party, and says "how does $750 million sound to you?"

    Their little eyes grow wide, their little palms grow sweaty, and their mouth dries up. "Yes, Mr. Ballmer. That will be fine."

    They reach for the suitcase, but Ballmer snatches it away. "First you'll have to sign this," he says, pushing a settlement agreement their way. A pen lies on top, and as they pick up the pen, it extends a small needle and pricks their finger, sucking their blood into the inkwell.

    They sign.

    As they take the suitcase and walk out of Ballmer's office, they hear an evil laugh behind them... muahaha. They turn to see that Ballmer has grown to twice his size, sprouting ram horns from his forehead. "You signed it in blood," he bellows. "Your soul is mine!!!!"

    But hey, $750 million can buy a heck of a good time while you're still alive.

    - Greg

  9. So... by Ikn · · Score: 5, Funny

    Microsoft finally learns the same hard truth we've all learned: once you've touched RealPlayer, THEY NEVER GO AWAY.

    --
    I know nothing
  10. Oh, great by jleq · · Score: 4, Insightful

    I stopped using RealPlayer after the "G2" version came out (1998, I think?). Even then, it was becoming bloated crapware. Just what I want is for Microsoft, how ever evil they may be, to be FORCED to include that crapware with Windows. OS X includes iTunes, and nobody complains about that. Most Linux distros include XMMS, and nobody cries.

    RealNetworks has done more damage to themselves than anyone else could, through the overpromotion of unstable software, with annoying ads, and 192352398235 different taskbar crapplets that nobody wants. After most streaming sources went to either streaming MP3 or WMA, Real pretty much died. They lost a market they created due to poor management and bad software. Nobody cares about them anymore, and frankly, I wish they'd just get bought or disappear alltogether.

    Note to mods: please only select the "-1 Flamebait" box if you REALLY think I'm flaming. Personally, I don't think I am, but it's up to you.

    1. Re:Oh, great by 99BottlesOfBeerInMyF · · Score: 4, Insightful

      OS X includes iTunes, and nobody complains about that. Most Linux distros include XMMS, and nobody cries.

      The makers of those OS's don't have monopolies. Sheesh, how can there be so many people on Slashdot that don't understand the legal or economic difference between bundling products and bundling products with a monopolized product?

      They lost a market they created due to poor management and bad software.

      Yup, Real did a lot of crap that I, as a customer did not like. The question is, did they do those things out of desperation because they were being driven out of business by anti-competative actions? We will never know the answer to that, nor what would have happened if the market had been allowed to decide. Instead we have to deal with what MS has given us. We don't let armed robbers go because they robbed a jaywalker. The problem is these settlements don't work either. Instead of MS being properly punished and a forced change in it's behavior, we get financial settlements where they pay off the victims with money gained from their crimes against other victims. Guess who is really paying. MS's customers.

  11. Damn by squoozer · · Score: 4, Funny

    I don't know who to hate most Real or MS. Why can't we lobby for a new law that allows for both parties to lose.

    --
    I used to have a better sig but it broke.
  12. Habitual offender? by hackstraw · · Score: 4, Insightful


    If I speed down the road, but not too bad I get a fine.

    If I speed down the road going too fast, I have to go to court, potential of jail time, fines, etc.

    If I continue to do these things over and over again, I'm labeled as a habitual offender and have other court fun to go through.

    Microsoft on the other hand just has to keep doing what they are doing and paying fines and now doing "community service" by putting advertisements for a competitor on their websites (which I think is wrong).

    Personally, I would prefer just to be in the fine department for my behavior. Where do I get these privileges?

  13. Funny article about RealPlayer by digitaldc · · Score: 4, Informative

    http://jogin.com/weblog/archives/2004/02/29/real_o bnoxious

    "Unfortunately, playing video streams is only a very small aspect of what Real Player does; Real Player, most prominently, is a small bastard with inferiority complex and delusions of grandeur, not too different from Napoleon. Although Real Player's task is simple and limited to a certain timeframe, Real Player defaults to running at all times, whether its limited functionality is needed or not, and claims a seat for itself in the throne commonly called the systray.
    When you install Real Player, you can either choose an express install, or custom install. If you pick express install, Real Player simply installs itself with every option and feature turned on. If you choose the custom install, the process is a blend between an installer and a Pokemon-like game of gotta-uncheck-all-checkboxes."

    couldn't have said it better

    --
    He who knows best knows how little he knows. - Thomas Jefferson
  14. Real Player by gregbains · · Score: 4, Informative

    Thanks to the BBC using Real Player for it's streaming media I have Real Player installed, but also thanks to the license fee for the BBC I get Real Player sans everything else for free, so no ads, no other crappy software, just real player. Still not great, and I'd prefer something else, but it's better than download Real Player from real.com as the basic edition

  15. Why can't we just let MS choke Real to death? by AFCArchvile · · Score: 4, Insightful

    Oh, GREAT. If there was one piece of software that I wanted to see starved off by Microsoft's monopoly, it was RealPlayer. I don't like how Windows Media Player 8/9/10 promotes DRM, installs a DRM service in every Windows XP computer (mspmspsv.exe), and may potentially install more DRMware at the driver or kernel level, but Real is no better. Their software is harder to install, and more bloated and cumbersome than Windows Media Player 9. Their software uses an even worse "web portal" interface than WMP, and performs worse in erratic stream playback than WMP. And their RealOne player is one of the most invasive pieces of software when installed. It's basically spyware and malware.

    From what I've seen, support for streaming media is heading away from Real and toward Windows Media merely because all the computers with Windows XP preinstalled can play WM files already, as opposed to having to download and run the Real installer. The fact that many media sites already have to deal with enterprise MS software licensing may have something else to do with it. Despite being an ISO standard and natively streamable, MPEG 4 has been plagued by the codec mess (mostly Microsoft's fault) four years ago. There is no single "MPEG 4" codec; instead, there's Microsoft's MPEG 4, DivX, XviD, QuickTime, blah, blah, blah. Users are turned away due to the sheer number of codecs they have to download just to view one video. The newest "universal" MPEG format is still MPEG 2, and it doesn't get the compression that many people need to make video sizes or bandwidths palatable to the customers.

    And so now, in the next version of Windows, we'll all have RealONE bundled in, but hopefully with less access violations and bluescreens than the program delivers now. And, hopefully, with a more consumer-friendly and less surreptitious frontend. I'd rather watch Microsoft choke Real to death with WMP; despite the DRM and Microsoft-coded bizarreness, Real's software is worse.

    --
    "Ancillary does not mean you get to rule the world." --U.S. Circuit Judge Harry Edwards, speaking to the FCC's lawyer
  16. Hot off the presses! by Anonymous Coward · · Score: 3, Funny

    In other news, descendants of Attila the Hun are on the verge of a $5billion settlement with Microsoft in which they accuse the company of lifting its business practices from their ancestor's playbook.

  17. Real Alternative to "real" player by TinBromide · · Score: 3, Informative

    http://www.videohelp.com/tools?tool=Real_Alternati ve [videohelp.com] it works with media player classic for playing real streams. I haven't fired it up on my new hard drive yet, but it worked (hid the buffering message, but i suspect it may have been at 33%)

    --
    Is it sad that I am more likely to recognize you and your posts by your sig than your name or UID?
  18. Correction : Consumers are paying REAL 750 Million by Shivetya · · Score: 3, Insightful

    It really should read that consumers are paying Real 750 million dollars. Microsoft isn't going anywhere, hence everyone who buys a preloaded PC or uses services of someone who did will indirectly pay this fine.

    Most fines against businesses simply move money from one businesses pocket to another or to the government. The consumer never sees any of it back. Unless a company is driven under by penalty for their actions there is no real loss. One set of shareholders sees a smaller return compared to another. Those shareholders are probably the only "real" people affected directly by the exchange.

    It does look like a feeding frenzy at Microsoft's expense. Most of their competitors failed because of inferior programs. Netscaped sucked for most the 4.xx series and Real has been horrid bloatware/adware for God knows how long.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  19. The EU should also drop that anti-trust charge by FlorianMueller · · Score: 4, Insightful
    I've fought against Microsoft on the software patent front, and I'm now trying to win Europe's premier political award so that the Microsoft-sponsored prize money hopefully goes to an anti-patent NGO (voting recommendations here). I know that Microsoft has a history of turning one monopoly into the next.

    However, I really think the EU made itself ridiculous by ordering Microsoft to ship an alternative version of Windows without the Media Player. Microsoft created that "Windows Reduced Media Edition" (a name that doesn't quite suggest you should buy it) and sold it at the same price (!) as Windows with the Media Player. Obviously they didn't do anything to generate demand for that particular version. So what's the point in all of that? It just became a matter of principle for some bEUrocrats.

    Moreover, the EU Commission lacks a consistent strategy for the software market. On the one hand, they start those anti-trust proceedings and believe they make the market more competitive (which the "Windows Reduced Media Edition" obviously didn't). On the other hand, the EU Commission was a driving force behind that EU software patent directive. And now the EU Commission even wants to retry and legalize software patents in Europe as a side effect of a so-called "community patent regulation":
    ZDNet UK: EC slipping software patents "through backdoor"
    TheInquirer.net: EU attempts to intro software patents by the back door

    That makes no sense to me. A bundling of Windows with the Media Player isn't even 1% as bad as patents on multimedia data formats. The bundling may affect market share over time and it may make consumers less likely to choose another software for playing digital media, but patents constitute monopolies from day one and potentially eliminate all choice.

  20. Good to hear it by mcc · · Score: 3, Funny

    So now that that's dealt with, can the rest of us sue RealPlayer and demand a settlement that they stop sucking?

  21. Rob said it...Re:Mac/Linux by redwoodtree · · Score: 3, Interesting

    In the press conference, Rob literally said "We will be releasing Rhapsody to Mac and Linux in the web browser." My mouth about hit the table.

    If Real does release that (and it works..which are two big IFs) then they will be the first subscription music service on the Mac. They might actually gain some street cred with the linux/mac crowd and some more mind share of subscription service.

    Knowing Real, they'll screw it up.