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Microsoft Chided Over Exclusive Music Idea

grumpyman writes "The federal judge overseeing Microsoft Corp.'s business practices scolded the company Wednesday over a proposal to force manufacturers to tether iPod-like devices to Microsoft's own music player software. Microsoft blamed the proposal on a newly hired, "lower-level business person" who did not understand the company's obligations under the antitrust settlement."

24 of 331 comments (clear)

  1. Suuuure by gbulmash · · Score: 4, Funny
    Microsoft blamed the proposal on a newly hired, "lower-level business person" who did not understand the company's obligations under the antitrust settlement.

    Possible responses from the judge:

    • The Surgeon General has determined it is hazardous to your health to blow smoke up my ass.
    • Pull my other leg, it has bells on it.
    • And after I accept that, you've got a bridge you want to sell me?
    • Ha ha ha ha! Stop it, you're killin' me!
    • Ahhh, the blame it on the new guy defense. Not gonna fly. Next excuse?
    • (to lead counsel) Okay. If you say so. Are we still on for golf in Bermuda next week?

    - Greg

    1. Re:Suuuure by cgenman · · Score: 5, Insightful

      low level business person who did not understand the company's obligations under the antitrust settlement.

      Ballmer?

    2. Re:Suuuure by waferhead · · Score: 4, Funny

      "Ballmer?"

      No, he said "Low Level"... Not "Neanderthal".

  2. Of course by dtfinch · · Score: 5, Funny

    There's nothing Microsoft could have done. Those low level interns practically run the company.

    1. Re:Of course by MLopat · · Score: 5, Insightful

      Yeah well that's closer to the truth than you think. 10% of the company is comprised of co-ops. They typically put in longer hours, do more work, and are the real boys and girls in the trenches.

    2. Re:Of course by rtb61 · · Score: 5, Insightful

      Well perhaps they would get more senior people doing it if there were considerable fines and minor jail terms for continued attempts to thwart the princicples of the settlement as minimal as they are. This failure to apply genuine fiscal pressures upon microsoft, especially considering the cost to government of the continued overseeing of the monopolistic machinations of bog balls and wee willie, is very strange to say the least ;-).

      --
      Chaos - everything, everywhere, everywhen
  3. "lower-level business person" by Baricom · · Score: 4, Funny

    Can't get any lower than scapegoat, right?

  4. "Microsoft regrets by ceoyoyo · · Score: 5, Insightful

    the proposal ever was sent to music-player manufacturers..." Wow, they let the new coffee getter conference call with Sony by himself? Huh.

    1. Re:"Microsoft regrets by Anonymous Coward · · Score: 4, Insightful

      Obviously there long enough to understand how Micorsoft works though, just not that those inner workings should never be made so ...public. Hilarious that MS's retraction related to adherence to "the company's obligations under the antitrust settlement" and not to the fact it's a loathsome business practice. One more window into the Redmond giant.

    2. Re:"Microsoft regrets by mattjb0010 · · Score: 4, Funny

      the proposal ever was sent to music-player

      Come on, get with the times. They're not music players or mp3 players any more, they're iPod-like devices.

    3. Re:"Microsoft regrets by steelfood · · Score: 4, Insightful

      That's one of the things that's so frightening, and so ineffectual about the settlement. It's possible Vista's launch is planned to coincide with the ending of their settlement terms. It'll probably be something like one app in Office 12 (like Word or Powerpoint) with it, or even a dumbed down version of said product (like the way Outlook Express is). After all, when people buy Office, they buy it for Word, Excel, Powerpoint, and Outlook as a package. Including Word with Vista won't hurt sales of office, but it might help to kill the whole open formats thing.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    4. Re:"Microsoft regrets by einhverfr · · Score: 5, Insightful

      IANAL, but these are my thoughts.

      Which makes you wonder what Microsoft will be doing once those clauses of their settlement expires in 2008. Perhaps what they're really regreting is the manager letting the cat out of the bag before they could legally do it.

      Doesn't matter. Antitrust law doesn't expire in 2007, only close government supervision does. If anyone thinks that this expiration means the end of Microsoft's antitrust woes, they need to think again. The reason is something called collateral estoppel. Basically all those facts decided as a necessary part of that portion of the case not overturned on appeal is beyond relitigation. I.e. in any future antitrust suit, Microsoft cannot say "We were never a predatory monopoly." The best they can say is "We are not a monopoly any more" or maybe "what we are accused of doing is not predatory." I.e. the litigation changes from establishing facts to establishing *changes* of facts since they were established.

      What this means is that the whole point of the antitrust case against microsoft was the judgement that Microsoft both was a monopoly and had broken antitrust law in maintaining it. The exact details of the judgement are largely irrelevant. Indeed had Microsoft been broken up, it would have been *easy* to argue that facts had changed "Yes, Microsoft was a monopoly, your honor, but we were broken up and so the facts from the prior case no longer apply." THe fact that they are largely allowed to continue doing business as usual is *not* a good thing or a light punishment for Microsoft. Indeed it is largely a declaration that it is open season on Microsoft from an antitrust litigation point of view (in that the bar has been lowered to a rediculously low level for such claims, including continuing violations).

      Already there are over 100 antitrust suits against them winding their way though a multidistrict panel including Novell v. Microsoft, Go v. Microsoft and countless more. The antitrust settlement might be a minor cut to Microsoft, but it is a cut that occurs in waters populated by a large number of man-eating sharks. Sucks to be Microsoft. Which is one reason I no longer work there.

      --

      LedgerSMB: Open source Accounting/ERP
    5. Re:"Microsoft regrets by steelfood · · Score: 4, Interesting

      Antitrust law doesn't expire in 2007, only close government supervision does.

      You are right. Having a monopoly isn't something the government can regulate; being a monopoly is not against the law. Companies can't just sue another company for being successful. It is only when Microsoft engages in unfair business practices where they use the advantages of their monopoly status that it becomes an issue of antitrust. But whether to sue them under antitrust laws is up to the government, specifically the attorney general (antitrust is a civil matter, not a criminal one).

      That largely depends on the administration in office. Sure future antitrust violations will be dealt with more harshly. If they never get sued by the government, the only thing that'll happen is that they'll pay some large sum in fines to a bunch of small or already-dead companies and go about their merry way. And even if the DOJ does get involved, well Microsoft received a large fine the last time, setting the precedent to fine them even more (yes, it can be argued that fines aren't enough, but then again, that was argued for this case too and Microsoft was still largely fined). Anyhow, this administration is likely not going to act and we know little to nothing about the next one. Yet the settlement conveniently expires before then. By the time the next administration comes around to suing them again for unfair business practices, they'd have bought up all the so-called victims and the prosecution wouldn't have much of a leg to stand on except for Microsoft's history. And all Microsoft would need to ask then in defense is where the prosecution's witnesses are.

      Once they're out from under the microscope, it doesn't give them free reign to do as they please, but it does loosen their chains considerably.

      Already there are over 100 antitrust suits against them winding their way though a multidistrict panel

      And there have been countless antitrust suits and unfair business practices suits before that. What really is litigation to Microsoft? Just part of the cost of doing business. Microsoft has been engaged in this business model for a very long time. Everyone sues Microsoft. Microsoft either settles with them for some amount of money, or loses, and is fined some amount of money. To Microsoft, these fines and suits are looked at like their utility bills.

      Which is one reason I no longer work there.

      I would work for Google too if given the choice. They get free food. :p

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
  5. The good old days at MS by MLopat · · Score: 5, Funny

    I miss the good old days at Microsoft. When we used to just do whatever the hell we wanted, and would write a cheque for the consequences later. :)

  6. of course... by sapgau · · Score: 5, Funny

    It was one of those lower level, chair throwing, teeth grinding employees!!

  7. did not understand? by the-build-chicken · · Score: 4, Funny

    lower-level business person" who did not understand the company's obligations under the antitrust settlement...and apparently been living the past 5 years without a tv.....or a newspaper.....or interpersonal contact.......in a box....wearing earmuffs......buried in a 12 foot crater on the other side of mars.

    1. Re:did not understand? by jedZ · · Score: 5, Funny

      with a sign on it saying "Beware of Leopard".

  8. Simpler explanation by aepervius · · Score: 4, Insightful

    They are "testing the water" to see how far they can go expanding their grasp without anyone reacting. Next time they will go a little less far and nobody will react etc...

    --
    C. Sagan : A demon haunted world:
    http://www.amazon.com/gp/product/0345409469/
    visit randi.org
  9. Re:Turnabout is FairPlay? by Janacek · · Score: 4, Insightful

    Completely different situation. Apple makes the iPod and has every right to limit it to run whatever software it chooses. If MS made the player nobody would have a right to say that it must run other companies' software. The problem here is MS was trying to force other manufacturers to limit their players to running only Windows Media Player software.

  10. In defense of MS by weavermatic · · Score: 5, Informative

    I am a service tech with Siemens on the Redmond Microsoft campus. We do all of their desktop support so I see A LOT of the normal day to day happenings that go on around this place. Ever since I've been here, all I've seen are people doing everything they can to make the most feature-filled, least buggy, most compatible software they can. I know for certain that the team working on Microsoft Operations Manager has in the last week broken several barriers that they were working on.

    My point is that Microsoft is not the immense evil company that they are made out to be. The people that work here are not trying to rip you off. They are not sabotaging their software. They take pride in thier work. We have copies of different linux builds lying around and some people even use Macs here. Seeing the way things work here, when Balmer says he has not thrown a chair, I believe him. Every last employee and most vendors here have IMMENSE amounts of freedom in their jobs. Microsoft hires people that present an air of trustworthyness. They want to be able to hire people, assign them a task, and be confident that the person they hired will be able to complete the task in the most efficient and responsible way possible.

    In reference to this article that obviously did not happen. Somebody was entrusted with a certain amount of authority and they misused it. Please realize that Microsoft as a company is not some huge evil organization out to rape your wallets. They are regular people who want to, like anyone else, do the best job they can.

    1. Re:In defense of MS by DrJimbo · · Score: 4, Insightful
      Please realize that Microsoft as a company is not some huge evil organization out to rape your wallets. They are regular people who want to, like anyone else, do the best job they can.

      Unfortunately that job they are working so hard at is to rape our wallets, for the benefit of their stockholders.

      The fact that the company is comprised of people doing the best they can is not really a valid argument against the idea that Microsoft is a huge evil organization. In fact, I would imagine that most, if not all, huge evil organizations are filled with regular people doing the best they can.

      --
      We don't see the world as it is, we see it as we are.
      -- Anais Nin
  11. A Tale of Two Microsoft's by einhverfr · · Score: 5, Interesting

    I used to work at Microsoft. I started out as a temp and was eventually hired full time. I have worked in PSS, and apprenticed in other departments such as testing. I as also deeply involved in many competitive discussions regarding Linux, etc. Indeed, over two years after I quit, I am still seeing the effects of suggestions I made to high-level competitive managers while I worked there.

    Pretty much every thing you say is true. To a point. It is true that Microsoft is a place where one can generally have a lot of freedom on how you do your job and you only find out once a year that the management thinks several of your most important contributions were wastes of time (a more common complaint than you might think), and that in general, it was a fairly satisfying place to work. It is true that people take a lot of pride in their work, and that most of the people there, especially those in product development, are primarily interested in making quality software, though whether they succeed or not is another question.

    The problem, however, is that there is also an odd sense of mean-spiritedness which exists as a hidden undercurrent at the company. It does not come out in every employee, and I think that the GM of my department through most of the time I was there was probably the least mean-spirited guy I have enver seen in any company, but it is a part of the corporate culture. You would not believe how many Microsoft employees might ordinarily vode democrat but voted to elect Sen. Gordon simply because Cantwell was coming from a competing company (Real Networks). Never mind the fact that she might actually understand the industry. One guy even told me that he could not in good conscience vote to elect an executive from a competitor to public office. And you would not beleive the flack I got because before I was hired, I had migrated my parents to a Linux desktop and did not want to bring them back into the fold of Microsoft software (yes they still run Linux, and no they are not nerds or techies).

    Similarly, the level of mean-spiritedness I watched seemed to go up as one ascended the management chain though there were plenty of exceptions. I knew several people who ended up in GM positions who really were great people to work for and with, and were entirely procompetitive. Sadly I also saw many more people who were fundamentally meanspirited (even if they did not at first appear this way) who were promoted as well.

    Now, I was not ill-informed as to the nature of this aspect of Microsoft corporate culture when I was hired. I had read essentially all of the court documents both regarding Caldera v. Microsoft and USDoJ v. Microsoft. And I largely accepted the employement at first due to the fact that I did not have another job lined up when my term came to an end. In other words, it was clear to me that a large percentage of senior execs (including Gates and Ballmer) were of this category of employees, and that this was a large part of what catylized this attitude in the company.

    During my time at Microsoft, I worked tirelessly to improve Microsoft software and business practices. My contributions were nearly all procompetitive. Among ideas first floated by me:
    1) One has to stop thinking of Exchange and Sendmail as competitors (as a result of this email, a POP3 server was added to Windows Server 2003).
    2) If you are going to Linuxworld, at least take the one product (SFU) that Linux guys might find interesting.
    3) SFU should ship with the operating system.
    4) If you can't provide SSH, at least provide a telnet server which uses Kerberos to encrypt the session (don't know the status on this one, but I believe it may be forthcoming)

    I don't know where my other suggestions so I will not mention them here. However, I will say that I had suggested a very aggressive competitive approach aimed at materially reducing the number of safe markets for Linux and FreeBSD. I would not be surprised if Microsoft continues to impliment other suggestions I made.

    --

    LedgerSMB: Open source Accounting/ERP
  12. Glad to see Microsoft's H1-B program is working by bombadier_beetle · · Score: 5, Funny

    The judge said Microsoft's music-player proposal -- even though it was abandoned 10 days later -- "maybe indicates a chink in the compliance process."

    Well, now we know the ethnicity of the low-level intern.

    --

    If you mod me down, I shall become more powerful than you can possibly imagine.
  13. Re:Turnabout is FairPlay? by oscast · · Score: 5, Insightful

    "You are smoking crack."

    No crack.... you're just confused.

    "The iPod and iTunes are as anti-competitive as it gets."

    Not at all... watch as I destroy your whole argument.

    "The hardware is completely closed and no third party software can run on it."

    That's not anticompetitive... Apple creates the whole product. You might as well go after radio manufacturers (for example) for not allowing other companies to automatically be suppliers for their knobs and buttons. If you create the entire product (hardware and software) you can include as much or as little as you want with it. If Windows could be used to the exclusion of PC hardware... then they would be allowed to bundle as much as they want without concern of leveraging their illegal monopoly.

    "There are also a limited number of codec's that work with the iPod."

    Actually, the iPod is pretty much on par with all other music players with regard to the number of codecs it can play.

    "The only thing that you can do is play AAC, MP3 and DRM'd apple music on it."

    Wrong. The iPod can play songs encoded with these CODECS:
    MP3 (from 32 Kbps to 320 Kbps)
    MP3 Variable Bit Rate (VBR)
    AIFF *
    WAV (with no compression)
    The following require iPod software 1.3 or later:
    M4A AAC *
    M4P AAC (Protected) *
    M4B AAC (iTunes Music Store Spoken Word files) *
    The following require iPod software 2.2 or later or iPod mini 1.1 or later:
    Apple Lossless Encoder
    * Requires iTunes 4 or iTunes 4 for Windows. AAC files also require the most recent update to the iPod software.

    "It is a black box. It even enforces DRM practices on non-DRM music."

    Its a Black box... and of course also a white one... and no it does not enforce DRMpractices on non-DRM music.

    "Apple chooses to enforce their monopoly on the market by forcing consumers to use only apple products to access the iTunes music store - No iPod, no iTunes."

    Motorola chooses to enforce their monopoly on the market by forcing consumers to use only motorola LCD displays in their phones. No Motorola LCD display, no motorola phone.

    Whirlpool chooses to enforce their monopoly on the market by forcing consumers to use only Whirlpool dish soap dispensers in their dish washers. No Whirlpool dishsoap dispenser, no Whirlpool dish washer.

    Sony chooses to enforce their monopoly on the market by forcing consumers to use only sony buttons on their stereos. No Sony buttons, no Sony radio.

    See how ridiculous your argument is? Apple creates the entire product the same way that these other companies do. Because Apple also happens to compete in a market that is largely comprised of multiple vendors each contributing a small part in a piecemeal approach to any given technological solution does not mean they are required to do so under any law as you're implying... be it legal or ethical.

    "It is a monopoly now - because Apple currently has a majority of the mp3 player market share, and a 100% monopoly on music encoded in an Apple DRM format."

    Keep in mind... its not illegal to be a monopoly. Its illegal to use your monopoly illegally. Apple is not doing anything that excludes competitors to enter into the market. Microsoft's spotty history is rife with this sort of behavior throughout its history. They didn't achieve their monopoly legally... and they certainly haven't maintained it legally. Apple on the other hand achieved their monopoly in the market through hard work and innovation. They are maintaining it by doing the same repeatedly.... over and over again.

    "They are also actively discouraging 3rd parties from interfacing with their hardware and software (real player)."

    And there's nothing illegal or unethical about that.

    "Thus, they are using their monopoly advantage to exclude competition in the market of players that can play AAC/DRM formatted music."

    No, any company can use the AAC codec and can attach DRM to the fo