JUSTICE DEPARTMENT ISSUES MICROSOFT CONSENT DECREE
COMPLIANCE ADVISORY

WASHINGTON, D.C. – The Department of Justice today issued a Microsoft Consent Decree Compliance Advisory concerning licenses Microsoft proposes to offer for server software under the terms of the proposed consent decree. Because Microsoft agreed to be bound by certain provisions of the proposed decree pending the approval of the Court, it must begin offering the licenses on August 6, 2002.

The Department issued the advisory as part of its monitoring of Microsoft's implementation of the proposed consent decree agreed to by Microsoft, the United States and the nine settling states on February 27, 2002. The goal is to ensure that the public is apprised of important developments in compliance and thereby to facilitate appropriate input to the Department from the computer industry.

The Department has not pre-cleared the licenses and is undertaking a careful and thorough review to determine whether they are compliant with the terms of the proposed consent decree. The advisory states that, "The Department is strongly committed to ensuring that the licenses provide a mechanism for reasonable and non-discriminatory access to the relevant technology in a manner consistent with the terms of the proposed final judgment." The advisory also states that, "... the Department would benefit from industry input."

Although this is the first Consent Decree Compliance Advisory, the Department may periodically issue additional advisories as appropriate. The Department also filed today a notice of the advisory with the Court.

The advisory is attached.

U.S. Department of Justice

Microsoft Consent Decree Compliance Advisory — August 5, 2002

As part of its monitoring of Microsoft's implementation of the Proposed Final Judgment agreed to by Microsoft, the United States and the nine settling Plaintiff states (as modified and filed with the Court on February 27, 2002), the United States may periodically issue Microsoft Consent Decree Compliance Advisories. This is the first such Advisory.

By a Stipulation filed with the Court on November 6, 2001, Microsoft agreed to comply with the terms of the Proposed Final Judgment pending its entry by the Court. Section III.E. of the Proposed Final Judgment requires Microsoft to make available for use by third parties on reasonable and non-discriminatory terms certain technology used by server operating system products to interoperate with a Windows operating system product. Under the terms of Section III.E., Microsoft must offer this technology for license no later than August 6, 2002. Microsoft has informed the Department that it will begin to offer these licenses and start the process of negotiating the terms with prospective licensees on August 6, and that information concerning the licenses will be available on Microsoft's website on that day.

Microsoft last week provided the Department and representatives of the settling states with drafts of the licenses that it proposes to offer.The licenses are complex and present novel issues that require comprehensive analysis. The Department has not pre-cleared the licenses. The Department is undertaking a careful and thorough review and evaluation of the terms of the proposed licenses to determine whether the licenses comply with the Proposed Final Judgment.

The Department is strongly committed to ensuring that the licenses provide a mechanism for reasonable and non-discriminatory access to the relevant technology in a manner consistent with the terms of the Proposed Final Judgment. As part of its review of the proposed licenses, the Department would benefit from industry input. Therefore, the Department will be consulting third parties likely to be affected by the licenses. The Department, however, also would welcome input from other interested parties. Communications to our compliance team may be addressed to: Renata B. Hesse, Chief, Networks & Technology Section, Antitrust Division, United States Department of Justice, 600 E Street, NW, Suite 9500, Washington, DC 20530.

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