US Asks Court to Ignore Microsoft RequestThe government on Friday asked the U.S. Court of Appeals to ignore Microsoft's urging to begin work on the firm's appeal as the legal tennis match in the antitrust case continued.The U.S. Justice Department and states suing Microsoft said the software giant was wrong in asserting that the states' case would be split off and remain with the appeals court even if the Supreme Court agreed to directly hear the federal case. The government brief also repeated arguments made earlier in the week that the appeals court should defer any action on Microsoft's request to stay a breakup order against the company until the lower court has ruled on the firm's stay request and the issue of which court will hear the appeal is resolved. Since District Judge Thomas Penfield Jackson issued his order June 7 to split Microsoft in two to prevent future antitrust violations, both sides have jostled to go before the higher court of their choice. Microsoft, knowing that the Court of Appeals previously overturned Jackson in a related Microsoft matter, has been trying to ensure its appeal goes there first. But the government side, arguing that the case is of national economic importance, is asking for direct hearing to the Supreme Court under a mechanism available in major antitrust cases. Microsoft Corp. warned on Friday there could be a material impact on its stock if it does not get sufficient legal relief through a stay of a court order to split the company, and, or, a successful appeal. ``The failure to obtain sufficient relief through the stay and/or the appeal could have a material adverse effect on the value of Microsoft's common stock,'' the Redmond, Wash.-based company said in a Securities and Exchange Commission filing. Microsoft shares closed on Friday up 3/16 to 72-9/16 before the company issued its warning. In the past 52-weeks, the stock has traded as high as 119-15/16 but has been battered as low as 60-6/16 on its legal woes and general tech stock weakness. Although Jackson, in his breakup order, stayed the actual split of Microsoft until the appeals process is exhausted, he ordered changes in its business practices that would begin Sept. 5. They include forcing Microsoft to open parts of its Windows operating system code to rivals and ending some exclusive contracts. Microsoft's argument that the state and federal cases could be separated may substantially complicate the case and delay its final resolution. The government side told the Court of Appeals that the Justice Department and states cases had been consolidated at Microsoft's request in the district court. Although Microsoft was correct that separate state cross-examination of witnesses had been requested, Jackson denied the motion. Separating previously consolidated actions would defy the expedited Supreme Court review that the law allowed. ``Indeed, one judgement cannot simultaneously be appealed to two different court,'' the government said. Microsoft has said it will file its objections with Judge Jackson on Monday to the government request for direct certification of the case to the Supreme Court. If Jackson grants the government's request there is no guarantee the high court will take the case, it could decide to refer the matter back to the Court of Appeals. |
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