Microsoft settlement a huge plus for schools

Montana consumers and schools will get up to $12.3 million in vouchers to buy computer equipment and training, under a class-action settlement announced Monday by Microsoft Corp. and a Helena law firm.

By MIKE DENNISON
Tribune Capitol Bureau

The Meloy law firm sued Microsoft three years ago on behalf of Montana consumers, alleging the computer software giant violated antitrust and unfair competition laws when pricing and marketing its products.

The class-action lawsuit in state court is a spin-off of the national antitrust case filed against Microsoft by the U.S. Justice Department several years ago.

Under terms of the Montana settlement, consumers who bought Microsoft computer operating systems or certain types of software between March 1996 and August 2002 can apply for the vouchers.

The vouchers can be used to buy computer equipment from any manufacturer.

Some of Montana’s poorer schools also stand to benefit.

Microsoft has agreed to donate one-half of any unclaimed settlement proceeds to needy schools, in the form of vouchers that can be redeemed for computer equipment and computer training for teachers.

"I am delighted that a significant portion of the Microsoft settlement will directly benefit Montana school children," said Linda McCulloch, state superintendent of public instruction.

"This settlement is most welcome and will be put to good use in classrooms across Montana," she added.

Schools will be eligible if at least 50 percent of their students qualify for the federal free or reduced-price lunch program.

Microsoft is estimating that public schools serving one-fourth of Montana students will be eligible.

However, McCulloch said her office estimates that schools serving only about one-sixth of Montana students are eligible.

Only Longfellow and Whittier elementary schools in Great Falls appear to be eligible, she said.

Great Falls Superintendent of School Bryan Dunn said Monday he hadn’t yet heard of the settlement and wasn’t sure about its potential impact on Great Falls schools.

McCulloch said Microsoft intends to notify eligible schools beginning this December on whether they’ll receive any vouchers. The schools will have until mid-2004 to claim the vouchers and another year to use them.

In a statement, Microsoft general counsel Brad Smith said the company is "pleased by the opportunity to help schools all across Montana get the computers and software they need."

"This settlement allows us to focus on the future and building great software, and avoids the cost and uncertainty of litigation," Smith added.

In agreeing to the settlement, Microsoft admitted no wrongdoing.

The lawsuit accused Microsoft of using unfair trade practices when selling and marketing its computer software and operating systems, such as Windows, Word, Excel and its "Office 2000" package of software.

Anyone who bought these products for use in Montana from March 1996 to August 2002 can apply for the vouchers.

Purchasers of the products also could "opt out" of the settlement and file their own legal action against Microsoft.

Jennifer Hendricks, an attorney in the Meloy law firm, said notices will be sent to people who can be identified as Microsoft products purchasers and that notices will be printed in newspapers. Claim forms will be available on notices and on a Web site, she said.

Those eligible to file claims can include anyone from a business with an extensive computer system to an individual who bought a personal computer that has a Windows operating system, Hendricks said.

Consumers who bought one or only a few Microsoft products may not even have to provide proof of purchase to file a claim, she said.

Mike Meloy of the Meloy law firm said the settlement will benefit consumers, businesses and schools, and that his firm is "proud to have achieved this result."

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