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IP: From MS --- re Microsoft proposed settlement
From: David Farber <dave () farber net>
Date: Thu, 22 Nov 2001 10:01:47 -0500
Subject: Re:IP: Microsoft proposed settlement Date: Wed, 21 Nov 2001 18:11:24 -0800 From: "Linda Stone" <lindas () microsoft com> To: <dave () farber net> Dave, There have been a few postings about the proposed settlement that would resolve over 100 class action lawsuits that alleged Microsoft overcharged customers. What people seem to be missing is that the proposed settlement is explicitly product-agnostic. Microsoft will be providing a $150 million initial grant and up to $100 million in additional 1-to-2 matching funds to a new education foundation. If fully funded, therefore, the foundation will have $450 million and all of that money is available for grants to local schools to buy whatever hardware and software they want. The decision on what hardware or software to utilize will be made at the individual school level. Schools that are using Macs today -- or who want to begin using Macs -- can apply for a grant to purchase Macs and Mac-related software. The Foundation is independent of Microsoft, and it is explicitly required to make grant awards on a non-discriminatory basis. Similarly, Microsoft will pay $160 million in cash into a separate fund overseen by the new education foundation, which will be used for technical support programs for the participating schools. Once again, the technical support programs are to be product-agnostic -- regardless of whether schools use Macs or PCs, regardless of whether schools use Microsoft software or any other software, they can receive technical support through the programs funded by the foundation. In addition, Microsoft will pay $90 million to train teachers, administrators and support staff in how to use the technology provided by the settlement, how to integrate technology into their curricula, and how to support the technology they use. Once again, this training will be available for Microsoft and non-Microsoft technology, depending on the products the schools select. Microsoft will also establish a program to provide operating systems for refurbished computers, and Microsoft is required to ensure that 200,000 refurbished Pentium-class PCs and Macintosh computers are available to eligible schools each year. Once again, the proposed settlement explicitly covers alternatives to Microsoft-based PCs. In addition to all of these hard-dollar commitments, Microsoft has also agreed to provide free software to eligible schools. The value of this software can only be estimated as it depends on the volume requested by schools, but it may exceed $500 million valued at Microsoft's heavily discounted academic prices. Once again, schools with PCs can get a wide range of PC titles free of charge, and schools with Macs can get Microsoft's Mac titles, such as Office and the Magic Schoolbus learning series. Even though Microsoft currently has very attractive academic pricing for schools, making this software available for free will be a tremendous boost for these struggling schools. Educators from around the country have responded to this proposed settlement in a very enthusiastically -- this settlement will provide a huge boost to more than 7 million disadvantaged students and more than 400,000 teachers at our nation's neediest 12,500 schools. Lots of people have questioned the legitimacy of these class-action lawsuits to begin with -- Microsoft has traditionally priced its products as low or lower than competitor products. Rather than waste millions of dollars by both sides on litigation, this settlement would put these issues behind us and bring enormous benefits to America's poorest schools. I hope this information is helpful. Linda Stone VP, Office of the CEO Microsoft Corporation
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- IP: From MS --- re Microsoft proposed settlement David Farber (Nov 22)