Judge Grows Impatient with MS Defense
Intel's defense lawyer drops legal bombshell
WASHINGTON, D.C. - When hyper-aggressive
defense lawyer Steven Holley raised Intel's
anti-competitive problems with the federal government
at the Microsoft antitrust trial this week, it was meant
to be a bombshell that would send shockwaves from
Silicon Valley to Wall Street.

Isn't this a common pattern to deny technology to
companies that Intel seeks to punish? Microsoft's
Holley asked government witness Steven McGeady
vice president of Intel referring to a Federal Trade
Commission lawsuit accusing Intel of violating antitrust
laws.

Absolutely not, the bearded McGeady shot back.

Here was Microsoft the software giant accusing Intel,
its longtime partner, of violating antitrust laws in an
attempt to deflect McGeady's evidence of
anti-competitive tactics by Microsoft - a modern-day
Clash of the Titans in the making.

But it ended up being a hit-and-run tactic.

Although the everybody-does-it charge is central to
Microsoft's defense in this landmark antitrust case,
Holley had to quickly move on to other subjects
because the man whose opinion counts the most -
Judge Thomas Penfield Jackson - isn't impressed with
it.

And Jackson, who had been leaning back in his large
leather chair, had suddenly snapped forward.

That defense is really a smokescreen. It may be good
p.r. strategy, but it's clearly not holding much weight
with this judge, said antitrust lawyer David Falk.

Holley's quick retreat was the clearest sign to date of
how the gruff and gravelly-voiced Jackson has taken
over the trial's spotlight - putting Microsoft at an early
disadvantage.

A seemingly lackadaisical figure earlier in the trial,
Jackson, who will be deciding what if any remedies to
impose on Microsoft, is displaying growing signs of
irritation with Microsoft's tactics.

And that's increasing speculation that he's leaning
toward the Justice Dept.'s arguments - and that
Microsoft is already looking ahead towards taking this
epic legal battle to higher courts.

Last week Jackson interjected himself into the legal
give-and-take, blasting Microsoft's Wall Street lawyer
Theodore Edelman for mischaracterizing the testimony
of Apple's Vice President Avadis Tevanian and then
taking over the questioning altogether while an
embarrassed Edelman helplessly watched.

An even more ominous moment for Microsoft came
when Jackson chuckled in disbelief at CEO Bill Gates'
memory lapses when portions of his videotaped
deposition were played in court.

Some of Jackson's pique, officials close to the case
say, is because a trial that he hoped would last for two
months may now stretch past Christmas.

Jackson, a former Republican precinct chairman in
Maryland who was appointed by President Reagan in
1982, has a reputation as a crusty but by-the-book
jurist.

Jackson upheld the first challenge to the independent
counsel law - the statute that allowed Kenneth Starr to
bring impeachment charges against President Clinton -
by former White House aide Michael Deaver.

Jackson also rejected Sen. Bob Packwood's efforts to
keep his diaries private in the investigation of sexual
misconduct and has ruled against giving the president
line item veto power.

Jackson has also put down some stiff rules about the
crowds that are attending the Microsoft case.

He refused to move the trial into a bigger courtroom -
even though one was available.

-- Niles Lathem - 11/12/98
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