CLOUD

SANTA CLARA, CA -- Sun Microsystems, Inc. announced today that it has filed a private antitrust lawsuit against Microsoft Corporation. The suit, filed in the United States District Court in San Jose, seeks remedies for the harm inflicted by Microsoft's anticompetitive behavior with respect to the Java platform and for damages resulting from Microsoft's illegal efforts to maintain and expand its monopoly power. In a conference call Mike Morris Sr. VP and General Counsel for Sun said the monetary figure sought in the lawsuit could be “North of $1 billion.” In his opening statement Morris said, “Our suit seeks compensation from Microsoft for illegally impeding Sun’s business and harming the Java platform, acts that Microsoft was found guilty of in Federal Court in Washington. It also seeks injunctive relief in order to stop certain of Microsoft’s anti-competitive behavior from continuing to distort the marketplace. “Our complaint, which along with our preliminary injunction motion can be found at our Website, is comprehensive, detailed and speaks for itself. We believe we have a compelling case. It’s important that this suit be given its day in court and we look forward to addressing the particulars of our complaint at that time,” Morris stated. The nuts and bolts of Sun’s complaint against Microsoft are as follows. Sun alleges Microsoft has been involved in: -- Fragmenting the Java platform; -- Flooding the market with incompatible Java Runtime Environments; -- Forcing other companies to distribute or use products that are incompatible with Java; -- Significantly limiting Sun's distribution channels for the Java Runtime Environment; -- Intentionally interfering with the development of Java-based applications for compatible runtimes; -- Copyright infringement resulting from Microsoft's distribution of an unlicensed implementation of the Java Runtime Environment; -- Intentional creation of incompatibilities between Microsoft software and competing technologies, thereby raising switching costs for consumers and reducing consumer choice. In addition to the alleged crimes against Java, Sun’s Morris mentioned that the company believes Microsoft’s ultimate goal is to establish nothing less than Microsoft-controlled “choke-points” to Internet access so that Internet access is available only using products made by, or approved by Microsoft. Sun's filing points out that, in recent antitrust proceedings brought by the United States, 19 individual states and the District of Columbia, ``Microsoft was held to have illegally maintained its monopoly over the market for Intel-compatible personal computer (''PC``) operating systems by engaging in anticompetitive acts that impeded the distribution and/or use of alternative platforms that threatened Microsoft's monopoly, including Sun's Java platform.'' ``While this suit is based on the past actions of Microsoft, Sun also believes that Microsoft's continuing practices in the marketplace represent a threat to lawful competition and the millions of developers who depend on the existence of an open software industry. This behavior manifests Microsoft's goal to use its monopoly position to turn the Internet into its proprietary platform. What is at stake here is the future of an open software industry and an open Internet,'' continued Morris. In its suit, Sun is seeking preliminary injunctions requiring Microsoft to: -- Re-open the Java platform distribution channels so that developers can write applications to an open software platform and customers can have greater choice in the marketplace. -- Distribute Sun's current binary implementation of the Java plug-in as part of Windows XP and Internet Explorer; -- Stop distribution of Microsoft's Java Virtual Machine through separate downloads. Sun also is seeking a permanent injunction requiring Microsoft to disclose and license proprietary interfaces, protocols, and formats and to unbundle tied products, such as Internet Explorer, IIS web server, and the .Net framework. In addition to this, Sun's suit seeks treble damages as provided by law. “Sun has an obligation to its business and its shareholders to pursue remedies for the harm that has been done to Sun by Microsoft and to ensure marketplace competition is undistorted by the illegal acts of a convicted monopolist,” Morris said. In closing his opening remarks Morris also said that the decision to file the suit was not something the company took lightly and came only after careful consideration. He also said Sun will remain focused on its business, its customers, and returning the company to profitability. Sun’s stock was up over one dollar on news of the lawsuit. For more information visit www.sun.com/lawsuit