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Jean-Louis Gassée Column

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  Jean-Louis Gassée Column

 

The Victim Microsoft
July 12, 2000

Found in Reason magazine, under the pen of James Hankins, Professor of History, Harvard University, jhankins@fas.harvard.edu "... if an issue is sufficiently complex, you can lie with impunity. Neither the public nor the press have the patience to sort out complicated issues regarding regulations and legal procedure. You can laugh in the face of the 10 percent of the people who understand the issues if 90 percent of the people dismiss any discussion of them as the incomprehensible legal jockeying of paid flacks. If matters seem in danger of coming into focus, obfuscate and complexify with an air of injured rectitude."

A thought experiment:

At the dawn of the video age, the consumer technology giant Megabit invents software for a video recording and playback system. The invention is, primarily, an algorithm that can digitize and compress video data and write it to an optical disk, and that can read the compressed data and reconstitute the image on your TV set.

Although Megabit makes a fair bit of money by licensing its technology to videodisk hardware manufacturers, it doesn't take much foresight to realize that while every household in the TV-mesmerized world is going to want a (as in *one*) videodisk player that uses Megabit technology, each of these households is going to buy (or rent) hundreds of videodisks every year. In anticipation of this demand and the turn-of-the-crank revenue it represents, Megabit buys up as many movie libraries as it can and starts stuffing Megabit brand videodisks into the retail channels.

Megabit nearly corners the video market; but it can't buy *every* library -- and, on closer look, the quality of the Megabit-encoded picture, while good enough for the junk your neighbors watch, makes the cinephile cringe. Furthermore, licensing the Megabit encoding format is too expensive for independent studios. Luckily, a handful of new technology companies come along that offer smaller, cheaper encryption schemes and faster, cleaner decoders. The movie studios are overjoyed, the consumer is delighted, and videodisk manufacturers, always looking for another bullet on their features lists, step up plans to include multiple decoders on their videodisk players.

Great, says Megabit to the manufacturers, we're all for competition! Just remember that the Megabit license says that if you include any other decoder on your hardware (which you are, of course, free to do), you have to use the Megabit Decoder Chooser to switch between them. And, one more thing, do try to keep in mind that under the terms of the Megabit Decoder Chooser license, you may only use the MDC to choose from among Megabit-provided decoders...

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I once preached peaceful coexistence with Windows. You may laugh at my expense -- I deserve it.

While I rambled on about peace on the hard disk, Microsoft made it lethal for a PC OEM to factory-install BeOS (or Linux, or FreeBSD) next to Windows on the computer's hard disk. If you, as a PC OEM, don't use the Windows boot manager or configure it to load Linux or BeOS, you lose your Windows license and you're dead. That's why you can't buy a multi-OS machine from Compaq, Dell, HP or anyone else for that matter. (Yes, you can buy a Linux laptop from IBM, but not one that runs the Windows Office applications you need or that can switch to Linux or BeOS when you want.)

But what if PC OEMs had always been free to offer multi-OS PCs? Would it matter? Would we have seen the emergence of Ausländer-OS applications that could solve the problems that Windows doesn't handle well -- little problems such as stability, configurability, media creation and rendering, to name a few? Feel free to speculate.

What we know for sure is that Microsoft treated the PC hardware platform as if it owned it, and thus hurt consumers, software developers, PC OEMs, OS competitors, and the industry in general. That's a layman's definition of abusing a monopoly.

Microsoft has carefully avoided public comment on this, preferring to portray itself as an innocent victim. In private, PC OEMs acknowledge the stranglehold Microsoft has on them -- but, in public, they have to take care of their shareholders (and their own families).

We welcome conduct remedies if they will prevent Microsoft from unfairly and illegally abusing their position of power.

  Past Columns:

March 7, 2001
Intemperance Makes the Suit Look Bad

February 7, 2001
The Web Device of Choice at Home

January 17, 2001
Transfer of Power

December 6, 2000
One Step Closer

November 15, 2000
Thoughts on Comdex 2000

November 1, 2000
Watching the Pendulum

October 4, 2000
Plus çà change...

September 6, 2000
Connected Appliances: A Field Report

August 16, 2000
Sub-PC vs. Appliances

July 12, 2000
The Victim Microsoft

June 7, 2000
The Power of Words

May 31, 2000
The First Be Shareholders Meeting

May 24, 2000
Intellectual Property and Internet Appliances

May 17, 2000
Spreading the Virus

May 10, 2000
Numbers and Feedback

May 3, 2000
Manufacturing Consent



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