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Atari Online News, Etc. Volume 02 Issue 02
Volume 2, Issue 2 Atari Online News, Etc. January 14, 2000
Published and Copyright (c) 2000
All Rights Reserved
Atari Online News, Etc.
A-ONE Online Magazine
Dana P. Jacobson, Publisher/Managing Editor
Joseph Mirando, Managing Editor
Atari Online News, Etc. Staff
Dana P. Jacobson -- Editor
Joe Mirando -- "People Are Talking"
Michael Burkley -- "Unabashed Atariophile"
Albert Dayes -- CC: Classic Chips
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=~=~=~=
A-ONE #0202 01/14/00
~ Amiga Resurrected?! ~ People Are Talking! ~ AOL-TV??
~ CES Panel: No e-taxes! ~ MS, Caldera Suit Ends ~ Pro-Elite For NUON
~ Win2000 Virus Detected ~ Lynx Games For Songbird ~ Nyko NUON Gamepad
~ MS Loses Temps Appeal! ~ MS Break-up Favored! ~ Acclaim's 'Tee Off'
-* Gates Gives Reins To Ballmer! *-
-* AOL Buys Time-Warner In Stock Deal! *-
-* AOL To Continue Open Access Fight, Or Not? *-
=~=~=~=
->From the Editor's Keyboard "Saying it like it is!"
""""""""""""""""""""""""""
Okay, winter had to show up here in New England eventually!! But, it was
nice while it lasted - 303 days since the last time there was any measurable
snow in this area! And man, it's been _cold_ the last few days!
How about the computing technology headlines this past week! America Online
Buys Time Warner?! Bill Gates steps down as CEO of Microsoft?! Wow! Not
even in my wildest dreams would I have imagined these two events happening!
I guess if you're going to start of the year 2000 with a bang, you may as
well make it a loud one! The times...they are a-changin'!
The AOL/Time-Warner deal is something that really woke me up. Most of us
have been using our systems (Atari or otherwise) for many years now for
telecommunications. From the days of the local BBS to places such as
CompuServe, Delphi, and GEnie - to Prodigy - to AOL, and more. The internet
is certainly becoming more and more a focal point these days. It appears
that those who don't get involved with it will be left behind. Who knows
where this will take us!
Until next time...
=~=~=~=
PEOPLE ARE TALKING
compiled by Joe Mirando
jmirando@portone.com
Hidi ho friends and neighbors. Well, this is another week when nothing
comes to mind for my column intro. I hate when that happens. I mean, you
folks read this column for a reason, right? The least I can do is to have
something of worth to add to all the stuff that other people have provided
via the UseNet.
I may not always have something spiritually uplifting or socially relevant
to add, but I always speak my mind. It's just that, at the moment, my mind
has laryngitis.
At any rate, it's been another busy week. Y2K problems have given way to
other concerns... all of them, of course, urgent.
For any of my friends who happen to read this column, please accept my
abject apologies for not corresponding lately. As much as I promise myself
that I'll make the time to get in touch, I just can't seem to make it
happen. I'll keep trying if you promise not to hold my protracted silence
against me.
For the rest of our readers, I have a bit of a treat...
The intro part of the column is over. <grin>
>From the comp.sys.atari.st NewsGroup
====================================
Artur Stachon asks:
"How come 90% of Atari Falcon demos won't work on VGA monitor ? What do I
need to do to see them on my VGA monitor ? I am sick of little Atari ST
monitors - can't stand them ! Is there any emulator that would make
Falcon see my VGA monitor as Atari monitor or whatever needed so I can
see Falcon demos ? It won't work in "ST compatible modes" I tried already.
Also, is there any good emulator except "Dawnwards" to play STe games on
Falcon ? I tried with TOS ROM switching program to make Falcon behave like
STe but it always re-boots and overwrites all."
Fredrik Egeberg tells Artur:
"The reason why most demos only run in RGB is because we (the democoders)
at least in the beginning mostly had RGB monitors or TVs.. and coding on
RGB is somewhat "easier".. this is related to the fact that most demos run
their effects not in 320*200 or so but in 320*100 or similar, the falcon
isn't fast enough to make it in 320*200.. so on RGB you can set 320*100 and
"stretch" the pixels (line doubling) vertical.. to make a 320*100 cover
the whole screen.. this is done by hardware.. on VGA the same isn't
possible unless you use 100Hz frequency.. but many older VGA monitors
cannot cope with 100Hz correctly, hence the distorted image on many demos on
VGA monitors.
These days most of us make demos VGA and RGB compatible though. I prefer
demos on RGB.. since you know it will work on TVs and RGB monitors.. and
you don't have to bother about line-doubling pixels yourself.. but VGA is
of course easier on your eyes since you don't have interlace mode.
One way to get around must be to get a multisync capable of RGB signals to
watch both RGB and VGA demos.. I heard the NEC 3D is one cool (old)
monitor able to cope with many different signals.."
Clayton Murray asks about his removable hard drive:
"I just got a Syquest "Syjet 1.5" (1.5gig removable cartridge SCSI drive).
I hooked it up to my Falcon, partitioned it, and copied most of my IDE
drive's contents to it. So far, everything is fine. Now, I'm ready to
remove the cartridge and shut everything off. Surprise!, it won't eject.
It beeps once and I can hear it click a few times, then nothing. The manual
says I can remove it by hand after it's been off for 45 seconds, but I'd
really like to get it working RIGHT. It also says if the cartridge won't
eject, it's because it is "locked". Then it goes on to say you have to use
the software included on a floppy in order to "unlock" the drive.
Aaaarrrgghhh! I DON'T HAVE A !@#*%! PC COMPUTER, so the software is
useless.
I suspect that there must be someone in this NG who has figured out how to
get around this. I'm using Falcon/ TOS 4.04/ ICD hard drive software and
utilities. Any ideas?"
"Galen" tells Clayton:
"I know this isn't what you want, but Syquest drives are designed to keep
the disk inside the drive mechanism. I'd just leave the disk in the drive
and have a 1.5GB HD."
Clayton tells Galen:
"You're right, it's not really what I wanted, but it's appreciated anyway.
Actually, I found (I think on their web page) some info indicating it was
not a good idea to leave the cartridge in the drive. Maybe it's just a
safety precaution in case you move it, etc. Also, if you have more than
1 cartridge, you of course have to eject to switch between them. Their web
page also had a whole system of info dealing with cartridges that are
afraid to come out of their shells.
My drive is working fine now. The cartridges eject like they are supposed
to. I don't know why it was misbehaving earlier. Just one of those
mysteries."
Wayne Booth adds:
"I had a syjet that when I first started using it, the eject mechanism
would lift the cartridge but it wouldn't eject. After I worked it a bit
(lifting and releasing and ran the drive a bit) it finally started
ejecting. I suspected that possibly the lubricant was a bit sticky (from
age or temperature or maybe the initial viscosity of the lubricant was too
high) and it was causing the sticking. As it was exercised a bit and
warmed up, then it started working and I haven't had a problem since."
James Smith puts his own experiences into the mix:
"I had always switched on the SyJet before inserting the cart. When I was
at PMP, my SyJet was passed from machine to machine without ejecting the
cart; the result was bad sectors and a lot of problems getting the cart to
reformat !"
Jerry Martin asks for info about fonts:
"Where can I find bitmap fonts which I could use with NVDI 5.03 as a system
font. I am using the supplied Monaco font, but are there any others
available/suitable?"
John Logan tells Jerry:
"This is digging deep into memory (mine, not the computer's) but I _guess_
that any GEM font will do. The PD libraries must be full of these. Failing
that FontKit will convert Signum fonts to GEM fonts.
Myself I never see any reason to change from the standard Atari font - it
is clear and readable and looks OK."
Joergen Bak adds:
"Any TTF or PS1 font will do. There are lots on the Internet.
Try a search for font."
In my experience, this isn't exactly true. Joergen should have said "Any
TTF or PS1 font THAT HAS ALL 256 CHARACTERS MAPPED will do."
Andy Blakely asks about control panels:
"Okay, I've heard people mention XCONTROL and ZCONTROL, among others.
So what's the difference between all of them? Are there different ones
for different systems?"
John Whalley tells Andy:
"The original Atari control panel was a simple accessory with just a few
settings. This is way too restrictive, so they introduced Xcontrol,
(eXtended/eXtendable control panel?). This uses modules (CPXs - Control
Panel eXtensions) and seems to work pretty well on most machines/OSes.
All the other options are "improvements" on Xcontrol, some of which
support extended CPXs ( ECPXs, which can have bigger windows etc). I'm
not sure which do and which don't, except that Zcontrol does support
them (they're rare, though).
Zcontrol is apparently not y2k compliant, so forget it.
COPS takes a slightly different approach and relies on a multitasking OS
for this (so forget vanilla TOS): you can use it like Xcontrol, or you
can set it up to run, make the settings and quit after startup. You can
also double-click a CPX directly from the desktop to run it if COPS is
installed. Some people have had trouble with some versions of it, but I
use 1.06 and it seems pretty stable to me. I suspect it's happier under
MagiC than under MiNT.
The only other one I know of is the second version of the Freedom
replacement file selector. I think this supports ECPXs too. This seemed
to have a whole lot of its own troubles as it allegedly uses some dubious
programming techniques to do its stuff and can render some systems
unstable.
There may be others, but these are all I know of.
Boils down to a choice between Xcontrol and COPS, the latter only being
an option if you have a multitasking OS.
Oops, apologies: it's not Zcontrol which has a y2k problem, but Neocontrol
(which I *presume* has something to do with Neodesk). Comes of relying on
my memory...
Other than the y2k problem (mentioned in a recent post here - it wouldn't
set a 00 date for someone, when Xcontrol would) I know nothing about
Neocontrol."
You know, one of the coolest things about the UseNet and the internet
in general is the fact that YOU can help other people with their
problems by simply relating your experiences. Take a look at this...
TJ Andrews, a new internet surfer, posts:
"Since Delphi decided to drop dialup access via SprintNet/Tymnet, I've been
forced to go to the Internet to stay online. Right now I'm trying to
master the use of Newsie 0.94. I've been using email for over a week, and
figured out getting and reading newsgroup articles earlier this week.
(Thanks, Joe M., for your vital assistance in setting up STinG!)
This message serves two purposes. First, it's a test to see if I have
Newsie's Offline posting procedure correct. Second, since it seemed such a
waste to simply send a useless test post, I thought I'd ask a question.
Once I have newsgroup posting (and follow-up) down, I'd like to work on ftp
setup. Could anybody give me some suggestions for some good ST ftp sites,
and please, if possible, tell me the information I need to set them up in
Newsie?
Any help I can get would be greatly appreciated."
Brian Van Tilborg tells TJ:
"Good, I hope you have figured out how to expand and contract the Newsgroup
threads with the + and - Key or you may not see this until you start
deleting your original post:-).
So welcome aboard.
To use NEWsie's FTP.
An Example
1) FTP pull down Menu
1a) "Select Server"
Should be a short list of servers that come with NEWsie.
Such as
ftp.primenet.com
Highlight this by clicking once.
2) "Edit Server" from pull down Menu.
Should see...
2a)Server:ftp.primenet.com
2b)Logon: anonymous
2c)Password: youremailadress@here.com
Now you are done. If you double click on the ftp site you want in the
Server Window with the list of ftp sites , you will be on your way.
3) "Add Server"
Same as above except you write in the NEW Server address you have found.
At http://www.umich.edu/~archive/atari
Hallvard Tangeraas has an article on using ftp. It is worth reading.
Should be in the networking/internet section.
I also recommend you go to
http://www.geocities.com/SiliconValley/Bay/8745
Here you can find a list of FTP sites and some good files to be downloaded
via ftp. If you type the URL in NEWsie, this site is NEWsie friendly.
If you go to the preference window and turn "Autobuffers" on, then you
should be able to double click on the above URL and go directly to the site
via NEWsie.
The little ftp site is either ftp.sn.no or ftp.sol.no I can't remember, but
one works with NEWsie and one doesn't and there are some must have
utilities that Halvards put there.
You should be able to doubleclick on the ftp site from the webpage in this
case and NEWsies FTP functions will take over.
That http site, is possible the best when just getting started on the net
and looking for Atari stuff. Well organised and Quick. I don't know how
current the links are anymore as I don't know how much effort is still
being put into maintaining the pages, but I was there last month and it
still looked like it was being maintained.
Here is a good ftp site to add to your list.
193.190.204.128 or you can type in
chapelie.rma.ac.be
if you prefer.
This is the Belgian Ftp site.
Unless otherwise stated most ftp sites operate with anonymous and
email address as password and logon. Again the ftp article covers this very
well.
The Umich http archives are huge.
If you need to see what is happening with ftp, I suggest you OPEN the LOG
window. Here you will see the activity of the FTP server and list of
commands and such and it will give you more information. This LOG file is
also written to disk. ONLY ONCE, and then it overwrites itself each time
you start NEWsie. So if you want to look at your LOG file after you have
exited NEWsie, don't restart NEWsie because that log file, the one written
to disk with your last session, will be overwritten with the next session.
I hope I haven't left anything out."
Well folks, that's it for this time around. Tune in again next week, same
time, same station, and be ready to listen to what they are saying when...
PEOPLE ARE TALKING
=~=~=~=
->In This Week's Gaming Section - Songbird Acquires Lynx Games!
""""""""""""""""""""""""""""" Pro Elite! Game Controller!
Nyko GamePad For NUON!
'Tee Off' For Dreamcast!
->From the Editor's Controller - Playin' it like it is!
""""""""""""""""""""""""""""
I have to tell you, I've been having a ball re-living my experiences with
Leisure Suit Larry! I've completed the first three games in the collection
so far. These were games I played over 10 years ago on my ST. They're just
as good now as they were then! I have now skipped a couple and I'm playing
the 7th game of the series. Wow, you wouldn't believe the advances to this
game. In earlier versions, you typed short phrases to have the main
character, Larry Laffer, do certain things. Any "interaction" between
characters were displayed as dialog 'balloons'. Not any more! The
characters talk, have conversations, and are more animated. No longer do
you make your character "walk" from one place together (although walking
isn't totally eliminated). Bring up a map, click on it, and Larry shows up
at that scene. The game plays faster this way! It's a blast. If you
enjoyed Leisure Suit Larry in the "old days", and now have a PC or newer
Mac, grab this collection of Leisure Suit Larry! And I haven't even tried
the Space Quest collection yet!!
Until next time...
=~=~=~=
->A-ONE's Game Console Industry News - The Latest Gaming News!
""""""""""""""""""""""""""""""""""
Hot Products Inc. Announces Pro Elite Controller
for NUON First Quarter 2000
Hot Products Inc.com Monday announced at last week's Consumer Electronics
Show, in Las Vegas, its plan to launch the Pro Elite, a retail edition NUON
enhanced game controller.
The new controller is officially licensed for NUON interactive consumer
products by VM Labs Inc., of Mountain View, Calif. HPI is one of only two
licensed suppliers, for this retail version NUON enhanced controller.
HPI has engineered the Pro Elite to compliment the design styling of
today's consumer electronics, including popular DVD player consoles. HPI is
targeting the Pro Elite to the consumer who is likely to purchase a NUON
enhanced DVD player as part of their total audio and visual entertainment
system.
The high profile design of the Pro Elite for NUON enhanced DVD players
appeals to the sophisticated and discriminating game player. It will be a
high quality offering, with an innovative ergonomic contour design,
suitable for both children and adults alike. The Pro Elite will support an
optional vibration mode and optional memory cards.
It will be digital and analog compatible, incorporate a generous 12-foot
cable, and will be compatible with all NUON enhanced products.
Hot Products Inc.com will exploit the extraordinary sales potential for the
NUON platform, and plans to launch other peripherals and accessories over
the next 12 to 24 months. NUON is an exciting new technology platform that
will continue to grow for years to come, as it replaces the traditional Set
Top box and VHS formats as the industry standard around the world.
Hot Products Inc.com plans to launch the Pro Elite for NUON enhanced DVD
players during the first quarter of 2000, to be sold worldwide with a MSRP
of under $30 U.S.
NUON has the speed and power to transform a DVD player into an interactive
fun-center that will entertain the whole family. NUON enhanced digital
video devices bring the television to life with interactivity in the form
of games, educational software, interactive movie content and more. Future
NUON enhanced features include Internet connectivity and web-enabled movie
experiences.
The NUON media processing technology replaces the MPEG decoder chip
currently found in digital video products. Analysts predict that digital
video will supersede the current analog method over the next few years, and
NUON is poised to become the new standard for interactive digital home
entertainment.
NYKO Introduces Gamepad for NUON-Enhanced DVD Players
NYKO Technologies Inc., a leading manufacturer of video game accessories,
debuted one of the industry's first video game controllers designed
specifically to enhance the interactive capabilities of NUON technology.
NYKO is among a select few companies that are approved by VM Labs Inc. to
supply licensed controllers and accessories for NUON. NUON technology is a
new multimedia engine that will be embedded into next-generation digital
video products such as DVD players and set-top boxes.
Named the NYKO DV Devil, this game controller includes upgraded components
that will enhance the interactivity of NUON-based home entertainment
products. The dedicated controller will allow consumers complete
flexibility with new interactive game titles that will be released for the
NUON format.
DV Devil's ergonomic styling provides a unique look that will set it apart
from traditional console and PC controllers.
NUON multimedia technology will allow users to enjoy high-performance video
games, educational and reference applications, in addition to the standard
movies and audio discs playable on current DVD systems. Samsung's DVD-N2000
DVD player, scheduled for spring shipment, will be among the first products
incorporating the new media processor.
NYKO anticipates strong market interest in the NUON-enhanced digital video
products as they roll out to market, according to vice president, sales and
marketing, Robert J. Rienick. DV Devil is just the first product by NYKO to
be adapted to NUON.
The accessory maker plans to add other products to its NUON line as the
platform gains market penetration, including memory cards, a light gun,
vibration pack, extension cables and other accessories.
``VM Labs continues to develop strategic relationships with top consumer
electronics companies, which bring value and creativity to the NUON
platform and benefit consumers," according to Donald A. Thomas Jr., VM
Labs director of peripheral licensing.
``The NKYO design team has been one of NUON's biggest supporters since its
inception, and we are pleased to confirm that they have been the first to
apply their experience in game technology to enhance NUON-based products.
We feel that NYKO's controllers and accessories will complement the
interactive experience of NUON-enhanced DVD movies and games."
``NYKO is entering the year 2000 after an exceptionally strong year," said
Robert J. Rienick, vice president, sales and marketing for the firm. ``Our
support of NUON-enhanced products continues our show of strength as we move
into new product categories, demonstrating our goal to grow as an
entertainment company, and showing our expansion plans for new platforms
such as DVD.
``We are very impressed with VM Labs' NUON multimedia technology and look
forward to developing products together."
Acclaim's Tee Off Scores A Hole-In-One As the
First Golf Title For The Sega Dreamcast
Addictive Gameplay Makes Tee Off
A Must-Have for Video Game Golfers
Acclaim Entertainment, Inc. Wednesday announced that Tee Off, the first
golf title for the next-generation Sega Dreamcast, has shipped to stores
nationwide.
``Tee Off brings addictive golf gameplay to the most advanced console
system to date," said Rick Mehler, marketing manager at Acclaim
Entertainment. ``With arcade-style action, stunning graphics, and precision
golfing, Tee Off is a must-have Sega Dreamcast title for golf fans."
Tee Off lets gamers play as one of 15 talented anime golfers on a quest to
become the number-one golfer. Each unique character has its own wide range
of skills and can control shots by adding topspin, backspin, hooks, and
slices. Gamers can choose from five different levels of play: beginner,
amateur, semi-pro, pro and senior. Golfers then hit the greens on five
challenging courses in Africa, America, Australia, Japan and Scotland. Tee
Off also features six game modes that will test even the best golfer's
skills: World Tour, Free-Round, Match Play, Stroke Play, Point Play and the
futuristic Gate Ball. Also included is a multiplayer mode up to four
players.
=~=~=~=
->A-ONE Gaming Online - Online Users Growl & Purr!
"""""""""""""""""""
Songbird Press Release
SONGBIRD ACQUIRES UNRELEASED LYNX PROPERTIES FROM BEYOND GAMES
January 10, 2000
For immediate release:
ROCHESTER, MN -- Continuing the trend of supporting orphaned Atari
platforms, Songbird Productions recently acquired full rights and source
code to three unreleased Lynx properties from former Lynx and Jaguar
developer Beyond Games. The three properties are: Cybervirus, Ultra
Vortex, and Mechtiles.
Cybervirus is an incredible first-person perspective, mission-based
action game based on the Lynx BattleWheels engine set in an apocalyptic
future where rogue computers and virus-infected robotic warriors
threaten the very survival of humanity. Ultra Vortex, the original Lynx
version of what became Ultra Vortek on the Atari Jaguar, is an awesome
two-player fighting game. Mechtiles is a multiplayer game of giant robot
combat, also based on the award-winning BattleWheels engine.
Carl Forhan, owner of Songbird Productions, said, "Beyond Games has been
enthusiastic about getting these properties transferred so that Songbird
may pick up where they left off. I'm excited to have the opportunity to
finish up these games and publish them for the benefit of Lynx fans
everywhere."
At press time, Songbird anticipated that Cybervirus would be the first
game completed and published later in 2000. The other games will be
evaluated for their relative completeness before being put on schedule.
All the acquired games are the sole property of Songbird Productions.
To keep up to date with the latest news at Songbird Productions, be sure
to visit the company web site at http://songbird.uni.cc, or send an
email to forhan@millcomm.com.
Copyright 2000 Songbird Productions. All rights reserved. This article
may be reprinted in its entirety.
=~=~=~=
A-ONE's Headline News
The Latest in Computer Technology News
Compiled by: Dana P. Jacobson
Microsoft's Gates Gives CEO Role to Ballmer
Microsoft Corp. said Thursday co-founder Bill Gates was giving up the chief
executive position at the software giant and named long-time No. 2 Steve
Ballmer to replace him in the job.
Gates, who has served as CEO since he co-founded the company 25 years ago,
will remain chairman and take on the role of chief ``software architect."
``I'm returning to what I love most -- focusing on technologies for the
future," Gates said at a news conference. "Steve's promotion will allow
me to dedicate myself full-time to my passion -- building great software
and strategizing on the future, and nurturing and collaborating with the
core team helping Steve run the company."
Ballmer, in one of his first declarations as chief executive, said it
would be ``reckless and irresponsible of anybody to try and break up this
company ... a disservice to consumers."
The news conference was called after a day of published reports and
intense rumors that the Justice Department and states would push for a
breakup of the world's leading software company.
Gates has led the Redmond, Wash.-based company through a turbulent recent
history, capped by Judge Penfield Jackson's ruling last November that
Microsoft used monopoly powers to harm consumers, competitors and other
companies.
Gates said he now would concentrate on issues of ``software architecture"
and his role as chairman overseeing the company's operations. He said he
remained committed to devoting his full time to the company.
Gates said concentrating on the chairman's job would ``allow me to spend
almost 100 percent of my time on these new software technologies."
Microsoft said the transition would take place surrounding the release of
its new Windows 2000 operating system -- the successor of the NT system,
aimed at office and professional users.
Ballmer said he planned to concentrate on meeting "heightened competition"
in the market that has emerged with the growth of non-PC computing and the
Internet.
Gates also said Ballmer would become a member of the Microsoft Corp. board
of directors, effective Jan. 27.
AOL, Time Warner Agree to Largest Merger Ever
Top Internet services provider America Online Inc. will buy Time Warner
Inc., the world's biggest media company, for $160 billion in stock, the
companies said on Monday, joining the power of new and traditional media
assets through the largest merger ever.
Shares of the two companies soared after news of a deal that will create
an all-media empire that reaches from magazines and movies into cyberspace,
and promises to remake the landscape of how people around the world
communicate and are entertained and informed.
Enthusiasm for the proposed merger swept up shares of major media and
technology companies in Europe and the United States, where it sparked a
broad-based rebound in the Nasdaq stock market, especially among Internet
and cable TV companies.
The deal marks the passing of the baton from old media to new, analysts
said. It sets the stage for the next evolution of the Internet as
distinctions between telecommunications, media and technology industries
blur into a single industry.
Jeff Kagan, an independent telecommunications analyst in Atlanta, said the
merger would speed the day when consumers may get telephone service,
entertainment, news and information from a single source -- via Time
Warner cable Internet networks.
``Everything is being rewritten from a sub-atomic level," he said.
While an AOL rival such as Microsoft Corp. or Yahoo Inc. might have the
financial flexibility and strategic interest in acquiring Time Warner,
there was no sign a bidder was preparing to emerge, takeover traders said.
Prior to the announcement, the biggest merger on record was MCI WorldCom
Inc.'s agreement to buy Sprint Corp. for $115 billion, although the current
$132 billion hostile bid by British-based cellular phone company Vodafone
for Germany's Mannesmann would rank higher.
America Online Chairman and Chief Executive Steve Case, 41, was named
chairman of the merged companies and Time Warner Chairman and Chief
Executive Gerald Levin, 60, will serve as chief executive, the companies
said in a statement.
``It gives me great pleasure to welcome the suits from Virginia here to
New York," Levin joked at a carefully staged news conference in which the
Manhattan media mogul appeared tieless in a rumpled tweed coat while AOL
executives suited up in pinstripes.
The combined company is to be known as AOL Time Warner and trade under the
ticker symbol ``AOL."
``This is the first time a major Internet company has merged with a major
media company and the possibilities are endless," Case said in a
conference call with analysts as he touted the advertising and electronic
commerce prospects of the deal.
The takeover will create a media conglomerate with unprecedented reach
across traditional and new media, allowing the delivery of programming
from Time Warner's stable of brands onto the Web and giving AOL access to
Time Warner's U.S. cable television network to offer high-speed Internet
access.
AOL Time Warner brings together Time Warner's Time, CNN, Warner Bros.,
People, HBO, Sports Illustrated, Cartoon Network, Warner Music Group,
Fortune, Entertainment Weekly and Looney Tunes with America Online's AOL,
CompuServe, Netscape, ICQ youth-oriented messaging network, Digital City,
and Moviefone.
Under a fixed exchange ratio, Time Warner shareholders will receive 1.5
shares of AOL Time Warner for each share of Time Warner stock they own
while AOL shareholders will receive one share of AOL Time Warner stock for
each share of AOL they own.
AOL shareholders will hold 55 percent of the merged company, while Time
Warner shareholders will hold 45 percent.
Terms of the deal took into account the fact that AOL's market
capitalization ahead of the announcement was twice the size of Time
Warner's. That was weighted against the reality that Time Warner's strong
cash flow is roughly four times larger than that of America Online.
``Time Warner provides AOL with an important missing link," Bear Stearns
analyst Scott Ehrens said in a research note. He argued that the
importance of the deal was how it provided AOL with access to Time
Warner's high-speed cable television network, which reaches 20 percent of
U.S. cable TV subscribers.
The stock had been hurt in recent months by concerns that AOL would be
shut out of the emerging market for high-speed Internet services.
The merger will be accounted for as a purchase transaction and is expected
to be add to America Online's cash earnings per share before the
amortization of goodwill.
Lehman accounting expert Robert Willens estimated the deal would generate
a staggering $158 billion in goodwill write-offs. Amortized over a 20-year
period, that would dilute earnings per share by $2 a year, wiping out AOL
Time Warner's expected profits for years to come, he said.
Securities analysts had forecast AOL would only generate 32 cents per
share during its fiscal year ending June 2000, according to First
Call/Thomson Financial, which tracks broker estimates. Separately, Time
Warner was expected to produce earnings per share of 61 cents during
calendar year 2000.
But Wall Street appeared to brush off that concern, focusing instead on
the deal's cash-generating power, the common barometer used to measure the
performance of debt-laden media companies.
UBS Warburg analyst Mike Wallace cautioned that AOL investors may have
second thoughts about the deal as they mull Time Warner's slower growth
rate -- an issue that cast a cloud over previous marriages between
traditional and new media.
The merger with America Online comes exactly 10 years to the day after
Time Inc. merged with Warner Brothers in deal that created the world's
largest media conglomerate.
The latest transaction, which is subject to certain closing conditions,
including regulatory approvals and approval by America Online and Time
Warner shareholders, is expected to close by the end of 2000.
The deal was only a few hours old when a phony press release began making
the rounds on the Internet that jokingly referred to the combined company
as eLeviathan.
Antitrust experts said America Online Inc.'s proposed purchase of Time
Warner appears likely to clear antitrust agencies, but consumer groups
said they opposed the merger because it would reduce AOL's political drive
to force open cable networks to alternative programming from other
networks.
Tom Pilla, a spokesman for AOL rival Microsoft, said the massive deal was
the latest demonstration of how vital the Internet economy remains: ``The
merger today is further evidence of just how competitive and dynamic this
industry truly is."
AOL Aims To Continue Open Access Fight
In the middle of the madness yesterday over America Online's merger with
media giant Time Warner, the Internet giant's chief legal counselor took
time out to make a call to Capitol Hill.
In a bold move for a company that had just agreed to purchase the nation's
largest cable company, AOL's George Vradenburg assured congressmen that the
company still supports legislation aimed at opening high-speed cable
networks for use by independent Internet service providers (ISPs).
It was a necessary call. With speculation rampant that AOL planned to pull
out of the expensive fight for open access, the firm needed to show it was
still willing to push for national legislation to ensure ISPs have a chance
to join the broadband revolution.
Cable operators like AT&T have spent billions of dollars to upgrade their
networks to support advanced services like high-speed Internet connections.
Companies like AOL, GTE and other telephone and Internet firms have fought
to gain access to these channels, fearing they would be left behind as more
consumers clamor for fast and inexpensive Net access.
For the most part, the company seems to have put its compatriots' fears
to rest.
"They told us that AOL is still committed to the OpenNet (Coalition),"
said Brianna Gowing, a spokeswoman for GTE, AOL's largest ally in the
cable access battle. "They are committed to open access in the new
company."
The OpenNet Coalition is a lobbying group made up of ISPs and telephone
companies that are pushing for equal access to high-speed cable networks
owned by cable giants like AT&T, Time Warner and others.
A number of questions still remain, including whether AOL will even be
able to follow through on its promises to open up its own new cable
network. Until those questions are answered, the megamerger has thrown
the hard-fought battle over cable networks into flux.
Along with GTE, MindSpring Enterprises and others, AOL has spent millions
of dollars fighting to open AT&T's high-speed cable lines for use by
outside ISPs. Currently, only affiliates of cable companies like
Excite@Home or Road Runner are allowed to offer Net service over
high-speed cable networks.
The war over open access has been waged in Congress, in the courts and at
the local government level. So far, ISPs have won only a handful of
battles at the local level, but have yet to win actual access to any
large cable network.
Nevertheless, AT&T has said it would open its own cable systems for use
by outside ISPs as soon as its exclusive contract with Excite@Home runs
out in 2002.
Details on how this transition will work are few, but open access
proponents still welcomed the news as a step in the right direction to
increase the spread of broadband Net access.
But following the merger announcement yesterday, many open access
opponents thought the protracted battle was essentially over.
"I think you will see AOL go away as an agitator in the regulatory arena
against us," Excite@Home chief executive George Bell said in the
aftermath of the merger.
Excite@Home, the cable Net affiliate of AT&T, Cox and Comcast, has borne
the brunt of the open access battle. Investors have shied away from the
company's stock during some of the more contentious open access debates,
and regulatory battles have slowed the deployment of its high-speed
services.
That optimism may be misplaced, however--at least in part.
Conflicting views have emerged from the new AOL Time Warner camp. At a
press conference yesterday, Time Warner CEO Gerald Levin said the
partners would try to end attempts to bring government power to bear on
cable companies.
"Essentially, we're going to take the open access issue out of Washington
and out of City Hall, and put it into the marketplace and into the
commercial arrangements that should occur to provide the kind of access
for
multiple ISPs," Levin said during a press conference.
But AOL has since amplified that statement, saying that it will only
retreat from the regulatory battle if all other cable companies join to
open networks for use by other ISPs. Otherwise, it will continue with its
push for national legislation, and perhaps--but not certainly--for local
regulations.
"AOL is committed to staying on as a member of the OpenNet Coalition,"
said Rich Bond, one of the directors of the Washington-based lobbying
group that has led the ISPs' charge on Capitol Hill. "They know full well
what our mission is, which includes a local, state and federal approach.
They had a chance to say they were uncomfortable with that, and they did
not."
Part of the ambiguity may lie in America Online's difficulty in
delivering on promises to open up Time Warner's networks immediately to
other ISPs.
Time Warner's high-speed cable Net service is provided by Road Runner, a
semi-independent company in which the media giant owns just a 36 percent
stake. MediaOne--which is now merging with AT&T--owns another 35 percent,
with the remainder controlled by Microsoft, Compaq Computer and
Advance/Newhouse.
To open its high-speed networks to ISPs, AOL Time Warner would need a
coalition of support from all its partners. None of the companies so far
have voiced an opinion in favor of open access, however.
Nevertheless, the company has significant bargaining power. AT&T badly
wants to provide local phone service through Time Warner's cable lines.
The new AOL Time Warner could use that leverage to make a deal with Ma
Bell, analysts say.
"The AT&T-Time Warner agreement has not been resolved," noted Michael
Harris, an analyst with cable research firm Kinetic Strategies. "I expect
the new AOL Time Warner would push AT&T for carriage of AOL-branded
broadband services as a condition."
The other Road Runner partners are largely concerned with boosting use of
broadband Internet service, and may well approve open access as a result,
analysts added.
GTE said it will continue with its own antitrust battle against AT&T,
lobbying at the national and local level. The OpenNet Coalition as a
whole is still behind the battle, representatives say.
But until AOL turns yesterday's talk into tangible action, its partners
and opponents will still be left with an uncertain view of their
broadband future.
"At this point we're still waiting to see what happens," GTE's Gowing
said. "There's still a lot of things we don't know."
Will Merger Shut Lid On Open Access?
As media stocks soared and the folks at the newly minted AOL Time Warner
Inc. toasted their futures, some feared Monday's behemoth merger could
have dire consequences for extending cheap, high-speed Internet access to
consumers.
The reason: The deal may have co-opted one of the biggest supporters in
the fight to force cable operators to open up their systems to other
Internet providers -- just as telecommunications companies have been
forced to open up their lines to other competitive long-distance carriers.
So who is the ally that may be turning coat? It's American Online Inc.
itself.
"We think it sucks," said James Love, director of Ralph Nader's Consumer
Project on Technology. "AOL has been a big hammer for open access, and
this deal means they'll likely abandon that."
The fight for open access primarily has targeted AT&T Corp., which has
become the leading provider of high-speed cable modems by aggressively
buying up cable-TV networks, most notably the giant TeleCommunications Inc.
The company has come under fire for its reluctance to open up its lines to
competing Internet service providers.
Now, through its purchase of Time Warner, AOL will own its own cable
systems, and some fear the fight for open access will no longer serve the
company's interests.
On Tuesday, however, AOL and Time Warner vowed to open what would be their
vast cable system to online rivals.
In so doing, they moved to take a debate over access to high-speed Internet
pipelines out of regulators' hands and into the marketplace. Details were
not offered.
Jeff Chester, executive director of the consumer advocacy group Center for
Media Education, said his biggest concern is that AOL has backed out of the
public policy debate, preferring to tackle the issue through private
negotiations.
Calling AOL Chairman Steve Case the "Benedict Arnold of the digital age,"
Chester said AOL had to buy its way into cable access. Companies that don't
have that kind of money can't do that, he said.
"Everyone who wants to compete on the Internet -- unless they're a close
personal friend of Steve Case or (Time Warner CEO) Gerald M. Levin -- should
be worried," Chester said.
Mark Lemley, a professor at the University of California at Berkeley's
Boalt School of Law, thinks federal regulators should approve mergers such
as the one between Time Warner and AOL only if the companies agree to
adhere to the open-access standards.
Lemley, along with Harvard Professor Lawrence Lessig, has asked the Federal
Communications Commission to add an "open access" requirement to its
approval of AT&T's acquisition of MediaOne Group.
"It will be interesting to see whether AOL changes its position on open
cable access," said Lemley. "I hope they don't do that, but it's possible."
AOL already has come under fire for its hypocrisy in the instant messaging
wars. While the company was urging government agencies to adopt open-access
laws, it was busy blocking competing technologies by Microsoft Corp. and
others from taking advantage of its IM network.
AOL did not immediately return calls seeking comment.
Smaller ISPs and the trade groups representing them were more optimistic
about the merger than some consumer advocates. Doug Hanson, CEO of
Denver-based ISP Rocky Mountain Internet, said the move would boost
open-access efforts.
"AOL now has to open up Time Warner's cable system to all of us other ISPs,
or they're going to be looked upon as hypocrites," he said.
Hanson thinks the merger will make the FCC more likely to jump into the
debate to ensure open lines because until now federal regulators looked at
the issue as a fight between AT&T and AOL. Now the fight is between cable
operators including AOL on one side and smaller ISPs on the other.
"Without regulation, smaller ISPs cannot very well defend themselves
against the giants," Hanson said.
Cliff Staten, executive director of the Open Access Alliance of the Bay
Area, agreed. "I think it's good news for open access," he said.
So did Gary Schultz, president of the Multimedia Research Group in
Sunnyvale, Calif. Schultz thinks that combining Time Warner's approximately
20 million cable television subscribers with AOL's 20 million members could
double the number of consumers using broadband access by 2004.
Dave McClure, executive director of the U.S. Internet Industry Association,
said it's too soon to gauge the merger's effects on the industry, and that
AOL has no choice but to continue the open-access fight.
"It's very clear that were AOL to suddenly reverse its decision, it would
lose credibility in Washington," he said. "Until you see evidence of that,
I'd have a tendency to cut them a little slack."
At least one major player in the open-access debate remained on the fence.
OpenNet -- an open-access lobbying group backed by AOL's Case, MCI WorldCom
and MindSpring -- called a press conference Monday, only to announce it
hadn't finalized its statement and wouldn't take any questions.
An hour later, the group issued a terse release saying, "We will seek
negotiations with both AOL-Time Warner and AT&T, as well as the rest of
the cable industry, to define how and when open access will be implemented,
and we will continue to urge the federal government to make open access the
rule for the entire cable industry."
The group called AOL "a leading advocate for open access," and said the
company would continue to be a member of the organization.
AOL Offers Internet-TV Service
America Online Inc. is offering a service that lets people use the Internet
on their television sets, challenging Microsoft Corp.'s Web TV and other
rivals seeking to build interactive TV businesses.
The new service, called AOLTV, would be transmitted through cable set-top
boxes made by Philips Electronics and Hughes Electronics Corp.'s DirectTV
satellite television.
AOL did not provide specifics on when the service would be available or
how much it would cost monthly, nor did it give pricing for the
equipment.
AOLTV would allow users to exchange and view e-mail and instant messages,
and browse the Internet. The company said Friday it would tell more about
the service, including television programming, at a later date.
The Dulles, Va.-based company has been moving aggressively to bolster its
``AOL Anywhere" strategy to extend its reach beyond the personal
computer. In December, it bought MapQuest, a leader provider of maps on
the Internet that helps users look up directions and can be used with
hand-held computers. The company also has developed software to adapt its
interactive calender and other features such as e-mailing to portable
devices.
Analysts say AOL has two goals with its AOL Anywhere program - to be
among the first to take advantage of consumers' desire to be connected on
the go and to encourage subscribers to stay online longer, which could
allow the service provider to boost rates it charges companies for ads.
AOL, fearing it could be denied access to parts of the high-speed
Internet market, is currently lobbying regulators to force AT&T and other
cable providers to sell it access to cable data networks at wholesale
prices. Microsoft last year took a $5 billion stake in AT&T Corp. to ensure
it has a place in high-speed cable access.
Amiga's New Savior: Bill McEwen
East of Seattle, at the foot of the Cascade Mountains, the Amiga computer
system with half a million loyal followers has found its latest would-be
savior.
"This is about unification and creating something that developers can
build upon," said Bill McEwen, the 37-year-old president and CEO of the
newly formed Amiga Inc., from his home set amongst 200-foot-tall trees of
Maple Valley, Wash.
On Saturday at the Consumer Electronics Show, McEwen will make his first
announcement regarding the group's plans for the Amiga with a major
partner.
Last week, McEwen and his Amino Development Corp. paid an undisclosed
amount to Gateway Inc. for the Amiga trademark, technology and a license to
the Amiga patents. While the amount of $5 million has been bandied about in
press reports, the horse-riding Amiga chief said that figure misses the
mark.
McEwen and his 16-employee startup plan to continue to develop and support
the latest version of the Amiga OS. Currently, he estimates that the
platform still has anywhere from 350,000 to 500,000 devoted users -- most
of whom are in Europe, with Germany being the crown jewel.
He has received thousands of e-mails from developers and users offering
free code and technical assistance, he said.
While McEwen's group has a broad strategy for the system, he stressed that
users shouldn't expect a roadmap for the Amiga operating system anytime
soon.
"We want to parcel out our information a bit at a time. At this point, we
want to avoid creating too-high expectations," he said.
He bought an Amiga in 1998, and hasn't gone back to other computers since.
"My first response was the Amiga was dead," he said. "I was shocked to
learn there were hundreds and hundreds of thousands of users out there."
In the future, McEwen plans to morph the Amiga operating system into what
he believes it does best: Remove the technological confusion from a device
aimed at enhancing creativity.
That's something that Windows and even the Mac have done a poor job at, he
argued. "The difference between our visions: We truly want to enable and
empower the home and home business," said McEwen. "My vision is a scalable
OS in the home."
McEwen also realizes the Amiga has to carve out a niche for itself
quickly. Most computers are powered by Windows, the Mac OS and Linux.
Meanwhile, start-ups such as Be Inc. are targeting the emerging market for
so-called information appliances.
"We have no time at all to do this," he said. "That's what originally
prompted me to buy Amiga -- Gateway was just taking too long."
Eschewing Silicon Valley, the company may move from Maple Valley to nearby
Issaquah.
But for Amiga users, any home would be welcome.
No e-taxes, Says CES Panel
Keep your mitts off the Net. That was the resounding message a Internet
policy panel had for Congress at the Consumer Electronics Show Friday.
"There should be no taxes on e-commerce at all," said Virginia Gov. James
Gilmore, one of the government and industry officials sitting in on the
panel. Gilmore is chair of the 19-member Advisory Commission on Electronic
Commerce, which is trying to hash out a plan to fairly deal with taxing
Web transactions.
Instead of taxing e-commerce, Gilmore suggested abolishing the 3 percent
telecom tax and holding back 1 percent of that tax to give to states as an
incentive to help them get wired. In addition, Gilmore said the digital
divide should be bridged with money that's currently earmarked for
welfare.
Local governments and many other governors have expressed concerns that
the no-taxes plan will hurt services like fire departments and libraries
as more commerce takes place online -- and therefore doesn't contribute to
local coffers.
Gilmore said he doesn't buy complaints from traditional, real-world
retailers that e-commerce is ruining their business. For example, he
pointed out that parking spaces were hard to find at the mall during the
holiday shopping season -- an indication that people aren't abandoning
physical stores. "Business is good and yet e-commerce is growing," Gilmore
said.
The advisory commission meets again in March.
PSINet Inc. CEO Bill Schrader, who spoke after Gilmore, applauded the
governor's plan, saying the potential of Internet taxes is his company's
"single, biggest worry."
Rep. Tom Bliley, R-Va., chair of the House Commerce Committee, also
pointed to strong real-world sales as evidence that no new Internet taxes
are needed, though he acknowledged it could be a problem in the future.
In addition, Bliley criticized Clinton's plan to come down on
e-pharmacies. Some online drug sellers have come under fire for selling
people products such as Viagra even though they don't have prescriptions.
Bliley said existing laws prohibit such sales, and the United States
doesn't need extra federal regulation.
Microsoft, Caldera Settle Anti-Trust Suit
Software giant Microsoft Corp. said on Monday it settled an antitrust suit
brought against it by Caldera Inc., ending a three-year legal battle.
Although the terms of the settlement were confidential, Redmond,
Wash.-based Microsoft said it would take a one-time charge against earnings
of 3 cents a share in its quarter ending March 31.
Caldera, based in Salt Lake City, Utah, filed the suit in July 1996 seeking
more than $1 billion in damages.
The small software company charged Microsoft illegally tried to maintain
its monopoly in operating systems, the basic software needed to run
personal computers.
``We are pleased to put this issue behind us," Tom Burt, an Microsoft's
general counsel for litigation, said in a statement.
``Rather than litigating, we prefer to focus on building great software
for our customers in this dynamic and competitive industry," Burt said.
The case had been scheduled to go to trial on Jan. 17 after a federal
judge denied in November an effort by Microsoft to narrow Caldera's
complaint.
Caldera said it was pleased with the result and would push the Linux
operating system, an emerging rival to Microsoft's Windows platform.
Microsoft Loses Appeal on Temporary Workers
The U.S. Supreme Court on Monday rejected Microsoft Corp.'s appeal of a
ruling that thousands of temporary and contract workers were eligible to
buy discounted stock in the software giant.
The justices let stand a U.S. appeals court ruling that greatly expanded
the number of past and present workers who can participate in a
class-action lawsuit against Microsoft over its lucrative employee stock
purchase plan.
Microsoft asked the Supreme Court to review the ruling that could cost the
company millions of dollars, but the high court turned down the request
without any comment or dissent.
The lawsuit's eventual outcome could have widespread implications for many
other companies that use temporary workers or independent contractors, an
increasingly common business practice, especially in the technology
industry.
``Microsoft has abused its immense power to cheat a large faction of its
own workers out of the most basic benefits," said Elizabeth Spokoiny, one
of the original plaintiffs.
``It will be a great relief to finally end this case and be able to say
American high-tech workers will not tolerate exploitation," she said.
Stephen Strong, a Seattle attorney for the plaintiffs, said in a statement
that he hoped Microsoft ``will now make an active effort to correct its
personnel practices and bring this case to an end after so many years."
Microsoft spokesman Dan Leach expressed disappointment over the high
court's decision not to review the case.
``We obviously are looking forward to putting this case behind us," he
said. ``The decision really will have no impact from a practical
standpoint because we continue to work with lawyers for the plaintiffs and
the court to keep things moving forward."
A federal district judge initially limited the class to just a few hundred
workers employed at Microsoft from 1987 to 1990.
But the appeals court ruled the class should cover any temporary or
contract worker who worked 20 hours per week or more for at least five
months in any year since the end of 1986 -- a class that could total well
over 10,000 workers.
The appeals court required Microsoft to prove which workers should not be
included in the class as part of the hearings before a federal district
court judge in Seattle to determine damages.
Microsoft in its appeal urged the Supreme Court to restore "order to the
law of employee benefits." It said numerous lawsuits have been filed in
the last year on behalf of temporary agency employees or independent
contractors claiming benefits from the company where they performed their
services.
It said the appeals court decision ``undermined the ability of district
courts to manage class actions effectively" and contravened the grant of
discretion under a federal rule to district courts to manage class-action
lawsuits.
The class-action suit, filed in 1992, claimed that Microsoft treated
temporary and contract workers as permanent employees except for
compensation.
The lawsuit sought millions of dollars in gains from the employee stock
purchase plans, which offer workers the opportunity to buy Microsoft stock
at a 15 percent discount. The plans were not extended to temporary and
contract workers.
The Supreme Court in 1998 rejected an earlier Microsoft appeal in the
case.
U.S., States Favor Microsoft Breakup
The U.S. government favors breaking up Microsoft Corp. to settle the firm's
landmark antitrust case, people familiar with mediation talks taking place
in Chicago said on Wednesday.
The sources said that details of the remedy remain unclear, but it had
emerged that the Justice Department and the 19 states involved in the
case favor breaking up the company.
The mediation talks began late last year under the supervision of Judge
Richard Posner, chief of the United States Court of Appeals for the
Seventh Circuit, who is acting in a private capacity.
U.S. District Court Judge Thomas Penfield Jackson -- who is trying the
case in Washington -- asked Posner to step in to mediate in the case
after earlier attempts failed. The settlement talks began after Jackson
found in early November, 1999, that Microsoft used monopoly power to harm
consumers, competitors and other companies.
USA Today reported earlier on Wednesday that the government favored a
breakup of the company, giving specifics of the way the company would be
restructured.
A Justice Department spokeswoman said the USA Today report was inaccurate,
without elaborating. ``The story is inaccurate in several important
respects," the spokeswoman said. ``It does not accurately represent our
views."
Others familiar with the case said USA Today was correct in saying the
government favored breaking up the company but incorrect in the way it
characterized how the government wants the company to be restructured.
Another Justice Department official said: ``The Justice Department will
not discuss any aspect of the mediation process."
A spokesman for Iowa Attorney General Tom Miller, who is leading the
state's efforts in the case, said: ``We have not commented at all in this
period where the judge has ordered mediation. We are not commenting."
At a meeting in Jackson's chambers in Washington before the settlement
talks began, Judge Jackson expressed concern about news reports that the
states and the Justice Department were unable to agree.
People familiar with the talks in Chicago said there did not appear to be
significant disagreement now between the states and the Justice
Department in the negotiations.
A spokesman for Microsoft declined to comment on the mediation process.
``We're not going to speculate on what the government may or may not be
thinking," said Microsoft spokesman Mark Murray. "We think it's
completely inappropriate and counterproductive for anyone to be
discussing the confidential mediation process."
Murray said: ``Without commenting on mediation, we think any talk of
breaking up Microsoft is completely unwarranted. There's nothing in this
case that would support such a step."
At this point in the case, the two sides are arguing over whether Judge
Jackson's findings of fact show that Microsoft broke the nation's
antitrust laws.
The government has already submitted a brief arguing that the findings
prove Microsoft did break the law. Microsoft replies on Jan. 18, with
further filings by the two sides on Jan. 25 and Feb. 1.
Jackson will hear oral arguments on Feb. 22. If he does find Microsoft
broke the law, then he will likely hold yet another phase of the trial to
determine remedies.
Windows 2000 Virus Detected
Windows 2000 won't come out for another month, but anti-virus software
makers say they've found the first virus that targets Microsoft's
forthcoming business operating system.
The virus, known as the Win2000.Install or W2K.Installer virus, inflicts
no damage, but can potentially point out conceptual vulnerabilities for
future virus authors, said researchers at anti-virus software makers
Symantec and F-Secure. So far, Win2000.Install has not been released in
the "wild," or infected users at large.
The virus and at least two variants, found
several days ago, only affect
Windows 2000 because the virus writers specifically earmarked it for the
new operating system, said Vincent Weafer, director of Symantec's
Antivirus Research Center.
"It doesn't do any particular damage. The virus writers just want to show
it can be done, so other people can come and use those concepts in the
future and do something bad," Weafer said. "It's new and attractive for a
virus writer to write the first Windows 2000 virus. This is the first wave
(of Windows 2000 viruses) and we're going to see more."
A Microsoft spokeswoman called the virus a "publicity stunt" by the virus
writers to get attention. "In the world we live in, not everyone is good
and nice and we should be happy that this is nothing. It's not a threat,"
she said.
The virus affects Windows program files and spreads when a computer user
exchanges an infected program file to another computer, Weafer said.
Windows 2000 is Microsoft's update to the Windows NT 4.0 operating system
and is targeted for use by corporations, not consumers. Though the company
won't officially release the operating system until Feb. 17, early
versions of Windows 2000 have been available to beta testers and members
of the company's preview program.
The virus latches itself onto a Windows file and replicates itself, but it
won't make the file size grow bigger, Weafer said. The virus causes no
inherent damage, but can cause the Windows file to crash the program it's
running on if the virus doesn't latch itself to the file correctly.
The virus also manages to hide from new security features Microsoft has
built into Windows 2000, he said, adding that the virus worked on some
beta versions of Windows 2000 and not others.
Symantec is updating its anti-virus software later this week to recognize
and eliminate the virus, Weafer said. "Honestly, this is not a concern.
It's not in the wild, so it's not like you'll get this in the next few
weeks," he added.
Windows 2000 is the largest development project in Microsoft's history and
has been delayed for more than three years. Microsoft is touting Windows
2000 as the first Windows operating system that is secure, reliable and
manageable enough to run heavily trafficked Web sites.
=~=~=~=
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