The agreement is subject to Alvarado's approval. The case, which covers more than 50 million product licenses, was set to go to trial before California Superior Court Judge Paul Alvarado on Feb. 'We believe that this agreement makes a significant step forward to resolve our antitrust legal issues,' Microsoft General Counsel Brad Smith said. In a conference call late Friday, Microsoft said it would disclose the settlement's expected financial impact in an earnings telephone call on Jan. 'This settlement represents a refund of nearly 30 percent of all money that California businesses and consumers paid for Microsoft products over a seven-year period,' Grossman said. Microsoft dominates the desktop marketplace, and a federal judge ruled in November 1999 that the company violated U.S. The lawsuit, filed in February 1999, claimed that Microsoft violated California antitrust laws by overcharging by as much as $40 for every copy of Windows 95 and 98. Grossman said a firm with 400 desktop computers might expect vouchers totaling $25,000. Even the smallest business, with 10 or 20 computers, will have a substantial claim.'

'Businesses are likely to have thousands, if not hundreds of thousands, of dollars in claims.

'Eighty percent of the (Windows) licenses were licensed to businesses in California,' said Richard Grossman, a partner at San Francisco law firm Townsend and Townsend, which brought the suit. The payout depends on how many customers make claims. If all vouchers are claimed, Microsoft pays the maximum. The vouchers can be used to buy most hardware or software products from any manufacturer.Īlthough the maximum value of the settlement is $1.1 billion, Microsoft could end up paying as little as $367 million in cash to California public schools. The settlement, which arose from claims that Microsoft unlawfully wielded its Windows monopoly to overcharge consumers for the operating system, allows individuals and businesses in California who bought Microsoft products during a five-year period to apply for vouchers with values of $5 to $29. Update Microsoft said late Friday that it has settled a California class-action lawsuit for up to $1.1 billion, a move that would end the largest suit of the kind against the giant software company.

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