Gates rallies Microsoft shareholders

Bill Gates spoke to Microsoft shareholders last night, turning on the US Department of Justice (DoJ) and its handling of the anti-trust case.

Microsoft's annual shareholder summits are usually an occasion for promoting future products. But Gates asked the 2,000-strong audience not to judge the company on the DoJ's witnesses, but to wait to hear the other side.

"As our witnesses come forward, you will see that the facts simply don't support the government's claims," he said. "Now they're bringing up various competitors to make allegations against us, which are simply wrong."

The DoJ has brought most of Microsoft's rivals into the courtroom as witnesses for the prosecution. America Online, Apple and Netscape all gave testimonies, as did Microsoft's hardware partners.

Gates devoted the second half of his speech to the principle of innovation, which will be Microsoft's main line of defence in court. "Products last forever, so unless you're radically improving your products, you get no revenue from the customers. And that guarantees that it's impossible to have any monopoly or lack of competition, because all our customers buy is our new innovation."

Shareholders appear to have welcomed Gates' comments. Stock remains steady at around $110 per share - just $10 short of this year's peak.