Gates hints at out-of-court settlement

Microsoft chairman, Bill Gates, has admitted he wants to resolve the anti-trust case as soon as possible - even if that means settling out of court.

In an interview with Time Magazine, Gates said he is willing to compromise - providing this does not affect Microsoft's right to add features to the Windows operating system.

However, Clive Longbottom, analyst at Strategy Partners, claimed Microsoft has left it too late to settle without losing Wall Street's support.

"This could be a little embarrassing for him. Settling 18 months ago would have been a good idea, to admit to being wrong and back down. He should have dismantled Microsoft into holding companies which would have been seen as a strength. Wall Street has let him off, so far, as they expect Gates to continue to fight back.

"But now Gates realises that the Department of Justice (DoJ) means business and he has to rely on the good will of Wall Street to keep going," Longbottom added.

Throughout the Time Magazine interview, Gates remained adamant his company acted legally and claimed the law will uphold his belief. However, he admitted it will "not be easy" to appeal Judge Jackson's Findings of Fact (see 'Microsoft hit by "monopoly" ruling' http://www.silicon.com/a33856 'Industry figures support damning Microsoft anti-trust statement' http://www.silicon.com/a33873 and 'Microsoft could be forced to unbundle Explorer' http://www.silicon.com/a33897 ).

When asked whether Microsoft would offer Windows source code to users for free, Gates stopped short of actually saying no, but hinted that it is extremely unlikely. "The only thing we know for sure that would be bad for consumers, is anything that made it so that when people buy Windows they don't know what is in it," he said.

On the day the article appeared, Gates was in Las Vegas delivering his keynote speech to Comdex delegates. There, he unveiled an MSN-based handheld, called Web Companion, which is designed to act as a PDA with wireless access to the Internet.