From: becap@cs.mcgill.ca ()
Subject: MS Wins Apple suit!!!
Originator: becap@binkley.cs.mcgill.ca
Organization: SOCS, McGill University, Montreal, Canada
Date: Wed, 15 Apr 1992 22:48:24 GMT

  Computers:  MICROSOFT and Hewlett Win Ruling Over Apple ----
  By  Stephen  Kreider Yoder Staff Reporter of The Wall Street
  Journal
  
  SAN  FRANCISCO -- A federal judge handed MICROSOFT Corp. and
  HEWLETT-PACKARD  Co.  a  major victory, throwing out most of
  APPLE  COMPUTER Inc.'s arguments in its copyright suit aimed
  at  protecting  the  "look and feel" of its popular computer
  display graphics.
  
  The  surprise  ruling  all  but  dashes  Apple's  chances of
  getting  a  judgment  against MICROSOFT and H-P, which Apple
  sued  in  1988, arguing that MICROSOFT's Windows program and
  H-P's  NewWave  program illegally infringe on copyrights for
  the   visual  images  that  helped  make  Apple's  Macintosh
  computer popular.
  
  The  judge,  Vaughn  Walker,  granted  virtually  all of the
  requests  by  MICROSOFT  and  H-P  that  he  dismiss Apple's
  arguments  that  it  had  copyright protection for Macintosh
  characteristics,  such  as  movable  symbols or "icons," and
  overlapping  windows.  Judge Walker ruled that MICROSOFT had
  the  rights,  under  a  1985  license with Apple, to all the
  technologies in MICROSOFT's first version of Windows, and to
  enhancements  in  MICROSOFT's  second  version.  Likewise he
  agreed  to  throw  out  most  of  the  claims  by  Apple, of
  Cupertino,  Calif.,  that  H-P,  of  Palo  Alto, Calif., was
  infringing on the Macintosh's characteristics.
  
  Judge  Walker's  decision  is  a  dramatic  turn  in  a case
  considered  to  be  the  most  important piece of litigation
  potentially   affecting   the   desktop  computer  industry.
  Previously, analysts said Apple might use a victory to wring
  huge  damages from MICROSOFT, the leading PC software maker,
  block   sales  of  Windows,  a  runaway  bestseller  in  the
  industry,  or  obtain  rich  royalties  from  Windows sales.
  Windows  is  obtaining  dominance  in  the personal computer
  business  at  the  expense  of Apple's Macintosh.  Apple had
  sought up to $5.5 billion in damages in the case.
  
  The  ruling  "lifts  the majority of the legal risk from the
  stock,"  said  analyst  David  Readerman  of Shearson Lehman
  Brothers  Inc.   The  Apple  suit was a "nagging issue" that
  created a cloud of doubt over MICROSOFT, he said.
  
  Richard Sherlund, an analyst with Goldman, Sachs & Co., said
  the  decision  was  "unexpected and absolutely stunning" and
  will   probably   help  push  up  MICROSOFT's  stock  today.
  MICROSOFT is based in Redmond, Wash.
  
  The  judge,  who  hadn't been expected to make a significant
  ruling  yesterday, left open several questions for a hearing
  scheduled for next month.  He didn't rule on whether aspects
  of  a  newer  Windows  version  3.0,  such as how it handles
  images  of  typed  letters, or "fonts," infringes on certain
  Apple  rights.  And he left a question open for H-P: Whether
  the  company  has the right to use the on-screen symbol of a
  trash  can, which the Macintosh uses for a variety of tasks,
  including  clearing a file from the screen.  Most important,
  he  left  for  May the question of whether H-P and MICROSOFT
  programs  are substantially similar as a whole to Apple's in
  a way that infringes on Apple's copyrights.
  
  But  analysts  said H-P and MICROSOFT could easily alter the
  remaining  characteristics.   And,  having ruled out most of
  the  specific  characteristics  as  not  protectable,  Judge
  Walker  didn't  leave  much hope for Apple to argue that the
  programs  as  a  whole  infringe.  "There is no way that any
  finder   of   fact   is   going  to  conclude  that  there's
  infringement  in  this  case  based on that trash can," said
  Jonathan  Marshall,  who  argued  H-P's  case and declared a
  "victory" for H-P.
  
  David McDonald, attorney for MICROSOFT, said the ruling does
  away with the most important matters concerning the software
  company,  especially  movable icons and overlapping windows.
  "If it isn't a complete victory, it was more than 95% of the
  way," he said.
  
  Jack Brown, an attorney for Apple, would say only that "this
  case  has  a  long way to go and we fully expect to have our
  position  sustained."  Apple's suit has been closely watched
  because  it tests an argument of whether Apple can copyright
  the  "look  and feel" of its software, elements of which are
  widely  emulated  in the PC industry.  Apple argued that its
  Macintosh  screen  was  a  unique  expression of an idea and
  therefore could be copyrighted.
  
  H-P  and  MICROSOFT  have argued that individual elements of
  the  Macintosh's screen lacked originality or were pioneered
  by  such companies as Xerox Corp. and INTERNATIONAL BUSINESS
  MACHINES  Corp.   The  whole idea behind all three programs,
  that  computer screens are simpler if tasks are presented as
  familiar  desktop  objects,  is  an  analogy  that  can't be
  copyrighted, argued Mr.  McDonald, MICROSOFT's attorney.
  
  Judge   Walker's  ruling  also  addresses  another  pressing
  question  in  the  software  industry:  What legal yardstick
  determines  whether  "look  and  feel"  are  infringed upon?
  Judge   Walker   appeared   to   answer   than  question  by
  consistently    demanding   that   Apple,   to   demonstrate
  infringement,  show  that  H-P  and  MICROSOFT  had violated
  specific  chararacteristics  of  Apple's  Macintosh to which
  Apple owned the clear rights.
  
  At  yesterday's hearing, Judge Walker chided Apple attorneys
  for  repeatedly  failing  to  come  up  with  such evidence,
  despite  prodding,  that  individual  parts of its software,
  rather than the whole, were protectable under copyright law.
  
  WSJviaNewsEDGE  :PAGE:  B1  :TICKER: AAPL HWP MSFT :SUBJECT:
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