PR Campaigning Over Windows 98 Suit Heats Up

(May 6, 1998)  Microsoft hosted a rally in New York City on Tuesday as part of its public campaign to dissuade the Department of Justice and several state Attorneys General from filing suits to enjoin the release of Windows 98.  Meanwhile, Microsoft's opponents continue to wage their own publicity campaign.  The new software is scheduled for release on June 25.

Bill Gates, Microsoft Chief Operating Officer Bob Herbold, and about fifty computer industry leaders participated at the rally at the Equitable Building in NYC.   Representatives of Compaq, Visio, Dell, 3Com, Kodak, and Micron representatives were among Microsoft's supporters.

"In America, innovation is progress and progress means economic growth for the PC industry, for consumers and for the nation," Gates said. "Windows 98 is important not only to Microsoft, but to the PC industry as a whole. PC manufacturers, hardware vendors, software developers, resellers and retailers are incredibly excited about the market opportunities driven by Windows 98 innovation and how this new product will benefit millions of consumers."

Halpin, President and CEO of CompUSA, said that "CompUSA is planning for the launch of Windows 98 to be a catalyst for sales and to generate major excitement throughout the category."   He continued that "CompUSA has already made significant investments in upfront marketing and advertising that cannot be recouped if Windows 98 is delayed or halted. In the end, we believe the customer will suffer."

Microsoft received more support from former Apple chief executive John Sculley.  "What the government is trying to do is completely unjustified," Sculley told the Seattle Post-Intelligence.   "There is not a tougher competitor" than Microsoft, he said.   But, "just because Microsoft is brilliant in one part of the market doesn't mean they'll be able to dominate in another part," he said.

Meanwhile, Judge Robert Bork wrote an opinion piece for Monday's New York Times arguing that Microsoft has violated the Sherman Antitrust Act.  Bork is being paid by Netscape to lobby the DOJ to bring an antitrust action against Microsoft.  Also, former FTC Chairman Daniel Oliver wrote a similar piece for the May 4 issue of The National Review.

Sen. Hatch, Sen. Gorton, and the Rolling Stones

Sen. Orrin Hatch (R-UT) went to the Senate floor Tuesday morning to deliver a speech condemning the New York City rally and Microsoft.

"I have been told that some executives in fact hope to see the Justice Department pursue further its case against Microsoft, but have chosen to join Mr. Gates on that stage today because they feel they have little choice but do so in order not to jeopardize their relationship with the industry's most powerful and important player."

Later in the day Sen. Slade Gorton (R-WA) spoke in rebuttal.  He said, "This is a campaign by Microsoft's unsuccessful competitors to limit Microsoft's competitive ability to benefit consumers.  Consumers aren't complaining, competitors are."

Sen. Hatch also stated that:

"The release of Windows 95 was accompanied by a theme song ... the Rolling Stones' hit song "Start Me Up."  For innovators seeking to compete with Bill Gates, for PC makers who feel that they have little choice but to steer clear of any actions that might upset their relationship with Microsoft, and for consumers increasingly beholden to Microsoft for software products, I wonder whether the theme song for Windows 98 shouldn't be another Rolling Stones song -- "Under My Thumb."

Sen. Gorton also cited the rock legends.  "When I hear Senator Hatch defending Janet Reno and lawyers of the Justice Department I figure he has been listening to 'Sympathy for the Devil' a little too much lately."   Gorton concluded: "All I can say is, fellas, "You can't always get what you want."