Resellers welcome Microsoft judgement

Channel partners breathe sigh of relief

Microsoft's UK channel partners were breathing a sigh of relief this week, after the US Court of Appeals threw out the earlier break-up decree issued against the software giant.

The lengthy legal battle took a new twist when the US Court of Appeals overruled last year's decision by District Judge Thomas Penfield Jackson to break the company into two, one producing operating systems and the other applications.

However, the court did uphold a key part of the Government and US states' contention that Microsoft is a monopolist and used unlawful means to thwart competitors.

With both sides claiming victory after the ruling, and gearing up for future legal battles, resellers in the UK and US focused on the decision that Microsoft should not be broken up.

Dean Van-Velsen, head of marketing at Microsoft distributor Gem Distribution, said the ruling benefited his company.

"As far as we are concerned it is far easier for Microsoft to stay as one company because it will ensure continuation of business as usual. Anything that distracts Microsoft from its day-to-day business can only be a bad thing for the company and its business partners," he said.

Another Microsoft reseller, who wished to remain anonymous, said he was pleased with the ruling. "It will be easier for us and our customers to identify with Microsoft as one company rather than two separate entities," he said, adding that as long as Microsoft supports its partners "there is no need to split the company up".

The case is to be returned to the US District Court in Washington under a new judge, where legal proceedings will continue to decide what restrictions should be imposed on Microsoft to restore competition in the industry.

Oliver Roll, marketing manager at Microsoft UK, explained that the firm was "pleased overall with the ruling of the court" but that it will be disputing comments that it has a "monopoly".

Roll added that the case has now "become narrower with a shift of focus to the distribution and licensing model. If Microsoft doesn't do well, our channel partners don't do well."