Article Abstract:
Microsoft has decided to cancel its Ali Baba project, which would have bundled encrypted versions of other Microsoft applications on the company's Windows 95 CD-ROM. The idea behind the Ali Baba project was that users could preview other Microsoft programs via the Windows 95 CD, purchase desired programs over the telephone and then receive a digital 'Open Sesame' key that would unlock the encrypted program for use on the user's system. Microsoft reportedly decided to scrap the project because retailers and distributors raised objections fearing that Ali Baba would reduce their software sales. Competitors such as Lotus were also concerned about the Ali Baba proposal and charged that it could be considered 'an abuse of monopoly power' given Microsoft's dominant role in the operating system market. Microsoft is already embroiled in an antitrust battle with the government following a Jan 1995 decision by a federal judge to reject a previously negotiated antitrust settlement agreement with the Justice Dept.
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Article Abstract:
Microsoft is prohibited from bundling its Internet Explorer Web software with its popular Windows OSes, according to Federal Judge Thomas Penfield Jackson's preliminary ruling. This prevents Microsoft from forcing PC manufacturers to accept Internet Explorer as a prerequisite to license Windows 95 and future Windows versions. The decision is considered a victory for the Federal Government, which accused Microsoft of violating a 1995 consent decree provision that barred it from using its Windows muscle to benefit its other products. Judge Jackson, however, declined to uphold the Justice Department's request of fining Microsoft $1 million a day for contempt charges. Microsoft likely will be forced to alter its licensing agreements concerning Internet Explorer and Windows 95. Judge Jackson's ruling also impacts Windows 98, due in April 1998, which increases the two products' integration.
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Lotus Development Corp plans on licensing portions of its Notes office automation software program to IBM for use in the IBM OfficeVision office automation software. Industry observers note that the Lotus Notes program, which has been well-received by customers but lacks market share, will now have a powerful sales force behind it. Lotus Notes is an innovative network software program that allows users to conference via networks. Analysts note that the Lotus Notes program might be able to rescue IBM's OfficeVision office automation software, which has suffered delivery delays and technical problems.
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