Microsoft has officially won the battle against Netscape, but for Bill Gates, the browser war is far from over. The federal government has filed an antitrust lawsuit against Microsoft, and called Gates to Washington, D.C. for questioning.
Hotshot prosecutor David Boies aims to show that Microsoft used its monopoly on PC operating systems to drive Netscape out of business. The case has the potential to bring down the software giant once and for all. And the televised drama of a smooth-talking lawyer facing off against a geeky billionaire leaves the nation riveted.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
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November. Nineteen. Ninety eight washing
in Dc Microsoft. Ceo bill gates
looks ill at is he's on screen
In a leather office chair spectators report,
Government lawyers and his own legal team packed the courthouse,
to watch him on video. Every bank space is taken in the tape,
to just is Orange brown tie nervously he's about to face
red days, questioning take deposition
led by a legal mastermind from the private sector whose joined
from which to the video is
can trial as evidence
anything he says on. The tape can and will be used against him and Microsoft.
Prosecutor, David Boys, isn't going easy on it gates rocks back in
worth in his chair and takes law
pauses before responding, sometimes getting surly and that plays
I'd into boys strategy. What what's the question is, if you ask me about what I wrote the seeing our what you asked me about, I'm asking you about January of ninety nine, six that love Yasser and what about it? What non Microsoft browsers
We are concerned about in January at night, and I know you mean concerned what is it about? The word concern which you don't understand,
the audience emits a chuckle and even judged.
Mr Penfield Jackson, known for being a tough guy, can't help it laugh.
He's got a bit more leeway to rolled his eyes, his gates quibbles, because there's no jury present gates
like someone trying to cover up the truth by splitting hairs,
he's calmly but insistently bores into it with him,
moving on until they beaten the point right into the ground, the back and forth
is draining the whole court rooms, patients and
Jackson's prostration with gates is becoming obvious.
The court room can see it in Jackson shaking head his eye roles, his laughter on top
all that
actions already ruled against Microsoft last year, but is bad is
gates comes across, jacks
starting to look biased against Microsoft and that
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For I'm wondering I'm David Brown, and this is business wars.
You're listening to the browser wars, Netscape, verses, Microsoft, Microsoft,
as out maneuvered Netscape by bundling its browser internet explorer with its windows operating systems and then give
The browser away as its use,
De Netscape Withers, but before
Microsoft can celebrate the federal governed
and twenty states, while Anti trust lawsuits against Microsoft. The governor.
Aims to show that Microsoft acted illegally in squelching competition by use,
Its monopoly on pc operating systems to drive Netscape out of business Microsoft,
just hard nosed business and is fighting back. You are
you are listening to episode six
even when they lose they win
The lawsuit goes
for years, because the stakes are high. This could bring down the software giant once and for all, and the televised drama of a smooth talking lawyer, facing off against a geeky billionaire leaves
nation riveted. The court
has the atmosphere of a huge sporting event. Dozens of reporters are covering the trial, its
page news and often the lead story on broadcast tv news chasms some
people, higher line sitters people to wait overnight outside the courthouse to hold a spot in the hopes of getting into the court room to witness all this in person. While gates
was forced to answer questions in his deposition, he refuses to
this stand. The government gets
round gates's refusal by showing video tape of his lengthy one thousand nine hundred and ninety eight deposition in the courtroom. He is obstinate.
Owners, laughter and harassment of disbelief from the gallery,
the tv audience is
having it up the juciest
so, the back and forth between gates in boys. In the tape deposition, boys is confident
he's got the hard evidence to nail gates. He shows
it's an email that a Microsoft executive sent him back in nineteen. Ninety seven, it saddens right for that says
We need to continue our jihad next year as the wait and see that now I see it doesn't say Microsoft well, when it says we
you understand, that means something other than Microsoft, Sir. It can mean Brad chases grow
Aids is parsing words here and looking to shift the blame Brad Chase.
Microsoft. Vice president overseas,
the launch of both windows. Ninety five and internet explorer boy
moves onto the flash is part of the email.
You know what he means by Jihad had think his report to our cigarettes, efforts to make a superior product into.
Market. That product gates seems to have an explanation for everything, but his purse nicotine's isn't currying favour, as the trial applauds on Microsoft. Executives are forced to take
stand. They admit they tried to out compete Netscape, but they paint the company
she is run of the mill any company tries to
best competitors afterall. Unfortunately,
the software giant. There's an extensive paper trail and boy.
These plans to follow it as far as he can.
An email, a Microsoft exec sent in December nineteen? Ninety six practically spells out the?
companies plan to bundle internet explorer and windows to beat Netscape and assist
district attorney rigid aloud. I do not
Leave we can win on our current path, even if
get internet explorer totally competitive with navigator. Why would we be chosen? They have.
Percent of the market share
like an is. We have to leverage windows more, we need something more windows. Integration
pretty well sums up what boys is trying to demonstrate
the only way that Microsoft could win the browser war is to cheat and winds
Is there a atomic bomb of choice and then more
turns up the heat even more by calling on Netscape CEO, Jim Bark to set the record straight.
With his Louisiana draw these already a far more charming witness thing gates. Markdale puts the blame for Netscape's demand.
Squarely on Microsoft. It might
sorry did not engaged in its anti competitive practices. It is my belief, and was
speculation and Netscape that Netscape would have been able to continue on its mid ninety ninety six trajectory that would means
spirit growth instead, Netscape cratered
Microsoft. Lawyers strike back my
Shops led lawyer, John Warden, a partner with the prestigious white collar law. Firm, celebrating Cromwell tries to paint barks day
as a sore loser.
So one hundred percent Labour Netscape's demise is on Microsoft. There were no other factors, ward
has a few other aces up his sleeve, too
produces one I'm Netscape's strategy documents. Titled project rocket launch plan
warden is interested in one line from the memo, in particular d
J and court actions create opportunity for Netscape. He intends to prove that Netscape hoped
legal troubles would be Microsoft, downfall, warden approaches,
barks, Dale and the witness stand. Is this
in your mind, a key opportunity for net scapes business, not a key one,
This suit is a way of protecting an opportunity to keep the playing field open for internet software. Markdale is more forthright
in at ease on the stand and gates was in his deposition. He's oppress, darling and gates is the villain
The press gets surprisingly good access and the trial judge.
Action not only allows them to film in the courtroom he's open to talking about the trial himself. To give in
site into his decision making process. Jackson grew
it's a series of interviews to the new Yorker and the New York Times throughout the proceedings. Journalists come to speak
with a judge in his chambers, in between courts sessions, getting updates,
his views of the various players. The New York
influential media reporter cannot letter has his teeth.
Rapporteur out and sits on the edge of his seat once and
Lifetime trials with huge stakes don't come around very often, and all letter is a constant presence in the courtroom across from him.
Judge Jackson relaxes back into his reflected mode. It's him
wouldn't in this case that the public understand how the judges mind was made up so that
when I make my decision in the end
They know where it came from
or let a nods. He know
he's getting good material for his story
materials aren't yet public
Can you hold them off the record until a final decision is made of cars on November
fifth, nineteen, ninety nine a year and a half after the government, bile suit, Judge Jackson issues. His findings
Microsoft, dominance in the personal computer operating systems market does com
two to two monopoly he says,
Microsoft, acted to crush any threats to that monopoly.
Action reads: allowed his decision, Michael
soft decision to tie internet explorer to windows,
truly be explained as an attempt to benefit consumers and improve the efficiency of the software market generally,
rather as a part of a larger campaign to quash innovation that threatened its monopoly position. Microsoft placed in it
if on the scale of competitive fortune, thereby effect
only guaranteeing its continued dominance, even
Jackson issues. The ruling after the stock markets have closed. Investors anticipate the news
Microsoft stock falls. Fourteen percent
JANET Reno, the attorney general, who brought the charges against Microsoft is please
with a usually awkward in manner and sometimes blunt to a fault. She can barely contain her glee at a press conference she gives after the ruling is come down.
This is a great day for american consumers. We are so pleased with the court's findings. Were they fully support that
Parliament's view, that this case is about protection of innovation competition.
And the consumer's right to choose the products they want in the coming months
who followed the trial closest reporters. Lawyers
heck impresarios.
Will invariably conclude that Microsoft never took
the case seriously. They
not settle outside of court early when they had the chance, nor did they prepare gates for his deposition. The company fail that each turned to apply
shape the gravity of the situation they pay
for their Blasi attitude by LAW
in the case bill gates,
swaps out of the court room after the decision has been rendered and his power
dawn by a scrap of reporters jostling for his reaction. What today's vote,
What's gonna happen to Microsoft, we
we have a strong case on appeal gates.
Heads to his own nearby press conference. To give his spin on the work you have.
We understand that MR boys made it clear in the negotiations leading up to the case. He is really out to destroy Microsoft. On June seventh, two thousand the court orders a break up
Microsoft, the company will have to split into two separate unit, one will produce the operating system and the other will produce software components. Micro
after appeals and the four separation is temporarily put on ice, but soon another unexpected opportunity.
Arises for Microsoft. With the trial over the embargo,
is also over for the journalists who spoke to judge Jackson throughout the ordeal
One by one stories hid the front page of newspapers and new sites. Full of brash
quotes from Judge Jackson, lambasting Microsoft than you
Workers cannot letter is particularly pleased with how history turned
in his story. Jackson. Compare
Microsoft insistence on their innocence to the prom.
Stations of quote gang land killers, the best remedy for the cup
Jackson tells or let it would act
really be for bill gates to write a book report. What on the
of Napoleon
The new issue of the new Yorker has just hit new stand back at Microsoft, headquarters
the gates. Minions sheepishly leaves a copy of the magazine on his desk.
In the middle of a meeting with his team, he decides he has to read it
He scans the story quickly for Jackson's quotes, landing on the Napoleon Section just list
into this, because I,
think he has a polio complex of himself and his company and arrogant
that derives from power and unalloyed success.
No leavening hard experience, no reverses. This
outrageous
The team murmurs in assent is gates thunders on.
And listen to what he says about boys
He says he's never seen a lawyer as great as boys in court. He calls boys examinations of our witnesses. Gems jams. Do you believe it
gate? Slams the magazine into a trash can speed dials his lawyers. He can't stand
outright criticism, but but maybe
maybe I can be used in Microsoft, favor
Jackson's denunciations sold a lot of
papers in magazines, making a big splash but they'll come back to haunt us.
Leaving Microsoft
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Washington Dc February
two thousand one Microsoft
gonna fight it out in the appeals process until its exhausted every legal move and its,
me of lawyers is far from calling it quits. Its appeal is now under consideration by a federal appeals court, seven appeal
Court judges host the next round of the trial in question,
both sides harshly, but
ominous of all for the governments case. Is this: the appeals court judges do not like seeing Jackson's jabbering throughout the trial,
David Title State
it plainly
I don't see how you can get around the fact that the words he chose did convey to the average person bias
Most damning of all is chief judge. Harry Edwards assessment.
There are some who would say that it violates the whole oath of office,
system would be a sham of all. Judges went around doing this. The public has
something at stake here. The integrity of the system. Jackson
whose court room is for floors below is not present here
clients to comment
June two thousand and one the seven,
judges rule that Judge Jackson was so biased. He must be refused from the case in their decision. The judges right
we hope that the actions of the trial judge seriously tainted the proceedings before the district court and called into
question. The integrity of the judicial process settlement talks,
Between Microsoft and the Department of Justice restart with that
J now under a more business,
friendly republican administration. By now,
two thousand to the department
he's too a settlement more agreeable to Microsoft than breaking up the company under the settlement, Microsoft can,
force computer manufacturers to carry Microsoft products and
They must share information about their code with other software developers that depend on windows software there
far from the case, with their reputation damaged but fully functioning. So Microsoft loses the case, but only technically in reality.
It with other than millions of dollars and legal bills. Microsoft
continues with business.
As usual, the upshot Microsoft stays whole way,
gates takes the stand and a final appeals hearing. He pontificate
so on. The speed at which the Tec World experiences upheaval.
Ten years is a very long time in the software industry
ten years ago, Windows was just beginning to become broadly successful. Tenure.
Before that the pc industry barely existed, give
the constantly accelerating pace of innovation. I expect we will see more changes in the computing landscape in the next ten years, then
in any prior ten year period he's right. Those changes are coming and fast
Microsoft is no longer a dominant force in web. Browsing. Google chrome holds those honours,
sixty three percent of the market, but Microsoft,
still reigns supreme on personal computers and corporate networks. Nevertheless, anew
out of online companies has been rising up Guph
and Amazon or on the new facebook is not far off and Apple
is the most successful of all still Microsoft
it is never stop shrugging along and today is
most valuable company in the world, after
passing apple in November of twenty eighteen. The principles
First browser wars go on
become major figures in Silicon Valley and american business generally mark andriessen. But with
with a brilliantly simple idea to make the world wide web and nice place to spend time. Heads up
major venture capital for D plays Kingmaker
in the industry and later sits on the board of Facebook
He got his revenge on those who he believed stole mosaic from him.
And remains a major player in the computer business. Jim Clark, the co founders
that's gape with andriessen becomes in.
In web indeed, and helps to found
and fund other digital ventures as well,
He never has a success like he had with debts gape, but then again
and successes like that, don't come, but once in a lifetime anyway, he too
got his revenge Eric by now
decode the original mosaic which kicked off the entire browser wars. Never
get says sucked into the machinery of Silicon Valley is andriessen
He now lives in Illinois with his family
Paul, Alan retired, from Microsoft, thanks to a bout of Hodgkin's lymphoma in the mid eighties
but maintained his shares in the company when micro
Oft later goes public, he becomes a billionaire, a major philanthropists and investor. He also becomes. A
public figure in the Pacific Northwest thanks to a sports team ownership. He purchases,
Portland, trailblazers of the NBA and nineteen eighty eight and the sea
I Seahawks of the NFL eight years later, but
ever beaches cancer and dies
In twenty eighteen at the age of sixty five and bill gates,
bill gates becomes the world's richest man for a time before being eclipsed by another tech, gazillion air Jeff Basis,
He remains involved with Microsoft, a company with more staying power than many of the software, and especially online brethren, wild Michael,
sought loses some ground in the arts. Why? Twenty eighteen
Its stocks are back at record, highs its products as popular as ever
gates, transitions in the arts, out of being the company's primary decision maker and by twenty fourteen is no law.
Where the majority stockholder he visits in
dead toward large scale philanthropy, along with his wife, together
use the bill and Melinda Gates Foundation to donate heavily to agricultural research, to battle hunger and promote global health. Netscape
we'll Netscape, is now just a historical footnote in the archives of the many companies come and gone that shape the digital world and made it what it is today, but it
a major one. The spark that lit the web of flame
and reasons vision that people would
get to see the internet is something fun: Exe,
Simple and customizable has come true and then some.
Today. There are literally billions of websites and the web is ubiquitous. The connect
the fabric of modern life for better man. For worse.
In May one thousand. Ninety five before Microsoft had significantly invested in the internet,
send a memo to his staff. In it he wrote the internet
the most important single development to come along since the IBM pc was introduced in nineteen eighty one, the internet is a tidal wave.
It changes the rules. It is.
An incredible opportunity.
As well as an incredible challenge.
Scape surf that tidal wave then drowned
when the waves came crashing down where,
I'll still, writing
in its wake.
From wondering this
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what business war stories. You like to hear a quick note about conversations that you ve been hearing. We can't know exactly what was said in many cases, but this dialogue is based on our best research on your hosts, David Brown, Adam
I wrote this story edited by Emily Frost, Charan Low is our senior producer and editor edited in produced by Jean Lambert, sound designed by Bay Area, sound our executive producers, Marshall created by or non motors for, wondering, hey, I'm Dan Rubinstein.
Host of wonder is show sports wars on sports wars. We dive into some of the biggest rivalries in sports history and this week were starting a new five episode series on the jug or knots of pro wrestling stone, Cold, Steve, Austin and the rock so get ready for pile drivers, bloody noses and yeah. You know it metal, folding, chairs, to listen to stone, cold versus the rock and other great stories subscribed now to sports wars from wondering.
Transcript generated on 2020-03-18.