WASHINGTON -- As closed-door negotiations began Tuesday between Microsoft and government antitrust officials, everyone remained tight-lipped about details of the discussion.
But both sides have at least hinted at what they're likely to find acceptable, or not, when things get going.
One plan being weighed by the Department of Justice and the 19 states that joined it in filing suit last May is to allow other companies to modify Microsoft Windows.
Microsoft says that's going too far. General counsel William Neukom has repeatedly stressed during the trial that federal law gives Microsoft the right to control its intellectual property.
Another government option: Demanding non-discriminatory pricing, which would end Microsoft's practice of setting different prices for Windows licenses based upon its relationships with partner companies.
Still, these are preliminary positions that could easily change during talks this week.
Attorneys for both sides met for two hours Tuesday evening. The company declined comment on the negotiations.
The lawyers last sat down across from each other nearly a year ago, when Bill Gates made a last-minute phone call to assistant attorney general Joel Klein in an effort to head off what has turned into a debilitating courtroom battle.
At the time, Gates offered to allow computer makers more flexibility in configuring opening screens that launch at startup. The government has repeatedly complained about Microsoft's control over that real estate.
In response, Klein delayed filing the suit and both sides entered into testy weekend negotiations. By two days later, talks held at the downtown Washington offices of Sullivan and Cromwell collapsed. For all the huffing and puffing, the parties were back where they had started -- headed for a showdown in federal court.
The sticking point? Gates, one Department of Justice source said, had changed his mind and "was simply not going to allow computer makers to configure the first screen."
