Microsoft changes settlement of private lawsuits

Microsoft has unveiled changes to its offer to settle private anti-trust lawsuits by donating reduced-price software, computers and training to schools.

The changes are designed to answer criticism the donations will extend the company's market dominance.

Microsoft lawyer Tom Burt urged US District Judge J Frederick Motz to accept the settlement, saying schools would benefit from the settlement plan, not the software giant.

He said schools would be able to make their own technology choices.

"This is going to be a platform-neutral settlement that is not going to be influenced by Microsoft," Mr Burt argued in urging acceptance of the deal that would provide an estimated $1bn for school donations.

Among the settlement changes unveiled by Microsoft were changes in the way the foundation that will oversee the money will pick its board members and that the foundation, not Microsoft, will oversee the doling out of $90m in teacher training funds that are also part of the settlement.

The changes are designed to address the criticisms of some educators and Microsoft rivals that the plan would simply encourage students to use the company's software and thus extend its market dominance.

Last week, Apple told the court the settlement constitutes a massive subsidy for the adoption of Microsoft products in schools. Apple holds nearly half the pre-college educational market and analysts said that share could be threatened by the settlement.

Under the proposal, Microsoft would provide at reduced prices more than $1bn worth of Microsoft software, refurbished personal computers and other resources to more than 16,000 of the nation's poorest schools.

Mr Burt said he hopes more companies will join the foundation and stressed that schools can make their own technology choices.