Iowans to Get $179.5 Million from Microsoft

By Ed Oswald | Published April 18, 2007, 4:34 PM

Microsoft has agreed to settle a class-action suit with Iowa for $179.5 million, which will make residents of the state who bought Microsoft products between 1994 and 2006 eligible for a cash settlement.

The amount will vary based on the cost of product purchased during the period. Each copy of Windows or MS-DOS is worth $16; Excel $25; Office $29; and Word, Works, and Home Essential $10.

Online claims under $100 and mail-in claims of $200 will require no proof of purchase, however those above that amount will require receipts. Corporations would be eligible for vouchers on the purchase of new Microsoft software.

Microsoft's decision to settle ends a seven-year battle, which saw the case reappear in state Supreme Court three times for various issues. The original suit claimed that the company had acted anticompetively and overcharged for its software.

Attorneys Roxanne Conlin and Rich Hagstrom filed the original lawsuit, and Microsoft originally offered to settle in February. However, details of the settlement were kept under wraps until now, when an Iowa judge gave his approval to the terms.

Half of the unclaimed proceeds from the settlement will go to rural and disadvantaged K-12 schools for the purchase of software and hardware. "This program directs money for technology to Iowa schools that need it the most," said Rich Wallis, associate general counsel for Microsoft.

"This case concerned issues that have long since been resolved, and we’re very pleased to put this chapter behind us and to focus on the future," Wallis added. "The world of technology changes literally at the speed of thought. Successful companies must spend their energy on creating new products and services rather than debating stale issues from 15 years ago in the courts."

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all this is so pointless... IF when MS 1st started flooding the market through questionable contracts with pc manufacturers a cry out was made, perhaps things would be different, there might be more choices for operating systems and/or software... maybe... then again, maybe not. what's done is done and we now have to live under the cloud of Microsoft. Sure, all major corporations have ghosts in the closet, lets stop looking at the sh*t that was done in the past and move on to the future
I see every day people, commoners as well as geeks and gurus whine about "evil microsoft".... grow up... gurus and geeks, become programmers and make something new and better - or shut up and live with the fact we are stuck with microsoft.

Myself, i despise microsoft for all they have done, however, I adore all the money I have made thanks to repairs and troubleshooting I have done to systems thanks to microsoft providing such shabby software and operating systems

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The larger issue is that you are somewhat pressured into purchasing new operating systems which in turn require newer hardware in order to maintain the same usability.

To start off with, patches, updates, fixes, and security updates all cease with older versions of operating systems. There is no 3rd party manufacturer, no way to fix the problems yourself, and no trade in value on what you have already purchased. Thus, you are either forced to buy newer operating systems that are compatible with your applications or to look to alternative solutions.

Technical people tend to feel that *nix systems are the perfect solution for people who only "surf the web" and "check email". On paper, this sounds great, but when implemented brings more problems than solutions. Very few applications are cross platform, and those are limited in scope, so users must identify and install alternative applications. Many of the application features and functionality are either unavailable or take different appearances in the alternatives.

The support factor completely changes as your local computer shop may not be able to handle *nix devices. So if there is a problem, you may have to rely on expensive shops like Best Buy to provide their support. The other major issue is software installation on *nix is much more complicated that systems like PC and Mac.

Macintosh is an interesting concept implemented poorly. It truly is the solution for those aforementioned surfers and emailers. The reason is that the software library for Macintosh does not contain the vast amounts that are available for PC.

Having said all this, following a tangent from a Microsoft solution will provide a less complete system either due to market availability or technical prowess of the user. So the majority will continue to plod along Microsoft's trail dropping breadcrumbs in the form of money and tithing to Mr. Gates.

There may be an end in sight, but strong companies like Microsoft will try to prevent those ends using whatever legal trickery and bribery they can. They will continue to do this behind the scenes while publicly embracing those technologies. They thwarted efforts of the politician who tried to break away from Microsoft by compromising without giving much ground to the Open Source effort.

Microsoft sees things that will unmake them. They will continue to try to eliminate and contain those efforts before they gain any market leverage or public attention.

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MS should buy Iowa. Then they'd inherit all the corn, which by some estimates will increase in value considerably as a new fuel source. Hmm, I smell revenue, profit and synergy. The three magic words MBA types love to beat off to.

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Personally, I love Microsoft. & I think their software is well worth the price. To have thousands of software programmers all over the world work on it, and still deal with all these petty law suits is unfathomable to me. If you don't have the money to buy a microsoft software, go get something else. Don't buy it and then say I am overcharged. lol You are the idiot that bought it in the first place. Noone forces you to purchase it. True, most people use it, so? There are various products that are 'similar' to MS products. I think all people that sue for idiotic reasons like this should be hung with Sadam, and their lawyers castrated. It's like the fat tub of lard that sued McDonalds for getting him fat. WTF is this world coming to? You self righteous pricks who speak down on other peoples work, who can not design any product your own damn self which even comes remotely compared to MS, need to go sit in the corner, bite on your lip, and dismiss yourself from life. Because you just end up living a bitter life full of complaints because you can't enjoy the things that are already in front of you. While you purchase a 600$ program from Microsoft and WHINE about the costs, you have people who could use 10$ a month to help them live. & you cry about it? lol Give me a break. There are scores of people in the world who are far worse off than you. Support the companies that you care for. & Quit whining about those that you don't. Be happy, or go jump off the roof. :)

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Thank you for the lovely biased view of the world around you.

While I may not agree with this lawsuit because it has such little effect on current day, I cannot say that Microsoft's operations are without fault. (See my longwinded post for more info)

As far as your McDonald's comment, compare the foods you eat today to what people 20 or 30 years ago ate. The food that is being sold cheaply as "fast food" is overly processed and has very severely reduced nutritional value.

I am happy that the McDonald's lawsuit(s) came into the public eye, even if I do not agree with the insane amounts McDonald's was forced to pay. It forced consumers to take a serious look at what we are stuffing our faces with. It also forced naive individuals to understand that companies and corporations care very little about the products they produce and how they affect their consumer base as long as they can still turn a profit.

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Not sure what the specifics on this case are... but here's an interesting tidbit...

iRise, a company that developes project management software charges $250,000 to $1 million for their enterprise system (their starter kit is 40k). An amazing dollar amount but they have apparently built a successful business model on their solution+pricing structure.

refs:
1. http://www.irise.com/
2. google: irise $250,000

Anyone else know of other companies that charge 5-6 figures on software?

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I see, this morning, that Microsoft is finally charging what their software is really worth, about $3.00!

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How can they charge too much for their software?

I think Adobe charges too much for Photoshop that's why I don't use it.

If I felt that I was paying too much for MS products, I would use something else. And I do, OpenOffice on my home laptop, linux on another - this is all just a crock.

I'll tell you the real truth behind these stupid lawsuits. It's the attorneys who are making the money - the rest is all just a scam - tort reform is needed to get rid of this kind of crap.

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And why is everybody always complaining about the EC? All the different lawsuits in US states that Microsoft already settled and probably are gonna settle are costing them more than the one settlement in the EU.

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rofl, from the way iwintaz and drumcat talk about Iowa, I don't think I'd move there under any circumstance.

I still dont understand the case, but oh well. So MS overcharged and acted anti-comp in this state only? Or for eg, could other states follow suit and sue them as well?

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M$ could just buy Iowa outright by adding another $100 million.

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"This case concerned issues that have long since been resolved, and we’re very pleased to put this chapter behind us and to focus on the future, The world of technology changes literally at the speed of thought. Successful companies must spend their energy on creating new products and services rather than debating stale issues from 15 years ago in the courts." said Rich Wallis, associate general counsel for Microsoft.

And yet, the Iowa judge let this go on for so long...

The individuals who step forward to claim some $16-$29 per product (pocket-change) would be taking it away from "rural and disadvantaged K-12 schools" who really need it.... Now who would be the greedy ones?

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Oh yes. Give more to the schools who can't manage the money they get from our taxes now. If this money belongs to the people who purchased MS product with their hard earned money, then only they should reap the "pocket-change". If I then want to donate my "pocket-change" to a school or charity it is my business.

Where do you or anybody else get off thinking that my personal property (pocket-change or otherwise)belongs to a school or any other bleading-heart liberal socialistic cause.

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Ok, "rural and disadvantaged K-12 schools" do NOT need help.

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Alright idOT242, "rural and disadvantaged K-12 schools" DO need help but your Socialistic approach is not the answer. Should we give them your tax refund? And how about you just sign over your retirement, bank accounts, and even the rebate on your Dell computer.

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Unclaimed... LMAO. Even the brainy bunch in Iowa know a freebie when they see it. I expect that all 49 people with internet access there will apply for $99 of rebates...

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This debate always kills me. If I make a product, I can determine what I want to sell it for. Plain and simple. You don't like what Microsoft charges for their product, tough s***. Buy something else.

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Yea, i mean, another one is "price fixing". I think this just another legit way of making (more) money... i mean, you dont HAVE TO buy it, right?

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