Microsoft Payout to California Begins

By Ed Oswald, BetaNews

July 26, 2006, 9:02 PM

The $1.1 billion antitrust settlement between California businesses and consumers and Microsoft will now go forward, after a single class action member who held up final approval by objecting to certain terms within the settlement failed to file an appeal. The agreement was initially approved in July 2004.

The claimant's appeals were rejected by both the California Court of Appeals and the California Supreme Court, and he failed to file a complaint with the U.S. Supreme Court by the allotted deadline. With the legal objections out of the way, disbursement will begin in August.

Vouchers ranging from $5 to $29 USD will be distributed among those who made a claim, although individuals who wish to pass on the settlement can elect to have two-thirds of the voucher's value donated to public schools. The other third would be returned to Microsoft under the plan.

Charles Jakob, a plaintiff in the case, objected to the court returning the remaining third back to Microsoft, saying it should be redistributed among the claimants. However, the courts disagreed with his assertion, saying it was impossible to directly reimburse all members of the class.

"We are delighted that our seven-year legal battle is finally paying off for California's businesses, consumers and schools," Counsel Richard Grossman said. "This certainly is a great day for antitrust enforcement in the State of California," added co-counsel Eugene Crew.

Most claims are below $100 USD, Crew and Grossman said, however it varies based on the type and amount of software purchased. On the business side, claims are running as high as several million dollars.