FC: Transcript of Justice Deparment press conf, Microsoft statement

From: Declan McCullagh (declanat_private)
Date: Thu Jun 28 2001 - 13:50:30 PDT

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    DOJ sends out these transcripts, apparently for lazy reporters' quoting 
    convenience, so here you go.
    
    Background:
    http://www.politechbot.com/p-02195.html
    http://www.politechbot.com/cgi-bin/politech.cgi?name=antitrust
    
    *********
    
    For Immediate Release
    June 28, 2001
    
    Microsoft Response to U.S. Court of Appeals Decision
    
    REDMOND, Wash. - June 28, 2001 - In response to the U.S. Court of Appeals
    decision today, Microsoft Corp. issued the following initial response.
    
    "Microsoft is pleased that the U.S. Court of Appeals has overturned most of
    the lower court's findings against the company, drastically narrowing the
    case and removing the breakup cloud from the company."
    
    "The central issue in this case is the fundamental principle that every
    company must have the ability to innovate and improve its products on behalf
    of its customers.  On this point, we are very pleased that this ruling
    reverses the District Court's previous ruling and provides a positive
    framework for Microsoft if these issues have to be retried.  Today's ruling
    creates a better framework for allowing companies to improve products on
    behalf of consumers by adding new and innovative features."
    
    "While there are some aspects of this ruling on which we didn't prevail, we
    continue to believe that we face significant competition every day and we
    must continually improve our products in order to succeed."
    
    "We recognize that as a successful company, we have an important
    responsibility under the law and to the broader industry.  We take that
    responsibility very seriously, and we will continue to work hard to provide
    great opportunity for our industry partners and consumers.  We also
    understand that the best outcome for our customers, shareholders, partners
    and the entire industry is a quick resolution to this case. The case was
    substantially narrowed today, and we will continue to work toward resolving
    the remaining issues expeditiously."
    
    *********
    
    Attorney General News Conference
    June 28, 2001
    
      ATTY GEN. ASHCROFT: Good afternoon. Today the United States Circuit Court 
    of Appeals for the D.C. Circuit issued its opinion in the Microsoft case. 
    I'm pleased to say that the court unanimously found that Microsoft engaged 
    in unlawful conduct to maintain its dominate position in the computer 
    operating systems. This is a significant victory.
    
          I want to applaud the hard work of the men and women in the Antitrust 
    Division and the Solicitor Generals Office, from the prosecutors and 
    economists, to the paralegals who have worked tirelessly on behalf of the 
    American people. I also want to thank the state attorneys general who have 
    worked side by side with the department in this respect.
    
          I want to introduce to you now someone that I'm pleased to work with 
    on a daily basis, Charles James, the assistant attorney general for the 
    Antitrust Division. He will make a brief statement at this particular time 
    and, obviously, is going to be available in terms of a more comprehensive 
    discussion of this issue later on.
    
          The Assistant Attorney General for Antitrust, Charles James.
    
          Charles?
    
          MR. JAMES: Thank you, sir.
    
          Just to amplify briefly on the attorney general's comments. Today's 
    decision represents a very significant victory for the Antitrust Division 
    on the core claim in the Microsoft case; that Microsoft engaged in 
    anti-competitive conduct to preserve is monopoly position in computer 
    operating systems.
    
          The unanimous court has concluded now that Microsoft has monopoly 
    power and has acted unlawfully to preserve it. The court of appeals, 
    however, sent the case back to the district court for further proceedings 
    on the time claim and the remedy.
    
          The court's decision is both long and very complex. Our task in the 
    Antitrust Division is to work with the states to digest the opinion and 
    determine our future course of conduct.
    
          Thank you.
    
          ATTY. GEN. ASHCROFT: A top priority of this administration and this 
    Department of Justice is reducing gun crime by the vigorous enforcement of 
    the national's gun laws. The Brady Act, enacted in 1994, requires that all 
    federally licensed gun dealers perform a background check before selling a 
    firearm. The Brady Law helps us stop convicted felons and other dangerous 
    individuals from buying guns easily.
          Today I am announcing a plan to improve the process of background 
    checks on gun buyers, a plan which will achieve two major objectives. The 
    first objective is to increase prosecutions of those who attempt to 
    purchase guns illegally. The second is to improve the accuracy, efficiency 
    and reliability of the national instant criminal background check system, a 
    system we call NICS.
    
          Just a few weeks ago, President Bush unveiled Project Safe 
    Neighborhoods, a comprehensive national strategy to enforce vigorously 
    existing gun laws.
    
          Federal law makes it a felony for convicted felons and other 
    dangerous persons even to possess a gun. Federal law also makes it a felony 
    for convicted felons and other dangerous individuals to lie about their 
    records in attempting to buy a gun. Violation of these laws carries 
    penalties of up to 10 years in prison. Violators can and should be 
    prosecuted to the fullest extent of the law.
    
          The reality, however, is that Brady Act violations are not being 
    prosecuted adequately. From Brady's enactment in 1994 through June 5th of 
    this year, the FBI has referred 217,000 attempted illegal gun purchases for 
    investigation. Of these, only 294 people have been convicted. We can, we 
    should, and we must do a better job of preserving the integrity of our gun 
    laws in the eyes of the citizens who are expected to obey these laws.
    
          Today I am directing all U.S. attorneys to prosecute to the fullest 
    extent practicable persons who attempt to purchase guns illegally. To 
    provide prosecutors with the tools they need, the Department of Justice is 
    targeting 113 new prosecutors in the areas with the highest levels of gun 
    crime.
    
          In some areas, we will double or triple the number of federal 
    prosecutors devoted to the prosecution of gun crimes. Phoenix; Los Angeles; 
    Washington, D.C.; Miami, Florida; Atlanta, Georgia; Chicago, Illinois; New 
    Orleans; Baltimore; Detroit; St. Louis; New York, northern Ohio; 
    Philadelphia; Puerto Rico; Houston; eastern Virginia; Milwaukee -- all of 
    these areas are receiving needed assistance to prosecute Brady Act 
    violations and other gun crimes.
    
          Secondly, today I am issuing a series of directives to make the 
    national instant criminal background check system a more reliable and 
    efficient tool to keep guns out of the hands of criminals and other 
    dangerous persons.
    
          I'm directing the FBI to increase to the fullest extent practicable 
    the percentage of the NICS checks that result in an immediate response of 
    "proceed" or "denied" while the dealer who is proposing the sale is still 
    on the telephone. Currently 71 percent of calls are given an immediate 
    response. I'm directing the FBI to explore ways to increase this number to 
    90 percent, the highest level practicable given the current state of 
    criminal history records in our system.
    
          The back check system is only as good as the criminal records it 
    contains. Many of the over 62 million criminal history records note an 
    arrest but fail to specify how the arrest was resolved. That makes it 
    impossible for the NICS examiner to know the outcome of the case.
    
          The Brady law permits transfer of a gun if no disposition of record 
    can be found within three days. A recent FBI study found that between April 
    and December of the year 2000 over 45,000 applicants with an open arrest 
    record were allowed to purchase guns because the three-day requirement was 
    not met. Improving the criminal history records will decrease this number, 
    and it will speed up the approval process for law-abiding purchasers.
    
          I am therefore also directing the Bureau of Justice Statistics to 
    conduct a comprehensive, state-by-state review of missing or incomplete 
    criminal history records, including adjudication records of cases regarding 
    competence in mental illness and domestic violence. Based on that review, 
    the Bureau of Justice Statistics will target its grants to those states 
    where improving records repository would have the impact most therapeutic 
    on the background check system by closing the gaps in our
    awareness of criminal records.
    
    
    
          ATTY GEN. ASHCROFT: Well, when you look at the Brady mandate or the 
    Brady law, there are two competing aspirations in the Brady law. The first 
    says -- is that we should limit the access of certain individuals -- 
    dangerous individuals, convicted felons -- to guns, and the second says 
    that we need to protect the privacy of individuals.
    
          Balancing those interests is important, and the maintenance of 
    records of gun purchases is prohibited by the act, except to the extent 
    necessary.
    
          And we believe that we can have the kind of accurate auditing that is 
    recommended by the computer industry for the conduct of these kinds of 
    checks in a very quick time frame and that it would be inappropriate, 
    consistent with the mandate of the law, to require a further maintenance of 
    those records than is necessary. The intent of the law is, one, to protect 
    the privacy of legitimate gun dealers and, second, to have a capacity for 
    auditing. We are confident the capacity for auditing in a real-time setting 
    can be done.
    
          Most of us are familiar with real-time auditing of telephone 
    transactions regarding computers and databases. We frequently call now to 
    get information, and you'll hear things like "This phone is being recorded" 
    for purposes of checking and verifying the integrity and value of the phone 
    call, and those kinds of auditing procedures are the kinds of procedure 
    which best guarantee the integrity of those events, and those are the kind 
    that we would move toward.
    
          Yes, sir.
    
          Q Sir, on Microsoft, the appeals court rejected the remedy that the 
    department had favored, the breakup of Microsoft. Do you have a reaction to 
    that portion of the ruling today?
    
          ATTY GEN. ASHCROFT: We feel that the court, in stating very clearly 
    that the monopoly position of Microsoft was maintained in an unlawful 
    manner and by unlawful conduct that was used to maintain this dominant 
    position is a major victory. And for me to go further than to make that 
    kind of statement is to ask me to remark beyond the level of my reading of 
    the opinion at this time. The opinion just came out at noon.
    
          Q Is a settlement more likely?
    
          ATTY GEN. ASHCROFT: Pardon me. Would you state again that --
    
          Q (Inaudible.)
    
          ATTY GEN. ASHCROFT: I don't believe that we're in a weakened 
    position. My own view is that this is a victory for the department, and so 
    the department is not, I believe, in a weakened position here. The court 
    did find that Microsoft had engaged in unlawful conduct to maintain its 
    dominant position in the computer operating system arena. And we'll 
    carefully read the decision with a view toward shaping our conduct.
    
          STAFF: One more question.
    
          Q Will settlement of the case be an option? And will you continue to 
    push for a breakup?
    
          ATTY GEN. ASHCROFT: We will pursue the best interests of the American 
    people and of America. And to the extent that we can get that done, we will 
    explore all kinds of avenues to do that. My judgment is that we still have 
    a lot of analysis to do in this very complex opinion. It's pretty clear 
    from the complexity of the opinion that the court made every effort to 
    address a very wide variety of serious and difficult issue, and we have to 
    digest that opinion very carefully.
    
          Yes, sir?
    
          Q How long do you think it will take to bring James Kopp back to the 
    United States, considering the possibility that he could appeal today's 
    ruling to higher courts in France?
    
          ATTY GEN. ASHCROFT: I'm not sure what the time frame would be in the 
    judicial system. I would just indicate that the system has to date moved 
    with relative alacrity and dispatch, and we're pleased that the system 
    appears to have made this preliminary determination that extradition in 
    regard to federal charges would be appropriate.
    
          Q On Mr. Milosevic, could you --
    
          ATTY GEN. ASHCROFT: I think I -- yes?
    
          Q Sir, the states attorneys generals in the Microsoft case have 
    indicated this afternoon that they will be pushing for breakup. Does it 
    complicate matters if the states attorneys generals are getting out in 
    front of the Justice Department in this matter? And have you discussed his 
    yet with them?
    
          ATTY GEN. ASHCROFT; We're still working to digest this opinion very 
    thoroughly. We believe this is a significant victory in terms of the 
    determination made by a unanimous court that Microsoft had engaged in 
    unlawful conduct. But I'm not prepared at this time to indicate what the 
    final outcome to be pursued on the part of the Justice Department is. We'll 
    shape our response to the decision after we have more time to digest it.
    
          Thank you very much.
    
          Q Thank you.
    
    END.
    
    
    
    
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