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Microsoft's request to shift trial denied

Stefanie Olsen CNET News

Published: 12 Mar 2004 10:30 GMT

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A federal judge on Thursday denied Microsoft's motion for a change of venue in its pending case against RealNetworks, which charged the software giant with anticompetitive business tactics.

US District Court Judge James Ware rejected Microsoft's arguments that a trial would take longer, inconvenience the company and force it to face a more hostile jury in San Jose than in Seattle.

"The court finds that a transfer would not serve [the interests of convenience or justice] any more than having the case proceed here," Ware wrote.

Streaming media provider RealNetworks filed a civil suit against Microsoft in December, seeking more than $1bn in damages from the company on charges that it illegally used its Windows monopoly to hurt digital media rivals.

In the suit, filed in federal court in San Jose, RealNetworks alleged that Microsoft has "pursued a broad course of predatory conduct over a period of years... resulting in substantial lost revenue and business for RealNetworks."

Microsoft in recent weeks formally denied the charges in a 31-page legal filing. The company argued that RealNetworks has suffered no injury as a result of its conduct, which it defended as "permissible competitive activity."

Microsoft added that there is little evidence of slackening competition in the digital media market, noting that products from RealNetworks and others continue to share widespread usage with its own Windows Media Player.

Microsoft could not be immediately reached for comment on the judge's motion.

RealNetworks spokesman Greg Chimengo welcomed the decision. "We look forward to presenting our case to a jury in San Jose, where key third-party witnesses can give important testimony in person."

Earlier this week, RealNetworks filed a lawsuit against Major League Baseball Advanced Media, claiming the league violated a contract that required it to use the streaming media company's software. It is seeking a temporary restraining order in US district court to compel MLBAM, a division of Major League Baseball, to use its formats.

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