Changes in Visual C++ 1.5 Resulting From Stac Verdict

ID: Q114154

1.50 WINDOWS kbreadme

The information in this article applies to:

SUMMARY

Due to the recent ruling in the court case regarding the DoubleSpace technology Microsoft was using in MS-DOS (and other products), Microsoft is taking the conservative position of removing this technology from all products which use it. For more information on all products affected please see the press release issued February 23, 1994 below.

Visual C++ 1.5 for Windows was slightly effected by this ruling since it includes the MSQuery tool. This tool allows you to connect to different databases using ODBC drivers. In this tool there is a help system which uses Cue Cards to provide the user with information. These Cue Cards were compressed using the same technology that is in DoubleSpace.

Visual C++ 1.5 for Windows has been re-released to manufacturing with no change in functionality with the compression technology removed. We will not be updating the version number of the Visual C++ box. Instead, just the version number of the Cue Card DLL has been updated to 2.00.

If you are already using a Visual C++ 1.5 for Windows that contains the older version of Cue Cards, it is NOT legally necessary for you to stop using that version for any reason. Currently, we have no plans to exchange products or recall packages already released to the public.

MORE INFORMATION

This is a copy of the press release Microsoft issued on February 23, 1994 regarding the court ruling in the compression technology case between Microsoft and Stac Electronics.

February 23, 1994 Press Release

Jury Finds Patent Infringement by Microsoft and Trade Secret Misappropriation by STAC 

   REDMOND, Wash. - Feb. 23, 1994 - Microsoft Corporation said it
will seek to overturn the patent-infringement portion of today's jury verdict in the complex patent and trade-secret dispute with STAC* Electronics. A seven-person jury decided that Microsoft's DoubleSpace* disk-compression utility in its Microsoft* MS-DOS* 6 operating system infringes two STAC data-compression patents and awarded STAC $120 million in compensatory damages.

The jury also found that STAC had misappropriated and used in its Stacker* products Microsoft's trade secret preloading feature and awarded Microsoft $13.7 million in compensatory plus punitive damages. 

   Microsoft said it expects STAC to seek an injunction against
Microsoft as part of the judgment, preventing the company from selling any additional product containing the DoubleSpace disk- compression technology. Microsoft will oppose any such injunction and will seek an injunction against STAC and its licensees to prevent them from selling any products containing the preloading feature. Judge Edward Rafeedie of the U.S. District Court in Los Angeles, who presided over the trial, will consider these issues and enter a judgment reflecting his determination of appropriate injunctive relief. 

   Microsoft said it will also file immediately after the entry of
the judgment a motion to overturn the patent-infringement portion of the verdict. If its motion is not granted, Microsoft intends to appeal the judgment to the Circuit Court of Appeals for the Federal Circuit, the federal appellate court that reviews all patent judgments. 

   "While we are disappointed with the jury's patent verdict, we
believe that the evidence and the law are on our side," said Bill Neukom, senior vice president of law and corporate affairs at Microsoft. "Microsoft reiterates that it believes that its DoubleSpace utility in MS-DOS 6 does not infringe either of STAC's patents. We took extreme care, both technically and legally, to ensure that the commercial MS-DOS product did not infringe either of those patents. We are gratified that the jury found that STAC had stolen our trade secrets, which protect the fundamental design of MS-DOS. We will pursue all appropriate legal means to overturn the patent verdict and protect the trade-secret verdict." 

   Microsoft will accrue the full amount of the damages verdict.
This one-time charge will reduce Microsoft's third fiscal quarter earnings per share by 26 cents. 

   "It is important that existing customers understand that they may
continue to use their MS-DOS products. This verdict does not affect them," said Paul Maritz, senior vice president of Microsoft's systems division. "Customers buying new product will be able to get MS-DOS with its many advanced features, but without the DoubleSpace utility." 

   Microsoft said that it does not anticipate any material disruption
of the supply of its MS-DOS product. Microsoft will promptly supply to its OEM customers and its retail channel resellers versions of MS-DOS that will not include the DoubleSpace utility. 

   Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader
in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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Last Reviewed: July 23, 1997