M’SOFT BLASTS JUDGE – APPEAL SAYS JACKSON WAS BIASED, WRONG

Lawyers for the Microsoft Corp. ripped the federal judge who ordered a break-up of the company charging he was biased, unprofessional and based his landmark rulings on a trial that was “infected with error.”

The harsh rebuke of federal Judge Thomas Penfield Jackson was the dominant theme of a 150-page legal brief submitted to the U.S. Court of Appeals as the software giant opened its campaign to save itself from being broken in two.

Company lawyers said in the brief that the “entire” 78-day antitrust trial, in which Microsoft was found to be a ruthless monopolist that stifled competition in the high-tech industry, was “infected with error” – and that the evidence presented was “insufficient” to support the “radical” break-up request of the government.

They also said Jackson showed a “profound misunderstanding of antitrust laws,” as well as outright “bias” in the trial.

The bitter counterattack opened a lengthy legal battle that is expected to last long after President Clinton leaves office, leaving final decision making of the landmark case to a new presidential administration.

Although the company is widely believed to fare better if the next president is Republican George W. Bush, Microsoft spokesman Jim Cullanin said the company’s strategy to stay intact is based on its legal arguments – not political considerations.

“We think we have a great case now and the case is in the courts, where it will be decided. I don’t think the next presidential administration is going to impact this case in any way,” he added.

Legal experts have said the company is likely to have a friendly reception in the D.C. Court of Appeals, a panel that is dominated by pro-business conservatives who have already ruled in favor of Microsoft in pre-trial issues.

Justice Department spokeswoman Gina Talamona expressed confidence that the break-up order will be upheld. She said Jackson’s “judgment is well supported by the evidence offered during a 78-day trial, including thousands of pages of Microsoft’s own documents.”

In its filing, Microsoft’s Wall Street lawyers asked the appellate court to throw out the entire case but demanded that Jackson be replaced if there’s a new trial.

Lawyers also attacked Jackson for media interviews he gave after the June 7th break-up order.

“By repeatedly commenting on the merits of the case in the press, the District Judge has cast himself in the public eye as a participant in the controversy, thereby compromising the appearance of impartiality, if not demonstrating an actual bias against Microsoft,” lawyers said in the brief.

Microsoft shares closed up 75 cents at $70.69.