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PX04275 Far East OEM. NT must be domain controller | 66 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
PX04112
Authored by: Anonymous on Monday, August 13 2012 @ 06:36 PM EDT

Attorney client privileged - draft

Dear Linda,

We received a copy of your letters to OEMs (undated - attached) titled "IntelliQuest's Response to the Microsoft anouncement of Windows 98, the 2nd Edition (OSR-1)".

We are not sure who received this letter but would like to remind you that , although we've announced the name of Windows 98 2nd edition, the details of the Product as discussed in our meeting remain confidential per Intelliquest's non-disclosure agreement (dated Rfebruary 23, 1998).[Rfebruary is SIC]

We should point out that many of the terms you are encouraging OEMs are outside of the boudaries of business terms that have been long-established between Microsoft and its OEMs «Unclear whether or not we point these out or remains vague. These include autorunning exes 30 days after boot, running exes in the the first boot process»

Given that we fully disclosed our product designs in anticipartion of assisting Intelliquest in working together with our mutual customers, it seems odd that you would subsequently send them a letter urging them to "push back" without first attempting to disuss it with us.

While I am unaware of any daily contact you may be having with Microsoft as referenced in your letter, we do remain quite open to working with you. However, we are unsure how to proceed given that you "view Microsoft as a competitor." I look forward to seeing your suggestions at your earliest convenience.

Sincerely,

Kurt Kolb
Group Manager, Worldwide Royalty Programs
Microsoft OEM Sales and Marketing

Cc: Law and Corporate Affairs, Microsoft Corp.

[ Reply to This | Parent | # ]

Comes 0706
Authored by: bugstomper on Monday, August 13 2012 @ 06:42 PM EDT
I posted this in January 2011, but it was never flagged as done and I have
noticed a few errors. Here is the corrected version.
-----------------------------------------------------------


From tedha Fri Apr 26 15:50:52 1991<br>
To: joachimk richardf<br>
Subject: RCM DOS 5.0/cbm palmtop opportunity<br>
Date: Fri Apr 26 15:45:28 PDT 1991
<p>
Debbiefl has been asking questions of our DOS team to see how we compare vs DRI.
In CBM's case, we do not look good.<br>
<p>
&gt;CBM needs to begin manufacture (burn ROMS) at least by Sept for
Christmas sales. MS expects to ship ROM DOS 5 in September. Considering how far
they've slipped, I have zero confidence in their making Sept delivery to CBM.
<p>
&gt;CBM sells 85% to Europe. MS doesn't even have a SCHEDULE for
localization yet. DRI is shipping localized Product today AND (comparitive nit)
we think it has some sort of s/w translator capability which allows one ROM code
to be translated into several languages, greatly simplifying manufacturing. We
only have a PROTOTYPE of this capability.
<p>
&gt;Debbie's information indicates that DRI is asking less than $2.
<p>
Lack of languages and meeting required delivery date raise a red flag on
possible design loss. CBM still values MS name. I am thinking creative here:
assuming I don't go against FTC, charge $0 royalty for first 6 months in
exchange for CBM advertising our new ROM DOS 5.0 with their palmtop. Or if we're
late and if Palmtop's ROM can be swapped, CBM ship 3.22 initially and MS pay for
5.0 ROMs replacement when available.
<p>
OK, I'm crazy...what do you suggest?
<p>
<div style="border-left: solid 2px; padding-left: 2px; margin-left:
8px">
From debbiefl Fri Apr 26 13:16:18 1991<br>
To: tedha<br>
Cc: debbiefl<br>
Subject: crm palmtop opportunity
<p>
Date: Fri Apr 26 13:18:26 PDT 1991
<p>
ted,<br>
cbm has requested a price and availability quote on rom dos 5. 0 for delivery in
time for a christmas release this year. there are several issues that could
cause us a design loss:
<p>
<ol type="a">
<li>MS rom dos 5 will not be released until sept.</li>
<li>We do not have any language availability as yet(4-6wks from rtm
min)</li>
<li>we do not have the ability to burn one dos into rcm and make any
language changes via software. (tomle thinks DRI does-important cost
consideration for cbm manufacturing)</li>
<li>our original price quote was $2.75 for 100,000 units</li>
<li>DRI has rom dos 5 available today, as well as several
languages.</li>
<li>DRI has quoted "sub 2.00"</li>
</ol>
<p>
as you can see our delivery schedule and lack of languages in comparison to the
competition is going severly hurt us. we do have rom 3.22 available, but only in
german, french, spanish and italian.
<p>
HELP!
</div>

[ Reply to This | Parent | # ]

Comes 1266
Authored by: Anonymous on Monday, August 13 2012 @ 07:12 PM EDT
<br>CONFIDENTIAL
<br>
<br>Non-Responsive Material Redacted
<br>
<br>From: John Ludwig
<br>To: Tina Brusca; John Ludwig
<br>Cc: Brad Silverberg; Mark Mccauley; Tom Fenwick
<br>Subject: RE: Novell and Windows 3.1 source
<br>Date: Tuesday, March 17, 1992 5:15PM
<br>
<br>
<br>Obviously this is a dangerous thing, they would love to get more
inside
<br>info on windows and ms-dos.
<br>
<br>And I don't know how well this is going to work prior to MSDOS 7. We
have
<br>had unlimited access to the Windows kernel developers and source,
which
<br>has helped us immensely. Without this kind of access (which we cannot
<br>give), it will take Novell much longer to do this work. MSDOS 7 is
<br>the release
<br>in which we intend to clean up all the interfaces and make this kind
of
<br>thing doable by 3rd parties.
<br>
<br>That said, these are the things we could think about giving them:
<br><ul type=disc>
<br><li>The Win3.1 DDK is the most important thing. No secrets
<br>given away with this. This has all the info needed to
<br>write VXDs and has sample source.
<br></li>
<br><li>Spec of the MSDOS IFS interface for MSDOS 7. Unfortunately
this
<br>is still under design, we won't be able to deliver for some time
<br>yet. And this is a dangerous thing to give them, as it allows them
<br>to start cloning it. We need to wrap their access up in an NDA
<br>so that the DRDOS guys can't get this info.
<br></li>
<br><li>If they want to do this work prior to MSDOS 7 availability,
there
<br>isn't a whole lot to give them other than the DDK above. Sparta
<br>has no real IFS interface to plug into. They will need to hook the
<br>system the hard way just like we do.
<br></li></ul>
<br>
<div style="border-left: solid 2px; padding-left: 2px; margin-left:
8px">
<br>From: Jim Allchin
<br>To: John Ludwig
<br>Cc: Brad Silverberg; Jim Allchin
<br>Subject: Novell and Windows 3.1 source
<br>Date: Tueaday, March 17, 1992 03:29PM
<br>

[ Reply to This | Parent | # ]

Comes 02367
Authored by: bugstomper on Monday, August 13 2012 @ 08:07 PM EDT
MS 6/14 RE- Build 490
<p>
Date: Tue, 25 Jul 1995 07:15:24 -0700<br>
Mime-Version: 1.0<br>
To: mikeh, daver, julieh<br>
From: troy@netscape.com (Troy Chevalier) Subject: RE: Build 490
<p>
Here's mail from Rob Williams confirming that it was going to take them a while
to get the RNA stuff done
<div style="border-left: solid 2px; padding-left: 2px; margin-left:
8px">
Return-Path: robwi@microsoft.com<br>
To: troy@netscape.com<br>
Date: 14 Jun 95 17:39:02 -0700<br>
From: robwi &lt;robwi@microsoft.com&gt;<br>
X-Exchange-Message-Id: C=US:A= ;P=MICROSOFT;1=RED-10-MSC950614173902KICX003400
Subject: RE: Build 490<br>
X-UTIL: 803225119.000
<p>
we are going to do a library as soon as we can but i can't give you a data for
it yet ... easily be 6-8 weeks because we are up to our necks in must-do work.
<p>
----------<br>
From: Troy Chevalier(SMTP:troy@netscape.com) Sent: Wednesday, June 14, 1995 4:57
PM<br>
To: robwi@microsoft.com
Subject: RE: Build 490
<p>
Subject: RE: Build 490
<p>
Thanks, I will try disabling compression and see if that helps.
<p>
BTW, any decision on an API to allow apps to create RAS phonebrok entries? I
like the ?MS ????? in ???? ???? ...
<p>
Troy
<div style="border-left: solid 2px; padding-left: 2px; margin-left:
8px">
i guess you guys figured out how to get around the key field on 490..you can use
key 9754769754 on the builds thru rtm
<p>
we test against the shiva box. if you have software compression enabled in w95
and you are going against a version of the lanrover s/w that doesn't support our
compression option (pre 3.5 final release basically) it can take 30 sec to fail
to negotiate ccp. if you disable compression in w95 or get a "good"
build of lanrover 3.5 it will negotiate quickly
<p>
-rob
<p>
From: Troy Chevalier(SMTP:troy@netscape.com)<br>
Sent: Wednesday, June 14, 1995 6:57 AM<br>
To: robwi@microsoft.com<br>
Subject: Build 490
<p>
Rob. Thanks for build490.
<p>
Have you guys tested RNA with Shiva LANRovers? I am noticing that when I dial
into one of our corporate numbers it takes 25-30 seconds to get past the
"Verifying user name and password..." part of the RNA login.
<p>
I don't have this problem on one of the other dial-up numbers which also has a
Shiva LANRover (takes only 5 seconds to verify user name and password). The two
may be running different versions of Shiva's software. I believe we are running
3.5 on the LANRover that takes 25-30 seconds to verify user name and password.
<p>
Troy
</div></div>
<p>
Printed for mikeh@netscape.com (Mike Homer)

[ Reply to This | Parent | # ]

List of ones that I posted that you may have missed
Authored by: bugstomper on Monday, August 13 2012 @ 08:47 PM EDT
Here are links to transcriptions I have posted, most in January 2011, that are still not flagged as done on my tracking page. This is in case they have fallen through the cracks.

4244
5040
4527
0713
0724
1130
1189
1242
2520
1379
1413
1918
1936
1185
1234
1233
1284
1326
1355
1393
1534
0717
1423
2099
1491
1512
1511
1514
1559
1567
1576
1642
1675
1676
1678
1768
1774
1799
1856
1891
2158A
2274
2365

[ Reply to This | Parent | # ]

There's a problem on the Comes Tracking page!
Authored by: bugstomper on Monday, August 13 2012 @ 09:14 PM EDT
I tried this both logged in and anonymous in both Firefox and Chrome. Clicking
on any of the OCR links produces, for example for 1127,

Forbidden

You don't have permission to access /pdf2/comes_ocr/PX01127-12_pages/ on this
server.

[ Reply to This | Parent | # ]

Starting on px00644.pdf
Authored by: davecb on Monday, August 13 2012 @ 10:05 PM EDT
--davecb

---
davecb@spamcop.net

[ Reply to This | Parent | # ]

COMES 9225 ["PRIVLIDGED" in original]
Authored by: bugstomper on Monday, August 13 2012 @ 10:15 PM EDT
[Ed - removed page numbers and stamps "MS-CC_RN number HIGHLY
CONFIDENTIAL" at page breaks]
<p>
From: Dave Fester<br>
Sent: Wednesday, September 26, 2001 8:31 PM<br>
To: Mike Beckerman; Rich Lappenbusch; Sue Glueck (LCA)<br>
Subject: RE: Real conference attendance and analysis
<p>
Privileged
<p>
---- Original Masage ----<br>
From: Mike Beckerman<br>
Sent: Wednesday, September 26, 2001 5:36 PM<br>
To: Rich Lappenbusch; Sue Glueck (LCA): Dave Fester<br>
Subject: RE: Real conference attendance and analysis
<p>
ATTORNEY / CLIENT PRIVILEGED
<p>
Privileged
<p>
--- Original Message --<br>
From: Rich Lappenbusch<br>
Sent: Wednesday, September 26, 2001 4:15 PM<br>
To: Sue Glueck (LCA): Mike Beckerman; Dave Faster<br>
Subject: RE: Real conference attendance and analysis
<p>
Attorney-client privileged.
<p>
Privileged
<p>
--- Original Mssage ---<br>
From: Sue Glueck (LCA)<br>
Sent: Wednesday, September 26, 2001 4:03 PM<br> `
To: Rich Lappenbusch; Mike Beckerman; Dave Fester<br>
Subject: RE: Real conference attendance and analysis
<p>
Attorney-ciient privileged.
<p>
Privileged
<p>
--~- Original Mssage ---<br>
From: Rich Lappenbusch<br>
Sent: Wednesday, September 26, 2001 9:31 AM<br>
To: Mike Beckerman; Dave Fester; Sue Giueck (LCA)<br>
Subject: RE: Real conference attendance and analysis
<p>
ATTORNEY CLIENT PRIVLIDGED
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prlvileged
<p>
Privileged
<p>
---- Original Message ----<br>
From: Mike Beckerman<br>
Sent: Saturday, September 22, 2001 11:39 AM<br>
To: Rich: Lappenbusch; Dave Fester<br>
Cc: Mike Beckerman's Direct Reports<br>
Subject: RE: Real conference attendance and anaiysis
<p>
I don't see any summary mail detailing any outcome from this meeting, or if it
even happened. Regardless, it will remain
the decision of me and of my directs as to who from WMPG attends this
conference.
<p>
We have a very broad set of technologies to track. We are entering a new
planning stage for Longhorn. We are
assessing opportunities / requirements for changes to the Corona plan. It is
critical to me that I develop people in my
group, and one way to do that is to mal-re sure that people have direct
interaction with customers and competitors. And
given that this year's conference is local and thus T&amp;E for attending is
much less, this is an ideal time to offer that
exposure and to get a super broad understanding of how Real is thinking and
competing.
<p>
If there are specific and quantifiable risks involved with attending then those
shouid be made clear, and that should have
happened WAY earlier than-4 days before the conference.
<p>
--- Original Masage ----<br>
From: Rich Lappenbusch<br>
Sent: Thursday, September 20, 2001 5:09 PM<br>
To: Dave Fester; Monica Carranza; Mike Beckerman; Amir Majidimehr; Gary Schare;
Harish Naidu; John Manferdelli; Kurt
Buecheler; Dagmar Shannon; Mike Beckerman's Direct Reports<br>
Cc: Dave Fester's Direct Reports; Steve Skiepowich; Joe Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
OK Whoa Unacceptable PR and Pubiic policy risk here.
<p>
Patty - Please scheduie a MANDATORY meeting that all DMD staff planning on
attending the Real Conf MUST attend
tomorrow afternoon for 1/2 hr. Dave and I will chair.
<p>
Invite everyone on this mai! as well as the folks listed below. I need you to
follow up with each of the admins and get
their lists ASAP.
<p>
rich
<p>
---- Original Message ----<br>
From: Dave Fester<br>
Sent: Thursday, September 20, 2001 4:40 PM<br>
To: Monica Carranza; Mike Beckerman; Amir Majidimehr; Gary Schare; Harish Naidu;
Rich Lappenbusch; John
Manferdelli; Kurt Buecheler; Dagrnar Shannon; Mike Beckerrnan's Direct
Reports<br>
Cc: Dave Fester's Direct Reports; Steve Sklepowich; Joe Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
Adding Mike's directs. Please take another look and see if we can scale
appropriately.
<p>
--- Original Mesage ----<br>
From: Monica Cananza<br>
Sent: Thursday, September 20, 2001 4:38 PM<br>
Ta: Dave Faster; Mike Beckerman; Amir Majidimehr; Gary Schare; Harish Naiclu;
Rich Lappenbusch; John Manferclelli; Kurt Buecheler;
Dagmar Shannon<br>
Cc: Dave Fester's Direct Reports; Steve Sklepowich; Joe Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
Wasn't my call. I just got them registered as requested. Mike has left for the
Disney Roundtable in Burbank, CA
so he will not be back in the office until after the Real conference. He will
most likely be on email though. Fyi....<br>
Thanx,<br>
Monica Corranzo<br>
Administrative Assistant<br>
Windows Media Platform Group
<p>
--~ Original Masage ----<br>
From: Dave Fester<br>
Sent: Thursday, September 20, 2001 4:35 PM<br>
To: Monica Carranza; Mike Beckerman; Amir Majidimehr; Gary Schare; Harish Naidu;
Rich Lappenbusch; John
Manferdelli; Kurt Buecheler; Dagmar Shannon<br>
Cc: Dave Fester's Direct Reports; Steve Sldepowich; Jae Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
Way too many people. We should limit this more and send 1 person from player, 1
from server, 1 from encoder, etc
<p>
We should not have 35 people there from MS...
<p>
-- Original Mssage ---<br>
From: Monica Carranza<br>
Sent: Thursday, September 20, 2001 4:21 PM<br>
Ta: Mike Beckerman; Amir Majidimehr; Gary Schare; Harish Naiclu; Rich
Lappenbusch; John Manferdelll; Kurt Buedieler; Dagmar Shannon<br>
Cc: Dave Fester's Direct Reporm; Steve Sklepowich; Joe Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
<ul>
<li>Adamtre</li>
<li>Howkro</li>
<li>Meiw</li>
<li>Ddean</li>
<li>Bretor</li>
<li>Nickvh</li>
<li>Rmachin</li>
<li>Beckyw</li>
<li>Carolin</li>
<li>Richsa</li>
<li>Kevinla</li>
<li>Anclerskl</li>
<li>Mikepat</li>
<li>Geoffhar</li>
<li>akucer</li>
<li>Mikebeck</li>
</ul>
<p>
Thanx,<br>
Monica Corronzo<br>
Administrative Assistant<br>
Windows Medio Platform Group
<p>
---- Original Message ---<br>
From: Mike Beckerman<br>
Sent: Thursday, September 20, 2001 11:25 AM<br>
To: Amir Majidimehr; Gary Schare; Harish Naldu; Rich Lappenbusch; John
Manferdeili; Kurt Buecheler; Dagmar Shannon<br>
Cc: Dave Fester's Direct Reports; Steve Skiepowich; Joe Powell; Monica
Carranza<br>
Subject: RE: Real conference attendance and analysis
<p>
Monica, please respond with the names of those you know that are going from
WMPG.
<p>
~--- Original Message ---<br>
From: Amir Majiclimehr<br>
Sent: Thursday, September 20, 2001 11:17 AM<br>
To: Gary Schare; Mike Beckerman; Harish Naidu; Rich Lappenbusch; John
Manferdelli; Kurt Eiuecheler; Dagmar Shannon<br>
Cc: Dave Fesler's Direct Reports; Steve Sklepowich; Joe Powell<br>
Subject: RE: Real conference attendance and analysis
<p>
I am signed up to go. l just pick and chose the sessions that look interesting.
The ones that I will not miss will be around
codecs/encoding.
<p>
Amir
<p>
--- Original Message ---<br>
From: Gary Schare<br>
Sent: Thursday, September 20, 2001 10:51 AM<br>
To: Mike Beckerman; Harish Naidu; Amir Majldlrnehr; Rich Lappenbusch; John
Manfaoelli; Kun: Buecheler; Dagmar Shannon<br>
Cc: Dave Fester's Direct Reports; Steve 5klepawich; Joe Powell<br>
Subject: Real conference attendance and analysis<br>
Importance: High
<p>
Davef has asked me to gel a handle on who is going to the Real Conference and in
what area(s) they will be collecting
information.
<p>
Marketing will be sending the following people:
<p>
Steve Sklepowich - authoring tools, codecs, format, etc.<br>
Joe Powell - enterprise strategy, server
<p>
ACTION: Please provide me with a list ASAP of who from your team is going and
what they will be responsible
for so that I can roll this up and ensure we have the appropriate level of
coverage without too much overlap.
<p>
Thanks,<br>
Gary

[ Reply to This | Parent | # ]

Comes 9305
Authored by: bugstomper on Monday, August 13 2012 @ 10:52 PM EDT
This is a web page from Microsoft's web site titled "What to Know Before You Download and Install Windows XP Service Pack 2" and says "Published: August 4, 2004 | Updated: September 17, 2004"

The identical page with the same updated date is in the Internet Archive snapshot taken 22 Sept 2004, at

Internet Archive snapshot of Comes 9305

[ Reply to This | Parent | # ]

Comes 9307
Authored by: bugstomper on Monday, August 13 2012 @ 11:06 PM EDT
Exhibit is Microsoft annual 10-k for fiscal year ending June 30, 2005. It can be found in HTML format on the SEC's EDGAR site at

Microsoft Corporation FORM 10-K
For The Fiscal Year Ended June 30, 2005

[ Reply to This | Parent | # ]

Comes 9292
Authored by: bugstomper on Monday, August 13 2012 @ 11:16 PM EDT
Exhibit is Microsoft annual 10-k for fiscal year ending June 30, 2003. It can be found in HTML format on the SEC's EDGAR site at

Microsoft Corporation FORM 10-K
For The Fiscal Year Ended June 30, 2003

[ Reply to This | Parent | # ]

Comes 9270 summary
Authored by: bugstomper on Tuesday, August 14 2012 @ 12:23 AM EDT
Exhibit 9270 is a 44 page "Java Plug-In Distribution Plan" by Bill
Pataky of Sun Microsystems dated May 9, 2002. It is appears to be a handout for
an internal Sun meeting whose agenda is summarized on the second page as:
<p>
<ul>
<li>Session Goal
<ul>
<li>Get closure on plans and resources to ensure mass distribution of the
Java Plug-in</li>
</li>
</ul>
<li>Decisions needed from today's meeting
<ul>
<li>Approval of plans to engage distribution channels and commit to
programs</li>
</ul></li>

<li>Actions from group
<ul>
<li>Green/Stout to get commitment from Business Development team for
resource availablity</li>

<li> Decide where Java resources will be drafted from</li>
</ul</li>
</ul>
The remainder of the document outlines issues and plans for getting the Sun Java
Plug-in on Windows desktops in response to Microsoft no longer including the
Microsoft JVM with Windows.

[ Reply to This | Parent | # ]

PX00644 follows this
Authored by: The Cornishman on Tuesday, August 14 2012 @ 02:46 AM EDT

I posted this as email to PJ way back; I see that it is still missing from the transcripts page, and is flagged by davecb in this thread as being the start of a problem with PDFs?

In any event, HTML markup for the transcript follows in my next post.

Jonathan

---
(c) assigned to PJ

[ Reply to This | Parent | # ]

PX00644
Authored by: The Cornishman on Tuesday, August 14 2012 @ 02:51 AM EDT
<meta http-equiv="Context-Type" content="text/html;
charset=US-ASCII">
<html>
<head>
<title>Plaintiff's Exhibit 644 Comes v Microsoft</title>
</head>
<body>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p2<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P02
<hr />
</sub>
<p>TO: Brad Chase, Marty Taucher/Microsoft Corporation<br>
FROM: Marianne Allison, Carrine Grenson/Waggener Edstrom<br>
DATE: March 29,1991<br>
SUBJECT: MS-DOS Announcement Event&nbsp;&nbsp;REVISED<br>
</p>
<p>Below is a proposal for the MS-DOS announcement. To recap, the event
serves to &quot;kick off&quot;
MS-DOS to broad constituencies who will care about it (including, but not
limited to, press.)
However, it is not the primary vehicle for communicating product news. Much of
our work
with the press will have already been accomplished prior to the
event.<br>
This includes
<ul>
<li>Pre-negotiations with monthlies. We exect this to result in covers for
at least two of the following<br>
</li>
<ul><i><li>PC World</li>
<li>BYTE</li>
<li>PC Computing</li></i></ul>
<li>Advance briefings of weeklies (the prior week) targeting coverage the
week of
the announcement. This is to ensure that we have a controlled forum to get our
messages out and respond to specific questions. We would expect weeklies to
write for the launch week ANYWAY (whether we visit or not).</li>
<li>We will talk to dailies the Friday or Monday before the
event.</li></ul></p>
<p>In summary, basic product publicity will primarily be negotiated in
advance. The eveent itself is
not a primary vehicle for product news.</p>
<p>The purpose of the event is:
<ul><li>Public demonstration of partnership with
IBM/others</li>
<li>Reinforcing long-term messages of industry commitment and acceptance
of MS-DOS 5</li>
<li>Create enthusiasm and product momentum -- &quot;kick it
off&quot;</li>
</ul></p>
<p>To build press value into the event, we should consider
&quot;holding&quot; news for that Tuesday, such
as:<br>
<ul><li>A MAJOR order from a reseller</li>
<li>A MAJOR corporate adoption</li>
</ul></p>
<p>The volume of one of these sales/orders should be precedent-setting in
order to be meaningful
and newsworthy.<p>
<p>Pending approval of this format, a creative brief and budget estimates
will be prepared.</p>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p3<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P03
<hr />
</sub>
<p><u>Key Issues</u><br>
<ol><li>Everyone should leave thinking &quot;no PC should be
without it.&quot; This means we must
communicate our product messages, OEM, IBM, ISV, customer and reseller
commitment.</li>
<li>The significance of DOS gives me the opportunity to say some important
things beyond
DOS and help improve our image. However, this event will not in and of itself
solve
our &quot;image problems&quot;. It is the MS-DOS 5 event.</li>
<li>The event should be interesting -- otherwise we will not achieve
#1.</li></ol></p>
<p>EVENT</p>
<p>This MS-DOS launch event will consist of three parts:
<ul><li>Video</li>
<li>Speech</li>
<li>Party</li></ul>
<p>It is designed to cover both Microsoft's role in the industry and the
MS-DOS version 5 product.
While guests will come in knowing about version 5, we want to have them
understand the
significance of the product and clarify rumors with truth.</p>
<p>MS-DOS is the basis of the software industry. It has become great
because of standards and
industry support</p>
<p>The sum total of the event will cover the product in about the same
level of detail as the
theater-oriented event presented earlier. This will be communicated primarily
through an
exhibit area, secondarily through a vide focusing on the evolution of DOS, and
mimimally
through a presentation by Bill Gates and/or other industry leaders</p>
<p><u>Flow</u></p>
<p>Below is the flow, as seen from the viewpoint of one of the guest. A
guest would enter a
theater-style area.</p>
<ul><li>There would be a fairly plain stage and podium.</li>
<li>OEM baners or other paraphernalia on the
walls</li></ul></p>
<p>After everyone was seated, the lights go down and moderator, Bradsi
would reach the
podium and welcome everyone. The room quiets down.</p>
<p>Key points might include: Everyone here has an interest in PCs, that
revolution couldn't have
happened without industry committment and support to DOS.</p>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p4<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P04
<hr />
</sub>
<p><u>Video: MS-DOS: No PC Should Be Without It</u></p>
<p>This video would start the event, and cover the evolution of DOS,
weaving in how the product
has been resilient and evolved throughout the years. The video message again is
that no PC
should be without it.</p>
<p>Creative treatment of the video is to be determined; however it should
be fast-paced and
entertaining.</p>
<p>Messages reinforced in the video are those discussed earlier for the
play: key product features,
OEM support, reseller adoption, customer adoption. The point of the video is to
show that MS-DOS 5
is the right DOS for today, not just any old version of DOS will do.</p>
<p>Each version has reflected the needs of the users at that time. What
they needed is different
from what is needed today. Past versions of DOS would be compared to version
5.0. Rather
than going through each and every version of DOS, we would select three key
versions (1.0, 2.x, 3.x).
Interlaced between historical picture of relevant hardware and
&quot;new&quot; applications of the
time could be interviews with vendors who are excited today (such as Egghead, a
representative
customer, and selected others).</p>
<p>Depending on how closely we are working with IBM, the video could be
produced to make a
strong IBM statement as well.</p>
<p><u>Gates Presentation</u></p>
<p>After the video, Brad introduces Bill Gates. This presentation is at a
higher level and more
strategic than the video. It is statesmanlike and communicates the
interdependencies in the
industry and the role of operating systems standards in coalescing the industry.
This is where
we communicate that MS-DOS 5 is a new focal point of this tremendously exciting
industry. A
secondary tacit purpose of the presentation is to demonstrate that MS-DOS 5 is
the &quot;official&quot;
DOS. DRI could not pull this off.</p>
<p>Bill talks about what goes into standards. Microsoft alone can't set
standards. It writes software
products. Standards come about when the industry unites around a software
platform for the
benefit of users. Over the years, the industry has been &quot;told&quot;
Microsoft that it wants the company to
continue investing in DOS, and to keep doing better versions of DOS. This is why
we are here today.</p>
<p>Bill's speech should also emphasize the industry coalescence around DOS
5. He should reinforce
the incredible OEM, reseller and customer commitment to the product. If we have
a &quot;major
order,&quot; it should be announced in his speech.</p>
<p>Bill should reflect on how MS-DOS has been an enabler for a lot of
incredible development in
both HW and SW. Microsoft just provided the operating system but it wouldn't
have been
significant without other vendors developing the hardware, software applications
and utilities.
The industry ran with it.</p>
<p>The quality of this speech is central to the event's success. This
must be a memorable, even
transcendent speech, revealing the very best side of Microsoft.</p>
<p>After Bill's speech, which should be about 15 minutes, he introduces an
IBM representative,
who speaks for approximately 5 to 10 minutes. Bradsi would then return to the
stage and invite
everyone to join in the celebration. He would also encourage people to go
through the exhibit
area on one end of the room and see the product.</p>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p5<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P05
<hr />
</sub>
<p><u>Exhibit Area</u></p>
<p>A recommended way to continue reinforcement of product messages
throughout the party is an
exhibit area. This would occupy one end of the room and would allow attendees to
learn more
about MS-DOS 5. Sectioned off to create a traffic flow pattern, there could be
five-to-six
stations that would include actual historical objects (drives, applications),
clear, short text, audio
information, monitors running talking heads videos or a product demonstration
station.</p>
<p>People would wear headphones or audio information would be available at
the push of a button
at the exhibit area.</p>
<p>The challenge to making these exhibits a success are to:<ul>
<li>Provide guests a reason to see the exhibits. Offer a button, coupon
for free
produc, or other incentive.</li>
<li>Limit text and emphasize messages through visual or audio
means</li>
</ul></p>
<p>See Appendix B below for suggestions for how these stations will
flow.</p>
<p>APPENDIX A</p>
<p>NO PC SHOULD BE WITHOUT IT</p>
<p>Everyone should leave thinking no PC should be without DOS 5. This
means we must
communicate our product messages, OEM, IBM, ISV, customer and reseller
commitment. Each
of these is detailed below:</p>
<p><u>Product Messages</u></p>
<ul><li>Memory management. Memory management is going to be really
appreciated by
corporations with networks or applications with large data files.</li>
<li>Ease of Installation. There is technical support for the retail
upgrade, but we don't think
users will need much help because we've gone out of our way to make this retail
upgrade really easy to install. You don't even need to know DOS.</li>
<li>Less Mystery. Features designed to take the mystery out of DOS.
Undelete, unformat,
online help.</li>
<li>Networking aware. Network support is key for corporations. Not only
can you install over a
network, but you can get network drivers out of conventional memory.</li>
<li>Solid. Huge beta test of 7,000 people. Is this the largest beta test
in the history of
software?</li>
<li>Standard. This is the new version of DOS, superseding all others. It's
better than both
3.3 and 4.01. Everyone is behind this version.</li>
<li>ROM. It is not available just yet, but we'll make a version for
laptops and embedded
systems. It will have special power management features.</li>
<li>Product Support. This is the first time Microsoft has offered free
technical support for
DOS.</li>
<li>International. Over a third of the beta testers were international.
International versions
in 9 languages will ship within three months.</li></ul>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p6<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P06
<hr />
</sub>
<ul><li>Q-BASIC. This is a point of differentiation for MS-DOS 5 and
a selling point for
power users</li>
<li>Windows. MS-DOS is the basis for Windows today. Microsoft designed
this to be the
best DOS for DOS applications running under
Windows.</li></ul></p>
<p><u>PC Manufacturers (OEM)</u></p>
<p>There are too many OEMs to address personally or even for the audience
to absorb; however,
we can address the general message of overwhelming support. OEMs are key to the
success of
DOS. OEMs have sold 60 million copies to date. &quot;All&quot; of them
are signed up to sell version 5.0.</p>
<ul><li>OEM representatives in audience as guests.
<li>Hang banners in party and/or theater</li>
<li>Bursting press kit of OEM releases</li>
<li>Key video message is OEM support.</li>
<li>Word search puzzle on OEM press kits. Can the guests find all the
MS-DOS 5.0 OEMs names?</li>
<li>Provide a list of all OEMs and a Microsoft summary press release to
the press</li>
<li>OEMs wear special name tags tied to the word search puzzle on the
press kits</li>
<li>Hardware boxes could line the walls, floor to ceiling, act as tables,
chairs, etc.</li></ul></p>
<p><u>IBM</u></p>
<p>IBM is an important partner. We assume they play a special role in this
announcement. We
cannot foresee whether or not they will still be willing, excited participants
come June.</p>
<ul><li>This is a joint announcement with IBM, but invitations come
from Microsoft.</li>
<li>Video content reinforces role of IBM</li>
<li>IBM executive pairs with Bill on stage</li>
<li>Executive press Q&amp;A with IBM after
event</li></ul></p>
<p><u>ISV</u></p>
<p>Some ISVs (such as Symantec) will be have products available that are
especially designed for
MS-DOS 5.0.
<ul><li>We will accept press releases from these
vendors.</li></ul></p>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p7<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P07
<hr />
</sub>
<p><u>Customer commitment</u></p>
<p>This message can be best communicated to the press in other ways
besides the event itself.
Customer adoption is already happening. In fact, we should name corporations who
have
bought huge numbers of copies.
<ul><li>Beta tester corporations attend the event</li>
<li>Video content reinforces customers -- perhaps feature one.</li>
<li>Customers wear special name tages which designate them as
customers/beta testers so
press can find them.</li>
<li>Press materials will cite these 2-3 examples. Include a quote from a
happy customer.</li>
<li>Publish a list of large corporations who have already signed
on</li>
<li>Provide <i>PC Week, Infoworld</i> and
<i>Computerworld</i> with &quot;happy&quot; beta testers to
call</li>
<li>Follow up a month after the event announcing new large installations
of MS-DOS 5.0.</li></ul></p>
<p><u>Reseller commitment</u></p>
<p>Dealers are key to the success of the upgrade. Retail upgrade makes the
upgrade easy. There is
one system with two different installation flavors. One box upgrades any DOS
machine and
even preserves the value-added that an OEM may have included.</p>
<ul><li>Reseller commitment and upgrade message is reinforced in
video.</li>
<li>Invite large volume dealers to the event as guests.</li>
<li>Dealers issue press releases</li>
<li>Upgrade clearly distinguished in Microsoft press
materials.</li>
<li>Include a dealer quote in the Microsoft press
release</li></ul></p>
<sub>
To: ax3[?] From: MICROSOFT CORPERATION [sic] 3-29-91 10:30 AM p8<br>
03.29.91 10:59 AM - THE WAGGENER GROUP P08
<hr />
</sub>
<p>Appendix B</p>
<p>EXHIBIT AREA: STATIONS</p>
<p>These stations may include:
<ul><li>MS-DOS 1.0 -- First operating system on IBM PC. Highlight
what hardware it
was designed for. Include an original IBM PC.</li>
<ul><li>Contrast that (i.e. no hard disk support) to the type of
hardware
MS-DOS (i.e. version 5.0 has huge hard disk support, no need for
share, etc.) is used on today.</li>
<li>Compare utility tools to undelete/unformat used
today.</li></ul>
<li>MS-DOS 2.x -- Support for hierarchical files and hard
disks.</li>
<ul><li>Detail how version 5 handles that same task
better/differently
(i.e. not only does version 5.0 have hierarchical files, it allows
you to search for files through the entire hard disk). Include a
disk drive or application relevant to the time.</li>
<li>Compare size of beta program with 7,000 testers
today.</li></ul>
<li>MS-DOS 3.x -- Networks, foreign characters.</li>
<ul><li>Compare to how version 5.0 will be available in 9 languages
in
three months.</li>
<li>memory management means network drivers are out of the way,
etc.</li>
<li>Ease of installation of DOS 5, even over a
network.</li></ul>
<li>Why DOS evolved. Focus on the market focus changes that impacted
version 3,
how DOS remains resilient. Feature oriented.
<ul><li>Show applications as they have grown bigger and fuller
featured.
Mention how memory management is now a big issue.</li>
<li>Hardware has changed. Laptops. MS offering DOS 5 in
ROM.</li></ul>
<li>Upgrade opportunity. Taking a new focus with version 5 in
distribution.
<ul><li>New installation makes it easy.</li>
<li>Product support for the first time
(&quot;free&quot;)</li></ul>
<li>Customer adoption. Now that MS-DOS is available both OEM and Upgrade,
talk
about &quot;how to get it.&quot;</li>
<ul><li>How this version surpasses all others. Perhaps include
happy beta tester quotes.</li>
<li>Show visual of two ways to buy DOS 5 -- OEMs and Upgrade.</li>
<li>Summarize with the version superseding all
others.</li></ul>
</ul></p>
</body>
</html>

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[ Reply to This | Parent | # ]

PX00665
Authored by: The Cornishman on Tuesday, August 14 2012 @ 03:02 AM EDT

I posted a transcript for PX00665 in Jan 2011, but it is not yet included in the transcripts page. Let me know if a repost or revision is required.

Original post

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[ Reply to This | Parent | # ]

Comes 0653 (partial) follows
Authored by: The Cornishman on Tuesday, August 14 2012 @ 03:16 AM EDT

Ref: Abstract posting

The 0653 entry on the transcripts page ( here) is a brief note, on account of the illegibility of large parts of the exhibit.

My next post is a more extensive, but still somewhat incomplete, marked up transcript of PLEX0653.pdf

Jonathan

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Comes 0653 (sheets 002-014)
Authored by: The Cornishman on Tuesday, August 14 2012 @ 03:39 AM EDT
<html>
<head>
<title>Plaintiff's Exhibit 653 Comes v. Microsoft (sheets
002-014)</title>
<!--transcribed from PLEX0653.pdf January 2011 -->
</head>
<body>
<sub>08/26/98 WED 07:48 FAX 2062819882 SUMMIT LAW GROUP [sheet]
002<hr/></sub>
<table border="0" cellpadding="10">
<tr>
<td>To:</td>
<td>Jeff Lunn</td>
<td>cc:</td>
<td>Bernard Verges</td>
</tr>
<tr>
<td></td>
<td>Jochen Hank</td>
<td></td>
<td>Christian Wedell</td>
</tr>
<td>From:</td>
<td>Manfred Schindler</td>
<td></td>
<td></td>
</tr>
</table>

<table border="1">
<tr><td style="text-align:center"><h1>MS-GmbH OEM
Report - April 1991</h1></td></tr>
</table>
<p>Royalty Revenues are again below forecast, we are short of roughly
$820k. Due to an early closing of books on April 26, we have not been able to
bill VOBIS $700k upon First Customer Shipment Notice. Also it looks like Siemens
Nixdorf has now problems in filing their royalty reports under the XENIX
agreement on time which made it impossible to bill $270k. However because of the
signed agreement with Schmitt Computer (volume $2.575m p.a.) we will exceed
budget by 5% ($20m) by end of FY91.</p>
<p>Packaged DOS business has not recovered from last month (March: 27,217
copies shipped, April: 25,459). Order entry however is back on 28,512 copies
from 21,725 in March. But, there is no enthusiasm from our top
customers.</p>
<p>Market - PC sales of last 3 months is developing slower than expected.
On the other hand, VOBIS and Commodore claim that they had no slow-down in
April, which is a sign that the market is changing its structure. As the dealer
channel is the crucial factor, and OEMs fight hard for more influence of their
dealers, it is hard to predict how the market develops further. The widely
shared opinion is that growth continues, however it is slower than expected in
the first months. A stagnation however seems to be far away. Considering
seasonal effects PC sales in Q4 will not exceed Q3 (both FY91)</p>
<p>Siemens Nixdorf Informationssysteme AG (SNI) - still struggling with
the merger. PC sales has not yet recovered after the sharp decline in Q2FY.
Their main activities are still concerning the merger of both companies. So,
communications channels had to be set up between Paderborn and Augsburg which
took much longer than expected. The competition in the sales field from former
times is still there and causes a lot of tension. "Synergie at work"
will take longer than expected until its implementation.</p>
<p>Schneider Rundfunkwerke - is eager to have DOS 5 shipping as early as
possible. This is intended to win back the lost ground in the PC
market.</p>
<p>VOBIS - is just claiming a good PC sale in April. There was no better
communication because of Lieven's (GM of VOBIS) Easter vacation.</p>
<p>New Business signed (by customer)</p>
<table border="1" cellpadding="10">
<tr>
<td>Company</td>
<td>Products</td>
<td>ann. volumes</td>
<td>Comments</td>
</tr>
<tr>
<td>Schmitt Computer</td>
<td>DOS 5/Shell,<br>Windows/Works</td>
<td>$2,575k</td>
<td>Standard C&amp;T</td>
</tr>
<tr>
<td>BEC Computer</td>
<td>DOS 5/Shell</td>
<td>$282k</td>
<td>Standard C&amp;T</td>
</tr>
<tr>
<td>Sander Computer</td>
<td>DOS5/Shell/Window</td>
<td>$106k</td>
<td>Standard C&amp;T</td>
</tr>
<tr>
<td></td>
<td style="text-align:right">Total p.a.:</td>
<td>$2,963k</td>
<td></td>
</tr>
</table>
<p>IBM Germany - Distribution Marketing is not interested in segmenting
the market in IBM and Microsoft. Although they focus on OS/2, they also
understand that on mid-range computer systems Windows is the defacto standard
where SAA compliance is not needed. The difficulty is that IBM is not sure what
to tell the market. The old image of Microsoft the enemy is regretfully up
again.</p>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:48 FAX 2062819882 SUMMIT LAW GROUP [sheet]
003<hr/></sub>
<h3>Threats</h3>
<p>Works from OEM - we contacted Commodore. They claimed that a few of
their largest dealers unbundle Works from the computer systems. Commodore will
write a letter to them, saying the dealer has to cease unbundling Works or they
will be charged a fine of $100k. We follow up with them.</p>
<h2>OEM Financial</h2>
<table border="1" cellpadding="5">
<tr>
<th>Royalties</th>
<th>month</th>
<th>budget</th>
<th>% budget</th>
<th>ytd</th>
<th>ytd budget</th>
<th>% of budget</th>
</tr>
<tr>
<th>actual</th>
<td>$963</td>
<td>$2,433</td>
<td>40%</td>
<td>$13,155</td>
<td>$16,299</td>
<td>81%</td>
</tr>
<tr>
<th>Forecast:</th>
</tr>
<tr>
<th>month + 1</th>
<td>$1,600</td>
<td>$1,417</td>
<td>113%</td>
<td>$14755</td>
<td>$17,716</td>
<td>83%</td>
</tr>
<tr>
<th>month + 2</th>
<td>$5,300</td>
<td>$1,351</td>
<td>392%</td>
<td>$20,055</td>
<td>$19,067</td>
<td>105%</td>
</tr>
<tr>
<th>month + 3</th>
<td>$20</td>
<td>$0</td>
<td>#DIV/0!</td>
<td>$20,075</td>
<td>$0</td>
<td>#DIV/0!</td>
</tr>
<tr>
</tr>
<tr>
<th>PackDOS</th>
<th>month</th>
<th>budget</th>
<th>% budget</th>
<th>ytd</th>
<th>ytd budget</th>
<th>% of budget</th>
</tr>
<tr>
<th>Revenue</th>
<td>DM 2,647</td>
<td>DM 2,105</td>
<td>126%</td>
<td>DM 24,766</td>
<td>DM 19,045</td>
<td>130%</td>
</tr>
<tr>
<th>Units</th>
<td>25,459</td>
<td>15,559</td>
<td>164%</td>
<td>228,126</td>
<td>140,787</td>
<td>162%</td>
</tr>
</table>
<p></p>
<p>40 active license agreements, 191 active Packaged DOS agreements, 62 to
be renewed.</p>
<p>Royalty Business</p>
<p>With having signed the large license agreement with Schmitt
Computersysteme, volume $2.575m p.a., it is easier to exceed the FY budget by
5%. There are still a number of amendments and license agreements to be
prepared, but the main contracts with the most financial impact are done. It
hurts that we have not been able to bill VOBIS the $700k I forecasted, even the
First Customer Shipment Notice arrived too late after closing the books on April
26.</p>
<p>In April we have to put more pressure on getting royalty reports and
First Customer Shipment Notices in, but there is no severe danger for FY's
revenue situation.
<p>Packaged MS-DOS Business</p>
<p>It looks like the market finds its average PackDOS rate of 25,000 to
30,000 packages a month. This is a clear sign of slower development. The major
issue to work on is to raise the penetration which requires much more account
mgr work. Also, converting customers to royalty licenses turned out to be
success in means of raising the penetration. A DOS/Windows license is attractive
even for PC vendors who ship a few thousands PCs per year.</p>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:49 FAX 2062819882 SUMMIT LAW GROUP [sheet]
004<hr/></sub>
<h3>Account Status Changes</h3>
<h4>Siemens-Nixdorf Informationssysteme AG (SNI)</h4>
<p>License Agreements<br>Cleaning up and including correct royalty
reporting is still going on. The next amendment to the DOS,OS/2 contract is in
work for adding CD-ROM and some cosmetics.<p>
<p>OS/2 - IBM expanded their offers to SNI for a direct license for OS/2.
SNI refused this because they need adaptation layers and support that cannot be
obtained from IBM.</p>
<p>Documentation - we are trying hard to shorten the time for preparing
documentation. D___y [illegible] might not be the ultimate choice because SNI
has to use own printers.</p>
<p>Next steps<ul>
<li>make sure SNI ships DOS 5 in June, shorten the leadtime for
documentation</li>
<li>get the remaining license agreement work done (clean-up with other
Siemens agreements, royalty reports)</li>
<li>improve communication to R&amp;D and product planning in Paderborn
and in Augsburg</li>
<li>establish higher involvement from SNI in new MS
developments</li>
<li>watch their RISC activities and make them committed to follow our RISC
designs.</li></ul></p>
<h4>Schneider Rundfunkwerke</h4>
<p>License Agreement<br>An amendment is in preparation for adding
Shell. The sideletter they sent along with their contract was not agreed between
both parties and is under rework. This should be finished within the next months
and is not yet a threat.<p>
<p>DOS5<br>Schneider is eager to get the German version out in June.
This can be accomplished if we download the documentation from Redmond to a GmbH
server and prepare a copy for Schneider.</p>
<p>Business<br>They are going to pop-out new low-price computer
sytems. This together with the early availability of DOS 5 is considered
important in order to win back lost market share.</p>
<p>Next steps<ul>
<li>solve the legal problems with the side letter and get it
signed</li>
<li>get in touch with the new marketing and sales people and explain our
systems strategy</li>
<li>see Bernhard Schneider for an update on business
strategies.</li>
<li>prepare the amendment for including the DOS 5
shell</li></ul></p>
<h4>VOBIS</h4>
<p>DOS 5, Windows, Works<br>We are working with them on Works and
Windows and try hard to have VOBIS announce availability of DOS 5 in June. As
Lieven was on vacation for almost 3 weeks there was not much progress in this
area.</p>
<p>However it pleased him that we invited him to Munich for a thorough
market review with Tom Gemmel. He will come and we will raise the DOS 5 issue
again.</p>
<p>Next steps<ul>
<li>gain influence on their Windows and Works offering, involve our
product marketing people</li>
<li>work with VOBIS to promote DOS 5 from announcement date
on</li></ul></p>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:49 FAX 2062819882 SUMMIT LAW GROUP [sheet]
005<hr/></sub>
<h4>Aquarius</h4>
<p>As they want to ship DOS 5 as early as possible we suggested to sign
the contract and work on the Russian DOS license issue and on reduction of the
minimum commitment later on; this will be included by an amendment. They said
the license agreement has been signed but it has not arrived at MS
GmbH.</p>
<p>Next steps<ul>
<li>get the signed licence agreement over to Redmond</li>
<li>provide best support so that German DOS 5 ships as early as possible
(end of June?)</li>
<li>work on the two remaining issues and include them in an
amendment</li></ul></p>
<h4>Peacock</h4>
<p>A new license agreement has been proposed after expiration of the
recent one. Some minor issues have still to be negotiated. Peacock wants to
commit 50,000 computer systems which looks too agressive considering their
shipment history which is in the range of 25,000 p.a.</p>
<p>Next steps<ul>
<li>prepare the licence agreement and get it signed by mid of May
(latest)</li></ul></p>
<h4>Schmitt Computersysteme</h4>
<p>After consulting a lawyer for final questions they signed the license
agreement to standard conditions for a period of 1 year, minimum commitment
$2,575,000. Products: DOS 5, Shell, Windows and Works. Competing with VOBIS,
they are targeting 70,000 computer systems over the next 12 months.</p>
<p>Mr. Schmitt is looking forward to join in our OEM-Briefing in Cannes
and our DOS5 announcement in New York and Brussels.</p>
<p>They showed interest in 10,000 black Ball Point Mice for their black
notebook computers but we have not been able to propose a deal with
them.<p>
<p>Next steps<ul>
<li>make sure the license agreement gets executed</li>
<li>have DOS 5 shipped as early as
possible</li></ul></p>
<hr />
<h4>IBM</h4>
<p>The Product Marketing people that have been brought in January consider
Microsoft and Windows enemies. This means, the customer relations has to be
revamped at first. In parallel to that we will participate in the IBM System
Center Seminar that &quot;brain-washes&quot; all first-tier dealers. We
will hold a speech on our systems strategy before Novell will pitch their story
and will participate in a panel discussion. In addition to that we have arranged
a little booth for demoing OS/2 and Windows apps.<p>
<p>Next steps<ul>
<li>rework the relation to the PM people</li>
<li>have a successful participation in the System Center event</li>
<li>arrange high-level manager meetings</li></ul></p>
<hr />
<h3>Packaged Product Business</h3>
<p>Packaged DOS - There is still an unexpected high gap between forecast
and actual order entry. Since the market showed a slow-down of PC sales, the PC
vendors face difficulties in keeping their forecasts. Considering the soon
availability of DOS 5 we have to make sure that we run out of stock before DOS 5
can be shipped.<p>
<p>OEM Mice - We have to work on a more reliable product forecast with our
customers.</p>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:49 FAX 2062819882 SUMMIT LAW GROUP [sheet]
006<hr/></sub>
<h2>Review of last month goals</h2>
<h3>April</h3>
<h4>Siemens-Nixdorf Informationssysteme AG</h4>
<table border="0">
<tr>
<td>-&nbsp;keep Comm Server and SQL Server in evaluation and start
license negotiations</td>
<td>delayed</td>
</tr>
<tr>
<td>-&nbsp;define a cooperation project between SNI and
MS</td>
<td>not yet</td>
</tr>
<tr>
<td>-&nbsp;clean-up all licence issues</td>
<td>ongoing</td>
</tr>
<tr>
<td>-&nbsp;arrange a strategy briefing for SNI sales
force</td>
<td>not yet</td>
</tr>
</table>
<h4>VOBIS</h4>
<table border="0">
<tr>
<td>-&nbsp;initiate marketing cooperation for Works and
Windows</td>
<td>in work</td>
</tr>
<tr>
<td>-&nbsp;keep them testing DOS 5</td>
<td>on going</td>
</tr>
</table>
<h4>DOS 5 licenses status</h4>
<table border="0">
<tr>
<td>-&nbsp;have 80% of all DOS agreements signed for DOS
5</td>
<td>done</td>
</tr>
</table>
<h4>Packaged MS-DOS</h4>
<table border="0">
<tr>
<td>-&nbsp;keep DOS 4 and 3 sales going and maximize DOS/Win combo
sale</td>
<td>partly</td>
</tr>
<tr>
<td>-&nbsp;get a German DOS 5 and Windows combo prepared for
August</td>
<td>in work</td>
</tr>
<tr>
<td>-&nbsp;update all contracts so that DOS 5 can be ordered in
May</td>
<td>-</td>
</tr>
<tr>
<td>-&nbsp;have Schmitt Computersysteme converted to royalty, have
the license agreement signed and executed</td>
<td>done</td>
</tr>
</table>
<hr />
<h3>Sales Calls</h3>
<table border="1" cellpadding="5">
<tr>
<td>Account Manager</td>
<td>Calls</td>
<td>Work<br>days</td>
<td>active %</td>
<td>Calls/<br>head</td>
<td>Comments</td>
</tr>
<tr>
<td>Manfred Schindler</td>
<td>17</td>
<td>21</td>
<td>100%</td>
<td>17</td>
<td></td>
</tr>
<tr>
<td>Jaap van Arkel</td>
<td>21</td>
<td>19</td>
<td>90%</td>
<td>23</td>
<td>2 days on vacation</td>
</tr>
<tr>
<td>Michael Rohrbuber</td>
<td>22</td>
<td>21</td>
<td>100%</td>
<td>22</td>
<td></td>
</tr>
<tr>
<td>Michael John</td>
<td>17</td>
<td>21</td>
<td>100%</td>
<td>17</td>
<td></td>
</tr>
<tr>
<td>Oliver Seitz</td>
<td>9</td>
<td>15</td>
<td>71%</td>
<td>13</td>
<td>6 days vacation</td>
</tr>
<tr>
<td>Total</td>
<td>86</td>
<td>97</td>
<td>82%</td>
<td>105</td>
<td>21 workdays</td>
</tr>
</table>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:49 FAX 2062819882 SUMMIT LAW GROUP [sheet]
007<hr/></sub>
<h2>3-Month goals</h2>
<h3>May</h3>
<h4>Siemens-Nixdorf Informationssysteme AG</h4>
<ul>
<li>start licence negotiations on Comm Server and SQL Server<li>
<li>pursue Comm Server and SQL Server</li>
<li>have SNI prepared for shipping DOS 5 in June</li>
</ul>
<h4>VOBIS</h4>
<ul>
<li>get DOS 5 prepared for manufacturing</li>
</ul>
<h4>Schneider Rundfunkwerke</h4>
<ul><li>get DOS 5 prepared for shipping ASAP</li></ul>
<h4>European OEM Briefing</h4>
<ul>
<li>have all top OEMs attend</li>
<li>and exceed 30 seats</li>
</ul>
<h4>Packaged MS-DOS</h4>
<ul><li>keep DOS 4 and 3 sales going and maximize DOS/Win combo sale
(no pre-announcement)</li></ul>
<h3>June</h3>
<h4>Siemens-Nixdorf Informationssysteme AG</h4>
<ul>
<li>pursue Comm Server and SQL Server</li>
<li>get DOS 5 shipping</li>
</ul>
<h4>VOBIS</h4>
<ul>
<li>get DOS 5 prepared for manufacturing</li>
<li>have them make a public statement re DOS 5</li>
</ul>
<h4>Packaged MS-DOS</h4>
<ul><li>have all customers switch to DOS 5</li></ul>
<h3>July</h3>
<h4>Siemens-Nixdorf Informationssysteme AG</h4>
<ul>
<li>pursue Comm Server and SQL Server</li>
</ul>
<h4>VOBIS</h4>
<ul>
<li>get DOS 5 prepared for manufacturing</li>
</ul>
<h4>Schneider Rundfunkwerke</h4>
<ul><li>have 100% of all DOS agreements signed for DOS
5</li></ul>
<h4>Packaged MS-DOS</h4>
<ul><li>have all customers switch to DOS 5</li></ul>
<p style="text-align:center">MICROSOFT
CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:50 FAX 2062819882 SUMMIT LAW GROUP [sheet]
008<hr/></sub>
<table frame=border cellpadding="5">
<tr>
<td>To:</td>
<td>Joachim Kempin</td>
</tr>
<tr>
<td>From:</td>
<td>Richard Fade</td>
</tr>
<tr>
<td>Date:</td>
<td>May 22, 1991</td>
</tr>
<tr>
<td>Subject:</td>
<td>April 1991 Domestic OEM Status Report</td>
</tr>
<tr>
<td>cc:</td>
<td>John Jenkins, Ted Hannum, Mark Chestnut, George Downing, Kathleen
Graves, Peter Braman,
Mike Murray, Paul Maritz, Steve Ballmer, Carl Stork, Bill Miller, Brad
Silverberg, Neil Miller</td>
</tr>
</table>
<p><u>REVENUE</u></p>
<p>April revenues were $19M vs budget of $23M, Q4 revenue the same, YTD
gross revenue is $140.4M vs budget of $136.9M. Forecast for Q4 revenue is $45.7M
(non IBM) plus $12M in IBM revenues for a Q4 total of $57.7M vs budget of
$42.7M. FY91 gross revenue will be $192.3M vs budget of $156.6M, a $41M increase
over FY90. If IBM windfall revenues are subtracted the increase would be
approximately $22M.</p>
<table frame="border" cellpadding="10">
<tr><td><u>NEW BUSINESS</u></td></tr>
<tr>
<td><u>Account</td>
<td><u>Product</u></td>
<td><u>Comments</u></td>
</tr>
<tr>
<td>AT&amp;T</td>
<td>DOS 5.0 OS/2 1.3</td>
<td>Amendment, no $$</td>
</tr>
<tr>
<td>AT&amp;T</td>
<td>Windows Productivity Pack</td>
<td>$4/system on laptops</td>
</tr>
<tr>
<td>AT&amp;T</td>
<td>LM/UNIX Dev./Licensing Agrmnt</td>
<td>Mixed royalty schedule</td>
</tr>
<tr>
<td>CompuAdd</td>
<td>Windows, Windows Prod. Pack</td>
<td>Signed up for another year + WPP</td>
</tr>
<tr>
<td>Wang</td>
<td>DOS 5.0</td>
<td>First DOS roy increase since 1982</td>
</tr>
<tr>
<td>Commodore</td>
<td>DOS/Windows/Works</td>
<td>$5.8M, 3 years</td>
</tr>
<tr>
<td>Intel</td>
<td>Flash File System</td>
<td>$2.00/copy</td>
</tr>
<tr>
<td>Dell</td>
<td>Win 3.0, DOS 5.0</td>
<td>$33 per processor - add. 2 years</td>
</tr>
<tr>
<td>Dell</td>
<td>Mouse</td>
<td>$19 per unit</td>
</tr>
<tr>
<td>NCR</td>
<td>DOS 5.0</td>
<td>Expanded per sys language</td>
</tr>
<tr>
<td>Tandon</td>
<td>DOS 5.0</td>
<td>Royalty uplift on 386 systems</td>
</tr>
<tr>
<td>AST</td>
<td>DOS/Windows/OS/2/Mouse</td>
<td>3 years, $19m</td>
</tr>
<tr>
<td>Alloy Computers</td>
<td>DOS</td>
<td>2 years, $288K</td>
</tr>
<tr>
<td>DAK Industries</td>
<td>WinWord</td>
<td>1 year, $2.75M</td>
</tr>
<tr>
<td>Insignia</td>
<td>DOS 3.3, 4.01, 5.0 ($10-$28)</td>
<td>New License</td>
</tr>
<tr>
<td>Texas Instruments</td>
<td>DOS 5.0</td>
</tr>
</table>
<p><u>NEWS</u></p>
<p>AT&amp;T announced their new Safari notebook computer and have had
great reviews. Windows 3 and Windows Productivity Pack bundled!</p>
<p>Tandy decided to ship DOS 5.0 with every PC that does not have an
earlier version of DOS in ROM.</p>
<p>Everex releases two new 486SX systems with shipments beginning this
month.</p>
<p>Wang reports another quarterly loss of $48.9M.</p>
<p>Commodore had another very good quarter. EPS up from $.01 to $.32, net
income for quarter was $1,400,000 including an extraordinary charge of
$0.2M</p>
<p>NetFRAME had their best quarter ever. Everent is doing very well for
them and Olivetti continues to purchase machines. Anticipate profitability in
the next quarter or two.</p>
<p style="text-align:right">X 190927</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:50 FAX 2062819882 SUMMIT LAW GROUP [sheet]
009<hr/></sub>
<p>NetFRAME will be actively pursuing relationships with applications
vendors and corresponding resellers to market and support integrated
solutions.</p>
<p>Compaq announced their new pricing model. They have reduced their SRP
from 8% to 34% depending on the system. In conjunction with their SRP reduction,
they have reduced their dealer discount from about 40% to 30%. This pricing
change is in reaction to the competitive pricing advertisements that Dell and
others are using against Compaq.</p>
<p>NCR reports record first quarter revenues of $1,369M with strong
international orders, but earnings per share and net income declined. They also
posted record orders for small computer systems/workstations.</p>
<p>HP announces the IIIP at $1595 SRP which places it in a good position
between the III and IIP, its predecessor.</p>
<p>Results of HP's workstation announcements for the 700 series using PA90
have been outstanding according to Bob Frankbenburg [sic]. This was Bob's last
connection with the network group as he has accepted a position under Dick
Hackborn handling PCG, CCD, Corvallis, and twisted LAN products.</p>
<p>Tandon in negotiation to buy &quot;PC Brand&quot; mail-order
firm to supplement their 50 person US direct sales force.</p>
<p>Annabook's announced their VAD relationship with MS for ROM DOS. There
was a press release in EE Times.</p>
<p>Gateway 2000 - SPAG has agreed to do a custom color mouse for Gateway
2000, should retain mouse business for FY92 although Logitech has made headway
into the account. Gateway is still our largest OEM Mouse shipper.</p>
<p>Texas Instruments confirmed executive review at Windows World will have
President of TI's Semiconductor division as well as VP levels on both sides. TI
will not in the foreseeable future ship product made by 3rd party OEM under
their name - project dropped due to quality concerns.</p>
<p><u>ISSUES</u></p>
<p>We need to decide the approach for PBU as Nancyn has done an excellent
job pushing business forward, we need to be as clear as possible as to what
specific actions are needed at this point.</p>
<p>AT&amp;T says Ballpoint is double the price of Logitech and other
vendor's products. Not interested.</p>
<p>GRID is developing two 386 GRiD Pads - one for Pen Point and one for
Pen Windows. The systems will be announced in 1992.</p>
<p>CompuAdd - Unhappy about MS plans for Soundboard offering</p>
<p>Wang - interested in Lan Manager FG; SMSD is pursing [sic]</p>
<p>BULL and Zenith are confused as to why the LM Strategic integrator plan
only addresses the US market. We need an international version of this
plan.</p>
<p>NetFRAME: Joint support plan.</p>
<p>Compaq/Rich Fricks Replacement - Finding a replacement for Rich is
challenging. PSS has not found any solid candidate yet.</p>
<p style="text-align:right">X 190928</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:51 FAX 2062819882 SUMMIT LAW GROUP [sheet]
010<hr/></sub>
<p>Compaq/Ballpoint Promotion - We have yet to see actual BallPoint
shipment numbers from Compaq. They are afraid that if we see what they have
actually shipped in the US, we will take away production that is committed to
Compaq.</p>
<p>Digital - In general, there has been an infrastructurre and focus
missing that allows to properly support Digital. This has manifested itself in
PSS, NBU, PR and various other organizations. The amount of internal
selling/&quot;awareness creation&quot; has been very cycle
intensive.</p>
<p>Tandem had a license for mail through Consumer Software who was bought
out by MS. They still want to distribute the product and are looking for a
vehicle to do this. We are in some conflict as to how to set them up, through
OEM or SMSO.</p>
<p>IBM is courting AST, (amongst others) to be the first tier of IBM
certified IBM OS/2 resellers. AST is submitting hardware to IBM for
certification.</p>
<p>NCR continues to push on workgroup product marketing efforts. Comm
Server product plans move further from NCR's original concept of the
product.</p>
<p>LM/X royalty payments due HP/CND.</p>
<p>AST wants a co-marketing arrangement between our companies. One
obstacle to this is MS' new policy not allowing anyone to use MS' logo. AST
learned about this new policy right before launching their server ad
campaign.</p>
<p>PBU - It has been extremely difficult to be proactive with customers
with the changes being considered for PBU. Currently, we don't even know whether
Trueimage will even exist next month. It is a very uncomfortable
situation.</p>
<p>HP PCG wants clear statement on MS' position on Os/2 2.0 vs.
Tiger.</p>
<p>Zeos is considering switching to Logitech for future MOuse purchases.
Price is the issue.</p>
<p>Distec is having cash flow problems which may negatively impact our PP
forecast.</p>
<p><u>PEOPLE</u>
<p>Gary Perez rejoined DOEM this past month in Kathleen's group. I believe
Gary will do a good job in his new role picking up established accounts from
Dave Wright. Dave will be focusing on TI, Gateway and Positive - three accounts
who have become significant revenue generators and need more
attention.</p>
<p>Greg Anderson in [sic] on target to join Kelly working the DEC account
the end of May and has already become active in learning the account and current
projects though he still reports to international operations.</p>
<p>Barry Spector will move to the new training position in Ron's
organization and take with him the April &quot;head&quot from the FY91
budget.</p>
<p>We close the year then, staffed to plan, with no significant positions
unfilled. The next challenge for the group will be replacing various positions
made open by the &quot;re-organization&quot;. This is significant if we
lose Larryed, Barryso and Jeffmo to positions in OEM marketing in July. We have
few resources to spare to replace them. This will be compounded by Doris and
Debbiell taking maternity leaves in July and August. We need to do some careful
planning today or we will find ourselves in a real &quot;crunch&quot;
for AM resources to manage the business this summer.
<p style="text-align:right">X 190929</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:51 FAX 2062819882 SUMMIT LAW GROUP [sheet]
011<hr/></sub>
<p><u>COMMENTS ON REVENUE</u></p>
<p>April revenues were strong with $3.7M more in IBM billings, IBM revenue
was $12M YTD at the close of Q3, I expect an additional $12M in revenues from
them in Q4. This is primarily NT and Windows &quot;flat fees&quot; plus
the OS/2 back royalties &quot;windfall&quot;. Business among other
customers for the quarter ended in March, appears to be stable but not growing.
Compaq has set expectations that their performance will be off this quarter,
many of our &quot;second tier&quot; accounts who have strong
distribution seem to be healthy. I will report sample systems shipments next
month.</p>
<p>FG DOS sales were off significantly for the first time this year,
coming in at 14K units. I attribute this primarily to zero units ordered by
Distec (typically 2-4K p/month) and our customers selling off their inventory in
anticipation of DOS 5. I expect June to be a banner month for FG DOS (V5.0).
this could fuel Q4 revenues beyond the $57M I have forecasted.</p>
<p>Overall business outlook is good, recent &quot;per system&quot;
MS-DOS and Windows licenses signed with DELL and AST will begin to provide
incremental revenue next quarter. The DAK Word for Windows license was signed,
DAK has also significantly increased their commitment to Windows. The pipeline
for new licenses looks promising. I am optimistic that the group could turn in
another $30-$40M in growth for FY92 given that the overall market stays at least
as healthy as it is today.</p>
<p><u>FG-DOS</u></p>
<table frame="border" cellpadding="10">
<tr>
<td></td>
<td style="text-align:center">April<br>Units</td>
<td style="text-align:center">%</td>
<td style="text-align:center">Q4<br>Units</td>
<td style="text-align:center">%</td>
<td style="text-align:center">FY91<br>Units</td>
<td style="text-align:center">%</td>
<td style="text-align:center">FY90</td>
</tr>
<tr>
<td>PP 3.3</td>
<td style="text-align:right">3,128</td>
<td style="text-align:right">22%</td>
<td style="text-align:right">3,128</td>
<td style="text-align:right">22%</td>
<td style="text-align:right">56,063</td>
<td style="text-align:right">27%</td>
<td></td>
</tr>
<tr>
<td>PP&nbsp;4.01&nbsp;(5&frac14;)</td>
<td style="text-align:right">7,368</td>
<td style="text-align:right">53%</td>
<td style="text-align:right">7,368</td>
<td style="text-align:right">53%</td>
<td style="text-align:right">113,971</td>
<td style="text-align:right">55%</td>
<td></td>
</tr>
<tr>
<td>PP 4.01 (3.5)</td>
<td style="text-align:right">3,444</td>
<td style="text-align:right">25%</td>
<td style="text-align:right">3,444</td>
<td style="text-align:right">25%</td>
<td style="text-align:right">39,079</td>
<td style="text-align:right">18%</td>
<td></td>
</tr>
<tr>
<td>Units of PP</td>
<td style="text-align:right">13,940</td>
<td style="text-align:right">100%</td>
<td style="text-align:right">13,940</td>
<td style="text-align:right">100%</td>
<td style="text-align:right">209,113</td>
<td style="text-align:right">100%</td>
<td style="text-align:right">228,107</td>
</tr>
<tr>
<td>Dollars of PP</td>
<td style="text-align:right">$717,050</td>
<td style="text-align:right"></td>
<td style="text-align:right">$717,050</td>
<td style="text-align:right"></td>
<td style="text-align:right">$10,652,041</td>
<td style="text-align:right"></td>
<td style="text-align:right">$11,624,039</td>
</tr>
<tr>
<td>Avg. Price</td>
<td style="text-align:right">$51.44</td>
<td style="text-align:right"></td>
<td style="text-align:right">$51.44</td>
<td style="text-align:right"></td>
<td style="text-align:right">$50.94</td>
<td style="text-align:right"></td>
<td style="text-align:right">$50.96</td>
</tr>
</table>
<p><u>LAPTOP WATCH</u></p>
<p>AT&amp;T announced a notebook laptop this month called the Safari
386NSX/20.<br>A slimline laptop will be announced in November. Pen-based
maybe in Q32CY92 [sic].</p>
<p>Wang now sells a TI 3000 machine under the TI logo.</p>
<p>ZDS to announce five new portables at Spring Comdex. Three will be
bundled with Windows.</p>
<p>Dell - sub notebook (11&times;7&times;1 1/4) in
Q4'91</p>
<p>Digital - the 386/SX machine sourced from Triumph/Adler will be
announced this month</p>
<p>NCR to announce their notebook offering in May (OEM'ed
product).</p>
<p style="text-align:right">X 190930</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:51 FAX 2062819882 SUMMIT LAW GROUP [sheet]
012<hr/></sub>
<p>HP Corvallis announced the 95LX Palmtop computer using MS-DOS and Lotus
1-2-3 along with other applets coded into ROM.</p>
<p>AST's notebook continues to sell well but the demand for product far
outpaces supply and I do not expect to receive a notebook product from AST for
quite awhile.</p>
<p><u>RISC WATCH</u></p>
<p>GRiD met with MIPS to develop a hardware strategy under ARC.</p>
<p>Continuing internal ZDS/BULL battle over MIPS development. ZDS likely
to begin a MIPS development effort. Bull has been told about Jazz, but not
ZDS.</p>
<p>CompuAdd - No SPARC machines sold to date.</p>
<p>Tandon states desire to stay with Soulborne SPARC clone for European
sales until they can get a MIPS based solution shipping then they will let the
customer decide which to purchase. They claim they need to offer their customers
a RISC solution now, so they need SPARC.</p>
<p style="text-align:right">X 190931</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:52 FAX 2062819882 SUMMIT LAW GROUP [sheet]
013<hr/></sub>
<p><u>DOS 5.0 WATCH</u></p>
<p>Status: P=Proposed N=Negotiation S=Signed N/A=Not Applicable<br>
Ship date is OAK+n days, i.e. 60, 30, etc<br>
DRI Threat is Y or N</p>
<table border="0" cellpadding="10">
<tr>
<td><u>Account</u></td>
<td><u>Status</u></td>
<td><u>Close Date</u></td>
<td><u>Ship Date</u></td>
<td><u>DRI Threat?</u></td>
</tr>
<tr>
<td>AT&amp;T</td>
<td>S</td>
<td>n/a</td>
<td>6/11</td>
<td>N</td>
</tr>
<tr>
<td>Tandy</td>
<td>S</td>
<td>4/16</td>
<td>6/11</td>
<td>N</td>
</tr>
<tr>
<td>ALR</td>
<td>P</td>
<td>unsure</td>
<td>unsure</td>
<td>Y</td>
</tr>
<tr>
<td>Everex</td>
<td>S</td>
<td>January</td>
<td>30</td>
<td>N</td>
</tr>
<tr>
<td>Wyse</td>
<td>S</td>
<td>February</td>
<td>30</td>
<td>N</td>
</tr>
<tr>
<td>CompuAdd</td>
<td>S</td>
<td>7/90</td>
<td>+30</td>
<td>N</td>
</tr>
<tr>
<td>Wang</td>
<td>S</td>
<td>4/91</td>
<td>+30</td>
<td>N</td>
</tr>
<tr>
<td>ZDS</td>
<td>S</td>
<td></td>
<td>July 1</td>
<td>N</td>
</tr>
<tr>
<td>Tandem</td>
<td>S</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Commodore</td>
<td>S</td>
<td>5/91</td>
<td>OAK+30</td>
<td>N</td>
</tr>
<tr>
<td>Phoenix</td>
<td>S</td>
<td>12/90</td>
<td>30</td>
<td>N</td>
</tr>
<tr>
<td>Intel</td>
<td>S</td>
<td>12/90</td>
<td>30</td>
<td>N</td>
</tr>
<tr>
<td>Compaq</td>
<td>S</td>
<td>9/90</td>
<td>30 or less</td>
<td>N</td>
</tr>
<tr>
<td>Dell</td>
<td>S</td>
<td></td>
<td>6/11</td>
<td>N</td>
</tr>
<tr>
<td>Digital</td>
<td>P</td>
<td>June</td>
<td>OEM ver. in CQ4'91</td>
<td>N</td>
</tr>
<tr>
<td>NCR</td>
<td>S</td>
<td>March</td>
<td>+60 days</td>
<td>N</td>
</tr>
<tr>
<td>Momenta</td>
<td>N</td>
<td>4/91</td>
<td>+120</td>
<td>N</td>
</tr>
<tr>
<td>Tandon</td>
<td>S</td>
<td>4/91</td>
<td>+30</td>
<td>N</td>
</tr>
<tr>
<td>Northgate</td>
<td>S</td>
<td>2/91</td>
<td>+30</td>
<td>N</td>
</tr>
<tr>
<td>AST</td>
<td>S</td>
<td>March</td>
<td>60</td>
<td>N</td>
</tr>
<tr>
<td>Atari</td>
<td>S</td>
<td>May</td>
<td>60</td>
<td>Y</td>
</tr>
<tr>
<td>Memorex-Telex</td>
<td>S</td>
<td>January</td>
<td>60</td>
<td>N</td>
</tr>
<tr>
<td>Data General</td>
<td>N</td>
<td>5/15</td>
<td>7</td>
<td>N</td>
</tr>
<tr>
<td>Positive</td>
<td>N/A</td>
<td>5/91</td>
<td></td>
<td>N</td>
</tr>
<tr>
<td>Win Labs</td>
<td>N</td>
<td>5/91</td>
<td>6/91</td>
<td>N</td>
</tr>
<tr>
<td>Sysorex</td>
<td>N</td>
<td>5/91</td>
<td></td>
<td>Y</td>
</tr>
<tr>
<td>Osicom</td>
<td>N</td>
<td>5/91</td>
<td></td>
<td>N</td>
</tr>
<tr>
<td>C3</td>
<td>N</td>
<td>5/91</td>
<td></td>
<td>N</td>
</tr>
<tr>
<td>Swan</td>
<td>N</td>
<td>5/91</td>
<td></td>
<td>?</td>
</tr>
<tr>
<td>DFI</td>
<td>N</td>
<td>6/91</td>
<td></td>
<td>N</td>
</tr>
<tr>
<td>Microstar</td>
<td>N</td>
<td>6/91</td>
<td></td>
<td>Y</td>
</tr>
</table>
<p><u>PRODUCT MARKETING FEEDBACK</u></p>
<p><u>Ballpoint</u><br>Is our product price competitive
with our competitors' offerings?</p>
<p><u>DOS</u><br>ROM DOS spec.</p>
<p><u>DOS 5.0</u><br>Tom Lennon's presentation to AST
was quite helpful.</p>
<p>Need separate ROM version kit as well as separate Flash Memory File
System kit for embedded OEMs. We need to improve the ROM DOS 5.0 kit so that we
do not lose another opportunity to DRI because of an inferior product. Spec
finally came with several holes.</p>
<p style="text-align:right">X 190932</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:52 FAX 2062819882 SUMMIT LAW GROUP [sheet]
014<hr/></sub>
<p><u>Flash Memory File System</u><br>Still not released
officially so that we can ship it to OEM customers.</p>
<p><u>Pen Windows</u><br>AST's interest in Pen Windows
was very high. Talks will begin.</p>
<p style="text-align:right">X 190933</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
</body>
</html>

---
(c) assigned to PJ

[ Reply to This | Parent | # ]

Comes 0653 (sheets 015-030)
Authored by: The Cornishman on Tuesday, August 14 2012 @ 03:47 AM EDT
<html>
<head>
<title>Plaintiff's Exhibit 653 Comes v. Microsoft (sheets
015-030)</title>
<!--transcribed from PLEX0653.pdf January 2011 -->
</head>
<body>
<sub>08/26/98 WED 07:52 FAX 2062819882 SUMMIT LAW GROUP [sheet]
015<hr/></sub>
[<i>Sheet 15 is an organization chart (rev 05/15/91) for the Microsoft
Domestic OEM Sales Team headed by Richard Fade, listing names, mailnames,
telephone extension numbers and mailpoints. It has not been transcribed in this
edition</i>]
<p style="text-align:right">X 190934</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:53 FAX 2062819882 SUMMIT LAW GROUP [sheet]
016<hr/></sub>
[<i>Sheet 16 is a table headed &quot;</i>MICROSOFT CORPORATION
DOMESTIC OEM REVENUE BY SALES TEAM, BY BUSINESS UNIT FOR THE MONTH OF APRIL 1991
(in thousands)<i>&quot;. The values in the table are mostly illegible
and transcription has not been attempted in this edition</i>]
<p style="text-align:right">X 190935</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:53 FAX 2062819882 SUMMIT LAW GROUP [sheet]
017<hr/></sub>
[<i>Sheet 17 is a table headed &quot;</i>MICROSOFT CORPORATION
DOMESTIC OEM REVENUE BY SALES TEAM, BY BUSINESS UNIT YEAR-TO-DATE AS OF APRIL
30, 1991 (in thousands)<i>&quot;. The values in the table are mostly
illegible and transcription has not been attempted in this edition</i>]
<p style="text-align:right">X 190936</p>
<p style="text-align:right">CONFIDENTIAL</p><hr />
<sub>08/26/98 WED 07:53 FAX 2062819882 SUMMIT LAW GROUP [sheet]
018<hr/></sub>
<p style="text-align:center">April Status Report</p>
<p style="text-align:center">European OEM Division</p>
<p style="text-align:center">Jeff Lunn</p>
<p style="text-align:center"><u>Table of
Contents</u></p>
<table cellpadding="5">
<tr><td>Revenue</td><td>3</td></tr>
<tr><td>New Business
Signed</td><td>3</td></tr>
<tr><td>New Business
Pending</td><td>3</td></tr>
<tr><td>News</td><td>3</td></tr>
<tr><td>People</td><td>4</td></tr>
<tr><td>Issues</td><td>4</td></tr>
<tr><td>DOS 5.0 Watch</td><td>4</td></tr>
<tr><td>Packaged DOS</td><td>4</td></tr>
<tr><td>RISC Watch</td><td>5</td></tr>
<tr><td>Product Marketing
Feedback</td><td>5</td></tr>
<tr><td>Product Support
Services</td><td>6</td></tr>
<tr><td>Account
Summaries</td><td>6</td></tr>
<tr><td>Attachment A - Revenue Performance
Statistics</td><td>9</td></tr>
<tr><td>Attachment B - DOS 5.0
Watch</td><td>11</td></tr>
<tr><td>Attachment C - Windows 3.0 License
Status</td><td>12</td></tr>
<tr><td>Attachment D - OS/2 1.21 Shipment
Status</td><td>13</td></tr>
<tr><td>Attachment E - European OEM Sales
Organization</td><td>14</td></tr>
</table>
<p style="text-align:right">X 190937</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>2</p><hr />
<sub>08/26/98 WED 07:54 FAX 2062819882 SUMMIT LAW GROUP [sheet]
019<hr/></sub>
<p style="text-align:center">April Status Report</p>
<p style="text-align:center">European OEM Division</p>
<p style="text-align:center">Jeff Lunn</p>
<table frame="border">
<tr><td>Revenue (see attachment A for
details)</td></tr>
</table>
<p>We had the usual first month deficit in April - $1M vs a budget of
$4.3M. This quarter will be strong like FYQ3 - I expect to finish FYQ4 with $15M
against a budget of $15.2M. This will give us a yearly total of $62M vs. budget
of 57.2M.</p>
<table frame="border">
<tr><td>New Business Signed</td></tr>
</table>
<table border="1" cellpadding="5">
<tr>
<td style="text-align:center">Account</td>
<td style="text-align:center">Product</td>
<td style="text-align:center">Comments</td>
</tr>
<tr>
<td>Amstrad</td>
<td>DOS 5.0</td>
<td>Amendment</td>
</tr>
<tr>
<td>Amstrad</td>
<td>Works 2.0</td>
<td>German bundle</td>
</tr>
<tr>
<td>Audio Development</td>
<td>OS/2 1.3</td>
<td>Amends Version 1.3 of OS/2</td>
</tr>
<tr>
<td>Banzai</td>
<td>OS/2 1.3</td>
<td>Amends Version 1.3 of OS/2</td>
</tr>
<tr>
<td>Jet[?] Data</td>
<td>OS/2 1.3</td>
<td>Amends Version 1.3 of OS/2</td>
</tr>
<tr>
<td>T[illegible] Data</td>
<td>DOS 5.0</td>
<td>Amendment</td>
</tr>
<tr>
<td>Phillips Electronics Ltd.</td>
<td>Windows 3.0/Dos 5.0</td>
<td>Amendment</td>
</tr>
<tr>
<td>Nokia Data</td>
<td>DOS 5.0</td>
<td>Amendment</td>
</tr>
<tr>
<td>Schmitt Computer</td>
<td>DOS 5.0; Shell; Win; Works</td>
<td>Convert from FGDOS; $2M/yr</td>
</tr>
<tr>
<td>BEC Computer</td>
<td>DOS 5.0; Shell</td>
<td></td>
</tr>
<tr>
<td>Sander Computer</td>
<td>DOS 5.0; Shell; Windows</td>
<td></td>
</tr>
<tr>
<td>Vobis Data</td>
<td>DOS 5.0/Win 3/Works</td>
<td>Biggest DRI conversion this decade</td>
</tr>
<tr>
<td>Olivetti Office</td>
<td>Trueimage</td>
<td>LOI signed</td>
</tr>
<tr>
<td>Unidata</td>
<td>DOS 5.0</td>
<td>License amendment signed</td>
</tr>
</table>
<p></p>
<table frame="border">
<tr><td>New Business Pending</td></tr>
</table><sub>[<i>Transcriber's note: consult original before
relying on values</i>]</sub>
<table border="1" cellpadding="5">
<tr>
<td style="text-align:center">Account</td>
<td style="text-align:center">Product</td>
<td style="text-align:center">Royalty</td>
<td style="text-align:center">Commit</td>
<td style="text-align:center">Close</td>
<td style="text-align:center">Chance</td>
</tr>
<tr>
<td>Phillips</td>
<td>MM Windows</td>
<td>$37.00</td>
<td>50,000</td>
<td>5/20</td>
<td>90%</td>
</tr>
<tr>
<td>Olivetti - U.S.</td>
<td>Arabic DOS</td>
<td>$55.00 [?]</td>
<td>5,000</td>
<td>6/1</td>
<td>30%</td>
</tr>
<tr>
<td>ICL</td>
<td>Windows 3.0</td>
<td>Guideline</td>
<td>50,000</td>
<td>6/91</td>
<td>80%</td>
</tr>
<tr>
<td>Amstrad</td>
<td>Windows 3.0</td>
<td>$7.50 [?]</td>
<td>$400K/Annum</td>
<td>6/91</td>
<td>90%</td>
</tr>
<tr>
<td>Apricot</td>
<td>New Contract</td>
<td>Various</td>
<td>$1.5M/Annum</td>
<td>6/91</td>
<td>100%</td>
</tr>
<tr>
<td>Viglen</td>
<td>Shell/Prod. Pack</td>
<td>Various</td>
<td>$106K/pa</td>
<td>6/1</td>
<td>90%</td>
</tr>
<tr>
<td>Data Pool</td>
<td>DOS5; Win 3;</td>
<td>Guideline</td>
<td>6K per year</td>
<td>5/31</td>
<td>50%</td>
</tr>
<tr>
<td>Digitermonica [?]</td>
<td>DOS 5; Win 3;</td>
<td>Guideline</td>
<td>2K per year</td>
<td>5/31</td>
<td>50%</td>
</tr>
<tr>
<td>Softcom</td>
<td>DOS 5 Royalty</td>
<td>Guideline</td>
<td>10K units/yr</td>
<td>5/31</td>
<td>50%</td>
</tr>
<tr>
<td>Executive [?]</td>
<td>DOS 5; Win3</td>
<td>Guideline</td>
<td>20Kunits/yr</td>
<td>5/31</td>
<td>50%</td>
</tr>
<tr>
<td>Tulip</td>
<td>LANMAN/COM</td>
<td>Guideline</td>
<td>$250K/yr</td>
<td>5/31</td>
<td>75%</td>
</tr>
</table>
<p></p>
<table frame="border">
<tr><td>News</td></tr>
</table>
<p>Amstrad fired 37 managers in keeping with their
&quot;Sugarlump&quot; lean and mean strategy. Unfortunately, they fired
Peter Roback, one of our few allies in the account.<br>
ICL awarded The Queen's Industry Award for Export.<br>
EC President Jaques Delors chaired a meeting with 5 heads of EC companies -
Phillips, SNI, Bull, Olivetti and SGS Thompson. Basic purpose was to investigate
ways to prevent the Japanese from taking over Europe.<br>
Siemens to invest in 20% of Goupil [?] in an &quot;industrial
agreement&quot;.</p>
<p style="text-align:right">X 190938</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>3</p><hr />
<sub>08/26/98 WED 07:54 FAX 2062819882 SUMMIT LAW GROUP [sheet]
020<hr/></sub>
<table frame="border">
<tr><td>People</td></tr>
</table>
<p>Ellen Taylor joined LTD as OEM Sales Associate responsible for FG DOS
sales.<br>
Mauritzio making good progress on hiring an Olivetti account manager. Has
nrrowed [sic] decision down to 2 candidates.</p>
<p></p>
<table frame="border">
<tr><td>Issues</td></tr>
</table>
<p>We need to develop an OEM policy on distribution of multiple language
versions of Windows (or other products for that matter) on CDROM. I am seeing
more and more interest by OEMs in this. We need legal as well as a clear OEM
pricing policy in order to handle this.<br>
I am seeing more and more pressure by OEMs with low end 286 platforms to reduce
DOS royalties in order to compete with DRI. DRI has demonstrated that they are
an acceptable choice for machines below the SX, and are slowly convincing OEMs
that they are paying MS too much money for 8086 [?] and 286 machines where DOS
5.0 has no real compelling features over DR DOS for the first time
user.<br>
Dr. Bodo, VP of Product Planning - SNI, visited JK in April. He confirmed IBM's
hostility against anything other than OS/2 on the desktop. Says IBM using the
usual FUD keep their customers on their platforms. Unfortunately, IBM's German
customers are listening to this. He sees them building great PC to mainframe
features into OS/2 over time to keep it in the corporate environment. Bodo's
response is to go along with it on a demand basis, but is very defensive about
it. He even sees UNIX dissappearing [sic]. YES, this man was
&quot;the&quot; MR. UNIX guy for years. He will put his money for future
development into WIN, a &quot;winning segment&quot; as he calls it. They
can't make money on UNIX or OS/2 developments. Last, but not least, IBM has not
only offered to license OS/2, but a R6000 license as well to produce the chip
and systems. Looks like they are trying desperately to torpedo ACE.</p>
<table frame="border">
<tr><td>DOS 5.0 Watch</td></tr>
</table>
<p>Great progress in the last month for DOS 5.0 licenses - see attached
list.</p>
<p></p>
<table frame="border">
<tr><td>Packaged DOS</td></tr>
</table><sub>[<i>Transcriber's note: consult original before
relying on values</i>]</sub>
<table border="1" cellpadding="5">
<tr>
<td style="text-align:center">Subsidiary</td>
<td
style="text-align:center">April<br>Actual</td>
<td
style="text-align:center">April<br>Budget</td>
<td
style="text-align:center">FYQ4<br>Forecast</td>
<td style="text-align:center">FYQ4<br>Budget</td>
</tr>
<tr>
<td>MSAB</td>
<td style="text-align:right">2,395</td>
<td style="text-align:right">2,300</td>
<td style="text-align:right"></td>
<td style="text-align:right"></td>
</tr>
<tr>
<td>MSBV</td>
<td style="text-align:right">4,405</td>
<td style="text-align:right">1,821</td>
<td style="text-align:right">4,405</td>
<td style="text-align:right">[?] 2,283</td>
</tr>
<tr>
<td>MSGMBH</td>
<td style="text-align:right">25,459</td>
<td style="text-align:right">15,559</td>
<td style="text-align:right">79,949</td>
<td style="text-align:right">46,851</td>
</tr>
<tr>
<td>MSLTD</td>
<td style="text-align:right">5,279</td>
<td style="text-align:right">2,500</td>
<td style="text-align:right">10,000</td>
<td style="text-align:right">[?] 8,800</td>
</tr>
<tr>
<td>MSSARL</td>
<td style="text-align:right">5,419</td>
<td style="text-align:right">3,297</td>
<td style="text-align:right">14,542</td>
<td style="text-align:right">[?] 9,800</td>
</tr>
<tr>
<td>MSSPA
<td style="text-align:right">2,162</td>
<td style="text-align:right">1,607</td>
<td style="text-align:right">[?] 4,882</td>
<td style="text-align:right">[?] 4.861</td>
</tr>
<tr>
<td>MSSRL</td>
<td style="text-align:right">[?] 3,204</td>
<td style="text-align:right">1,500</td>
<td style="text-align:right">8,500</td>
<td style="text-align:right">[?] 6,800</td>
</tr>
<tr>
<td style="text-align:right">TOTAL</td>
<td style="text-align:right">48,323</td>
<td style="text-align:right">28,584</td>
<td style="text-align:right"></td>
<td style="text-align:right"></td>
</tr>
</table>
<p></p>
<p>Strong month all the way around for Europe - 171% of budget. Only GmbH
disappointed with results as they expected 30K units for the month. Can probably
attribute some of the slowdown to inventory reductions of 4.01 as well as good
conversions to royalty business (Schmitt a good example). AB says customers are
buying FG Windows with their FG DOS 50% of the time; LTD reports 27% penetration
of FG Windows (down from 32% last month). Strong sales volume in LTD attributed
to new price structure which is incenting some OEMs to include DOS for free with
their systems as well</p>
<p style="text-align:right">X 190939</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>4</p><hr />
<sub>08/26/98 WED 07:55 FAX 2062819882 SUMMIT LAW GROUP [sheet]
021<hr/></sub>
<p>as reaching a broader base of smaller OEMs who previously could not
afford to buy DOS for their systems.<br>
Piracy and grey market continue to be greatest competitor - especially from the
far east.<br>
SARL putting on a big push to increase awareness of FG market in France. They
have talked to close to 80% of the companies that advertise in the computer
magazines.<br>
SPA says they need radical price decreases at entry level volumes to win
business of price conscious OEMs in his area. Maybe a stripped version of DOS at
lower prices? This has come up before.<br>
SRL reported record month in new orders for April. 19 new contracts. Great job
by Beatriz.</p>
<p></p>
<table frame="border">
<tr><td>RISC Watch</td></tr>
</table>
OEM reaction to ACE announcement ranged from nothing to an Apricot press release
after the ACE announcement supporting Intel. ICL also showing interest in ACE
group, but their role with MIPS is still unclear.</p>
<p></p>
<table frame="border">
<tr><td>Product Marketing Feedback</td></tr>
</table>
<p><u><i>DOS 5.0</i></u><br>OAK
documentation for English came in US Ventura; could not be read by NL Ventura.
Seems like a good time to switch to Winword!</p>
<p>Davebr has an interesting conversation with a DRI employee at a recent
computer show. DRI said they felt they had a 20% market share of a 275K unit
packaged DOS market in the UK. DRI also expects to ship 150K units throughout
Europe withmost [sic] of the volume in Germany (Vobis?). The Vobis numbers sound
reasonable without knowing about the MSDOS license, but the UK numbrs are much
too high. Davebr estimates UK market size to be closer to 125K units/yr. Also,
DR DOS 5.0 scheduled to ship &quot;late&quot; this year, but no one has
seen the beta yet.</p>
<p><u><i>Windows</i></u><br>Victor
Switzerland is bundling Windows, and all four working models on all 386 hard
disk machines. They will aggressively advertise and educate resellers. Contact
magnusl for more details.</p>
<p><u><i>Multimedia Windows</i></u><br>ICL,
Research Machines and Apricot have expressed interest in joining the council as
a European affiliate. With English titles not being much of an issue here, we
should focus on these customers up front, and worry about getting the right
hardware design in other countries right now.<br>Robg met with Olivetti.
Maurb said everything came together on the strategy and technical side. Good
foundation to start the contract negotiations for licensing.</p>
<p><u><i>Pen Windows</i></u><br>Lloydfr's
demo of Penwin was so good at Amstrad that Alan Sugar asked to see it.
Apparently he liked it. Question is: Will he pay us anything for it??<br>
Husky Computers in the UK attended Windows Developer's Conference in the UK and
are interested in this product. Contact Davebr for more details.<br>
Olivetti still waiting for SOKs - long overdue and holding up progress of
papyrus consortium.</p>
<p><u><i>OS/2</i></u><br>Manfreds was
involved in a press round table at IBM Germany. They stated that they are
approaching the top-ten OEMs with OS/2 SE. However this is not an OAK but just
the binary. OEMs
<p style="text-align:right">X 190940</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>5</p><hr />
<sub>08/26/98 WED 07:55 FAX 2062819882 SUMMIT LAW GROUP [sheet]
022<hr/></sub>
<p>will have to go through pain in order to adapt it but may still be
attracted to it via a low price. We will keep our ears to the ground.</p>
<p>Why are we having such a hard time getting LADDR kits delivered
overseas? LTD reports they have been waiting for weeks for their
copies.</p>
<p><u><i>LANMAN</i></u><br>Nokia shipped
1,100 units of LANMAN (50% version1.0) in FYQ3.<br>
LANMAN Council participation was high and the feedback I have received was
positive. OEMs felt they learned a lot, presentations were interactive, speakers
open minded, and open and honest about the product. Many looking forward to next
meeting. Participants from Europe: Nokia, Bull, Tulip, Phillips, ICL, and
SNI.</p>
<p><u><i>COM Server</i></u><br>Atlantis
shipped COM Workstation in FYQ3. In addition, they are working ona [sic] bid
jointly with DEC for a French bank for 1,500 COM Servers. Contact Chrisa for
more details.</p>
<p><u><i>Works</i></u><br>Maurb reports
Olivetti looking to put GeoWorks on a future palmtop machine. We need to stop
this effort now. Donna, can you email maurb and get a dialog going about
this.</p>
<p></p>
<table frame="border">
<tr><td>Product Support Services</td></tr>
</table>
<p>Nokia feeling better about the $150K annual support fee they are paying
for their SE. A presentation made by Anderek to Nokia addressed their concerns
to their satisfaction, and they feel they know what they are going to get for
their money. Bengta [?] reports that Anderek feels more management and direction
needed in this group; tensions are high. Arnej has been alerted by Bengta about
this.<br>Olivetti SE agreement not resolved yet, but Maurb and Lorim made
good progress with the new management in place to decide this.<br>
Olivetti certification program progressing slower than necessary - lack of
coordination within seems to be the factor. We need to focus Lorim on this when
she gets back from vacation.</p>
<p style="text-align:right">X 190941</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>6</p><hr />
<sub>08/26/98 WED 07:55 FAX 2062819882 SUMMIT LAW GROUP [sheet]
023<hr/></sub>
<p><u>ICL</u><br>Dalebor fears ICL's interest in New
Wave for their UNIX based departmental systems may interfere with his Windows
GUI efforts. Nevertheless, Dais [?] is doing a good job of keeping Windows in
ICL's face by arranging conferences for their developers, and sales and
marketing groups.</p>
<p><u>Nokia</u><br>In spite of the economic slump in the
nordic area, they reported record sales for FYQ3 shipments. FYQ4 is looking
strong, too. LANMAN shipments reached 1,100 units for the quarter indicating
their ongoing commitment to the product. They must be one of our biggest OEMs if
not the biggest.<br>
Some MMW activity with Glaser's visit last month, but Nokia likely to move slow
in this area.<br>Hildreth and Maritz visited them last month and discussed
our Tiger plans. This program has their interest if they can reduce resources
while distributing a &quot;standard&quot; OS/2. The pan-European FG Apps
agreement bogged down in EHQ. Larsahi [?] working the issue.</p>
<p><u>Olivetti USA</u><br>Markt__ [illegible] and Donnag
pursuing an opportunity here on notebook PCs distributed through Wherehouse
Stores and NOMDA dealers. More talks scheduled for Spring COMDEX.</p>
<p><u>Olivetti - SPA</u><br>Signed an LOI for Trueimage
(what timing). I am sceptical that we will be able to support them responsibley
given the state of PBU. We will have to pay particular attention to this if we
want it to succeed.<br>
They are evaluating a Winword bundle on their specialized ETV machine (document
processor). We are fighting against Lotus Ami. This will be a 100% hard core
bundle and price will be a major factor. Lotus is being super
aggressive.<br>Olivetti S&amp;N confirmed their intention to bundle FG
version of either WinWord, Excel or Powerpoint on their M380-40 (386-33mhz)
machine from June to December. This will be a pan-European bundle and estimates
are in the range of 10K units.</p>
<p><u>Phillips</u><br>Mark and Hansra working together
well on more account penetration by visiting some very high level players in
Eindhoven. Glaser joined them to present a proposal on merging DV-I and CO-I
technologies into a single standard ala MM PC II. Phillips is considering the
implications of Rob's offer to convert from 88000 to Intel while standardizing
on CDROM XA. Uncovered a design win opportunity at Phillips with Pen Windows.
More discussions planned at the EOEM Briefing 5/31 in Cannes.</p>
<p><u>Schmitt Computers</u><br>Great job by GmbH in
converting a large FG DOS customer to royalty DOS as well as Windows and Works.
These guys go head to head with the likes of Schneider and Vobis, and expect to
ship over 70K units over the next year.</p>
<p><u>Schneider Rundfunkwerke</u><br>They want to be
able to ship DOS 5.0 German version on 6/11. We are doing everything we can to
make this happen, e.g. putting the ODK files on the network for GmbH to unload
onto tape and deliver them nearly a day or two after release - this will save
them 2-3 weeks in time to market. We expect these guys to announce new line of
low priced pcs along with DOS 5.0 to try to win back lost market share over the
last year.</p>
<p style="text-align:right">X 190942</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>7</p><hr />
<sub>08/26/98 WED 07:56 FAX 2062819882 SUMMIT LAW GROUP [sheet]
024<hr/></sub>
<p><u>Siemens-Nixdorf Informationssysteme AG
(SNI)</u><br>Still struggling with the merger. PC sales have not
recovered from huge dip in FYQ2. IBM has approached them to license OS/2. SNI so
far is refusing due to the need for adaptation materials and support they get
from MS. Ther [sic] should be lots more account management activity in this
account. I'll have to talk to Manfreds about this.</p>
<p><u>SMT-Goupil</u><br>Rumors still strong that either
Siemens or a Japanese OEM will buy them. Everything with them has come to a halt
until they know where they are going, and with whom. Minimum commitments are at
risk for FY92. They are already behind in payments this year.</p>
<p><u>Tulip</u><br>Further discussions on LANMAN with
reduced minimum commitment requirements has induced them to license LANMAN and
COM. Hansra is working on this.</p>
<p><u>Victor</u><br>The license agreement ownership
issue seems t [sic] bounce back and forth between Victor and Tandy. Victor says
they will keep the license; Tandy says they will own all operating system
licensing including Victor. Time will put pressure on this decision as Victor's
license agreement expires June 30. Magnusl working hard on the renewal license.
We will incorporate as much of Tandy's license into Victor's license that makes
sense, and we will also maintain consistent pricing with Tandy's agreement and
Victor's existing license agreement. The Windows license presents an opportunity
to obtain minimum commitments and a separate license for Victor as Tandy is not
likely to reach agreement with MS prior to 6/30. Victor wants to continue
shipping Windows on 7/1.<br>Victor has won a piece of the Swedish
government's business over the next three years. This will force Victor to
license LANMAN on a royalty basis from us.</p>
<p><u>Vobis</u><br>We are focusing on getting these guys
to ship DOS 5.0 ASAP. If we can do this quickly, this will have a huge influence
on other DRI OEMS that look to Vobis and think it is okay and competitive to
ship DR DOS. Lieven was invited to attend Gemmel's market/channel review in
Munich. It would be interesting to hear his feedback.</p>
<p style="text-align:right">X 190943</p>
<p style="text-align:center">**<i>MICROSOFT
SECRET</i>**<br>8</p><hr />
<sub>08/26/98 WED 07:56 FAX 2062819882 SUMMIT LAW GROUP [sheet]
025<hr/></sub>
[<i>Sheet 25 contains two tables, being a print of FYQ4REV.XLS dated
5/22/91. Tables are headed &quot;</i>REVENUE PERFORMANCE SUMMARY:
Month-to-date: Quarter-to-date: Year-to-date Quarter: 4FY91<i>&quot;
and &quot;</i>SUBSIDIARY SUMMARY: Month-to-date: Quarter-to-date:
Year-to-date Quarter: 4FY91<i>&quot;. The values in the tables are
mostly illegible and transcription has not been attempted in this
edition</i>]
<p style="text-align:right">X 190944</p>
<p style="text-align:right">EOEM - 5/22/91 8:53 AM
(FYQ4REV.XLS)</p>
<sub>08/26/98 WED 07:57 FAX 2062819882 SUMMIT LAW GROUP [sheet]
026<hr/></sub>
[<i>Sheet 26 contains two tables, being a print of FYQ4REV.XLS dated
5/22/91. Tables are headed &quot;</i>FISCAL YEAR 1991 (Actual through
March) and FISCAL 1992 FORECAST<i>&quot; and
&quot;</i>Subsidiary Summary<i>&quot;. The values in the
tables are almost totally illegible (some cells appear to have been deliberately
obscured) and transcription has not been attempted in this edition</i>]
<p style="text-align:right">X 190945</p>
<p style="text-align:right">EOEM - 5/22/91 8:53 AM
(FYQ4REV.XLS)</p>
<sub>08/26/98 WED 07:57 FAX 2062819882 SUMMIT LAW GROUP [sheet]
027<hr/></sub>
<p style="text-align:center">&quot;Microsoft
Secret&quot;</p>
[<i>Sheet 27 contains a single table, being a print of DOSWATCH.XLS dated
5/14/91. The table is headed &quot;</i>DOS 5.0 Watch (April
1991)<i>&quot; and tabulates Account Mgr, Status, Expected Close Date,
Expected Ship Date and DRI Threat? for each of fifty-seven (57) OEM companies.
Status is coded as Proposed, Negotiating, Signed, Letter of Intent, Verbal OK or
Not Applicable. DRI Threat? is encoded as Current DRI Customer, No Threat or
Evaluating DRI DOS. The values in the tables are often illegible and
transcription has not been attempted in this edition</i>]
<p style="text-align:right">X 190946</p>
<p style="text-align:center">5/14/91 (DOSWATCH.XLS)</p>
<sub>08/26/98 WED 07:58 FAX 2062819882 SUMMIT LAW GROUP [sheet]
028<hr/></sub>
<p style="text-align:center">Attachment</p>
<p>Current or Pending Windows 3.0 Licensees as of _____
15-May-91</p>
<table border="1">
<tr>
<td style="text-align:center">Company</td>
<td style="text-align:center">Account Manager</td>
<td
style="text-align:center">Pre<br>Installed?</td>
<td style="text-align:center">Signed (S) or<br>Pending
(P)</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Actebis</td>
<td>olivers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>AEG Olympia</td>
<td>manfreds</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<td>Akhter Group PLC</td>
<td>davebr</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<tr>
<td>Amstrad</td>
<td>sandyd</td>
<td>Y</td>
<td>P</td>
</tr>
<td>Apricot Computers</td>
<td>sandyd</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Aquarius Systems International</td>
<td>olivers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Asern SPA</td>
<td>andreab</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<td>Brother Int'l</td>
<td>davebr</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Digitale Microsyteme GmbH</td>
<td>olivers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>G2 Computers</td>
<td>hansra</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>IPC Deutschland</td>
<td>olivers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Intercomp APA</td>
<td>andreab</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Nolda Data Systems</td>
<td>larsahi [?]</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Olivetti SPA</td>
<td>maurb</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<td>Optisys AB</td>
<td>magnusl</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Peacock</td>
<td>manfred</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Philips</td>
<td>markba</td>
<td>&nbsp;</td>
<td>P</td>
</tr>
<tr>
<td>Profex Electronic</td>
<td>olivers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Quattro</td>
<td>davebr</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Research Machines Ltd.</td>
<td>mandyd</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Schneider</td>
<td>michro</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Siemens-Nixdorf</td>
<td>jaspv</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>SMT-Goupil</td>
<td>chrisa</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Tiki [?] Data</td>
<td>magnusl</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Tulip Computer BV</td>
<td>hansra</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Unibit</td>
<td>andreab</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Unidata</td>
<td>andreab</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Victor</td>
<td>magnusd</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Viglen</td>
<td>davebr</td>
<td>Y</td>
<td>&nbsp;</td>
</tr>
</table>
<p style="text-align:right">X 190947</p>
<p style="text-align:center">5/14/91 (WINOEMS.XLS)</p>
<sub>08/26/98 WED 07:58 FAX 2062819882 SUMMIT LAW GROUP [sheet]
029<hr/></sub>
[<i>Sheet 29 contains a single table (in landscape orientation), being a
print of OS_2.XLS dated 5/14/91 3.14 PM. The table is headed
&quot;</i>EOEM OS/2 1.21 and 1.3 Status<i>&quot; and
tabulates (a) for OS/2 1.21 - Account Mgr, Shipping, Expected Ship Date and
Preferred Localised Versions, and (b) for OS/2 1.3 - Will Ship? and Required
Localised Versions, for each of thirty-three (33) OEM companies. The values in
the tables are largely illegible and transcription has not been attempted in
this edition</i>]
<p style="text-align:center">&quot;Microsoft
Secret&quot;</p>
<p style="text-align:right">X 190948</p>
<p style="text-align:center">5/14/91 3.14 PM
(OS_2.XLS)</p>
<sub>08/26/98 WED 07:59 FAX 2062819882 SUMMIT LAW GROUP [sheet]
030<hr/></sub>
[<i>Sheet 30 contains an organization chart (in landscape orientation),
for Microsoft European OEM Sales under the directorship of Jeff Lunn.
Subsidiary to the director are organizations for MS AB (Scandinavia), MS BV
(Holland) MS GmbH (Germany), MS LTD (England), MS SARL (France), MS SPA (Italy)
and MS SRL (Spain). Names of personnel are largely illegible, and transcription
has not been attempted in this edition</i>]
<p style="text-align:right">X 190948</p>
</body>
</html>

---
(c) assigned to PJ

[ Reply to This | Parent | # ]

PX01249 - Winning the applications business at CompUSA - Feb 1992
Authored by: sciamiko on Tuesday, August 14 2012 @ 05:58 AM EDT
<!-- Converted from PX01249.pdf on 2012-08-14 -->
<br>TO: Joachim Kempin
<br>FROM: Jeff Lum/Debbie Flynn
<br>RE: Winning the applications business at CompUSA
<br>DATE: February 27, 1992
<br>CC: Peter Braman, Dale Christiansen

<p>

The purpose of this memo is to bring you up to
date on the negotiations with Compudyne for our
applications business. As you now we are in a
tough competitive battle with Lotus whereby they are
willing to ‘give away‘ the business from our
perspective. In addition, you know that we have had a
difficult time making any progress internally on
developing a competitive strategy against Lotus's
aggressive proposal. it appeared earlier this week
that we were going to have to walk from any kind of
deal with Compudyne since the applications
marketing group did not want to match Lotus‘s offer, which
is what Compudyne said we would have to do to get
the business.
<p>

Steve Dukker, President of Compudyne, agreed to
let us have a few more days (until 3/2) to come up
with a competitive proposal. We accomplished this
by offering to license him downlevel versions of
Excel (3.0) and Word (1.10) with the opportunity
to make additional pro&#64257;ts on the upgrade business to
Excel 4.0 and Winword 2.0. The ability to make
additional margin on the upgrade business has sparked
his interest. This memo provides some background
to what our competition is offering, why it makes
sense to go after this business aggressively, and
a proposal that allows us to be competitive with the
<p>
Lotus offering.
<p>
We believe we have come up with a creative
solution that provides for a competitive solution without
compromising the value of our software by
combining an aggressive royalty for down level products
(Excel 3.0 and WinWord 1.10a) and an aggressive
upgrade program for preinstalled versions of the
down level software only. it you believe this is a
good proposal. we need you to meet with Mikemap this
weekend during your retreat, and come to an
agreement that we can pursue this business. We meet
with Steve Dukker, President of CompUSA, on Monday
in San Francisco. We need to have a proposal
in hand that we can nm with or he will sign with
Lotus next week (probably right after our meeting).

<p>

<u>Background:</u>

<p>

Compudyne has the ability to be the next Dell or
Gateway by the sheer volume they will move the direct
mail. club. and owned stores channels. With the
opening of 20 new stores in the next fiscal year, their
mail order business, and their plans to expand
into the non-traditional computer channel, they believe
that they will be shipping 30,000 units a month by
December. That's a lot of machines that could be
running Lotus (or Microsoft) software.

<p>
LOTUS has offered CompUSA the following deal:
<p>
* $70 royalty for <u>both</u> Ami Pro and Lotus
123W (latest versions)
<br>
* includes documentation and support
<br>
* 20,000 unit commitment '
<br>
*April 1.1992-December 31, 1992
<br>
* no min commits. pay each time documentation is
ordered, if they don't hit 20K
commitment, they pay the difference
<br>
* no media. software will be pre-installed.
<p>
Compudyne wants to add value by packaging software
with hardware, e.g. have the customer think they
get $1000 worth of free software. Compudyne
doesn't necessarily price their bundles according to the
software cost. so every dollar that doesn't go to
the vendor is a margin dollar to the bottom line.
Compudyne wants the MS features. but Lotus's name
is enough of a draw to make this bundle move.

<p>

High end applications are becoming even more
attractive because 1) it is another level of differentiation
and 2) Lotus is making it attractive. At first
glance. this deal may not seem to make sense because the
pricing is so low, however. once Lotus gets their
products pro-installed on the machine, it is very
unlikely that the user will upgrade to our product
(at least in the short term). We lose the original
socket and the potential for future upgrade
business. Every Lotus sale on a machine means that
customer doesn't purchase a MS product at point of
sale. We lose the retail customer who would have
purchased an MS app if the ‘free’ software
hadn't been on the machine. There is a severe opportunity
cost (both short and long term) to allowing Lotus
applications on these machines.
<p>

Another issue is Lotus momentum at the OEM level.
Lotus is making very aggressive deals. They have
already signed with Zeus and Packard Bell. MS has
a nice market share position today with our
Windows applications, and we have been competitive
in most situations. However, in recent months we
have lost some signi&#64257;cant business in the same
channel that Compudyne is in to OEMs like Philips,
Packard Bell, and Zenith. Because of Lotus's
momentum and corresponding price erosion. it could
conceivably cost us more in 6 months to buy this
business than it does today. Why not lock them into
our camp today? This is very in line with the
systems business model. Our pricing model does not
address the competitive issues that we are facing
today. We need a’ competitive strategy in these
situations.
<p>

<U>Proposal:</U>
<p>

In order to “match” Lotus's $70 all-inclusive
(support and documentation) royalty to Compudyne – without
documentation and support from MS - we believe we
need to do the following:

<p>

Offer an $85 royalty for the Compudyne version of
Excel 3.0 and Word 1.10a. In addition, we need to
offer an aggressive discount on the retail upgrade
products that Compudyne can sell onto
<i><u>preinstalled</u></i>
<i><u>Compudyne machines</u></i>. The chart below
illustrates that by offering an $85 royalty. and a $125 royalty for
the upgrade. The net cost to Compudyne is $53.50
per preinstalled machine. When you factor in
documentation and support on top of this, we are
competitive compared to Lotus's offer of $70.
However, because of the upgrade business‘. our
net royalty rises to $123 for Excel and Word for each
machine that Excel 3.0 and Wmword 1.10 is
preinstalled onto.

<p>

Time is of the essence in this proposal. We
explored using the retail upgrade product and offering an
aggressive program through SMSD, but they are not
willing to talk to us about doing this. Thus. our only
course of action is to go with a total royally
deal.

<p>
<i>Assumptions:</i>
<br>Potential machines - 1 yr 150,000
<br>Win capable machines (100%) 150,000
<br>Windows machines (75%) 112,500
<br>Bundled machines (50% of Windows machines) 56,250
<br>Upgrade potential (37% of Bundled machines) 18,875

<p>

Royalty and pro&#64257;t analysis tor compUSA
<p>
<br>Microsoft Royalty for Compudyne preinstalled
product $85.00 Excel 3.0 and Winword 1.10a
<br>Upgrade revenue per Excel &amp; Word bundle $250.00 Excel 4.0 and
WinWord 2.0 upgrade
<br>
Royalty to MS for upgrade (preinstalled units only) $125.00
<br>
Compudyne cost tor COGS for bove (approx) $20.00
<br>
Upgrade gross proit for compUsA per Exc &amp; Word $105.00
<br>
bundle
<p>

Total upgrade gross profit for CompUSA
1.771.875 Upgrade potential x upgrade gross profit per
<br> Excel/Word upgrade bundle
<br>Number of Bundled machines 56,250
<br>Profit per Bundled machine $31.50 (Upgrade
gross profit / # of bnundled machines)
<br>Net royalties to MS per Bundled machine $53.50
(Does not include support or documentation)

<br> Versus $70 for Lotus 1-2-3W and AmlPro (incl
doc
<br> and support)
<p>
<br>Microsoft revenue analysis
<br>Royalty for downlevel verfsions $85 Excel
3.0 and WinWord 1.10a
<br>Royalty for upgrade versions $125 Excel 4.0
and WinWord 2.0
<p>

<br>Total royalties 4,781,250 (Bundled machines
x $85)

<br>Total royalties for upgrades 2,109,375 (Upgrade
potential x $125)

<br>Total revenue 6,890,625

<br>Net Doilars/Bundled machine $123 Total
revenue / # of bundled machines
<p>
We believe this offer will be attractive to
Compudyne. As you can see we are able to charge even more
than Lotus for royalties on our down level
products by leveraging the upgrade margin potential. In
addition. these are upgrades and customers that we
are not likely to get if Lotus is on their machine.
<p>

We will also ask for.
<p>
1) A Mlcrosoft registration card in each
application box including upgrades (the upgrade box will be a
Compudyne colored and labled box that clearly
indicates it can only be used to upgrade preinstalled
Compudyne machines. We can make them include just
the install diskettes in the system box so that
the upgrades that sit on the shelf are useless
without the install disks shipped with the system.

<p>

2) That he commits to shippng at least one MS
application on every Windows machine. We propose
using the following price structure for the low
end bundle:_
<p>
<br> Works for Windows $10
<br> Entertainment Pack $3
<br> Money $5
<p>
These low end products will help him round out
Compudyne’s product offering where they are not able
to bundle high end applications. More importantly,
this will kick Lotus out completely from Compudyne machines, and
allow them to make an all-Microso&#64258; solution throughout the entire
product line.
<p>
We look forward to hearing from you by Sunday,
March 1 about this proposal.

[ Reply to This | Parent | # ]

PX04275 Far East OEM. NT must be domain controller
Authored by: kattemann on Thursday, August 16 2012 @ 02:51 PM EDT
<p>Plaintiff's Exhibit<br />

4275<br />
Comes vs Microsoft</p>
<p>September 1992 Status Report<br />
Far East OEM Sales<br />
Jeff Lum, Director</p>
<p><b>Highlights</b></p>
<p>FE OEMs suffering export decline as prices in the US drop dramatically.
Taiwan is feeling the heat as OEMs struggle<br/>
to stay in business. Korean OEMs complain that the prices they are seeing in
the US are below their cost for similar <br/>
configurations. Japanese OEMs are not in any better shape, and in their own
market......</p>
<p>Japanese subsidiaries of US OEMs cutting prices dramatically. Apple
announced an average 20% cut in the prices of <br/>
its personal computers and Digital announced an average 46.5% cut. IBM will
introduce three new models, starting <br/>
from $1,700. Compaq announced that it will begin selling computers in Japan at
prices half the prevailing market<br/>
levels. The Prolinea line will list for as little as $1,100. But NEC, with
50+% share, announced it has no immediate <br/>
plans to cut prices. I don't believe that attitude will last long.</p>

<p>MS-DOS 5.0a/V slipped into January as compatibility issues with IBM
DOS/V surface. No plans to support AX anymore,<br/>
which makes sense.</p>
<p>Win 3.1/V on an aggressive schedule to ship by March. Steveb was
instrumental in getting NEC to see the light in not<br/>
shipping Win 3.1/V until it is ready. All key Japanese OEMs and US OEMs in
Japan have pledged their support to <br/>
preinstall (where feasible) Win 3.1/V when it becomes available.</p>
<p>PCMCIA strategy (or lack of) is a major concern for OEMs. We have not
yet articulated a clear strategy for providing <br/>
PCMCIA support in DOS and Windows.</p>
<p>HP printing technology deal getting closer to reality as the general
business terms are agreed upon between Maritz,<br/>
Carnahan and Beluzzo. The agreements consists of $1.5M for the user interface
and $8M for RBA royalties. Contract<br/>
terms, schedules, prepayments, and royalties being worked out now.</p>
<p>Strong support for W4W in my Solution Providers group from HP, NCR,
Compaq (all 3 will be at launch), and Unisys <br/>
(press announce only). Dell and DEC are holdouts. DEC because they are slow
and have some technical issues, and <br/>
Dell because they want to be stubborn (Novell may be pitching them hard as they
are doing with Compaq).</p>
<p align="center">
<b>Revenue</b>
<table border=1>
<tr><th>Area<th>September<br/>Budget<th>September&
lt;br/>Budget<th>FYQ1<br/>Actual<th>FYQ1<br/>Budget&l
t;th>Qtr. % of <br>Budget</tr>
<tr><td>Far East
OEMs<td>$16.2M<td>$12.8M<td>$32.0M<td>$26.3M<td>12
2%</tr>
<tr><td>Solution Provider
OEMs<td>6.9M<td>3.1M<td>26.7M<td>15.2M<td>176%<
/tr>
<tr><td>Far East Redmond
OEMs<td>$0.2M<td>0M<td>0.5M<td>0.3M<td>159%</tr
>
<tr><td>Total Far East Region
Sales<td>$23.3M<td>$15.9M<td>$59.2M<td>$41.8M<td>1
42%</tr>
</table>
</p>
<p><b>In the FE Japan</b> finished the quarter at
<b>$11.1M (116% of budget)</b>. We closed several agreements with
considerable<br/>
minimum commitments which helped get us over budget as machine shipments in
Q4'92 reached only 85% of the same <br/>
quarter last year. In addition, Karenh's group contributed a lot to this by
helping complete the agreements with Ricoh and <br/>
Murata for E-FAX. Korea had a strong quarter finishing at <b>$10.1M (194%
of budget)</b> due largely in part for delayed<br/>
minimum commitment billings from Hyundai, Goldstar, and Samsung in the
conversion from per processor to per <br/>
systems licensing per Korean government requirements. Daewoo Telecom expected
revenue of $1M was delayed to <<be/>
October due to MS internal processing. Taiwan finished the quarter with
<b>$9.1M (88% of budget)</b>. Acer's revenue hit <br/>
of just over $1M was for PPB usage, and several accounts worth $.5M have
basically quit business. CS is confident his <br/>
revenue will turnaround by Q3 as some pending business comes thru and MED picks
up. <b>Hong Kong</b> finished Q1 with<br/>
<b>$1.8M (163% of budget)</b>.</p>

<p>Markche's Solution Provider Group had a strong September finish ($6.9M
vs $3.1M, completing Q1 at <b>$26.7M (176%<br/>
of budget)</b>. Dell's min commit on the Office license plus large mouse
orders accounted for $4M of September revenue.<br/>
Dell and Compaq accounted for over $10M of the $11.5M surplus for Q1.</p>
<p>Tedha's FER Group finished the quarter with <b>$521K (158% of
budget)</b>. This accomplished in spite of the restructuring<br/>
of our NEC-T Office license which resulted in NEC reaching 12% of their $139K
budget in Q1. We will need to focus on<br/>
new opportunities at Hyundai, Sony, VTech, Epson, HP and Compaq printer groups
to exceed budget for FY'93.</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613476</p>
<p>1</p>
<hr />
<p align="center">
<b>New Business Signed</b><br/>
<table>
<tr><th>Account<th>Product<th>Comment</tr>
<tr><td>FE OEMS<td><td></tr>
<tr><td>Columbia (Japan)<td>MS-DOS &amp; CD
Ext.<td>Amendment, $1.30/sys, M/C: $170K</tr>
<tr><td>Mitsumi (Japan)<td>CD Ext.<td>New Agreement,
$1.30/sys, M/C: $130K</tr>
<tr><td>Ricoh (Japan)<td>E-Fax<td>New Agreement,
$10-$20/sys, M/C: $1M</tr>
<tr><td>Shima Seiki (Japan)<td>MS-DOS 3.0, 4.0 &amp;
5.0<td>Amendment, $45/sys, M/C: $112.5K</tr>
<tr><td>Sony (Japan)<td>CD Ext.<td>Amendment, $1.30/sys,
M/C: $170K</tr>
<tr><td>Toshiba (Japan)<td>Ballpoint (DCBP)<td>New
Agreement, $5.50-$11/sys, M/C: $600K</tr>
<tr><td>Daewoo (Korea)<td>MS-DOS, Windows, NT<td>New 2
year agreement</tr>
<tr><td>Daewoo (Korea)<td>Works, WinWorks<td> New 1 year
agreement</tr>
<tr><td>CAF (Taiwan)<td>Works for Windows<td>2.5K/year,
English and German, M/C:$1.24M</tr>
<tr><td>CAF (Taiwan)<td>MS-DOS<td>Amendment #1, 70K/yr,
was 40K/yr, M/C: $1.24M</tr>
<tr><td>Elitegroup (Taiwan)<td>MS-DOS &amp;
Windows<td>5K/year for MS-DOS; and 1K/year for Windows</tr>
<tr><td>Lite-on (Taiwan)<td>ROM MS-DOS<td>Amendment #1,
update localized verskions</tr>
<tr><td>US OEMs<td><td></tr>
<tr><td>NCR<td>Win, Pen, SQL, DOS/V<td>Increases M/C by
$2.2M/yr</tr>
<tr><td>HP Grenoble<td>MS Mouse
Chipset<br/>WFW<br/>Windows<td>$4/unit;
$400K/year<br/>$8/system; $200K/year<br/>
$19/system; $2.85MY/year</tr>
<tr><td>FER OEMs<td><td></tr>
<tr><td>Sony Government<td>Bombay, Works<td></tr>
</table>


</p>
<p>Area Summaries</p>
<p>Japan<br />
As our Modular Windows strategy takes shape, we see more consumer electronic
OEMs interested in what we're <br/>
doing. We need an extra strong focus in this area to gain momentum. Recent
organizational changes should help this<br/>
effort; ReijiS will be the section lead for Consumer Systems products, and he
will hire 2 AMs this year to focus on<br/>
consumer electronics accounts.</p>
<p>KK engineers and OEM engineers have started to move to MSHQ campus for
work on NT-J. The total staffing from<br/>
OEMs will be Fujitsu (3 people), Hitachi (3), OKI (2), Epson (1), DEC (1) and
Compaq-J (1).<br/>
[transcriber's note: KK, MSKK, is the Microsoft subsidiary in Japan. (Kabushiki
Kaisha) ]</p>
<p>Compaq is forced to purchase IBM's package of Win 3.0 to ship with
their systems in Japan. I am working on a<br/>
reasonable proposal to help them absorb some of the extra costs of purchasing
IBM's product.</p>
<p>Korea<br />
Samsung announced new 486 models at the price of their 386DX models and other
OEMs will join this price war<br>
in the domestic market.<br />

Samsung and HP announced their joint project for PA RISC workstation.<br
/>
Hyundai will announce new 386SX with sound and speakers for home and educational
markets.<br />
The Electronic Times in Korea headlined Modular Windows as next Korean OEM's
platform.<br />
CH spreading the word on Modular Windows to Consumer Electronics
Companies.</p>
<p><b>News</b></p>
<p>Compaq &mdash; Compaq expands Retail Channel to include Circuit
City, CompUSA and Office Depot.<br />
Unisys &mdash; received a 3-year, $90 mil contract from the Czech Savings
Bank (Ceska Sporitelna). Unisys has also<br/>
received a contract from Ferro (Sweden) that could be worth $13 mil. The
contract is expected to last 5 years.<br />

HP &mdash; signed a deal with Samsung Electronics Company Ltd., that
involves HP's PA-RISC hardware platform.<br />
NEC: Announced the Select Solutions program which offers 16 preconfigured
systems designed for such areas as <br/>
desktop publishing, CAD and general business. Released the Powermate DX2/66e
($3459) and DX2/66Te ($8049) which<br/>
are based on Intel's latest microprocessor.<br />
HP Printer: HP announced that it has signed an agreement with Colorado Memory
Systems (CMS) to acquire the PC tape backup company.</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613477</p>
<p>2</p>
<hr />

<p>Canon Printer: Canon and IBM announced the formation of a joint venture
to develop next-generation personal<br/>
computers combining PS/2 technology with Canon's bubble-jet printing technology.
First product to be covered will be<br/>
the "Jet PC" that Canon developed and showed to us in meetings in
Tokyo and in Redmond.<br />
Acer: Will introduce a low cost MIPS R/4000 desktop system during
Comdex.</p>
<p><b>Issues</b></p>
<p>NCR &ndash; NT &ndash; It appears that we released what was
determined somewhat of a bombshell at the LM Council Meeting. In<br/>
order for an NT workstation to be added as a desktop to an existing network,
LM/NT must then become the domain <br/>
controller in order to administrate the NT workstation. This eliminates LM for
OS/2 and LM for UNIX as being viable<br/>
alternatives for the server OS in a LM environment. In NCR's mind this breaks
the "openness" we have been preaching<br/>
about our LM strategy.</p>
<p>
Dell &ndash; has become increasingly protective of their installed base and
their desire to maintain control over product <br/>
offerings. This will have significant impact on new business that requires Dell
to include registration cards and/or changes<br/>
the royalty model for upgrade business (MS-DOS 6.0, WFW, etc.) Dell expresses
violent concern over registration card <br/>
usage for Anti-virus upgrades in conjunction with Central Point Software.<br
/>
HP is very interested in an MS strategy for allowing CIA based machines to be
upgraded to Mobile Windows machines. <br/>
Systems has ruled this out for now. At the very least, we need a
"family" strategy for these two products.</p>
<p><b>Key Account Summaries</b></p>
<p><u>Japan</u><br />
Casio (IchiF)<br />
MSHQ, Intel and VLSI had a presentation on PIA to CASIO-Personal Communication
Division. Hard to know if CASIO is <br/>
interested in this project. However, they are interested in focusing on the
very low-end machines. CASIO will give us<br/>
their questions in the middle of October. CASIO will reply to MS after internal
discussion is done including the president<br/>
in 2 or 3 weeks.</p>

<p>Epson (HideyaU)<br />
Negotiation in progress for royalties for MS-DOS and Windows. Epson has enjoyed
gut low prices ($10) for years. We <br/>
are negotiating to get them closer to guideline. We offered two types of
proposal listed below:<br />
a) $10 until 4/1/93. then $15 until 10/1/93, then it goes to $17.<br />
b) $11 until 4/1/93, then $13 until 10/1/93, then $15 until 4/1/94, then it goes
to $17.<br />
Regarding the MS-DOS 6.0 US version royalty (incl util), $18 until 10/1/93, then
it goes to $22. Any other localized<br/>
version should be added at $2 as a localized version fee.</p>
<p>Fujitsu (KenjiN)<br />
They are developing a middle class laser printer that is capable of 16ppm.
Target sales are 20K units per year, including<br/>
OEM. Shipping will start early next year. They started shipping their new
highest-end desktop type of PC, which utilizes<br/>
486DX2 66MHz. However, the price is more than US$17,000 which is much too
expensive compared with one that is<br/>
manufactured in US or Taiwan.</p>
<p>Kanematsu (IchiF)<br />
<u>Omron Issue:</u> Kanematsu failed to get Omron deal. Kanematsu
did not understand Omron's needs: i) Interlink, and ii)<br/>
Kanji Version support with inexpensive way. Kanematsu asked $48K development
fee for FEP (Kana-to-Kanji <br/>
conversion software), which Omron cannot afford.</p>

<p>Comparison Sheet: ASCII (DR-DOS) Kanematsu (MS-DOS ROM V3.22)<br
/>
<table border=0>
<tr><td>1. DOS feature<td> 120 yen<td> 360
yen</tr>
<tr><td>i. FEP <td> n/a <td> 300
yen***&ndash;> 0 yen</tr>
<tr><td>3. NRC / Develop.<td> 40 yen <td> 240 yen
***&ndash;> help plan</tr>
<tr><td>4. BIOS /KB Driver <td>about the same <td>
about the same</tr>
<tr><td>5. ROM /RAM <td> about the same <td> about
the same (80 yen)</tr>
</table>
Status<br />
1 MS's offer to Kanematsu was:<br />

i) to license MS's FEP for free of charge. and<br />
ii) help in development fee for Kanematsu by giving commission of WORKS-Kanji
offering to Omron together.</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613478</p>
<p>3</p>
<hr />
<p>2 However Omron just wants an inexpensive solution and Interlink for
Kanji version, Works.<br />
3 Omron does not understand why MS is good and valuable.<br />
4 If Omron selects DR, MS cannot guarantee that Works will work properly. This
has to be told to Omron.</p>

<p>Matsushita Electric (MEI) (KenjiN)<br />
They decided to pre-install both MS-DOS 5.0a/V and Windows 3.1J starting next
Spring, but the exact date depends on <br/>
Win 3.1J. Target market is just Japan.<br/>
We have to think of a remedy plan for their large remaining PPB. The estimated
PPB at the end of their current <br/>
agreement is approx. $1.6M, which originally came from their OS/2 agreement
(M/C: $1.5M). In order to make all of the <br/>
remaining PPB available to their new agreement, Mr. Matsuda of MEI has signed an
LOI stating "Matsushita is now <br/>
shifting its sales power and software development resources from MS-DOS to
Windows systems. Now planning to <br/>
preinstall MS-DOS and Windows on the PCs that utilizes 80386 or 80486. The
preinstalled ratio of current plan is more<br/>
than 50% of all the PCs marketed in Japan at the end of 1993". Now, we
need to conclude as soon as possible.</p>
<p>Minolta (IchiF)<br />
<u>Amendment to TrueImage Agreement:</u> Minolta requested to
reduce their royalty down to $10/sys &ndash; $15/sys range after<br/>
digesting (consuming) 10K units of their commitment $270K. Advanced M/C payment
is also hard for Minolta, they say,<br/>
because PostScript Level1 and its clone in the market have declined. New
royalty of $25/sys is offered with M/C of <br/>
$75K. Additional option is to reduce the rate from $25/sys to $15/sys, but keep
the M/C at $150K, with 10K unit <br/>
commitment needed.<br />
<u>Dumbo Opportunity:</u> Dumbo Plan was presented to Minolta, who
is interested in this project and will have a presentation <br/>
to MSKK to prove that they can do mass-production.</p>
<p>Mitsubishi Electric (MELCO) (ToshimiH)<br />
Had a ROM-DOS meeting with JonK after the ROM-DOS Seminar held on 9/10 and
further discussed in more detail<br/>
ROM-DOS, FFS and MS-DOS v6.0. Especially for FFS which is licensed, very
aggressive discussion was made for their<br/>
future products using it. They have announced 2 types of highend Apricot
series. One is a server model (i486DX2<br/>
66MHz/SCSI-2 2GB HDD, 10GB at max/16MB memory, 64MB at max) for more than 50
clients. They expect to sell<br/>
2,500 units/year, starting in this Nov. The other is DOS/V Apricot Notebook PC
(i386SL/25MHZ/VGA) and they expect to<br/>
sell 20,000 units/year, starting this Dec.</p>

<p>NEC (KiyoO)<br />
NEC visited HQ and Tandy to investigate VIS, Multimedia, Modular Windows,
advanced products and MS' future<br/>
strategy. Before the meeting, NEC visited Tandy on 9/8 and learned about VIS
hardware. NEC's impression of the<br/>
meeting is that Tandy already announced their new PC ("Sensation")
with multimedia features, at low cost and high<br/>
function, for the business market. That's why Tandy is focused on selling VIS
into the home market. Tandy couldn't<br/>
understand NEC's plan to launch PC-9800 with VIS into multimedia market by
taking advantage of huge install base<br/>
of PC-9800, sales and support power and NEC's brand image. We need to
communicate with nEC and Tandy to launch a <br/>
sort of VIS into the Japanese market.</p>
<p>NEC committed to using Modular Windows even though they don't have a
concrete plan yet. We need to sell Modular<br/>
Windows to each division that currently manufactures consumer electronic
devices. For Modular Windows, they think we<br/>
are too focused on TV-based devices. I think we can sell Video for Windows,
Clockwork that is a product coming soon.<br/>
In other words, at least participants seem to persist in current situation, i.e.
they seem to prefer a standard that is defined<br/>
by a committee to DeFacto Standard, they think it's very hard to establish
information hierarchy for digital communication<br/>
world, they are not sure if end users can recognize value of digital world or
not. As Robg asked, we need to get their<br/>
feedback, which means how NEC executives think about our vision and product plan
and we need to continuously <br/>
discuss our vision and future products with NEC. I think this meeting was a
good beginning to work with not only the NEC <br/>
PC division but, also other divisions. They went away with a lot of info and
had a lot of studying to do. We need to sell<br/>
I-FAX and Homer to appropriate divisions as well.</p>

<p>SamF and MarkAn met with Mr. Mizuno (CEO &amp; VP, responsible for
domestic sales) and others and gave them a demo<br/>
of VIS and AVI. He is not directly responsible for their product plan, but has
power to direct NEC's direction. The demos<br/>
went pretty well, although it was difficult to gauge his response. Such
activity helps us to persuade PC Div. to use our<br/>
products. He was surprised to learn the number of titles being developed for
the VIS and MPC, and wanted to know<br/>
which titles and tools were available, and if any Japanese titles were being
developed. He seemed to think that the VIS<br/>
was an interesting lowend machine that NEC Home Electronics should look at. Mr.
Mizuno is one of the guys Apple and <br/>
IBM have been pitching. He seems most interested in teleconferencing and not
much on consumer technology or <br/>
lowerend PC stuff. He said that Japan was currently installing more
teleconferencing systems than any other country.<br/>
Since these systems require a lot of dedicated space and hardware, the idea of
being able to teleconference directly from</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613479</p>
<p>4</p>
<hr />
<p>your PC is very compelling. He wanted to know if MS was working in
this area, or if we had opinions on the hardware<br/>
being developed. Mizuno said they were very interested in ISDN-based systems.
This is going to be a big focus for <br/>
NEC. He didn't mention Kaleida, but NEC clearly has a fear and respect of
Apple. He commented that Apple would <br/>
have a much larger installed base if they only licensed software and didn't make
hardware. (He asked if MS had any<br/>
plans to get into the hardware business.) Impression of MarkAn is that they
don't understand how it relates to their<br/>
mainstream business. That's why it's more important than ever that we keep them
up to date on our technology and <br/>
keep feeding them advice about where to take their platform.</p>

<p>NTT Data (ShigeruN)<br />
Automobile Registration Project<br />
NTTD revealed their plan to use NT for new project; nation wide project with
government, that is a Car registration<br/>
program. They also told us that they officially decided to adapt[sic] Windows
NT as official OS of NTTD's corporate strategy.</p>
<p>Sharp (IchiF)<br />
<u>VIS/Modular Windows:</u> MSKK (MarkAn) and A&amp;A (Tandy-J)
had a presentation regarding VIS and Modular Windows to<br/>
Sharp-Corporate Research and Development Group including Multimedia Systems
Research and Development Center.<br/>
VIS offered by A&amp;A is one of the good approaches to open up a new
channel between MS and OEM to promote<br>/
multimedia related Product.</p>
<p><u>WinPad:</u> RP has decided to participate in the PIA
Project. Mr. Tsuji, President, sent a letter to Mr. Andy Grove, CEC
of<br/>
Intel. MS offered Haiku, Rover and WinPad to Sharp, so we need to develop a
clear vision on the OS plan for PIA.</p>
<p>Toshiba (ShigeruN)<br />

<u>Windows Pre Install to HDD/RTR:</u> Held meeting and agreed with
Toshiba's idea to preinstall Windows 3.0A Kanji on<br/>
HDD for the Japanese market. Toshiba plans to ship it as soon as possible.
Current plan is as follows:<br />
- PC with HD ship (RTR)<br />
+ Windows royalty is $22 and regular "MS-DOS" royalties on the
HDD<br />
+ Upgrade from 3.0A to 3.1: will be no royalty from Toshiba to MS<br />
- HD units standalone for endusers who bought a PC already<br />
+ in HDD, Windows and MS-DOS will be installed (Toshiba specific)<br />

+ MS-DOS will be free royalties, because Toshiba already pays for it for all the
systems they ship<br />
+ Windows royalty is $12, and upgrade from 3.0A to 3.1 is $10<br />
+ Toshiba puts in registration card and will share the database with MS<br
/>
+ Toshiba also puts a notice for availability of discount upgrade for all the
registered users<br />
+ Toshiba will upgrade all the registered users, and will report to MS the
number</p>
<p><b><u>Korea</u></b></p>

<p>Daewoo Telecom (DWT) (SIKim)<br />
Three agreements including a new two year agreement for system softwares with
an annual $3.75M M/C were signed by<br/>
DWT and are under MS internal processing. The agreements includes MS-DOS,
Windows, NT, and Works for MS-DOS <br/>
and Windows. We got their verbal commitment for WFW from C.M. Kim of DWT and
Steve Eleia of LE. The deal was<br/>
initiated by DWT. Leading Edge is considering Windows Sound System and Video
for Windows. DWT plans to<br/>
develop a new FAX machine which will connect to PCs on the network. Modular
Windows for FAX was introduced.<br/>
Their R&amp;D Team completed the testing of Hangeul DR-DOS 6, but the
DR-DOS issue has disappeared inside DWT<br/>
with signing of these new agreements.</p>
<p>Goldstar Co. Ltd. (GS) (CHCho)<br />
With our presentation for MS Modular Windows, the staffs of Planning,
R&amp;D, Sales and Marketing departments from<br/>
Consumer Products and computer divisions gathered to discuss their product
strategy to adopt Modular Windows. GS<br/>
especially showed strong interest in the Tandy VIS system. GS plans to
consider VIS system as their next strategic<br/>
project. Tandy will visit GS to discuss this issue in October.</p>
<p>Hyundai Electronics (HEI) DJChoi)<br />
HEI reorganized and the new GM, Moon-Kyung Kim, will take charge of the
computer division. This reorganization will<br/>
not affect the overseas business. HEI decided to assign Ed Thomas of HEA to
sign the MS license agreement for HEA's<br/>
effective decision making in US market. This assignment will be effective
until '93 and dependent on their overseas<br/>
marketing strategy. Hyundai has tried to participate in consumer electronics
products for a long time and we are<br/>
persuading them to initiate their product plans with Modular Windows. They
announced two 386SL notebook models</p>
<p>**MICROSOFT SECRET**</p>

<p>HIGHLY CONFIDENTIAL MS-PCA 2613480</p>
<p>5</p>
<hr />
<p>supporting PCMCIA which will be shipped to HEA and domestic markets.
Another 486 machine at competitive prices will<br/>
be announced in October.</p>
<p>Samsung Electronics (SEC) (JoonP)<br />
PC business has been decreasing, especially in their overseas shipment, and
their PPB is more than $3M and will<br/>
increase. After executing Amendment #2 in October, they will request another
PPB reduction plan. SEC executed an<br/>
agreement with IBM to ship 486 machines, MS-DOS and Windows in ROM, based on
IBM's specification. The first<br/>
shipment is anticipated in March '93. SEC forecasts 300K in 1993. Their
R&amp;D team has started designing the machines<br/>
with MS OAKs. SEC Multimedia TFT drafted the first specification of Tandy
VIS compatible machine. The spec was<br/>
sent to Redmond Multimedia group for their reference. For the domestic
market, SEC announced the aggressive price<br/>
of 486SX models. W1,7000,000 including VGA color monitor. This announcement
will result in a new price competition<br/>
and have an overall impact on the domestic PC market. Samsung and HP
officially announced their joint project PA<br/>
RISC workstation.</p>
<p>Trigem Computer (TG) (SIKim)<br />
All terms and conditions of Amendment #1 were agreed to, and the agreement is
under MS legal group's review. Trigem<br/>
cancelled their 386 Home PC for the domestic market and will launch new models
for the business market. They began<br/>
to ship WinWorks to Computer Technology.<br />
Jin-Koo Seo, Executive Director of R&amp;D Division, was named to take
charge of the licensing issues. He became their<br/>
new counterpart for MS agreements. Their Chairman, Y.T. Lee, will make a
presentation for the strategy for Korean PC<br/>
industries as a representative of the Korea Information System Industry
Association to Korea President, Noh Tae-Woo,<br/>
at the presidential office on October 28th.</p>
<p><b><u>Taiwan</u></b></p>
<p>Acer (PWong)<br />
We have concluded the 10K/year NT license and 25K/year Windows for Workgroups
license with Acer. We also<br/>
arranged for Tim Dunley, Product Manager of Modular Windows, to visit
Acer.</p>
<p>Autocomputer (EddieW)<br />
MED Agreement will be signed within two months, and starts to ship from Jan 1
1993.<br />
To ensure "standalone sales" are being kept to a minimum between now
and Jan 1st 1993, we have informed AUVA<br/>
to take solid actions immediately.<br />

1 Sending a warning letter to all of its channels and distributors to emphasize
that standalone sales seriously violates the<br/>
agreement between MS and AVUA[sic].<br />
2 To put warning letter on P.O., Shipping Document and
Documentation.</p>
<p>Copam (RLee)<br />
Copam used to ship the computer system with 90%+ by using their own brand with
Europe as their major market, but<br/>
now their strategy is changed, and in order to gain the profit and lower the
cost, they now want to also try OEM business.<br/>
At the same time, they feel that taking the motherboard business is another
way to get money.</p>
<p>DTK (RLee)<br />
Starting 10/92, DTK will pre-install Windows into the HDD with the computer
system. They will also include a MS<br/>
registration card in the package. Starting with Windows, they have worked
with RR Donnelley to get manuals and <br/>
diskettes and we hope this is a good first step. DTK is happy to work with
them, but they suggested more flexibility<br/>
provided by RRD would be better, such as setting up a warehouse in Taipei,
etc.</p>
<p>Lyi-Cheng (MaxKang)<br />
We had a final discussion with the Chairman of the Board and Finance Manager of
Lyi-Cheng and they fully understood<br/>
their responsibilities to reschedule the payment due to Microsoft before
further action is taken. (Note: We have audited<br/>
their books and awaiting final reports).</p>
<p>Personal Computer Upgrade (PCU) (Eddiew)<br />

MED program will be implemented in the near future. they signed two new OEM
customers, which are GEOS Data<br/>
System (H.K.) LTD and Hrisak Wolfgang Ges.M.B.H.</p>
<p>Plus &amp; Plus (EddieW)</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613481</p>
<p>6</p>
<hr />
<p>Plus &amp; Plus (EddieW)<br />

The account has filed chapter 11, and legal proceeding is in
process.</p>
<p>Twinhead (MazKang)<br />
Trying to sell them pc-works for sub-notebook, they also show great interest
in Microsoft Multimedia products and it's<br/>
good for both MS and Twinhead for a new business opportunity.</p>
<p><u>Hong Kong/PRC (SYang)</u></p>
<p>Ocean<br />
New customer. Was the largest DRI customer in Hong Kong. They are planning
to ship in late October and we are<br/>
helping them gear up all their products so they can ship very soon. This
company was recently listed on the Hong Kong<br/>
Stock Exchange, and for sure they are a healthy company with strong sales in
the coming year.</p>
<p>UO<br />
New customer. This company was founded by two gentlemen who were working at
Ocean. They were very aggressive<br/>
in the European market. We are negotiating a WinWorks contract with them, and
expect to close this deal by the end<br/>
of October.</p>

<p>Video Technology (VTC)<br />
They are increasing sales volume worldwide and Bosco Ho plans to negotiate a
new contract for MS-DOS and <br/>
Windows. This negotiation will include the commitment of MS-DOS and
per-processor deal in Windows. All future<br/>
machines manufactured from VTech will bundle MS-DOS and Windows. The
discussion of Windows for Workgroup is <br/>
also in the process. We expect them to sign the contract early next month.
In the meantime, Bosco had planned to <br/>
travel to the US to visit JoachimK and JeffL in Redmond to build a strong
relationship for both companies. Their major<br/>
concern in the US is trying to push out their multi-processor machines in the
market early next year, but their engineer<br/>
will need more technical support on Windows NT. They are also being
aggressive in the PRC market. They are <br/>
planning to build a channel in PRC to sell software, which is the Chinese
input method.</p>
<p><u>US OEMs</u></p>
<p>AT&amp;T (MarkBu)<br />
Although we were led to believe last month that the Telepen project was going
to General Magic this does not appear to<br/>
be the whole truth. It is true that GM will be involved with Magic Mail but
PenPoint does appear to have the design win<br/>
here. Karen Hargrove <u>has not been</u> very helpful in
providing OEM with details of her meetings with AT&amp;T. The
political<br/>
nature of the DSP/VCOS business has escalated to the point of Tom Sarazen
being fired over his role in working with<br/>
MS. I have asked AT&amp;T to provide me with a clear statement of
direction in how they would like to continue this<br/>
relationship with MS. Once reviewed we can set some more concrete steps with
the AT&amp;T MM group.</p>
<p>Compaq (MarkBa)<br />
During the month of September we focused our energies in two areas. The first
was the continued work on the joint<br/>
development projects for CIA, Plug and Play and Pen computing. Secondly, we
have been working on repositioning<br/>
Compaq as a more strategic business partner, specifically as it relates to NT
and WFW. There has also been a great<br/>
deal of effort in the preparation of Compaq'a role in the WFW Launch Event in
New York. Compaq's unit production and<br/>
sales continue to increase and they are forecasting approximately 250,000
systems per month for the rest of the calendar<br/>
year.</p>

<p>Dell Computer (CarlG)<br />
Dell continues to reject our WFW proposals on the basis that our offer is a
financial mis-fit with their "Build-to-order" <br/>
marketing model and our per copy pricing is too high. Executive discussion
between JoachimK and Joel Kocher yielded<br/>
no progress. DELL is fully aware of our announcement and launch events.
Progress was made developing a high<br/>
level of interest in FOGHORN. LOI and signed Amendment expected in early
October. DELL revealed plans to <br/>
announce a Video System in Q2 CY93. DELL's plans to offer their OEM Office
Bundle to the installed base has been<br/>
halted. Microsoft participated in DELL's first release of DELLWare with two
full page advertisements, one from Excel<br/>
and one from WinWord. CarlG has prepared a Sr. Partner Marketing Plan and
obtained necessary approvals to engage<br/>
DELL in the plan mid-semester. In exchange for Sr. Partner Funds, MS is
negotiating for one guaranteed page per issue,<br/>
content for which to be controlled by the MS account manager. If negotiations
are successful, expect to see WFW and<br/>
several MM Titles in the Nov-Dec issue and a feature on Access in the Jan
issue.</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613482</p>
<p>7</p>
<hr />
<p>Digital Equipment Corp (GregAn)<br />

The Open LAN Manager Conference, OEM Briefing and associated meetings with five
Digital visitors the week of Sept<br/>
21st consumed 25% of my time this month. All in all a good, productive week.
Other activities for the month included<br/>
finally being able to send a WFW pricing proposal to the DEC PC Group, preparing
a Multimedia pricing proposal to for<br/>
Bookshelf, MM Works, Word/Bookshelf bundle, MM Windows and MSCDEX, organized an
MS/DEC meeting re wireless<br/>
issues and opportunities. Also spent a fair amount of time laying the
groundwork for the next round of executive <br/>
meetings in October.</p>
<p>Hewlett Packard (DarcyH)<br />
PPG &mdash; Continuing to proceed on defining mutually interesting patent
portfolios for exchange in a cross-patent license.<br/>
Defining this with HP/MS Attorneys and HP VP Bob Frankenberg.<br />
HP Corvallis &mdash; Delivered a proposal for Pendragon, and are
coordinating meetings with HP Bristol for the Penlizard<br/>
investigation. HP has decided to initially release a Pendragon and "Small
Pendragon" that will provide a lower end entry<br/>
into the market. We are discussing this strategy in a meeting in early
October, and are also pushing for the Mobile<br/>
Windows design win for this system.<br />
HP Grenoble &mdash; HP has signed a license for Sparta! They will
initially commit to 25K/yr at $8 per system. HP will also<br/>
increase their Windows commitment to 150K/yr. We had one meeting on the Pike
project which is a desk-slate machine<br/>
that will allow users to send and annotate faxes over same line as their phone.
We have a meeting schuled with<br/>
KarenH for IFAX and the MOD-Win guys in early October to investigate best OS
for this platform. Grenoble has also<br/>
asked for quotes on mice for 100-150K/yr. DarcyH working with DavePru to
provide.<br />

HP Sunnyvale &mdash; HP Sunnyvale has absorbed the Network Server Division.
As result, they are still finalizing a re-org,<br/>
and have asked to postpone a meeting on NT until mid-October. The TVA project
has been moved from Sunnyvale<br/>
to the Personal Software Division (formerly the New Wave division, under Webb
McKinney). DarcyH is working to set up a<br/>
meeting with Webb to discuss strategy. In the interim, we are continuing to
work with the TVA project group. HP claims<br/>
we have a superior ISV and service provide strategy, but is still determining
if Haiku is best OS strategy. HP is working<br/>
to make a decision with TVA by early October. For licensing, at this time we
are very far apart, and are postponing any<br/>
further discussions until HP gives clear signals they want Haiku.<br />
Personal Software Division &mdash; We are working on a strategy for
cooperation on HP Openview and Hermes. HP has <br/>
expressed an interest in a publicly stated commitment for cooperation. MS is
interested, and DarcyH is working to set up<br/>
meeting for business discussions.<br />
HP Colorado Networks Division (CND)/Information Networks Division (IND)<br
/>
We are in the final stages of an NT source license. HP has verbally stated a
desire to move towards a more aggressive<br/>
commitment to NT on PA. DarcyH is working to set an executive meeting with
PaulMa to discuss terms of such an agreement.</p>
<p>Insignia (PeteP)<br />
Insignia has now withdrawn their application stating an intent to use
"SoftWindows" as a trademark. This means the<br/>
amendment draft to add Windows to their agreement and license them to deliver
a product based on SoftPC with <br/>
Windows can be resubmitted in October. I expect that Insignia will avoid
pending price increases and sign this<br/>
amendment in October even though their product won't be available until
January, 1993. Insignia was represented at the<br/>
OEM briefing by a product marketing manager from the UK.</p>

<p>NCR (MarkBu)<br />
There are two significant events in September with NCR. The first was the
Executive Review on Sept. 16 and the<br/>
second was that the Windows Amendment was finally executed. The Executive
Review was very successful. The focus<br/>
of the meeting was for MS to gain an understanding of NCR's architectural and
systems strategy. Key to gaining<br/>
corporate commitment to NT will be the feasibility of porting NT to the high
end loosely coupled systems in NCR's 3600<br/>
and 3700 line. We will be pursuing this opportunity over the next couple of
months. Additional areas of interest were in<br/>
Object Management and development of Multimedia capabilities over the network.
With the Windows Amendment now<br/>
finally signed NCR has committed to a minimum of 100K Windows units per year.
This increases NCR's commitment by<br/>
4.4M over the next two years, the first time NCR has been willing to step up to
additional minimums since the OS/2<br/>
problems from a year ago. The MS-Mail license with StarGroup continues to be a
trouble spot and is still not resolved.<br/>
The problems stem from NCR's concern that with the release of the DOS client in
MS-DOS 6 and the Windows Mail<br/>
client in Windows for Workgroups, NCR's potential market will be drastically
reduced and they will be unable to meet<br/>
their minimum obligations. There is still pressure to complete this license
but it may be for a significantly<br/>
reduced Minimum Commitment. A follow-up meeting with the NCR Dundee was held
in Scotland with Bill Anderson,<br/>
John Hall and David McBride attending. This was a very productive and
successful meeting with NCR agreeing to show</p>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613483</p>
<p>8</p>
<hr />
<p>NT on an ATM and the next big banking show in Europe. Jim Adamson
attended the majority of the meeting and has<br/>
given his blessing to move forward with the NT investigation. As mentioned
before Adamson controls the Financial end<br/>
of NCR's business and support from him for NT would have dramatic impact
throughout Financial and Retail. We also<br/>
met with both Safari and Clemson to discuss Pen opportunities. It appears all
but a high end notepad has been killed in<br/>
Clemson due to lack of market acceptance for the 3125. This puts on hold all
smaller form factors. The only thing that<br/>
could change this is if there is a large market opportunity for a small form
factor the 3115 could be revived. NCR also<br/>
attended the LM Council meeting and was very disturbed at some of the
architectural decisions we have made with NT. (See issues)</p>

<p>Unisys (PeteP)<br />
An amendment draft will be delivered in October involving WFW, Windows NT,
registration cards in shipments of all MS <br/>
products, and other important, housekeeping things. We have reached tentative
agreement that certain network cards<br/>
will be shipped on a "per-system" basis with WFW as an element of the
system accessory kit which includes the <br/>
keyboard, mouse, operating system, etc. They are eager to hear details about
the strategic integrator program which we<br/>
should be ready to present later in October. Unisys plans to begin
pre-installing all their systems on a worldwide basis in<br/>
4-5 months, to coincide with the release and availability of their new network
ready systems next year. They are also<br/>
interested in licensing C7 sources for portation to their CTOS platform and as
the compatibility story between platforms.<br/>
This is important because of the mutual work being done on WOSA specifications
for the financial industry and <br/>
commitments Unisys has made to support our architecture.</p>
<p>AT&amp;T/NCR Projects (TomDa)<br />
Currently, KarenH of ATDB is acting as the interface with AT&amp;T on the
Telepen Project. This is currently not an active<br/>
project for OEM as this project is being driven by the Strider Group with the
direct involvement of BillG. Billand of <br/>
USFG met with the NCR ATM group in Dundee Scotland on 9/15 to discuss the ATM
project. The AT&amp;T Safari Group<br/>
has set out to design and build a convertible machine. The objective of the
Safari Project is to achieve a Mobile <br/>
Windows design win. This past month MarkBu and TomDa met with the Safari
group and a group from NCR Clemson <br/>
(the NCR 3125 group). We discussed NCR product plans, Mobile Windows, CIA,
etc. TomDa and MarkBu plan a follow<br/>
on meeting with the Safari group in Somerset, NJ this month. NCR is very
interested in a protect mode OS for the POS<br/>
Project. MS-DOS 7.0 was a candidate for NCR's POS (Point of Sale) machines
but this product has now been delayed. <br/>
MarkBu and TomDa are tentatively scheduled to meet with the NCR POS group in
Atlanta later this month to discuss<br/>
NCR's POS requirements and to explore alternatives.</p>
<p>Compaq Projects<br />

Convertible Project &mdash; Compaq is planning to ship a convertible
machine in the mid '93 timeframe. We are working with<br/>
Compaq to get their feedback on Mobile Windows, however Mobile Windows is not
scheduled to ship until September<br/>
'93. Compaq has provided some details on their convertible plans. Compaq has
agreed to review the Mobile Windows<br/>
spec but a follow on meeting is needed. The objective of this meeting should
be to get Compaq's support and<br/>
commitment to Mobile Windows upon the shipment of this product.</p>
<p>CIA Project &mdash; Compaq's plans are very much in the formative
stages. Compaq has requested that we meet to discuss<br/>
Intel/VLSI issues. This meeting has not yet been confirmed.</p>
<p>Plug and Play Project &mdash; Weekly conference calls have been
ongoing with CarlS, TomLe, TomDa and Compaq to <br/>
discuss the . [sic] Compaq intends to ship systems in Q293 and would like
these systems to take advantage of the Win 3.1<br/>
Plug and Play enhancements. MS Systems is not clear on Compaq's requirements
for these enhancements. Systems <br/>
would also prefer to remain focused on Chicago. Compaq has committed to
provide MS with a letter clearly<br/>
documenting their requirements.<br />

HP Projects &mdash; This last month we provided a response to HP's RFP for
Pendragon. In this response we specified Mobile<br/>
Windows.<br />
Pen Dragon Project &mdash; LuisT, DarcyH and TomDa are scheduled to meet
with HP this week to discuss this RFP response.<br/>
The object of the meeting is to discuss and resolve any outstanding issues
concerning this response. We will also<br/>
discuss the software suite for Mobile Windows, handwriting recognition,
etc.<br />
Pen Lizard Project &mdash; ByronB LloydFr, TomDa and DarcyH are scheduled
to meet with HP this week to discuss. The<br/>
objective of the meeting is to discuss and influence HP's PDA plans. A follow
on meeting with the CIA group is also<br/>
planned with HP in Bristol England. The Bristol R&amp;D group is
currently conducting the investigation of HP's CIA project.</p>
<p>**MICROSOFT SECRET**</p>

<p>HIGHLY CONFIDENTIAL MS-PCA 2613484</p>
<p>9</p>
<hr />
<p><b><u>FER OEMs</u></b></p>
<p>Acer America (PeteM)<br />
<ul>
<li> Commit to develop a multimedia player based on Modular Windows.
Acer America completed the cost and<br/>
feasibility analysis. The project has been turned over to the Acer, Inc. in
Taiwan.</li>
<li> In addition to Intel based high-end multiprocessor servers that
support Windows NT, Acer will also introduce low cost<br/>
NT desktop based on MIPS processor.</li>
<li> Acer is interested in considering a new software bundle as a
follow-on or replacement for Power-to-Choose application bundle.</li>
</ul>
</p>
<p>Fujitsu (SteveMc)<br />

Executive Review with Fujitsu J top engineering contacts was held after OEM
Briefing. Sadao Fukatsu, Director of<br/>
Software Engineering at FPS, attended. He may become main OEM contact for
Fujitsu in the US regarding the MS Systems<br/>
platform evangelization. Near term objective is to influence FPS to implement
the MS DOS 5 and Win 3.1 platform<br/>
on their portable (old Poqet brand) PC line.</p>
<p>Hyundai America (TomBru)<br />
Hyundai America is announcing a new line of PCs which will be RTR Windows
machines. TomBru worked with Systems<br/>
Marketing to provide a quote from one of MS's Vice Presidents giving a
favorable opinion of Hyundai's decision to<br/>
participate in MS's RTR program. JoonP stated that Hyundai Electronics will
sign a letter authorizing Ed Thomas as the<br/>
agent for Hyundai to sign agreements between MS and Hyundai.</p>
<p>NEC Technology (SteveMc)<br />
Due to a late start, and confusion regarding the Select Solutions program
distribution strategy (i.e. first product delivered<br/>
to market end of August, catalogs targeted at direct sales channel yet to go
out), it appears that this effort is in deep<br/>
trouble already. Process to extend the Office agreement for an additional six
months, including reduced commitment<br/>
and higher royalty pricing, is now underway. New "Ready" line of
entry level PCs, targeted for distribution through mass<br/>
merchants, started shipping end of September. NECT's strategy, of offering
"high end" easy to use PCs to end users<br/>
through mass merchants, appears to have little chance of succeeding! To-date
they have not established a wide <br/>
distribution channel (i.e. only Lechmere and Brandsmart, regional resellers,
have agreed to carry the product line). Also,<br/>
it is not clear that end users will pay the premium price that NECT is
offering for an entry level PC (i.e. "home office"<br/>
type). Discussions with high level contacts leads SteveMc to believe that
there is a growing sense of frustration at<br/>
Boxborough related to their lack of success to-date in growing their PC
business (i.e. lack of coherent direction, little<br/>
communication and poor execution)! Monitor and CD-ROM business remains
healthy.</p>

<p>Toshiba America (TomBru)<br />
Tom Scott, VP of Sales, explained how TAI's sales organization is set up. Tom
Scott committed to get Greg Cegan, in<br/>
charge of special bids within TAI Sales, in touch with TomBru to look at the
number of Requests for Proposal that include<br/>
Windows as a necessary requirement in the proposal. From this data, TomBru
will be able to quantify the opportunities<br/>
that TAI is missing by not shipping Windows. In competitive situations, TAI
must add an additional $80 to every system<br/>
quoted to include retail versions of Windows. This information will be
presented to Steve Lair, VP of Marketing, at TAI in<br/>
the future. TomBru also worked with the Windows for Pen Group (Mobile Windows)
to help TAI begin writing their Pen<br/>
Driver for the upcoming Tablet which will show at Comdex. This driver should
be finished by TAI by the end of October.</p>
<p>Printer Business (RichAb)<br />
<ul>
<li> HP - We had a successful meeting between Maritz, Carnahan, and
Belluzzo, where they agreed upon the essential<br/>
business terms for a printing technology deal. The agreement consists of two
parts: $1.5 million for the user<br/>
interface and $8 million for RBA royalties to accrue in 1994. $3 million of the
RBA royalty will be non-refundable and<br/>
prepaid in 1993. There remains significant work to conclude a contract covering
this arrangement. Key items to be<br/>
worked out in early October are the unit royalty schedules for ink jet and laser
printers and the project milestones in<br/>
1993 to which the $3 million pre payment will be tied to. Since exact
deliverables cannot be well defined for the RBA<br/>
portion of the agreement, a process must be defined by which both companies work
toward closure on specific<br/>
implementations.</li>
<li> Compaq - productive meeting was held in Houston where we demonstrated
and briefed the Compaq printing<br/>
marketing and engineering team on our technology. We had preliminary business
discussions as well. Compaq is <br/>
giving us every indication that they will buy our technology for use in both
laser and ink jet products.</li>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613485</p>
<p>10</p>

<hr />
<li> Canon - A meeting was held with Kadokura of Canon to discus the
deadlock we have on NDA. Kadokura agreed to<br/>
go to Canon corporate legal with Mr. Adachi of CIS assistance to get approval
on our agreement. The sticking point<br/>
continues to be Canon's "...reduced to writing..." requirement of
confidential information.</li>
<li> HP - A conference call was held between Doug McChord of HP - GHC
and Adam Bosworth where HP shared their <br/>
thoughts on an "electronic briefcase" personal image database
product. HP wanted to gauge our interest in such an<br/>
application, one they see as potentially creating demand for their scanner
products.</li>
</ul>
<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613486</p>
<p>11</p>
<hr />
<p><b>MS-DOS 5.0/Windows Watch</b></p>
<p><b>Japan</b><br/>
<table>
<tr><th>Company<th>MS-DOS 5 %<th>Win 3 %<th>Win 3
Pre-Install %<th>RTR(Y/N)<th>Reg Card(Y/N)</tr>
<tr><td>NEC<td>5%<td>5%<td>1%<td>Y(partial)&
lt;td>N</tr>
<tr><td>Fujitsu<td>10%<td>7%<td>-<td>N<td
>N</tr>
<tr><td>Toshiba<td>5%<td>10%<td>-<td>N<tD
>N</tr>
<tr><td>Epson<td>3%<td>12%<td>-<td>N<td&g
t;N</tr>
<tr><td>IBM-J<td>90%<td>20%<td>10%<td>Y(part
ial)<td>N</tr>
<tr><td>Sanyo<td>90%<td>50%<td>45%<td>Y(part
ial)<td>N</tr>
</table>
</p>
<p><b>Korea</b><br/>
<table>
<tr><th>Company<th>MS-DOS 5 %<th>Win 3 %<th>Win 3
Pre-Install %<th>RTR(Y/N)<th>Reg Card(Y/N)</tr>
<tr><td>Daewoo<td>100%<td>65%<td>50%<td>Y<
;td>N</tr>
<tr><td>Goldstar<td>90%<td>70%<td>100%<td>N&
lt;td>N</tr>
<tr><td>Samsung<td>100%<td>60%<td>80%<td>Y&l
t;td>N</tr>
<tr><td>Hyundai<td>95%<td>66%<td>95%<td>Y<
;td>N</tr>
<tr><td>Trigem<td>100%<td>40%<td>100%<td>Y&l
t;td>N</tr>
<tr><td>Tongyang
Nylon<td>100%<td>100%<td>100%<td>N<td>N</tr>

</table>
<p><b>Taiwan</b><br/>
<table>
<tr><th>Company<th>MS-DOS 5 %<th>Win 3 %<th>Win 3
Pre-Install %<th>RTR(Y/N)<th>Reg Card(Y/N)</tr>
<tr><td>Acer<td>100%<td>50%<td>15%<td>Y<t
d>N</tr>
<tr><td>Arche<td>100%<td>43%<td>-<td><td&
gt;</tr>
<tr><td>Autocomputer<td>-<td>-<td>-<td><t
d></tr>
<tr><td>CAF<td>0%<td>-<td>-<td><td><
;/tr>
<tr><td>Chaplet<td>100%<td>45%<td>-<td><t
d></tr>
<tr><td>Chicony<td>100%<td>1.4%<td>-<td><
td></tr>
<tr><td>Copam<td>100%<td>45%<td>-<td><td&
gt;</tr>
<tr><td>DTK<td>100%<td>0%<td>-<td><td>
</tr>
<tr><td>Lyi-Cheng<td>100%<td>10%<td>-<td><
;td></tr>
<tr><td>Mitac<td>100%<td>10%<td>-<td><td&
gt;</tr>
<tr><td>Modem<td>8%<td>80%<td>-<td><td>
;</tr>
<tr><td>Mustek<td>100%<td>17%<td>-<td><td
></tr>
<tr><td>P.C.U.<td>100%<td>50%<td>-<td><td
></tr>
<tr><td>Sampo<td>100%<td>-<td>-<td><td>
;</tr>
<tr><td>Tatung<td>100%<td>30%<td>-<td><td
></tr>
<tr><td>Twinhead<td>100%<td>5%<td>-<td><t
d></tr>
</table></p>
<p><b>Hong Kong/PRC</b><br/>
<table>
<tr><th>Company<th>MS-DOS 5 %<th>Win 3 %<th>Win 3
Pre-Install %<th>RTR(Y/N)<th>Reg Card(Y/N)</tr>
<tr><td>Bondwell<td>100%<td>-<td>-<td><td
></tr>
<tr><td>Elite<td>-<td>-<td>-<td><td>&l
t;/tr>
<tr><td>Legend<td>100%<td>-<td>-<td><td&g
t;</tr>
<tr><td>Ocean<td>-<td>-<td>-<td><td>&l
t;/tr>
<tr><td>Porro<td>100%<td>-<td>-<td><td>
;</tr>
<tr><td>VTC<td>100%<td>40%<td>100%<td><td
></tr>
<tr><td>UO<td>-<td>-<td>-<td><td></
tr>
</table></p>
<p><b>US OEMs</b><br/>
<table>
<tr><th>Company<th>MS-DOS 5 %<th>Win 3 %<th>Win 3
Pre-Install %<th>RTR(Y/N)<th>Reg Card(Y/N)</tr>
<tr><td>Compaq<td>90%<td>40%<td>95%<td>Y<
td>Y</tr>
<tr><td>Dell<td>93%<td>100%<td>65%<td>N<t
d>N</tr>
<tr><td>Digital<td>100%<td>100%<td>100%<td>N
<td>N</tr>
<tr><td>HP<td<98%<td>10%<td>0%<td>N<td>
;N</tr>
<tr><td>NCR<td>85%<td>15%<td>100%<td>Y<td
>Y</tr>
<tr><td>Unisys<td>97%<td>97%<td>5%<td>N<t
d>N</tr>
<tr><td>Canon
USA<td>100%<td>66%<td>66%<td>N/A<td>N</tr>
<tr><td>Fujitsu
PS<td>0%<td>0%<td>0%<td>N/A<td>N</tr>
<tr><td>NEC
Tech<td>88%<td>100%<td>90%<td>Y<td>N</tr>
</table>

<p>**MICROSOFT SECRET**</p>
<p>HIGHLY CONFIDENTIAL MS-PCA 2613487</p>
<p>12</p>

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