Bonum Certa Men Certa

'New' Leaked E-mails from Microsoft Show How Microsoft Brands 'PCs' Windows

Seal



Summary: Bill Gates' sticker games and many other antitrust exhibits that show Microsoft's approach towards competition

SOME MORE NEW EXHIBITS are coming out of Comes vs. Microsoft, thanks in part to the work of Groklaw contributors (special thanks to Pogson with a pointer to the work of "Superbowl"). The following new batch helps show some of the hardware market distortion we've been covering in the context of Comes vs. Microsoft, e.g. in:





More exhibits are useful to have in textual form because people just won't bother reading an unsorted archive of scans in PDF form. The posts above cover parts of a stash of Intel-related E-mails, but we missed so many more. "We could use MDA incentive to convince Oems to refere to the PCs they license Windows on as WindowsPC’s rather than IBM compatible," Bill Gates states on in of the exhibits below. "We could incent them to use this designation sort of like we do the logo. If we were successful the world would change the way it talks about PCs to WindowsPCs."

Nowadays Microsoft tries to mix the terms "Windows" and "PC", making them increasingly synonymous. Let us handle one exhibit at a time and summarise the key points presented therein

PXE 7578



Gist: Message to Steve Ballmer about OS/2 and spitfire

MS-PCAIA2 000001006 CONFIDENTIAL

To: steveb Cc: darrenr jeffr jimall Subject: Spitfire

Date: Mon May 6 15:45:07 1991

Logically spitfire should be managed out of our group in vancouver from a development point of view. Since they will connect our file sharing message store with everything thru gateways and they will also connect spitfire to everything thru gateways it makes non sense for them not to have spitfire. Spitfire cant be released without testing all the gateways and it has to track any changes in the fie sharing message store.

>From a marketing point of view our gateways and spitfire should be sold the same way - same channels same support. I think it makes sense for WGA to do this. However I think its too bad to take things away from dwayne. WGA has no clear policy about whether gateways/spitfire have special distribution.

If we agree on this then we need to come up with some kind of transition plan. I present it for discussion at this point.

This is separate from the question of whether spitfire should be based on 1.3, 2.0 or NT in its first release.

From markwo Tue May 7 11:51:29 1991 To: mikemap Subject: BofA Update 5/6/91 Cc: barbr dianek joef joes markw martat michelg meilf pamelab richmac tamibro Date: Tue May 7 11:50:03 1991

The U.S. Division had a fairly arduous implementation of LAN Manager. The configuration with SQL, Lotus Notes, Windows Workstation from ADS along with the applications was aggressive to start with. We had on-site assistance from PSS for two weeks, and in the eleventh hour we discovered a "bug" in LAN Man which was causing all these problems. PSS and NEU are cognizant of all the installation issues with this site. Currently the site is running fairly smooth, but the start up experience has left BofA senior management with some dubious thoughts about our solutions.

The next site, is scheduled for N.Y. at the end of this month. Management is concenred whether this platform is "bullet proof" enough to roll out to 20 other sites. The visibility of this project has reached to Peter Hill and Martin Stein. There is a feeling that this project should be turned over to IBM and use LAN Server.

On another note, IBM is now aggressively marketing OS/2 2.0 on the desktop. They are starting with the line of business areas within BofA. Theyu have a fairly large poject started with IBM building a custom front-end for OS/2 2.0 for their branch automation. IBM is astutely positiioning OS/2 for their

MS 504703 CONFIDENTIAL

Plaintiff's Exhibit 7578 Comes v Microsoft



PXE 3800 is illegible (says "Superbowl")

PXE 39242 - NT5.1 is a glorified SP



Gist: Bill Veghte (now in HP) responds to a message which reveals how the equivalent of a Service Pack is something Microsoft charges a lot of money for. "One alternative is to acknowledge the reality that NT5.1 release is simply a glorified service pack and turn our development/release cycles to the more aggressive release in Q2 2000 that can be a real substitute for Win98," says the message.

PLAINTIFF'S EXHIBIT 3924 Comes v. Microsoft

GOVERNMENT EXHIBIT 426

From: Bill Veghte Sent: Wednesday, January 28, 1998 4:55 PM To: Carl Stork (Exchange), Jim Allchin (Exchange); Moshe Dunie; S. Somasegar; Jawad Khaki; Deborah Black; Lou Perazzoli; Tom Phillips; Ed Stubbs Subject: RE: 1999 Release Plans

Carl brings up excellent points here. The challenge we now have with the 5.x release is that it is serving multiple masters. With discipline, we can release product in Q2 that will accomplish the following: (a) 5.x that the marketing folks can trumpet to push fols that haven't upgraded yet, (b) fix some serious holes that have become obvious as we go thru shipping NT5. (c) refresh vehicle for OEMs. It will not accomplish our goal of preventing a Win98 SP nor will it significantly richen the NT mix in the OEM channel beyond what we accomplish with NT5.

Original Message From: Carl Stork (Exchange) Sent: Wednesday, January 28, 1998 4:39 PM To: Jimm Allchin (Exchange); Moshe Dunie; S. Somasegar; Bill Veghte; Jawad Khaki; Deborah Black; Lou Perazzoli; Tom Phillips Subject: 1999 Pelease Plans

There have been several developments this week that change the assumptions behind the 1999 product releasae plans in the 3-Year plan. Our original plan was as follows (taken from one of our slide sets) * Focus new development efforts exclusively on NT code base to avoid Win98 OSR * No new hardware support for Win98, and minimal SP release. (e.g. IE5 only) * Create NT5.1 schedule-driven to meet OEM fall '99 product lines * Add hardware support & features to NT focused on getting OEM runrate at the high end consumer market.

Here is new information that we have learned this week: * If NT5.1 is priced at $100, and Win98 is priced at $50, OEMS will ship Win98. They will acquire any new hardware support components from third parties (IHVs, Phoenix, Systemsoft, Intel, etc) or not ship the hardware. NT5.1 is not compelling in the consumer market segment - it does not have sufficient appeal to support a $50 price increase (and bear risk the compatibility, driver coverage). * NT5.1 will not be a "consumer" release that pushes OEMs to pick up for their customer lines - it is a "service pack" to NTW5.0. More time is needed to accomplish this feature set for OEMS (and end-users). * There are some hardware features that will become mainstream in Fall'99 that require some OS changes, notably those in the 440BX, PIIX6 and Camino chipset. At a minimum these include a chipset minipoort, and 1394 OHCI support, possibly with 1394 storage. If Microsoft does not supply these in an OSR,k then other distribution mechanisms need to be established. This becomes messy as there are components which are not on the distribution media available from our authorized replicators. * There will be a vibrant third party markert in futher advancing hardware support in Win98 - ranging from Intel to IHVs to companies like Pheonix and Systemsoft. At a minimum, we will have all sorts of upgrade/compatibility challenges as we try and upgrad the installed base to NT6. the design, quality & interoperability of third party hardware support will be lowe4r, and over time this will lead to increased support problems (for example, we are shipping IA-SPOX in Win98 in order to support installed base of software modems). * There are a number of componentsd that will most likely need to be shipped on Win98, including IE5, COM+ and DirectX. There are others like DeviceBay, xDSL, or Intel's video phone work that are important for partners. * Feedback from OEM partners is the level of integratrion that we did for IE4 in OSR 2.5 was bad both from customer experience and manufacturing perspective. The OEM group will push very hard to have a fully inte4grated OPK for IE5.

Overall the proposed plan does not (a) meet the requirements of ourt OEM customers to provide a release that they would ship into the high end consumer systems, (b) meet their needs for new hardware support, and (c) eliminate the need to develo Win98 OSRs.

Given these realities, I believe we need to either reset our priorities for the SP2 and/or consider alternatives.

One alternative is to acknowledge the reality that NT5.1 release is simply a glorified service pack and turn our development/release cycles to the more aggressive release in Q2 2000 that can be a real substitute for Win98 with a $50+ price point. Given that we'll need to provide a Win98 SP/OSR with IE5/DX6/COM+, let's target it for Fall '99 pre-install needs with the minimum new hardware support needed for platform quality and a smooth upgrade opportunity for NT6.

MS7 005950 CONFIDENTIAL

MS-PCA 1093506



PXE 6928_L



Gist: Highly confidential Office XP + Windows XP + SharePoint thoughts (bundling and lock-in)

Plaintiff's Exhibit 6928_L Comes v. Microsoft

From: Anders Brown Sent: Tuesday, February 06, 2001 9:59 PM To: Steven Sinofsky; Charles Stevens; Joseph Krawaczak Cc: John Vail Subject: FW: Office in the Solution Clusters

Fyi - just keeping you in the loop wrt to Office and Sable thoughts...

Original Message From: Anders Brown Sent: Tuesday, February 06, 2001 9:55 PM To: Dan Neault; Valerie Olague; Jay Jamison Cc: Sable Solution Cluster Leads Subject: Office in the Solution Clusters

Based on Orlando's comment that desktop pull-through was one of the core metrics we should score the rankings on, I've taken a look at where Office is today in the scenarios, and added it to a few others where it should make sense. I've updated the attached ppt (text in red) to reflect my comments... below is a bit more description of areas that need attention/discussion.

Corporate Intra/Internet Solution [Office is currently in this scenario] This one is great --- Office shuold just be the front end to this scenarios. Value-add the XP provides is (1) the addition of Share Point Team services to an enterprise, and (2) a front end add-on for Share Point Portal Server (Tahoe). Tahoe actually provides the add-on, but it integrates into Office. It's a much better story here with Office XP than with Office 2000.

Only thing we need to add is the revenue assocaited with upgrades: about $150 per enterprise customer. I assume we have some CAL number floating out there and we should just add this to it...

Business Performance Analysis [Office is currently in this scenario] Office is in this scenario -- and should be -- but to be clear, we need to understand what Office needs to do a bit more to be the front end. In a perfect world, we'd have Ofgfice be the sole front end, but at this point I don't believe Office can't stand up and say it "does BI" like Knosys' and Cognos' of the world (i.e. hard core OLAP support, "walking the edge of the cube", "drill through", etc). That said, Office should be part of this scenario, and again we should add the CALs @ $150/desktop. It just might take a bit more work to really nail the value-add of Office over the partner solution.

Media Services [Office is not currently in this scenario] Office should be placed in this solution cluster. It just makes sens that if we go out with a broader collaboration story, that this includes Office. This is actually probably better names something like "Next-Generation Collaboration" solution, or something that moves the name from what a simple technology (media services) to what it really is: the next wave of collaboration and communication services with Office and Windows.

Accelerated Deployment for the XP Desktop [this scenario does not exist] This was a great suggestion earlier by sshay... we should move forward on this one, and of course the market opportuniity for Office is at $150/desktop. Think I'd change the name to include something around Productivbity: "Advanced Desktiop Productivity and Accelerated Deployment" or something... it would be simply Office XP + Windows XP + SharePoint Teamn Services plus deploymenty services. I believe this one is in process already...

Note the updated comments in the attached PPT - these should be merged into the most recent deck. I'll give Valerie and Jay a call tomorrow AM.

-anders

HIGHLY CONFIDENTIAL

MS/CR 002842 CONFIDENTIAL



PXE 4434



Gist: Microsoft and Zeos licence



PLAINTIFF'S EXHIBIT 4434 Comes v. Microsoft

Carl Sittig - OEM Sales Microsoft Corporation One Microsoft Way Redmond, WA 98052-6399

Tel 206 936 6348 Fax 206 93MSFAX

Microsoft(r)

October 12, 1993

Mr. Jum Ticknor Zeos International, LTD 1301 Industrial Blvd. Minneapolis, MN 55413

RE: Side Letter to the Zeos International, LTD and Microsoft Corporation License Agreement, dated June 1, 1990, Contract No. 4934-0130 ("Agreement").

Dear Jim:

I received your signed copies of Ammendment #7 to the Agreement, along with your requested changes to Exhibit X, NAMES AND LOCATIONS OF COMPANY SUBSIDIARIES. These changes have been made and the new Exhibit X has replaced the Exhibit X in the Ammendment you signed. Attached is a copy of the new Exhibit XX for your review. Please file this letter with Ammendment #7 when you receive your executed copy from Microsoft.

Please call if you have any questions.

Sincerely,

[signature]

Carl Sittig OEM Account Manager

Microsoft Corporation is an equal opportunity employer.

MS 0039898 CONFIDENTIAL



PXE 4430



Gist: Amendment to the above

PLAINTIFF'S EXHIBIT 4430 Comes v. Microsoft

AMMENDMENT

AMMENDMENT NUMBER 8 to the MICROSOFT OEM LICENSE AGREEMENT between MICROSOFT CORPORATION, a Washington U.S.A. Corporation and ZEOS INTERNATIONAL, LTD, a Corporation of Minnesota MICROSOFT LICENSE # 4934-0130, dated June 1, 1990

This Ammendment to the License Agreement between MICROSOFT CORPORATION ("MS") and ("COMPANY") dated ("Agreement"), is made and entered into this 31st Day of January, 1995.

The parties agree to ammend the Agreement as follows:

1. The Agreement mentioned shall be extended for a period of three (3) months starting January 31, 1995 and ending April 30, 1995.

2. In the event of inconsistencies between the Agreement and this Amendment, the terms and conditions of the Amendment shall be controlling.

IN WITNESS WHEREOF, the parties have executed this Amendment to the License Agreement as of the date set forth above. All signed copies of this Amendment to the License Agreement shall be deemed originals. This Amendment does not constitute an offer by MS. This Amendment shall be effective upon execution on behalf of COMPANY and MS by their duly authorized representatives.

MICROSOFT CORPORATION [signature] By

Kathleen P. Graves Name (Print)

OEM Group Manager Title

0-1-95 Date

ZEOS INTERNATIONAL LTD

[signature] by

Judi Larkin Name (Printed)

VP Administration Title

1/31/95 Date

Signed Original

Microsoft License No. 4934-0130

MSC 5007875 Highly Confidential

PLAINTIFF'S Exhibit 1309 C.A. No. 2:96CV645B

MS-PCA 1194018 CONFIDENTIAL



PXE 4490



Gist: Joachim Kempin pressures along with Gates for labelling computers "Windows"

PLAINTIFF'S EXHIBIT 4490 Comes v Microsoft

From: Joachim Kempin Sent: Tuesday, August 27, 1996 11:34 AM To: Marshall Brumer Subject: RE: Intel payments for logo usage

they continue to play hardball.

From: Marshal Brumer Sent: Monday, August 26, 1996 9:03 AM To: Joachim Kempin Subject: FW: Intel paymentsd for logo usage

do you know the status of this? it is coming up in the press now.

From: Bill Gates Sent: Sunday, June 09, 1996 10:11 PM To: Joachim Kempin Cc: Paul Maritz; Marshall Brumer; Rich Tong; Jonathan Roberts; David Heiner Subject: Intel payments for logo usage

I decided to send this issue to a small group

Intel pays out about $500M per year in advertising incentive money for people to use their logo. It is serious money. When Compaq decided to join the program it cost them a lot. They sort of hope IBM doesn't join since that would also cost them a lot.

They have adopted a policy that if there is more than one logo then they pay a lot less. I told Andy that they should just reduce payments after 2 logos (theirsd and one others). He tried to say the lawyers though that was a problem and I told him that was real nonsense since they wouldn't be saying anything about the second logo and whose it is. He said he is the decision maker on this issue. He said he will talk to the lawyers again. I told him I didn't want him to hide behind the lawyers since dropping payments after 2 is certainly as open as dropping payments after 1. We may have to get our lawyers to talk to their lawyers at some point. Joachim - go ahead and talk to Ottelini. If we can't get it structurte this way I will want the lawyers to give their opinion and I will make one more appeal to Andy.

If it turns out we can't get this solved I have another idea. Itsd an idea that might make sense even if the logo thing stays intact. We could use MDA incentive to convince Oems to refere to the PCs they license Windows on as WindowsPC's rather than IBM compatible. We could incent them to use this designation sort of like we do the logo. If we were successful the world would change the way it talks about PCs to WindowsPCs.

MS-PCA 2618927

HIGHLY CONFIDENTIAL



PXE 5045



Gist: Pricing of Windows debated internally

Message 27: From russw Thu Jun 8 13:20:21 1989 To: richab Subject: price increase for retail Date: Thu Jun 8 13:17:56 1989

I haven't done anything with this. I had sent you some mail suggesting that we add on an explanation of our run-time policies and how they may relate to the pricing decision i.e. when do we drop it if ever? before proceeding.

we should wrap this up soon since it was important for the oem pricing justification to our oem customers

thx

From richab Fri May 26 19:02:15 1989 To: russw Subject: Windows /286: Recommended SRP change Date: Fri May 26 19:00:11 1989

Russ: I'd like to propose that we raise the SRP of Windows /286 from $99 to $129 at version 3.0. There are several reasons behind my proposal:

1. I do not believe that consumers are sensitive tto pricing differences in the $50 to $99 range (demaind is inelastic in this range). A #$129 SRP ensures that Windows /286 will typically appear on the street un der $99

2. At ~$99 on the stree, Windows /286 3.0 is an incredible value. The applications alone are worth a great deal more. All of the great applets PLUS a great shell PLUS breaking the 640K barrier...need I say more.

3. The extra $15 in revenue we'll receive as a result of this price cha nge will really help us in the cogfs as a % of revenue area. This is particularly important when you consider the effect that the probable Asymetrix OpenBook bundle (est. cogfs impact +$1.50 for 5.25", +$2.75 for 3.5") on these skus profit margin. In additional, the promotional bundle gives us an additional rationale (in the buyers mind) for the increase.

4. Finally, without this increase, it will be much more difficult to get oem customers to sign deals for Win 286 at our new pricing levels during the interim period before DOS+Win becomes a reality.

In summary, I don't thing it will be a big deal to the consumer and it will makea positive difference in our profitability as well as the prices we settle with our oems on.

rich

10127914

RESTRICTED CONFIDENTIAL Plaintiff's Exhibit 5045 Comes V. Microsoft

Exh 5 Date Witness Zusan Zielie

MS-PCA 2433829

HIGHLY CONFIDENTIAL



PXE 5055



Gist: Discussion about competitors who can be broken apart by Microsoft. "Do you really want to penalize users for using Microsoft software?"

From philba Wed Sep 13 08:40:37 1989 To: celestb danbo greglo jodys marcw mikedr richab Subject: Re: Limulator technology: spread it around? Date: Wed Sep 13 07:31:42 1989

'cause we're big bad microsoft and we LIKE to stomp the daylights out of the little guys.

seriously -- we shouln't try to crush these guys -- let them upgrade their products to be compatibly with ours. Give them the info they need. Even say nice things aboubt the good ones. However, I don't want to put any development effort into making it easier for them.

Sender: mikedr Tue Sep 12 20:29:17 1989 To: celesteb danbo greglo jodys marcw philba richab Subject: Re: Limulator technology: spread it around? Date: Tue Sep 12 20:26:54 1989

I disagree with Greg. Our goal is not to drive limulator vendors out of business. If someone besides Microsoft is able to deliver great functionality to our users, why should we stand in the way of them using it? Do you really want to penalize users for using Microsoft software?

Sender: greglo Tue Sep 12 20:22:19 1989 To: celestb danbo jodys marcw mikedr philba richab Subject: Limulator technology: spread it around? Date: Tue Sep 12 20:20:43 1989

Need a policy on whether we want to allow other people to modify their limulators so that they will work with Win386 just as well as our own EMM386.SYS (i.e. let win386 take over their open emm handles while we aere running, to support ems using memory resident programs). Do we document our interface in the DDK?

One could say that there is no reason that various OEM limulators or 386MAX shouold not work with us. On the other hand, maybe we want to kill them.

My opinion right now is that there will be no reason for a person not to use EMM386 with Win386 3.0. Sure 386MAX has additional nifty keeno features, like mapping upper memory blocks, but they can't use those features with Win386,. All the features they could use with Win386 are already provided by EMM386. So maybe we want to keep things simple and tell themn always use EMM386, and throw away the competitors?

X 567486 CONFIDENTIAL

EXH 6 DATE WITNESS SUSAN ZIELIE

Plaintiff's Exhibit 5055 Comes v. Microsoft



PXE 5176



Gist: "So, rest assured, MS Apps isn't going to boast of how it's monopolizing all the Win Computing resources, but will aslo probably point the way to the Windows group for a supporting quote."

From richab Mon Oct 15 12:34:35 1990 To: w-clairl w-connib Subject: apps office product Cc: kathrynh Date: Mon Oct 15 12:34:35 1990

I continually take heat, some of it deserved, most not for the church vs. state issues. Win computing is viewed negatively by most isvs since there is not (in their opinion) a significant isv component. We do not (yet) have a strong win isv program to counter this either.

It is very important in all isv issues that you consider that the very best we can do with isvs is to have them feeling neutral about us. they will never love us.

rich (**** >From w-connib Mon Oct 15 08:10:25 1990 To: richab w-clairl Subject: apps office product Cc: kathyrnh Date: Mon Oct 15 08:00:42 1990

Sorry, I've been out for awhile, but wanted to respond to your earlier mail about the MS Office for Windows and whether we'd get heat for giving preferential treatment to MS Windows aps. I haven't heard much more from the press but I know that various people at MS have asked me if this is an issue. So I've been meaning to ask you, Rich, if other ISVs are complaining about Windows Computing promo or the Win Office.

We should have a consistent response from the Apps group and Windows group but I would rely heavily on the Windows group to show that other ISV's are still happy and that they are helping all ISV's. Can we point to any new programns being offered to other ISV's as a result of Windows Computing push?

So, rest assured, MS Apps isn't going to boast of how it's monopolizing all the Win Computing resources, but will aslo probably point the way to the Windows group for a supporting quote.

X 566829 CONFIDENTIAL

Plaintiff's Exhibit 5176 Comes V. Microsoft



PXE 6871



Gist: Mike Moskowitz on Windows Media Player

EXHIBIT 87a LANE

burst.com

Board of Directors Meeting: 11/1/00 Product Marketing & Business Development Report

Product Marketing Status

* Live Status - The Alpha release has been successfully deployed at InterZest in Korea as of the first week of October - the Beta release has been pushed out to mid-January - a 2 month slip from engineering - the slip is due in part to a poor development job by one of their contractors. * Product Roadmap : Based upon the new Business plan delivered last week by doig, a first draft of Product Roadmap has been laid out (attached). * New Windows Media Player Bridge was released October 19 - this is the product I described at the end of August to the Board -- it successfully combines WMP6, WMP7, with full support for ASF, WMA, MPEG, inlcuding seek forward/backwards. We are now totally up-to-date for WMP on our current product release. * Promo CD - A promo CD has been released for use at tradeshows. * ROI/TCO Research work finishes this week - this work is near completion and shows Burst in a very positive light (performance over the internet, and network efficiency) vs. the current server from Microsoft

Business Development

Apple - Based upon positive discussions held at QuickTime Live, we will be meeting with Apple to disucss, amongst other items, embedding Burst into their player. This will likeley accelerate our plans around the Burst plug-in for the Mac QuickTime Player.

Real Networks - Real has rejected our 2 proposals: * to be a VAR for their server, which would allow our server to talk to their server, and * to creat a Burst Caching server, wherein we cache streams from a central Real server and burst it from the edge.

Note that it is my belief there are 2 reasons for this rejection: * Our positioning - we still have "Why Stream When You Can Burst" on our main web page. We have positioned ourselves as direct competitors to them - and to Microsoft, as well - so it isw hard for them to see us as partners. * Our sales - or lack thereof. It is extremely difficult to put together a convincing story of how much added revenue they would receive by partnering with us, since we are not currently recording any significant revenues from our product.

AOL/Winamp - We have declined the AOL offer due to lack ofa compelling pay-performance guarantee for client downloads.

Mike Moskowitz Vice President, Business Development and Product Marketing

Confidential Page 1 10/23/00

Confidential

Plaintiff's Exhibit 6871 Comes V. Microsoft

BUR5147894

3p-DEPEX 005523



PXE 7582



Gist: DR DOS 5.0 correspondence

#1

EGGHEAD Discount SOFTWARE

Mr. Jonathan Freeman Digital Research 660 South Glassell #106 Orange, CA 92666

May 16, 1991

Dear Jonathan:

I appreciate your continued interest in Egghead Discount Software as a distribution source for DR DOS 5.0. The summary that you provided was informative and beneficial. Thanks for your input.

Unfortunately, I will not be able to further evaluate the addition of DR DOS 5.0 to the Egghead mix for several months. Our internal promotional priorities have been established and I have concluded that it would not be in Egghead's best interest to move forward on this issue at the current time.

I would like to leave the door open for further consideration and I would be happy to re-open the discussion in late July or August. I look forward to meeting you personally.

Best regards,

[signature] Rod W. Brooks Senior Vice President Marketing/Merchandising

CC: Bill Pickard

22011 S.E. 51st Street. P.O. Box 7004. Issaquah, WA 98027 (206) 391-0800. FAX (206) 391-0880

WS113511 Plaintiff's Exhibit 7582 Comes V. Microsoft



PXE 7739



Gist: Bill Gates and Joachim Kempin planning price hikes

Bill Gates

From: Joachim Kempin To: Bill Gates Cc: Bob Herbold; Steve Ballmer Subject: RE: Oem price guidelines Date: Friday, January 06, 1996 7:06 AM

The goal You set was 20% average above current prices. Iam very confident we will achieve this. Let's take a global look of what has changed: 1. we will get reports monthly and pad monthly. this will improve our cashflow. 2. we will gain some more by having progressive pricing. 3. we modelled the new PGL based on effective prices which are below the current PGL - as I showed You in our price discussion. these icreases leave should yield 25% increases on average thus leaving some room for negociaton. 4. I do not expect all companies to fullfill their MDA targets giving us better prices. 5. The current plan call for volume pricing of the WIN 95 units only, without combining total volume. This again leads to higher prices. All in all we have enough room to achieve the 20% higher target.

-----

From: Bill Gates To: Joachim Kempin Cc: Bob Herbold; Steve Ballmer Subject: Oem price guidelines Date: Tuesday, Jamuary 03, 1995 9:12 PM

I have been studying this thing a little bit.

I am sure you understand how it relates to you goal of raising our revenue per PC.

On the surface I see the following: (I am excluding here international markup $6.50 => $6 and hard disk install discount ($1.50)=>($1)

Volume level: Lowest 400-600 Highest Dos6.22+tools 27 20.25 18.25 Windows+Wfw 50 34 28.50 All 4 old prdcts 77 54.25 46.75

W95 w/o MDA 75 58 53.25 W95 w/full MDA 55 45.65 41.80

Without knowing whether we will be charging closer to list price than we have in the past and expecting that a lot of people will get the full MDA it looks on the surface like not only will we not get our goal of 20% or so per unit increase with the incredible innovation of Win95 but we will acxtually get less. For a customer who didn't buy Wfw this would be true but a high percentage did buy it.

Are we going to achieve our goal of increasing revenue as we hope? Of course Compaq will not have to pay anything new but I think they are the only ones who get a carry over.

On the surface it looks like prices are going down!

MSC 00698196

MX 5067173 CONFIDENTIAL

Page 1272

HIGHLY CONFIDENTIAL

Plaintiff's Exhibit 7739 Comes V. Microsoft

MS-CCPMDL 000000291593 CONFIDENTIAL



Thanks to "Superbowl" for extracting the above text from the PDFs.

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UEFI 'Secure Boot' Once Again Bricking PCs and Fake Security Models Are Perishing in Geminispace
Let's Encrypt has just fallen again
[Meme] Conservative (and Fake) Nuclear Physicist Bill Gates
Didn't even graduate from college, media treats him like a world-renowned expert in nuclear energy
The Gemini Capsule of Tux Machines Turns 2 in Six Days
Many people actually use Gemini, some participate in it by creating their own capsule (or capsules)
GNU/Linux Rises to 4% in Saudi Arabia, Says statCounter, Windows Has Fallen to 11% (Android Exceeds 60%)
Microsoft might soon fall below 10% in KSA (Saudi Arabia)
IRC Proceedings: Thursday, July 18, 2024
IRC logs for Thursday, July 18, 2024
GNU/Linux news for the past day
GNU/Linux news for the past day
1901 Days in High-Security Prison (and 8 More Years in Severe Confinement) for the 'Crime' of Exposing War Crimes and Corruption
Julian Assange clip
Opensource.org = Microsoft Lobbying (Openwashing)
Here's the latest pair of blog posts
In Northern Mariana Islands, Where Julian Assange Pled Guilty 4 Weeks Ago, Windows Remains Second to Android, and GNU/Linux Still Grows in Oceania
It was the first month ever that statCounter saw more Web requests there from Android than from Windows
If GitLab Gets Sold (Datadog and Google Named Among Potential Buyers), It'll Prove Our Point About GitLab
Beware the bait on the hook
Hot Summer: Microsoft Flirting With the "5% Windows" Club in Afghanistan
The share of Windows in Afghanistan has fallen to almost 5% (1 in 20 Web requests)
[Meme] Nothing Says "Independence Day" Like...
Firing DEI on Independence Day period
Good News About GNU/Linux, Geminispace, FSF, and Backlash Against Microsoft
here are a few quick takes
Links 18/07/2024: Hardware, Conflicts, and Gemini Leftovers
Links for the day
Backlash and Negative Press After Microsoft Tells Diversity, Equity, and Inclusion (DEI) People to DIE
Follow-up stories
Links 18/07/2024: Retroactively Pseudonymised Litigant and Alberta’s Energy ‘War Room’
Links for the day
Gemini Links 18/07/2024: A Welcome to Gemini and Politics of Assassinations
Links for the day
Red Hat's Official Site Yesterday: Promoting 'Secure' Boot in Machines You Don't Own or Control Anyway
"To be clear, CentOS Linux no longer exist"
Fabian Gruenbichler & Debian: former GSoC student added to keyring
Reprinted with permission from Daniel Pocock
Links 18/07/2024: ORG Complaint to ICO About Facebook, Korean Double Agent Unmasked
Links for the day
Joel Espy Klecker & Debian on Joe Biden's health and Donald Trump's assassination
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 17, 2024
IRC logs for Wednesday, July 17, 2024
Links 18/07/2024: Hostname Pedantry and Retro Coding
Links for the day