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Minnesota House of Representatives

State Representative Joe Atkins

583 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4192

For more information contact: Christina Gosack 651-296-5524

Posted: 2006-02-06 00:00:00
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Local Schools Benefit from Microsoft Settlement

Schoolchildren in northern Dakota County will benefit from the settlement of a 2004 lawsuit with Microsoft. Inver Grove Heights, South St. Paul and West St. Paul school districts will receive a total of over $700,000.00, according to State Representative Joe Atkins. The total amount going to Minnesota schools is $55.2 million.

"Many districts struggle with the costs of maintaining and updating their technology infrastructure, hardware, software and professional training. The proceeds of this settlement will be helpful in addressing these needs," said Representative Atkins.

The award must be split 50 percent between general purpose and hardware purchases, and 50 percent for software purchases.

Those who filed the lawsuit alleged that Microsoft illegally monopolized and unreasonably restrained trade markets for PC operating systems, and word processing and spreadsheet software, in violation of Minnesota’s antitrust laws. As a result of its alleged illegal conduct, Microsoft was able to charge higher prices for its operating systems and applications software than it would have in markets unaffected by its conduct.

Plaintiffs sought to recover Microsoft’s illegal overcharges on behalf of Minnesota consumers, which Plaintiffs estimated at between $290 and $425 million from 1993 to 2001. The case went to trial on March 1, 2004. In April 2004, after seven weeks of trial, the parties reached a settlement.

The settlement required Microsoft to make available to Minnesota businesses and consumers up to $174.5 million in vouchers. Unclaimed and unredeemed vouchers go to Minnesota school districts.

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