The Conclusions of Law 2

One allegation Microsoft addresses in their Proposed Conclusions is that Microsoft foreclosed Netscape from distribution in several channels, including that of distribution on new computers and distribution bundled with internet service provider software. Microsoft said that while they may have made it difficult for Navigator to be distributed in these ways, it was still distributed on 22% of all new PCs and its usage actually increased significantly during the period Microsoft had allegedly foreclosed its distribution. Furthermore, Microsoft cites the 1998 Omega Environmental case that defended competitors' rights to sell directly to consumers, develop alternative distributors, and compete for existing distribution channels.

Also, Microsoft defends the restrictions it places on computer manufacturers' ability to modify windows. Microsoft says that when it comes down to it, Windows is copyrighted. Unauthorized changes in the content of a copyrighted work constitute infringement of that copyright. Microsoft asserts that they have every right to place conditions on the licensing of their products. Also, they cite the 1976 Gilliam v. ABC case, which ruled that it is illegal to distribute only parts of a copyrighted work without permission.

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