In 1999, Townsend and Townsend and Crew (plaintiffs' counsel) filed suit on behalf of four named plaintiffs who sought to represent a class of Californians who had purchased Microsoft software. The suit alleged that Microsoft violated the antitrust and unfair competition laws of California by restraining trade and monopolizing the market for operating system and certain applications software. The suit alleged that, as a result of these unlawful acts, Microsoft had overcharged California software consumers. In 2000, the San Francisco Superior Court "certified" the case as a class action, thereby authorizing the named plaintiffs to represent all of the members of the consumer class. The case was scheduled for trial on February 24, 2003. On January 10th, plaintiffs' counsel and the class representatives reached an agreement with Microsoft on a settlement, which will provide up to $1.1 billion in monetary benefits to the class.
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How do I know if I am a member of the class who is entitled to share
in these benefits?
The "class period" — that is the period of time within which you need to have made your purchases — is from February 18, 1995 through December 15, 2001. You are a member of the class IF, within that period of time, you purchased from a vendor other than Microsoft a Microsoft operating system software or Microsoft spreadsheet or word processing software, either separately or as part of the purchase of a desktop, laptop, or notebook computer which came with such software already installed. Any purchase of these products, whether from a computer manufacturer, a retailer, a reseller, a distributor or other software seller, during the time period, qualifies you as a member of the class. The class includes individuals, large and small businesses in California, non-profit organizations and other entities. It also includes large and small businesses who have their corporate headquarters outside California but who use the Microsoft software in their offices within the State of California. Government entities are not members of the class.
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How do I remain in the settlement group?
If you are a member of the class, you do not need to take action, although to share in the Settlement Fund you must file a Claim Form as discussed below. The Court granted preliminary approval of the settlement on July 18, 2003. If the Court grants final approval of the proposed settlement, you will receive the benefits of the proposed settlement and you will be bound by all orders and judgments of the Court and your claims against Microsoft for the conduct alleged in these actions will be resolved and released.
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What Microsoft software purchases qualify under the settlement?
Microsoft operating system software includes MS-DOS, Windows 95, Windows 98, Windows 2000, Windows ME, Windows NT for workstations and versions of these products. Microsoft applications software includes Microsoft Word (word processing), Microsoft Excel (spreadsheet), Microsoft Office (a package of software which includes Word and Excel) and Microsoft Works Suite and Home Essentials 97 and 98 (packages which include Word).
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How will I be notified of the claims procedure?
The claims procedure has been approved by the Court. Notice is now being widely published to the class in a variety of forms. Notice is being mailed to all class members whose addresses are in Microsoft's databases. Notice is being e-mailed to every purchaser for whom Microsoft has an email address. In addition, notice will be published in print in newspapers, popular magazines and computer magazines, via electronic media (such as AOL and/or other internet access providers that can target California), on the official settlement website at www.microsoftcalsettlement.com, on Microsoft's website at www.microsoft.com and on this law firm's website at www.townsend.com.
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How soon will I receive notification?
The period for submitting your claim is now open. Simply call 1-800-203-9995 or go to the website at www.microsoftcalsettlement.com to get a Claim Form. Then fill out and send in a claim form. The deadline for submitting a claim has been extended. The Court has not set an exact date, however, the earliest possible date that claim forms would be due is August 26, 2004. If you acquired up to five copies of qualifying Microsoft products and have up to $100 in total claims, you can use a Standard Claim Form to ask for benefits, and you do not have to provide any additional documents or proof about your software. If your claim is larger, you can also use a Standard Claim Form, but you will need to provide additional information about your software. If you are a volume licensee (e.g., "Open," "Select," or "Enterprise"), you need a Volume License Claim Form. All the claim forms are available at www.microsoftcalsettlement.com or by calling 1-800-203-9995, toll-free. Official Notice of the settlement may also come to you in your mail, in your email or in your local newspaper, etc. Remember: You have only until August 26, 2004 to submit your claim for benefits.
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How can I make a claim?
The notice mailed to you by the Claims Administrator or available at www.microsoftcalsettlement.com will give you full details on how to make your claim and will include a claim form to make the process as easy as possible. The process is simple and straightforward. Under the terms of the agreement, class members can make a claim to the Claims Administrator for each applicable software license they own. You can make a claim for every MS-DOS or Windows operating system license or upgrade you purchased and for every Word, Excel, Works Suite, Home Essentials or Office software license or upgrade you purchased from February 15, 1995 through December 15, 2001. For example, let's assume you bought a computer in 1995 that came with MS-DOS but you decided to upgrade to Windows 95 and then you upgraded again to Windows 98. Each operating system counts as a separate license. In this example, you own 3 operating system licenses. Let's also assume your system started out with Word and Excel as separate applications and then when you upgraded to Windows, you bought Office in which Word and Excel are grouped with other software. This example gives you 1 Word license, 1 Excel license and 1 Office license for a total of 3 applications licenses. When combined with your three operating system licenses, you would have a total of 6 Microsoft licenses. You should make a claim for all 6 of those licenses by filling out the form.
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Do I need proof of the licenses I own?
You will be allowed to claim up to 5 licenses (subject to a $100 maximum claim) by submitting a sworn statement that you purchased those licenses. No further documentation will be needed. For any claim of over the 5 licenses, you will need to submit some proof of purchase. The class notice available on the website or by calling 1-800-203-9995 tells you what kinds of documentation will prove your claim. If you are a business Volume License holder, you may check the box on the Volume License Claim Form and Microsoft will provide the Claims Administrator with their records of your licenses. A report will be sent to you listing all of your volume license purchases of eligible Microsoft products between February 18, 1995 and December 15, 2001 that were intended for use in California according to Microsoft's records. You then will have an opportunity to make any corrections and/or additions, which will be approved by the Claims Administrator if they are supported by credible documentation. While it is unlikely that Microsoft's records reflect every purchase, we believe they contain records for many if not most of the covered transactions.
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How much will I get for each license I own?
The lawsuit was an action based on overcharges computed on a product-by-product basis. Accordingly, the amount of the voucher a class member will receive is based on the number and type of products he purchased (i.e., licensed). Often businesses have a "single license" to use the Microsoft product on multiple computers. This is known as a "volume license." In that event, the per license amount to be recovered applies to each computer on which the business was authorized to operate the software. The settlement agreement provides that the voucher amount will be based on the following amount PER COPY:
Microsoft operating system software
(MS-DOS or Windows) |
$16.00 per license |
Microsoft Office
|
$29.00 per license |
Microsoft Excel
(if purchased separately from Office) |
$26.00 per license |
Microsoft Word
(if purchased separately from Office) |
$5.00 per license |
Microsoft Works Suite and/or Home Essentials 97 or 98
|
$5.00 per license |
The voucher amount will be determined by multiplying the number of software product copies by the per unit amount. Thus, a family which purchased one copy of Windows 95, two copies of Windows 98 and one copy of Office would be entitled to receive a voucher in the amount of $77.00 (3 x $16 plus 1 x $29). A business which purchased 100 copies of Windows 98 and 100 copies of Office would receive a voucher in the amount of $4,500 (100 x $16 plus 100 x $29).
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What kind of computer products can I buy with my vouchers?
The vouchers are nearly equivalent to cash. During the four year redemption period, you can use them toward the purchase of computer products including personal computers, Macintosh computers, laptops, notebooks and tablet computers, any manufacturer's computer software for those types of computers, and the following hardware peripherals: printers, scanners, monitors, keyboards and pointing devices (such as a mouse or trackball). You may purchase the qualifying products from ANY manufacturer you want, including Microsoft's competitors.
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Do I take my vouchers to the store when I make my purchases?
No. The retailer, reseller or manufacturer selling computer products is not involved in the voucher redemption program. Keep your vouchers somewhere safe at home. You may redeem the cash value of your vouchers in two ways:
- If you do not already know what you will purchase with your settlement recovery, you may send in your claim form together with any necessary supporting evidence and sworn statements (described in the notice which you will receive or which you print from www.microsoftcalsettlement.com) and wait to receive your vouchers from the Claims Administrator. If you purchase qualifying products anytime during the four years provided in the notice, you may then attach your receipts or invoices to the vouchers, send them back to the Claims Administrator and he will issue you a check for the amount of the vouchers used. If you have not used all of the value of your vouchers, you will be able to use the remaining amount to purchase additional qualifying products at a later point during the four year redemption period.
OR
- If you already know what you will purchase with your settlement recovery, you may make your purchases any time after July 18, 2003. When you obtain a claim form, attach your receipts or invoices directly to the claim form the Claims Administrator will send you a direct payment of cash equal to the value of your claim. You will thus bypass the voucher portion of the claim procedure entirely. If your purchases still have not used up the cash value of your claim, the Claims Administrator will send you a voucher for the unused portion of your claim value along with a check for the amount of your purchase. You will still be able to use the vouchers for the remaining value owed you on your claim for subsequent purchases of qualifying products.
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What if I just can't use all of my vouchers? Is there anything I can
do with them?
If you can't use the value of your vouchers, up to $650 worth of vouchers can be transferred one time by endorsement. You may make up to $650 worth of your claim a gift to someone else or you can sell up to $650 worth of vouchers to someone else. If you find you can't use all or some of your vouchers, you might consider donating up to $650 worth to a charity of your choice — your favorite senior center or your local school or your neighborhood community center. Although no one charity can accept more than $10,000 in transferred vouchers, $10,000 worth of vouchers accumulated from people who can't use theirs would be a great help! We urge you to either redeem your vouchers by purchasing qualifying product yourself or donate your unused vouchers to someone who can use them. A donation may qualify for a charitable tax deduction where allowed by law.
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Why should I make a claim?
We are very hopeful that California consumers will participate in this settlement. We would like a 100% claim rate so we urge all consumers to claim their vouchers. Even if you have no intention of using the vouchers for computer products, make your claim and give the vouchers away. One-third of all unclaimed or unredeemed vouchers will be returned to Microsoft. It would be better to give your vouchers to a charity of your choice or sell them to someone than allow Microsoft to keep the settlement damages it has agreed to pay to you and other Californians.
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When do I submit a claim?
Submit your claim NOW!! You have between now and August 26, 2004 to submit your claim for settlement benefits. Go to the official settlement website at www.microsoftcalsettlement.com or call 1-800-203-9995 to acquire a copy of the claim form, the instructions for filling it out and notice of the settlement. If we have your address and/or your email address, you may also receive notification of the settlement through the mail or your e-mail. You may see the announcement in your newspaper or a magazine or on the internet. The claim period is now open so do not delay. You have only until August 26, 2004 to make your claim.
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What if I have questions about my claim or benefits?
The claims procedure has been made as easy as possible. If, however, you still have questions or have difficulty finding proof for your claim, you can call 1-800-960-5660 for assistance. You can also find helpful information on the website at www.microsoftcalsettlement.com. In short, every effort will be made to generate and validate all of the class claims.
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