Software giant Microsoft Corp yesterday filed formal notice to appeal a federal judge's order that it be split in two for violating antitrust law, voicing confidence that the appeals court would rule in its favour.
Microsoft also said it had asked the court to stay a raft of business restrictions ordered by Judge Thomas Penfield Jackson as part of his ruling last week that ordered the break-up. It had also asked Jackson for a stay, but holds out little hope that he will issue one.
Citing the "exceptional importance" of the case, the US Court of Appeals in Washington D.C. took the extraordinary step of saying the entire court would hear the case instead of the typical three-judge panel.
"I don't think it occurred to any of us that the entire court would decide to sit on the case," said Mr Rob Enderle, a Microsoft analyst with Giga Information Group.
"Whatever the result is, they want to make clear that it's not just a couple of judges making the decision. It's a national decision and they are making the required oversight," Mr Enderle said.
Also yesterday, the US Department of Justice said it had asked the judge to send the case directly to the Supreme Court, bypassing the lower appeals court that has ruled in Microsoft's favour in the past.
Shares in Microsoft rose more than $3 to $70 1/8 in after-hours trading following the announcements. In regular trading, Microsoft rose $1 to $67 7/8.
Earlier yesterday, Judge Jackson had said he would defer a decision on a company request to delay implementation of sanctions in anticipation of a break-up.
In a move criticised by the government as an attempt to "manipulate" the legal process, Microsoft had asked the judge to delay implementation of the sanctions but had not filed a formal notice of appeal.
Judge Jackson last week ruled that Microsoft should be split in two as a penalty for antitrust violations, and also be forced to comply with strict operational requirements within 60 days.
During the trial, Microsoft had come under fire for bundling its Explorer Internet browser with the Windows operating system, thus edging out competitors.
Yesterday, Microsoft chairman Mr Bill Gates said a combined browser and operating system was a key demand from customers.
"What's been challenged is the fact that we supported the Internet with Windows. For anyone who uses this technology, the idea that that could be challenged, you gotta say, is pretty amazing," he said.
