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By Barbara Morgan, 29 March 1999 16:21

NEWS Microsoft will meet with the US Department of Justice (DoJ) and representatives of the 19 prosecuting US states tomorrow to discuss the company's anti-trust settlement offer, according to New Mexico attorney general, Patricia Madrid. Madrid would not give any indication on how far apart the two sides may be, but said: "There is always optimism." A report in the Seattle Times at the weekend said the 19 states want Microsoft to sell the rights to its Windows operating system to two or three other companies - thereby breaking up its monopoly. According to a document seen by the newspaper, the government wants continuing access to Microsoft emails and internal documents, and for the company to gain Government approval before buying or investing in any other software firm. The document, called 'Remedies Re: Microsoft Litigation' says the proposal to auction the code and trademarks of Windows 95, 98 and Windows 2000 is the best way to break the monopoly. State officials were giving very little away though. Iowa's attorney general, Tom Miller, said settlement negotiations are usually "much more successful" if kept confidential. Both sides are under orders from Judge Jackson to try to settle the case before resumption of the trial - currently in recess. Microsoft refused to confirm even that the two sides will meet, but said its proposal provides a "framework" for discussions. A Microsoft spokesman said: "We made a serious and significant proposal that addresses the areas of concern identified by the government." The written settlement proposal given to the DoJ said Microsoft would be willing to consider relaxing restrictions on the licenses it gives computer makers allowing them to install Windows on their machines. The company would also consider easing exclusive marketing contracts it has with Internet companies and others, according to an attorney general who saw the proposal. But anti-trust experts said many of these compromises have already been implemented and are unlikely to satisfy the DoJ.