Linspire Teams With a Former Foe: Microsoft

Jun 14, 03:40 PM

Current Headlines: By Jonathan Sidener, The San Diego Union-Tribune

Jun. 14--After years of throwing punches, Microsoft and San Diego software company Linspire said last night that they will work to make their competing computer operating systems better work together.

As a result, customers who use both Microsoft and Linspire technology will be better able to send documents, instant messages and digital media files between the two systems.

The two companies downplayed their contentious, litigious past in announcing the deal.

"This announcement continues our tradition of offering options for improved interoperability, enhanced functionality and confidence," Linspire Chief Executive Officer Kevin Carmony said in a written statement.

Microsoft called the deal "market driven," saying there are benefits to customers who use both systems.

Linspire, originally named Lindows, is a Linux-based operating system that offers a less-expensive alternative to Microsoft's Windows. The company was founded by Michael Robertson, who previously launched dot-com-era digital music company MP3.com.

The deal, whose terms weren't disclosed, will give Linspire access to Microsoft technology. Microsoft said Linspire initiated talks in November that led to the deal.

The companies have been at odds since at least 2001, when Microsoft filed suit in federal court seeking to strip the startup of the name Lindows. Microsoft paid $20 million in exchange for the company's name change to Linspire.

During the litigation, Robertson landed several counterpunches. In 2003, he launched a Web site, MSfreePC.com, that offered to process claims against Microsoft in connection with a $1.1 billion lawsuit settlement against the software giant.

Robertson also offered $200,000 in a contest to anyone who could hack into Microsoft's XBox video game console.

Robertson said the deal may be seen by some as "turnaround" or "capitulation" by a former Microsoft foe, but that it's ultimately good for Linspire computer users.

"You can compete with Microsoft and criticize Microsoft, but ultimately you have to realize that they have 95 percent of market share," he said. "This was a business decision."

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