Microsoft Countersues Sun Microsystems

Refutes Sun's Claims and Sues for Breach of Contract and Bad Faith

SAN JOSE, Calif. - Oct. 27, 1997 - Microsoft Corp. today responded to the claims of Sun Microsystems Inc. in U.S. District Court. In addition to categorically denying Sun’s claims, Microsoft countersued Sun for breach of contract, breach of the covenant of good faith and fair dealing, and unfair competition for Sun’s repeated failure to live up to its obligations under the two companies’ agreement of March 11, 1996.

"Sun has apparently decided that it no longer likes the deal it made more than a year and a half ago," said Tom Burt, associate general counsel, Microsoft Corp. "Sun’s suit may make for good PR, but its claims are not grounded in fact or in law. We are disappointed that it has come to this, but we have upheld our end of the bargain. Sun has not."

Countersuit Charges Sun With Repeated Breaches of Contract

Microsoft’s countersuit outlines numerous breaches of contract by Sun. In particular, the countersuit specifies that, contrary to the agreement, Sun failed to deliver technology that passes Sun’s own test suites and runs on the Microsoft® Reference Implementation. Nor has Sun provided a public set of test suites as required by the agreement. Further, Sun has consistently failed in its obligation to treat Microsoft on an equal footing with all other licensees.

Moreover, Microsoft sued Sun for intentional interference with prospective advantage and unfair business practices for its repeated false statements about the compatibility and desirability of Microsoft’s products and Microsoft’s rights under the agreement.

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