In his testimony, Szulik quoted Massachusetts Attorney General Thomas F. Reilly as saying of the consent decree: "'Five minutes after any agreement is signed with Microsoft, they'll be thinking of how to violate the agreement. They're predators. They crush their competition. They crush new ideas. They stifle innovation. That's what they do.''' The remedy, said Szulik, can come only from the government, "Our competitor's illegal monopolistic actions have significantly reduced the open market in information technology," he said. "I believe that in extreme cases like this, it is the role of the government to step in and restore balance."
Szulik also told the committee that Microsoft's licensing, forced upgrade programs and other business practices have created a cycle in which schools must allocate 30 to 40 percent of their IT budgets to cover the costs of software and hardware upgrades. This situation seriously degrades poorer schools' ability to provide an adequate technical education for students. This cycle, caused largely by Microsoft's monopoly power, is widening the "Digital Divide," said Szulik, extending the gap in information technology between the "haves and have nots" in our society.
About the Hearings
The Senate Judiciary Committee convened hearings on the Microsoft case at 10:00 a.m. EST on December 12, 2001 in room 106 of the Senate Dirksen Office Building in Washington, D.C. Testimony was halted after two hours by a procedural matter and the statements of those on the panel were entered into the record. Chaired by Senator Patrick J. Leahy (D, Vermont), the committee includes:
DEMOCRATS -- Edward M. Kennedy, (Massachusetts), Joseph R. Biden, Jr., (Delaware), Herb Kohl, (Wisconsin), Dianne Feinstein, (California), Russell D. Feingold, (Wisconsin), Charles Schumer, (New York), Richard Durbin (Illinois), Maria Cantwell, Washington, John Edwards, (North Carolina),
REPUBLICANS --Orrin G. Hatch, Ranking Minority (Utah), Strom Thurmond, (South Carolina), Charles E. Grassley, (Iowa), Arlen Specter, (Pennsylvania), Jon Kyl, (Arizona), Mike DeWine, (Ohio), Jeff Sessions, (Alabama), Sam Brownback, (Kansas), Mitch McConnell, (Kentucky),
Red Hat CEO Matthew J. Szulik was part of a panel of witnesses that included noted legal experts and technology industry leaders. Participants from the technology industry included Jonathan Zuck, President of the Association of Competitive Technology; Mitchell E. Kertzman, President and CEO of Liberate Technologies. Microsoft was represented by Charles F. Rule of the law firm of Fried, Frank, Harris, Shriver & Jacobson, Counsel to Microsoft Corporation. Also testifying was Professor Lawrence Lessig of the Stanford Law School, and Mark N. Cooper, Ph.D., Director of Research for the Consumer Federation of America, and Justice Department Antitrust Division officials. The Committee also received written testimony from James Barksdale, former CEO of NetScape and now a board member of AOL.
Mr. Szulik's opening statement is available at http://www.redhat.com/opensourcenow/speech2.html and at http://judiciary.senate.gov/te121201f-szulik.htm
About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com
Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.
- About Red Hat
Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.
- Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.