Deadline Looms in Microsoft Settlement
Californians may be ignoring a chance to claim their part of the $1.1 billion deal.Tom Spring, PC World
Time is running out for California consumers and businesses to file a claim in the state's $1.1 billion settlement agreement with Microsoft. Just days before the January 8 filing deadline, only a small percentage of claims have been submitted, according to lawyers representing plaintiffs.
The settlement is part of an agreement between the state of California and Microsoft to compensate customers who were allegedly overcharged by Microsoft for software--including MS-DOS, Windows 95/98, Word, Excel, Works Suite, Home Essentials 97/98, and Office--that was purchased between February 18, 1995, and December 15, 2001.
Only 700,000 of the 14 million customers and businesses entitled to apply have applied, says Richard Grossman, a partner at the San Francisco law firm of Townsend and Townsend and Crew, which filed the California class-action suit against Microsoft in 1999. Settlement claims must be postmarked no later than January 8. You can download a claim form from MicrosoftCalSettlement.com.
Those who meet the requirements are entitled to a voucher that can be used to purchase computer hardware and software from any manufacturer. Voucher totals will vary based on the software purchased, but as an example, a computer purchased with MS-DOS, Windows, Microsoft Office, and Home Essentials installed on it would yield a voucher for $97.
The California lawsuit is similar to other class-action suits filed in New Mexico, Minnesota, Arizona, and Massachusetts. Class-action cases are still pending in Nebraska, Wisconsin, Iowa, and New York.
Details on any of the Microsoft consumer class-action settlements are available on the company's Web site.
Microsoft Cash Ignored
"We would like to see more consumers file claims," Grossman says. The biggest response to the settlement so far has been from California businesses, he says. Grossman estimates that 80 percent of California's largest companies have applied.
"California consumers and businesses are leaving hundreds of millions of dollars on the table that they could be spending on new computer products," says Craig Wolfson, a spokesperson for the Settlement Recovery Center, a private firm that assists companies in the voucher process.
Two-thirds of Microsoft's $1.1 billion in unclaimed funds will go to needy California schools to buy computer equipment. Microsoft will retain the remaining one-third. It won't be known how much money will be distributed until the January 8 deadline passes.
The small number of claims filed may not reflect the how much Microsoft will shell out to claimants, says Dick Redfern, chairman of Rust Consulting, the court-appointed firm handling the claims.
"Clearly the vouchers for individuals will be small, but business claims could be dramatically larger, reaching over $1 million for one company," Redfern says.
Low consumer claim rates "constitute a referendum on whether consumers felt they were overcharged in the first place," says Microsoft attorney Robert Rosenfeld, with Heller, Ehrman, White, and McAuliffe. Microsoft denies claims it overcharged California residents and contends it "sold high-quality innovative software at fair and reasonable prices," Rosenfeld says.
Problems Plague Process?
Once the January 8 deadline passes, those who filed claims will have to wait for at least two appeals that have been filed with the San Francisco Superior Court to be resolved. As a result, attorneys estimate that it could take up to a year before anyone sees money back from Microsoft. As a matter of legal procedure, all appeals must be resolved before Microsoft starts the voucher distributions.
San Francisco attorney John Davis is appealing the Microsoft settlement on behalf of Patrick Perrotti, a class member of the original California case. Davis argues that both the process of filing for a voucher and receiving money back from Microsoft is too unwieldy.
First consumers must apply for a voucher and mail it in, Davis says. Then consumers will be sent approval for a voucher. Next, a consumer must mail back a receipt for new software or hardware purchased. Then they are eligible to receive a reimbursement check.
Additionally, some visitors to the official Microsoft-California Class Action Settlement Web site run by Rust Consulting have experienced technical difficulties. Attempts to download a claims form have resulted in an undecipherable document. The problem has been traced back to the use of some antivirus and/or pop-up blocking software programs running on computer systems, according to Rust.
If you experience a problem with downloading the form, Redfern says, you should send an e-mail request, and ask for a settlement form to be sent to you via e-mail or regular mail.
Davis says obstacles like these have deterred people from filing. "It comes as no surprise there have been so few responses from consumers," Davis says.
Microsoft defense attorney Rosenfeld asserts that the court-approved claim process is one of the "simplest and easiest" he has seen. As an example, he says, no proof of purchase for voucher claims under $100 are required. "I don't give much credence to claims we are trying to make it unreasonably hard for people."
Claim Cheat Sheet
To be eligible for a voucher, you must have purchased one of the following software programs from Microsoft between February 18, 1995, and December 15, 2001. To qualify for settlement vouchers, software or hardware may have been purchased outside California but must have been intended for use in California at the time of purchase.
The amount of the voucher you can receive for each application is listed with the products below:
To receive payment, you must: