Dan Rosen, Microsoft's general manager for new technology, said Gates "was probably wrong" when he cited Netscape as a prime rival for dominating the internet in a lengthy May 1995 memo entitled "The Internet Tidal Wave."Netscape chief executive officer "Jim Barksdale was telling me -- and I was the one talking to them -- that Netscape didn't want to compete in this way," Rosen said.

Rosen's testimony aimed to undercut one of the government's central allegations in the case: That he and other Microsoft executives proposed an illegal market division with Netscape at a June 21, 1995, meeting to co-opt the company as a competitor. Barksdale has testified that he rejected the offer, which Microsoftargues was never made.

Overriding Goal

Rosen said his company's overriding goal was simply to get Netscape to develop a web browser that used software "tools" included in Microsoft's Windows 95 operating system. The government says Microsoft saw Netscape's browser as a serious threat to Microsoft's Windows operating-system monopoly.Rosen's testimony, which conflicted with his own memoranda and with other Microsoft executives, who have at least acknowledged Microsoft saw Netscape as a competitor, drew startled gasps and chuckles from observers in the courtroom.

The government's lead counsel, David Boies, displayed a June 1, 1995, e-mail message from Microsoft executive Thomas Reardon that said Microsoft should "keep (Netscape) from sabotaging our platform evolution." He wrote that Microsoft should "move Netscape out of Win3.2/Win95, avoid battling them in the next year."

Rosen said Reardon's comment meant that Microsoft wanted to make sure Netscape's browser was compatible with Windows95.

`Interoperability Problems'

"That refers to interoperability problems?" interjected Judge Thomas Penfield Jackson.

"Yes," Rosen replied.

"All right," said the judge, rolling his eyes toward the ceiling.

Earlier, Boies cited a May 15, 1995, memo from Rosen to several Microsoft executives in which Rosen said, "our goal should be to wrest leadership of the client evolution from them." Rosen said the memo was a draft document that had never been sent. He added that Netscape executives had told him that Netscape had provided the "client platform" for Windows 3.1 "unwillingly." Netscape preferred to retreat to its "core competencies" of server and enterprise software in the face of Windows 95, Rosen said. "By `wrest,' you mean that Netscape wants to give it to you and you just ought to take it from them?" Boies asked incredulously.

(The Wall Street Journal)