April 5, 1995 Dear Developer, This is to advise you that there is an adverse claim upon certain portions of Video for Windows(R) 1.1d by Apple Computer, Inc. While Microsoft Corporation and Intel Corporation deny Apple's claim, you are requested to stop using Video for Windows 1.1d and, instead, substitute Video for Windows 1.1e.* Sincerely, Microsoft Developer Relations Group * Video for Windows 1.1e is available for download on Compuserve in the WINMM forum and via the Internet on ftp.microsoft.com. Microsoft Video for Windows Developer Letter Q&A Q. Why is Microsoft encouraging developers to move to Video for Windows 1.1e? A. Microsoft released Video for Windows (VFW) 1.1e on March 23. It contains none of the disputed code. The letter to developers simply encourages them to move to the latest runtime version of Video for Windows for new product development and revisions of current products. Q. Are developers being asked to stop shipping released products with VFW 1.1d? A. No. We are only asking developers to move to the latest version of VFW for new releases. Q. What about your promise to support developers using VFW 1.1d? A. On February 16 we issued an open letter to software developers stating that we would defend any developer distributing Video for Windows 1.1d if Apple filed suit against them. Since that time, we have received a great amount of positive feedback from the developer community, who appreciate our support of their efforts. Microsoft stands behind Video for Windows, and we will continue to defend our products, protect our customers and do what we can to insulate our developers as we contest this lawsuit. This letter does not change that position. Q. What are the key events that have taken place in this lawsuit? A. In December 1994, Apple contacted Microsoft claiming that Apple owned unspecified code in Video for Windows, which it believed Microsoft had obtained from Intel. Microsoft asked Apple to identify the allegedly infringing code and to provide Microsoft with some evidence that Apple, rather than Intel, owned that code. Apple refused to provide Microsoft with an identification of the allegedly infringing code or any evidence of its claimed ownership. At Apple's request Microsoft provided Apple with a copy of the source code for the DCISVGA module. Again Microsoft asked Apple to identify the allegedly infringing code and to provide some evidence of ownership. Again Apple refused. Instead Apple sued Microsoft in this litigation. On February 10, Apple named both Intel and Microsoft in its suit against the San Francisco Canyon Company. Apple alleges that some of the driver code that Canyon developed for Intel, who subsequently licensed a portion to Microsoft, was originally developed for and is exclusively owned by Apple. On March 1, Judge Robert Aguilar issued a temporary restraining order against Microsoft's electronic and other distribution of certain files included in the Video for Windows 1.1d developer kits. That same day, Microsoft announced that we would release Video for Windows version 1.1e to developers. This version does not contain any of the code that Microsoft licensed from Intel and that Apple alleges to be infringing on its rights. The TRO expired March 10. On March 24, Microsoft filed counterclaims in this suit, alleging that Apple has engaged in unfair and deceptive business practices in filing and pursuing this suit. That same day Apple advised Judge Aguilar that it was not requesting the Court enjoin the sale of any application programs which were already in the market and did not want to unduly disrupt the businesses of developers, wholesalers and retailers. On March 30, a full preliminary injunction hearing was held. At that hearing Judge Aguilar declined to grant Apple's motion for a preliminary injunction. Microsoft agreed to request that developers use Video for Windows 1.1e in developing new applications. Q. What if I have questions about these issues or Video for Windows 1.1e? A. If you have any further questions, please feel free to email mmdinfo@microsoft.com. Microsoft and Windows are registered trademarks and Windows NT is a trademark of Microsoft Corporation. QuickTime is a registered trademark of Apple Computer, Inc. For Immediate Release March 30, 1995 For more information contact: Microsoft Corporation Greg Shaw or Mich Mathews (206) 882-8080 Waggener Edstrom Alison O'Brien or Pam Edstrom (503) 245-0905 Federal Judge Declines to Grant Apple Motion for Preliminary Injunction REDMOND, Wash. -- March 30, 1995 -- Federal District Judge Robert P. Aguilar today declined to grant Apple Computer's motion for a preliminary injunction against Microsoft's shipment of Video for Windows version 1.1d. Microsoft already had stopped shipment of version 1.1d on March 1 and introduced version 1.1e, which contains none of the disputed code, on March 23. Although ownership and copyrightability of the disputed code is yet to be determined, Microsoft will request that developers switch to version 1.1e for new applications. Apple's motion did not request that Microsoft or third parties cease shipping existing applications using version 1.1d. The run time version of Video for Windows 1.1e is currently available on Compuserve and Microsoft's Internet FTP site, which are the online forums Microsoft uses for Video for Windows distribution. The developer kit version of Video for Windows 1.1e is only available on Microsoft's Jumpstart CD and through the Microsoft Developer Network, a subscription service for developers. Microsoft learned last week that the run time version of Video for Windows 1.1d was found on an America Online forum. Microsoft did not post this run time version of Video for Windows on America Online. Microsoft asked that it be removed and has been advised that the run time version has been taken off the forum. A trial date for Microsoft's countersuit charging Apple with unfair and deceptive business practices has not yet been set. Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day. ######### Microsoft and Windows are registered trademarks of Microsoft Corporation.