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  Analysts Don't Expect Windows XP Injunction
Time: 03:07 EST/08:07 GMT | News Source: Reuters | Posted By: Viper

Microsoft Corp. is facing calls for the courts to block its upcoming Windows XP operating system because of competitive concerns, but political and legal issues make such a move unlikely, analysts say. Last month, Microsoft opponents stepped up pressure on the software giant, with Sen. Charles Schumer of New York saying the company should make Windows XP -- the biggest update to the flagship product in six years -- more open to rival software applications. Also, New York Attorney General Elliot Spitzer was said to be looking closely at the possibility of seeking a court order to block shipment of Windows XP, which is scheduled to launch on October 25.

But such an attempt to delay the launch of Windows XP is unlikely to succeed, analysts said. First, there are legal grounds that set a high bar for such a measure. Second, there are political reasons that boil down to the fact that for every opponent trying to trip Microsoft up, there is an ally throwing its weight behind the company. In a report issued Monday, Brendan Barnicle, a former lawyer who is now an analyst with Pacific Crest Securities, said any injunction against Windows XP would require showing that the product would inflict irreparable damage on competitors. "It is highly unlikely for a couple of different reasons," Barnicle told Reuters. "The standard for giving an injunction is very difficult. The courts are loath to give injunctions and instead favor monetary damages." "In the end we believe the attempts by the states to enjoin Windows XP will fail, as these injunctions are rarely ever granted. Their contentions are not at the heart of the case," Stanek said.

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