Case Study: Microsoft Class Action

We represented Microsoft Corporation in an action filed on behalf of a class of Colorado consumers who alleged that Microsoft violated state antitrust laws by overcharging for its Windows 98 operating system.  On a Rule 12 motion to dismiss, the district court adopted our argument that plaintiffs lacked standing to pursue antitrust claims against Microsoft under the so-called "indirect purchaser" rule.  This rule, established by the U.S. Supreme Court in Illinois Brick Co. v. Illinois, 431 U.S. 720 (1977) under federal law, bars parties who do not purchase a product directly from an alleged antitrust violator from suing for overcharges under the antitrust laws.  The Colorado Court of Appeals agreed that the rule should apply under Colorado’s antitrust statute to software licensing and affirmed the district court's dismissal of the action in an opinion published at 50 P.3d 929 (Colo. App. 2002).