[Infowarrior] - Microsoft sued over Windows Vista marketing

[Richard Forno]

Tuesday, April 3, 2007 · Last updated 7:48 a.m. PT
Microsoft sued over Windows Vista marketing

By TODD BISHOP
P-I REPORTER

A lawsuit alleges that Microsoft Corp. engaged in deceptive practices by
letting PC makers promote computers as "Windows Vista Capable" even if they
couldn't run the new operating system's "signature" features.

http://seattlepi.nwsource.com/business/310004_msftsued03.html

The proposed class action, which Microsoft disputes, was filed on behalf of
personal-computer buyer Dianne Kelley of Camano Island. It focuses on
efforts by Microsoft and computer makers to avoid a lull in PC sales by
assuring consumers that the machines they were buying last year could run
the delayed operating system upon its January release.

Machines carrying "Windows Vista Capable" stickers included those that only
met the requirements for Windows Vista Home Basic -- which lacks the "Aero"
on-screen appearance, Media Center PC interface, Flip 3D window-switching
and other features available in advanced Windows Vista versions.

"All the 'wow' stuff that Microsoft is selling and marketing is present in
(Windows Vista Home) Premium, but it's not present in Basic," said Michael
Rosenberger, one of the lawyers representing Kelley in the case.

Microsoft said Monday that the suit wrongly overlooks its efforts to make
clear the differences between the different versions.

The company "conducted a very broad and unprecedented effort" to help PC
makers, retailers and consumers "understand the hardware requirements to run
the various flavors of the Windows Vista operating system," said Linda
Norman, a Microsoft associate general counsel. "We feel as a company we went
beyond what we've ever done to try to educate people so that they understood
and could make the right purchase decision," she said.

Among other things, Microsoft created the additional designation of Windows
Vista "Premium Ready" to indicate that a machine was capable of running the
operating system's advanced features, meeting premium hardware requirements
including a full gigabyte of system memory.

That "premium" designation was made available for PC makers and retailers to
use in places such as computer boxes and in-store marketing materials, said
Mike Burk, a Windows product manager. Microsoft also detailed the hardware
requirements for the various Windows Vista versions in places including its
own Web site.

However, the distinction wasn't made in the general "Windows Vista Capable"
stickers.

The suit alleges that it was deceptive to include that logo on machines not
capable of running all the features Microsoft was touting as capabilities of
Windows Vista in general.

"In sum, Microsoft engaged in bait and switch -- assuring consumers they
were purchasing 'Vista Capable' machines when, in fact, they could obtain
only a stripped-down operating system lacking the functionality and features
that Microsoft advertised as 'Vista,' " the complaint says. As a result, the
suit said, people were buying machines that couldn't run "the real Vista."

The suit also alleges that Microsoft Chairman Bill Gates contributed to the
company's "deceptive marketing" during a Jan. 29 appearance on the "Today"
show, when he said that PC users could upgrade to Windows Vista for less
than $100.

"In fact, one can only 'upgrade' to Home Basic for that price, which Mr.
Gates and Microsoft know is a product that lacks the features marketed by
Microsoft as being Vista," the suit said. The suit alleges that Gates'
statement "furthered Microsoft's unfair and deceptive conduct."

Norman disputed the notion that Windows Vista Home Basic isn't a true Vista
version.

"Anybody who purchased a PC that had the Windows Vista Capable logo got the
core experience of Windows Vista," she said.

"We have different versions, and they do offer different features. ... The
Windows (Vista) core experience is a huge advance over Windows XP, we
believe, and provides some great features, particularly in the area of
security and reliability, and just general ease of use."

The complaint, filed last week, seeks class certification and unspecified
damages.
P-I reporter Todd Bishop can be reached at 206-448-8221 or
toddbishop at seattlepi.com.