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IT Lets Microsoft Pocket Ill-gotten Gains ...

December 22, 2003 12:00 PM ET

Computerworld - ... by not filing for product vouchers from the settlements won in states' courts. In California, for example, up to 15 million businesses, organizations and individuals qualify, but a mere 300,000 have applied so far to get the reimbursement, says Howard Yellen, CEO of Settlement Recovery Center LLC in San Francisco. Companies that negotiated contracts directly with Microsoft are excluded from the agreement.
But most companies bought through manufacturers, value-added resellers or down at the local Office Depot, and they all qualify. The settlement covers Microsoft operating systems and applications sold from 1995 through 2001. While Yellen says he can understand that an individual might not want to dig through his files to find a receipt for his Windows 95 upgrade, which the courts figure Microsoft overpriced by $29, it's just plain silly for "IT to sit on their hands" when they can collect. And big, in some cases. Yellen estimates that companies that barely upgraded at all during the seven-year period can still average $100 per user. For those that went through a steady upgrade process, it might be as high as $250 per user. The average, he says, runs about $165. The vouchers are good for most high-tech gear, not just more Microsoft products. Routers, Macintoshes, Sun workstations and even Linux laptops -- you can go shopping. But the right to file a claim expires on March 15, giving you less than three months to get in line. Microsoft doesn't believe you'll bother. That's why the company has allocated only about $800 million to cover the California agreement, and it's doubtful that all of it will be spent. Why? "IT managers think it's a pain in the neck," explains Yellen. Naturally, his company is willing to come to your rescue, but as Humphrey Bogart's cynical Rick told Peter Lorre's character in Casablanca, "For a price, Ugarte, for a price." In Yellen's case, it's 30%, but presumably without the dead German couriers. What that 30% gets you is a guarantee that your claim will be filed on time and correctly. And Settlement Recovery Center doesn't get a nickel unless, and until, you do. Even if you don't use its services, Yellen says you had better get off the dime. "It's nuts not file a claim," he concludes. "It's free money."
• While I'm on the topic of money, Silicon Valley start-ups think next year might be a good time to cash in. Salesforce.com Inc. has filed SEC documents stating its intent to go public next year. The San Francisco-based



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