| Gateway bows to Microsoft's power |
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Microsoft sent a letter to Gateway dated Dec. 12, explaining that Microsoft would soon be changing to a uniform licensing mechanism as required by the settlement. The new terms would affect contracts written after Dec. 16 for the top 20 PC makers.
The new license "contained provisions that were more favorable to Microsoft than the previous versions of the corresponding agreements Gateway had negotiated," Fama testified.
For instance, under the two-strikes provision, Microsoft could terminate any PC maker's Windows licenses without notice after sending two default notices. The notices would not need to be for serious offenses, either, Fama said. Under its previous license, Gateway had a three-strike provision.
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