Microsoft said it is initially pleased with the US Court of Appeals decision that overturned most of the lower district court's findings and "drastically narrowed the case and removed the breakup cloud from the company".
"While there are some aspects of this ruling on which we didn't prevail, we continue to believe that we face significant competition every day and we must continually improve our products in order to succeed," the company said.
At a press conference at Microsoft headquarters, chairman Bill Gates described the ruling as positive and said it could lead to a settlement with the Government.
"It would be a good time for all parties involved to sit down together," he said.
Microsoft spokesman Jim Cullinan said the company would continue to work to resolve the remaining issues without the need for continued litigation, which benefits no-one.
Giga Information Group analyst Rob Enderle, who has closely followed the case, said because of the monopoly tag that has been attached to Microsoft, "it's a win for the company, but it's not a strong one".
Meanwhile, White House press secretary Ari Fleischer told reporters that President Bush would not take any action on the court reversal until the Justice Department analyses the decision.
"The President has been informed. The President is going to have further discussions and will await Justice Department review and study," Fleischer said.
Representative Jay Inslee, whose Seattle-area district includes the Redmond campus, called the ruling a "stunning victory" and said he hoped it would spur the Bush administration to open settlement talks with Microsoft.
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