August, 1997: A month that will live in infamy, as far Netscape Communications Corp. CEO James Barksdale is concerned. Testifying for a fourth day at the Microsoft antitrust trial on Oct. 27, Barksdale recalled how upset he was upon learning that Apple Computer Corp. had signed a big Internet browser deal with Microsoft Corp. Netscape had been "dumped."

Barksdale testified that he tried to reach Apple chief Steve Jobs to "express my displeasure" at being blindsided by the announcement. Eventually Fred Anderson, Apple's chief financial officer, called back. Anderson's explanation: Microsoft had given Apple no choice, according to Anderson's handwritten notes about the phone call and introduced as evidence by Justice lawyers.

Anderson wrote that Microsoft had threatened to withdraw its Mac version of Office business software, a key product that was popular with Apple's Macintosh users. "Apple needed to ensure that Microsoft would continue to provide MS Office for Mac or we were dead," the Anderson notes said. "They were threatening to abandon Mac."

Further, Anderson wrote that the "trading card" for getting Office was making Microsoft's Internet Explorer Apple's "default" browser. A default browser is the one that the operating system automatically turns to unless a user specifically calls for another one.

David Boies, who is representing Justice, introduced the evidence, in conjunction with Barksdale's testimony, to try to counteract Microsoft's claim that companies chose Internet Explorer because it was a better browser than Netscape's Navigator. The government argues that Microsoft used its monopoly power as a club to force companies to use or distribute its browser over Netscape's product.

Microsoft's dealings with Apple will figure prominently in the trial. On Nov. 2. Avadis "Avie" Tevanian, Apple's senior vice-president for software engineering, will testify as a government witness about "how seriously [Apple] took the threat" from Microsoft to withhold Office, Boies said in his opening statement. Tevanian also is expected to testify that Microsoft tried to persuade Apple to divvy up the multimedia software market. Apple would focus on its QuickTime multimedia software on the Macintosh market, while Microsoft would focus on the far more lucrative Windows operating systems market, Tevanian is set to say.

Such market-division allegations have been at the heart of Barksdale's testimony. He testified that Microsoft proposed in June, 1995, that Netscape withdraw its browser from the Windows market and instead sell only to non-Windows users. The Apple notes were among about 100 new exhibits released by the government on Oct. 27 that were designed to combat claims by Microsoft that Netscape "concocted" the market-division allegations.

Among documents the government released were excerpts from a April 8, 1998, deposition of Microsoft executive Chris Jones. In the deposition, Boies asked Jones whether "there was any discussion in the meeting with the Netscape people that under some form of a deal or partnership, Microsoft...essentially would take the part of the business that related to Windows 95 and Netscape could handle remaining parts of the business...?" Jones answered, "Oh, I believe there was a discussion of that nature, yes."

Barksdale has completed his testimony. On Oct. 28, David Colburn, senior vice-president for America Online, will testify for the government, which plans to show videotaped excerpts of Microsoft CEO Bill Gates's deposition on Oct. 29.

By Susan B. Garland in Washington