In a harshly worded ruling, Judge Jackson called Microsoft "untrustworthy"and even questioned its willingness to obey the law. He said he has"reluctantly come to the conclusion ... that a structural remedy has becomeimperative: Microsoft as it is presently organised and led is unwilling toaccept the notion that it broke the law" or to agree to an order that itchange its conduct.

In 4 pm Nasdaq Stock Market trading Wednesday, before the ruling was handeddown, Microsoft shares rose 87.5 cents to $70.50. After the ruling, theshares rose more, to $71.75 in after-hours trading.

If upheld, Judge Jackson's ruling would be one of the most far-reachingremedies ever sought in an antitrust case, rivaling the breakups of AT&TCorp. in 1982 and Standard Oil by the Supreme Court in 1911.

The US solicitor general on Wednesday agreed to seek direct review of thecase by the Supreme Court, as allowed in major antitrust cases, and JudgeJackson said he intends to certify the case for a direct appeal. The SupremeCourt can choose to hear the case directly or send it to an appeals courtfirst.

"My inclination is to certify it," Judge Jackson said in an interview. "Iwant this case brought to a definitive conclusion," he said, adding that "itis going to end up in the Supreme Court anyway." He said he would send thecase "not for the purpose of circumventing the Court of Appeals, but tobring it to an end as quickly as possible to eliminate uncertainty forcustomers and consumers and the economy."

In Redmond, Microsoft's chairman Bill Gates called the ruling an"unwarranted and unjustified intrusion into the software marketplace ... amarketplace that has been an engine of economic growth for America." Thecompany he founded in 1977 grew into the world's largest, by marketcapitalisation, and made Gates among the world's wealthiest people.

Gates said Microsoft plans to appeal the case immediately, and also ask foran emergency stay so that none of the judge's remedy proposals go intoeffect while Microsoft pleads its case to a higher court. "We're confidentthe judicial system will overturn today's ruling," Gates said.

Microsoft legal chief William Neukom added that the judge's decision not toallow hearings on the breakup remedy "makes a compelling case for a stay ofvirtually all of the relief."

Neukom said Microsoft will oppose the government's request to move the casedirectly to the Supreme Court, reaffirming Microsoft's belief that a federalappeals court will overturn the judgment. "No more special exceptions areneeded in this case, and we do not believe the government should be afraidof defending this case before the court of appeals," Neukom said.

Stung by Judge Jackson's remarks that a breakup was necessary because thecompany was untrustworthy, Microsoft executives expressed "disappointment."The judge apparently was referring to a dispute over an earlier consentdecree the company negotiated with the Justice Department.

Judge Jackson was unapologetic about his decision to adopt the government'srequest wholesale, agreeing to every part of its recommendation and ignoringMicrosoft's suggestions. "Plaintiffs won the case, and for that reason alonehave some entitlement to a remedy of their choice," he said.

The most drastic requirement in the ruling requires Microsoft within fourmonths of a final appellate decision to submit a plan to break the companyinto two units, one that sells Windows and another with the rest of thecompany's products, including its ubiquitous Office suite of businessprograms. The companies initially would share access to Microsoft's currentInternet-browser technology.

The judge's order would immediately impose tough restrictions on Microsoft'sbusiness conduct -- even before an appeals ruling -- by explicitlypreventing it from penalizing its partners from supporting rival softwareproducts. It requires Microsoft to specify a pricing schedule for itsWindows operating system and bans it from imposing limits on how computermakers can configure Windows on the machines they sell, giving companiessuch as Compaq Computer Corp and Dell Computer Corp unprecedentedflexibility.

It also prevents Microsoft from adding technologies to Windows unless italso provides less expensive versions of the software with those featuresinaccessible to consumers.

-- The Wall Street Journal