Schools Receive Funds from Microsoft Suit

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Lauren Barack -- School Library Journal, 2/25/2008 10:55:00 AM

Microsoft’s settlement of class-action suits stemming from claims that the software giant overcharged for programs, including Windows and Excel, has entered round two: the dispersing of millions of unclaimed dollars to eligible schools around the country.

According to the terms of the settlement between Microsoft, the 19 affected states, and the District of Columbia, the Redmond, WA-based firm had to set aside approximately $2.5 billion for rebates that consumers who took part in the class-action lawsuit could claim by a certain date.

The amount that was left unclaimed in each state is to be divided up, with one portion going back to Microsoft and the rest distributed to needy schools in those states based on the percentage of their students who qualify for free and reduced price lunches. The amount each state's school system will receive varies depending on their agreement. California, for example, is allowed to keep two-thirds of the unclaimed money for their schools, while Minnesota is allowed to keep half. 

States including Montana, Arizona, and Massachusetts, among others, have already begun reaping the benefits in the form of vouchers for digital tools including PCs, laptops, software, and IT training. A few states are still waiting, with some hoping to receive their vouchers this year.

Public schools have watched as federal technology funding has shrunk year after year. Most recently money budgeted for educational technology in schools shrank to $267 million for 2008—down from the $272 million set aside in 2007.

Luckily schools are seeing a huge—albeit one-time—boost in supplementary software, hardware, and IT services, as most of the settlement money set aside by Microsoft went unclaimed by consumers. Experts speculate that many customers felt uninspired to file for product vouchers for amounts as nominal as $5 and $10.

To those who decided not to bother, students and teachers might be saying, “Thank you.

For more information, visit Microsoft’s Web page dedicated to the class-action settlement, which includes links to details by state.