TECHWEB TODAY : http://update.techweb.com/cgi-bin4/flo?y=eENw0BConN0H30RBu0AX Monday, August 13, 2001, 1:56 PM ET. Microsoft, Kodak Smile For XP By Mary Mosquera Microsoft will alter its new Windows XP operating system so that users may more easily access competing digital photo-finishing services, Eastman Kodak Co. said Monday. Kodak has been wrestling very publicly with Microsoft over how the software giant's increasingly integrated new operating system and Internet-based services restrict competition. The complaints Kodak has lodged are the same that led to the government's landmark antitrust suit, which is now treading judicial water among the lowest and highest federal courts. Kodak has said the placement of software from other companies unfairly favors Microsoft's applications. Microsoft is set to release Windows XP Oct. 25. It will be shipped to computer makers for installation by the end of this month. Meanwhile, the Redmond, Wash. software giant has sought to rehear issues of the antitrust case, delay, and appeal to the Supreme Court in an effortto postpone any court-imposed remedy that is crafted before the newest operating system is widely distributed, according to government and legal analysts. In a legal filing on Friday, the Justice Department and 18 states linked the importance of resolving a penalty with the XP rollout. "Because of its monopoly position, Microsoft's products and conduct overhang the market. The sooner remedial proceedings begin, the sooner a resolution can be crafted to assure competitive conditions and give industry participants the certainty they need to plan or commit resources efficiently," the filing read. Rochester, N.Y.-based Kodak said Microsoft will change how it presents choices when it encounters a digital camera connection . Instead of seeing just a drop-down menu, digital camera users will see a visible list of third-party digital photography service providers. The software giant will also clearly identify its scanner and camera wizard within the dialog box as a Microsoft digital photography function. "The changes made to Windows XP are a positive move. Kodak is pleased that our EasyShare digital cameras and software will work well with Windows XP,'' said Phil Gerskovich, Eastman Kodak chief operating officer of digital and applied imaging. Microsoft vice president Chris Jones said, "Kodak is an important partner for Microsoft. We are pleased that we've been able to incorporate their feedback and will continue our communications on ways to improve the digital photo experience.'' The Kodak EasyShare system includes a digital camera, a docking station and software that allows users to transfer pictures from camera to PC and also connect to the Internet to e-mail or print their pictures. Did someone forward this to you? Would you like to subscribe? http://update.techweb.com/cgi-bin4/flo?y=eENw0BConN0H30XN0As