Microsoft: Changing Course

It isn’t easy to turn an ocean liner. But Microsoft Corp.’s lawyers have changed the direction of the mother ship. After years of knockdown litigation, the law department has settled a remarkable number of big suits. But we’re not honoring it as a finalist just because the attorneys have learned to beat swords into contracts. Their achievement is greater than that: They’re at the center of a companywide strategy to turn adversaries into partners, and, in doing so, improve relations with the industry and its regulators.

Since 2003, under the leadership of GC Brad Smith, the software giant has settled 17 lawsuits for a total of $7.3 billion. Among the longtime antagonists it made peace with are America Online Inc., RealNetworks Inc. and Sun Microsystems Inc. After the antitrust onslaught — including the case brought by the U.S. Department of Justice in the 1990s — the temptation was to “hunker down,” says Mary Snapp, whose 18 years at Microsoft make her the longest-serving lawyer. Instead, the attorneys reached out to adversaries. They met with rivals and searched for ways to bridge divides.