The co-founder and former CEO of  one of Europe’s largest computer  manufacturers testified last week  that Microsoft Corp. used intimidation  tactics to get his company to deal  exclusively with Microsoft and forsake  its competitors.

Theo Lieven testified that his company,  Germany-based Vobis, wanted to  offer its customers a choice between  Microsoft’s MS-DOS and its competitor,  DR-DOS. Microsoft, however, insisted  that Lieven sign a “per processor”  license agreement that required Vobis  to pay Microsoft a fee for every computer  Vobis shipped, regardless of  whether the computer had MS-DOS  installed.Vobis agreed to the demands  after Microsoft threatened to charge  Vobis more than twice as much for  Windows licenses if it did not agree to  the restrictions.

Steve Aeschbacher, associate general  counsel for Microsoft, said Lieven’s testimony  was like “Star Wars,” in that it happened  a long, long time ago in a land far,  far away from Iowa.

“He left his company in 1996,”  Aeschbacher said.”The main reason he  was testifying is because he didn’t like  the per-processor licensing agreement,  which Microsoft stopped using in  1994, before the class period this lawsuit  represents.”

Lieven also testified, Aeschbacher  said, that by pitting Microsoft and Digital  Research Inc. against each other, he  negotiated what he believes was the  lowest price for MS-DOS.

The plaintiffs in the antitrust lawsuit  against Microsoft have said that the software  giant’s actions to drive competitors  out of the market destroyed competition,  and thus, gave the company  the power to overcharge consumers.

In other news, the plaintiffs have  upgraded their Web site to improve  navigation and to include the videotaped  testimony. The first uploaded  video is the 10-hour deposition of  Microsoft Chairman Bill Gates that was  taken in 1998.

To see the video or any of the 3,000  pieces of evidence admitted in the case,  go to www.iowaconsumercase.com.