News.com reports:
A federal appeals court dealt a legal blow to Sun Microsystems on Thursday, tossing out most of a preliminary injunction requiring Microsoft to carry its rival's version of an interpreter for the Java programming language.
But the 4th Circuit Court of Appeals in Richmond, Va., upheld a requirement that Microsoft cease distributing certain copies of its own Java virtual machine, saying that Microsoft "exceeded the scope" of a January 2001 license agreement with Sun. The three-judge panel said the agreement only gives Microsoft the right to include its own Java VM in Windows, not to offer it separately through computer makers or through Windows Update, which Microsoft stopped doing in February.
The court's decision is here.