Buoyed by strong demand for PCs, Microsoft on Thursday reported better-than-expected quarterly sales and earnings, with the company noting it saw signs of a recovery in corporate tech spending. For the three months ended Dec. 31, Microsoft earned $1.55 billion, or 14 cents per share, on record revenue of $10.15 billion.

Read more: CNet News (http://news.com.com/2100-1016_3-5145625.html).

On a related note, CNet also has a report (http://news.com.com/2100-7344_3-5145332.html) on the software giants' bad courtroom experiences, lately MS has been taking some of its hardest knocks in city council and legislative chambers. High-profile deals to migrate to Linux and official backing for open-source software point to a greater willingness for governments to challenge Microsoft.