how MS could win on this
You know, if Microsoft cared one shred for its customers, rather than being the money grubbing whore that it is, the solution would be very simple: First, build a patch or encryption that would prevent the Nosy Snooping A**holes from tapping into their customer's private communications. Next, offer the encryption to every customer EXCEPT government agencies. Next, alert the Russians to the back door.
Microsoft and these other major IT players should immediately disown the US government and refuse to do business with them. Let's see the government function with no support, and no ability to upgrade any of their software ever again.