Despite the incessant speculation that the government is demanding a breakup of Microsoft Corp., The National Law Journal has learned that the government last week put a remedy on the table that would seem to be much more to Microsoft’s liking: a remedy that focused on changing Microsoft’s conduct.

Rather than accept the conduct remedy — details of which could not be ascertained — Microsoft instead made a counterproposal of conduct remedies that the government believes is “illusory,” according to sources close to the case.