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Microsoft pays $536m to settle Novell legal battle

But Novell vows to file second claim

Robert Jaques, vnunet.com 08 Nov 2004
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Novell said today that it has reached agreement with Microsoft to settle "potential" antitrust litigation related to Novell's NetWare operating system in exchange for Redmond shelling out $536m in cash.

Novell issued a statement which explained: "Under terms of the settlement, in exchange for the cash payment, Novell has agreed to a general release of claims that it has, as of the date of the agreement, with certain exclusions that include patent claims and claims associated with Novell's WordPerfect business."

Microsoft stressed that its payment agreement does not obligate it to license or otherwise share any of its technology or intellectual property rights with Novell, nor does it include any admission of wrongdoing by Microsoft.

"The agreement also includes a release by Microsoft of claims that would have been compulsory counterclaims to the NetWare claims asserted by Novell," added Novell.

"Finally, Novell has agreed to withdraw its intervention in the European Commission's case with Microsoft."

Despite this legal rapprochement over Microsoft's alleged uncompetitive behaviour which harmed sales of NetWare, Novell went on to promise that by the end of this week it will file another antitrust suit against Microsoft in the US seeking unspecified damages in connection with alleged harm to Novell's WordPerfect application software business in the mid-1990s.

Joseph LaSala, Novell's senior vice president and general counsel, said: "We regret that we cannot make a similar announcement regarding our antitrust claims associated with the WordPerfect business.

"We have had extensive discussions with Microsoft to resolve our differences but, despite our best efforts, we were unable to agree on acceptable terms.

"We intend to pursue our claims aggressively toward a goal of recovering fair and considerable value for the harm caused to Novell's business."

The WordPerfect suit that Novell will file seeks unspecified damages arising from Microsoft's alleged efforts to crush competition in the office applications market during the time that Novell owned the WordPerfect word-processing application and the Quattro Pro spreadsheet application.

According to Microsoft, the NetWare settlement reflects extra efforts on behalf of the company over past two years to build more constructive relationships with industry partners and competitors.

Brad Smith, senior vice president and general counsel for Microsoft, said: "Today's NetWare settlement is a product of that effort and reflects an open dialogue the companies established to address and ultimately resolve this matter.

"We could not resolve claims related to WordPerfect in any manner we thought appropriate, and we are prepared to turn to the courts to resolve it."

See also:

Microsoft accused of infringing graphics compression patentForgent Networks targets Redmond over alleged patent infringement  25 Apr 2005
Settlement grants Microsoft non-exclusive licence to Burst software$60m bonanza for video streaming software firm  14 Mar 2005
Online training and technical supportRedmond offers migration tools in bid to poach NetWare customers  17 Nov 2004
Vendor comes back for more - this time over WordPerfect  15 Nov 2004
Intellectual property indemnificationAgreement goes beyond volume licensing customers to all end users  10 Nov 2004
Solutions Sharing NetworkSolutions Sharing Network aims to help public sector collaboration  09 Nov 2004
Novell's Jack MessmanNovell's chief discusses Linux, making money and how 'pretty' open source is  20 Sep 2004
LinuxLinux is becoming the operating system of choice for an increasing number of corporates, and even the mighty Microsoft is acknowledging the threat ...  12 May 2004
Open DebateThe pros and cons of Windows and Linux in enterprise IT  12 May 2004

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