2 Microsoft suits settled, 1 Pending
8 November, 2004

Novell has announced an agreement with Microsoft to settle potential antitrust litigation related to Novell's Netware operating system in exchange for $536 million in cash. Novell also announced that by the end of this week it will file an antitrust suit against Microsoft in the United States District Court in Utah seeking unspecified damages in connection with alleged harm to Novell's WordPerfect application software business in the mid-1990s. 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. The agreement also includes a release by Microsoft of claims that would have been compulsory counterclaims to the NetWare claims asserted by Novell. Finally, Novell has agreed to withdraw its intervention in the European Commission's case with Microsoft.

In another settlement with positive (for Microsoft) implications to the EC case was the Computer & Communications Industry Association (CCIA) suit. The agreement reflects recognition by both CCIA and Microsoft that there are important public policy issues where there is an important commonality of interest throughout the information technology industry, but where cooperation has been hindered by the contentious relationship between them. As part of this agreement, Microsoft will join the membership of CCIA. The company will compensate CCIA for certain legal-related expenditures it has incurred, in some cases over the past decade, and provide substantial institutional support for new and important policy undertakings on which CCIA will take a leadership role. CCIA in turn agreed not to seek certiorari to the Supreme Court in its challenge to the District Court's Final Judgment in the United States v. Microsoft antitrust case. The Washington, D.C.-based trade association has also agreed that it will no longer participate as an intervener on behalf of the European Commission in Microsoft's appeal of the Commission's March 24 Decision, and it will also withdraw its complaint with the European Commission filed in February 2003 on issues related to Microsoft Windows XP. Specific financial terms of the agreement are confidential.

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