Novell to appeal dismissal of $1.3 billion antitrust claim against Microsoft

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Novell to appeal dismissal of $1.3 billion antitrust claim against Microsoft

A seven-year lawsuit was thrown out on Monday when a US judge dismissed Novell’s antitrust suit against Microsoft for $1.3 billion

Utah company Novell, which filed the suit in 2004, has confirmed it plans to appeal the decision concerning its WordPerfect writing application.

The dispute stems back to the mid-1990s, when Microsoft made last-minute changes to Windows 95 before launching the operating system. Novell claimed Microsoft intentionally withheld information about the changes, preventing Novell from making its office suite compatible in time for the release. Novell argued that as a result, WordPerfect was unable to compete with Microsoft Word, and it was eventually forced to sell the program at a $1.2 billion loss.

During an eight- week trial which began in October 2011, former Microsoft CEO Bill Gates testified that Novell simply failed to deliver a compatible version of its software in time. When the trial ended with a hung jury in December last year, the judge declared a mistrial.

Microsoft subsequently applied for a motion to dismiss the case under Rule 50, which states that if the jury returns a verdict, the court can allow judgment, order a new trial, or direct the entry of judgment as a matter of law.

US district judge Frederick Motz granted the motion to dismiss. He said that internal issues at Novell, including a “mass exodus” of programmers from its Scotts Valley, California facility, had contributed to the delay in reworking the company’s software. He also noted he had seen no evidence that Novell had ever complained to Microsoft about the problem.

He concluded that while “a jury could have found that Microsoft engaged in aggressive conduct, perhaps to monopolize or attempt to monopolize the applications market”, Novell did not present sufficient evidence for a jury to find that Microsoft violated Section 2 antitrust laws.

David Howard, Microsoft’s deputy general counsel, said in a statement: “We’ve maintained throughout this case that Novell’s arguments lack merit, and we’re gratified with today’s ruling dismissing the last of Novell’s claims and putting this matter to rest.”

Jim Lundberg, vice president of Novell’s legal team, said that although the company is disappointed by the ruling: “Novell still believes in the strength of its claim and we do intend to pursue an appeal."

Microsoft is no stranger to claims that it employs anticompetitive tactics. Its business practices have raised objections from companies including Google, Motorola, and Sun Microsystems, and it has received several multimillion-euro fines from European antitrust officials.





more from across site and SHARED ros bottom lb

More from across our site

Acquisition of platform developed by Boehmert & Boehmert lawyer set to create a combined platform for patent drafting and prosecution in Europe
Partner Rob Jacob unveils plans to offer a beginning-to-end trademark service, how to make prosecution profitable, and why IP ‘buy-in’ from the CEO stands the firm in good stead
Sponsored by CAS
CAS provides practical pointers on how intellectual property and R&D teams can work in tandem to unlock tangible benefits and avoid wasted spend
Sponsored by CAS
CAS explores how AI is transforming intellectual property, from inventorship and copyright disputes to new demands on patent attorneys
Sponsored by That.Legal
Gillian Tan of That.Legal discusses a recent decision by the Intellectual Property Office of Singapore and what it reveals about the evidential burden in bad-faith trademark claims
Attorneys at Di Blasi, Parente & Associados share how the protection of trade secrets strengthens innovation by bringing together legal practice, regulatory developments, and established international references
Jin Ooi, who joins as a partner today, said he is excited to offer a ‘rounded’ IP service as the firm deepens its litigation expertise in the UK and Europe
As generics celebrate, practitioners believe innovator companies should brace for an ‘uphill battle’ when trying to prove induced infringement
A team from Cooley shares how they overturned a massive damages award by emphasising that the opposing company’s trade secrets claims were time-barred
Sponsored by Licks Attorneys
Eduardo Hallak, Rafaella Oliveira, and Laís Souza of Licks Attorneys explain how the provision operates in practice, highlighting evidential hurdles and best practices for patent applicants
Gift this article