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 2025

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

To mark the EUIPO having processed five million EUTM and REUD applications, Managing IP speaks to the most prolific representatives to uncover how they stay at the top of their game
The merger marks Rouse’s second M&A deal within a month, and will provide access to Arnold & Siedsma’s UPC offering
Simon Tønners explains why IP provides the chance to work with some of the most passionate, risk-taking, and emotionally invested clients
The co-leaders of the firm’s new SEP practice group say the team will combine litigation and prosecution expertise to guide clients through cross-border challenges
Boasting four former Spruson & Ferguson leaders and with offices in Hong Kong and Singapore, the IP firm aims to provide fast, practical advice to clients
Partners at three law firms explain why trade secrets cases are rising, and how litigation is giving clients a market advantage
Delegates at a conference unpicking the UK’s relationship with the UPC are hopeful of strengthened UK involvement – so should we all be
News of a litigation funder suing its co-founder and a law firm over trade secrets infringement, and a strategic hire by Womble Bond Dickinson were also among the top talking points
Managing IP’s parent company, LBG, will acquire The Lawyer, a leading news, intelligence, and data-driven insight provider for the legal industry, from Centaur Media
In major recent developments, a team of partners broke away from Taylor Wessing to form their own firm, while Kilburn & Strode made a strategic UPC hire
Gift this article