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

A development concerning Stephen Thaler’s AI copyright application in India and an integration between IPH group firms were also among the top talking points
As concerns around the little-known litigation tool increase, practitioners say they are educating their clients on how it can be most effective
Kilburn & Strode and Mewburn Ellis are just two firms that have invested heavily in office space – a sign that the legal industry is serious about in-person working
In major recent developments, Dyson snagged another win against Hong Kong-based competitor Dreame and a new AI-powered UPC platform was launched
Mohit and Sidhant Goel decided not to pursue an interim injunction application so that their client, Communications Components Antenna, could benefit from a fast-track trial
Anita Cade, head of Ashurst’s IP and media team in Australia, discusses why law firms that can pull together capability across different practice areas and jurisdictions stand to gain
INTA’s CEO says London-based firms have registered fewer delegates compared to past meetings in San Diego and Atlanta, and questions the 'ethics' of trying to participate without registering
Lobbies and interest groups are among the interveners in a major dispute over whether courts can set patent pool rates
Benoit Geurts and Coreena Brinck will help the firm ‘accelerate its innovation agenda’, according to its managing partner
News of a trademark row over Taylor Swift’s ‘The Life of a Showgirl’ and Nokia’s expansion of its IoT licensing programme were also among the top talking points
Gift this article