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

VO, which has offices in the Netherlands, Belgium and Germany, is the second European IP firm to secure external backing this week
The Bardehle Pagenberg attorneys-at-law discuss the firm’s Managing IP EMEA Awards 2026 success, Unified Patent Court litigation strategy, and evolving European patent trends
A patent battle between two legal tech companies and a loss for Elon Musk’s xAI against OpenAI were also among the top talking points
With drug prices a hot topic in the US, courts are seemingly more reluctant to prevent the entry of generics to the market
Academic Eden Sarid joins us during Pride Month to discuss queer expression and IP law, Patagonia v Pattie Gonia, and how queer and AI-generated creations both pose novelty concerns
Patent attorney Michael Henson joins the firm to lead its freshly launched blockchain and digital assets practice
A dispute over mammogram technology, and a development in the case between GSK and Moderna were also among the top talking points in recent weeks
With rankings for Western Europe set to be published on June 25, we sat down with our research lead to find out what practitioners and law firms can expect
Peter O’Sullivan, a professional services executive, says he is looking forward to helping Pearce IP become the leading life sciences firm in Australia and New Zealand
Matteo Di Lernia, advocate at LCA Studio Legale, unpicks the CJEU’s ruling in M.M. Ristorazione v Villa Ramazzini, including its impact on litigation strategies
Gift this article