The Novell case
Microsoft was accused of using its monopoly position to disrupt
sales of Novell's NetWare product. In addition to direct action,
Novell supported the case brought by the US Government against
Microsoft and was one of the companies whose complaints sparked the
European Commission's investigation into Microsoft in 1998.
As part of the settlement deal announced yesterday, Novell will
abandon its antitrust claims in the US in relation to NetWare and
will stop participating in the European Commission's case.
In return, Microsoft will pay Novell $536 million and will also
release its counterclaims in the NetWare case. The agreement does
not oblige Microsoft to license or otherwise share any of its
technology or intellectual property rights with Novell, nor does it
include any admission of wrongdoing by Microsoft.
However, Novell intends to sue Microsoft later this week on
another issue. Novell says Microsoft also broke antitrust laws in
connection with its WordPerfect software business in the mid-1990s.
According to Novell, it is seeking unspecified damages as a result
of "Microsoft's efforts to eliminate competition in the office
productivity applications market during the time that Novell owned
the WordPerfect word-processing.
"Over the past two years, we have made a sustained effort to
build more constructive relationships with our industry partners
and competitors," said Brad Smith, senior vice president and
general counsel for Microsoft. "Today's Netware settlement is a
product of that effort and reflects an open dialogue the companies
established to address and ultimately resolve this matter. We could
not resolve claims related to WordPerfect in any manner we thought
appropriate, and we are prepared to turn to the courts to resolve
it."
CCIA
The CCIA has been a fierce critic of Microsoft for over a
decade, filing suit against the company as part of the antitrust
case brought by the Government, and encouraging and participating
in the EU investigation.
The settlement announced yesterday does not attempt to resolve
the differences between the two organisations, but reflects a
recognition by both parties that there are important public policy
issues in which they are both interested, but where cooperation has
been hindered by the contentious relationship between them.
Microsoft has therefore agreed to join the CCIA and will
compensate the body for certain legal-related expenditures it has
incurred. Microsoft will also provide institutional support for new
and important policy undertakings on which CCIA will take a
leadership role.
In return, the CCIA has agreed not to continue with its appeal
to the Supreme Court over the settlement in the US Government case
against Microsoft and not to participate as an intervener on behalf
of the European Commission in Microsoft's appeal of the
Commission's March Decision.
The CCIA will also withdraw a complaint filed with the European
Commission in February 2003 on issues related to Microsoft
WindowsXP.
"While there may be times when we and Microsoft will not agree
on every issue, we are looking forward to developing a stronger
relationship," said Ed Black, president and CEO of CCIA. "We
believe that CCIA has an important opportunity to help unite the
industry more effectively on key issues such as broadened internet
access, strong support for R&D, and ensuring that we act as an
effective engine for economic growth around the world."
The Effect
Microsoft has settled numerous antitrust cases, including claims
by Sun Microsystems and what used to be AOL-Time Warner.
In effect, the latest settlements mark the end of the US
antitrust litigation, as Massachusetts, the only state that
appealed the District Court's final judgment, has indicated that it
will not be seeking a Supreme Court review of its appeal.
However, the EU proceedings are still ongoing, with a decision
expected soon on whether Microsoft can delay implementing the
Commission's ruling until its appeal has been decided.
With Novell and the CIIA withdrawing from the court process,
some have suggested that the Commission may now be more amenable to
settling the case.
