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Novell Sued Microsoft Through Caldera?
cheesedog writes "The intrigue increases: According to this article in the Salt Lake Tribune, the secret terms of the sale of DR-DOS to Caldera included the provision that Caldera would have to sue Microsoft (for Novell by proxy) over the OS and that they would have to do so without revealing Novell's hand in it. Did Novell indirectly create a monster? Caldera's 300 million winnings against Microsoft are now being used to fund lawsuits against Linux (and Novell)."
I'm not sure how much bandwith the Salt Lake Tribune place has, so I put up a brief mirror here
Alternatively (incase my server also goes under) you can read the article text bellow:
The Utah Court of Appeals has backed Novell's breach-of-contract victory over the Canopy Group, but in so doing unveiled a once-secret pact under which Novell sought to sue Microsoft by proxy.
That 1996 antitrust lawsuit by Canopy and its subsidiary Caldera (now SCO Group) brought a reported $250 million settlement from Microsoft in 2000. The litigation, the three-judge appellate panel found, came as an oral quid-pro-quo for the sale of source code for DR DOS, a computer operating system targeted by Microsoft's alleged anti-competitive practices in the early 1990s.
"Novell's board of directors worried that, if they brought suit against Microsoft in a private antitrust action, Microsoft would retaliate with further unfair practices that could neutralize the value of any antitrust recovery," Utah Appellate Judge Norman Jackson wrote.
The court further stated that Novell used DR DOS as the lure, verbally reaching an agreement that Canopy -- in return for a $1 million deal for the OS source code -- would then sue Microsoft. Novell also was to receive a cut of any lawsuit awards in the form of so-called "royalties."
"Novell insisted that its role be completely undetectable to avoid retaliation from Microsoft," the appeals court stated.
When Canopy prevailed against Microsoft and received the settlement, it tried to first deduct its attorney fees, court costs and other expenses, the judges found. Novell, believing its still-undisclosed cut of the award should have come on the gross amount, sued for breach of contract.
Written documents, Novell argued, made no provision for the deductions Canopy had made. Canopy countered that it was in the oral, side agreement that established its right to reclaim expenses before calculating Novell's share.
Provo's 4th District Judge Anthony Schofield agreed with Novell, and granted summary judgment. Canopy appealed. The appellate panel, consisting of Judges Gregory Orme and William Thorne Jr. in addition to Jackson, upheld Schofield in a decision published late Thursday.
On Friday, Canopy attorney Robert Jeffs said he was considering a further appeal to the Utah Supreme Court, but no final decision had been made.
"Canopy is obviously very disappointed with the decision," he said. "We felt we should have had the opportunity [in the lower court] to present our evidence to a jury."
Microsoft spokeswoman Stacy Drake would not comment.
Novell spokesman Bruce Lowery also declined to discuss his company's role in Canopy-Caldera's antitrust suit against Microsoft, saying only that Novell was pleased with the appellate ruling.
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"Do the Right Thing. It will gratify some people and astound the rest." - Mark Twain