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Microsoft Pays $536M to Novell

_mArk writes "This morning Novell announced that it had settled a potential law suit with Microsoft related to its NetWare product line. Microsoft agreed to pay $536 million to Novell, but this is not the end as there is another litigation against them pertaining to WordPerfect."

14 of 291 comments (clear)

  1. easy handout by Sv-Manowar · · Score: 5, Funny

    perhaps SCO went after the wrong people ?

  2. So Novell is going to let the EU case die? by Sikmaz · · Score: 5, Interesting

    "Finally, Novell has agreed to withdraw its intervention in the European Commission's case with Microsoft."

    1. Re:So Novell is going to let the EU case die? by aristus · · Score: 5, Insightful

      What's more, the 536M is about the size of the EU fine... so it's not really about the cash (what's a billion dollars to them?) it's about not letting *anyone*, any entity or government *anywhere*, tell them what to do.

      --
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  3. You realize what this means for Microsoft? by burgburgburg · · Score: 5, Funny
    $536 Million?
    No new boxes of tissue until Tuesday!

    Oh, the nasal anguish!

  4. Beware the Microsoft settlements by IGnatius+T+Foobar · · Score: 5, Insightful
    Generally, whenever Microsoft settles with anyone it's bad for the free world.
    • Microsoft settles with DOJ. Result: Microsoft doesn't get broken up like it deserved, and now wants to "license" standard Internet protocols to you.
    • Microsoft settles with AOL. Result: the final nail in Netscape's coffin, and the Mozilla developers all get fired. And of course, the dream of seeing Gecko in AOL client is dashed.
    • Microsoft settles with Sun. Result: anti-Linux collusion between Microsoft and Sun.
    • Microsoft settles with Novell. Result: We don't know yet, but I'm expecting something ugly. Maybe some bizarre legal cross-licensing to prevent non-commercial software from existing?
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    1. Re:Beware the Microsoft settlements by Ohreally_factor · · Score: 5, Interesting

      Microsoft settles with Novell. Result: We don't know yet, but I'm expecting something ugly. Maybe some bizarre legal cross-licensing to prevent non-commercial software from existing?

      And let's not forget the recent resignation of Chris Stone from Novell. Maybe it's just a coincidence.

      --
      It's not offtopic, dumbass. It's orthogonal.
  5. Yawn. The river flows. by Anonymous Coward · · Score: 5, Insightful

    I know this means a lot to Novell, but big money moves in this industry (like in so many others) like a river. Microsoft has a viable, long term strategy for survival and success. Novell has a viable, long term strategy for survival -- maybe. Part of the Microsoft strategy is legal payoffs as the cost of doing business. Things change when companies fail to innovate. IBM was too slow to keep up so they went through a bad time. Microsoft innovates not in the realm of technology, but in the realm of selling technology. No one does it better.

  6. Re:Novell is a dead company by paitre · · Score: 5, Insightful

    Novell is "reinventing" themselves as a Linux company.
    Specifically, who do you think owns SuSE these days? It's Novell.

    IMO - I think Novell has a couple of very nice products that they simply need to redeploy - a lot of the technology behind netware is actually pretty cool, but they allowed themselves to become marginalized (IOW - they sat on the laurels they built for themselves in the late80's and early '90s and it's almost put them out of business).

    Once they finish this turn around, I expect them to regain some competitiveness, but getting back into "their" market is going to take some doing.

  7. Re:Sue sue sue, it's the American way! by barc0001 · · Score: 5, Informative

    NetWare basically existed just to make up for the Windows networking components being shitty at the time.

    Not up on your computer history, are you? You *must* have meant to say:

    "NetWare basically existed just to make up for the Windows networking components being NON EXISTANT at the time."

    Novell Netware predates ANY Microsoft networking. For most of the late 80's/early 90's until Windows for Workgroups came out, Netware and Banyan Vines were the only way to get a bunch of PCs to form a network. I am presuming you didn't actually work with computers and networks during this time frame, because if you did, there's no way you could have made such an erroneous statement.

    And Novell has innovated quite a bit. Or were you just being ironic? Where do you think Microsoft got the "inspiration" for Active Directory, among other things?

  8. Re:Sue sue sue, it's the American way! by paesano · · Score: 5, Insightful

    Gee, I don't know. Maybe some of the failures of Word Perfect (and every other competitor) had something to do with Microsoft's ability to lock them all out of every large Enterprise by their bundling practices. Innovate? Microsoft? Your kidding, right? Their only innovations have been with slimy business practices. No one can dispute their absolute genious there.

  9. Strategy on Microsofts part to legitimize lawsuits by 3770 · · Score: 5, Interesting

    Is it a strategy on Microsofts part to legitimize software related lawsuits?

    They have really deep pockets. They can afford to pay. When the pay they achieve two things:

    1) They can stop worrying about the lawsuit and continue with their business.
    2) They also legitimize the claim of the other company, in this case Novell, thereby setting a precedent.

    When Microsoft sets a precedent it means that the next company that Sun or Novell or SCO sues will almost certainly have to pay. There is a precedent after all. But that company might not be able to pay. And then Microsoft has one competitor less.

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  10. Re:WordPerfect by Reziac · · Score: 5, Interesting

    And "monopoly" would imply *lack* of choice. People used WP by choice back then even more than now -- in WP's heyday, WP had direct competition from Wordstar, MultiMate, and numerous other word processors of varying capability. WP cornered what was then a very competitive market because of several factors:

    1) support for every printer known to man
    2) features that users wanted (notably, features for lawyers, which no other product bothered to include)
    3) excellent free tech support for one and all (legal user or not)
    4) Reveal Codes (the ultimate timesaver for complex documents)

    WP only lost the market lead by being slow and lame to the Windows bandwagon, and I think more critical, by radically reducing their free tech support.

    Until WPWin8, where WP got its Windows act back together, WinWord was prettier to look at, but Word has *never* been superior in any way, and as you say about file formats -- lordy!!

    BTW, tho I have (and use, and collect) most WP versions, I still use WP5.1 as my everyday workhorse, and I lurk on the WP OO.o mailing list. :)

    --
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  11. Re:Sue sue sue, it's the American way! by subsolar2 · · Score: 5, Informative
    WordPerfect became the market leader, then they got all fat and lazy, providing the opportunity for Microsoft to come along and eat their lunch with just a few new features that the folks at WordPerfect were too lazy to implement.
    Ummmm WordPerfect got locked out of the OEM market because of agreements with PC manufactuers limiting what non-Microsoft sotware could be sold pre-installed.

    Not being able to get WordPerfect pre-installed and being forced to take Office or crappy Works pretty much killed WordPerfect. Wordperfect is still a better product than Word ... Quattro and Paradox have been exceeded by their MS counterparts, but WP is still better in my opinion.

  12. Re:No, by civilizedINTENSITY · · Score: 5, Informative
    First a little history:
    1983: Novell introduces NetWare X and NetWare S
    1985: Novell introduces Advanced NetWare 2.0
    1987 Apr: Microsoft introduces OS/2 Lan Manager, an network operating system to compete with Novell's NetWare. It's a patched up rehash of IBM's old PCNet.
    1988: Novell introduces Advanced NetWare 2.15.
    1988 Oct: 3Com introduces the 3+Open network, based on Microsoft's Lan Manager (based on IBM's old PCNet). In 1990 a famous "shoot out" was held between 3+ and Novell NetWare. 3Com dropped out of the network software business in Dec 1990.
    1992: Novell purchases Unix from AT&T
    1993: Novell introduces NetWare 3.12 and NetWare 4.0. 4.0 introduces Novell Directory Services in place of the Bindery.
    1994 February: Microsoft released Windows for Workgroups 3.11, adding networking to the product. The network, derived from IBM's primitive PCNet, is so totally piss poor people continue to buy Lantastic instead.
    1994 October: IBM released OS/2 version 3.0, an operating system far superior to anything Microsoft had, or would have for years. IBM launched a major campaign to get software developed for it. Many major software houses signed up to port their applications, but nearly all had to drop OS/2 development when they read the NDA (Non-Disclosure Agreement) for the Windows95 development kit. If you were developing anything for OS/2, you could not participate in the Windows95 program. The NDA itself required total secrecy, so the reason everyone dropped OS/2 development was only rumored for years.
    1994: Novell purchases WordPerfect and Quatro Pro.
    1998 October: Novell introduces NetWare 5.0. NetWare gets great reviews, and Microsoft feels the heat, especially from comparisons between NetWare 5.0 (shipping, works great) and Windows NT 5.0 (very, very late; very, very buggy, not shipping yet), so renames Windows NT 5.0 to Windows 2000 to stop the 5.0 vs 5.0 comparisons.
    2000 Jan: Novell introduces NetWare 5.1. Windows NT 5.0 still not shipping.
    And, yet again, it wasn't MS inovation:
    "Network Basic Input/Output System was designed for IBM by an organization named Sytek, Inc. It was created to provide an easy-to-use programming interface for connections between computers over a network. Microsoft began developing products for the MS-Net and LAN Manager (the predecessor to Windows NT) using the NetBIOS interface, anticipating the popularity of the standard. Ironically, the standard is only popular today because of Microsoft's implementation of it."