Saturday, May 7, 2011

Novell overturns judgement, WordPerfect antitrust suit against Microsoft is back on

In 2004, Novell sued Microsoft, claiming that the software giant had illegally engaged in anticompetitive practices, unfairly hurting the WordPerfect word processor and Quattro Pro spreadsheet in order to protect its Windows monopoly. Of the six claims made by Novell, four were barred by the statute of limitations in the Sherman Act in 2005. The remaining two were allowed to continue until March 2010, when courts handed down summary judgement in Microsoft's favor. Novell duly appealed that decision, and on Tuesday the Fourth Circuit Court of Appeals overturned that judgement in a two-to-one decision, allowing the company to resume its action.

Novell's ownership of WordPerfect and Quattro Pro lasted for less than two years during the 1990s. The company bought WordPerfect in June 1994 for $885 million, and ended up selling it to Corel in January 1996 for just $115 million. Once the de facto standard for word processing software, the application lost its way in the 90s. In particular, the failure to provide a timely Windows version allowed Microsoft to market Word for Windows 2.0 without any real competition from WordPerfect.

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