Microsoft retracts statements about Novell

BANGALORE: Microsoft Corporation has agreed to withdraw the statements about

Novell that forced the latter to file a false advertising lawsuit against Microsoft

on October 1. Microsoft has agreed to send a retraction letter along with corrections

in the original Microsoft "Server Crunch" marketing piece that were sent

to Novell customers, an official press release stated on Tuesday.

The Netservices software company accused Microsoft of "disseminating

false and misleading statements about Novell through the marketing piece".

It will continue to pursue the lawsuit to recover damages, the press release added.

In response to Novell's move for a temporary restraining order to stop

Microsoft from making false statements about the company, the latter entered

into a stipulation on the record before the US District Court in Utah agreeing

to "retract the statements in question in any form or media".

Microsoft also agreed to send a correction letter to the recipients of the

original Microsoft marketing piece.

In its corrected letter, Microsoft stated, "Contrary to the statements

made about Novell on the package by Microsoft, Novell has advised Microsoft that

it is growing and expanding its software business, while adding significant

resources to its existing consulting services business. Accordingly, Microsoft

retracts its statements that Novell will not fully support NetWare, that NetWare

has an 'expiration date' or that it is or will become 'obsolete,' and that

NetWare will become costly and time-consuming to maintain."

"We are pleased with today's developments because Microsoft told the

court that it will no longer disseminate the statements that Novell contends as

false advertising, whether on the original marketing piece or by any other

means," said Joe LaSala, Novell senior vice president and general counsel.

"We are also satisfied with Microsoft's agreement to send out a

retraction letter to our customers. We believe this is recognition by Microsoft

that its initial 'corrective action' was insufficient. While the revised

retraction is a good beginning, it does not adequately redress the harm caused

to us. We are anxious to move to the next phase of the litigation where

discovery will begin and we will put together our case for damages," he

said.

According to Microsoft, it sent the marketing mailer to some 3,000 Novell

customers in August. The piece, a box headlined "Microsoft Server

Crunch," contained false statements about the future of Novell's NetWare

product, its commitment to NetWare and its acquisition of Cambridge Technology

Partners etc.