Novell wary of Microsoft, patent lawsuits

SAN FRANCISCO: Novell Inc. has said that it was wary of possible patent claims from other technology firms and the competitive tactics of its far-larger rival Microsoft Corp.

Novell said in its annual report filed with securities regulators that it believed Microsoft's settlement of antitrust litigation with the Department of Justice "will not significantly affect Microsoft's practices, and that Microsoft may continue to engage in business practices that unfairly inhibit the growth of its competitors, including Novell."

Novell also said it was concerned about the risk of potential patent lawsuits.

"We also have a concern that computer industry companies that have huge financial resources and patent portfolios, such as Lucent, AT&T, Microsoft, Sun Microsystems and IBM would assert patent infringement claims against smaller companies such as ours," Novell said.

The company said it was also concerned that it would face more frequent patent infringement claims from patent licensing agencies because it has become more common for such agencies to be able to find attorneys who are willing to represent them or their clients on a contingency basis.

"While we have no reason to think we would not have strong defenses to such claims, the cost and time of defending any such claims could be significant," the company added.

Novell said it would vigorously defend itself in a lawsuit filed by France Telecom and U.S. Philips Corp. that alleged Novell's NetWare software infringes a patent jointly owned by the two companies.

Novell also said it does not expect a rise in demand for IT consulting services over the next few quarters as the economy stabilizes and companies slowly increase technology investment.

© Reuters