March 17, 2008 8:31 AM PDT

U.S. Supreme Court rejects Microsoft antitrust appeal

The U.S. Supreme Court on Monday denied a Microsoft appeal to an antitrust case that dates back to Novell's desktop PC software business in the mid-1990s.

The move leaves standing a lower court ruling that says Novell can sue Microsoft under federal antitrust laws. Novell argued that Microsoft used its monopoly power to sink Novell's QuattroPro spreadsheet and WordPerfect word processor.

The court had no comment and Chief Justice John Roberts abstained because he is a Microsoft shareholder, according to the Associated Press.

"Microsoft specifically targeted WordPerfect and Novell's other office productivity applications because they threatened Microsoft's Windows monopoly," according to the Novell court filing quoted by the Bloomberg news service.

In its case, Novell also said that Microsoft withheld technical information to make WordPerfect work with Windows 95.

In its appeal, Microsoft argued that federal antitrust laws don't apply to the case because Novell does not compete in operating systems.

In the late 1990s, Microsoft settled federal and state antitrust suits against it, which includes ongoing oversight over the company's actions.

The Novell case is the largest of remaining private suits against the company.

Microsoft contended in its appeal that Novell can't invoke the U.S. antitrust laws because it didn't compete against Windows in the operating system market.

Update 12:23 pm Pacific: Microsoft released a statement on Monday regarding the case, explaining its rationale to appeal the lower court's ruling.

"We realize the Supreme Court reviews a small percentage of cases each year, but we filed our petition because it offered an opportunity to address the question of who may assert antitrust claims. We look forward to addressing this and other substantive matters in the case before the trial court. We believe the facts will show that Novell's claims, which are 12 to 14 years old, are without merit."
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Add a Comment (Log in or register) 43 comments (Showing first 20 comments)
I thought the government was pro-competition
by aka_tripleB March 17, 2008 10:33 AM PDT
It's not like Microsoft was giving away its Office suite software either. Now if Novell was saying Notepad or Wordpad lead to its productivity suite's demise, it would be a different story. But Office was so much easier to use than Novell's suite.

For some background on myself, I was born in 1983, my family had an Apple IIe until 1995. We upgraded to WordPerfect somewhere around 1997 from Microsoft horrible free office suite. We moved to Microsoft Office after I had a chance to use it on my high school's computers, which was sometime in 1999-2000.
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Please read the article fully
by Kalama March 17, 2008 11:03 AM PDT
"In its case, Novell also said that Microsoft withheld technical information to make WordPerfect work with Windows 95."

If this were about competition, then QuatroPro would have died a quiet death. It is alleged the software was starved Out of the OS by MS.

Example: company A make the OS. Companies B & C produce a product to work with the OS, both need reasonable information to have their product work
with the OS. Company A has No Dog in the Fight as to whether B or C's product is better ... Tech info would not be withheld.

In this case, it is alleged, is seems that company A & company B are the same. So why would company AB do anything to assist with company C's product
when that product goes Head-to-Head with the company B product ???

BTW - Ain't if great the the guys who "'invented" the spreadsheet didn't patent it ?

{{ Mac 128 / MS Multi-Plan 1984 not mentioned in the following ...History of Spread Sheets -- dssresources.com/history/sshistory.html }}
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Let us not forget
by Lanman1 March 17, 2008 11:36 AM PDT
Microsoft has already paid Novell about $700 million in fines, now it's time to keep asking for more, many are still sorry that Word Perfect and Quattro pro aren't more widely used.

Microsoft is a different company today, humbled by supreme court decisions and rulings that it is a monopoly. This was a different era, their mantra was to slay competition anyway they could. Word Perfect was moving to a graphical interface and needed insight into the operating system. By delaying that, Microsoft was able to hamstring WP and present Microsoft Word as a better alternative. They would have just bought Word Perfect if they could.

Let's not forget that Microsoft wouldn't allow Quatro Pro and Word Perfect to be preinstalled on PCs that sold windows (is there another kind) - just like they did with Netscape. In this same time frame they killed Dr Dos, by patching windows just to break it.

FUD - the fear uncertainty and doubt spread by microsoft about their competitors in this timeframe was palpable. Those of us who lived through it, know just how powerful, vindictive and single-minded Microsoft was. I say was, because they are completely different company today. Novell deserves its day in court, the fact that Novell is even in business today is amazing.
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couldn't have said it better
by Lanman1 March 17, 2008 11:48 AM PDT
Microsofts products were not better in that time, they are now that they are the only things left, and are only better now because of hackers constantly breaking them and open source products pushing them into creating more features so that they are at least being current - Linux-Windows 2003, Firefox-IE, Open Office-Ms Office.

Microsoft is a decent company today with decent products. Don't discourage Novell, they need reparations from 20 years ago. Ever heard how bad the beer monopolies were in early America? Microsoft wasn't breaking knees if you didn't drink their beer, they just wouldn't sell you windows on your PC hardware if you didn't offer their products for free and not install the competition, and intentional engineer their OS, so that competiting products would have a difficult and sometimes impossible time getting installed - it's illegal now and it was illegal then.
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A victory for the lawyers, loss for tax payers!
by PortVista March 17, 2008 12:27 PM PDT
A symbolic defeat only. The only people getting paid for this are the lawyers. Some of that is our tax money no doubt. What's the next ruling going to be about? Windows 3.11 stealing ideas from the Commodore Amiga?
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Good job!
by t8 March 17, 2008 2:35 PM PDT
It seems the law is working.

Microsoft withheld (hidden) API's for themselves and gave other organizations API's that didn't work with Windows as well (less memory).

So if Microsoft illegally used it's OS to gain dominance in other areas, then this is a prime example of that.

People are often too quick to forget or are just plain ignorant of the facts.

Microsoft deserves to lose this and pay out a settlement many more times than Novell could have made from it's office product.

Thankfully nobody owns the Internet as a platform. At least on that platform you can create and innovate and not have anyone give you dodgy API's because all the protocols on the Internet are open and free to use. Everybody has the same advantage.

To me, this is one more reason why innovating on Windows is a waste of time. The Internet is the platform and the future. Microsoft killed off innovation on Windows by trying to own all the software that was being built on top. How selfish was that. VCs even gave up financing ideas if they were Windows dependent. The result is that Windows is dying because of it's lack of innovation.

In the meantime Microsoft should be held accountable for their past behavior.
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Shred Bill
by Travis Ernst March 17, 2008 4:45 PM PDT
MS has always been the bully (and cheat) in the schoolyard of
computers. What most people refuse to do, and think they can't
is DON'T DO WINDOWS. You are not forced to use their inferior
products. Go Linux. I remember Windows 3. Talk about
unstable. It also was the version that struck attacks at other
programs. They claimed it was "accidental". RIGHT. We know it
was so people would use MS's programs over other companies.

On another OS, after a bad version of MS worst (word)
HUNDREDS of MAJOR holes, I have NEVER purchased another
program from them. I have used the comp versions, or other
companies programs. I have refused to give Bill's company
money. Now there are three choices you can use over office.

I hope MSFT gets nailed. I wish the court would have followed
through on their decision and forced them to be split up into 2.
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Guilty As Charged!
by vfcs March 18, 2008 5:04 AM PDT
Remember well how with each new release of a new version of Microsoft operating system (Dos and or Windows) how products like Quatro Pro, Word Perfect and Geos either failed to function or required subsequent patches to re-enable. Also remember purchasing Novel stock at $22/share only to watch never to see the light of day above $12 following Microsoft's blatant tyrannical monopoly practices squashed the Novell network business..

GUILTY GUILTY GUILTY AS CHARGED!
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Novell did the most harm to themselves
by commercebob March 18, 2008 9:30 AM PDT
I was a WordPerfect reseller when Novell bought them and WordPerfect was holding its own against Word. There were constant additions of features that Microsoft would then add to word. There are many things that WordPerfect still does better than Word. Also WordPerfect had just started a certification program to teach Vars how to better train users. As soon as Novell had control they did away with the certification program, causing several Vars to lose money and time. They also terminated all the LAPA agreements. This is what WordPerfect called their large purchase contracts. I know because I received a letter from Novell legal informing me that all purchase agreements were null and void. They literally gave the channel no choice but to jump ship to Word. I also remember reading the trade articles at the time where Novell could not understand what happened. All they really wanted from the deal was Groupwise and they threw the rest away, whether they realize it or not.
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When Will The Folks At "Redmond" et al Get Really Serious...
by Commander_Spock March 18, 2008 6:32 PM PDT
... about (what they are doing); and about other things that really matter to plenty of other folks all around the world. Here is an example of an application that really matters:

"Computer Model for Feasibility Analysis and Reporting-COMFAR"

"Project analysis, evaluation and management software by UNIDO".

"In 1983 the first generation of the Computer Model for Feasibility Analysis and Reporting (COMFAR), a computation tool for financial analysis of investments, was released. Since then, this UNIDO software has been developed further, to support the financial and economic appraisal of projects. In 1995 the third generation, COMFAR III Expert, was introduced to the market.

Today, over 1500 licensees are using COMFAR in about 130 countries for project analysis and appraisal..."

http://www.win2biz.com/comfar/default.htm

Read the subject line!
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12 to 14 years old
by y82whs March 19, 2008 8:38 AM PDT
Think what you like about the role of the government in regulation, or whether Novell was its own worst enemy. But I must admit, Microsoft's quote about the age of the suit, when their appeals is what caused the delay, is a sign to me of their utter hypocrisy and cynical manipulation of the press. Their quote follows:

"We believe the facts will show that Novell's claims, which are 12 to 14 years old, are without merit."

Obviously, Novell would have been more than glad to fight it out in court years ago. The age of the lawsuit is totally Microsoft's doing.
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