Microsoft Settles Novell Antitrust Suit


By Reed Stevenson and Eric Auchard SEATTLE/NEW YORK (Reuters) - Microsoft Corp. (MSFT.O: Quote , Profile , Research ) said on Monday it agreed to settle antitrust lawsuits with Novell Inc. (NOVL.O: Quote , Profile , Research ) and an industry trade group, marking the end of a decade-long antitrust battle. Microsoft will pay $536 million in cash to settle an antitrust lawsuit tied to the Novell's Netware network software, Novell said, sparking an 10 percent rise in the software maker's shares in early trading. Microsoft also reached a deal with the Computer & Communications Industry Association (CCIA) under which the trade group agreed not to seek a review by the U.S. Supreme Court in its challenge to a lower court's final judgment in the U.S. government's antitrust case against Microsoft. "The U.S. litigation is now complete," Brad Smith, Microsoft senior vice president and general counsel, said in an interview. He added, however, that Microsoft is expecting that the total of outstanding legal claims against the company may total $950 million. The company had $64.4 billion in cash and short-term investments on its balance sheet as of Sept. 30. Redmond, Washington-based Microsoft said the Novell settlement will trim its recently reported first fiscal quarter profit by 13 percent to $2.53 billion, or 23 cents per share. Rivals, many of whom have now settled with Microsoft, claim that the software giant unfairly used its Windows monopoly to promote its own software and reap huge profits. Under the agreement, CCIA said it will not pursue its arguments in favor of the European Union's antitrust suit against Microsoft, which is appealing the EU's ruling. Microsoft said it will pay the legal costs incurred by CCIA against Microsoft stretching back over 10 years. Financial terms of this deal were not disclosed. Smith said that four of the five major plaintiffs had now settled with Microsoft in Europe. Rival music software maker Real Networks (RNWK.O: Quote , Profile , Research ) continues to seek charges against Microsoft stemming from anti-competitive practices surrounding Windows Media Player. "RealNetworks is now standing alone," Smith said.     Continued ...
Quelle "Microsoft Settles Novell Antitrust Suit" : reuters.com

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