Microsoft says it tried to address Novell concerns

Seattle : A day after being sued by rival software maker Novell Inc. for allegedly making “false and misleading” statements about its products, Microsoft Corp., said on Tuesday it had already tried to address the concerns and hoped the effort would be taken in good faith.

On Monday, Provo, Utah-based Novell filed suit in federal court in Salt Lake City, alleging Microsoft had spread incorrect statements that Novell was shifting away from software development.

Novell asked the court to order Microsoft to stop the advertising, issue “corrective advertising” and pay unspecified monetary damages.

The company said Microsoft had tried to “create fear and uncertainty within Novell’s customer base” by suggesting that Novell was shifting away from software development to consulting and that its NetWare platform could have an “expiration date”.

Microsoft spokesman Jim Desler said the complaint centered on a marketing campaign conducted in August in which Microsoft sent mock cereal boxes labeled “Microsoft Server Crunch” to some customers of Novell’s NetWare software that powers server computers for corporate networks.

“The box made some representations that Novell took issue with,” Desler said.

After being contacted by Novell, Microsoft halted use of the cereal boxes and sent out notices to “clarify and correct” the materials, Desler said.

“Apparently these actions have not satisfied Novell. We will review the lawsuit when we receive it and respond accordingly,” Desler said.
“We regret any inconvenience to these customers and hope that Novell views our efforts to address their concerns in good faith,” Desler said.

A Novell spokesman said Microsoft’s actions had not gone far enough to ensure there wouldn’t be a repeat.

“Microsoft hasn’t acknowledged that the statements were false and they haven’t said they would not use them any more,” spokesman Kevan Barney said. “That’s where the problem lies.”

Microsoft shares rose $1.26, or about 2.4 percent, to $53.05 in Nasdaq trading on Tuesday. Novell shares rose 17 cents, or about 5 percent, to $3.59.

— Reuters