US Supreme Court will not hear Microsoft appeal on Novell case

By Scott M. Fulton, III | Published March 17, 2008, 12:55 PM

It's a very quiet ending for one of the important antitrust cases in the history of the software industry, as justices were apparently satisfied that a decision in Novell's favor on the WordPerfect matter was justified.

If Microsoft had one last chance to redeem itself after last October's decision in a 2004 court case brought against it by Novell, it was to get just four US Supreme Court justices to sign on to its writ of certiorari, or "cert petition." Would they please hear its case for an appeal? This morning, the high court dismissed the petition without even a comment.

Novell was the publisher of WordPerfect at the time Microsoft did the most damage to it, as upheld by the Fourth Circuit Court of Appeals last October (PDF of the decision available here), it stood up on behalf of itself as well as its predecessor, WordPerfect Corp., for having maintained a very dominant player in the word processing market. That dominant player was hoisted down from that lofty position by a competitive argument that was difficult to refuse -- an argument which history now shows to have largely been artificial. (Corel is WordPerfect's current publisher.)

In 2004, Novell made the case that Microsoft had intent to specifically destroy WordPerfect, not just beat it in market share. It had many of Microsoft's internal communications to prove its point, including one that was an admission from then-CEO Bill Gates that his company couldn't actually beat WordPerfect on quality.

Suggesting for perhaps the first time that Microsoft find a way to tie its own applications into Windows, Gates suggested prior to the release of Windows 95, according to the Fourth Circuit citation, "We have a way to do a high level of integration [between Microsoft Office and Windows 95] that will be harder for [the] likes of...WordPerfect to achieve...We can't compete with WordPerfect/Novell."

A later e-mail from Microsoft executive (now its outgoing Business Division president) Jeff Raikes to investor Warren Buffett was cited as saying, "If we own the key 'franchises' built on top of the operating systems, we dramatically widen the 'moat' that protects the operating system business...We hope to make a lot of money off these franchises, but even more important is that they should protect our Windows royalty per PC."

While last October's affirmation by the Fourth Circuit of a lower court decision was largely a defeat for Microsoft, the question of if and how Microsoft should be punished ended up being a defeat for Novell. First of all, federal antitrust law imposes a statute of limitations for certain claims of injurious conduct. That limitation is four years, and Novell waited eight.

There's also the problem that many of the same arguments have been raised by the earlier Justice Dept. case against Microsoft, which -- at least at first -- it won outright. Since Microsoft is, under federal law, making reparations for its actions in that case, it may not be possible for the government to take action against Microsoft again for largely or somewhat the same actions.

So while the decision remains a victory for Novell, it may be a mostly symbolic one.

The only added information to today's denial from the Supreme Court was that Chief Justice John Roberts was not among those participating in the cert petition hearing. As an attorney, Roberts previously argued on behalf of states in their joint antitrust action against Microsoft.

Update ribbon (small) 3:50 pm EDT March 17, 2008 - A Microsoft spokesperson contacted BetaNews this afternoon to say it continues to pursue what remains of the case brought against it by Novell, in US District Court in Baltimore. According to the spokesperson, this case is actually far from concluded.

"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," Microsoft's David Powermaster told BetaNews. "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 twelve to fourteen years old, are without merit."

Comments

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WordPerfect was doomed the minute it left the DOS platform. Save everyone money, piss off the lawyers, and have Microsoft buy Novell lunch for a day.

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actually, i was highly proficient and fond of WP. But for whatever reason, perhaps compatiability or sabotage, i got tired of fiddling with keeping WP functional and simply gave in to Office. I think that the vast majority of Business Offices could no longer afford the down time as well and gave in to M$ Office.

I recall the marketing for Office many years ago, promoting it as "true integration". But this was around the time when the Feds were on M$.

Unfortunately, after it was all said and done in the courts back then, it was too late for WP as they had lost a lot of market share.

Perhaps, WP and Lotus deserve compensation for the losses incurred.

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I prefer MS software bundled into my MS OS...
make your own OS and bundled your own software, easy.
But how come Wordperfect still exists today? Because Novell gave up on the game...blame blame...tsk tsk
I had wordperfect back in the day, then had Office, much better...therefore more people will use it. Simple enough.

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Case in point. Bundling software inside your OS IS bad for consumers and as such constitutes an ANTITRUST situation.

But guess what? they continue to do this at EVERY opportunity.

IE, OFFICE, MSN, Live, MSN toolbars and adware services, Now even Antivirus is all being integrated into Windows 7. How about just providing an OS when thats what we buy? We can determine what we want on it for ourselves without all the bloatware that at times is near impossible to remove from the installation if you want to use something else. And in some cases is a major source of security issues that we would all be better off NOT having in our system if we choose to go with a more reliable competitor for that bundled service.

thank you...

The Supreme court is basically saying to MS Change you business! We are not interested in hearing yet another case of how disadvantaged you are when its a bold faced LIE. And EVERYONE in the world knows it. Your a Monopoly. Face it. Cause trust me The next step in your loss record in the courts will be tantamount to the baby bell breakups of the 80s. And you will hate that.. Consumers on the other hand will finally get what they have been wanting for a long time. A level playing field for development options.

Just my opinion of course, But I personally think MS putting pressure on the courts to reverse this ruling may well backfire on them.

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The Supreme court is basically saying to MS Change you business!

??

The US Supreme Court is saying nothing of the sort.

This happened almost a decade ago. The court is merely saying they'll not dismiss the case. It's not like they can do much about it now anyway:

FTA:
Since Microsoft is, under federal law, making reparations for its actions in that case, it may not be possible for the government to take action against Microsoft again for largely or somewhat the same actions.

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Well, I was really sad when the option to split Microsoft into OS, Office and Internet wasn't applied. I thought that would have been a really good way of fixing things and would give MS some fresh air it's now lacking. A broken/old browser, a bloated office suite and a slow OS is a mirror of the result of not going into such extents.

But we can't complain much as there is no other viable option besides their old releases of software (Windows 2000/XP and Office 2000/2003).

Wordperfect. I never really liked it but I think it was an advanced word processor at its time so we shouldn't leave the issue without analyzing the outcome and why it happened. If it was like the BeOS issue I really hope MS doesn't leave untouched *again*.

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yeh, we get tired of hearing microsoft whine too....

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Go re-index some tables then...

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