Court turns down Microsoft's appeal of Novell lawsuit

Court turns down Microsoft's appeal of Novell lawsuit

Tools

Story Published: Mar 17, 2008 at 9:04 AM PDT

Story Updated: Mar 17, 2008 at 9:04 AM PDT

By Associated Press

WASHINGTON (AP) - The Supreme Court on Monday handed Microsoft Corp. a defeat by refusing to rule on the software giant's request to halt an antitrust suit against it.

The suit was brought in 2004 by Waltham, Mass.-based Novell Inc., which said in court papers that Microsoft "deliberately targeted and destroyed" its WordPerfect and QuattroPro programs in order to protect its Windows operating system monopoly.

Novell alleged that Microsoft targeted the programs because they could run on alternative operating systems and therefore could enable alternatives to Windows to gain market share.

Microsoft argued in court filings that Novell did not compete in the operating systems market, and therefore cannot claim to have been harmed by alleged anticompetitive conduct by Microsoft in that market.

A federal district court and the 4th U.S. Circuit Court of Appeals, based in Richmond, Va., sided with Novell and allowed the suit to proceed. Microsoft's lawyers said that decision expands the application of antitrust laws "far beyond their intended scope."

Plaintiffs in antitrust suits can seek damages that are triple the actual harm.

Microsoft fought a three-year legal battle with the federal government over whether the company was abusing its operating system monopoly to take market share in the Internet browsing market. As part of a settlement with the federal government and 17 states, Microsoft agreed to court oversight of its business practices. A federal judge in January extended that oversight to November 2012.

The Supreme Court's decision allows Novell's lawsuit to continue. The case is Microsoft Corp. v. Novell Inc., 07-924. Chief Justice John Roberts, who owns Microsoft stock, recused himself from the decision.

Microsoft shares fell 2 cents to $27.94 in morning trading, while Novell shares fell 9 cents to $5.98.

Weather & Traffic

Icon
Current Temp 63.0 °F
Mostly Cloudy
More Weather

Weather & Traffic

More Weather

On Demand

Resources and info you need to prepare for the switch to DTV.

Stay Connected

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

Marketplace