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."

[aka_tripleB]

I thought the government was pro-competition

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.<br /><br />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.

[bcpower]

The Gubment IS pro-competition...

That's why anti-trust laws exist. Microsoft, and more specifically Bill Gates, has always used it's power of monopoly to kill off competition (i.e. Novell, Netscape, etc.). Bill Gates isn't where he is today because he is a smart business man. He is where he is today because he's an unethical and evil businessman. Bill Gates sold his soul to the devil. His judgment is coming. Repent!

[gryfen]

Pro-Competition

Issue with your comment: your opinion that Office was easier to use is a valid opinion, for you, but that doesn't give it any weight in the legal argument. There are still ppl today who use old versions of Word Perfect that work fine today - most complaints I have personally encountered have to do with its compatibility with Office, or lack thereof. Which has nothing to do with it's actual usability as a document processor.<br /> The argument that Microsoft used its de facto monopolistic power to crush the competition, as they have over, and over, is a valid argument, and I personally think is accurate.<br /> If you think that dismissing this argument would be a pro-competition action, you are sadly mistaken, it would be *against* competition. The Republicans, despite what they say, have proven themselves to be anti-comptetition rather than pro- most of the time. But if you aren't clued into their 'pay attention to what I say, not what I do' stance by now, you aren't paying attention. Which, IMHO, is one of the saddest state of affairs today with Americans.

[Renegade Knight]

Pro Competition

MS Products of the Era that Novell was talking about were second rate. Excell was ok but Lotus and Quatro pro were both better. AMI Word Pro was the best Windows word processor. Word Perfect the best Dos and having a bit of trouble with the windows Transition (rather like MS with it's own software).<br /><br />If everyone had equal access to windows then that's fair market competition. When MS uses it's distribution agreements to funnel a 'free' version of it's 2nd rate software with every system to the point that everyone using Word Perfect, and Lotus start using the free version they got with their computers...free market competition was circumvented.<br /><br />All business would do what MS did given the chance. That's why we have a government that regulates monopolies. To deal with the companies that do end up in a position to shut out the competition via methods that have to do with anything but the strength of the products merits. Toyota wins on quality. That?s fair. Toyota buying all dealerships with the cash they made from having quality, and then shutting out GM and Ford. That?s monopoly.

[Westcoaster37]

MS is anti-competitive!

The issue is not whether the US government is pro-competition. Nor is it whether Novell or MS has or had a better office suite.<br /><br />The crux of the matter is Novell and others (including the US government and the EEC) believes MS has illegally used their operating system monopoly to run competitors out of business.<br /><br />Not sure what purpose is served here by including a bio but,in the spirit of the original posting, I was born in the mid 1930s, have owned a variety of Macs and PC's over the years (presently own 4 Macs, two PCs and an old Osborne Executive) and minimize my purchase of MS products not on any technical grounds but because they personify to me much that is evil and unethical in a large corporation. <br /><br />In addition, MS has taken a perfectly good word in the english language, innovation, and perverted it. Embrace, extend and then extinguish a competitors innovation is what MS does best. <br /><br />If MS had been around when the wheel was invented the wheel would not be round.

[Commander_Spock]

For Your Information (FYI)...

... it will appear that you have "left out" from the discussion an important "something" that occurred the same year you you were born; it is about the "Spread Sheet that started it all" - Lotus1-2-3. (How could you?). Well at one time we also wondered what was the relationship between the OS/2 Operating System and Lotus 1-2-3 not able to compete highly competitively with Windows and Excel; ultimately, research informed our judgement that there were somethings that Microsoft kept in underground bunkers (they kept these hidden away from the Lotus Development Corporation and IBM as well); and, they are called "Windows Application Processing Interfaces) "APIs" This is apparently got the "dudes" from Redmond into "very hot water" with the European Commission which has recently fined them billions of dollars. So there you have it!

[theoxygenthief]

Antitrust Legislation

Please do yourself and others a favour and do some basic research about Antitrust legislation before commenting on the issue. Wikipedia has a sufficient summary.

[Kalama]

Please read the article fully

"In its case, Novell also said that Microsoft withheld technical information to make WordPerfect work with Windows 95."<br /><br />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.<br /><br />Example: company A make the OS. Companies B &#38; C produce a product to work with the OS, both need reasonable information to have their product work <br />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.<br /><br />In this case, it is alleged, is seems that company A &#38; company B are the same. So why would company AB do anything to assist with company C's product <br />when that product goes Head-to-Head with the company B product ???<br /><br />BTW - Ain't if great the the guys who "'invented" the spreadsheet didn't patent it ?<br /><br />{{ Mac 128 / MS Multi-Plan 1984 not mentioned in the following ...History of Spread Sheets -- dssresources.com/history/sshistory.html }}

[Renegade Knight]

Reading What you Wrote

Since MS producted an operating sytem, it's reasonable to expect that they would(and should) issue the information so all other companies that make software need to work on Windows.<br /><br />MS won the Windows war because they had all the software while OS/2 had nowhere near as much.<br /><br />However later MS came to the market and pushed out the main software makers for windows(who helps MS win the OS war) by using their distribution advantage and knowledge of windows.<br /><br />Novell has a strong case on MS business practice. Early Microsoft windows products were 2nd rate. They won the windows market share war for other reasons.

[Lanman1]

Let us not forget

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.<br /><br />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.<br /><br />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.<br /><br />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.

[westley52]

Let us watch and see

"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."<br /><br /><br />Microsoft talks a good game - but has the animal really changed its stripes? Only time and the vote of the upcoming OOXML ( they stand to lose big business if it is not approved ) will tell. Let us watch and see if Microsoft STAYS as open and DELIVERS openness after the OOXML vote.

[Lanman1]

couldn't have said it better

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.<br /><br />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.

[PortVista-19095313035016904102]

A victory for the lawyers, loss for tax payers!

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?

[russkeller]

Well Said!

If the government was really interested in serving the public and promoting anti-trust laws they'd of broken microsoft up a long time ago.

[oxtail01]

Victory for the little guys

Innovators in early Windows software was certainly NOT MS. In fact, outside of DOS and then Windows, MS had little to offer in terms of compelling software. Almost every worthwhile advancements in word processor, database, and spreadsheet application MS either stole or bought out. It was well known that MS withheld key information from Lotus, Wordperfect, Borland (who were the first ones with killer Windows spreadsheet in Quattro Pro) to deny them easy conversion to Windows from DOS so that MS could push their Office Suite.

[t8]

Good job!

It seems the law is working.<br /><br />Microsoft withheld (hidden) API's for themselves and gave other organizations API's that didn't work with Windows as well (less memory).<br /><br />So if Microsoft illegally used it's OS to gain dominance in other areas, then this is a prime example of that.<br /><br />People are often too quick to forget or are just plain ignorant of the facts. <br /><br />Microsoft deserves to lose this and pay out a settlement many more times than Novell could have made from it's office product.<br /><br />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.<br /><br />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.<br /><br />In the meantime Microsoft should be held accountable for their past behavior.

[Commander_Spock]

Can't Blame Microsof For Everything Though!

Didn't you read this story about the early days of the PC industry?:<br /><br />"IBM first approached Digital Research and asked them to create a version of CP/M (Control Program/Microcomputer). The owner of DR snubbed the IBM lawyers and went flying or golfing (depending upon whose story you hear) instead..."<br /><br />To repeat; "The owner of DR snubbed the IBM lawyers and went flying or golfing (depending upon whose story you hear) instead..." Got to give Microsoft lots of credit in some ways for responding to IBM's Request/Needs at that time in the history of the development of the PC. ;-) !<br /><br /><a class="jive-link-external" href="http://www.os2bbs.com/os2news/OS2History.html" target="_newWindow">http://www.os2bbs.com/os2news/OS2History.html</a>

[Travis Ernst]

Shred Bill

MS has always been the bully (and cheat) in the schoolyard of <br />computers. What most people refuse to do, and think they can't <br />is DON'T DO WINDOWS. You are not forced to use their inferior <br />products. Go Linux. I remember Windows 3. Talk about <br />unstable. It also was the version that struck attacks at other <br />programs. They claimed it was "accidental". RIGHT. We know it <br />was so people would use MS's programs over other companies.<br /><br />On another OS, after a bad version of MS worst (word) <br />HUNDREDS of MAJOR holes, I have NEVER purchased another <br />program from them. I have used the comp versions, or other <br />companies programs. I have refused to give Bill's company <br />money. Now there are three choices you can use over office.<br /><br />I hope MSFT gets nailed. I wish the court would have followed <br />through on their decision and forced them to be split up into 2.

[vfcs]

Guilty As Charged!

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..<br /><br />GUILTY GUILTY GUILTY AS CHARGED!

[commercebob]

Novell did the most harm to themselves

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.

[Commander_Spock]

When Will The Folks At "Redmond" et al Get Really Serious...

... 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:<br /><br />"Computer Model for Feasibility Analysis and Reporting-COMFAR"<br /><br />"Project analysis, evaluation and management software by UNIDO".<br /><br />"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.<br /><br />Today, over 1500 licensees are using COMFAR in about 130 countries for project analysis and appraisal..."<br /><br /><a class="jive-link-external" href="http://www.win2biz.com/comfar/default.htm" target="_newWindow">http://www.win2biz.com/comfar/default.htm</a><br /><br />Read the subject line!

[y82whs]

12 to 14 years old

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

[TheSmellyMoa]

MS Will Eat Your Mom's Kidneys & Send You the Cleaning Bill for Their Shirt

Did you expect them to act like they're members of a community called civilization? <br /><br />They're lawyers.<br /><br />At heart, MS is a gangland law firm that hires enough programmers to pretend to be a software company.<br /><br />I mean, look at the CEO. Sold cakes for Duncan Heinz then took a job with his squeaky-voiced college buddy's firm. <br /><br />When Ballmer stops dancing and talks about technology, he sounds exactly like a guy from a baked goods company.