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Novell Granted Judgment in Software Piracy Lawsuit

California Man Ordered to Pay Novell $680,000 Judgment is Non-Dischargeable in Bankruptcy

PROVO, Utah | November 13, 2001

Novell, Inc., a leader in eBusiness solutions and Net services software, today announced that it has been awarded a judgment in the amount of $680,000 in its case against Kenneth Nguyen of Santa Ana, Calif. The suit, originally filed in the U.S. District Court for the Central District of California for copyright and trademark infringement in 1997, was later filed in the U.S. Bankruptcy Court for the Central District of California in February of 1999.

The Court ruled that Nguyen, owner of Keynet Corporation in Fountain Valley, Calif., obtained and distributed more than 300 unauthorized NetWare® upgrade products. Among other things, Nguyen fraudulently obtained these products by submitting falsified NetWare upgrade forms to Novell. Nguyen also used a heat gun to remove upgrade stickers from the packaging of upgrade products. In addition, the Court ruled that Nguyen infringed upon the registered trademarks "Novell" and "NetWare" by issuing misleading print advertisements for the unauthorized products he distributed.

Nguyen had filed for bankruptcy, possibly in an attempt to limit his liability in the case, but the Court determined that the infringing acts were willful and malicious, thus rendering the debt non-dischargeable.

"We are pleased with the Court's ruling in this matter," stated Ed Morin, worldwide anti-piracy manager for Novell. "This judgment sends a clear message to those who intentionally infringe upon other's intellectual property rights that they cannot use bankruptcy as a shield to protect their ill-gotten gains."

Novell's Anti-Piracy Group investigates complaints of software piracy in the marketplace and on the Internet, including the illegal use and distribution of Novell's copyrighted software and other materials, as well as the unauthorized use of Novell's trademarks. The Anti-Piracy Group is committed to ensuring that Novell customers receive legitimate, licensed software and that Novell partners receive the appropriate revenues for the distribution of Novell software. To report instances of software piracy or for related inquiries, please visit the anti-piracy web site at www.novell.com/piracy or email pirates@novell.com. The Anti-Piracy Group also maintains a toll-free hotline at 1-800 PIRATES (800-747-2837).

About Novell
Novell, Inc. (NASDAQ: NOVL), is a leader in eBusiness solutions and Net services software designed to secure and power the networked world. Novell and its eServices division, Cambridge Technology Partners, help organizations solve complex business challenges, simplify their systems and processes, and capture new opportunities with one Net solutions. Novell provides worldwide channel, consulting, education and developer programs to support its offerings.

For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (4272), or visit Novell's Web site at http://www.novell.com. Information on eBusiness and integration solutions from Cambridge Technology Partners can be accessed at http://www.ctp.com. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom.

Novell and NetWare are registered trademarks of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners.

Press Contacts

Steve Kirk
Telephone: (801) 861-8801
Email: skirk@novell.com

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