Novell Receives Settlement From Aqua Systems, Inc. in Improper Upgrade Lawsuit
PROVO, Utah--August 22, 1995 -- Novell, Inc. announced today
it will agree to settle a lawsuit against Aqua Systems, Inc., a former
Novell Authorized Reseller of Bellrose, New York. The lawsuit, filed April
28, 1994, arose from charges that Aqua Systems improperly upgraded
Novell product, NetWare®, on numerous occasions. Aqua Systems
denied any liability, but, agreed to pay Novell a substantial settlement
resulting from Aqua's actions.
Novell's original complaint was filed in the United States District
Court, Eastern District of New York (Brooklyn, New York). The complaint
charged, among other things, that Aqua Systems was in violation of their
signed Novell reseller and upgrade agreements. Novell claimed that Aqua
Systems improperly obtained "upgrades" of Novell software at reduced
prices by repeatedly upgrading using the same serial numbers.
Novell's upgrade policy consists of selling upgrade licenses only
to original licensees of earlier versions of Novell software, or of
competitive products, at greatly reduced prices. Aqua Systems was
terminated as a Novell Authorized Reseller in June of 1994. Novell plans
to actively pursue any organizations taking unfair or unauthorized
advantage of this program.
Novell's Senior Vice President and General Counsel, David
Bradford, stated, "Novell is pleased with the settlement. We will continue
to strongly protect our intellectual properties, our customers, and
investments across our complete family of systems software, network
applications and information access and management products."
Novell has established an anti-piracy group and telephone hotline
for reporting illegal use of Novell software or making related inquiries.
Call 1-800 PIRATES (801-747-2837) or send e-mail firstname.lastname@example.org.