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Novell Receives Summary Judgment against Software Counterfeiter Judge Rules that Bankruptcy is not a Protection for Manufacturing and Selling Counterfeit Software Orem, Utah -- June 17, 1996 -- A federal judge in bankruptcy court has ruled that Shawn Richeson, President of RTI of Killeen, Texas cannot hide behind bankruptcy in responding to a software piracy lawsuit filed by Novell, Inc.. Novell sued Richeson and RTI for illegally manufacturing and selling counterfeit software. The original lawsuit was filed in November 1994 in the United States District Court for the Western District of Texas in Waco. RTI filed for bankruptcy in August 1995; however, federal law mandates that intentional torts, such as counterfeiting, cannot be discharged in bankruptcy. This ruling follows a precedent setting ruling that Novell received in the state of California in an earlier case. The judge there also ruled that a defendant, MedPerfect, could not use bankruptcy as a shield against software piracy litigation. Novell's anti-piracy team received information that RTI was selling counterfeit versions of Novell software to several branches of the United States Army without the Army's knowledge. Federal Marshals, working with Novell's investigators, seized RTI's equipment, business records and counterfeit copies of software in November 1994. The equipment included computers used to manufacture the counterfeit software, high-speed disk duplicating machines, shrink wrap equipment and the blank disks and labels used in the counterfeiting. "We are very happy with the judge's ruling in this case," stated David Bradford, Senior Vice President and General Counsel for Novell. "Software piracy involves many victims; in this case the victim was the United States Army. We have demonstrated once again that Novell is committed to fight this type of activity and that we will not allow counterfeiters to use the Bankruptcy laws as a shield to legal liability." Novell, Inc. maintains membership in the Business Software Alliance (BSA) and the Software Publisher's Association (SPA), organizations devoted to fighting software piracy. According to the BSA, piracy costs the software industry over $15 billion annually. Novell maintains one of the industry's best anti-piracy programs and has set up a hotline for reporting illegal use of Novell software or making related inquiries. Call 1-800-PIRATES (800-747-2837) or send e-mail to pirates@novell.com. Novell, Inc. (NASDAQ: Novell), is the world's leading networking software provider. Novell software provides the infrastructure for a networked world, enabling our customers to connect with other people and the information they need, any time and any place. Novell partners with other technology and market leaders to help customers make networks a part of their everyday lives. Novell is a trademark of Novell, Inc.
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