Press Release

Novell Files Lawsuit against PMI Industries

  • Complaint Cites Copyright and Trademark Infringement and False Advertising

PROVO, Utah — August 25, 1998 — Novell, Inc. announced that it has filed a lawsuit against PMI Industries, Inc. of San Diego, California and two individuals for copyright and trademark Infringement.

The suit, filed in the U.S. District Court for the Southern District of California, alleges that PMI Industries, Inc. misused Novell trademarks, trade dress and logos to give the appearance that Novell NetWare product was full product when in reality it was upgraded NetWare product. Novell also alleges that PMI Industries, Inc. then distributed the fraudulently packaged upgrade product to resellers and/or customers that were not eligible to acquire or use the upgrade products.

In addition, Novell also alleges that the defendants acquired and sold unbundled Original Equipment Manufacturer (OEM) product and unauthorized Master License Agreement (MLA) product to unsuspecting customers. Additionally, Novell believes that PMI Industries, Inc. also acquired and sold stolen intraNetWare for Small Business diskettes.

"We have vigorously defended our trademarks and copyrights in the past and will continue to do so in the future," stated David Bradford, senior vice-president and general counsel for Novell. "Novell has made a commitment to our customers that when they purchase Novell product, they are purchasing quality and reliability. We want our customers to know that they are getting full product and not upgrades by the packaging on the box."

Novell first became aware of this matter when Novell authorized resellers forwarded a direct marketing e-mail advertisement with the infringing products to Novell's Anti-Piracy group.

Novell investigated over 1200 cases worldwide in fiscal 1997. More than $11 billion each year is lost to software piracy, according to the Business Software Alliance (BSA) and Software Publisher's Association (SPA). Novell is an active member of both the SPA and BSA.

Novell has established an anti-piracy group and telephone hotline for reporting illegal use of Novell software or making related inquiries. Novell's piracy hotline receives an average of 40 calls per week. Call 1-800 PIRATES (800-747-2837) or send e-mail to pirates@novell.com.

About Novell

Founded in 1983, Novell (NASDAQ:NOVL) is the world's leading provider of network software. The company offers a wide range of network solutions for distributed network, Internet/intranet and small-business markets, as well as the network computing industry's most comprehensive education and technical support programs. Information about Novell and its complete range of products and services can be accessed on the World Wide Web at http://www.novell.com.

Novell, NetWare and intraNetWare for Small Business are trademarks of Novell, Inc.

Novell Contact:
Ron Barker
Phone: (801) 228-8844
Fax: (801) 228-8875
Internet: rbarker@novell.com