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Novell Receives Cash Settlement in Software Piracy Case New York Company Pays $625,000 to Resolve Copyright and Trademark Infringement Claims PROVO, Utah — Sept. 21, 1999 — Novell, Inc. announced that it has settled its lawsuit against Computer Add-Ons Inc. of Flushing, N.Y., for copyright and trademark infringement. The settlement includes cash payment of $625,000 already received by Novell as well as a permanent injunction preventing Computer Add-Ons from dealing in Novell products without Novell's written consent. Novell filed the suit in October 1998 in the U.S. District Court for the Eastern District of New York, alleging that Computer Add-Ons tampered with the packaging of Novell upgrade software to make it appear as original software. Computer Add-Ons then sold the tampered products to customers who were not eligible for upgrades. The suit further alleged that Computer Add-Ons used the Novell and NetWare trademarks as well as the Novell logo in their advertising to create the impression that they were an authorized partner of Novell, when, in fact, they were not. "This is another case demonstrating Novell's continued support for its channel by taking action against those who compete unfairly and engage in this type of illegal activity," stated David Bradford, senior vice president and general counsel for Novell. "In order to protect our customers and to assist our partners dealing in legitimate Novell products, our approach to combating piracy must continue to be aggressive." Novell investigated over 1,300 cases worldwide in fiscal 1998. More than $11 billion each year is lost to software piracy, according to the Business Software Alliance (BSA) and the Software& Information Industry Association (SIIA). Novell is an active member of both the BSA and SIIA. 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 (800-747-2837) or send e-mail to pirates@novell.com. The anti-piracy group also has a Web site at www.novell.com/piracy. About Novell Novell, Inc. (NASDAQ:NOVL) is the world's leading provider of directory-enabled networking software. Novell solutions give businesses total control of their private networks and the Internet, simplifying the management of user access and identity. Novell's worldwide channel, consulting, developer, education and technical support programs are the most extensive in the network computing industry. 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. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at http://www.novell.com/advantage. For information on the Year 2000 status of Novell products, please access Novell's Year 2000 Web site at http://www.novell.com/year2000 or contact Novell's Customer Response Center at year2000@novell.com. 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.
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