Utah Company Pays Novell More Than $500,000 in Settlement

PROVO, Utah — April 12, 2002 — Novell, Inc., the leading provider of Net business solutions, today announced that it has achieved a successful conclusion in its case against Computer Recyclers of Orem, Utah. Novell brought a suit against Computer Recyclers and its principal owner, Tim Bird, in May of 1998 for copyright and trademark infringement. Three other Computer Recyclers' employees were also named as defendants in the suit.

In the lawsuit, filed in the U.S. District Court for the Central District of Utah, Novell alleged that the defendants distributed counterfeit copies, stolen copies, and unbundled OEM copies of Novell's copyrighted software. Novell also alleged that the defendants used a heat gun to remove upgrade labels from boxes of Novell upgrade software and then distributed the altered packages as non-upgrade software. In addition, Novell claimed that the defendants advertised these products, among other unauthorized Novell products, in nationwide print ads, in direct mailings, and on the Internet, using Novell's registered trademarks.

Most of the allegations were settled between the parties in December of 2000 but other allegations, dealing largely with Novell's copyright infringement claims, were left up to the Court for a decision on summary judgment. The Court ruled in Novell's favor, and Computer Recyclers recently paid Novell an additional sum of money, bringing the total that Novell has received to just over $500,000.

"This brings to a successful conclusion one of Novell's most significant copyright and trademark infringement cases," stated Jim Lundberg, Associate General Counsel for Novell. "We have invested a substantial amount of time and energy in this case and are very pleased to finally have it resolved in a positive way for Novell."

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).

Press contacts:
Steve Kirk
Novell, Inc.
Phone: (801) 861-8801
Fax: (801) 861-8875
E-mail: skirk@novell.com