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Novell Receives Favorable Judgment in Software Piracy Case
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    California Company Ordered to Pay Novell $1.16 Million

PROVO, Utah Oct. 20, 2003 — Novell today announced that it has been awarded a judgment against Keynet Corporation of Fountain Valley, California, for more than $1.16 million. Novell brought the suit against Keynet for copyright and trademark infringement.

The suit, filed in the U.S. District Court for the Central District of California, alleged that Keynet, owned and primarily operated by Kenneth Nguyen, obtained and distributed more than 300 unauthorized NetWare® upgrade products.

Novell alleged in the suit that Keynet fraudulently obtained these products by submitting falsified documentation to Novell. The suit also claimed that Keynet used a heat gun to remove upgrade labels from the packaging of upgrade products. In addition, the Court ruled that Keynet infringed upon the registered trademarks "Novell" and "NetWare" by issuing misleading print advertisements for the unauthorized products they distributed.

The Court previously ruled against Nguyen and ordered him to personally pay Novell $680,000. Nguyen filed for bankruptcy, possibly in an attempt to limit his liability in the case, but the Court determined that the infringing acts were willful and malicious, thus rendering the debt non-dischargeable.

"We are pleased that the Court saw fit to render a judgment favorable to Novell against the corporation as it previously did against the individual," stated Nathan Gage, anti-piracy manager for Novell. "We will now use this judgment to initiate our collection efforts against Keynet."

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. The Anti-Piracy Group has also established a reward program, offering a minimum of $250 or 10% of Novell's recoveries for submitting a genuine piracy lead to Novell. For more information on the reward program or to report instances of software piracy, 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).

Novell PR Contact:
Bruce Lowry
Phone: (415) 591-6523
Email: blowry@novell.com

Novell Anti-piracy Contact:
Steve Kirk
Phone: (801) 861-8801
Email: skirk@novell.com