Novell Files Suit Alleging Unfair Trade Practices By Network Trade Center

Orem, Utah , -- July 19, 1995 --Novell, Inc. today announced the filing of a complaint in the U.S. District Court for the District of Utah, Central Division against Network Trade Center (NTC) of Sandy, Utah, a software distributor, alleging copyright infringement, trademark infringement and unfair competition, interference with existing economic relations, unjust enrichment and other related causes of action.

Novell's complaint states that NTC has acquired upgrade products through misrepresentation and in turn sells the products to misinformed end users. NTC's repeated violation of Novell upgrade policies has resulted in numerous complaints from end users and resellers who have been victims of these practices.

In the software industry, it is common to produce improved versions or "upgrades" of each software product. Novell has adopted a policy of selling upgrade licenses to original licensees of earlier versions of Novell software and, in some cases, competitive products, at greatly reduced prices. Because of the greatly reduced pricing, Novell places strict conditions on the licensing and use of upgrade products.

"Novell is very concerned that a few illegitimate resellers are misleading customers in a way that penalizes them and undermines the businesses of our thousands of authorized channel partners," said David Bradford, Novell Senior Vice President and General Counsel. "To protect our resellers and end-user customers, we intend to stamp out the abuse of Novell's NetWare# Upgrade Program. Today's action is an important part of that ongoing effort."

Novell works aggressively with customers, partners, and other vendors to enforce copyrights across its entire family of system software, network application, and information access products. 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 (801-747-2837) or send E-Mail to