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By Paul Festa
Posted on ZDNet News: Nov 19, 2003 8:15:00 PM

Novell has denied claims by SCO Group that its planned acquisition of SuSE Linux violates an 8-year-old noncompete agreement.

The enterprise software company issued a statement on Tuesday dismissing a claim by SCO CEO Darl McBride that the acquisition contravenes an agreement signed in 1995. That's when Lindon, Utah-based SCO acquired Unix System 5 from Novell.


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"Mr. McBride's characterization of the agreements between Novell and SCO is inaccurate," Novell said in the statement. "There is no noncompete provision in those contracts, and the pending acquisition of SuSE Linux does not violate any agreement between Novell and SCO."

The Provo, Utah-based software maker went on to say that it had not received "formal communication from SCO on this particular issue" and that it would respond if the Linux antagonist formally pursued the matter.

McBride's comments were made during a conference call on Monday in which he discussed SCO's continued retention of Boies Schiller & Flexner, a law firm whose partner David Boies represented the U.S. government in its antitrust case against Microsoft.

"We bought the Unix System 5 rights from Novell back in '95, and there was noncompete language that would prevent Novell from competing against our core offerings," McBride was quoted as saying in a transcript provided by SCO. "Linux is a knockoff of Unix. There can't be a more straightforward reading of the noncompete clause."

By "reading," SCO clarified on Wednesday, McBride meant "violation."

In the conference call, McBride hedged on whether SCO intended to sue Novell over the alleged contract infringement.

"When the Novell-SuSE deal is complete, we will take measures to enforce the noncompete agreement with Novell," McBride said, according to the transcript. "I don't know that it will turn into a lawsuit. That depends upon how they respond, and if they put a competitive product in the marketplace."

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  • Most Recent of 35 Talkback(s)
OK
1. Monopolies are not illegal in America. Microsoft was never convicted of being a monopoly. It was found guilty of abusing the monopoly power given to it by the buying public to wrongfully exclude co... (Read the rest)
Posted by: John Dulles Posted on: 11/20/03 You are currently: a Guest | | Terms of Use
It's all fun until someone loses an eye  LinuxHippie | 11/19/03
What?  OhMyGosh | 11/19/03
You want legal  Patrick Jones | 11/19/03
Now finish the sentence  John Dulles | 11/20/03
finish the sentence ??? How about you get to LAW-101  Terfenol_D | 11/20/03
OK  John Dulles | 11/20/03
Missed it.  LinuxHippie | 11/20/03
why would you want to  lmaxwell | 11/20/03
Philosophically....  John Dulles | 11/20/03
Novell is wrong I believe..  Mike Cox | 11/19/03
LOL  Arrg | 11/19/03
LOL  SC-man | 11/20/03
ROTHLMAO  B.O.F.H. | 11/19/03
Quick!!!  BitTwiddler | 11/19/03
McPride  lotta_anger | 11/20/03
Poker or Baseball  John Dulles | 11/20/03
Ok.....  Delaware Boy | 11/19/03
SCO has no need for Developers  voska | 11/19/03
Re: OK.....  issthatso | 11/20/03
It's not about software anymore....  Zen37 | 11/19/03
Of course it will !  BitTwiddler | 11/19/03
SCO Group did NOT buy anything from novell!  mobrien_12@... | 11/19/03
Uh huh, anything you say.  No_Ax_to_Grind | 11/19/03
mobrien_12 is correct  dgingras@... | 11/19/03
SCO has no clue...  No_Ax_to_Grind - | 11/19/03
but...  ryusen | 11/19/03
but but  mobrien_12@... | 11/19/03
or as ZZ would be saying right about now...  Dave P. | 11/19/03
BUT.. This is different  slopoke | 11/20/03
One little detail  Yagotta B. Kidding | 11/19/03
Not like McBride would have noticed  Dave P. | 11/19/03
David Boies = Devil?s Advocate (?)  Vily Clay | 11/19/03
Did you say, eight-year non-compete deal...  Robert Carnegie | 11/20/03
Unenforceable eight year non compete  realgomer | 11/20/03
In other news  Arrg | 11/20/03

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