Novell Receives Settlement From Aqua Systems, Inc. in Improper Upgrade Lawsuit

Press Release

PROVO, Utah--August 22, 1995 -- Novell, Inc. announced today it will agree to settle a lawsuit against Aqua Systems, Inc., a former Novell Authorized Reseller of Bellrose, New York. The lawsuit, filed April 28, 1994, arose from charges that Aqua Systems improperly upgraded Novell product, NetWare®, on numerous occasions. Aqua Systems denied any liability, but, agreed to pay Novell a substantial settlement resulting from Aqua's actions.

Novell's original complaint was filed in the United States District Court, Eastern District of New York (Brooklyn, New York). The complaint charged, among other things, that Aqua Systems was in violation of their signed Novell reseller and upgrade agreements. Novell claimed that Aqua Systems improperly obtained "upgrades" of Novell software at reduced prices by repeatedly upgrading using the same serial numbers.

Novell's upgrade policy consists of selling upgrade licenses only to original licensees of earlier versions of Novell software, or of competitive products, at greatly reduced prices. Aqua Systems was terminated as a Novell Authorized Reseller in June of 1994. Novell plans to actively pursue any organizations taking unfair or unauthorized advantage of this program.

Novell's Senior Vice President and General Counsel, David Bradford, stated, "Novell is pleased with the settlement. We will continue to strongly protect our intellectual properties, our customers, and investments across our complete family of systems software, network applications and information access and management 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 pirates@novell.com.