Microsoft has agreed to stop the dissemination of statements about
e-business solutions company Novell that are the centre of a false
advertising lawsuit filed by Novell earlier this month against
Microsoft. It will also send a retraction letter to 3,000 Novell
customers.
As a marketing exercise, Microsoft sent fake breakfast cereal
boxes entitled “Server Crunch” to 3,000 Novell customers in August.
The cereal packet read:
"What's the expiration date on that NetWare
platform? As a result of the recent Cambridge Technology Partners
merger, Novell is shifting its focus from software development to
consultancy services. You're left with a server platform without
the full support of its manufacturer. Which means increasing costs
as it rapidly becomes obsolete, forcing you to implement
time-consuming retrofits."
Novell successfully argued that the statements about Novell's
NetWare product having an “expiration date” and its acquisition of
Cambridge Technology Partners were false.
Microsoft has also agreed to send a retraction letter along with
corrective information of Novell's choosing to the same Novell
customers who received the original “Server Crunch” marketing piece
containing what Novell asserts are false and misleading statements
about Novell. Novell will continue to pursue the lawsuit to recover
damages.
Microsoft's correction letter will include the following
excerpt:
"Contrary to the statements made about
Novell on the package by Microsoft, Novell has advised Microsoft
that it is growing and expanding its software business, while
adding significant resources to its existing consulting services
business. Accordingly, Microsoft retracts its statements that
Novell will not fully support NetWare, that NetWare has an
'expiration date' or that it is or will become 'obsolete,' and that
NetWare will become costly and time-consuming to maintain."
