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."

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