Remember WordPerfect? In the 1980s, it was the leading word processor on the PC platform. The program became part of Novell Corp.'s plan to challenge Microsoft as the leading software supplier for PCs. A vestige of that battle lives on in a $1.2 billion lawsuit that refuses to die.
Forgive me if I indulge in a little history here. There's no way to understand these events without appreciating the way the PC world looked in the days of MS-DOS and 16-bit Windows.
Utah-based Novell was a very successful company in the 1980s. It published NetWare, the network operating system that ran on virtually all networked PCs. The company was also the market-leading seller of network cards. Even in those days, Novell walked an anti-Microsoft line. The boot loader for NetWare was DOS – not MS-DOS, but Novell DOS, a descendant of MS-DOS clone DR DOS, which Novell acquired in 1991 with its purchase of Digital Research.
Following the Digital Research purchase, Novell went on a buying spree, seemingly to compete with Microsoft. It bought WordPerfect to compete with Microsoft Word and Quattro Pro to compete with Excel. Novell bought Unix Systems Laboratory from AT&T, and was for a time the only publisher of Unix.
Events did not play out in Novell's favor. Novell DOS never made a dent in the MS-DOS market. Microsoft Office outsold Novell's competing offerings. Desktop Unix required computer horsepower beyond most consumers' reach, and Windows solidified its position as the ubiquitous OS on the desktop.
Novell wound up selling off virtually all of its products just a couple years after acquiring them. The company remains in business today as a subsidiary of Attachmate. Novell is the vendor behind SuSE Linux and a publisher of various enterprise tools, most of which, I admit, I've never heard of.
Oh, and one more thing. Novell is the plaintiff in a long-running legal battle against Microsoft, a battle that could result in a $1.2 billion return on Attachmate's investment.
Novell's lawsuit against Microsoft centers around the introduction of Windows 95. This was a major release for Microsoft, which was looking to transform the kludgy, DOS-with-a-pretty-face Windows 3.x line with a significant rewrite, 32 bits from the ground up. Novell's WordPerfect was the leading word processor in the days leading up to the Windows 95 launch, and Novell expected to continue to milk the WordPerfect cash cow.
But it didn't turn out that way. Windows 95 turned out not to be a good host for WordPerfect. Novell claims that Microsoft disabled four APIs that were necessary for Windows versions of WordPerfect and Quattro Pro to run in the Windows 95 environment. Microsoft doesn't deny this claim, but says the changes were necessary to make Windows 95 more robust. WordPerfect's market share dropped from 50 percent in 1990 to less than 10 percent in 1996.
Microsoft founder Bill Gates, who was chairman and CEO of the company during the time period covered by the lawsuit, testified in the trial that Microsoft's actions were not intended to thwart Novell. Microsoft's lawyers argued in court that Novell made a series of poor decisions that meant WordPerfect couldn't keep up with Windows technology.
However, an internal e-mail seems to contradict this testimony. The e-mail, from Gates to senior vice-president Brad Silverberg and other Microsoft employees, covered the shell, which displayed file names in Win95, and API extensions that allowed developers to access it. Gates wrote: “I have decided that we should not publish these extensions. We should wait until we have a way to do a high level of integration that will be harder for likes of Notes, Wordperfect to achieve, and which will give Office a real advantage.”
The Novell-versus-Microsoft suit has been raging since 2004. It has been dismissed a couple times for technical reasons, but Novell has continued to pursue the matter. The most recent resurrection of the suit resulted in a deadlocked jury on December 16. The Associated Press and other sources have reported that while 11 jurors were inclined to accept Novell's arguments, one juror remained irrevocably unconvinced. The judge asked both Novell and Microsoft if they would accept a verdict that was not unanimous, and Microsoft declined. The judge then dismissed the case.
Novell has promised that it will seek another trial. With more than a billion dollars at stake, and with 11 of 12 jurors apparently agreeing with its arguments, it has little to lose.
Web recommendation: I don't usually track stock-market transactions, but I've followed with bemused interest the hailstorm of news stories about last week's initial public offering of Zynga Inc. It was the biggest U.S. IPO since Amazon went public in 2004, and it put $1 billion in Zynga's bank account. Not bad for a company that's best-known for the annoying Farmville app on the Facebook platform. Pundits are reading a lot into the “fizzle” of Zynga's stock, which opened at $10 per share but ended the day at $9.50. Analysts are using these results to prove their pet theories about the end of easy money in the tech sector. (My own thought: A billion bucks? For Farmville? If that isn't easy money, I don't know what is.) The most sensible analysis of Zynga's IPO comes from Robert Hof at forbes.com: Zynga IPO goes SplatVille. What went wrong? J.D. says check it out.
J.D. Hildebrand has written hundreds of articles for dozens of publications and online communities dedicated to software development. He recently learned that the monkey called Curious George in American children's books is known as Zozo in England and Coco in Germany. In other countries he is known as Bingo, Nicke, Piete, and Peter Pedal. Go figure.