Novell disagrees with Microsoft

Novell Inc. said its agreement with Microsoft Corp. ensuring the two won't sue each other over patents isn't an acknowledgment that Linux infringes on Microsoft's intellectual property.

Novell, seller of Suse Linux, disagrees with statements made by Microsoft since the agreement was signed, according to a letter Chief Executive Officer Ron Hovsepian sent in an e-mail Monday. The letter will be posted on Novell's Web site.

Microsoft Chief Executive Officer Steve Ballmer said in a speech last week "that product uses our patented intellectual property." Novell, which is based in Waltham, Mass., and came under fire for signing the Nov. 2 deal, has endured renewed criticism from organizations that back freely developed open-source programs since Ballmer's comments.

"We disagree with the recent statements made by Microsoft on the topic of Linux and patents," Hovsepian wrote. "Importantly, our agreement with Microsoft is in no way an acknowledgment that Linux infringes upon any Microsoft intellectual property."

As part of the agreement, Microsoft and Novell agreed to ensure that Microsoft Windows and Novell Suse Linux can co-exist on a single server computer. Novell agreed to pay Microsoft at least $40 million under the patent cooperation part of the agreement. Microsoft will pay Novell $442 million.

Shares of Novell, which has about one-third of its 5,200-person work force in Provo, fell 8 cents to close at $6.22 Monday on the Nasdaq Stock Market. They have declined 30 percent this year. Shares in Microsoft, based in Redmond, Wash., rose 49 cents to $29.89.