Netware pirates to pay back Novell

US and European software pirates must pay Novell $12.7 million after the networking company won a legal battle against counterfeit software resellers.

Californian courts awarded Novell the settlement after resellers were accused of counterfeiting its Netware product and distributing it throughout the US and Europe. The counterfeiting activities included printing boxes, labels and removing the word upgrade from boxes.

Novell filed complaints in the US District Court in February 1996, but since the filing the majority of the dealers named have settled with the networking vendor.

But Novell took action against Softcom Computers, Software Distribution Centre, Allnet Computers, Advanced Digital, Digital Soft Technologies, Grand Software and 10 individuals. They were found guilty of selling upgrade products as new and pocketing the profit.

Commenting on the legal battle, Novell said that it was pleased and the ruling showed software pirates will be prosecuted. The company did not say how much of the money it expected to receive from the defendants or how many are based in the US.

This is the latest action that Novell has taken against resellers for selling counterfeit product. In August, it reached a settlement of $130,000 against Super Resources. It first filed the case in February 1997, alleging that Super Resources, also known as High Tech Mart, was filling out upgrade forms using the same original serial number in order to receive multiple upgrades.

According to the Business Software Alliance and the Software Publishers Association, more than $11 billion a year is lost due to software piracy.

Novell claimed that it investigates more than 500 cases worldwide every year.