Novell Sued by Security Dynamics Unit Over Cryptography Patent
Novell Sued by Security Dynamics Unit Over Cryptography Patent
San Francisco, April 8 (Bloomberg) -- Novell Inc., the No. 2 maker of networking software, was sued by a unit of Security Dynamics Technologies Inc., which claims Novell wrongly used its patented software for sending coded messages between computers.
San Mateo, California-based RSA Data Security Inc., which was bought by Security Dynamics in 1996, says in a lawsuit filed in U.S. District Court in San Francisco, that it is the exclusive licensee of a 1983 Massachusetts Institute of Technology patent protecting the cryptographic method -- which is copyrighted in its BSAFE computer programs.
Novell in 1990 entered into an agreement with RSA to use the software, but in violation of the agreement sold it as part of a larger package to another company, BEA Systems Inc., for $86 million, RSA says in the suit. ''Novell's breach (of the agreement) has thwarted RSA's ability to control the licensing of its patented and copyrighted technology (and) BEA has been and is now infringing the RSA patent,'' RSA alleges in the suit. RSA asks a judge to stop the alleged infringement and award damages.
Officials of Novell couldn't be reached to comment. BEA declined to comment.
Shares of Bedford, Massachusetts-based Security Dynamics, which reported $171.3 million in 1998 sales, fell 7/16 to 15 1/16 today. San Jose, California-based BEA Systems, with $289 million in 1999 sales, rose 1/8 to 16 1/2. Provo, Utah-based Novell, with 1998 sales of $1.08 billion, rose 1 11/16 to 24 3/4. |
