The Supreme Court on Monday handed Microsoft Corp. a defeat by refusing to rule on the software giant's request to halt an antitrust suit against it.The suit was brought in 2004 by Waltham, Mass.-based Novell Inc., which said in court papers that Microsoft "deliberately targeted and destroyed" its WordPerfect and QuattroPro programs in order to protect its Windows operating system monopoly. Novell alleged that Microsoft targeted the programs because they could run on alternative operating systems and therefore could enable alternatives to Windows to gain market share.

Microsoft argued in court filings that Novell did not compete in the operating systems market, and therefore cannot claim to have been harmed by alleged anticompetitive conduct by Microsoft in that market.



A federal district court and the 4th U.S. Circuit Court of Appeals, based in Richmond, Va., sided with Novell and allowed the suit to proceed. Microsoft's lawyers said that decision expands the application of antitrust laws "far beyond their intended scope."

Plaintiffs in antitrust suits can seek damages that are triple the actual harm.

Microsoft fought a three-year legal battle with the federal government over whether the company was abusing its operating system monopoly to take market share in the Internet browsing market. As part of a settlement with the federal government and 17 states, Microsoft agreed to court oversight of its business practices. A federal judge in January extended that oversight to November 2012.

The Supreme Court's decision allows Novell's lawsuit to continue. The case is Microsoft Corp. v. Novell Inc., 07-924. Chief Justice John Roberts, who owns Microsoft stock, recused himself from the decision.

Microsoft shares fell 2 cents to $27.94 in morning trading, while Novell shares fell 9 cents to $5.98.

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