The suit brought by Novell alleged that, through anticompetitive tactics, Microsoft encouraged Novell to develop products but then withdrew support as it launched Windows 95.
As part of the companies' nearly 2-year-old alliance, the two say they are working together to support Novell's Suse Linux operating system running on Microsoft's hypervisor.
The companies ramp up their existing interoperability deal that gives corporate users a bridge between Windows and Linux.
Cementing a peculiar partnership among rivals, Microsoft and Novell are opening an eight-employee lab to make products interoperable.
The two companies vow to optimize virtualization servers and directories, with an interoperability and testing lab planned.
Landmark deal could still bring together open-source and commercial software business models, Microsoft lawyer Brad Smith says.
Survey commissioned by the two companies asserts that their high-profile agreement will drive customers away from joint rival Red Hat.
update Novell CEO issues open letter saying deal is not an admission that the open-source OS infringes on Microsoft's patents. New GPL clause to flip Microsoft-Novell agreement on its head?
New technical and legal partnership is meant to take Red Hat down a notch--and could help Novell too.