Microsoft backs away from Novell patents

A consortium led by Microsoft seems to be reconsidering plans to buy Novell's open source patents.

The group, known as CPTN Holdings, which includes Apple, Oracle and EMC, has now withdrawn the filing.

A Microsoft spokesman confirmed this to V3.co.uk, adding, however, that it was "a purely procedural step necessary to provide time to allow for review of the proposed transaction".

Novell announced after its sale to Attachmate late last year that it had entered into an agreement to sell "certain intellectual property assets" to the consortium.

The company declined to identify the assets, but Novell holds the rights to Unix, which is something of an open source crown jewel.

Microsoft, Apple, EMC and Oracle had notified German regulators of their intention to form an official group that would go after and hopefully acquire 882 Novell patents.

The Open Source Initiative (OSI), which has opposed the moves, said in December that CPTN Holdings had $400m (£255m) lined up to invest in the patents, and urged German regulators to stop the sale and block the formation of the group.

"The creation of CPTN represents a major disruption to the competitive landscape," the OSI said in a letter to regulators.

"Whereas Novell was sincere in promoting and participating in open source software development, and had an incentive to maintain its patent assets as a defensive portfolio, CPTN has all the motives and opportunity to do the opposite."

The OSI warned that allowing the group to be formed and letting the patents fall into its hands would give it the legitimised cover it needs to "attack open source".

However, it now appears that Microsoft has decided it needs more time to consider how best to approach the deal.