8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): August 28, 2003

                                Corel Corporation
             (Exact Name of Registrant as Specified in Its Charter)

Ontario, Canada                      1-20562                          N/A
(State or other                    (Commission                   (IRS Employer
jurisdiction of                    File Number)                Identification #)
incorporation)

                  1600 Carling Ave., Ottawa, Ontario A6 K1Z 8R7
                     (Address of Principal Executive Office)

                                 (613) 728-8200
              (Registrant's Telephone Number, Including Area Code)



Item 5. Other Events and Regulation FD Disclosure.

      See the attached press release, dated August 28, 2003.

Item 7. Financial Statements and Exhibits.

      (c) Exhibits.

            The following exhibit is filed as part of this report on Form 8-K.

            Exhibit 99.1 Press Release, dated August 28, 2003.



                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                  COREL CORPORATION

                                  By: /s/ Joel Price
                                      ------------------------------------------
                                      Name:  Joel Price
                                      Title: Vice President, Finance and Interim
                                             Chief Financial Officer

Dated: August 28, 2003



                                  EXHIBIT INDEX

Exhibit        Description
- -------        -----------
 99.1          Press Release, dated August 28, 2003

EX-99.1

                                                                    Exhibit 99.1

[LOGO] COREL(TM)

                              For Immediate Release

                    Corel Acquisition by Vector Now Complete

Ottawa, Canada - August 28, 2003 - Corel Corporation (NASDAQ: CORL, TSX: COR)
today announced the successful close of the acquisition of Corel by the Vector
Capital Group which will result in Vector Capital acquiring all the common
shares of Corel for US $1.05 (or approximately Cdn $1.48 based on recent
exchange rates) per share. Corel's securities are expected to cease trading by
the close of markets today on the NASDAQ and by the close of markets on Tuesday,
September 2, 2003 on the TSX.

"This is an exciting day for Corel as we begin a new chapter in the Company's
history," said Derek Burney, President and CEO of Corel. "Vector is a committed
and enthusiastic partner who will work with Corel to build customer
relationships and capitalize on the Company's potential. We look forward to a
successful future for Corel as we devote even greater focus and energy to
delivering productive software solutions to our customers and partners
worldwide."

"We are pleased to complete this transaction and consummate a union which will
benefit Corel and its customers," said Alex Slusky, managing partner at Vector
Capital. "We are committed to working with Corel's dedicated employees to
provide the highest quality software and services to our diverse base of
partners and customers worldwide."

About Corel Corporation

Founded in 1985, Corel Corporation (www.corel.com) is a leading technology
company specializing in content creation tools, business process management and
XML-enabled enterprise solutions. The company's goal is to give consumers and
enterprise customers the ability to create, exchange and instantly interact with
visual content that is always relevant, accurate and available.

Vector Capital

Vector Capital is a San Francisco-based venture capital and private equity firm
focused on special opportunity investments in software and information
technology services. Vector serves the needs of growing software companies by
actively partnering with their management in creating value for their customers
and shareholders. Vector Capital's investments include LANDesk Software, Savi
Technology and ProcessClaims. Additional information about Vector Capital can be
obtained at www.vectorcapital.com.

This press release contains forward-looking statements as defined by the United
States Private Securities Litigation Reform Act of 1995, involving the company's
expectations about future financial results and other matters. These



statements reflect management's current forecast of certain aspects of the
company's future business. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results of operations to
differ materially from historical results or current expectations. The words
"plan", "expect", "believe", "intend", "anticipate", "forecast", "target",
"estimate" and similar expressions identify forward-looking statements. Risk
factors include shifts in customer demand, product shipment schedules, product
mix, competitive products and pricing, technological shifts and other variables.
Readers are referred to Corel's most recent reports filed with the Securities
and Exchange Commission for a more complete discussion of the other risks and
uncertainties. The factors underlying forecasts are dynamic and subject to
change. As a result, forecasts speak only as of the date they are given and do
not necessarily reflect the company's outlook at any other point in time. The
company does not undertake to update or review these forward-looking statements.

                                      -30-

(C) 2003 Corel Corporation. All rights reserved. Corel and the Corel logo are
trademarks or registered trademarks of Corel Corporation and/or its
subsidiaries. All other product, font and company names and logos are trademarks
or registered trademarks of their respective companies.

For further information:

Media:

Corel Corporation                      Vector Capital
Anne Vis                               Heather Busseri
Corel Corporation                      Lute & Company
(613) 728 0826 ex 5182                 (416) 929 5883 ex 224
anne.vis@corel.com                     hbusseri@luteco.com

Investors:

Deborah Pawlowski                      MacKenzie Partners Inc.
KEI Advisors                           Toll free: 1 800 322 2885
(716) 843-3908                         Collect:  (212) 929-5500
dpawlowski@keiadvisors.com             Proxy@mackenziepartners.com