SCO About To Go Under
"Novell has claimed that The SCO Group, the licensing and consulting firm conducting various legal campaigns over the Linux operating system, is about to go bankrupt. Read on to find out more..."
Published: 14th January 2007 | Source: ZDNET |14/01/07
In an interesting turn of events, it appears that SCO is about to enter into insolvency. The SCO Group , who inherited the intellectual property for the Unix operating system, and were famous for suing IBM for more than $1 billion, alleging Big Blue misappropriated SCO's Unix technology and built it into Linux. But, things don't appear to be peachy for the SCO Group this week after a court filing reported this week by legal Web site Groklaw, Novell claimed that SCO should pay it almost all of the Unix licensing revenue it has received from Sun Microsystems and Microsoft. This revenue amounts to almost US$26 million, and was earned by SCO when it sold Unix licenses to Sun and Microsoft in 2003.
This revenue helped SCO to mount a legal battle in support of its claims that IBM violated SCO's intellectual property by including proprietary code from Unix on which SCO claims copyright in Linux. Novell argued that it is owed that revenue. In 1995, it transferred Unix and UnixWare to Santa Cruz Operations (now SCO) under a deal called the Asset Purchase Agreement (APA). The deal stated that SCO would hand over 95 percent of all revenue it received from SVRX (Unix System V) license agreements.
|"Contrary to SCO's assertion that a preliminary injunction should be denied because it may accelerate SCO's bankruptcy, SCO's imminent bankruptcy is a compelling reason to grant Novell's motion. When SCO goes into bankruptcy, it will not be because of Novell's motion, but because of its own financial missteps," the software maker stated in its court filing. (The filing, titled "Novell's reply to SCO's opposition to Novell's motion for partial summary judgement or preliminary injunction," is available on Groklaw.) "For SCO, bankruptcy is inevitable; it characterises its assets as merely those 'remaining' and does not rebut Novell's arguments that its bankruptcy is imminent. Once this bankruptcy occurs, Novell will lose all ability to collect its judgment," Novell added.|
SCO has of course denied that it is on the verge of financial disaster.
Certainly interesting times ahead for SCO. Feel free to comment on this article in our forum.