SCO Gets Wrist Slapped Over Novell Unix Copyrights

from the this-ain't-over-yet dept

More than five years after SCO went on its quixotic quest to try to sue Linux out of existence, it's finally had to pay at least some of the price. As you probably know, soon after SCO sued IBM, Novell pointed out that it was pretty sure SCO was wrong in claiming to hold copyrights over Unix code. In fact, Novell was pretty sure that it still owned those copyrights. SCO then took Novell to court over the issue -- making that the main arena for SCO's claims. It took plenty of time, but the judge ruled that, indeed, Novell owned the copyrights, basically derailing SCO's entire basis for its lawsuits. At first it appeared as if SCO was just going to give up. It declared bankruptcy and many hoped it would just go away. Unfortunately, it received a lifeline in the form of a $100 million line of credit, allowing it to keep on suing.

As for the Novell case, a judge has finally come down with the final ruling on a fine, and it's basically a slap on the wrist to SCO. Rather than buying Novell's argument that 95% of SCO's licensing revenue actually belongs to Novell, the judge took a much more limited approach saying SCO only owes $2.5 million. It's not peanuts, but it's a lot less than many had hoped. It certainly will allow SCO to keep going (and potentially appeal this ruling) which is why many are labeling this as a mixed bag sort of ruling. Still, as has been pointed out, SCO is the one that kicked this off, suing IBM and then Novell... and the end result is that SCO is paying out $2.5 million. That's probably not what the company's execs expected when they started down this path.

Filed Under: copyright, lawsuits, linux
Companies: novell, sco

SCO Files For Bankruptcy Protection

from the we-will-prevail,-huh? dept

From the beginning of SCO's rather odd strategy of claiming ownership of the intellectual property found in Linux, the company has (often pompously) declared that in the end it will be vindicated and that there was no way anyone could conclude that it wasn't the rightful owner. What was amazing was how the company continued to state the same thing in the face of increasing evidence that the claims could not be supported. Then, last month, a judge ruled that SCO didn't even own some of the copyrights it claimed to. Instead, those were possessed by Novell. Monday the two firms were supposed to be in court to figure out how much SCO now owed Novell, but that's going to take a back seat to the news that SCO has filed for Chapter 11 bankruptcy. The announcement uses the typical "hoping to reorganize" type language, but it seems pretty clear the company (which was already looking somewhat shaky in terms of its financials) would rather not have to pay Novell... or deal with the fact that it may owe quite a bit in the other lawsuits its involved in, which are likely to fall apart without these particular copyrights. It's a nice strategy, really. Claim ownership and sue lots of big companies. Hype up how sure you are that you're going to win. Watch your stock price rise... so you can sell shares and make some money. Then, as the whole house of cards collapses, just declare bankruptcy.

Filed Under: bankruptcy, lawsuits
Companies: ibm, novell, sco

Judge Rules That Novell, Not SCO, Owns Unix Copyrights

from the whoops dept

For years, ever since SCO first sued IBM for infringement found in Linux, SCO has had trouble proving any of its claims. SCO was still quite cocky about the idea that once the case (and the various associated cases) got to court, it would show that SCO had a smoking gun all along. However, even judges involved in the case are skeptical and point out the lack of evidence to support SCO's position. One offshoot case, you may recall, was that soon after the original SCO-IBM case was filed, Novell came out and announced that it still owned the copyrights on Unix, and SCO was incorrect in claiming the rights had been transferred. In fact, Novell pointed out that behind the scenes SCO had been quietly begging Novell to transfer the copyright to them. However, SCO continued its brash legal fight against reality and sued Novell. Late Friday the ruling came down, and once again, SCO was on the losing side. The judge found that Novell still owns the copyrights to Unix, meaning that the meat of SCO's case against IBM may have just disappeared. In retrospect, it's fairly amazing the lengths that SCO and its supporters have gone in trying to tar everyone who questioned their position. Don't expect an apology, though.

Filed Under: linux, unix
Companies: ibm, novell, sco