Laws Of .com

SCO Group, Thorn to Linux, Seeks Bankruptcy Protection

SCO Group, formerly SCO, has filed for voluntary bankruptcy protection. SCO Group had claimed in various suits that it was the owner of copyright in UNIX operating system code and that significant portions of that code were improperly included in the widely distributed Linux operating system. SCO claimed billions from IBM and others, demanding that Linux users pay it royalties. Some, including Microsoft, signed up with SCO. However, Novell denied SCO was the copyright owner and claimed it owned the UNIX code. SCO sued its fellow Utah company Novell for slander of title. An August 2007 pre-trial ruling of the Utah District Court in the SCO v. Novell suit sided with Novell’s ownership claim and dealt a severe blow to SCO’s Linux infringement and royalty claims.

The court’s ruling means SCO Group now owes royalty payments to Novell.

For additional information, visit:

http://www.nytimes.com/2007/09/15/technology/15sco.html

For a copy of the Order, visit:

http://www.sco.com/scoip/lawsuits/novell/novell_377.pdf