Judge Says SCO, Novell Trial Can Proceed - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Software // Enterprise Applications
05:15 PM

Judge Says SCO, Novell Trial Can Proceed

The trial was originally scheduled to begin in September in Utah federal court -- but was postponed pending the outcome of SCO's bankruptcy petition.

A judge overseeing The SCO Group's bankruptcy proceedings has ruled that a trial to determine how much the company owes to Novell for improperly selling Novell's Unix software may proceed prior to the completion of SCO's Chapter 11 hearings.

Acting on a request from Novell, District of Delaware bankruptcy court judge Kevin Gross on Tuesday ruled that the trial may proceed.

The trial was originally scheduled to begin in September in Utah federal court -- but was postponed pending the outcome of SCO's bankruptcy petition. In ruling, Gross effectively agreed with Novell's contention that further delaying the trial could harm its interests.

SCO recently asked the bankruptcy court for permission to sell off certain Unix assets to York Capital Management, a private investment group, but withdrew the request after Novell and IBM told the court that SCO's ownership of the assets is questionable. IBM called SCO's description of the assets it has agreed to sell to York "impenetrably vague." IBM also contended that it holds copyrights in some of SCO's Unix-based products and that SCO, therefore, does not have the right to sell them.

Following a long running legal dispute between the two companies, a Utah federal court judge in August ruled that Novell, and not SCO, owns the copyrights to the Unix operating system. As a result, the judge further ruled that SCO must remit to Novell revenues it earned from selling Unix licenses through a program known as SCOSource.

The total could exceed $25 million -- more than the combined worth of SCO's current assets. SCO filed for bankruptcy shortly after the August ruling.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Flash Poll