Predicting SCO's Actions Post Bankruptcy 102
Posted
by
kdawson
from the litigious-doesn't-begin-to-cover-it dept.
from the litigious-doesn't-begin-to-cover-it dept.
eldavojohn writes "SCO lost last year and began the bankruptcy filings a long time ago but PJ has some speculative bad news on what they retain through the bankruptcy proceedings. SCO proposes to sell a number of assets to an outfit called UnXis, which PJ characterizes this way: 'It starts to hint that this is more a renaming, taking in some new management who seem to have financial expertise, and SCO keeps skipping along as unXis, with the dangerous litigation spun off safely into a litigation troll.' In their filings SCO says they retain 'their litigation and related claims against International Business Machines Corporation, Novell, Inc., AutoZone Corporation, Red Hat and certain Linux users which are not material customers of UnXis (excluding certain large-scale users of Linux servers) that are claimed to have infringed against UNIX copyrights.' So that's still a possibility they could go after anyone who is a 'certain Linux user.' And what's even worse is that they'll retain a patent for running multiple Java applications on a single Java virtual machine. We may not be out of the SCO litigation woods yet."
Re:Microsoft Corp. today announced.. (Score:5, Informative)
Re:SCO (Score:5, Informative)
That'd be old SCO then, the infamous jerks are new SCO, formerly known as Caldera Linux before they bought old SCO's rights over UNIX and trademarks for their name, hired a complete idiot as CEO and changed their name to SCO while old SCO changed theirs to Tarantella, were later bought by Sun, who were later bought by Oracle.
So yeah, its messy.
Re:So... (Score:5, Informative)
Their latest filing claims they have a single java patent, but other than that, no, this was never about patents. SCO doesn't really have any and certainly didn't claim any when they sued IBM, Novell, Chrysler or anyone else.
They sued IBM over the copyrights to Linux, which they claim they own because they claimed they owned the Unix copyrights. Novell said that they never sold the copyrights to SCO, so SCO sued Novell for saying that.
Since SCO was suing IBM for copyright infringement, that whole thing was put on hold while SCO and Novell fought out who really owned the copyrights.
At trial, all of SCO's claims were tossed out in summary judgement and the like. The court agreed with Novell that SCO had no copyrights to Unix (it never even got to the question of whether or not Linux violates Unix copyrights and their mounds of secret evidence has never been presented anywhere). All that was left were the counterclaims that Novell had against SCO. Among those was the claim that all the money SCO had collected from Sun and Microsoft should rightfully belong to Novell. The judge agreed that SCO was guilty of conversion, which means that it was never SCO's money to begin with.
That part is important: it's not a debt owed to Novell, it was always Novell's money. SCO sold something to Microsoft and Sun that it didn't own. SCO had a right to collect royalties, but it was contractually obligated to give that money to Novell and be paid a percentage back. The court agreed and the only question was "Wow much of what SCO sold was Unix and how much was anything else?"
The only thing left for trial was to figure out just how much money SCO stole from Novell. On the eve of that trial, SCO filed for bankruptcy. Under the law, SCO has a certain period of time where they get to be the first to propose a way out of bankruptcy. They missed every deadline. When the courts had all agreed that their unique opportunity to file a plan had expired, other parties began filing motions.
Among those filing plans were the U.S. Trustee appointed to oversee the bankruptcy. He felt that SCO had no chance to move forward as an ongoing concern and moved to convert from Chapter 11 (reorganization) to Chapter 7 (liquidation). Novell and IBM agreed.
SCO's last move wasn't even the eve before this time. They were late to court, and appeared at the last minute (an hour beyond the last minute, actually) with a so-called "plan" to sell the company. The plan basically amounts to selling all the assets to another company and leaving a shell behind to fight Novell, IBM (and Chrylser and other former SCO-unix customers on the basis that Linux violates the copyrights of Unix). Selling the "business" means, essentially, moving all of "SCO's" money to another company and leaving nothing behind for Novell to collect from at final judgment.
SCO, as I said, showed up late and with only one copy of the agreement for the Trustee, Novell and IBM to see. They objected and asked the judge to move forward with the Chapter 7 conversion motions. They pointed out that SCO was past all legal deadlines. The judge said, and I'm not kidding or exaggerating, "What happens if I don't meet that deadline? Will they take me out back and shoot me?" Thus defying the statues, he gave SCO one more chance and agreed that they will meet in the required 15 days to hear about SCO's plans. The judge ruled that July 16th is 15 days from June 15th...
SCO is really holding out for an appeal. But they'll never turn everything back. And without the copyrights (and probably even with them), they don't have much of a case against IBM (and IBM, like Novell, has counterclaims against SCO). Red Hat is also suing SCO, also on hold for Novell/bankruptcy.
This is just a brief overview and I've skimmed over a lot. But no, patents aren't an issue here. If it were, they'd be in Texas, not Utah (or Delaware now for the bankruptcy).
On the patent, (Score:3, Informative)
JX, a java operating system that does what their patent covers, was in development long before [jxos.org] they filed that patent application.