For those who don't know of this lawsuit:
The SCO Group started by suing IBM claiming that IBM had added "millions of lines" of code owned by the SCO Group to Linux. When Novell used its "right to waive" such lawsuits
1 SCO started the lawsuit against Novell. There are other associated lawsuits (see below). SCO already lost one vs Daimler Chrysler.
Link to full articleShort form: Key elements of the cases are gutted.
Slightly longer form: (read the full article for the details and corrections of any misinterpretations I may have made).
SCO vs Novell - Novell owns the Unix copyrights
- SCOs slander of title claims are therefore dismissed
- SCOs unfair competition claims are therefore dismissed
- Novell has the right to tell SCO to drop Unix related lawsuits - as they told SCO to drop the IBM case
- The SUN and Microsoft Licenses are
at least partially covered by the Novell deal and SCO (about $25 million). Therefore at least part of the money is owed to Novell. The part that is covered SCO has to give 100% of the revenue to Novell who then gives 5% back. They have to go to trial to determine what percentage that is and SCO likely does not have the money as they are only a couple of months from bankruptcy already. Because SCO failed to do so (pay Novell), it breached its fiduciary duty to Novell under the APA and is liable for conversion. As I understand it the "conversion" is a major crime and the executives may well be directly liable, though I could be wrong on the liability element.
SCO vs IBM - The Novell waiver of the Unix related elements guts much of the SCO side of the case.
- IBM can continue its counter claims.
- SCO's "revocation" of IBMs irrevocable license is obviously null and void as it is covered by the waiver.
The price of the SCOX stock should dive on Monday. I've been watching this for a long time (the 5th year has begun) and have been awaiting this result. Its not all over as there are some elements to go to trial but mostly that involves the counterclaims against the SCO group and related cases that are on hold pending the outcome of these two trials (SCO vs Autozone and Redhat vs SCO). The writing is clearly on the wall in flaming letters 10 feet high - SCO and its claims are toast.
1 A right they had from the contract where they sold the Unix business to the Santa Cruz Operation who later sold it to Caldera who renamed themselves the SCO Group.