[Tfug] SCO Group files for bankruptcy

[Jude Nelson]

...which is just another delay tactic--the Novell vs SCO trial scheduled for
Monday will now have to be postponed because bankruptcy protection preempts
court cases.

Regards,
Jude Nelson

On 9/14/07, Felix Tilley <fetilley at earthlink.net> wrote:
>
>
> http://news.yahoo.com/s/ap/20070914/ap_on_hi_te/sco_group_bankruptcy;_ylt=AjJWarToq6gES90xObWBAiWs0NUE
>
> Watch for linewrap.
>
> SCO Group files for bankruptcy
>
> By PAUL FOY, AP Business Writer Fri Sep 14, 6:17 PM ET
>
> SALT LAKE CITY - The SCO Group Inc., licenser of the Unix
> operating system, filed for bankruptcy protection Friday,
> drained by unsuccessfully filing lawsuits claiming its
> software code was misappropriated by developers of the
> open-source Linux operating system.  ADVERTISEMENT
>
> The Lindon, Utah, company said it is seeking protection
> from creditors under Chapter 11 as it continues to license
> and improve Unix for corporate servers.
>
> "We want to assure our customers and partners that they
> can continue to rely on SCO products, support and services
> for their critical business operations," Darl McBride,
> president and chief executive, said in a statement Friday.
>
> McBride has blamed competition from Linux for operating
> losses and the ongoing slide in company revenues. The
> company said its operating loss in the quarter ending April
> 30 was $1.1 million. A year earlier, it lost $3.9 million.
>
> In August, U.S. District Court Dale Kimball ruled that
> Novell Inc., not SCO, owns the copyrights covering the
> Unix operating system. SCO licenses the Unix software for
> corporate servers.
>
> The case could leave SCO with a bigger liability: Kimball
> said SCO may owe Novell software royalties.
>
> "They were going to owe Novell a ton of money that they
> probably didn't have," said Rob Enderle, an industry
> analyst in San Jose, Calif. "They had been taking a major
> hit from legal fees and were burning through cash at a
> high rate. I don't think this is a big surprise."
>
> Kimball's ruling was a relief for IBM Corp., the target
> of one lawsuit by SCO claiming Big Blue dumped Unix code
> in Linux.
>
> Separately, Novell is countersuing SCO for damages in
> a trial that was to begin next week but is now on hold
> because of the bankruptcy filing.
>
> Chapter 11 frees a company from lawsuits by creditors
> while it reorganizes its finances.
>
> McBride didn't immediately return a message relayed Friday
> through a public-relations firm.
>
> SCO said the petition was filed electronically in
> U.S. Bankruptcy Court for Delaware. Copies weren't
> immediately available online.
>
>
> _______________________________________________
> Tucson Free Unix Group - tfug at tfug.org
> Subscription Options:
> http://www.tfug.org/mailman/listinfo/tfug_tfug.org
>