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.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of July 17, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.