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SCO wins shock Unix verdict

Gavel

By Stuart Turton

Posted on 26 Aug 2009 at 10:07

SCO will have its day in court after an appeals court found that Novell does not own the rights to Unix after all.

In a 54-page ruling the appeals court reversed the 2007 summary judgement of Judge Dale Kimball, which claimed that Novell was the owner of Unix and UnixWare copyrights. The matter will now be decided in a full trial.

SCO professed itself satisfied with the result: "We are pleased that the 10th Circuit Court of Appeals has reversed material aspects of the district court's 2007 summary judgement against SCO. Importantly, the court remanded the case for trial, and we look forward to the opportunity to present the case to a jury," SCO says in a statement.

Novell intends to vigorously defend the case and the interests of its Linux customers and the greater open-source community

The ruling also brought strong words from Novell: "Novell intends to vigorously defend the case and the interests of its Linux customers and the greater open-source community. We remain confident in the ultimate outcome of the dispute."

The SCO saga has been running since 2003 when the company launched a lawsuit against IBM, claiming Big Blue infringed on its intellectual property by including code from Unix in Linux.

It emerged that, having bought the Unix trademarks from Novell a decade before, SCO assumed it also owned the rights to enter into open-source licence deals with companies such as IBM and Sun, as well as other end-user firms.

However, Judge Kimball ruled that Novell, rather than SCO, owned the Unix copyrights. Novell was subsequently awarded $2.5 million in license fees collected by SCO, plunging the company into Chapter 11 Bankruptcy.

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User comments

It's complex but let's get it right

All the appeal court has done is to reverse a summary judgement and remand the issue for trial in front of a jury. So SCO hasn't won, it just hasn't lost (yet). The $2.5m licence fee has been confirmed, so this doesn't help SCO's chapter 11 situation.

The critical issue now is that as the bankruptcy court has appointed a trustee, it will be the trustee, not the board of SCO who will decide how to proceed.
On another point, SCO always knew that Novell continued to "own" the relationships with SUN, IBM &c. What it thought it has was the right to sue Linux users for misuse of Unix code allegedly included in Linux.
In effect the clock has been reset by three years but there are now a number of issues to be decided on.
1) Three years ago SCO had enough money to pursue it's claims, now it's in bankruptcy.
2) A trustee will be making the decisions, unless a third party manages to purchase the rights to the lawsuit from the bankrupt estate.
3) SCO officers have given evidence in the bankruptcy hearings which will almost certainly prejudice their claims in a full trial of the original lawsuit.
4) The original judge has recused himself (withdrawn), so a new judge will probably need 12-18 months just to read the preliminary evidence and arguments before a trail can be scheduled.

The fat lady has gone home in a frump and, if someone does resurrect the litigation it may well be another 3-5 years (allowing for appeals) before anything is decided.

By milliganp on 26 Aug 2009

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