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20 June 2008, 10:09

SCO vs. Linux: extension for SCO

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SCO Group, which filed for Chapter 11 bankruptcy, has been granted another extension by the responsible bankruptcy court. The group will only have to present its re-structuring plans once a court decision has been reached about how much SCO needs to pay Novell in the dispute over the copyright for Unix.

As reported by Groklaw legal observers, the main question at the bankruptcy court hearing was when SCO will need to present concrete re-structuring plans. SCO president Darl McBride argued that the plans depend on the decision by Judge Kimball, who decided that SCO is in breach of copyrights held by Novell, last year. In the latest hearing of this complaint, Novell claimed outstanding licence fees of $19.9 million. During the hearing, Darl McBride said if the judge confirms this amount, SCO could quickly present a plan about how the company can stay in business. He explained that SCO had anticipated around $40 million of outstanding licence fees, which the company wouldn't be able to pay. McBride said that with $20 million outstanding, Novell could potentially be paid in instalments and his company could be restructured, .

In an interview with Groklaw after the hearing, the president of SCO explained that the company will try to spin off its traditional Unix assets under a new company. SCO itself will continue to litigate for its intellectual property which is allegedly being used illegally in form of concepts and methods in various Linux distributions. SCO has so far not officially confirmed Darl McBride's statements.

(Detlef Borchers)


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