I Don't Believe in Imaginary Property writes "With SCO in Chapter 11 bankruptcy and there being little to read other than status reports and the boring financial details of how the company is wasting its last few dollars, one could be excused for thinking the SCO lawsuits had lost their zip. But things just got a bit more interesting. Jonathan Lee Riches has asked the court to take over. Yes, the man also known as inmate #40948-018 is now bringing his legal experience to the table, having previously filed pro se lawsuits against such entities as Michael Vick, Michael Jordan, Mickey Mantle, the Lincoln Memorial, the Thirteen Tribes of Israel, 'Various Buddhist Monks,' Mein Kampf, Denny's, George W. Bush, the Soviet Gulag Archipelago, Bellevue Hospital, Iran's Evin Prison, Auschwitz, and Plato. In his hand-written pro se motion (PDF), he asks to intervene as Plaintiff pursuant to FRCP 24(a)(2). As best anyone can read the motion, it appears that he offered Novell some 'royalty payments' and they refused them, so he wants to protect his UnixWare rights. He also claims to have proof of SCO's claims, but he wants take over part of the case via FRCP 24 because SCO isn't competent, and allegedly he could do a better job. To be fair, between him and Darl, it's something of a toss-up."

eldavojohn writes "Here's a short update on the Novell Vs. SCO case we've been following. Our good friend Darl McBride made some interesting comments in court yesterday. He stated (under oath): 'Many Linux contributors were originally UNIX developers... We have evidence System V is in Linux... When you go to the bookstore and look in the UNIX section, there's books on "How to Program UNIX" but when you go to the Linux section and look for "How to Program Linux" you're not gonna find it, because it doesn't exist. Linux is a copy of UNIX, there is no difference [between them]." This flies directly in the face of what SCO found in extensive investigations in 2002 and contradicts what SCO Senior Vice President Chris Sontag had just finished testifying earlier that day (testimony that McBride did not hear)."

UnknowingFool writes "Everyone's favorite CEO Darl McBride took the stand on Wednesday April 30 in Novell v. SCO. Chris Brown has posted his account on Groklaw of the 2nd day of trial. The first day's account can be found here. To refresh your memory in this ongoing case, Judge Kimball has already ruled that Novell owns the copyrights to Unix and has practically dismissed all of SCO's claims. This portion of the trial is about Novell's counterclaims that SCO never paid them the money from the Sun and MS deals. What is to be determined in this trial is how much of the money from the deals were for Unix licensing (SVRx) and how much were for SCO's server technology (Unixware)." (Read on for the rest, below.)

I Don't Believe in Imaginary Property writes "The day many have been waiting for has finally arrived, the day SCO gets torn apart in court by Novell. Each side gets 10 hours, and Novell managed to get them to agree to a stipulation (PDF) that should make things go a lot faster. With any luck, we will soon have an official ruling that SCO does not own much of anything and then we just have to wait for SCO to exhaust its appeals. This would've been over a long time ago, but SCO filed for bankruptcy on the eve of trial, stopping the clock. One can only wonder what trick they will try to pull this time."

I Don't Believe in Imaginary Property writes "Unsurprisingly, all of SCO's creditors have objected to the plan to reimburse York for the failed 'emergency' deal. Novell's tiny seven page objection (PDF) is hilarious and very readable. They don't hold back at all, saying that 'all that happened is that the Debtors spent money needlessly on a proceeding that was, to all intents and purposes, stillborn had it not been for the stubbornness of the Debtors' management and the avarice of York,' and that it was 'another really bad deal they have chased in ceaseless pursuit of their dreams of a litigation bonanza.' They top it off by concluding with the line, 'for the reasons explained above, the Court should deny the Motion as the Debtors' worst and least supported idea yet in these cases.' One can only wonder how SCO will respond to this."

I Don't Believe in Imaginary Property writes "It seems that SCO is never without a trick up its sleeve. In the new '$100 million' reorganization plan, $5 million of which is cash and $95 million credit, one of the creditors is protesting because SCO is hiding the Definitive Documents until there's no time to object. In their own words, 'The debtors are proposing to file the Disclosure Statement 33 days before the hearing, in compliance with the requirement that it be filed at least 25 days before the hearing (F. R. Bankr. P. 3017). However, it is clear that this Disclosure Statement will be inadequate for evaluating the Plan, because it will not include any of the Definitive Documents. The Debtors are proposing to file the Definitive Documents separately, and to do so a mere five business days before the hearing, which is zero days before objections are due.'"

JoGiles writes "Linux-watch is reporting that while The SCO Group may go on to pursue its plans with a $100 million buyout, it will do so without its longtime CEO Darl McBride. Buried in the proposed MOU (Memorandum of Understanding) between Unix vendor and Linux litigator SCO and SNCP (Stephen Norris & Co. Capital Partners) is the note that "upon the effective date of the Proposed Plan of Reorganization, the existing CEO of the Company, Darl McBride, will resign immediately.""

AmIAnAi writes "Just when you thought it was all over, the SCO story takes a new twist. SCO has received $100 million financing from Stephen Norris Capital Partners to get them out of Chapter 11 and go private 'The move gives Stephen Norris, whose namesake founder was a co-founder of private equity giant The Carlyle Group, a controlling interest in SCO, which now has a platform to continue its court battle with Novell Inc. over royalties from the Unix server operating system, SCO's main business ... According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.'"

dacarr writes "SCO has filed their 10K with the SEC — and according to this, their own assessment of the company's outlook is pretty grim. As usual, PJ of Groklaw has a good synopsis of the filing highlights. In short, it boils down to one thing: unless there's a miracle, even SCO doesn't think they're going to come out of this. 'As a result of the Chapter 11 filings, realization of assets and liquidation of liabilities are subject to uncertainty. While operating as debtors-in-possession under the protection of Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated financial statements, in the ordinary course of business, or, if outside the ordinary course of business, subject to Bankruptcy Court approval. In addition, under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, post-petition liabilities and prepetition liabilities must be satisfied in full before stockholders are entitled to receive any distribution or retain any property under a plan of reorganization.'"

BobB-nw writes with word that this April will be the trial date for SCO's financial reckoning. Novell will discover via the courts how much (if anything) SCO is going to be compelled to pay in compensation for the lengthy trial over Unix code rights. The NetworkWorld piece also offers an overview of the case. "In September, The Wall Street Journal described the ruling against SCO as 'a boon to the open source software movement.' But experts say Unix is filled with technology that carries copyrights tied to many different companies and that it would be a nightmare to open source the Unix code collectively. Instead, Novell would have to pick and choose pieces to open-source, a process that could begin once the trial has ended."

An anonymous reader writes "This somewhat amusing press release of sorts tells us one of those things we've all been waiting a while for. SCO(X) has announced that 'it received a Nasdaq Staff Determination letter on December 21, 2007 indicating that as a result of having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Listing Qualifications Panel has determined to delist the company's securities from the Nasdaq Stock Market and will suspend trading of the securities effective at the open of business on Thursday, December 27, 2007.' PJ at Groklaw has surmised that with effectively zero cash resources left, Novell doesn't stand to get much more than SCO's furniture, if even that. Ding dong, is the wicked witch finally dead yet?"

An anonymous reader writes "According to Fortune's legal blogger Roger Parloff, "once in awhile a judicial ruling comes down that's so wrong at such a basic level that you're just left scratching your head". He claims that Judge Kimball's "102-page ruling (about SCO) was greeted with widespread rejoicing and I-told-you-so's", but "the problem is not that Judge Kimball's view of the facts is wrong". Was the ruling unfair?"

A number of readers suggest we check out Groklaw, where PJ is reporting that a bankruptcy judge has granted Novell's request to lift the stay so that its trial against SCO can proceed in Utah. The judge concluded that Judge Kimball is the best one to decide how much SCO owes Novell, and that SCO cannot make any "reorganization" plans — including any "fire sale" of assets — until it knows this figure.

An anonymous reader writes "The SCO Group's current fate can be neatly summarized by the title of Pamela Jones' very first article on the case, back in May 2003 — 'SCO Falls Downstairs, Hitting its Head on Every Step.' In the intervening years PJ and Groklaw can be credited with unearthing and exposing many of the flaws in SCO's case, most notably, obtaining and publishing the 1994 settlement in the USL vs BSDi case. An article at the ITPro site interviews PJ about SCO, the impact of Groklaw and future of free software and the law."

StevisF sends us to the Salt Lake Tribune for this news: "SCO Group Inc. says it is planning to lay off 16 of its 123 employees and has asked a federal bankruptcy court to keep their identities secret because it fears they could be harassed."

gosherm writes with word that, now that the dust is beginning to settle on the long-running SCO case, Novell wants to get paid. Now. They're requesting that the customary stay on SCO's finances (as a result of their bankruptcy) be lifted so that Novell can begin recouping some of its losses from the protracted legal battle. "'We need to adjudicate if this is money owed to Novell or if it is Novell's property,' said Bruce Lowry, spokesman for Novell. That could determine how quickly Novell can recover those funds. And time is of the essence since there's a possibility SCO 'may run low or even completely out of cash during the process of trying to reorganize,' Novell said in court documents filed Thursday. Novell is also trying to protect royalties SCO collects from Unix and Unixware software licensees and remits annually to the software developer. SCO is required to continue to remit between $500,000 and $800,000 annually to Novell -- the next payment is due Nov. 14. SCO remitted $696,413 to Novell between the third quarter of 2006 and the second quarter of this year."

certain death writes "Daniel Lyons of Forbes Magazine has admitted to being snowed by SCO, regarding their lawsuit over Linux and SCO code. He specifically mentions Groklaw's role in the case, and regrets his early articles giving the company the benefit of the doubt. 'I still thought it would be foolish to predict how this lawsuit (or any lawsuit) would play out. I even wrote an article called "Revenge of the Nerds," which poked fun at the pack of amateur sleuths who were following the case on a Web site called Groklaw and who claimed to know for sure that SCO was going to lose. Turns out those amateur sleuths were right. Now some of them are writing to me asking how I'd like my crow cooked, and where I'd like it delivered. Others in that highly partisan crowd have suggested that I wanted SCO to win, and even that I was paid off by SCO or Microsoft. Of course that's not true. I've told these folks it's not true. Hasn't stopped them. The truth, as is often the case, is far less exciting than the conspiracy theorists would like to believe. It is simply this: I got it wrong. The nerds got it right.'"

symbolset writes "The Nasdaq Staff has decided to delist SCO at open of business on September 27, 2007 under their discretionary authority and as a result of SCO filing for Chapter 11 bankruptcy protection. SCO can get a hearing but "There can be no assurance that the panel will grant the Company's request for continued listing.""

Stony Stevenson writes "SCO Group CEO Darl McBride is now claiming that competition from Linux was behind the company's filing of Chapter 11 bankruptcy. 'In a court filing in support of SCO's bankruptcy petition, McBride noted that SCO's sales of Unix-based products "have been declining over the past several years." The slump, McBride said, "has been primarily attributable to significant competition from alternative operating systems, including Linux." McBride listed IBM, Red Hat, Microsoft, and Sun Microsystems as distributors of Linux or other software that is "aggressively taking market share away from Unix.""

Groklaw Reader writes "Apparently, SCO's lawyers were working overtime last Sunday, because they wrote a quick plea to the bankruptcy court for permission to hire accounting temps. Why? Approximately half of SCO's finance department has resigned or been fired. Two who resigned had over ten years of experience each. One can only assume that they know what's about to happen to SCO."