EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS


Is Novell the New SCO?

Posted in Antitrust, Apple, Deals, Intellectual Monopoly, Microsoft, Novell, SCO, Servers, UNIX, Windows at 12:04 pm by Shane Coyle

In a posting on Groklaw regarding SCO v. Novell, Novell is demanding the lions’ share of the Microsoft and SUN license revenues, since it appears that SCO was selling something that didn’t belong to them. One notable statement in the filing is this statement by Novell:

For SCO, bankruptcy is inevitable; it characterizes its assets as merely those "remaining" and does not rebut Novell’s arguments that its bankruptcy is imminent.

The question has already been asked, but will Novell acquire SCO’s assets? Tom Yager believes so, in a posting where he theorizes that the Microvell cartel could be colluding against Apple (and everyone else, for that matter) in the x86 server market.

Microsoft bought its way out of Novell v Microsoft, I think, by pretty much ceding majority share of the x86 enterprise server market to Novell. The deal, which Microsoft announced as a partnership, is a real ankle-grabber: a) Microsoft will give 70,000 licenses of SuSE Linux Enterprise Server to Windows server customers, b) Microsoft will let Novell ride along on sales calls, c) Microsoft waives its right to sue Novell over intellectual property, and d) well, the D is not something that Microsoft is handing over. But it’s an awfully big D.

Novell is going to take back ownership of System V UNIX. It supposedly transferred this to SCO, but a Federal Judge found that the contracts had more holes than paper. Novell has leave to contest the agreements, and if SCO goes belly-up while the matter is in debate, Novell’s there to snatch up a very valuable property.

Novell’s management is almost entirely new appointees, with only Hovsepian and LaSala with more than 18 months tenure. Recent financial moves by the company seem to have a familiar feeling, is Novell the new SCO?

Update (Roy):

There are two new items that fit rather well into this discussion. In the first, Dana deal with Novell’s ‘inheritance’ of SCO’s issues.

If this is the end it seems to leave Novell in a curious position. In its deal with Microsoft, Novell appears to have granted Microsoft the power to claim that Microsoft holds the same kinds of rights to Linux that SCO claimed, and fourth quarter downloads indicate that many customers are taking those claims seriously.

You can now brace yourself for what could prove to be SCO’s ‘judgment day’.

In conjunction with the financial results press release, the company will also host a conference call that same day at 5:00 p.m. (Eastern Time) to discuss the Company’s results.

Update #2 (Roy): SCO Responds to Novell FUD

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one


  1. Rich Wermske said,

    January 10, 2007 at 11:00 pm


    Your data is in error and unfortunately it calls your thesis into question. I have been commenting on the Novell board’s activities recently at http://www.wermske.com

    Thomas G. Plaskett,
    Director since 2002, Non-Executive Chairman since June 2006, age 63, also a director of Alcon, Inc. and RadioShack Corporation

    Albert Aiello Jr.,
    Director since 2003, age 63, currently a Managing Director of Albert Aiello & Associates

    Fred Corrado,
    Director since 2002, age 66, also a director of two non-profit organizations, Covenant House and the New Jersey Performing Arts Center.

    Richard Crandall,
    Director since 2003, age 63, currently a Managing Director of Arbor Partners, also serves as the chairman of the Enterprise Software Roundtable, also a director of Diebold, Inc., and the Dreman/Claymore Dividend & Income Fund. Chairman of another organization?

    Ronald W. Hovsepian,
    Director since 2006, age 45, serves as President and Chief Executive Officer of Novell, Inc., also is non-executive Chairman of the Board of Directors of the Ann Taylor Corporation.

    Claudine B. Malone,
    Director since 2003, age 70, currently President and Chief Executive Officer of Financial and Management Consulting Inc., also serves on the boards of Hasbro, Inc., and Aviva Life Insurance Company, and Science Applications International Corp., and LaFarge North America.

    Richard L. Nolan,
    Director since 1998, age 66, currently an active professor for several universities, also a director of The Great Atlantic & Pacific Tea Company.

    John W. Poduska, Sr., Ph.D.,
    Director since 2001, age 69, also a director of Anadarko Petroleum Corporation and Safeguard Scientifics, Inc.

    James D. Robinson III,
    Director since 2001, age 71, currently General Partner of RRE Ventures and currently Chairman of RRE Investors, LLC, also is a director and the non-executive Chairman of Bristol-Myers Squibb Company, also serves as a director of The Coca-Cola Company and First Data Corporation, also a director of several private IT Companies held as investments in RRE Ventures.

    Kathy Brittain White,
    Director since 2003, age 57, currently President and Founder of Rural Sourcing, Inc., also serves as President of the Horizon Institute of Technology, also is a director of Mattel, Inc.

    Now, I will be the last person to defend this lack luster board and I have called for the ouster of several of its members. But I would hardly characterize the board as junior or comprised of “almost entirely new appointees.”

    The concept of a Boycott is simply absurd. This isn’t the middle school play yard. It’s business. The critical mass of decision makers necessary to create any material impact on Novell’s financial statements isn’t going to be swayed by passionate screams that the “sky is falling” from idealistic opensource misanthropes.

    I appreciate Tom Yager’s razor wit and the point he is making regarding System V Unix has to be digested as literature and not a legal reference. You are reading far too much into the letter of his words.

    Finally, the logic is non-existent. Novell’s behavior has not been properly established in any context that can be affiliated with SCO’s or Microsoft’s behavior. Despite all the desires to the contrary, Novell is not an innocent youth and this is certainly not their first time at the rodeo. Marketing FUD, by its very nature, is a strategy that lacks substance but sells well. To even imply that Novell is in the Minor Leagues plying *nix FUD with a backwater team like SCO is naive and obtuse. Why market FUD when the facts are so much more effective?

    Vista and Longhorn contain System V code. Follow the yellow brick road, Dorthy.

    Rich Wermske

  2. shane said,

    January 10, 2007 at 11:08 pm


    My apology, its "management" that is listed on the google page, not the "board" that is an error. Thank you.

    Everything else, including Novell FUDding against *nix (albeit in a more sophisticated and profitable manner than SCO), and Boycotting a company in order to show its management and investors that its actions are unacceptable, I stand by.

  3. Rich Wermske said,

    January 10, 2007 at 11:21 pm


    Well stated. I respect your conviction and position even as I disagree with it. Ultimately, I suppose we have common cause, yet choose to carry different weapons to the battlefield.

    Oo-Rah, Shane! :-) If nothing else, it will be an interesting drama. Be well.

What Else is New

  1. Links 24/10/2016: Linux 4.9 RC2

    Links for the day

  2. Battistelli Plans to Expand the Social [sic] 'Study' (Then 'Conference') Propaganda Until Next Month, Under the 'Workshop' Umbrella

    Milking his shameless propaganda (paid-for 'studies'), Battistelli wants to rewrite the record by all means possible, then pretend that EPO staff participates in it

  3. EPO and EUIPO Join Hands to Release Propaganda (for European Media to Parrot) Some Time Tomorrow

    EPO and EUIPO in collaboration for the promotion of the notion that they are both necessary (and reinforced speculations about growing overlap between them)

  4. UPC Preparatory Committee Puts the Brakes on UPC Amid Brexit and Growing Uncertainty

    The Unified Patent Court (UPC) preparatory committee recognises that the UPC isn't going anywhere (any time soon) and false job advertisements -- or advertisements for jobs that will never exist -- are withdrawn

  5. Updates Regarding EPO and BoAC: Unrest and Injustice Carry on

    Some of the latest information which is publicly and privately available to us, in particular regarding the case of a suspended judge which represents unprecedented erosion of the appeal boards' independence (and hence lack of justice in the Organisation)

  6. EPO and the “Iberian Connection”: Patricia García-Escudero Márquez - Battistelli's Pet Chinchilla on the Boards of Appeal Committee?

    Why the Boards of Appeal Committee has begun showing prominent signs that it is anything but independent and capable of standing up to Battistelli (or his circle at the Office, which includes the “Iberian Connection")

  7. Links 23/10/2016: Alcatel's New Android Smartphones, Another Honorary Doctorate for Stallman

    Links for the day

  8. Open Letter Exposing the Farce Which Was Battistelli's 'Social Conference' Coinciding With Further (New) Attacks on EPO Staff Representatives

    A detailed letter reveals legitimate concerns expressed by staff representatives at the EPO ahead of the so-called Social Conference, in which we have highlighted severe factual flaws

  9. Translation of Latest Rant From French MP Philip Cordery About Benoît Battistelli's Abuses at the EPO

    Philip Cordery crosses horns with Benoît Battistelli, who has become a source of embarrassment for France with his autocratic tendencies and misguided policies that rapidly ruin the European Patent Office (EPO)

  10. Battistelli-Commissioned PwC ‘Study’: Leaked Document Shows PwC's Dishonesty and Misrepresentation of EPO Staff

    An in-depth analysis (but not comprehensive, just preliminary) of the so-called 'study' from PwC, which basically did what it was paid for (pay to say)

  11. Links 22/10/2016: Deus Ex for GNU/Linux, Global DDoS (DNS)

    Links for the day

  12. Battistelli-Commissioned PwC ‘Study’: Survey Comparison Shows Serious Deterioration and Efforts by PwC to Disguise the Truth

    The latest output from PwC turns out to be even worse than initially thought, indicating that not only did it find a degradation in the EPO but also attempted to hide/obscure it

  13. EPO Teaser - The "Iberian Connection" - Some Photos of García-Escudero and His Royal/Government Connections

    A look at the undeniably close connections between Mr. García-Escudero and the most powerful people in Spain

  14. Disruption to Site's Service

    A technical note about why Techrights has not been publishing many articles recently

  15. Links 21/10/2016: MPV 0.21, Mad Max for GNU/Linux

    Links for the day

  16. EPO Caricature: Battistelli's High Five

    Another cartoon about the sad state of the EPO

  17. Battistelli Ruins Not Only the EPO But Also the Whole of Europe By Ushering in Software Patents That Patent Trolls Love So Much

    Battistelli's bad leadership at the EPO threatens to bring to Europe all the ills and menaces of the patent system in the United States

  18. EPO Spokesman Lies to IP Watch in Order to Save Face and Save the King (Battistelli)

    Rewriting history (revisionism) regarding Battistelli and what was demanded amidst abusive behaviour from him

  19. Unitary Patent (UPC) is Dead, But 'Managing IP' and Selfish Patent Law Firms Still Try to Resurrect It

    The latest attempts to shore up the Unitary (or Unified) Patent Court and who's behind it other than the usual suspects

  20. Links 20/10/2016: Linux 4.10 Preview, ONF and ON.Labs to Merge

    Links for the day

  21. Battistelli-Commissioned PwC 'Study': The Raw Outcome Shows Distortion of the Facts at the EPO's Notorious 'Social Conference'

    Results of the Staff Survey carried out by PwC, in order to provide some propaganda for Battistelli's expensive Social Conference

  22. Addendum: EPO's Alberto Casado Cerviño, WIPO's Francis Gurry, and EUIPO's Archambeau

    Photos taken as part of an IP event which took place in Riga (Latvia) in March 2015

  23. Worrisome Connections Between EPO VP2 Alberto Casado Cerviño and Patricia García-Escudero Márquez

    Exploring the potential conflicts of interests implicating the EPO's Boards of Appeal Committee

  24. Site's Infrastructure Under Attack and Upgrades Ahead of Major New Publications

    Protections for the Web site have been improved and capacity increased in order to avoid or at least prepare for another week of abusive/spam traffic

  25. Team Battistelli's Conspiracy Theory: SUEPO is Behind Everything, EPO Management is Trying to Tell the Media

    Attempts to blame SUEPO, the staff union of the EPO, even though SUEPO has nothing to do with articles that are critical of the EPO while many thousands of EPO employees are disgruntled

  26. Links 19/10/2016: Canonical Livepatch Service, Plasma Plans

    Links for the day

  27. The 'Sarah Sharps' of Microsoft: Not the Kind of Scandal the Media Cares Enough to Write About

    Another example of the large (industrial) scale of sexual discrimination at Microsoft -- a company that tries to advertise itself as diverse or tolerant and stigmatise Free/Open Source software (FOSS) as intolerant and/or not diverse

  28. EPO Caricature: EQE Questions

    The latest EPO cartoon, this time about European qualifying examination (EQE)

  29. The Long History or Seeds of Control by Fear and Punishment at the EPO

    The latest hogwash from Team Battistelli (Pinocchio), the latest instance of software patents promotion by EPO Principal Director, and an old (decade-old) nugget of information from the Forum for Principal Directors

  30. Subject of the European Patent Office's Abuses Raised in European Parliament by Ulrike Müller (ALDE)

    A local copy of a bunch of questions asked less than a month ago by Ulrike Müller at the European Parliament, regarding the unacceptable state of affairs at the European Patent Office (EPO)


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time


Recent Posts