Bonum Certa Men Certa

Novell Legal News: SCO and MoFo

Animal and Novell banner



Summary: This week's bits of analysis and news about Novell's time in court, including a win in California

IN THE PREVIOUS TWO posts [1, 2] about the SCO case we showed that SCO has no reasonable case and that it keeps pressuring SUSE nonetheless. Groklaw has recited some old facts in order for SCO's lawyers to digest them and give up the case.

LamLaw has written some more about SCO's opposition to SUSE's motion and Groklaw used Christmas Eve and Christmas Day to catch up:

i. SUSE's Reply, Cahn's Objection to Motion to Compel, and MORs, MORs, MORs

Lots of bankruptcy filings, including a reply by SUSE in support of its motion for relief from the automatic stay and Chapter 11 Trustee Edward Cahn has filed an Objection to Al Petrofsky's motion to compel him to comply with reporting requirements. And Ocean Park Advisors has filed an Amended Exhibit A. But that isn't the big news. The big news is that SCO has filed its Monthly Operating Reports, or MORs, for July through September, 2009. But interestingly, they are filed with a disclaimer that they are filed "consistent with the format and allocations of liabilities as previously adopted by the Debtors," because Mr. Cahn and his financial advisors simply have not yet had time to "review all of the historical information previously reported by the Debtors", so Cahn reserves the right to amend them once he has done a more thorough review.

"Historically," the disclaimer continues, "the Company may not have distinguished between direct liabilities of debtor and non-debtor companies." That would be the foreign subsidiaries, I expect, like Japan and Germany. "The Trustee with its financial advisors is conducting a thorough analysis of the intercompany arrangement among the debtors and the non-debtor subsidiaries and reserves the right to modify these MORs upon completion of its review." It cautions the reader not to rely on the information, as they are filing just to fulfill reporting requirements. I would take it that SCO may have more in the way of assets than is reported here, then. September says $1,287,030. And we will have to wait for the real MORs.


ii. SUSE's Reply in Support of Motion to Lift Stay, as text

Here, as promised, is the SUSE Reply [PDF] about lifting the bankruptcy stay, more properly titled SUSE's Reply in Support of its Motion for Relief from the Automatic Stay to Complete International Arbitration. This document is in response to SCO Chapter 11 Trustee Edward Cahn's Objection to SUSE's motion, and they do not hold back. Most interestingly, they highlight the GPL and what it means for SCO's copyright claims.


Groklaw also carried on showing SCO lawyers that their case is dead to begin with. Latest articles on the subject are:

i. Answering SCO Bit by Bit - Binutils in UnixWare and OpenServer Too

I thought you'd find the slides from a talk given at SCOforum 2004 of interest, because they show that SCO also distributed, under the GPL, binutils in UnixWare and OpenServer. The talk was titled, "Open Source Components in SCO OpenServer and SCO UnixWare", and the credits list Ron Record at SCO engineering, who we've written about before on Groklaw in this context. One of the talk's slides lists the binutils package in OpenServer as OpenServer gnutools package, which means they had to know, I think, where it came from and that it is GPL'd, and there is a list of ftp sites to get the package.


ii. Answering SCO Bit by Bit - Streams and more GPL'd header files in Caldera OpenLinux 2.2

A reader sends us some more screenshots of Caldera, now SCO Group, distributing header files under the GPL. This time, it's from OpenLinux 2.2-4, dated from 1999.


Amongst other new posts, there is this one about Novell's latest motion:

Novell is asking the Utah District Court to set aside the earlier judgment by the Hon. Dale Kimball that Novell is not entitled to any of the SCOsource money from Microsoft or from Linux end users like EV1. That decision was based on his earlier ruling in August of 2007 on summary judgment that Novell owned the copyrights, not SCO, and that since SCO couldn't offer a release of copyright infringement claims, since it didn't own the copyrights, the licenses must not be SVRX licenses. I never could see the logic in that, but that is what happened. But since the Tenth Circuit set that summary judgment aside on copyright ownership, the judgment that Novell has no claim on the money must also be set aside, Novell argues.

In effect, if SCO were to be declared the owner of the copyrights, then Novell would like its 95 percent of any royalties. Of course, SCO is broke, so why is Novell asking for money, when it's so unlikely it will ever get any? I can only guess, but I believe they see that SCO is thinking of gearing up the SCOsource business if it can win the copyrights at trial, and Novell is moving to block. If the licenses are determined to be about SVRX, then SCO would be obligated not only to pay almost everything to Novell, but to ask Novell for permission to sue. Think somewhere between slim to none, the odds of Novell granting SCO permission to sue Linux end users.


This is getting very interesting.

In other legal news, Novell managed to reverse a key judgment that would save it a lot of money.

Judges usually don't look kindly on discovery lapses. But in a decision last week, an appeals court in California was sympathetic toward the software company Novell, which had been sanctioned for belatedly producing discovery. In a trial over a contract dispute, Novell was ordered to pay $19 million in damages, $4.5 million in interest, and more than $10 million in its opponent's legal fees.

[...]

During the jury trial in 2006, which lasted six months, Novell produced thousands of documents that had been requested by the plaintiffs earlier but that Novell had been unable to locate. Orange County superior court judge David Velasquez didn't think it was an accident. He labeled Novell "grossly reckless" in not producing the documents earlier and granted a motion by plaintiffs for sanctions. According to Miriam Vogel of Morrison & Foerster, who represented Novell on appeal, the sanctions were tantamount to a directed verdict.


More here: "Novell Gets New Trial After $35 Million Loss"

Software company Novell Inc. was spared a $35 million jury verdict against it when a California appeal court found last week that an Orange County Superior Court judge's sanctions against the company went too far.

The 4th District Court of Appeal found that Novell didn't act intentionally when it failed to present certain documents before the six-month-long trial started, and that Orange County Superior Court Judge David Velasquez was heavy-handed.


This is good news for Novell, but the company continues to jeopardise Free software as long as it acts at the behest of Microsoft, which is one of its biggest sources of income. Novell may be required to extinguish SCO, but Novell too needs to be extinguished along with Microsoft.

Recent Techrights' Posts

GNU/Linux Seen as Rising to 20% in Eritrea, But That's statCounter Identifying "Unknown" as GNU/Linux
What if statCounter managed to figure out what all those "unknowns" are?
 
Garrett Does Not Just Try to Cover Up for Himself, He's Clearly Covering Up for His Mates From Microsoft (and Admits Third Parties Fund His Litigation, With Their Legal Bills Estimates Already Approaching $1,000,000)
They have already sent us about 75 KG of legal papers. How is any judge supposed to keep up?
Richard Stallman in the United States - Part IV - Back to Switzerland
The "cancel mob" tried to "finish off" RMS 5 years ago
Dr. Richard Stallman in Ada Lovelace Lecture Series 20 Hours From Now in Lucerne School of Computer Science and Information Technology (Rotkreuz)
Well-connected and affluent corporations want everything to be controlled by them, ranging from culture to words and news
Threats Issued to Daniel Pocock Having Launched the JuristGate Web Site Which Covers Financial Fraud in "Legal Insurance" Clothing
Is our world governed by laws or by rich corporations (or nations/superpowers) with well-connected lawyers/politicians?
International Women's Day: At the EPO, for Women to Become Managers They Need to Sleep With Well-connected Men and Mingle With Corrupt Men
Sunday is International Women's Day
Dr. Richard Stallman Starts His Talks in Switzerland in 8 Hours
They try to assess how many people plan to attend to ensure everyone gets a seat (without compromising the privacy/identity of those attending)
IBM Red Hat Layoffs: It's Not About "AI"
"Automation" is not "AI", it's just a generic term which can describe jobs left for machines to do, sometimes computers
Microsoft Windows Used to be Identified on Over 99% of Web Requests From Benin. Now It's Around 50%.
Or a lot less
Microsoft 'Open' 'AI' Has Severe Financial Problems, Version Inflation ("GPT-5.4") is Mindless Hype and a Misleading Distraction
In practice, both users and sponsors of ChaffGPT are fleeing
The Techrights Static Site Generator (SSG) Turns 5 Next Year
It's still under active development in our Git servers
New XBox Boss (Sharma) Implicitly Confirmed XBox (the Console) is Now Dead
Vista 11 is now also known as "XBox"
Murder as a 'Joke' to GAFAM People (Sociopathy)
When it comes to Microsoft and Salesforce, they profit from this mentality
Microsoft ‘Project Helix’ is Just a Tweet in MElon's "X"
Some "tweet" is easy, as words are cheap
Microsofters' SLAPP Censorship - Part 4 Out of 200: Rianne’s Version of Events and Narrative
today we tell Rianne's experience
EPO Staff to 'Meet' This Coming Tuesday to Plan Industrial Actions Including Upcoming Strikes
using Microsoft spyware to organise this can be an own goal because Microsoft serves the dictators, not the union that tries to topple them
Thousands of EPO Workers Rally Against EPO Management
The staff is furious to see what became of the EPC and the EPO. This is not sustainable.
In Argentina Firefox is Measured at Only 1%, Google Chrome (Proprietary) at About 90%
And it has long been that way
IBM's March 2026 Layoffs Already Happening (to Accelerate Soon in Europe and America)
We're probably seeing some of the last years of IBM and it's anything but certain that IBM can survive the coming decade
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 05, 2026
IRC logs for Thursday, March 05, 2026
Gemini Links 05/03/2026: Industrial Panettone, Cancel, and LLMs
Links for the day
It's Not "AI", IBM is Collapsing Due to Financial Difficulties, "All Small Country Offices Will Close"
IBM is in trouble. Insiders know it.
"AI Companies" Running Out of Money, GAFAM Layoffs Are Signs of Weakness, Not "AI Efficiency" or Novelty
In the past, this term ("AI") had another meaning and connotation
Libel/Defamation Law Does Not Exist to Cover up Crimes
The projection tactics are nothing new
Myanmar/Burma: Growing Acceptance of GNU/Linux, Big Losses for Windows
GNU/Linux has come close to 5% there
Without IBM, Microsoft Would Not Have Taken Off. Both Companies Need to be 'Taken Down'.
Maybe it's time to boycott IBM as well
'Former' Red Hat Staff Upset That Techrights Covers IBM Accounting Problems
Are we touching a sensitive subject at IBM?
Ubuntu is Controlled by a Youngster From the British Army (Background in Mass Surveillance), So One Can Expect Ubuntu to Not Respect Privacy
"Canonical is aware of the legislation and is reviewing it internally with legal counsel"
IBM Hates Computer Freedom. This Means Red Hat Too is an Enemy of Software Freedom.
A summary of Fedora's position when it comes to "attestation"
IBM Union Says Many IBM Layoffs in Europe, With Netherlands and Belgium Confirmed, Allegedly Italy Soon (200 Layoffs)
IBM's demise will harm Red Hat and already harms Red Hat, according to whistleblowers
Microsoft and Microsoft's 'Open' 'AI' Seeking Bailout From the Pentagon Means Brand Erosion
Microsoft and its offshoots growing more and more dependent on military ("defence"; "Department of War") budget
Another EPO Strike a Fortnight From Now, Local Staff Committee Munich (LSCMN) Shares 127-Page Document Explaining How Policies Impact EPO Staff
The Office is circling down the drain
Microsofters' SLAPP Censorship - Part 3 Out of 200: A More In-Depth Breakdown
presents the narrative in a less chronological and more logically coherent fashion
2026 Seems Like (Potentially) the Last Year of Slop Drowning News Sites
Sites that do so perish [...] It's getting hard to find slop in news sites which cover "Linux" because many gave up
Links 05/03/2026: New LexisNexis Data Breach Confirmed, "Goldman Sachs Head During Financial Crisis Says He “Smells” a Similar Crash Coming"
Links for the day
"Silent Layoffs" or "Forever Layoffs" at IBM and Red Hat (After Bluewashing)
Like every day (all day long) we can see people who leave IBM and say something that's based on a 'script'
Free Software Foundation (FSF) and Others Promoting String of RMS Talks, Starting Tomorrow in Lucerne School of Computer Science and Information Technology
Well done, FSF!
Links 05/03/2026: A Bet Against Substack, American Government Openly Hostile Towards Environment
Links for the day
Gemini Links 05/03/2026: Greed and Sentiments Shifting Against Slop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 04, 2026
IRC logs for Wednesday, March 04, 2026
FSF Promoting Richard M. Stallman (RMS) Talk in Switzerland in Just Over a Day From Now
RMS may have more talks on the way
Why Slop Will Flop - Part IV - We've Seen the End of It
Some years ago they insisted blockchains would revolutionise everything
Android is Proprietary 'Linux' and It Becomes More Malicious Over Time, Google Only Delayed What It Planned All Along
Google is a proprietary software giant, GSoC is only a distraction and confusion
Links 04/03/2026: Scam Altman Causes Chatbot Sub Numbers to Plunge, "Stocks Drop as Inflation Risk Emerges"
Links for the day
Why Slop Will Flop - Part III - Our Relationship With Slop (and Yours)
I never - except inadvertently - "used" an LLM-based chatbot
Why Slop Will Flop - Part II - Devil in the Details
News sites or social control media sites which tolerate slop are digging their own grave
Simpler Means Faster
Do you know your bottlenecks?
Gemini Links 04/03/2026: About a Missing Symbol and "Good Manners"
Links for the day
The Register MS Takes Money From Chinese Surveillance Threat to Promote a Ponzi Scheme
"Sponsored by Huawei."
Nicaragua's GNU/Linux Usage Measured at Over 8% by statCounter
Nicaragua is a poor country, but it also has rich culture
Why Slop Will Flop - Part I - Slop Fatigue Prevalent
See, sooner or later people (audiences of colleagues) find out and as soon as they find out you are slopping, they will lose interest
Microsofters' SLAPP Censorship - Part 2 Out of 200: Detailed Timeline From 2012 (Attack on Reporters That Question Restricted Boot) to 2024 (Lawsuit Against Reporter and His Wife in Another Continent)
we reproduce a document produced 2 years ago to give people more context and more facts
Links 04/03/2026: "The EU moves to kill infinite scrolling" and a call to "Nationalize Amazon"
Links for the day
Coming Soon: Evidence of Abuse in Our IRC Network
IRC's freedom can sometimes be its 'weakness' if not properly guarded
High GNU/Linux Adoption in Brunei Darussalam
It's worth noting (or at least noticing) that Microsoft loses ground in some of the countries where the government contracts paid the most
Media Blackout Reducing or Preventing Press Coverage of Microsoft Layoffs in 2026
Worse yet, there will be gaslighting and deceit
GNU/Linux in Laptops/Desktops Still Matters, It's Likely the Only Way to Achieve Software Freedom
Software Freedom requires all sorts of things at the "OS level"
Gemini Links 04/03/2026: The Garnet Star, The Hunt, The SYN Attacks
Links for the day
The EPO's General Consultative Committee (GCC) Discussion Illuminates How Much Worse Things Have Gotten ("on Strike and Participated in the 'Meeting'")
a videoconference - not a physical meeting - discussed EPO policies
Free Software Foundation Supports Its Founder, Advertises His Talks in Switzerland
When you suppress voices, assuming the reasons for suppression are bunk, it is always bound to backfire very badly
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 03, 2026
IRC logs for Tuesday, March 03, 2026