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

Nearly 1,000 People at EPO 'Met' to Plan Further Strikes and Impending Action to Dethrone Corrupt Leadership
Exploring the purchasing "power" of EPO leadership (buying elections while doing cocaine in public)
SLAPP Censorship - Part 196 Out of 200: Sending Someone to Our Doorstep to Ship Approximately 5 KG of Legal Papers (Instead of to Our Representatives)
it is not about law, this is lawfare
 
Appliances Should be Dumb
Any "Smart Home Appliance" is basically a thing that does not last long, does not work as advertised, and is generally unfit for purpose
SLAPP Censorship - Part 198 Out of 200: It Sounds Like Garrett is Now Sending People to Silence Critics (Including His Own Spouse)
This week Garrett is having a somewhat karmic experience
Links 24/09/2026: Slop Contaminating KDE, Slop-Focused Data Centres Have Severe Environmental Impact
Links for the day
SLAPP Censorship - Part 197 Out of 200: Garrett Became So Poor That He Wants Others (in Another Continent) to Pay for His Own Legal Work Being Faulty
They lie to courts
The Register MS Has Become a Slopfest
This is the behaviour of a perishing publisher
Gemini Links 24/09/2026: Requiem for a Season, Philosophy, Rube-Goldberg Machine, ROOPHLOCH 2026, and Git over Gemini
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 23, 2026
IRC logs for Wednesday, September 23, 2026
IBM Grapevine: Development Outsourced to LLM Slop and It Results in Many Bugs
IBM is circling down the drain and every insider knows it
Microsoft Gives Many People the 'Booty' This Week, Not Counting PIPs (Silent Layoffs and 'Voluntary' Layoffs)
Microsoft PIPs allegedly target "20-25% in some teams."
Links 23/09/2026: Pax Silica Hub Ruins a Country for a Pyramid Scheme (Slop), Convicted Felon's Press Block Resembles Iran, Russia, China
Links for the day
Gemini Links 23/09/2026: Stuck, Gambling, Fury Road, IPFS, and More
Links for the day
The Register Got Paid Today to Spew Out "AI" Almost 50 Times (Keeping the Pyramid Scheme Buzzing in Headlines)
paid-for spam
IBM's Anderon Already Smells Like a Fraud and IBM Insiders Heckle the Lies From the Management
Sabine Hossenfelder recently made some videos which explain in simple terms why IBM is lying and has already lied about this for years
Links 23/09/2026: Mass-Surveillance by Clownflare and "Data Centre" Crunch Commences
Links for the day
Same Name/Brand, Not the Same Project/Product
What is Linux becoming?
Germany, Like Switzerland, Will Dump Microsoft's Proprietary Software and Disservices, Then Dump Windows for GNU/Linux
This impacts not only the Windows revenue; this corrodes any "rents" Microsoft was getting from "subscriptions"
3 Years Divorced From Americans
Next year we plan to pursue the UK's Court of Appeal
The Register MS Uses Slop About Slop (in Images)
Months ago we caught The Register MS using slop for text as well
There Are Likely Over a Thousand Internet Relay Chat (IRC) Networks Online, Net Gain of 16 Seen This Month by Andreas Gelhausen's netsplit.de
It's good that they're still tracking that sort of stuff
SLAPP Censorship - Part 195 Out of 200: Two Years Since Garrett, Graveley and Lozza Worked in Parallel to Censor Techrights
It began in September 2024, shortly after we had sued Garrett
Linux Kernel Becoming a Slopfest - Part 8 - In Conclusion
this can invite more SCO-like problems in the future
Microsoft Shuts Down More Studios, Morale Low, More Mass Layoffs Ahead of Reports
They pretend it's not happening or that it's a lot smaller than it actually is
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 22, 2026
IRC logs for Tuesday, September 22, 2026
Gemini Links 23/09/2026: Ljubljana, Poetry, and FORTRAN
Links for the day
The EPO's Central Staff Committee (CSC) Shows Job Insecurity at Europe's Second-Largest Institution
Who would want to join a company with such low job security?
There Are Thousands More Microsoft Layoffs (Including Silent Layoffs), Not Hundreds
Microsoft does have layoffs and today is no exception (except Microsoft talks about it)
Gemini Links 22/09/2026: Disability Studies, Slop Boosters, and TkInter
Links for the day
Links 22/09/2026: Flock is Collapsing Amid Mass Backlash and Internet Society Collaborates With the 'Epstein Class' (Trafficking of Women)
Links for the day
SLAPP Censorship - Part 194 Out of 200: The Court Needs to Also Look Into Microsoft-Controlled Restricted Boot Advanced by An American (Garrett) to Promote Monopoly and Back Doors Everywhere
Kill switch sold as 'security' is like euthanasia sold as a cure
Linux Kernel Becoming a Slopfest - Part 7 - Infested With or Plagued by Bot-Generated Slop, Committed by Microsofters
Slop is a security threat; even the person committing slop to Linux might not be aware that there's a back/bug door in the code
Raspberry Pi Has Microsoft Secrets Inside, Now DRM
now we deal with SBCs that have DRM in them, put there for commercial reasons
Edward Snowden Lost His Voice, Then His Leaks Lost Exposure (Access Denied)
When states want to deny people access to some information they have many tools at hand
2 Hours Ago The Register MS Published a Page That Says "AI" 42 Times Because It Was Paid to Do So
Still inflating the bubble for money
Gemini Links 22/09/2026: Scout Night, Cybernetic Capitalism, and Thoughts on Companies Forcing People to Adopt Plagiarism Engines
Links for the day
Links 22/09/2026: "An Arsenal of Surveillance" and Slop Bots Suggest Starting Wars
Links for the day
SLAPP Censorship - Part 193 Out of 200: Breaks GNU and Linux, Tries to Silence Critics, Loses All Money, Looks for Microsoft Allies and Sponsors
The latest emotional knee-jerk reactions serve to confirm what we have long said
Things Will Only Get Better (as We Go Backwards)
It only gets better. If you go back in time.
UK High Court Shows SRA is Totally Useless in Curbing SLAPPs, This Has Impact on Our Reporting on the SRA Next Week
We'll carry on our coverage and soon finish the current series that so we can get on with more time-sensitive ones
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 21, 2026
IRC logs for Monday, September 21, 2026