Bonum Certa Men Certa

Consequences of UNIX up for Sale

Novell suicide



Summary: How the outcome of the SCO case -- as positive as it is -- relates to the future

THE SCO case is almost over and just about everyone has already seen the news (so we won't repeat it). As we shall show at the end, it's not quite over because of the vulture fund that's running after Novell (or circling Novell's decaying body rather) and SCO wants to carry on with the case against IBM. We urge readers to remember what Groklaw said about the timing of the vulture fund's arrival at the scene. It was only days before the SCO trial.



In this post we'll try to contain as much coverage as possible and leave readers to explore the sources, which mostly comprise overlapping and obvious information.

Prior to the ruling we found quite a lot of anticipatory coverage such as:

SCO v World Bombshell

The malloc code is stuff that was released years ago by Caldera and certainly is not something SCOG defended in the SCOG v IBM case. Judge Kimball expressed astonishment at how little evidence SCOG presented after years of discovery and litigation.

If a corporation cannot be jailed for fraud, its officers should be.


No Verdict Today, the Final Day, in SCO v. Novell - Deliberations Begin Again Tuesday

SCO v Novell is unfair to Novell

Judge Stewart is obviously capable of great insight and has the legal knowledge. This case suggests strongly that he is not ruling based on law but on some hidden agenda to give every advantage possible to SCOG. Novell has taken the steps to document their motions very well should an appeal be necessary. I believe whichever way the case turns out, some peer review of Stewart’s conduct of this case is in order. Courts run this way are pointless. We can find bullies galore on the street. We do not need them in courts.


Just before the judgment we had:

Court Grants SCO's Oral Motion for Judgment on Novell's Slander of Title Claim

Jury deliberating UNIX ownership in ongoing SCO trial

SCO's fate has been placed in the hands of 12 Utah jurors who will resume deliberations on Tuesday. They are tasked with deciding whether the UNIX SVRX copyrights were transferred from Novell to SCO in a 1995 asset purchase agreement.

SCO's legal battle began in 2003 when the company claimed that Linux includes code that was misappropriated from UNIX. Novell claims that SCO does not have standing to pursue litigation relating to SVRX copyright infringement because it does not own the relevant copyrights. A bench trial that concluded in 2007 ruled in Novell's favor but was later overturned. The case was put before a jury, which heard the closing arguments on Friday.


Ownership of Unix copyrights in hands of Utah jury

A Salt Lake City jury has started deliberations in a case pitting two software companies that each claim ownership of the Unix computer operating systems used by large corporations.


Jury rests for weekend in SCO Group-Novell trial (and it's here also)

A federal jury began deliberations Friday in the trial pitting The SCO Group against Novell Inc. in their dispute over which owns the copyrights to the Unix computer operating systems used by many businesses.


Ownership of Unix Copyrights in Hands of Utah Jury

SCO UNIX Claims Could Be Decided This Week - Or Not.

SCO the company that has been claiming that it owns UNIX copyrights and that Linux infringes on those rights is still alive....barely.


SCO Novell Jury Decision Pending

Ownership of Unix copyrights in hands of Utah jury (AP coverage)

Is this the end for SCO?

I've given up on predicting when the zombie movie series staring the undead SCO monster is finally going to stay quietly in its grave Still, this week a jury is deciding whether SCO or Novell owns Unix's intellectual property rights.

You may have thought that this was settled. Most of us who followed SCO certainly thought that was a done deal. After all, the matter of who owns Unix comes down to a fairly simple issue of contract law and not some esoteric IP (intellectual property) legal gymkhana. And, no matter how SCO sliced it, Judge Dale Kimball decided that Novell owned Unix's copyrights. Alas, another judge decided last August that Kimball had had no right to make that call and that a jury should decide who Unix's copyrights instead.


Here is an interesting one which is worth bearing in mind: "SCO Wants to Sell Java Patent and (Mostly) Pay the Professionals"

SCO Chapter 11 Trustee Edward Cahn has now reported to the bankruptcy court that he's closed on the loan from Ralph Yarro and his friends, and now Cahn wants to pay most of the bills in the bankruptcy from SCO's numerous professionals. And he wants to sell the Java patent, since SCO's never used it and has no use for it going forward. He has a buyer, Liberty Lane, LLC, and so he asks the court to approve the sale to Liberty Lane "or another higher and better bidder." That seems unlikely, in that they claim to have shopped the patent to around 40 potential purchasers. Liberty Lane is offering $100,000.

[...]

And who is Liberty Lane LLC? According to Exhibit B [PDF], they have an office in San Diego, CA but are a Delaware LLC. Exhibit D says Liberty Lane is a company affiliated with Allied Security Trust I, and if that is this patent-protection (from trolls) company, that might not be half bad. Google and HP are members of Allied. At least they'd keep it out of the hands of the litigation lizards. That's Allied's purpose, to dry up patent trolling as a "business" by buying up patents that might be used that way. And Exhibit E [PDF] indicates they are one and the same, in that the letter of intent shows the same name as CFO, Kerry Hopkin.


It is worth watching who gets such patents.

Anyway, the statement from Novell's PR people was probably the first to announce the results of the trial. It's a good outcome for Novell, which also issued a press release about it. Groklaw has already gotten over 1,500 comments and Brian Proffitt gives Groklaw credit.

Then came heaps of press coverage, such as:



Even a former Novell employee wrote about it (there was no disclosure).

The major news is included in many news digests too [1, 2, 3].

On Tuesday, a jury in Nevada sided with Novell in its long-running legal dispute with SCO. The jury in the U.S. District Court for the District of Nevada ruled that Novell owns Unix copyrights that SCO has tried to assert as its own. Pamela Jones, a paralegal who has closely followed the SCO v. Novell case since its beginning on her Groklaw blog, initially deemed this the end of the line. "It's over," she wrote on her site. However, SCO could appeal the ruling.


SCOTUS Blog had this to say:

Issue: Whether the “writing” referenced in 17 U.S.C. €§ 204(a) — requiring for a transfer of copyright ownership “an instrument of conveyance, or a note or memorandum of the transfer” that is “in writing and signed by the owner of the rights conveyed or such owner’s duly authorized agent” — must specify which copyrights were conveyed, or instead requires only that the written instrument could be construed to convey some copyrights.


It's not so crucial. This is more or less a repetition of a 2007 decision. If Novell owns UNIX, there are greater troubles now than there were back then. Since Novell is up for sale, then UNIX may be up for sale, too.

Financially, here is what was happening around that time [1, 2]. Novell got downgraded.

Novell (NOVL) was downgraded today by analysts at Thomson Financial - Gradient and the stock is now at $5.77, up $0.02 (0.35%) on volume of 4,690,115 shares traded.


Now, to emphasise the important part, according to some sources, "SCO vows to press ahead with IBM lawsuit."

But Cahn said SCO intends to continue its lawsuit against IBM, in which the computer giant is accused of using Unix code to make the Linux operating system a viable competitor, causing a decline in SCO's revenues.


From Briefing.com (via Microsoft) we learn:

It was rumored that IBM (IBM 128.46 -0.13) could be interested in Novell (NOVL 5.80). NOVL shares did not react to the rumor. As mentioned before, while many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term.


At ZDNet, one GNU/Linux enthusiast asks, "Why doesn't IBM just buy Novell already?" (we did an April prank about it one year ago)

I actually started pondering this a few days before the Novell-SCO ruling on Tuesday clearly put Novell in an important position as a “[defender of] Linux on the intellectual property front.” Why, you ask, would a Googley Edu blogger be thinking about major players in the enterprise Linux market? Because I can see an open source showdown in the making here, the beneficiaries of which will be consumers, SMBs, enterprises, and educational institutions. I don’t get the feeling the showdown will be any fun, though, if Novell is left to its own devices.


What we do know is that Novell may be looking for a buyer. As Tim puts it:

That is the question? It certainly seems like its a possibility in the case of Novell, with rumours abound on the Net that it may be up for grabs. Speaking personally, I wonder how much of an opportunity Novell missed when it signed a deal with Microsoft. Regardless of if there is a “master plan” in operation, I don’t think it can be argued that the “deal” did damage to the Novell image.


The eternal boss of JBoss (Marc Fleury), who met Ron Hovsepian, argues that Novell is likely to sell itself.

So let's see if I can summarize the Novell thing as i understand it.

a/ The offer is from a hedge fund b/ the offer is 50% above EV c/ the offer was turned down

c/ can be written off as a mere negotiation step. The board is rejecting the first offer on the table. What else do you expect them to do? There is nothing to see here and I would still put the odds very high on Novell is a sell.


Novell has rejected the first bid (probably as expected from a negotiator) and here is a new video that covers that.



For more background on the subject, see the following older posts:

  1. Vulture Fund Still the Only Bidder for Novell
  2. Novell May be Going Private, Hedge Fund Has Cash
  3. Analyst Expects Microsoft Bid to Buy Novell
  4. Ron Hovsepian Receives Another Large Lump of Cash as Novell Sale Looms
  5. GNU/Linux-Savvy Writers View Elliot Associates as Bad Neighbourhood
  6. Firm Behind Novell Bid Has Shady Past, Could be Tied to Microsoft (Paul E. Singer's 'Vulture Fund')
  7. Simon Phipps: “Seems Even With Microsoft’s Support Novell Couldn’t Cut It”


The bottom line is that SCO does not own UNIX. But we don't really know who might be the owner of UNIX later this year.

Comments

Recent Techrights' Posts

"Major [IBM] Reductions Will Take Place Soon in Rochester MN"
Maybe that's just the latest office gossip
"Today's [Red Hat] is run by a cabal of vultures."
it seems safe to assume Red Hat too will languish away
Microsoft Layoffs in 2026 Can be Bigger Than 2025 Microsoft Layoffs (30,000+ Workers Laid Off)
"Is there going to be any reorg or Microsoft layoffs?"
The Free Software Foundation (FSF) Represents People, Not Corporations
FSF isn't in the "business" of appeasing oligarchs
 
"Generative AI Bubble Has Begun to Pop", Nvidia Rides “Circular Financing... a Strategy That Hearkens Back to the Dot-com Crisis”
For companies like Microsoft this may mean another 30,000+ layoffs next year
Microsoft-Connected Media Talking About XBox Division "Profit Margins" is Distraction From XBox Sales Collapsing 70% in One Year
The simple fact is, Microsoft's console is dead in the water
The Reality is "Vibe Code" (Slop) is That It's Worthless
“Confidently Wrong”
British Web Developers Can Probably Ignore Firefox Users (Based on US Standards)
Mozilla has managed to piss off enough people
On the 'Digital Gulag' of 'Secure Boot' and Microsoft Disguising Its Attacks on Users as "Security"
Dr. Andy Farnell has this new article
Slopfarms Can Only Survive in Google News, Which is Still Promoting Them
Google News promoted only 3 slopfarms today
Gemini Links 22/12/2025: Films, Creativity vs. Consumption, Slop in YouTube
Links for the day
Microsoft XBox Losing Money, Layoffs and Studio Shutdowns (As Well as Price Hikes) Not the Solution
Microsoft does not quite talk about profits
Links 22/12/2025: Data Breaches, deterioration in Politics, and Geminispace
Links for the day
Links 22/12/2025: North Korean Applicants Target GAFAM (Amazon), ‘Orwellian Climate of Fear’ of CPC (Even Outside China)
Links for the day
More IBM Layoffs in India
It's not as simple as "laid off to be replaced by an Indian"
GAFAM Deeply Connected to Jeffrey Epstein, Richard Stallman (RMS) in No Way Connected to Jeffrey Epstein
people who hoarded all the capital get to decide what people think and say
Linus Torvalds Has a Birthday This Coming Weekend, Thankfully He Still Controls His Main Project
GNU and Linux should remain under their control as long as they live
Mozilla is Getting Attention for All the Wrong Reasons, Take a Look at LibreWolf
Just last week Mozilla added a new top-level manager who (as usual) came from a "tech giant"
When Conformism Means Capitulation and Defeat
In an age of injustices like these, we all have some kind of moral obligation not to be conformist.
Text is Still King
But the so-called 'industry' insists that we should download 10 MB of objects from multiple domains... even just to read 5-10 paragraphs of text
Links 22/12/2025: Facebook "Testing $14.99 Monthly Subscription Fee to Post Links" and "Middle East Petrostates as American Media Owners"
Links for the day
Beyond the World Wide Web (WWW)
We continue to treat Gemini Protocol as a first-class citizen
Serbia: GNU/Linux Rises, Windows Down to All-Time Lows
According to statCounter
"Wrestling With Pigs"
"Never wrestle with a pig. You both get dirty, and the pig likes it."
Productive Year and Better Access to Techrights' Archives Going Back to 2006
we've long needed and wanted native, local, independent search facilities
Linux Abandoned by Linux Foundation
It speaks for Microsoft and for so-called 'AI' companies
Microsoft Has Practically Given Up on XBox Already
Expect many XBox related layoffs when 2026 starts (Q1)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, December 21, 2025
IRC logs for Sunday, December 21, 2025
Gemini Links 21/12/2025: Solstice, Chaos of CSS, and Program Interpreter Fun
Links for the day
Why?
Why write articles?
Microsoft-Connected Publisher Spinning XBox's Death Spiral (It's Dying Fast) as a Strength and Something Deliberate
"Microsoft’s big gaming pivot"
Slop is Rare by Now
A year ago slop was so abundant that we did a whole series about it, and it was daily
Links 21/12/2025: U.S. Strikes in Syria, "Epstein Files Photos Disappear From Government Website"
Links for the day
Gemini Links 21/12/2025: Labrador Retriever of Lagrange's Developer Dies From Cancer, Political Philosophy, and "Getting to Inbox Zero"
Links for the day
IBM: We Can't Make 'AI' (Voice Recognition) Do the Work of a McDonald's Teenager, So Let's Try the Same on Saudi Planes
IBM is lost. It's truly lost.
Microsoft is Becoming Irrelevant: The Case of Georgia
Not Georgia Tech
Sirius Open Source is Now Imminently Dead (Struck Off)
compulsory strike-off
Dr. Richard Stallman, Invited by LibreTech Collective, is Giving a Public Talk in Georgia Tech Next Month (Scheller College of Business)
They can probably squeeze about 400 people into this room
25 Years of Activism for GNU/Linux
My passion for GNU/Linux brought a lot of contentment
Africa, Where Microsoft Used De Facto Slaves to Pretend to be "AI", Chatbots Usage is 0.2% of Measured Online Traffic
Judging by recent trends in Africa, many "Windows PCs" are being converted into GNU/Linux computers
New Drone Footage Shows IBM is Dead (Parts of It)
The people who participated in IBM when IBM actually mattered probably have boasting rights, unlike people who work for IBM today
Michael Larabel Adds Slop Category to Phoronix, Quickly Realises That It's Worthless
Phoronix nowadays gets carried away; it made a new category to talk about slop and it decided to call it "intelligence" with some caricature of a brain (that's misleading)Phoronix nowadays gets carried away; it made a new category to talk about slop and it decided to call it "intelligence" with some caricature of a brain (that's misleading)
After 35 Years the World Wide Web, HTML, and HTTP Are Proprietary
HTTP/2 added a lot of complexity (it's just a Google protocol, based on SPDY originally), many image formats are proprietary and patented, HTML got 'replaced' by Java-Scripts [sic], and many URLs (the URL system was created in the early 90s) are just long strings for proprietary 'webapps'
The General Public License (GPL) Inspired the Web's Original Openness/Freedom, According to Tim Berners-Lee
"During the preceding year I had been trying to get CERN to release the intellectual property rights to the Web code under the General Public License (GPL) so that others could use it."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, December 20, 2025
IRC logs for Saturday, December 20, 2025