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

Microsoft Trots Out Its Propaganda Agent Preston Gralla to Make It Sound Like Microsoft Breaks Up With China (Reality: Microsoft Got Dumped by China)
This discredits any publisher that plays along
SLAPP Censorship - Part 161 Out of 200: Low Standards in Defamation Cases Just Muddy the Waters and Distract From Legitimate Cases
The judge at the trial said that Garrett's case was a waste of the court's money
 
How Many Web Requests From "Linux"...
If one was to assert that "Linux == Android" or "Android == Linux" (it's not that simple), then "Linux" already accounts for about 30% of Web requests
An Explainer About Injunctions Done Wrong - Part I - Saving Money Where Money Cannot be Saved
Of course Garrett not being able to afford his own case is a key factor here
Links 25/08/2026: "U.S. Marines Cancel Drill With South Korea", "UK Prime Minister Burnham Arrives in Ukraine"
Links for the day
Not for the First Time This Week, Site Called "It's FOSS" is Promoting Software That is NOT FOSS (And It Knows It)
Is this an editorial choice? Advertising? What is it?
Gemini Links 25/08/2026: Geometry and FidoNet History, "Goodbye I2P and Yggdrasil, Welcome Telnet!"
Links for the day
Links 25/08/2026: Microsoft Salaries Leaked Again, "Oasis Photograph Sparks Copyright Lawsuit"
Links for the day
GNU/Linux Did Not Start in 1991 and America Wasn't Discovered by Europeans
it'll be 43 next month
Rolling Out Some Changes Soon
To the regular reader no change will be seen
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 24, 2026
IRC logs for Monday, August 24, 2026
Gemini Links 25/08/2026: Separated by Plexiglass, Low-Tech Information Networks, Jörg Rippel Comes to Geminispace
Links for the day
The Tragedy of Software Developers Making Up Narratives and Making Excuses for Plagiarism (of Their Own Work, Too)
one lingering issue is that many who vote in Debian GRs receive money from slop companies
Evri Makes Us Optimistic About the Collapse of the Slop Pyramid Scheme (Bubble)
Do not be seduced by false promises of "automation" or "intelligence" where only automation may exist but no intelligence at all
Congrats to Linux.org for Adopting or Getting Back to IRC
This is the way the Net ought to work and was originally designed to work [...] IRC as a protocol turns 38 this month
Links 24/08/2026: "Journalism Can Help Expose Bad Science And Trigger Real-World Change"; Further Suppression and Censorship in China/HK
Links for the day
Gemini Links 24/08/2026: Soul Mentality, Words to Live by, Mozz.us Gemlog Resumes, Smol Conversations
Links for the day
Today The Register MS Published Greenwashing Spam for the Slop Pyramid Scheme, It Mentions "AI" 29 Times
More people need to talk about the role of the media in this pyramid scheme
Slop Plagiarism and Chatbots Are Killing Evri (They Infuriate and Insult Clients)
Slop destroys companies and leads to misery (miserable clients, time-wasting)
Links 24/08/2026: Re-defining the IndieWeb and "Data Center Backlash Bursts Into the Midterms"
Links for the day
The Issue With Omarchy is the Slop, the Politics Are a Side Issue
Those corporations do not oppose slop, they participate in it
In South Korea, Steady Increases for GNU/Linux
authorities said they would migrate to GNU/Linux or consider moving in that direction
SLAPP Censorship - Part 160 Out of 200: In Astounding Repetition of Last Year, Brett Wilson LLP Deliberately Ignores Holidays of People It is Attacking and Crushes Principles of Access to Justice
Disconnected from the law
Links 24/08/2026: Vision and Skill, Doing Good, Chiperia Project
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 23, 2026
IRC logs for Sunday, August 23, 2026
Gemini Links 23/08/2026: Turning 60, PineTime, and Simulation Hypothesis
Links for the day
Will Your "Modern" New Car Still be on the Road in 2060?
Are people now expected to change a car as often as they replace a mobile phone and, if so, how fast would costs add up?
The Sniff Test
Be sceptical of "CoCs"
Cloudflare Sees a Quarter of Requests in China Coming From GNU/Linux Today
Will 23% ever be the average for GNU/Linux rather than a mere peak?
You Can Lose Some Battles and Still Win the War
Winning or losing isn't something for a scoreboard
GNU/Linux Usage Measured at 23% in Russia Today
the average was almost 10%
Things Not to Fear Missing Out on
Life is too short to pay attention to social control media
Gemini Links 23/08/2026: Exercising Again, Tackling Phone Addiction, and Putting Graal Online Back Online
Links for the day
Northern Africa: GNU/Linux Measured at Around 5%
by Clownflare
PIPs and Lawsuits: On the Future of IBM Trying to Spit Out Its Own Staff at Minimal Cost
"I'd rather be laid off than be put on a PIP"
France: GNU/Linux Averaging at 7%, Peaked at 14% Today
When will 14% be the average?
Links 23/08/2026: Water Crises, Illegal Tariffs, and Carney Confronts US Over Patent Imperialism
Links for the day
Links 23/08/2026: Slop "Children's Stories Contain Bizarre Patterns" and "Butterflies at the One Garden"
Links for the day
SLAPP Censorship - Part 159 Out of 200: Telling Courts False Information and Spoon-feeding Them Insults, Hoping or Expecting Them to Repeat These Insults
When lawyers trick courts into repeating something false
Microsoft is in Double Trouble in Singapore
Android+GNU/Linux+ChromeOS are near 20%
The Slop Industry Bribed the Media to Pretend It Has Something New and Revolutionary. Now It Bribes Politicians Too. Anything to Avoid Scrutiny and Regulation.
borrowed money has long been used to bribe the media
"AGI" is Decades Old and It Never Found a Viable Business Model or Real, Actually Useful Use Cases
I keep reminding people of local firms (right here in Manchester) doing the same thing the media now calls "AGI"...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 22, 2026
IRC logs for Saturday, August 22, 2026
Microsoft to Its Workers in April-May: You're Too Old, Go Away. Microsoft in August: Young People, Go Away.
What does this company even sell anymore?
Clownflare Data US-Centric
We are assuming that for national security reasons not many sites in Chinese (or based in China) outsource their traffic to Clownflare
Gemini Links 22/08/2026: Broken Car, Devuan, and Thundermail
Links for the day