Feeds

SCO files for US bankruptcy protection

Lawyers got theirs

Providing a secure and efficient Helpdesk

SCO Group today filed for bankruptcy protection. With less than $10m cash left to call on, SCO said that Chapter 11 protection and reorganization would protect assets as it addresses, ahem, "potential financial and legal challenges".

The move comes after a US judge last month found Novell, not SCO, is the owner of the Unix and UnixWare copyrights. The judge also ordered SCO to pay royalties to Novell, arising from Unix licenses that it had sold to Sun Microsystems and Microsoft. Novell could be owed as much as $25m, according to industry estimates.

SCO had dismissed as FUD claims by Novell earlier this year that it lacked the cash to pay and was staggering towards bankruptcy.

In subsequent interviews, intended to show SCO was coming out fighting, embattled chief executive Darl McBride insisted SCO would not only appeal the judge's decision but SCO didn't owe a red cent.

"The deals with Sun and Microsoft were about the latest and greatest of UnixWare technology, which is ours," McBride said.

It's a bitter, but predictable, end to a case that saw McBride gamble big and in which SCO poured money into the pockets of its attorneys, Boies, Schiller & Flexner.

Five years ago, then new CEO McBride launched a $5bn legal action against IBM over alleged violations of its Unix IP in Linux by the systems giant, and soon become mired in a string of counter suits.

As SCO's Unix business melted each quarter, the company tipped from profit to loss, at times simply thanks to the size of its attorneys bills. In one quarter alone SCO paid $9m. As the case progressed and the coffers emptied, SCO offered Boies and Co. a 20 per cent stake as payment if the company was sold.

Any sale today would surely be a fire sale. ®

Internet Security Threat Report 2014

More from The Register

next story
Microsoft WINDOWS 10: Seven ATE Nine. Or Eight did really
Windows NEIN skipped, tech preview due out on Wednesday
Business is back, baby! Hasta la VISTA, Win 8... Oh, yeah, Windows 9
Forget touchscreen millennials, Microsoft goes for mouse crowd
Apple: SO sorry for the iOS 8.0.1 UPDATE BUNGLE HORROR
Apple kills 'upgrade'. Hey, Microsoft. You sure you want to be like these guys?
ARM gives Internet of Things a piece of its mind – the Cortex-M7
32-bit core packs some DSP for VIP IoT CPU LOL
Microsoft on the Threshold of a new name for Windows next week
Rebranded OS reportedly set to be flung open by Redmond
Lotus Notes inventor Ozzie invents app to talk to people on your phone
Imagine that. Startup floats with voice collab app for Win iPhone
'Google is NOT the gatekeeper to the web, as some claim'
Plus: 'Pretty sure iOS 8.0.2 will just turn the iPhone into a fax machine'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.