Feeds

SCO files for US bankruptcy protection

Lawyers got theirs

Top three mobile application threats

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. ®

Mobile application security vulnerability report

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.