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Novell vs SCO will go to court after all

Chapter 11 immunity lifted

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Novell has succeeded in getting a court to lift SCO's Chapter 11 immunity from legal action, meaning the firm's IP spat can go to trial.

Normally Chapter 11 means that companies cannot take legal action against you - it is designed to protect a firm from creditors while it reorganises. SCO filed for protection in September.

Novell's case was heard in Delaware. The court agreed that Novell's motion be granted because the case was ready for trial, SCO has separate lawyers for the case and the court in Utah had already spent several years getting to grips with the legal and technical arguments.

Novell's lawyers have already filed notice of Delaware's decision to the court in Utah.

Just a week after seeking bankruptcy protection in September, SCO told the Securities and Exchange Commission that "there is substantial doubt about the company's ability to continue as a going concern". At the end of October SCO got an offer for its Unix business.

There's more from Groklaw here.

SCO started legal action against IBM over alleged violations of its intellectual property and quickly became mired in countersuits.®

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