Feeds

SCO threatened with Chapter 7 destruction

'No reasonable chance of rehabilitation'

Combat fraud and increase customer satisfaction

SCO Group's long-standing legal battles over its claimed Unix copyrights may finally end with US bankruptcy court forcing a Chapter 7 cyanide capsule down the company's throat.

On Tuesday, the trustee appointed by the federal bankruptcy court in Delaware asked for permission to dissolve the ailing shell-of-a-software-company and pawn off its assets.

Trustee Roberta DeAngelis told the presiding judge in a filing that that SCO has "no reasonable change of rehabilitation," adding the company has "tried — and failed — to liquidate their business in chapter 11."

In September 2007, SCO filed for Chapter 11 bankruptcy protection, which shields the company from creditors while it reorganizes the biz. Forcing the firm into Chapter 7 would require an appointed independent trustee to sell all of SCO's assets and distribute the proceeds to its creditors.

"We are reviewing the motion with counsel and will have a detailed response for the court in due course," SCO told El Reg in an e-mailed statement. "We plan to oppose the motion and present our own suggested course of action to the court."

The bankruptcy judge now has three options. He can approve Chapter 7, accept a SCO survival plan under Chapter 11 if it somehow scrounges up the money to pay off its debts, or dismiss the bankruptcy protection plea completely. That decision is likely to come during a hearing set for June 12.

SCO's mess began about a decade ago, when Novell sold Unix trademarks and other assets to the firm. SCO assumed that deal included copyrights to Unix code,and the company used this claim to force Sun Microsystems and Microsoft into licensing agreements. It then sued IBM in 2003, claiming the computer giant was using the allegedly copyrighted technology in its Linux kernel.

A year later, SCO filed a slander of action lawsuit against Novell after the company said it still, in fact, owned the disputed Unix copyrights in SCO's case against IBM. After three years of legal battling, a US district judge in Delaware ruled in Novell's favor and ordered SCO to pay nearly $2.5m in royalties to Novell for unjust enrichment.

SCO filed for bankruptcy about one month after the court's initial ruling. The company is hoping to overturn the decision on appeal.

A copy of motion for chapter 7 is available here (PDF) ®

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Batten down the hatches, Ubuntu 14.04 LTS due in TWO DAYS
Admins dab straining server brows in advance of Trusty Tahr's long-term support landing
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
Red Hat to ship RHEL 7 release candidate with a taste of container tech
Grab 'near-final' version of next Enterprise Linux next week
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.