Feeds

SCO threatened with Chapter 7 destruction

'No reasonable chance of rehabilitation'

Top three mobile application threats

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) ®

Top three mobile application threats

More from The Register

next story
Ubuntu 14.04 LTS: Great changes, but sssh don't mention the...
Why HELLO Amazon! You weren't here last time
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Got Windows 8.1 Update yet? Get ready for YET ANOTHER ONE – rumor
Leaker claims big release due this fall as Microsoft herds us into the CLOUD
Next Windows obsolescence panic is 450 days from … NOW!
The clock is ticking louder for Windows Server 2003 R2 users
OpenBSD founder wants to bin buggy OpenSSL library, launches fork
One Heartbleed vuln was too many for Theo de Raadt
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
Red Hat to ship RHEL 7 release candidate with a taste of container tech
Grab 'near-final' version of next Enterprise Linux next week
Apple inaugurates free OS X beta program for world+dog
Prerelease software now open to anyone, not just developers – as long as you keep quiet
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
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
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.
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.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.