Feeds

SCO sale blocked by court

Trustee appointed to oversee management

Boost IT visibility and business value

A US judge has blocked SCO's attempt to sell off part of its business in order to fund its ongoing litigation, and appointed a Chapter 11 trustee to oversee the company's next moves.

SCO was hoping to sell off some of its assets, in order to fund its court battle against IBM and Novell for claimed Linux licenses. For its part, SCO said it was glad not to be pushed into Chapter 7 - full liquidation of the firm.

The trustee will take a detailed look at SCO's books and its various legal cases and decide if there is value in SCO continuing with them. The decision rather sidelines SCO's existing management.

SCO started its litigation in 2003 by claiming IBM had given its intellectual property away to Linux, a decision which has won it few friends in the open source world.

The judge said the trustee was needed because SCO's management had "bet the farm" on its varied lawsuits. Judge Kevin Gross said that if he had approved the sale SCO's sole business would be litigation. He said "A trustee will be in a better position to make that assessment without the personal and emotional investment of SCO's management,", according to The Salt Lake Tribune.

Support from Microsoft added to suspicions that the case was designed to put litigation-wary enterprises off using Linux.®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.