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SCO vs. Linux: New investor rescues SCO from bankruptcy
H Online ^ | 16 June 2009 | Staff?

Posted on 06/16/2009 10:33:50 AM PDT by ShadowAce

In yet another bizarre twist in the interminable legal dispute over source code allegedly illegally copied from UNIX System V into Linux, the SCO Group, which claims ownership of the disputed code, has secured a last-gasp reprieve from the threat of liquidation. Immediately before the crucial liquidation hearing in the bankruptcy court, SCO CEO Darl McBride signed an agreement with a company by the name of Gulf Capital Partners, backed by well-known investor Stephen Norris. Caught out by the surprise development, all parties have agreed to postpone the liquidation hearing until the 16th or the 27th of July.

According to a report by the Salt Lake Tribune on the hearing, Gulf Capital is to invest in the SCO Group with the aim of meeting all the company's obligations to its creditors. The company will then continue its litigation business against IBM and others under Darl McBride, as previously announced by Stephen Norris back in early 2008. The majority of SCO's 62 employees will continue selling SCO software, but under a new company headed by SCO president Jeff Hunsaker.

According to eye witness reports posted on Groklaw, SCO CEO Darl McBride turned up late for the hearing, where the main item on the agenda was the immediate Chapter 7 liquidation of SCO. He presented the agreement with Gulf Capital Partners, with the ink still wet, and stressed that SCO would receive new money to enable it to pay off all its debts. The largest creditor is Novell, with which SCO remains locked in dispute over the copyright to UNIX. Lawyers from Novell and IBM, which is also still in dispute with SCO over alleged pilfering of source code, requested a postponement in order to study the agreement. They were joined by the US Trustee representing the remaining creditors. The judge scheduled a new hearing for 17th and 27th July, but criticised the behaviour of SCO and its lawyers for presenting the critical agreement at the last minute.


TOPICS: Business/Economy; Technical
KEYWORDS: linux; sco

1 posted on 06/16/2009 10:33:50 AM PDT by ShadowAce
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To: rdb3; Calvinist_Dark_Lord; GodGunsandGuts; CyberCowboy777; Salo; Bobsat; JosephW; ...

2 posted on 06/16/2009 10:34:12 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: ShadowAce

When the world ends, all that will be left are roaches, re-enactors and SCO lawyers.


3 posted on 06/16/2009 10:37:25 AM PDT by Salo
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To: ShadowAce

The new CEO must believe his lawyers can prevail;it would be a shame if he’s correct.The DMCA(or was it DCMA) was another example of bad,monopoly promoting legislative vote buying.


4 posted on 06/16/2009 10:40:09 AM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a credit card?)
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To: ShadowAce
Thank God.

I was afraid we wouldn't have Darl McBride to kick around any more.

5 posted on 06/16/2009 10:40:27 AM PDT by E. Pluribus Unum (Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: ShadowAce

Microsoft has learned new lessons well from the federal Auto Task Force.


6 posted on 06/16/2009 10:41:26 AM PDT by vbmoneyspender
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To: E. Pluribus Unum

LOL!


7 posted on 06/16/2009 10:43:31 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: ShadowAce

SCOx —> M$’s zombie?


8 posted on 06/16/2009 10:43:52 AM PDT by Paladin2 (Big Ears + Big Spending --> BigEarMarx, the man behind TOTUS)
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To: Paladin2

The SCO That Wouldn’t Die!!!


9 posted on 06/16/2009 10:44:24 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: ShadowAce

Why? Why do people insist on throwing good money after bad when all it does is perpetuate the existence of this virus? They’re going to lose their money and the world will continue to have to put up with Darl the Litigious Putz.


10 posted on 06/16/2009 10:45:48 AM PDT by Still Thinking (If ignorance is bliss, liberals must be ecstatic!)
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To: ShadowAce

And the litigation trolling continues...


11 posted on 06/16/2009 10:52:45 AM PDT by bamahead (Few men desire liberty; most men wish only for a just master. -- Sallust)
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To: Still Thinking

Because people are stupid. There’s a good reason the accepted average IQ is only 100.


12 posted on 06/16/2009 11:05:21 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: Still Thinking

Because it created Fear, Uncertainty and Doubt about Linux as a legally viable alternative to Windows. SCO is Microsoft’s stalking horse, which they are using to try to slow/stop the adoption of Linux in the vertical app and back office markets.

The irony is, of course, that this move will drive more people to Apple, who SCO can’t sue for “UNIX infringement” - they hold not one but two licenses in perpetuity to BSD that long predate the SCO licenses.


13 posted on 06/16/2009 11:07:25 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr; ShadowAce

I realize that in the rational portion of my mind. The “Whyyyyyyyyyyyyyy?” is more out of frustration than a lack of understanding whose interests are served here. OTOH it keeps Darl and crew from looking for jobs with real companies, which they might get and then turn the host organisms into something like the evil SCO, so maybe it’s for the best after all.


14 posted on 06/16/2009 11:21:52 AM PDT by Still Thinking (If ignorance is bliss, liberals must be ecstatic!)
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To: ShadowAce

SCO is magic at extending court cases. I almost welcome this though. Once SCO gets out from under IBM and Novell, assuming there is anything left, they still have Red Hat’s suit waiting to go forward. Red Hat has been denied justice for almost six years, a travesty. Autozone is also sitting under this cloud.


15 posted on 06/16/2009 11:41:21 AM PDT by antiRepublicrat
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To: hoosierham

Microsoft (the real backer of all this) doesn’t care if they win or lose so long as they drag this out as long as possible. MS needs time to improve their offerings or (more likely) run ad campaigns to demonize the “legally troubled Linux” wherein they imply that running Linux will get you sued.


16 posted on 06/16/2009 11:57:40 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: ShadowAce
New investor rescues SCO from bankruptcy

It took Microsoft this long to set up another sock puppet?

17 posted on 06/16/2009 12:17:22 PM PDT by steve-b (Intelligent design is to evolutionary biology what socialism is to free-market economics.)
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To: ShadowAce

Actually, I think 100 is the DEFINITION of the average IQ. Your point stands however.


18 posted on 06/16/2009 3:40:44 PM PDT by Still Thinking (If ignorance is bliss, liberals must be ecstatic!)
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To: Still Thinking
If ignorance is bliss, liberals must be ecstatic!

The liberal I see are angry control freaks;I wonder if rather than being ignorant ,they are in denial of what their intellect keeps telling them about the obvious failures of modern liberalism?

19 posted on 06/17/2009 6:44:39 AM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a credit card?)
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