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Welcome to virtuallinux.org. You are currently reading the article "Novell Says In Court Filing That SCO Owes It Millions". All articles on virtuallinux.org pertain to the ongoing assult on the worlds greatest Operating system. Continue on reading about "Novell Says In Court Filing That SCO Owes It Millions"
Novell Says In Court Filing That SCO Owes It Millions
Posted on Wednesday, January 10 2007 @ 10:31:40 EST by linuxwiz |
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Novell delivered a roundhouse punch to SCO in their dispute over who owns the copyright to Unix.
Novell filed court papers Monday saying SCO received nearly $26 million in Unix
System V license fees from Microsoft and Sun Microsystems. But,
contrary to its 1995 Asset Purchase Agreement with Novell, SCO has
failed to pass them on to Novell.
Novell says the agreement states it is entitled to 100% of the
fees, according to a motion for partial summary judgment or preliminary
injunction filed by Novell lawyers in the U.S. District Court in Salt
Lake City.
SCO is "hemorrhaging assets at an unsustainable rate," the motion
asserts. If SCO isn't forced to set aside the license fees now, Novell
may be irreparably harmed by never being able to recover them, the
motion asserts.
It's the latest round in the ongoing fight over Unix
copyrights. Novell in effect is asserting that SCO would be out of
funds if it weren't for its use of the license fees for its own
purposes. Instead of passing them along to Novell, it has used them to
file suits against IBM, Novell, and Red Hat in its bid to stay alive,
the Novell lawyers assert.
Even if the court doesn't grant Novell a preliminary
injunction, it should impose a constructive trust to hold any existing
or future Unix V fees because "SCO is on the verge of insolvency."
Instead of trying to resolve the issue of who owns what in Unix
copyrights, Novell is focusing instead on requiring SCO to live up to
an existing contract. If Novell prevails on some aspect of its motion,
SCO's ability to sustain its cases in court is likely to diminish or
disappear.
Novell isn't only asserting that the fees are owed but that SCO
refused to disclose their existence, despite repeated inquiries from
Novell, until the current court action forced it to.
"For SCO, bankruptcy is inevitable ... bankruptcy is imminent. Once
this bankruptcy occurs, Novell will lose all ability to collect its
judgment," Novell attorneys say in the motion.
They say the motion is timely because SCO refused to reveal its
Microsoft and Sun royalty agreements, despite inquiries from Novell
starting in 2003. "For almost three years, SCO hid these agreements. It
engaged in the "willful and malicious withholding of the relevant
agreements while it dissipated the trust funds," the motion says.
SCO spokesman Blake Stowell said Novell's assertions "jump to incorrect
conclusions." SCO will report its fourth-quarter and 2006 year-end
results Jan. 17, he said. He declined to comment further.
Source
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