When Lawyer's Attack

Some history first. SCO claims they owned the UNIX copyright and sued everybody including IBM and Novell. Novell says, no, you don't own it, we do, and we gave IBM the right to use it. [Insert long legal case here]. Novell wins, SCO loses. SCO files for Chapter 11 (reorg) bankruptcy, effectively telling Novell {bleep} off. Novell's lawyer's sharpen their word processors and respond.

Groklaw has the best short summary so I'll quote them:

Novell tells the court in its motion to compel that it wants all its future SVRX [Unix Royalty] money as SCO collects it, without it touching the estate. Otherwise, Novell says, SCO may "improperly use Novell's property to fund SCO's bankruptcy" -- and all I can say to that is Amen -- and Novell says in that case, it will become a "forced lender of new high-risk loans to the estate."

and

Novell does have a way with words. Actually, it goes on, it would "turn Novell's property into an involuntary gift to the estate and its creditors. Nothing in the APA or Bankruptcy Code sanctions SCO's use of Novell's property this way."

"Improperly use Novell's property to fund SCO's bankruptcy" and "Become a "forced lender" of new high-risk loans to the estate." are beautifully phrased. Someone should give the attorney (or paralegal probably) who wrote that a gold star.

Novell's point is that since of much of SCO business model was built by infringing on Novell's copyright, they can't continue the current business model. Novell's claim should come first before SCO tries to reorganize.

Really, SCO's CEO Darl McBride should take SCO through chapter 7, disband, weather the shareholder suits and write a best seller. "How not to every run a business."