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SCO declares Chapter 11 bankruptcy after UNIX patent suits fall flat

electronista.com — Who'd have thought -- apparently you *can't* sue your way back to profitability instead of developing better products. SCO Group has learned this the hard way by filing for Chapter 11 bankruptcy after losing to Novell in a lawsuit where SCO claimed Novell's Linux "stole" SCO UNIX code.

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  • p0und, on 10/10/2007, -0/+82Finally!
    • Spr0k3t, on 10/10/2007, -4/+8It's not over yet. Still a long fight ahead of us.
      • zybch, on 10/10/2007, -32/+4'us'? Why the ***** do you open source fools have to personalize everything?? You're no better than the appletards!
        • Atomic1fire, on 10/10/2007, -3/+7and the windopes
          and the bsdorks
        • nick111, on 10/10/2007, -0/+11Because Open Source is something that we participate in as opposed to merely buying. It's a little bit different from being a product fanboy.
        • Fartag, on 10/10/2007, -0/+4Through open source any contributor's efforts are multiplied by every adopter of their contribution. That's a tremendous amount of power for an individual to wield. Anybody with that much power over a domain (that is, _all_ of us) certainly has the right to personalize it, to protect it, to promote it and help guide it. The open source amoeba is not phased by meaningless words of detraction, and there's no room to stand aside either. Prepare to be absorbed either way.
        • Ogopogo, on 10/10/2007, -1/+2Windopes, BSDorks, OpenSorcerers, AppleTards .. who knew?
  • d4rkAngel, on 10/10/2007, -23/+5Buried because the suit wasn't about patents, come on guys with groklaw out there there's no excuse for such basic errors.
    • bromac, on 10/10/2007, -1/+2I don't need to make excuses. That's what lawyers are for.
    • concertina, on 10/10/2007, -0/+4Given that tSCOg themselves couldn't decide on what type of intellectual property was being violated each time they appeared in court, let alone what actual violations were occurring, I think we can forgive the submitters' confusion ...
  • otakushark, on 10/10/2007, -0/+81Awww... Poor SCO fall down go boom.
  • iFungus, on 10/10/2007, -3/+47Sorry, have to say this
    Owned
  • treed, on 10/10/2007, -3/+7It's still not chapter 7.

    I wonder if K-Mart is still in Chapter 11.
    • geminitojanus, on 10/10/2007, -0/+8Yeah, well, there's no hope for them coming out of this blackhole, they're going to be completely liquidated as soon as the Novell and upcoming IBM counterclaim suits are over. The best part about this their delisting from Nasdaq, poor SCOX holders.
      • msgyrd, on 10/10/2007, -1/+7Poor SCOX holders? Anyone who is still an investor in SCO is ***** retarded. Everyone saw this coming two years ago and should have bailed out then. If you don't take any interest in the companies you invest in, you deserve to get burned.
        • geminitojanus, on 10/10/2007, -0/+1[/sarcasm]

          What a poor world it is...
  • totorototoro, on 10/10/2007, -0/+10Their main creditors are Amici, a document management firm (all that filing I guess :p ), and Microsoft?
    • DirtySnachez, on 10/10/2007, -0/+1They are *seriously* turning the company into a Vista and MS OEM dealer. not in the analogy way, but actually sales-wise.

      read up on slashdot
  • asaone, on 10/10/2007, -1/+18could not happen to a better company, man I got this fat lady singing in my ear,lol
  • saynt, on 10/10/2007, -0/+31I knew something was up when I got SCO stock in my bag 'o crap...
    • IEatHamburgers, on 10/10/2007, -1/+4Ironic that, in a "bag 'o crap," you would get something only suitable for toilet paper.
  • IEatHamburgers, on 10/10/2007, -0/+27Ding dong, the witch is dead
    • geekmansworld, on 10/10/2007, -0/+10Which old witch?
    • mooninite, on 10/10/2007, -0/+11The wicked witch.
    • tech42er, on 10/10/2007, -0/+3Dong dong, the wicked witch is dead!
      • potp, on 10/10/2007, -0/+1Ding ding dong the witch is gone. ding da ding ding dong the witch is gone.
  • geekmansworld, on 10/10/2007, -0/+38Nana na naa... nana na naa... hey, hey, hey... goodbye!
  • Socolco, on 10/10/2007, -0/+21When your business model is suing people it can't be good.

    HAHAHABWAAHHHAHHHAAA!
    • Chalax, on 10/10/2007, -0/+2So how long till the RIAA go under then?
  • lioneljaffry, on 10/10/2007, -1/+11"It's only a flesh wound."
  • doctor49152, on 10/10/2007, -2/+13every one all together now... 1...2...3.... and WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!!!
  • Tarnum, on 10/10/2007, -0/+16I expected Microsoft to save them again. Well, I guess SCO outlived their userfullness.
    • bromac, on 10/10/2007, -2/+7They were useful?
      • MisteryMeat, on 10/10/2007, -0/+0Potentially useful in scaring everyone away from Linux.
    • thefinger, on 10/10/2007, -2/+1More than that!-- once Microsoft decides it has no further use for us, it'll be our turn. We rise in the morning, only at the whim and good humor of MS.

      On another sensible topic, I need someone to sudo apt-get me a beer. I'm out of money. :(
  • Division, on 10/10/2007, -1/+15Karma is a wonderful thing
  • XBMC, on 10/10/2007, -1/+3Was all their wrong doing worth it ?
  • ordminute, on 10/10/2007, -5/+3So long and thanks for all the (IP) fish.
  • adml_shake, on 10/10/2007, -1/+7And all around the world, geeks celebrated like the end of the star wars movies....
    • bromac, on 10/10/2007, -0/+6Yub yub.
    • BobbyMC, on 07/21/2008, -1/+1Yub nub can suck it. The special edition theme kicks its ass back to hell where its bitch of a momma sucks *****.

      Plus the line doesn't really make sense without all the statue toppling CGI people.
  • bromac, on 10/10/2007, -0/+2Does this mean they will get protection from Novell and their judgement?
    • maz2331, on 10/10/2007, -0/+0A breather, not a save. It gives them a 120-day window (roughly) where all other litigation is stayed...
    • einfeldt, on 10/10/2007, -0/+4I'm an attorney practicing consumer bankruptcy law in San Francisco, and while corporate bk and Chapter 11 in particular are quite different from consumer bk, I would think that certain of their debts are non-dischargeable. Fines, for example are often non-dischargeable, and to the extent that SCO abused the court system, it is likely that portions of Novell's claims might not be dischargeable in Chapter 11. But you have to look at each individual claim on a case-by-case basis, and it really depends on how badly IBM and Novell want to press the bk court to hold SCO's feet to the fire.
    • maz2331, on 10/10/2007, -0/+2Yeah, but SCO is using this as a delay tactic in the Novell case. It seems that this was filed exactly one business day before the start of the trial to determine the amount they are holding of Novell's money that needs to be forwarded. Actually, the whole thing REALLY is looking like a true and complete "bad faith" filing that runs a huge risk of sanction by the bankruptcy court, including a "dismissal with prejudice" with language barring them from ever attempting to discharge the debt in a later filing.
      Oh - did you see what they filed with the Novell court? It looks almost like a threat to go after Judge Kimball for contempt if the case isn't stayed in that court.
      Something tells me this is going to be VERY bad for SCO and their attorneys. It sure looks like they "jumped the shark" with this one.
  • GaiaAP, on 10/10/2007, -3/+3Wow, sometimes The System really does work. Great news!
  • Stemp, on 10/10/2007, -4/+8It's a sad new for the employees.
    Microsoft don't need SCO anymore for their FUD campaign, they have Novell and Xandros.
    Next victims ?
    • MacEnvy, on 10/10/2007, -0/+7Maybe their "employees" (lawyers) should have attempted some innovation rather than suing their way to failure on false pretenses.

      The only ones I feel bad for are their secretarial pool and janitorial staff. The rest of them deserve it.
    • concertina, on 10/10/2007, -0/+1Don't know that they have any employees of worth at this point, mostly just executives, lawyers, and sales / marketing drones ...
    • blackrich, on 10/10/2007, -0/+1Who the ***** would want to work there? Disgruntled Halliburton asshats?
  • lodleader, on 10/10/2007, -1/+36http://i26.photobucket.com/albums/c140/jedisentinal/simpsons_nelson_haha2.jpg
    Come on.. someone had to say it...
  • lodleader, on 10/10/2007, -15/+2http://i26.photobucket.com/albums/c140/jedisentinal/simpsons_nelson_haha2.jpg
    Someone had to say it :)
  • dvdrtrgn, on 10/10/2007, -0/+9Happy Happy Happy
  • magnusdopus, on 10/10/2007, -2/+8Hopefully they'll have an asset sale and Red Hat buys their IP. Otherwise if someone else gets it, this will happen again.
    • rnewson, on 10/10/2007, -0/+1What IP?
      • concertina, on 10/10/2007, -0/+1Unixware?
        • msgyrd, on 10/10/2007, -0/+2Which was already proven in court to be completely separate from Linux. If someone buys it and takes anyone to court for IP infringement, they'll be laughed out the door.
          • concertina, on 10/10/2007, -0/+1Erk. I seem to lack reading comprehension skills. You are correct, of course.

            Unixware IP is meaningless for an infringement suit. Besides, the lawsuits served their purposes and Microsoft has moved on to different strategies.
    • AeroGuy, on 10/10/2007, -0/+0They don't have any (non-GPL'd) IP in Linux. In fact, they seem to have very little IP period. Novell seems to have some, though. :-)
  • Jugalator, on 10/10/2007, -2/+4Nooo, please come back, SCO! You were putting on such a good show. :-(
  • wbeavis, on 10/10/2007, -1/+2Analysis was wrong, IMO. SCO's plan was to scare/trick IBM into a buyout in order to sweep the issue under the rug. I don't think Darl anticipated the thing to actually go to court. Pump and Dump, baby.
    Actually, only the Novell thing is done, I think the IBM case is still in process.
    • geminitojanus, on 10/10/2007, -0/+3I'd be willing to bet more was made on selling SCOX short than was ever made in the entire recent (10 years lets say) history of the corporation.
    • einfeldt, on 10/10/2007, -0/+1As to the IBM case, a bk filing automatically stays (delays) all other cases pertaining to the debtor (SCO). So the IBM case will not go forward until IBM's counter-claims against SCO are addressed in the BK court.
  • flogistan, on 10/10/2007, -1/+9jesus christ finally! Someone get a stake and pound it through their heart.
    • maz2331, on 10/10/2007, -1/+0Better idea... use a STEAK (not even frozen) and pound THAT through their heart.
  • jejones, on 10/10/2007, -0/+7Darn it. Would that it were Chapter 7; with Chapter 11, they might actually survive.
    • geminitojanus, on 10/10/2007, -0/+6With two enormous lawsuits on their back? Don't count on it. Novell will take them to the cleaners and if there's anything left on the carcass, IBM will sue them for the hell of it.
    • vegascoop, on 10/10/2007, -0/+1Chapter 11 just means the executives of SCO can milk the company a little more. In Chapter 11, the executives still have some control as "debtor's in possession" of the company's assets. If they immediately filed in chapter 7, the court would control all of the assets through a trustee.
  • Leo21k, on 10/10/2007, -4/+2I wish i was a geek so i could be happy with you guys. :*(
  • EuroMarkus, on 10/10/2007, -0/+7Hope DARL never works again!!!!!
    • geminitojanus, on 10/10/2007, -0/+4Like he ever will need to, I'm sure he already cut his losses on SCO ages ago. Gotta be sorry for any sap working for them who left any money in SCO stock though.
    • AeroGuy, on 10/10/2007, -1/+0I'm kinda conflicted on that. How would you feel if he did, but it was as a cook for the other inmates? Nah. Actually, seeing this blow up in his face might be pretty good justice already. I don't think he's taking it very well. I (am trying to) wish him well.
  • dbase, on 10/10/2007, -0/+6PWNZORED

    ***** SCO and their greediness. All I can say is good riddance.
  • an0nymous, on 10/10/2007, -1/+5Don't forget: SCO was once a great company. Seriously.
    It's been a long while but it's worth remembering.
    • dopplerdog, on 10/10/2007, -0/+4Great company? Did you ever have to develop under SCO UNIX? I unfortunately had to - and I don't EVER want to go there again.
      • netant, on 10/10/2007, -0/+4Back in the pre386 days, I actually had a working copy of SCO Xenix for the IBM AT. Worked better than DOS, that's for sure.
        • belman420, on 10/10/2007, -0/+0I replaced one of those machines in 1999 with a Unixware machine. The only noticeable difference between the two pieces of software were upgraded print drivers.

          SCO shot themselves in the foot and tried to make someone else cry for it. Good riddance.
  • absurdist, on 10/10/2007, -0/+7Did anyone here notice that Maureen O'Gara (G2 Computer Intelligence) was listed as one of SCO's creditors? (As in they owe her money?)

    I wonder what names Laura Didio and Rob Enderle were working under...
    • maz2331, on 10/10/2007, -0/+0ORLY? Hmmmm..... wonder what else may be found after the books are cracked open...
  • geekee, on 10/10/2007, -0/+12The SCO lawyers still won.

    Plan A: Sue Linux users and providers for a lot of license money

    If Plan A fails:
    Plan B: Keep billing SCO for your hours until they have no more money left.
  • Hydraulix, on 10/10/2007, -0/+14Finally! Next up on the list, RIAA.
  • sljepi, on 10/10/2007, -0/+2Everyone rejoice :)
  • bobbknight, on 10/10/2007, -0/+7Next up investors sue Darrel McBride.
    • vvaduva, on 10/10/2007, -0/+1Doubt it would hold up - none of the "investors" were upset when SCO was hammering away at cases in court...they could have verbalized their concerns back then. It's highly doubtful they can come back now and ask for retribution only when the aggressive tactics failed.
  • jonathan95060, on 10/10/2007, -0/+3Following SCO's long tradition of dragging things out as long as possible, this bankruptcy is declared 1 (working) day before the trial to determine how much money SCO owes Novell was to begin. Thanks to the bankruptcy this not at all good for SCO trial is postponed.
  • aroedl, on 10/10/2007, -0/+7Excerpt from the list of creditors:
    The Honorable Attorney General of the U.S. Alberto Gonzales
    Bajio Grill
    Cabo Grill
    California Pizza Kitchen
    Chili's
    China Lily
    Costa Vida
    Einstein Brothers
    Fazoli's
    Gandolfo's
    Happy Sumo
    Honeybaked Ham
    Jasons Deli
    Macaroni Grill
    Nicolitalia Pizzaria
    New York Burrito
    Panda Express
    Shirley's Bakery
    Smoke House Pizza BBQ
    Taste of Punjab
    http://groklaw.net/pdf/SCO_CH11-1-E.pdf
    • HappyScrappy, on 10/10/2007, -0/+1Weird.
    • fluxion, on 10/10/2007, -0/+1Panda Express is awesome
    • ChayD, on 10/10/2007, -0/+1Well, if we can't win this case, we might as well order in and run up a few bills :)
    • olenick, on 10/10/2007, -0/+1There's nothing honorable about Alberto Gonzales. Maybe he'll become a SCO executive: seems like a job that'd suit him just fine.
  • nightstar, on 10/10/2007, -0/+4Be nice if this scares the rest of the empty lawsuit drivien companies... Well it could happen!
  • Tetraca, on 10/10/2007, -3/+3There is a god.
  • nightstar, on 10/10/2007, -1/+2PS: K-Mart is out of Chapter 11 and bought out Sears a few years ago... O_O
  • jellygraph, on 10/10/2007, -1/+3Worry not, all the directors will surely get a nice fat bonus, leave and find work straight away in other high placed positions at other companies, leaving all the employees jobless and having to pay their mortgages.

    Accountability. ya, whatever!
  • boot20, on 10/10/2007, -1/+3So I hope this means SCOs douchbaggery is at an end.
  • bhalash, on 10/10/2007, -1/+2Ding dong the witch is dead?
    • CarzorStelatis, on 10/10/2007, -0/+1sp? I'm sure there should be at one letter 'b' in there :P
  • harlequinade, on 10/10/2007, -0/+4This calls for a block party. I'm talking pizza, beer [free, natch!] ice cream, and a cake larger than Kirstie Alley's butt! All accompanied by the delicate thunder of 200 stereo systems -- All of them Amarok!
  • snotrokit, on 10/10/2007, -0/+3woot. been a long time coming. I can not possilbly express the joy that seeing this headline today. absolutely made my month.

    Hey Darl.... Karmas a real bitch ain't it.
  • databoy, on 10/10/2007, -1/+2Lawyers are not as smart as they are made out to be. A technical person who knows his job will bring a lawyer to his knees when it comes to a technical argument. The only people who loose are the shareholders. If there was propriety code in Linux, it is a simple matter of re-writing the code. How much public domain code is in Unix. The Microsoft FUD is the same. Microsoft would have to prove patent infringement to win the case. To prove patent infringement your have to disclose your source code and compare it to the Linux source code. Once the source code is declared it is in the public domain for everyone to see. A smart programmer will be able to find an alternative way of doing the same job. Microsoft signing up companies is about doing long term business. Microsoft will not die. The user base is too big and home users will not migrate because of a cute penguin. Large corporations are different because they use mainframes and having a common operating language across their business operations allows for greater flexibly to the corporate operating structure. ie designing a vehicle on a desktop and outputting the design out to the robot arms to manufacture a prototype; house construction, designing a house, view the 3D model, sending the bill of quantities directly to the saw mill for packaging.
  • HappyScrappy, on 10/10/2007, -0/+1great.
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