The Nasdaq market has delisted The SCO Group, the Linux-seller-turned-Linux-litigant now in Chapter 11 bankruptcy protection.
The Lindon, Utah-based company's shares were taken off the Nasdaq because of the bankruptcy proceedings, the company said Thursday in a statement. The company had appealed Nasdaq's decision to do so but lost its appeal on December 21, the company said in a regulatory filing with the Securities and Exchange Commission.
The company filed for bankruptcy protection in the wake of years of steadily declining Unix revenue and a court ruling in August that crippled its legal argument that its proprietary Unix technology is used in open-source Linux. A court ruled Novell still holds the Unix copyrights.
In a move more likely to appeal to technology historians than coders, the Massachusetts Institute of Technology has published the source code of Multics (Multiplexed Information and Computing Service), a precursor to the Unix operating system begun as a research project at the university in 1965.
The code is hosted on MIT's Multics Web site. MIT, General Electric, and Bell Labs worked to commercialize it, but Bell--originator of the more influential and still widely used Unix operating system--dropped out in 1969. Honeywell took over GE's computer business, and Honeywell became Bull, which donated the source code at the site, MIT said.
News of the donation was posted Friday at the Multicians site. Bernard Nivelet, a retired Bull director for strategy, engineering, and sales, led the initiative to post the code.
MIT stopped researching Multics in the late 1970s, Bull stopped developing it in 1985, and the last Multics machine was shut down in 2000, MIT said.
Unless you have a Honeywell mainframe handy, it'll be hard to do anything useful with the code. Perhaps some enterprising programmer will write an emulator?
(Via OSNews.)
The SCO Group, working to emerge from Chapter 11 bankruptcy protection, hopes to sell its Unix assets to York Capital Management for up to $36 million, the company said this week in regulatory and bankruptcy court filings.
Through the deal, York would provide SCO with $10 million in cash; up to $10 million in credit to fund its Linux-related legal fight and to get 20 percent of revenue from that action; $10 million for a 20 percent stake in the company; and $6 million to license the Hipcheck products from SCO's Me mobile device software effort and to share revenue from that line, according to the U.S. Bankruptcy Court filing.
SCO, which is engaged in expensive, controversial but so far largely fruitless Linux-related lawsuits against Novell and IBM, urged the court to approve an accelerated bidding process for the assets. The auction would allow others to offer a higher price than York, but time is of the essence, the company argued in the bankruptcy court filing.
"Based on debtors' (SCO's) financial condition, but more importantly the skittishness of existing and potential customers" to engage in a business relationship with SCO, "the debtors must move quickly to realize the highest and best price for their assets," the filing said.
The SCO Group has been beleaguered by steadily dwindling revenues. It suffered a major legal setback in August when a court found that Novell retained the Unix copyrights SCO thought it bought. But it looks like the Lindon, Utah-based company plans to keep on fighting: the asset purchase agreement specifically excludes the suits against Novell and IBM from transfer.
Unix has had a long and winding history as assets have been sold from the original sponsor of the operating-system project, AT&T. The assets were sold to Novell, then to the Santa Cruz Operation, then to Linux seller Caldera International, which renamed itself The SCO Group after trying to remake its business on the SCO Unix products. It's a tortured issue trying to decipher exactly what intellectual property--patents, trademarks, copyrights and trade secrets--traveled to new ownership or remained with earlier owners.
An SCO representative didn't comment beyond the filing. York didn't immediately respond to a request for comment.
This posting has been updated with comment from legal foes, the Linux Foundation and The SCO Group as well as with SCO financial information.
Three and a half years after launching a high-profile legal attack on Linux, The SCO Group has filed for Chapter 11 bankruptcy protection.
The Lindon, Utah-based company long has maintained that it had enough money to fight its costly lawsuits against IBM, Novell, Red Hat (which sued SCO proactively), AutoZone and DaimlerChrysler. But on Friday, a month after losing on a crucial legal ruling, the company admitted a grimmer picture.
"The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders and employees," the company said in a statement. Added Chief Executive Darl McBride, "We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business-critical operations."
Chapter 11 protects a company's assets from creditors during a reorganization.
IBM didn't comment, but Novell said it is evaluating its options. "U.S. bankruptcy law automatically stays the court case. We're assessing our options for how to pursue our interests," Novell said. A court case was scheduled to begin Monday to determine how much SCO owed Novell as a result of last month's ruling, according to Groklaw, a site that's closely monitored the case.
All of SCO's court cases now are on hold, a company representative said.
SCO has a complicated history. It went public as Linux seller Caldera Systems, then acquired the Unix business from the Santa Cruz Operation and renamed itself The SCO Group. It then scrapped its Linux business and sued IBM and others, alleging that Big Blue violated its Unix contract by moving proprietary Unix technology into open-source Linux.However, the company's legal case was dealt a crushing blow in August, when the federal judge overseeing its case, Dale Kimball, concluded "that Novell is the owner of the Unix and UnixWare copyrights."
In the meantime, SCO has been trying to enliven its ever-shrinking business, selling its UnixWare software, and to expand into the mobile-device software market.
In June, SCO reported a loss of $1.1 million for the quarter ended April 30 on revenue of $6 million, a decline from $7.1 million in the year-earlier quarter. Legal costs that quarter totaled $1.1 million, a major decrease from $3.8 million the year before.
Jim Zemlin, executive director of the Linux Foundation, couldn't resist a dig at The SCO Group.
"If they had built their business on Linux instead of trying to attack it, they might be enjoying success like Red Hat instead of filing for bankruptcy protection," he said in a statement. "It's always unfortunate for customers when a company fails like this. But anyone could have seen this coming when they went down the misguided litigious route they did."
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