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Novell to SCO - Pay Up
gosherm writes with word that, now that the dust is beginning to settle on the long-running SCO case, Novell wants to get paid. Now. They're requesting that the customary stay on SCO's finances (as a result of their bankruptcy) be lifted so that Novell can begin recouping some of its losses from the protracted legal battle. "'We need to adjudicate if this is money owed to Novell or if it is Novell's property,' said Bruce Lowry, spokesman for Novell. That could determine how quickly Novell can recover those funds. And time is of the essence since there's a possibility SCO 'may run low or even completely out of cash during the process of trying to reorganize,' Novell said in court documents filed Thursday. Novell is also trying to protect royalties SCO collects from Unix and Unixware software licensees and remits annually to the software developer. SCO is required to continue to remit between $500,000 and $800,000 annually to Novell -- the next payment is due Nov. 14. SCO remitted $696,413 to Novell between the third quarter of 2006 and the second quarter of this year."
SCO collects fees for Novell. There is no disagreement about that. What Novell is asking for is that those fees be paid through to Novell. This has nothing to do with the major claim, tens of millions, about the Microsoft and Sun licenses. This is just about the routine license fees that continue to roll in.
AllParadox described it best. He likened SCO to a store clerk. The money the clerk collects belongs to the store owner. The clerk has no claim to it at all. If the clerk goes bankrupt, the trustee can't claim that it is part of the bankruptcy estate.
The reason that SCO jumped (or tried to jump, it hasn't been granted yet.) into chapter 11 was that the Utah court was about to apportion the amount of money it had to pay Novell for the Microsoft and Sun licenses. Because of that, Novell has warned that it is going to file something claiming that SCO acted in bad faith. My WAG is that the bankruptcy judge will allow the Utah case to go forward so as to determine the amount of money SCO owes Novell. Since SCO has little chance of being a successful business, I am also guessing that they will be put in chapter 7. In other words, they won't be re-organizing, they will be liquidating.
Emporer Ballmertine to Novell: "Good! Use your aggressive feelings, boy! Let the hate flow through you"
i don't think your looking at this from the right angle.
just for a second, lets assume that novell isn't a linux distro company, and that they don't want to make it up to the linux community out there for the microsoft deal, and lets forget that sco is the personification of evil.
they have a company that they've sued and won.
whatever the reasons:
1) sco owes novell money.
2) sco is going broke.
3) novel wants their money before sco goes down.
id imagine the phb's in novell are looking at the situation exactly this way.
its cool that they come out to be the linux advocates, and taking down the bad guy - free good publicity and so on.
but that's just a side-effect, they would go after sco regardless of the circumstances.
aside from that - i wouldnt consider novell to be the new 'stewards' of linux.
i don't have all the data - so this is just my impression, but....
we have all seen IBM fight the good fight with sco for more than just a few months... i mean - its been years, and lets face it - it would have been cheaper for them to just buy sco, instead of fighting them.
novell noticed whats going on with this linux thing, and they manage to make a profit while creating contributing back to the linux community.
but IBM is investing a lot more then their getting back (i may be wrong here, as we(i) don't know whats in their agenda for the years to come - this could be one of those investments where you loose money for 10 years, and start making money in 20 - IBM is a company that can afford a business plan like this), and novell is just doing business like everyone else (it may sound cold, but there is no shame here - we all benefit from what they do, so cudos to them).
I believe his point is that there's is nothing wrong with McBride's statement. This is, of course, assuming that SCO did in fact truely believe that they owned what they claim to have owned and that said intellectual property was indeed being infringed upon. Ultimately, the conclusion was that both were false and that they knew it. If anything, it is the latter that they should be villified for. One should not be attacked for simply protecting what one owns as long as one does so in an honest manner. Once again, though, it appears that SCO wasn't exactly being honest. . .
Actually, that's the last thing we want. If SCO goes Chaper 7 (gets dismantled) before Novell gets a ruling against it, then they've won a partial victory.
Right now, SCO hasn't yet been defeated completely in the courts. They're mortally wounded but still standing. SCO needs to be an instance where they're made brutal example of. The result can't be "SCO ran out of cash arguing its claims", but rather "SCO's claims were baseless and found so by the courts". Given the power of the spinmeisters, the issue isn't resolved until the Novell case and ideally the IBM case are decided against SCO.
Then there's the SCO execs themselves. Personally, I think that they need to be brought to justice for their perversion and mockery of the US judicial system, and also for their stock antics. People like Darl McBride have gotten rich off of this whole thing. I want their butts behind bars, or at least under suit for malpractice or whatever. If they can walk out profiting from riding SCO into the ground and attacking Linux, it'll just encourage other trolls.
SCO is using this bankruptcy time to spend their money in a way that either enriches them or enriches their partners. They're trying to steer their allies onto the bankruptcy committee, and giving huge bonuses to their execs, and hiring temps at exorbitant fees.
Finally, if they run out of money, they can't pay Novell and IBM anything. They owe Novell millions of dollars, with only the amount now in dispute. Essentially, this is Novell's money they're burning through, according to the Novell v. SCO judge. They probably owe IBM some money too on the counterclaims (if they ever get to them).