Darl McBride. It's the guy everybody hates. Well, he is no longer in charge of SCO, the UNIX vendor who relentlessly litigated against Linux vendors: he has been fired as part of the Chapter 11 restructuring plans for the company. Sadly, the litigation does not end with him, as SCO's new leadership has said in a statement they will continue the litigation.
The SCO Group plans to emerge from Chapter 11 soon and revealed that not only will it modify its business strategy towards mobile products, it will also replace chief executive officer Darl McBride and pick up the Linux and Unix license lawsuits against IBM and Novell. The new owner of The SCO Group, investment firm Stephen Norris Capital Partners, is planning to open a new chapter in SCO’s Linux lawsuit history, which started back in March of 2003 when the company filed a USD 1 billion suit against IBM. As part of its plan organization, SCO announced that it will appeal the proceedings, which will begin with an appeal against a key decision in favor of Novell from August 10, 2007, which also impacts the lawsuit against IBM.
Having almost disappeared completely late last year, SCO says it has been resuscitated by a new financing plan. Under the terms of the deal, Stephen Norris Capital Partners and "its partners from the Middle East" will supply up to $100 million, enabling SCO to reorganize and launch a new series of products. SNCP will gain a controlling interest in the company, and take it private, allowing it to slip out of Chapter 11 bankruptcy protection. Update: As part of the reorganisation, Darl McBride will be let go. Buried in the proposed MOU (Memorandum of Understanding) between Unix vendor and Linux litigator SCO and SNCP is the note that "upon the effective date of the Proposed Plan of Reorganization, the existing CEO of the Company, Darl McBride, will resign immediately."
On April 29, SCO will finally have its day in court, but not exactly in the way the Unix and Linux litigation company had planned. If things had gone the way SCO wanted, it would be facing IBM to see how much money it would get for IBM using Unix code in Linux. Instead of that fantasy coming true, SCO will be trying to hang on to what's left of its assets from Novell.
The Nasdaq market has delisted The SCO Group, the Linux-seller-turned-Linux-litigant now in Chapter 11 bankruptcy protection. The 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.
In a statement published this week, SCO Group blames the success of Linux and 'negative publicity', as causes for its decline - the company may need to wind up its operations after its copyright case against Novell collapsed, prompting it to file for bankruptcy. My take: In Dutch, we have a saying: hij die kaatst, kan de bal verwachten.
Yahoo reports that SCO has filed for bankruptcy in order to protect assets. "The SCO Group today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. 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." Groklaw has a story on it, too.
"Darl McBride has the unenviable reputation as the man who tried to milk Linux. As CEO and president of SCO Group, McBride has spent the last few years trying to collect billions in licensing fees from companies using the Linux operating system, earning the wrath of the world's open-source geeks. For scores of programmers, here was a lawyered-up copyright troll trying to shake down Linux - the free, open-source operating system built by idealistic hackers working for the common good. But McBride insists he's just misunderstood."
SCO has published a statement after the court ruling in their case against Novell: "The company is obviously disappointed with the ruling issued last Friday. However, the court clearly determined that SCO owns the copyrights to the technology developed or derived by SCO after Novell transferred the assets to SCO in 1995." And at the end: "Although the district judge ruled in Novell's favor on important issues, the case has not yet been fully vetted by the legal system and we will continue to explore our options with respect to how we move forward from here."
Microsoft has denied allegations that it offered to guarantee an investment made in The SCO Group, a software company embroiled in a long-standing intellectual property dispute with IBM. "Microsoft has no financial relationship with BayStar and never agreed to guarantee any of BayStar's USD 50 million investment in SCO," a Microsoft spokesperson said in a statement on Monday.
A declaration by SCO's backer, BayStar has revealed that the software Giant Microsoft had more links to the anti-Linux bad-boy. The declaration made by from BayStar general partner Larry Goldfarb has turned up as part of IBM's evidence to the court. Goldfarb says that Baystar had been chucking USD 50 million at SCO despite concerns that it had a high cash burn rate. He also claims that former Microsoft senior VP for corporate development and strategy Richard Emerson discussed "a variety of investment structures wherein Microsoft would 'backstop', or guarantee in some way, BayStar's investment". Thanks to The Inq for the summary.
Novell appears to be attempting to cut off SCO's lifeline to its cash reserves. By not focusing on the arguments over who owns what in Unix but instead hammering on the far more simple matter of SCO not living up to its business contract, Novell hopes to put a quick end to SCO and its seemingly endless Linux litigation.
The SCO Group's revenue continued to fall in the fourth quarter and during fiscal 2005, as Unix sales slumped. Management, however, tried to put a positive spin on the results, released after Thursday's market close, saying that cost-cutting measures have made SCO's Unix business profitable again and adding that plenty of cash remains to continue a legal battle against IBM.
SCO, recently best known for its Linux litigation rather than its Unix operating systems, announced that it was releasing an advanced networking platform to provide feature-rich consumer and business digital services for smart phones and other intelligent mobile devices.
SCO, the company best known for Linux litigation and its Unix operating systems, reported results for its fiscal third quarter ended July 31, 2005, on Wednesday. The news wasn't good.
SCO and MySQL announced Friday that the two would be working together to jointly deliver the commercial version of the MySQL database to SCO's latest Unix release, OpenServer 6. OpenServer 6 already includes the Apache Web server, the Apache Tomcat JSP (Java Server Pages) server, the PostgreSQL DBMS and the MySQL Community Edition.
The SCO Group's OpenServer 6 inherits a new kernel from its UnixWare sibling that significantly boosts the product's scalability. Although SCO seems like an unlikely outlet for open-source software, the company has extended OpenServer with updated versions of Samba, Perl, PHP and other key components, and it has given this operating system a more modern interface option.
SCO has denied that the recent leaked memo has undermined their case against IBM that Linux contains code from SCO UNIX,
The SCO Group has released a new version of their SCO OpenServer product, version 6. It's based on the same core as Unixware, and can run software for both systems.
The SCO Group's revenue continued to decline in its most recent quarter, but the company that launched a legal attack on Linux reported a narrower net loss compared with the year earlier.