SCO Group files for bankruptcy

The SCO Group Inc., licenser of the Unix operating system, filed for bankruptcy protection Friday, drained by unsuccessfully filing lawsuits claiming its software code was misappropriated by developers of the open-source Linux operating system. The Lindon, Utah, company said it is seeking protection from creditors under Chapter 11 as it continues to license and improve Unix for corporate servers. "We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their critical business operations," Darl McBride, president and chief executive, said in a statement Friday.

McBride has blamed competition from Linux for operating losses and the ongoing slide in company revenues. The company said its operating loss in the quarter ending April 30 was $1.1 million. A year earlier, it lost $3.9 million. In August, U.S. District Court Dale Kimball ruled that Novell Inc., not SCO, owns the copyrights covering the Unix operating system. SCO licenses the Unix software for corporate servers. The case could leave SCO with a bigger liability: Kimball said SCO may owe Novell software royalties. "They were going to owe Novell a ton of money that they probably didn't have," said Rob Enderle, an industry analyst in San Jose, Calif. "They had been taking a major hit from legal fees and were burning through cash at a high rate. I don't think this is a big surprise."

View: Full Story
News source: Mercury News

Report a problem with article
Previous Story

NASA studies recycling astronaut waste water

Next Story

Google, at age 10, is the official heart of the Internet

23 Comments

Commenting is disabled on this article.

Well, this has been a long time coming. I suspect that there are probably only 2 employees left.... McBride and his virtual, automated secretary

They should have no trouble getting new ones if they are good at what they do. Maybe they can actually go back to writing software, instead of spending their days going through the Linux source code looking for something to sue over.

Izlude said,
HOLY CRAP LOUIS!!! SCO??? Who will "KNIGHT" Solaris' future products now?

Sun does; Sun owns it; they didn't licence it, they paid a bootload of money years ago for a 'do what ever you want with it' licence.

Yay, Caldera is cratering. Maybe they can sell off the SCO name to someone who actually can uphold it. Once again proof that you should not trust companies that buy the rights to use a name they did not originate. Caldera != Santa Cruz Operation. Cingular != New ATT, just the same old ATT in disguise.

Hak Foo said,
I thought Caldera merged with SCO at some point, then changed the name.

Caldera bought SCO; Caldera failed to make money so a new CEO comes along and renames it SCO - he appears on the stage in a leather jacket and harley trying to claim that a name change can create a comeback.

Couldn't have happened to a better group of guys :P

Although it surprises me that their board of directors did not toss out McBride a long time ago.

You know what...this has been a really crappy week for me. This might have been the whole karma balancing thing with the yin and the yang and whatnot, lol.

Seriously though, this made me feel a whole lot better

WOOT! This is the best news I've heard in a long time. Now this is a story all Linux, Windows, and Apple fanboys can get behind. Darl has been the poster child for all frivolous lawsuits around patents, copyright, and IP. Maybe the rest of the greedy ******* will finally get the message and stop these asinine lawsuits we see spring up on an almost daily basis.

May a lifetime of embarrassment and humiliation follow you oh great Darl McBride! :redface:

It may take awhile but what goes around comes around...

NTP and EOLAS, you are next!