SCO Group wins reversal of UNIX rights transfer ruling in Novell suit

By Caroline Salls

Pittsburgh, Aug. 24 - The SCO Group, Inc. said the U.S. Court of Appeals for the Tenth Circuit reversed district court rulings related to the transfer of UNIX copyrights by Novell, Inc., according to an 8-K filed Monday with the Securities and Exchange Commission.

Specifically, the Tenth Circuit Court reversed the Aug. 10, 2007 summary judgment under which the U.S. District Court for Utah ruled that Novell did not transfer some UNIX copyrights as part of a 1995 asset purchase agreement.

The circuit court also reversed the summary judgment that Novell had the right under the asset purchase agreement to waive on SCO's behalf or direct SCO to waive some claims it had filed against International Business Machines.

However, the Tenth Circuit Court affirmed the district court's judgment on the $2.55 million plus interest in royalties due Novell under a 2003 Sun-SCO agreement.

The circuit court also remanded the case back to the district court for trial.

SCO, based in Lindon, Utah, develops UNIX software technology for distributed, embedded and network-based systems. The company filed for bankruptcy on Sept. 14, 2007 in the U.S Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 07-11337.

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