Dreaded SCO Group is back, with money to go after Linux users

Matt Marshall — Fri, 15 Feb 2008 15:49:49 -0500

Amazingly, the obscure Utah-based SCO Group that sparked outrage four years ago when it began suing Linux users, is back.

The company, which sued Novell, IBM and other Linux users for infringing on its ownership rights of the Unix Operating System, has raised $100 million from private equity investors (see its announcement), which it will use to exit bankruptcy.
SCO filed for bankruptcy protection in September, after a court ruled in August that Novell controlled the rights to the Unix Operating system — which SCO had hoped to sell to pay off creditors.
The funding came from the private equity firm Stephen Norris Capital Partners and partners in the Middle East. The firm and its partners will have a controlling interest in SCO.

This gives SCO resources to continue its court battle with Novell over royalties from the Unix server operating system.

Silicon Valley lawyer Mark Radcliffe of DLA Piper calls the investment “puzzling,” explaining why in his post here, and said that in his 25 years of practice, the SCO case represented “one of three most dramatic failures” of an intellectual property strategy. The bizarre case continues.

Related news, commentary, and predictions:

News: SCO to get $100M bailout; McBride out if deal goes through
News: Trial set to determine what SCO owes Novell
Analysis: SCO long, it's been bad to know ya

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Dreaded SCO Group is back, with money to go after Linux users