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Novell: SCO May Settle Unix Suit

October 23, 2009
by Tiernan Ray
Blogger, Barron's, Tech Trader Daily

Tiernan Ray

Beleaguered software vendor Novell (NOVL), which has been fighting a lawsuit by bankrupt SCO Group for the last several years, could see a silver lining, writes Ladenburg Thalmann analyst Aaron Schwartz in a note this morning. He says SCO may settle with Novell in its claim of infringement of intellectual property SCO holds with respect to the Unix operating system, rather than proceed to a jury trial against Novell.

Schwartz notes that the incoming court-appointed bankruptcy trustee for SCO Group fired Darl McBride, the CEO, on Monday. McBride had made himself a vilain in the world of Linux and open source software by suing numerous parties reselling or distributing the Linux operating system, including IBM (IBM), but also Daimler (DAI), claiming Linux infringes on Unix operating system rights that SCO acquired several years back.

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