Linux beats SCO

Just like one of those stories in which the good guys finally triumph over the bad guys, we now see this:

The SCO Group, Inc. ("SCO") (Nasdaq: SCOX - News), a leading provider of UNIX® software technology and mobile services, 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.

Let me offer a brief explanation. Way back in 2003, the tech company SCO made a public announcement that said that Linux was based upon Unix (which it sort of is) and, since SCO held the copyright for Unix, large portions of Linux software code was actually owned by SCO. The upshot of which was the danger that Linux was actually not free, and people who used it were actually violating copyright. Linux programmers responded by saying "show us the code and we will change it". SCO said that it couldn't do that since to reveal the code would be tantamount to revealing trade secrets. Duh. SCO went to court against IBM and a number of other software companies and the case has been bogged down since then. Recently the judge in the case ruled that SCO didn't own the copyright. Since then SCO's share price plunged about 70% and is now seeking chapter 11 bankrupt protection. Read the details of the sordid case here.