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eWeek: Novell Douses 'Smoking Gun' Against SCO

May 30, 2003, 14:30 (22 Talkback[s])
(Other stories by Peter Galli)

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"Some members of the open-source community thought they had found a 'smoking gun' against the SCO Group and its claims to ownership of the intellectual property rights to the Unix operating system, but Novell Inc. on Thursday poured cold water on that.

"Buried in SCO's 10-K filing with the Securities and Exchange Commission for the fiscal year ended October 31, 2002, under the section titled 'Restricted Cash and Royalty Payable to Novell, Inc.,' SCO says that it has an arrangement with Novell in which it acts as an administrative agent in the collection of royalties for customers who deploy SVRx technology.

"Under that agency agreement, SCO collects all customer payments and remits 95 percent of the collected funds to Novell and retains 5 percent as an administrative fee. SCO records the 5 percent administrative fee as revenue in its consolidated statements of operations..."

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Related Story: A Couple of SCO Amusements(May 30, 2003)