PR: Novell Statement on SCO Claims Regarding a Non-Compete
Clause in Novell-SCO Contracts
Novell has seen the November 18 InfoWorld article in which SCO
CEO Darl McBride refers to a supposed non-compete agreement between
Novell and SCO. Mr. McBride’s characterization of the agreements
between Novell and SCO is inaccurate. There is no non-compete
provision in those contracts, and the pending acquisition of SUSE
LINUX does not violate any agreement between Novell and SCO.
Novell has received no formal communication from SCO on this
particular issue. Novell understands its rights under the contracts
very well, and will respond in due course should SCO choose to
formally pursue this issue.
Groklaw: Asset Purchase Agreement
“Here is the Asset Purchase Agreement between SCO and Novell. It
has particular importance now that SCO is claiming a non-compete
clause it says it will enforce if Novell tries to release a Linux
distribution. They appear to be referring to clause 1.6. However,
as you will see, the interpretation they are giving that clause
appears to be dependent on Linux actually containing SCO’s code,
something that is yet to be proven and which many feel is unlikely
ever to be proven.“Here is the language I think they are referring to:
“‘Seller agrees that it shall use the Licensed Technology only
(i) for internal purposes without restriction or (ii) for resale in
bundled or integrated products sold by Seller which are not
directly competitive with the core products of Buyer and in which
the Licensed Technology does not constitute a primary portion of
the value of the total bundled or integrated product…'”