Oracle and Novell File Reservations of Rights RE SCO’s Bankruptcy Sale Plan

“Oracle, as well as Novell, have both filed a Reservation of
Rights objecting to SCO’s Motion in bankruptcy court to sell off
all the assets, all but the litigation and whatever is on the list
of excluded assets. If you recall, Oracle made an appearance in
connection with an earlier SCO sales scheme, and now it says SCO
needs to tell it more detailed information about the new plan and
amend it, if any Oracle contracts are involved. “At this time,
Oracle does not consent to any proposed assignment or transfer of
use via the Sale Motion or otherwise, as proposed transfers must be
in compliance with the license terms,” Oracle tells the court. It
has copyrights and patents on this software, it points out. Not
that it needs to mention that this week. We are aware.

“…Oracle says the Sales Motion should be denied with respect
to any transfer of Oracle agreements, but going beyond, the
Bankruptcy Code sets out “specific prerequisites that must be met
before the trustee/debtor can assume and assign an executory
contract, including (a) curing (or providing adequate assurance of
a prompt cure of) an defaults under the subject contracts” and
providing assurance of future performance. Without those two
things, SCO can’t just hand the executory contracts over to
anybody, and Oracle reserves the right to be heard.”

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