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SCO Files For Chapter 11 Bankruptcy

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Legal

SCO Group Inc., the embattled software company best known for litigation targeting distributors of open-source, Linux software, said Friday it has filed for bankruptcy.

SCO which provides Unix-based software to run server computers, said in a prepared release that its board of directors has "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." SCO recently suffered a major setback in its litigation with Novell Inc., when a judge determined in August that SCO does not own rights to Unix software. SCO in 2003 had filed another, high-profile lawsuit against IBM for allegedly distributing parts of what it had thought to be its Unix property in freely-available Linux software code, creating concern among other Linux distributors that they, too, may be sued.

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