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SCO Files Notice of Cure Amounts Re Leases and Executory Contracts

By Pamela Jones et al.

There is a monster SCO filing in the bankruptcy, 531 pages, I'm told, a Notice of Cure Amounts in Connection with the Assumption and Assignment of Unexpired Leases and Executory Contracts [PDF] and then a 7-part exhibit. SCO proposes to transfer everything on this list to unXis "free and clear of all liens, claims, encumbrances and interests upon satisfaction of the cure amounts... except for Assumed Liabilities and Permitted Encumbrances".

It is to me one of the most fascinating document SCO has ever filed. It presents a picture of SCO's business that is very different from what they have presented to the courts. One fascinating thing is that it seems it was possible to get UNIX System V after 1995, despite SCO testimony at trial in SCO v. Novell that after that time period you could only get UNIX by licensing UnixWare.

Forget that you don't think this sales plan will ever happen. It's an opportunity to look at the innards of SCO's business. I went through every page, looking for what new customers, or any updating customers, licensed after 1995. I was curious to see whether UnixWare took off and UNIX drifted down or suddenly stopped after 1995. I had a theory that perhaps SCO didn't want to sell UNIX after that, so as to avoid paying Novell royalties. But what I found instead surprised me greatly.

What I see from these exhibits is that SCO's business slowed noticeably after 1994. I don't know why, but for sure it wasn't Linux. And I think this filing strongly indicates that IBM in no way killed SCO's business beginning in 2000 as SCO alleged in its complaint. It was already declining, judging from this list. Why would anyone want to buy this business, I asked myself? People seem to have lost interest in UNIX and UnixWare around that time period. There are some new customers after that, but it's nothing like the 80s and 90s up until 1995. Of course, by that I mean they lost interest in SCO's UNIX versions. We know UNIX continues to sell well, but I guess new customers mostly chose other vendors.

Full post as published by Groklaw on July 09, 2009 (boomark / email).