SCO V. Novell - Background

Background

Novell, a vendor of proprietary network operating systems, acquired the rights to the original Unix source code when it purchased Unix System Laboratories from Unix's creator, AT&T Corporation, on June 14, 1993. Novell's rights to parts of the Unix source code were established as part of the settlement in USL v. BSDi.

On September 19, 1995, Novell entered into an Asset Purchase Agreement (APA) with the Santa Cruz Operation ("Santa Cruz"), a Unix vendor. The APA transferred certain rights regarding Unix, and Novell's UnixWare version of Unix, from Novell to Santa Cruz. These rights included the right to develop and market new versions of UnixWare, and the right to license SVRX (System V Release X) UNIX incidentally or with Novell's permission. It also required Santa Cruz to act as Novell's agent for the collection for certain royalties due under such licenses.

In 2000, Caldera Systems acquired the Server Software and Services divisions of Santa Cruz, as well as the UnixWare and OpenServer Unix technologies. Caldera Systems thus became the legal successor to Santa Cruz for the purposes of the APA. A year later Caldera Systems changed its name to Caldera International in 2001 and to The SCO Group (SCO) in 2002. Although the Santa Cruz Operation was colloquially known as "SCO," legally The SCO Group is a different company from the Santa Cruz Operation.

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