Novell has made a move to try and lift the stay of litigation on SCO under their bankruptcy protection so that they can ensure the recovery of licensing revenue owed to Novell.

Lindon, Utah’s The SCO Group (NASDAQ: SCOX), September 16th, had filed for Chapter 11 bankruptcy, just one day before the start of a five-day lawsuit that would have decided how much of the possible $37 million SCO would have to pay to Novell for their SCOSource licensing agreements due to the original purchase agreement that made “old SCO” (The Santa Cruz Operation, long since bought by “new SCO”) the licensor for Unix. Novell now wants their stay lifted and a constructive trust set up to protect any fees and property they’re owed.

A Novell spokesperson said, “Absent SCO’s immediate remittance of the royalties to Novell, SCO may improperly use Novell’s property to fund SCO’s bankruptcy, making Novell a forced lender of new high-risk loans to the estate. This would turn Novell’s property into an involuntary gift to the estate and its creditors.”

More can be read here.

Further reading on SCO and the Linux wars can be found at Groklaw and Wikipedia and a few of my previous posts.