Memorandum and Decision Order in SCO v. Novell, Civil Case No. 2:04CV139DAK, Dale A. Kimball, United States District Judge, U.S. Distrcit Court for the District of Utah, Central Division, August 10, 2007. (102 pages, PDF – via Groklaw]
BACKGROUND – “The SCO Group, Inc. (“SCO”) began this action in state court asserting a single cause of action against Novell, Inc. (“Novell”) for slander of title based on public statements Novell made claiming that it had retained the UNIX and UnixWare copyrights when it sold certain assets of its UNIX and UnixWare business to SCO’s predecessor in interest. After Novell removed the case to this court, the parties proceeded to add several claims and counterclaims to the action. SCO added claims for breach of the parties’ Asset Purchase Agreement and Technology License Agreement, specific performance, copyright infringement, and unfair competition. Novell added counterclaims against SCO for slander of title, breach of the Asset Purchase Agreement, declaratory relief regarding the parties’ rights and obligations under the Asset Purchase Agreement, restitution/unjust enrichment, and accounting.
CONCLUSION: …court concludes that Novell is the owner of the UNIX and UnixWare copyrights. Therefore, SCO’s First Claim for Relief for slander of title and Third Claim for Relief for specific performance are dismissed, as are the copyright ownership portions of SCO’s Fifth Claim for Relief for unfair competition and Second Claim for Relief for breach of the implied covenant of good faith and fair dealing. The court denies SCO’s cross-motion for summary judgment on its own slander of title, breach of contract, and unfair competition claims, and on Novell’s slander of title claim. Accordingly, Novell’s slander of title claim is still at issue.
The court also concludes that, to the extent that SCO has a copyright to enforce, SCO can simultaneously pursue both a copyright infringement claim and a breach of contract claim based on the non-compete restrictions in the license back of the Licensed Technology under APA and the TLA. The court further concludes that there has not been a change of control that released the non-compete restrictions of the license, and the non-compete restrictions of the license are not void under California law. Accordingly, Novell’s motion for summary judgment on SCO’s non-compete claim in its Second Claim for breach of contract and Fifth Claim for Relief for unfair competition is granted to the extent that SCO’s claims require ownership of the UNIX and UnixWare copyrights, and denied in all other regards.”
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