Judge Lifts Stay, SCO Group Royalties Suit Proceeds

Law360 (November 28, 2007, 12:00 AM EST) -- A bankruptcy judge has agreed to lift the automatic stay protecting bankrupt technology company SCO Group Inc., allowing a stalled royalties dispute with rival Novell Inc. to proceed to trial.

On Tuesday, Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware granted Novell’s motion to lift the stay, finding that barring continuation of the case in the U.S. District Court for the District of Utah would hurt Novell, but allowing it to move forward would not prejudice SCO.

“SCO has separate litigation...
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