Does Novell have the right to act on behalf of SCO and dismiss any claims against SVRx licensees?
No. Novell has attempted to interpret a single clause in the Purchase Agreement as freedom to do anything it wants in regards to the assets and copyrights it sold to SCO in 1995. Section 4.16 (b) contains language that gives Novell certain limited rights to protect its royalty stream in regards to the then existing UNIX SVRX licenses. Further clarification to this is found in Amendment No. 2 Section B (5) which states, This Amendment does not give Novell the right to increase any SVRX licenses rights to SVRX source code, nor does it give Novell the right to grant new SVRX source code licenses. In addition, Novell may not prevent SCO from exercising its rights with respect to SVRX source code in accordance with the Agreement. Novells recent actions to waive SCOs rights to enforce its license agreements are in clear violation of the Agreement and will be dealt with accordingly through the courts.
