Item 8.01 Other Events.
On August 24, 2009, the United States Court of Appeals for the Tenth Circuit (the "Tenth Circuit Court") issued its published opinion in the case of The SCO Group, Inc. v. Novell, Inc. (No. 08-4217). In the opinion, the Tenth Circuit Court reversed in material respects the summary judgment of August 10, 2007, rendered by the United States District Court of Utah, (the "District Court") and the Final Judgment entered on November 20, 2008. In its opinion, the Tenth Circuit Court reversed the summary judgment that Novell did not transfer certain UNIX copyrights to the Santa Cruz Operations as part of an Asset Purchase Agreement executed in 1995, as amended, and it also reversed the summary judgment that Novell had the right, under that Asset Purchase Agreement, to waive on behalf of SCO, or to direct SCO to waive, certain claims it had asserted against International Business Machines.
The Tenth Circuit Court affirmed the District Court's judgement with regards to the royalties due Novell under the 2003 Sun-SCO Agreement of $2,547,817 plus interest. The Court remanded the case back to the District Court for trial. The Tenth Circuit Court's conclusion is as follows: "For the foregoing reasons, we AFFIRM the district court's judgment with regards to the royalties due Novell under the 2003 Sun-SCO Agreement, but REVERSE the district court's entry of summary judgment on (1) the ownership of the UNIX and UnixWare copyrights;
(2) SCO's claim seeking specific performance; (3) the scope of Novell's rights under Section 4.16 of the APA; (4) the application of the covenant of good faith and fair dealing to Novell's rights under Section 4.16 of the APA. On these issues, we REMAND for trial." The Court's opinion can be reviewed at http://www.ca10.uscourts.gov/ and www.sco.com.

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