A court in Nevada has ruled against SCO in its long-running battle with Novell and IBM over the rights to areas of the UNIX operating system.
A jury in the US District Court for the District of Nevada rejected SCO's claim to own certain key copyrights on the UNIX operating system.
SCO still has an outstanding case against IBM on similar grounds but this now looks unlikely to succeed.
"This decision is good news for Novell, for Linux and for the open source community," said Ron Hovsepian, president of Novell.
"We have long contended that this effort against Linux has no foundation, and we are pleased that the jury, in a unanimous decision, agrees. I am proud of Novell's role in protecting the best interests of Linux and the open source community."
The jury took three days to reach its verdict and decide for Novell. SCO had no comment at time of going to press, but its attorney has reportedly said that the company will appeal.
SCO's endless legal fight has driven the once successful firm into bankruptcy and forced out its former chief executive. Despite receiving more funds recently the future now appears bleak for the company.
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