SCO is the company suing Linux vendors (such as IBM) for patent infringement. According to this CNet article, SCO lost a lawsuit to Novell a month ago, and another trial "was scheduled to begin Monday to determine how much SCO owed Novell as a result of last month's ruling, according to Groklaw ..."
IBM appears to not have made any comment today. This September 4th article by CBR Online (after the Novell ruling last month but before today's bankruptcy filing) gives lots of details on (reportedly) IBM's stance and its own evaluation of SCO's status. It concludes "... as far as SCO's core claims against Linux are concerned, the game appears to be over."
For details, see:
- The SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial and Legal Challenges (SCO press release)
- Novell's Trial Brief (Groklaw)
- SCO Group files for bankruptcy protection (CNet)
- SCO files for Chapter 11 bankruptcy protection (ComputerWorld)
- SCO seeks bankruptcy protection (InfoWorld)
- SCO files for bankruptcy (ZDNet blog)
- SCO’s New Theme Song: “Running on Empty” (Information Week blog)
- ZDNet blog posts on SCO Group Inc. (ZDNet)
Disclaimer: Although I work for IBM, I don't know anything about this news except what I've read in the sources I've cited.