SCO Group Inc., a Lindon technology licensing company in bankruptcy protection, has begun laying off employees to reduce costs, according to a filing with the Securities and Exchange Commission.

The company began layoffs Jan. 31. The filing states the company will eliminate about 30 positions, or 26 percent of its total work force.

The stock, worth less than 1 dollar a share, was delisted from the Nasdaq in December. According to the company's annual report, there were more than 21 million outstanding shares of common stock as of Jan. 25.

The company has the ownership rights in Unix operating system technology and provides Unix-based products and services to small-to-medium sized businesses and franchisees or branch offices of Fortune 1000 businesses.

The company purchased those rights from Novell Inc. for $145 million in 1995 but has been embroiled in a lawsuit with the company over whether SCO can demand billions of dollars in royalties from IBM because it uses Linux, a free operating system with a similar operating code to Unix. Novell sells versions of Linux.

On Aug. 10, a federal judge overseeing the suit with Novell ruled in favor of Novell on several summary judgement motions, which reduced SBO's claims in the lawsuit with Novell and forced the company to remit proceeds of its services to Novell, "in excess of $30 million," according to the annual report. SCO filed for bankruptcy on Sept. 14.