What is the truth about Sun and SCO?

Following Judge Kimball's declaration that the Unix System V copyrights belonged to Novell, Steven Vaughan-Nichols speculated about what the decision might mean for Sun, which updated its Unix license to System 5 Release 5 in February 2003.

Some Sun employees, including Patrick Finch, and Simon Phipps seem to have taken exception to the way the question was asked, with Phipps describing Vaughan Nichols as "running fast and loose with the truth in pursuit of an opportunity to smear Sun."

That comment would be forgivable if were obvious what the truth is. I asked Sun a week ago to comment on the implications (if any) of Judge Kimball's ruling for Sun, but the company hasn't been able to come up with a response, which suggests it's not a straightforward as Finch and Phipps would have us believe.