In the current development version of Ubuntu (13.10 Saucy) the power
settings do offer a choice "When the lid is closed: Do nothing". So I'm
marking this as fixed. (The behavior is broken, but that's a different
issue; see bug #990908.)
** Changed in: gnome-power-manager (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/736606
Title:
"Do Nothing" option not available for lid closing in Power settings
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