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E-Commerce Times: SCO's Brilliant Business Maneuver?

Oct 17, 2003, 19:00 (6 Talkback[s])
(Other stories by Robyn Weisman)

"To say the SCO Group has been making headlines frequently is an understatement. Since March, when the company filed suit against IBM for allegedly using SCO-owned Unix code in its Linux systems, SCO has gotten an unheard-of amount of press for a company that, according to its third-quarter results, posted only US$20.1 million in revenue.

"In the last 52 weeks, SCO stock has gone from trading for as little as 78 cents per share to more than $20 per share. Regardless of industry observers' opinion of SCO's grievances, the company's decision to battle IBM and the open-source community certainly has boosted it, at least in the short term.

"However, as IDC vice president Dan Kusnetzky told the E-Commerce Times, the legal costs SCO is incurring make its litigation business model (as IBM termed it in a recently filed countersuit) a risky one. Resolution could be years away, and there is no guarantee of an outcome that favors SCO..."

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