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CNET News: SCO Sues Big Blue over Unix, Linux

Mar 07, 2003, 05:01 (44 Talkback[s])
(Other stories by Stephen Shankland)

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"SCO Group, inheritor of the intellectual property for the Unix operating system, has sued IBM for more than $1 billion, alleging Big Blue misappropriated SCO's Unix technology and built it into Linux.

"The suit, filed Thursday afternoon in the 3rd District Court of Salt Lake County in Utah, alleges misappropriation of trade secrets, unfair competition, breach of contract and tortious interference with SCO's business, the Lindon, Utah-based company said. SCO also sent a letter Thursday demanding that if IBM doesn't meet various demands, SCO will revoke IBM's license to ship its version of Unix, called AIX, in 100 days.

"'We are alleging they have contaminated their Linux work with inappropriate knowledge from Unix,' said Chris Sontag, senior vice president of operating systems at SCO and head of the company's SCO source effort to make more money from its intellectual property.

"Analysts saw the move as a desperate one for SCO, a company that hasn't been profitable in its current incarnation..."

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