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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)

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"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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