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CNET News: SCO Warns of IBM Lawsuit Risks

By Stephen Shankland

“SCO Group warned in a regulatory filing that its billion-dollar
lawsuit alleging that IBM misappropriated trade secrets will be
costly and could alienate others in the computing industry.

“‘Unintended consequences of our lawsuit against IBM may
adversely affect our business,’ the Lindon, Utah-based seller of
Unix and Linux products warned last week in a regulatory filing
that permits two major shareholders to sell all their stock. The
shareholders received the stock in 2002 in connection with SCO’s
efforts to get financial help, including the possibility of finding
a buyer…

“The filing warns of several possible ways the suit could hurt
SCO: Legal fees likely will ‘increase substantially’ and revenue
from joint ventures with IBM and Big Blue’s
partners could decrease. In addition, SCO warns that IBM could
influence customers to shun SCO products…”

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