SCO Losing Linux Battle With IBM

July 5th, 2006:SCO’s long battle with the Linux World is approaching it’s final showdown.

The legal dispute between IBM and SCO over Linux took a new turn on Monday, July 3, 2006, when a Utah District Court threw out 182 claims SCO had against IBM. Another 112 claims remain in the $5 billion intellectual property rights case, with no comment yet from SCO on their next intended step.

Judge, Brook Wells, chastised SCO for its behaviour during the trial, saying its “wilful failure” to identify exactly which parts of the Linux software were stolen was prejudicial to IBM. He further added “SCO’s arguments are akin to SCO telling IBM 'Sorry we are not going to tell you what you did wrong because you already know'".

The dispute between the two companies arose after a 1998 venture, called Project Monterey, between IBM and SCO to develop a Unix port for the Intel 64-bit Itanium system fell apart in 2000. IBM then threw its support behind the development of Linux. Three years Later SCO Began legal proceedings against IBM, claiming IBM had stolen its Unix code to develop Linux.

Given the significant size of IBM’s contribution to the development of Linux any outcomes arising from the case have massive potential consequences. All Linux distributions could potentially be affected. Those companies who have invested in Linux and its development will be watching events closely.

Although there are still 112 claims SCO can pursue, as well as having the option to appeal this latest decision, its resources to fight this battle are running out. SOC’s cash funds are rumoured to be rapidly diminishing and its price on Wall Street fell significantly from US $4.00 to below $3.00 on the news of the ruling. With SCO yet to identify a single piece of code that IBM allegedly stole an SCO settlement, let alone victory, in the case is looking very unlikely.

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