SCO pulls IBM's Unix licence

By Matt Whipp

Posted on 17 Jun 2003 at 12:12

SCO has filed an injunction against IBM, revoking its right to use or sell its AIX Unix-based operating system.

The injunction also contains an amendment that seeks damages with regard to revenues IBM earned from sales of AIX post the 100-day deadline that expired last Friday.

'IBM has chosen to continue the actions that violate our source code and distribution agreements,' said Darl McBride, President and CEO of The SCO Group. 'Over the last several months, SCO has taken all of the steps outlined in the Unix licensing agreements to protect its rights. Today SCO is requesting that the court enforce its rights with a permanent injunction. IBM no longer has the authority to sell or distribute AIX and customers no longer have the right to use AIX software.'

SCO wants IBM to return or destroy all instances of code from the Unix System V source-code and permanently stop its use and distribution of AIX-based products.

IBM has issued a public statement saying that SCO's actions were an attempt to create fear uncertainty and doubt among IBM customers and the open source community. It reassured its customers, insisting that its Unix licence is good. 'IBM will continue to ship, support and develop AIX, which represents years of IBM innovation, hundreds of millions of dollars of investment and many patents. As always, IBM will stand behind our products and our customers,' it reads.

'From the outset, IBM's position on this lawsuit has been unequivocal. IBM's Unix licence is irrevocable, perpetual and fully paid up. It cannot be terminated. IBM will defend itself vigorously. This matter will be resolved in the normal legal process.'

SCO's CEO McBride had said in an earlier interview given to CRN that he expected IBM to 'blacken the Utah skies' with lawyers.

SCO filed the suit against IBM in March alleging the company had misappropriated code within its Unix-based AIX operating system for servers into the Linux kernel, thereby breaking the terms of its licence to use Unix.

Until recently, SCO had been distributing the kernel in question in its own version of Linux, which it then withdrew. However, some analysts suspect that whatever the implications of IBM's actions, SCO had cooked its own goose when it came to Linux, having therefore distributed the code into the open-source community, relinquishing its rights to license it under the GNU GPL (general public licence) under which open source software, such as Linux, abides.

Even so, SCO sent letters to 1,500 global companies using Linux to warn them that they may be running the wrong side of the law by using the software.

Much of SCO's beef with IBM is in fact envy over the rising star of Linux.

Mark J. Heise, Boies Schiller, & Flexner, LLP, representing SCO, said: 'Through contributing AIX source code to Linux and using Unix methods to accelerate and improve Linux as a free operating system, with the resulting destruction of Unix, IBM has clearly demonstrated its misuse of Unix source code and has violated the terms of its contract with SCO. SCO has the right to terminate IBM's right to use and distribute AIX. Today AIX is an unauthorized derivative of the Unix System V operating system source code and its users are, as of this date, using AIX without a valid basis to do so.'

Many analysts think SCO knows it is late with its claims and believe the underlying reason for its very public actions is to pressurise the Linux vendors into buying the company. SCO has been one of the top performers on the NASDAQ recently and recorded record revenues and its first clear profit last quarter. However, Gartner said its assets are not be particularly attractive, notwithstanding its current rising market valuation.