SCO Yanks IBMs Unix License

By Peter Galli  |  Posted 2003-06-16 Print this article Print

The SCO Group, which is suing IBM for $1 billion, on Monday terminated Big Blue's right to use or distribute its Unix-based AIX operating system.

The SCO Group on Monday terminated Big Blues right to use or distribute its Unix-based AIX operating system. SCO, which is suing IBM for $1 billion, said it was going to file an amendment to the complaint against IBM with the U.S. States District Court of Utah, where the case is currently pending, for a permanent injunction requiring IBM to cease and desist all use and distribution of AIX and to destroy or return all copies of Unix System V source code.
In the amended complaint, SCO is also seeking additional damages from IBMs AIX-related businesses. These damages began accruing Friday, June 13th at midnight, the company said. Asked by eWEEK how much that would be, SCO spokesman Blake Stowell said they estimated IBM earned between $30 billion and $50 billion a year for services, software and hardware sold around its AIX business.
Stowell also confirmed that SCO has named Sequent Computer Systems in its amended complaint, alleging that Sequent contributed part of its Unix-derivative Dynix, specifically the non-uniform memory access (NUMA) technology, to Linux. As Sequent was acquired by IBM before the NUMA technology was released to the open-source community, Sequent and IBM are "one and the same for the purposes of our lawsuit. We have code to justify this claim," he said. In 1999 IBM and Sequent announced a merger agreement under which IBM would sell Sequents product line worldwide and integrate Sequent technologies into IBM products. Sequent would then become a wholly-owned subsidiary of IBM, they said at that time. If the permanent injunction SCO is seeking is granted and allowed to stand, it means that IBM will not be able to sell AIX and those companies already using AIX will have no rights to do so anymore. IBM is expected to challenge any the injunction in court. Spokeswoman Trink Guarino told eWeek that there is nothing new in the press release SCO issued on Monday.

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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