It is also interesting that SCO has only just registered the copyrights for Unix System V and "suggests something about the degree of professionalism that lies behind these claims. Unregistered copyrights in the U.S. are accorded less opportunity for certain kinds of enforcement activity and damages, so registering copyrights is a good idea. But it is interesting that SCO had failed all this while to do it and casts an interesting reflection on the quality of management at SCO," Moglen said. In a summary of the matter so far, SCOs McBride said in a media teleconference earlier in the day that the matter had started as a contract issue with IBM, which has not been resolved and is now in litigation. But, in the process of moving down that path SCO examined with a "fine-tooth comb" what was going on inside of Linux as well as inside its own Unix code base.After first telling businesses that Linux was an unauthorized derivative of Unix and included proprietary Unix code, SCO then made the offending code available to them. After they saw the code, customers told SCO they wanted to continue to use Linux without having to rip out the implementation they currently have, McBride said. As such SCO is giving customers a license to run Linux, legally, on a run-only basis, which will bring business Linux users into compliance. "This allows both their, and our, concerns to be met, balancing the needs of the marketplace with our right to protect our valuable Unix-based IP. We look forward to getting out into the marketplace and resolving these issues," he said. SCO chief legal counsel Boies also told the media that SCO has made a lot of progress in identifying the specifics of the use of SCOs IP and copyright. What SCO had done was begin with the contract claim against IBM as it had evidence of this. Since then, by investigation, SCO had significantly developed its evidentiary base, he said.
"That has in fact generated this wide range of infringement problems that we are dealing with here today. We have now registered our copyrights to protect our Unix intellectual property. We have a very strong ownership position in Unix intellectual property and we now have the registered copyrights to go with that. SCOs Unix IP has been misappropriated into Linux and anyone who has doubts about that can view the source code under a non-disclosure agreement," he said.