SCO Roars as Shares Soar

Shares in the SCO Group surged nearly 30 percent Thursday as the company stepped up its fight to defend its code.

Shares in the SCO Group surged nearly 30 percent on Thursday as the company continued to defend what it sees as the unauthorized and illegal use by customers, Linux users, vendors and the open source community of its Unix code.

SCOs shares leapt $1.92, or 29 percent, to $8.52 on Thursday as more than 1.12-million shares traded on the Nasdaq Exchange. A SCO spokesman could not be reached for comment on Thursday and had not returned eWeeks calls by the time this article was published.

A number of parties this week received a non disclosure agreement, or NDA, that SCO is insisting people sign before they are given access to examples of certain code which SCO feels clearly supports its view that parts of its Unix code have been given away to, and incorporated in, the current 2.4 Linux kernel and subsequent Linux distributions.

SCO has been strongly criticized for sending letters to 1,500 CEOs from the worlds leading companies warning them that Linux is an unauthorized derivative of Unix and that they could be legally liable without citing or providing any evidence of its claims.

As first reported by eWeek, SCO senior vice president Chris Sontag said in mid-May that SCO would be willing to show interested parties the code violations as long as they agreed to an NDA.

He also said that the amount of code shown would be restricted given the pending litigation with IBM.