SCO Turns Its Attention to SGI
| Silicon Graphics Inc says that it has received notice from SCO Group Inc that the Unix vendor intends to terminate its Unix System V license on the basis that SGI has breached the terms of the license. |
The move by Lindon, Utah-based SCO is the latest twist in its long-running claims
that code from its Unix System V has been copied into the Linux operating system.
The company has also terminated the Unix licenses of IBM Corp, sued IBM for $3bn
for breach of contract and misappropriation of trade secrets, and maintained that
Linux users need to license its Unix intellectual property to avoid potential
litigation.
SCO's notice to terminate SGI's Unix license was revealed in Mountain View, California-based
SGI's annual 10-K filing. "We recently received a notice from SCO Group stating
its intention to terminate our fully paid license to certain Unix-related code,
under which we distribute our Irix operating system, on the basis that we have
breached the terms of such license," said the company.
"We believe that the SCO Group's allegations are without merit and that our fully
paid license is non-terminable. Nonetheless, there can be no assurance that this
dispute with SCO Group will not escalate into litigation, which could have a material
adverse effect on SGI, or that SCO Group's intellectual property claims will not
impair the market acceptance of the Linux operating system."
Read full article at - cbronline.com
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