The two companies have been at odds since SCO filed a lawsuit in early 2003 over IBM's alleged misuse of UNIX intellectual property (IP) to advance its Linux business (see "SCO Sues IBM Over UNIX Intellectual Property Rights" at http://Advisor.com/doc/12121). The open-source Linux operating system is derived -- too closely, SCO says -- from UNIX.

The June 13, 2003, deadline SCO set for IBM to stop selling AIX products and pay SCO damages costs has passed, and SCO has filed a permanent injunction requesting that IBM "desist all use and distribution of AIX and to destroy or return all copies of UNIX System V source code."

SCO says it's also seeking additional damages from IBM's AIX businesses that began accruing Friday, June 13, 2003, at midnight.

"Over the last several months, SCO has taken all of the steps outlined in the UNIX licensing agreements to protect its [intellectual property] rights," says Darl McBride, SCO's president and CEO. "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."

IBM responded with the following statement: "From the outset, IBM's position on this lawsuit has been unequivocal. IBM's UNIX license 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."

IBM says it will continue to ship, support, and develop AIX.

On the IP warpath

SCO recently created a business unit dedicated to boosting revenue from its IP, and fending off slow software sales. In March 2003, SCO filed a lawsuit against IBM and gave it until June to pay no less than US$1 billion for damages caused by inappropriate sue of that property. SCO has also warned other corporate Linux users that they could be liable if they don't pay licensing fees. Many view the fight with IBM as a litmus test of the strength of SCO's claim against those other companies.

Perhaps adding validity to SCO's claim, Microsoft has paid SCO fees for its limited use of UNIX technology (see http://Advisor.com/doc/12477). The company's Windows software competes with Linux for share of the server and desktop OS markets, and it could benefit from penalties imposed on Linux vendors.

Novell, which sold the UNIX IP rights to SCO in 1995, has challenged SCO's claim to the copyrights and patents for UNIX. It says the purchase agreement Novell and SCO entered into in 1995 didn't transfer those rights to SCO. See http://Advisor.com/doc/12514 for more.