'Nothing less than $3 b': SCO tells IBM

BANGALORE: The SCO Group, has announced that it has terminated IBM's right to use or distribute any software product that is a modification of or based on UNIX System V source code. Sources inside SCO, India confirm that the amended suit claims for more than triple the amount — at least $ 3 billion and more.

SCO has announced the termination of IBM's right to use and distribute AIX. The company now claims that it is exercising the right of termination granted under the original 1985 UNIX Software and Sublicensing Agreements between IBM and AT&T.

'The Software and Sublicensing Agreements and related agreements that SCO has with IBM includes clear provisions that deal with the protection of source code, derivative works and methods,' said Mark J. Heise, Boies Schiller, & Flexner, LLP. 'Through contributing AIX source code to Linux and using UNIX methods to accelerate and improve Linux as a free operating system, with the resulting destruction of UNIX, IBM has clearly demonstrated its misuse of UNIX source code and has violated the terms of its contract with SCO. SCO has the right to terminate IBM's right to use and distribute AIX. Today AIX is an unauthorized derivative of the UNIX System V operating system source code and its users are, as of this date, using AIX without a valid basis to do so.'

SCO is also today filing an amendment to the complaint against IBM 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 seeking additional damages from IBM's multi-billion dollar AIX-related businesses.

'IBM has chosen to continue the actions that violate our source code and distribution agreements,' said Darl McBride, President and CEO of The SCO Group. 'Over the last several months, SCO has taken all of the steps outlined in the UNIX licensing agreements to protect its rights. 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.'

According to agency reports, IBM immediately rejected SCO's attempt to block the world's largest computer company from working with Unix-based software, which is used to run corporate and government computer systems for serving up Web pages, accounting, manufacturing and storing information. 'As we have said all along our license is irrevocable, perpetual and cannot be terminated,' IBM spokeswoman Trink Guarino said, reading from a prepared statement.