SCO is a company that excels at buying software that it hasn't developed and
then suing those who have productively advanced the software. Linux is an
open source software that depends in large part on thousands if not millions
of volunteers to improve its software. SCO is little more than a parasite
feeding off others' work.
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SCO Seeks to Block Novell-SUSE Deal

SCO May Start Targeting BSD Unixes

By Steven J. Vaughan-Nichols

November 18, 2003

SCO is planning to block Novell's acquisition of SUSE Linux on the grounds
that it has a non-compete agreement with Novell dating back to its purchase
of Unix.

The SCO Group has announced it plans to take legal action to block Novell
Inc.'s proposed purchase of SUSE Linux AG. The company claims that it has
inherited a non-compete agreement, which was part of a broader agreement
signed between Novell and one of SCO's ancestors, The Santa Cruz Operation
Inc., when Novell sold Unix's intellectual property rights.

In addition, Lindon, Utah-based SCO announced that it will broaden its code
copyright fight beyond IBM. In a press release, SCO stated that it is now
including "copyrighted code included in the 1994 settlement between Unix
Systems Laboratories, Inc. and Berkeley Software Design, Inc. in the
expanded scope protection of and defense against unauthorized use and
exploitation of SCO's intellectual property. SCO acquired this code and
associated copyrights in 1995 from Novell."

This means that SCO is opening the gates to possibly take action against the
open-source organizations behind such BSD-based operating systems as
FreeBSD, NetBSD and OpenBSD. In addition, since Apple Computer Inc.'s Mac OS
X is based on BSD Unix, Apple too could be targeted.

Want the story behind SCO's struggle for control of the Linux market? Check
out eWEEK.com's special report, "The Battle Over Unix."

Novell denies SCO's claims. According to Kevan Barney, Novell's Linux senior
manager of public relations, "There is no non-compete provision in those
contracts, and the pending acquisition of SUSE Linux does not violate any
agreement between Novell and SCO." In any case, he said, "Novell has
received no formal communication from SCO and ... Novell will respond in due
course should SCO choose to formally pursue this issue."

SCO has also announced that it has agreed to pay Boies, Schiller & Flexner
LLP and other law firms representing the company $1 million in cash and will
issue 400,000 shares of its common stock. "As a result of the issuance of
this consideration, SCO anticipates recording a charge to earnings of
approximately $8,956,000 in its fourth quarter that ended October 31, 2003.
This $8,956,000 charge to earnings is comprised of non-cash expense of
$7,956,000 related to the issuance of the 400,000 shares of common stock and
$1,000,000 in cash expense," the company announced.

Looking at this newest turn of events, Dan Kusnetzky, vice president of
system software research for analyst company International Data Corp., said,
"These are more litigation bills that The SCO Group will have to pay for.
Maybe they can find some more investors."

http://www.eweek.com/article2/0,4149,1387528,00.asp