IBM files counterclaims against SCO in Linux case
biz.yahoo.com
SEATTLE, Sept 26 (Reuters) - SCO Group Inc. <SCOX.O> damaged International Business Machines Corp.'s <IBM.N> business with its lawsuit over the rights to the Linux operating system, the world's largest computer company said in court documents obtained by Reuters on Friday.
IBM, which is being sued by Lindon, Utah-based SCO for embedding parts of SCO's Unix software code in versions of the free Linux operating system, filed counterclaims on Thursday that SCO has "misused and is misusing, its purported rights to the Unix operating system," a widely-used software platform for networked computers.
Linux, a variant of Unix which can be copied and modified freely, emerged a decade ago and is being used to run the Internet, handle financial transactions and even manage the U.S. nuclear arsenal.
SCO, which came to own the rights to Unix, sued IBM in March for billions of dollars and has threatened companies that they must pay to use Linux or face litigation.
"Since day one, the IBM strategy in the SCO lawsuit has been to defend against SCO's unfounded claims vigorously in court," IBM said in an internal memo to its sales force obtained by Reuters.
Armonk, New York-based IBM made several counterclaims, including an allegation that SCO itself contributed IBM's copyrighted software code into Linux.
"SCO has published false statements in a series of widely-distributed press releases, press interviews and other streams of commerce, as part of its bad faith campaign to discredit IBM's products and services in the marketplace," IBM said in its counterclaim, "As a direct result of SCO's false representations ... IBM has suffered damages in an amount to be determined at trial."
IBM also said in its counterclaim that SCO tried to devalue IBM's version of Unix called AIX, interfered with its customers, used "unfair deceptive trade practices" and breached a public license that allows Linux to be copied and modified freely.
Representatives from SCO did not immediately comment on IBM's counterclaims.
IBM also took issue with a recent move by Hewlett-Packard Co. <HPQ.N> to indemnify its customers who use the Linux operating system against potential legal troubles from the SCO-IBM spat.
"IBM and most other industry leaders do not indemnify for open source code," IBM managers wrote in an internal memo, "The typical approach to indemnity, and apparently HP's approach as outlined in the press, we believe runs fundamentally counter to the Linux value proposition."
IBM said in the memo that the Linux business is a bright spot "amid stagnant technology spending ... with sales of servers using the freely available software rising 63 percent to $2 billion in 2002 from 2001."
09/26/03 14:32 ET
Copyright 2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. |
