SCO suspends Linux sales

The SCO Group, owner of the Unix operating system, warned that Linux is an
unauthorized derivative of Unix and that legal liability for the use of Linux
may extend to commercial users. It issued this alert based on its findings of
illegal inclusions of Unix’s intellectual property in Linux. The company also
indicated that until the attendant risks with Linux are better understood and
properly resolved, it will suspend all future sales of the Linux OS.

"SCO is taking this important step because there are intellectual
property issues with Linux," says Chris Sontag, Sr VP and GM of SCOsource,
The SCO Group. "When SCO’s own UNIX software code is being illegally
copied into Linux, we believe we have an obligation to educate commercial users
of the potential liability that could rest with them for using such software to
run their business. We feel so strongly about this issue that we are suspending
sales and distribution of SCO Linux until these issues are resolved."

SCO will continue to support existing SCO Linux and Caldera OpenLinux
customers and hold them harmless from any SCO intellectual property issues
regarding SCO Linux and Caldera OpenLinux products.

"SCO remains committed to servicing our customers and as such, we intend
to continue our growth strategy around SCOx – the Web services framework for
SMB and branch offices," says Darl McBride, President and CEO, The SCO
Group.

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