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SCO files first suits against enterprise Linux users

SCO files first suits against enterprise Linux users

The SCO Group has filed its first lawsuits against enterprise Linux users, targeting automaker, DaimlerChrysler AG, and auto parts retailer, AutoZone, in the US.

SCO filed suit alleging that DaimlerChrysler violated its software licensing agreement with SCO by refusing to provide a requested "certification of compliance" as part of a software audit.

The suit asks the court to permanently bar the automaker from further violations of the software agreement and seeks an injunction requiring it to "remedy the effects of its past violations" of the agreement. It seeks undetermined damages.

SCO has also announced its suit against AutoZone alleges the retailer violated SCO's Unix copyrights through its use of Linux. That suit charges that AutoZone is "running versions of the Linux operating system that contain code, structure, sequence and/or organization from SCO's proprietary Unix System V code in violation of SCO's copyrights".

With this lawsuit, SCO is kicking off what it said late last year will be an offensive against companies using Linux in their businesses. SCO sued IBM last March in a suit that now seeks at least $5 billion in damages, alleging IBM illegally contributed some of SCO's System V Unix code to the Linux open-source project. IBM has counter-sued.

AutoZone is an IBM customer, using IBM's content management and DB2 database applications, and a former Red Hat Linux customer, having used Red Hat Linux for its in-store intranet system.

SCO chose yesterday - when both it and AutoZone announced their quarterly financial results - to file its lawsuit.

For the first quarter of the fiscal year 2004, SCO posted revenue of $US11.4 million, compared to $US13.5 million one year ago. SCO reported a net loss to common stockholders of $US2.25 million, or 16 cents per diluted common share, compared to a net loss to common stockholders of $US724,000, or $US0.06 per diluted common share, for the same quarter last year.


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