Unix-Linux ImbroglioUnix-Linux Imbroglio

Who said gloves-off competition in the software industry was dead? In the latest twist in a Unix-Linux brouhaha that involves the SCO Group, Microsoft, IBM, and Linux users, Novell CEO Jack Messman last week threatened action against SCO for disrupting the Linux market. Two weeks after the SCO Group sent letters warning 1,350 Linux-using companies that they may be infringing on SCO's Unix intellectual-property rights--and a week after Microsoft agreed to license SCO's Unix source code--Novell refuted the SCO Group's claim that it owns Unix copyrights and patents. Novell says it sold the original SCO only the commercial rights to Unix in 1995. In March, the new SCO Group sued IBM for $1 billion, charging it breached SCO Group's Unix rights.

Sales of Unix licenses contributed $8.8 million in cash during SCO's second quarter. SCO turned a $4.5 million profit on revenue of $21.4 million. In response to Novell, SCO said it has a contractual right to stop Unix licensees from releasing that code in Linux products. It will start showing the Linux source code in question to customers, press, and analysts this week.