SCO V. IBM - IBM's AIX License

IBM's AIX License

Reuters reported that the SCO Group intended to revoke IBM's license to use UNIX code in their AIX operating system on Friday, June 13, 2003 if no resolution is reached before then. IBM responded that they believe that SCO has no power to do so, as their license is "irrevocable". On the following Monday, June 16, 2003, CNET News.com reported that SCO had announced it had terminated IBM's license. IBM continues to distribute and support AIX, and the SCO Group now states that they will be seeking an injunction to force IBM not only to stop selling and supporting AIX, but also to return to the SCO Group or destroy all copies of the AIX operating system. IBM's continued distribution of AIX is the basis of SCO's copyright claim.

On June 9, however, Novell privately conversed with SCO expressing their belief that SCO did not have rights to terminate the license. Three days later, Novell cited Section 4.16(b) of their Asset Purchase Agreement (APA) with SCO that gave Novell the ability to intercede in the dispute between SCO and IBM and waived SCO's rights to terminate the license.

On August 10, 2007, Judge Kimball ruled that Novell was the owner of UNIX and thus could waive SCO's termination of IBM's license.

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