SCO V. IBM - Summary

Summary

On March 6, 2003, the SCO Group (formerly known as Caldera International and Caldera Systems) filed a $1 billion lawsuit in the US against IBM for allegedly “devaluing” its version of the UNIX operating system. SCO retained Boies Schiller & Flexner for this, and related subsequent litigation. The amount of alleged damages was later increased to $3 billion, and then $5 billion. SCO claimed that IBM had, without authorization, contributed SCO's intellectual property to the codebase of the open source, Unix-like Linux operating system. In May 2003 SCO Group sent letters to members of the Fortune 1000 and Global 500 companies warning them of the possibility of liability if they use Linux.

The claims and counter-claims made by both sides then escalated, with both IBM and Linux distributor Red Hat starting legal action against SCO, SCO threatening Linux users who do not take out SCO UNIX licenses, and SCO suing Novell (see also SCO-Linux controversies), AutoZone and DaimlerChrysler.

On September 30, 2003, Judge Kimball (the presiding federal district judge) granted the SCO Group's request for a delay until February 4, 2004, “to file any amended pleadings or add parties to this action”. The schedule was amended again on July 1, 2005. In December 2006 the trial date was vacated pending the resolution of SCO's litigation with Novell, all parties agreeing that SCO v. Novell would resolve issues relating to SCO v. IBM.

In an "Order Granting in Part IBM's Motion to Limit SCO's Claims" dated June 28, 2006, Judge Brooke Wells (the federal magistrate judge presiding over discovery aspects of the case) barred SCO from asserting 187 of the 298 allegedly misused items that IBM had moved to exclude from the lawsuit for lack of specificity, stating “many of SCO’s arguments and much of Mr. Rochkind’s declaration miss the mark”, and comparing SCO's tactics with those of an officer who accuses a citizen of theft, but will not disclose what the citizen is accused of stealing. “Certainly if an individual was stopped and accused of shoplifting after walking out of Neiman Marcus, they would expect to be eventually told what they allegedly stole. It would be absurd for an officer to tell the accused that ‘you know what you stole I'm not telling.’ Or, to simply hand the accused individual a catalog of Neiman Marcus' entire inventory and say ‘it's in there somewhere, you figure it out.’”

On August 10, 2007, Judge Kimball, who also presides over the SCO v. Novell case, ruled that Novell, not the SCO Group, is the rightful owner of the copyrights covering the Unix operating system. The court also ruled that "SCO is obligated to recognize Novell's waiver of SCO's claims against IBM and Sequent". After the ruling Novell announced they have no interest in suing people over Unix and stated "We don't believe there is Unix in Linux".

In an order entered on 21 September 2007, Judge Kimball administratively closed the case of SCO v. IBM due to SCO filing for bankruptcy on 14 September 2007. This means that all action in SCO v. IBM is stayed until SCO emerges from bankruptcy proceedings. If and when it does, the case SCO v. IBM will resume where it left off.

On August 24, 2009, the U.S. Court of Appeals for the Tenth Circuit reversed the portion of the August 10, 2007 district court summary judgment in SCO v. Novell, that Novell owned the copyright to Unix. As a result, SCO was permitted to pursue its claim of ownership of the Unix copyrights at trial.

On March 30, 2010 the jury returned a verdict in SCO v. Novell, finding that Novell owns the copyrights.