SCO® Announces Immediate Termination of IBM's Right to Use and Distribute AIX
Software and Files for Permanent Injunction
SCO Terminates IBM's Right to Use or Distribute AIX Software, and Files Amended
Complaint Against IBM, Including a Permanent Injunction Against IBM For Destruction
or Return of All Copies of UNIX® System V Source Code And Permanent Cessation of
AIX Distribution
LINDON, Utah, Jun 16, 2003 -- The SCO® Group (SCO)(Nasdaq: SCOX), a leading provider
of business software solutions, today announced that it has terminated IBM's right
to use or distribute any software product that is a modification of or based on
UNIX® System V source code. In terminating IBM's right to use and distribute AIX,
SCO is exercising the right of termination granted under the original 1985 UNIX
Software and Sublicensing Agreements between IBM and AT&T.; SCO notified IBM on
March 6, 2003 that it intended to terminate in 100 days, as required under the Software
Agreement, as modified by a side letter, if IBM did not correct certain actions
that violate the agreement. As of the deadline -- 12:00 midnight, June 13, 2003
-- IBM had not complied with SCO's request, which triggered the termination. The
termination is self-effectuating.
"The Software and Sublicensing Agreements
and related agreements that SCO has with IBM includes clear provisions that deal
with the protection of source code, derivative works and methods," said Mark J.
Heise, Boies Schiller, & Flexner, LLP. "Through contributing AIX source code to
Linux and using UNIX methods to accelerate and improve Linux as a free operating
system, with the resulting destruction of UNIX, IBM has clearly demonstrated its
misuse of UNIX source code and has violated the terms of its contract with SCO.
SCO has the right to terminate IBM's right to use and distribute AIX. Today AIX
is an unauthorized derivative of the UNIX System V operating system source code
and its users are, as of this date, using AIX without a valid basis to do so."
SCO is also today filing an amendment to the complaint against IBM for a
permanent injunction requiring IBM to cease and desist all use and distribution
of AIX and to destroy or return all copies of UNIX System V source code. In the
amended complaint, SCO is seeking additional damages from IBM's multi-billion dollar
AIX-related businesses that began accruing Friday, June 13th at midnight. This amended
complaint was filed today with the United States District Court of Utah where SCO's
court case against IBM is currently pending.
"IBM has chosen to continue
the actions that violate our source code and distribution agreements," said Darl
McBride, President and CEO of The SCO Group. "Over the last several months, SCO
has taken all of the steps outlined in the UNIX licensing agreements to protect
its rights. Today SCO is requesting that the court enforce its rights with a permanent
injunction. IBM no longer has the authority to sell or distribute AIX and customers
no longer have the right to use AIX software."
About SCO
The SCO
Group (Nasdaq: SCOX) helps millions of customers in more than 82 countries to grow
their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network
of more than 11,000 resellers and 8,000 developers. SCO Global Services provides
reliable localized support and services to partners and customers. For more information
on SCO products and services, visit http://www.sco.com .
SCO, and the associated
SCO logo are trademarks or registered trademarks of The SCO Group, Inc. in the U.S.
and other countries. UNIX is a registered trademark of The Open Group. All other
brand or product names are or may be trademarks of, and are used to identify products
or services of, their respective owners.