The SCO® Group Announces Final Termination of IBM / Sequent's Contract to Use or License Dynix Software
IBM's Disregard of Sequent's Contract With SCO Leads to Final Termination of UNIX License
LINDON, Utah, Aug 13, 2003 -- The SCO® Group (SCO)(Nasdaq: SCOX) delivered final
written notice yesterday to Sequent Computer Systems for termination of its UNIX®
System V software contract. Sequent is now owned by IBM. The Sequent (IBM) contract
was terminated for improper transfer of Sequent's UNIX source code and development
methods into Linux. As a result, IBM no longer has the right to use or license the
Sequent UNIX product known as "Dynix/ptx." Customers may not acquire a license in
Dynix/ptx from today's date forward.
SCO's System V UNIX contract allowed
Sequent to prepare derivative works and modifications of System V software "provided
the resulting materials were treated as part of the Original [System V] Software."
Restrictions on use of the Original System V Software include the requirement of
confidentiality, a prohibition against transfer of ownership, and a restriction
against use for the benefit of third parties. Sequent-IBM has nevertheless contributed
approximately 148 files of direct Sequent UNIX code to the Linux 2.4 and 2.5 kernels,
containing 168,276 lines of code. This Sequent code is critical NUMA and RCU multi-processor
code previously lacking in Linux. Sequent-IBM has also contributed significant UNIX-based
development methods to Linux in addition to the direct lines of code specified above.
Through these Linux contributions, Sequent-IBM failed to treat Dynix as part of
the original System V software, and exceeded the scope of permitted use under its
UNIX System V contract with SCO.
SCO gave Sequent-IBM two months written
notice prior to termination, as required by contract. IBM failed to cure its breach
of the Sequent-IBM contract, or to offer any solution whatsoever to cure its breach.
SCO's termination of the Sequent-IBM UNIX System V license is self-effectuating
and does not require court approval. SCO previously terminated IBM's right to use
or license IBM's UNIX product known as AIX. From and after June 16, 2003, customers
no longer have the legal right to acquire new AIX licenses.