UNIX originated at Bell Labs in 1969. It evolved with many versions being provided by various companies, universities, and individuals, becoming the first open operating system that could be amended or improved by anyone.
The operating system is widely used in workstations. Linux is a UNIX derivative that was designed to give PC users a free or very low-cost operating system comparable to the more expensive UNIX systems, although its use in the business environment is growing.
There are intellectual property rights in UNIX – and SCO purchased significant parts of them in 1995, including source code, source documentation, software development contracts, licenses and other intellectual property that pertained to UNIX-related business, including IBM as a UNIX distributor.
IBM originally entered into a UNIX license agreement with AT&T in February 1985 in order to produce the AIX operating system. SCO subsequently acquired its rights in UNIX. The agreements required that IBM hold the UNIX software code in confidence, and prohibited unauthorised distribution or transfer.
But SCO alleges that IBM gave the rights away to Linux – albeit SCO itself sells Linux as one of its main products.
IBM categorically denies any wrongdoing. In reference to Caldera, a Linux company with which SCO merged, the filing states: "Contrary to Caldera's unsupported assertions, IBM has not misappropriated any trade secrets; it has not engaged in unfair competition; it has not interfered with Caldera's contracts; and it has not breached contractual obligations to Caldera."
However, SCO says it has uncovered new evidence since lodging the complaint.
In an interview with CNetNews.com, SCO Group CEO Darl McBride announced that the company is finding cases "where there is line-by-line code in the Linux kernel that is matching up to our UnixWare code.” He added, "We're finding code that looks likes it's been obfuscated to make it look like it wasn't UnixWare code – but it was."
SCO will not reveal the exact code copied until the action reaches court, but the accusation will worry the open source industry, which is dependant on trust among participants to work effectively. Furthermore, SCO has not ruled out taking copyright action against sellers of the product if it wins the IBM action.
Joe Eckert, spokesman for SuSE, a Linux retailer, told CNet News.com on Friday, "We have a joint development agreement with [SCO], which includes appropriate cross-licensing arrangements.” He went on, "Our lawyers feel that covers us from any actions that SCO may take.”