US software company The SCO Group has held discussions with Google over a possible licence agreement, according to Reuters. The "low-level" talks relate to a licence for SCO's UNIX software that SCO alleges has been illegally copied into the Linux operating system.

Commentators are suggesting that Google may be SCO's new target for copyright infringement action, following a $3 billion lawsuit filed by the software company against IBM in March last year.

SCO accuses IBM of infringing its rights in the UNIX operating system by leaking UNIX code in breach of a contract. SCO says that Linux contains its UNIX code and consequently is an unauthorised derivative of UNIX. SCO is also demanding that commercial Linux users buy its licences, although it backed down from a threat to send invoices to users.

In December SCO sent written notices to its existing UNIX licensees – 6,000 in all – requesting confirmation that they are not in breach of their licence agreements, and have not used the UNIX code in Linux. Chris Sontag, senior VP of SCO, told IDG News Service that the purpose was to "formally communicate to UNIX source code licensees and certain commercial Linux end users that they must utilise SCO intellectual property within the bounds of their existing legal agreements and the Digital Millennium Copyright Act".

Last Friday, ZDNet News Australia reported that SCO was getting ready to launch a similar licensing programme in Australia and New Zealand – most likely before the end of March.

The court will consider the case again on 23rd January.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.